    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (1999, Book II)]
    [October 27, 1999]
    [Pages 1890-1892]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 1890]]

    Remarks on Debt Reduction and an Exchange With Reporters
    October 27, 1999

        The President. Good afternoon. Nearly 7 years ago, at a time of
    economic distress, social division, and political drift, we set out on a
    course to put America's fiscal house in order with an economic strategy
    rooted in common sense and common values, committed to bringing down the
    deficit, investing more in people, and expanding trade.
        With the historic 1993 economic plan and the 1997 Balanced Budget
    Act, we made the tough choices to reduce the deficit and balance the
    budget the right way. Year-in and year-out, we have resisted politically
    attractive but economically unwise tax cuts that would have abandoned
    this commitment and taken us in the wrong direction. It hasn't been
    easy, and all along the way many said our approach wouldn't work. Some
    Members of Congress who, in 1993, took the courageous stand for our
    future even lost their seats as a result of what they did.
        But this economic strategy has paid off. We have the longest
    peacetime expansion in history, 19\1/2\ million new jobs, the lowest
    unemployment rate in 29 years, the lowest welfare rates in 30 years, the
    lowest poverty rates in 20 years, the highest homeownership in history.
        America has now enjoyed 7 consecutive years of fiscal improvement
    and economic growth, withstanding along the way the Asian financial
    crisis and helping to bring the world back toward prosperity. Now we
    have further evidence that our economic plan is working.
        Today the Department of the Treasury and the Office of Management
    and Budget are releasing the financial totals for the fiscal year that
    just ended. It is now official, and I'm proud to announce that we posted
    a budget surplus of $123 billion, the largest surplus in American
    history.
        And in the last 2 years alone, we have paid down our Nation's debt
    by $140 billion, the largest debt reduction in our Nation's history. We
    have closed the book on deficits and opened the door on a new era of
    economic opportunity. These new numbers also show that last year we came
    within $1 billion of balancing the budget without using the Social
    Security surplus, for the first time in decades.
        Unfortunately, this year's Republican budget reverses that course,
    spending about $18 billion from the Social Security surplus, according
    to estimates from the Congressional Budget Office. That is wrong, and it
    doesn't have to be. Congress should pass the plan I submitted that meets
    our priorities, doesn't rely on the Social Security surplus, and
    continues our aggressive efforts to pay down the debt.
        According to today's report, America's debt is now $1.7 trillion
    lower than it was projected to be when I took office. What does that
    mean? For America it means lower interest payments on our debt and lower
    interest costs across-the-board. Last year the Government paid $91
    billion less in interest than was projected in 1993, creating a virtuous
    cycle that boosted the budget surplus and further reduced the debt.
        For American business, debt reduction means that the Government is
    borrowing less, so there's more capital for business to invest at more
    modest prices. As a result, investments in technology, in particular,
    have boomed, bringing greater productivity, more jobs, higher wages.
        The best story is perhaps what it means for working families. That's
    what the chart to my left shows. Debt reduction means lower interest
    rates and more money. It means $2,000 less in home mortgage payments for
    the typical family. It means $200 less in car payments and $200 less in
    college loan payments. Debt reduction really means a tax cut and a
    sizable one for America's families. It proves that putting our fiscal
    house in order helps every American household.
        Now, in spite of our progress, the congressional majority has
    continued to try to take us off this path, first with an irresponsible
    tax plan that I vetoed and then with a budget that fails to live up to
    our values and our interest for the future. Even without their tax cut--
    can you just imagine the fix we'd be in if that tax cut had become law?
    Even without their tax cut, they are set to spend several billion
    dollars of this year's Social Security surplus, while trying to disguise
    it with gimmicks. They are even set to enact an across-the-board
    spending cut that would have a destructive impact on our efforts

    [[Page 1891]]

    to educate our children, protect our environment, and modernize our
    military. Even with all this, they would not extend the solvency of
    Social Security or Medicare by one single day.
        That is why, yesterday, I sent legislation to Capitol Hill that
    would ensure that all the Social Security surplus goes to debt
    reduction. And just like when a family cuts its debt, this will result
    in lower interest payments for the Government. I have also proposed,
    therefore, that we use these interest savings from Social Security
    surplus contributions to our debt reduction to extend the life of Social
    Security until the year 2050, which will encompass the life span of most
    of the baby boomers.
        Now, we can do this and still have a budget that puts 100,000
    teachers in the classroom, 50,000 police on the street, provides real
    protection for our environment, strengthen and modernizes Medicare, and
    keeps us on track to becoming debt-free for the first time since 1835.
        Today's good news is a result of hard-won economic choices that put
    our people first. That strategy has created the most prosperous economy
    in generations. If we seize this historic moment, we can now create a
    generation of prosperity. That is the debt we still owe to our children
    and to America's future in the new century.
        I am committed to working with the Congress to make good on that
    commitment and to get the job done.
        Thank you very much.

    Attack at the Armenian Parliament

        Q. Mr. President, how concerned are you about the situation in
    Armenia, and who do you believe is responsible for that coup attempt?
        The President. Well, as to the last, I'm very concerned about it and
    my heart and prayers go out to the people of Armenia and the families of
    the very important officials who have been killed already. We are not
    sure who is responsible. The situation is ongoing. As soon as we know
    more, we will let you know.
        We have a good relationship with Armenia, and as you know, we've
    done a lot of work with Armenia and Azerbaijan to try to resolve the
    difficulties surrounding Nagorno-Karabakh. The two Presidents have been very
    forthcoming, and this is a real blow to that country and to that region,
    and I'm very sorry about it. But I don't know any more at this time.

    Privacy of Medical Records

        Q.  Mr. President, is it really possible to keep a privacy of
    medical records guaranteed at a time of electronic data keeping and when
    those records are worth a lot of money in marketing?
        The President. Well, they are worth a lot of money in marketing,
    which is why we're determined to keep them private, except in
    appropriate circumstances or where the patients, themselves, agree.
        It's a complicated question, as you know, which is, presumably, why
    the Congress in 1996 agreed to let me take executive action if they were
    unable to resolve it legislatively. I still think as a matter of policy,
    because it's such an important sweeping matter, it would be better if we
    could have legislation on this. But I intend to proceed and to propose
    the regulations, open them for public comment.
        I do believe that there are technological fixes which could protect
    the privacy of records. It's complex; we're trying to make the rules as
    understandable, as clear as possible, and as susceptible of enforcement
    and honoring as possible by the people who have to implement them.
        But this privacy issue is a big deal. And the more we become
    digitalized and the more all of our records are stored electronically,
    the more we'll have to do. In the financial modernization bill, which
    we've reached agreement on, I'm very pleased that we were able to allow
    the financial modernization to proceed, which, I think, will be good for
    our economy. I'm very pleased that we were able to preserve the strong
    Community Reinvestment Act, which has been a major part of our
    antipoverty strategy. But I do think there--the privacy rules are not as
    strong as they might be, and I hope there will be an effort,
    congressionally, to deal with that issue as well.

    Trade With Europe

        Q. Mr. President, when you talked to Mr. Prodi today, did you talk about American beef and the
    bananas? What are the results of these conversations?
        The President. Well, they agreed to work with us to try to resolve
    both those matters in an expeditious fashion. They are causing real
    trouble, not only between the United States and the European Union but
    for our efforts to build a global trading system. Because if there is an
    international body which is supposed to resolve

    [[Page 1892]]

    these disputes and you win and then you win again and then you win again
    and nothing happens, it's very frustrating. It undermines our ability to
    build support in the Congress and in the country for a new trade round
    which, as you know, I think is very, very important.

    Nuclear Weapons in Armenia

        Q. Sir, on Armenia, on nuclear weapons, are there nuclear weapons or
    nuclear stores in Armenia that you know about?
        The President. I believe that what we have done on the nuclear
    weapons issue and getting the nuclear weapons out of all the republics
    of the former Soviet Union, except for Russia, is well-known, and I have
    no reason to believe that we have not succeeded in that.

    Payment of United Nations Dues

        Q. Mr. President, what would be the message sent if the U.S. again
    fails to pay its U.N. dues? And will you use your veto pen to ensure
    that the U.N. dues are paid this year?
        The President. Well, I have already vetoed the legislation which
    didn't provide for that, as you know. And now I'm working very, very
    hard to try to resolve that. I hope that the responsible leaders in the
    Senate and the House, in the Republican and the Democratic Party, in the
    pro-life and pro-choice camps, will work through this.
        It is wrong for the United States not to meet its responsibilities
    to the United Nations, and we get a lot out of that. You know, there are
    these people in Kosovo and elsewhere around the world, in East Timor and
    other places, doing work that America does not have to do because of the
    United Nations. And all they want us to do is to pay our fair share, and
    that's what I think we ought to do.
        I've got to go to President Ford's Medal
    of Freedom now--I mean, Congressional Medal.
        Thank you.

    Note: The President spoke at 2:40 p.m. on the South Grounds at the White
    House prior to departure for the Capitol. In his remarks, he referred to
    President Robert Kocharian of Armenia; President Heydar Aliyev of
    Azerbaijan; and European Commission President Romano Prodi.