    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (1999, Book II)]
    [August 2, 1999]
    [Page 1365]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Action To Reduce the National Debt
    August 2, 1999

        Today my administration announced that the U.S. Government will pay
    down more than $87 billion in the public debt this year--the largest
    debt reduction in America's history and a total reduction of $142
    billion over the last 2 years. This is an important result of the fiscal
    discipline which is helping keep our Nation on its path to economic
    prosperity. Six and a half years ago we made the decision to set a new
    course for our economy, to abandon the large deficits to pursue a new
    economic strategy of fiscal discipline, investment in our people, and
    expanded trade abroad. One of the results of this economic strategy has
    been a public debt that is $1.7 trillion lower than it was projected to
    be when I came into office.
        Debt reduction brings tangible benefits to America's working
    families through lower interest rates. These lower interest costs
    effectively represent a real and significant tax cut for America's
    families. Debt reduction lowers long-term interest rates for home
    mortgages and autos and lowers borrowing costs for businesses, fueling
    private sector investments for continued economic growth. A typical
    American family with a home mortgage of $100,000 could expect to have an
    estimated savings over the long run of more than $2,000 a year because
    of these lower interests rates.
        Despite the continued progress, now is not the time to rest on this
    achievement. We must continue this commitment to debt reduction and
    maintaining fiscal discipline. Under my framework to pay down the debt,
    save Social Security, and strengthen Medicare and invest in our
    children, the publicly held debt will be eliminated by 2015. This would
    represent the first time the Nation would be debt-free since the
    administration of President Andrew Jackson in 1835. We must maintain our
    commitment to reducing our debt and investing in our future.