[Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (1999, Book II)]
[December 3, 1999]
[Pages 2202-2205]
[From the U.S. Government Publishing Office www.gpo.gov]
Remarks on the National Economy
December 3, 1999
Thank you very much. Thank you, Secretary Herman and Council of Economic Advisers Chairman Martin
Baily, and especially, thank you, Marvin
Dawkins, for your remarks and for the power
of your example.
This is a very different time than we were experiencing 7 years ago
this month. When I ran for President in 1992, it was a time of economic
distress and uncertainty for our country. While some people were moving
from the industrial to the information economy with optimism and
purpose, many others felt fear and uncertainty because of the problems
in our economy, high unemployment, big deficits, high interest rates,
low productivity gains, falling real wages for average Americans.
Too many Americans couldn't tell the story that Marvin just told. They lacked the skills they needed to
succeed in the new economy; they felt threatened by the changes; and
they had no access to the tools that would lift them up.
But when I traveled around the country in 1992 with the Vice
President, we saw a lot of signs of hope. We saw a lot of people who
were winning. And we became even more convinced that our country, as a
whole, could do very well in this new global information economy, if we
could create the conditions and provide all Americans the tools
necessary to succeed.
It seemed to me that there were three absolutely pivotal elements.
First, fiscal discipline: We had to get rid of the deficit and get
interest rates back down and get investment back up. Second, expanded
trade: We had 4 percent of the world's people and 22 percent of the
world's income; even someone technologically challenged like me could
figure out we had to sell something to the other 96 percent of the
people on the globe. And third, greater investments in new technologies
and in our people in their capacity not only to know what they needed to
know but to learn for a lifetime. And people like Marvin
Dawkins are Exhibit A of the pivotal
importance of that.
Now in 1993, we put in place a new economic strategy. It cut the
deficit and increased investment by eliminating hundreds of inessential
programs and putting us on a path that now has given us the smallest
Federal Government in 37 years. In 1997, with the Balanced Budget Act,
we continued the strategy, again increasing investment, cutting
inessential programs, first balancing the budget and then providing the
first back-to-back budget surpluses in 42 years.
Now that led to lower interest rates, which helped ordinary
Americans in all kinds of ways. It cut the price of the average home
mortgage by $2,000, the price of the average car payments by $200 a
year, the average college loan payment by $200 a year. But critically,
it also cut the borrowing costs and the investment costs, therefore, for
new businesses, especially for investment in new productivity-enhancing
technologies.
At the same time, we negotiated over 270 trade agreements, including
dozens of them involving high technology issues, all of which helped
Americans to increase exports of high technology products, services. We
promoted more competition in telecommunications, providing American
consumers with the lowest Internet access rates in the world and fueling
the growth of E-commerce. And we've taken actions that have led to the
creation of a whole new generation of digital wireless phones, you know,
the kind you hear go off in restaurants, movie theaters, and
Presidential press conferences. [Laughter]
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While eliminating hundreds of programs, we have almost doubled our
investment in education and training, everything from preschool to
dramatically increasing college access, to establishing lifetime access
to training and retraining programs for people like Marvin.
Now, as a result of these actions and, most importantly, the
innovation and the hard work of the American people, we are now
experiencing an amazing virtuous cycle of progress and prosperity that
few could have imagined. We are in the midst of the longest peacetime
economic expansion in American history. If as seems highly likely it
goes on through February, it will become the longest economic expansion
in our history.
It has given us low inflation, the lowest unemployment rate in 30
years, also the lowest welfare rolls in 30 years, the lowest poverty
rates in 20 years, the highest homeownership ever recorded, the lowest
African-American and Hispanic unemployment rates ever recorded, the
lowest African-American poverty rate ever recorded, the lowest Hispanic
poverty rate recorded in a generation, the lowest poverty rate among
households headed by single adults in over 40 years, and the lowest
unemployment rate among women in 40 years.
In other words, a good economy has also turned out to be very good
social policy. More and more Americans are mastering the skills and
reaping the benefits of this new economy, and America itself continues
to lead in new technologies, from E-commerce to biotech, that are
shaping the future of the entire world.
Now today, I want to talk about one more piece of stunningly good
economic news that is the direct result of the actions that have been
taken and the work that has been done by our people to propel our
economy into the new century, and now, we have a high-tech animation
behind me--[laughter]--to illustrate this good economic news. I hate to
compete with the movies, and I'll probably lose--[laughter]--but the
idea is that I'm supposed to be the narrator of this show. [Laughter]
What you see behind me is a graphic representation of the growth of
new jobs in America, beginning in 1993, as well as the geographic
location of these jobs. You can see they have been spread across the
country, wherever people live. Virtually no area of our Nation has been
left out. At the bottom, you can also see a running tally of how many
new jobs have been created. [Laughter] And I'm ahead of the running
tally. [Laughter] But the latest figures are being released today.
Come along. [Laughter] What did you say? Filler, filler. [Laughter]
I've never been at a loss for words. [Laughter] Why can't I do this?
With today's new numbers, we have truly crossed a remarkable
threshold: 20 million jobs. In fact, the specific number behind me is
20,043,000 jobs, thanks to the hard work of the American people, the
economic policies we have pursued.
To give you some idea of what this means, 20 million jobs is a
number greater than the population of Minneapolis and St. Paul, Denver,
Washington, San Francisco, Dallas, Miami, Buffalo, Cleveland, and Little
Rock combined. [Laughter] Twenty million people would fill the Rose Bowl
to capacity 200 times over. Twenty million jobs are a lot of jobs.
And by and large, those jobs are good, well-paying jobs, jobs on
which you can support a family, buy a home, afford a vacation, save for
college, put away a nest egg for retirement. This was made clear in a
new report being released today by my Council of Economic Advisers and
the Department of Labor.
The report finally should put to rest the old myths about the new
economy. The 20 million new jobs we have created mostly are high-wage
not low-wage jobs. Over 80 percent of them are in job categories that
pay above the median wage. They are mostly full-time, not part-time. In
fact, the proportion of Americans in part-time work has actually fallen
a bit in the last few years.
Finally, those 20 million new jobs have benefited not just one race
or class of Americans but all Americans. Unlike the end of the last
economic expansion in the 1980's, when average wages went down, wages
during the last 4 years of this expansion have gone up across the board
in all income categories, with some of the biggest gains coming to some
of our hardest pressed working families. As I said--I want to say this
again, because I think it is worth reiterating: This economy is not just
20 million new jobs and a stock market that went above 11000 again
today--I never talk about it because it goes down as well as up, but
it's done pretty well--but let me say again, the lowest African-American
unemployment and poverty rates ever recorded--and we've been separating
the figures for nearly 30 years now--the lowest Hispanic
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unemployment rate on record and the lowest Hispanic poverty rate in over
25 years, the highest minority homeownership on record, the lowest
female unemployment rate since 1953. And I don't need to remind the
large group of women in this audience that in 1953, there were a lot
smaller percentage of women in the work force, so this is actually a
much more important figure than even that number indicates.
Now, technology has been a very important part of this economic
performance. It has given us big productivity gains. The information
technology sector alone has been responsible for about a third of our
economic growth. And jobs in that sector pay nearly 80 percent more than
the private sector average. If we want our current prosperity to
continue into the 21st century, we must therefore clearly continue to
encourage the creation and the spread of new technologies in our own
economy.
Therefore, I would like to highlight a couple of things that I think
are of real importance in the budget agreement achieved with Congress,
that I signed just a few days ago. First, the budget I signed contains
substantial increases in direct Federal investment and long-term
research and development. This is still very important, as all the
private sector experts tell us. It is the kind of investment that
allowed the Defense Department to create the predecessor of today's
Internet 30 years ago, that led Marc Andresen,
working at a federally funded supercomputer center, to develop the first
graphical web browser.
We worked hard to get increases not only for biomedical research
that had strong support in our Congress but for other science and
engineering disciplines as well. And I would like to make this point
very strongly, because it's one that I hope to make more progress on
next year and hope to see our country embrace as a policy across the
board, without regard to party: It is very important that we have a
balanced research portfolio. And I don't believe that the National
Institutes of Health has had a stronger supporter than me. I believe
that. But we have to have a balanced research portfolio, because the
research enterprise is increasingly interdependent. Advances in health
care, for example, are often dependent on breakthroughs in other
disciplines, such as the physics needed for medical imaging technology
or the computer science needed to develop more drugs more rapidly or to
continue the mapping of the human genome.
Just think what these investments could mean. Today, scientists and
engineers all over the country have ideas for new technologies they need
Federal help to explore, technologies that could transform our economy
and our lives in the future just as dramatically as the Internet is
doing today. There is really a continuing revolution, as we all know, in
all kinds of computer technology, in biomedical research, and also in
materials development, which I'll say a little more about.
We'll have new materials as strong as steel but 10 times lighter. At
the Detroit auto show this year, they were already showing cars 500 to
1,000 pounds lighter that have exactly the same safety tests as the old
cars with steel. Obviously, that dramatically increases mileage, that
reduces greenhouse gas emissions. We could have new drugs that might
cure spinal cord injuries or new computer chips that might simulate
nerve movements that allow people to function without the nerves
actually being reconnected.
Just before I walked out here--this is ironic--just before we walked
out here, we had CNN on in the little anteroom, and they pointed out
that Stevie Wonder was about to have
experimental surgery to have a computer chip inserted in his retina to
see if it can simulate and recreate the functioning that was lost when
he was an infant. We obviously all hope it will work. But I can tell you
this: Someday, such things will work, and it won't be very long in the
future.
We already have fuel cells and blended fuel engines for automobiles
which will take mileage up to 70 and 80 miles a gallon. We will soon
have, I believe, ultra-clean fuel cells for cars, whose only byproduct
will be water clean enough to drink; computers that can translate
English into foreign languages and vice-versa as fast as people can
speak. All these things are right around the corner, but we have to
continue our commitment to research.
Second, later this month, I will sign a tax measure that extends for
5 years the life of the vitally important research and experimentation
tax credit. This is important because this tax credit gives private
firms the incentives they need to invest in innovative technologies that
often don't show up quickly on the bottom line
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but that, over the long run, will be highly profitable and that
immediately provide tremendous benefits to society as a whole.
Third, last week I signed legislation to help accelerate competition
in the telecommunication industry, to give consumers more choices and
lower prices. I also signed a bill to strengthen and streamline our
patent and intellectual property system, to strengthen the incentives
for the next Alexander Graham Bell or Steve Jobs, to create the
inventions and innovations that will drive the 21st century economy.
No one today can say for sure what our economy will look like in 25
or 50 years or what as yet unimagined technologies will transform our
lives. But we do know that it will be truly amazing, and it will happen
with breathtaking speed and scope. And we know that our Nation has
always prospered when Government has invested in giving people the
opportunity to make the most of their vision and their dreams, from
financing the Louisiana Purchase and the Lewis and Clark Expedition to
the Interstate Highway System and the space program.
The American people have always been a bold and innovative bunch. We
are always drawn to uncharted lands over the next horizon. Who will pack
our bags and head out to the latest gold rush or tinker in our basements
for years to invent a product no one else has ever imagined? That's what
we do.
Today, thanks to wise investments made by Government and the private
sector over many years, the American people have before them the
unexplored continent of cyberspace and the prospect of discovering what
is in the black holes in outer space. By continuing these commitments,
we can celebrate more days like today.
Thank you very much. Thank you.
Note: The President spoke at 1:25 p.m. in Presidential Hall (formerly
Room 450) in the Dwight D. Eisenhower Executive Office Building. In his
remarks, he referred to Marvin Dawkins, former AT&T employee who took
advantage of retraining opportunities to begin a new career, who
introduced the President; Marc Andresen, cofounder Netscape
Communications Corp.; and musician Stevie Wonder.