    [Public Papers of the Presidents of the United States: William J. Clinton (1995, Book I)]
    [January 7, 1995]
    [Pages 21-23]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    January 7, 1995

        Good morning. Now that the holidays are over, it's back to business
    around the country and back to the people's business here in Washington.
        I'm looking forward to working with the new Congress. If they'll put
    politics as usual aside and put the American people and our future
    first, we've got a great opportunity to make progress on our mission:
    restoring the American dream of opportunity to all Americans and making
    sure we enter the next century, now just 5 years away, still the
    strongest and greatest nation in the world.
        Earlier this week, I met at the White House with Republican and
    Democratic congressional leaders. I challenged them to work with me and
    with each other, and they assured me that they are willing to cooperate.
        Many of the toughest decisions we made in the last 2 years are
    paying off for us now. We've reduced the deficit by $700 billion; that's
    $11,000 in less debt for every family in America. We've cut the Federal
    Government, eliminating over 100 programs, and there are already 100,000
    fewer people working for the Federal Government than when I took office.
        We've taken the savings and invested in the American people, in
    their education and training by expanding Head Start and apprenticeship
    programs and making college loans more affordable to 20 million people,
    providing the opportunity for national service to thousands of others.
        Just yesterday, we saw new evidence that this economic strategy that
    has been pursued with such discipline over the last 2 years is still
    working. Unemployment is now down to 5.4 percent

    [[Page 22]]

    from over 7 percent when I took office; 5.6 million new jobs have been
    created in the almost 2 years since I became President. Nineteen ninety-
    four was the best year for job growth in a decade, and the vast majority
    of these new jobs are in the private sector. This was the first year
    that manufacturing jobs increased in every month since 1978. These new
    jobs are a testament to what can be accomplished when we combine the
    phenomenal ability and productivity of American businesses and workers
    with responsible and visionary political leadership willing to make
    tough choices. I will work with the new Congress to keep this recovery
    going. I will not go back to the failed policies of the past, which may
    have short-term attraction but will undermine our economic future.
        We've still got a lot more to do, things that we must do in the
    months ahead, because for all the good statistics and all the
    legislative accomplishments of the last 2 years, the average American
    simply is not receiving enough benefit from this recovery. And
    Republicans and Democrats have to work together to change that.
        Here's the problem: For about 20 years, the incomes of Americans
    without college educations have been stagnant. They've been working
    harder for the same or less income. Their benefits are less secure. What
    caused this? Technology and the global competition that we face mean
    that even when the economy is growing, inflation is low, and that's
    good. But wages often don't go up either, and that's not. There's a
    bigger educational premium than ever before. That is, workers who have
    more education are more likely to have higher incomes compared with
    workers without than at ever before in our history.
        What's the answer to this dilemma? First, we have to create more
    high-wage jobs. I'm heartened that in 1994 we had more high-wage jobs
    coming into our economy than in the previous 5 years combined. But
    second, and even more important, we have to get more education and
    training opportunities to all of our people and an increase to take-home
    income of middle class Americans.
        That's why I want Congress to adopt what I call the middle class
    bill of rights, four new ideas to help middle class Americans build a
    future that lives up to their dreams. Like the GI bill of rights after
    World War II, the middle class bill of rights will help people go to
    college, raise their children, and build a future. Like the best of all
    Government programs, the middle class bill of rights offers opportunity,
    not a guarantee; it emphasizes personal responsibility; and it's open to
    all so that it can help build the strength of our entire American
    community.
        Now, anybody can say, ``I want to give you a tax cut,'' and make
    people very happy in the short run. What I want to do is cut taxes so
    that people can invest in the education of their children and in their
    own education in training and skills. That will raise incomes and lead
    to a stronger America. I want our people to have more than a quick fix.
    I want them to have the resources they need to fulfill their hopes and
    dreams over the long term.
        Here's what's in the middle class bill of rights: first, a tax
    deduction for the tuition costs, up to $10,000, of all education after
    high school, for college, community college, graduate school,
    professional school, vocational education, or worker training for
    families with incomes of $120,000 or less; second, for families with
    incomes of $75,000 a year or less, a tax cut phased up to $500 for every
    child under 13; third, for those with incomes of under $100,000, the
    ability to put $2,000 a year, tax-free, into an individual retirement
    account, but also the ability to withdraw that money, tax-free, not just
    for retirement but for education, for health care, for the care of an
    elderly parent, or to buy a first home. Finally, the middle class bill
    of rights will take the billions and billions of dollars Government now
    spends on a variety of job training programs and consolidate that money
    and instead make it directly available to working Americans, so that
    when people are eligible for the funds, because they lose a job or
    because they're training for a better job, they'll be able to get the
    cash and spend it where they want in the education program of their
    choosing.
        Every single penny of this middle class bill of rights proposal is
    paid for by dramatic cuts in Government that I've proposed. We have led
    the way to the largest 2-year deficit reduction in the history of our
    country, and I will not allow anyone to destroy this progress in
    reducing the deficit and to threaten our economic recovery. We've
    already seen that progress is possible in Washington this year. The
    House of Representatives this week voted to apply the laws that apply to
    the rest of America to Congress. That's long overdue. They did that last
    year, but the Senate didn't follow suit. I hope the Senate will follow
    suit now.

    [[Page 23]]

        But we have to do more to change politics as usual. We desperately
    need to pass lobbying reform. The lobbyists didn't go away with the last
    election, and we still believe that they shouldn't be allowed to give
    gifts, entertainments, or trips to lawmakers. Unfortunately this week,
    the new majority in Congress voted not to enact lobby reform, at least
    for now. It's not too late for them to do it, and I urge them to do it
    as quickly as possible. If we want middle class Americans to benefit
    from what we do, then the public interest, not those of special
    interest, should have the loudest voice in Washington.
        That's why I'll apply one simple test to every policy, every piece
    of legislation that comes before me: Does it advance the interests of
    average American families--does it promote their values, build their
    future, increase their jobs and incomes? If it passes that test, I'll
    support it, and if it doesn't, I won't.
        If we work together to do the job the American people hired us to
    do, 1995 will be a terrific year for all Americans who work hard and
    play by the rules. We've seen for too long how people in Washington can
    obstruct progress for partisan gains. Now, sincerely, we must prove that
    we can work together to keep our country moving forward for America's
    gain.
        Thanks for listening.

    Note: The President spoke at 10:06 a.m. from the Oval Office at the
    White House.