[Weekly Compilation of Presidential Documents Volume 29, Number 25 (Monday, June 28, 1993)]
[Pages 1118-1120]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's Radio Address

 June 19, 1993

    Good morning. For 5 months I've been fighting hard for a national 
economic strategy to build prosperity for all our people. And now 
America's on the move.
    Just this week we scored several significant victories for the 
American people in the Congress. The Senate passed a campaign finance 
reform bill that limits the influence of special interests and their 
money in our lawmaking, and in our campaigns. Congressional committees 
have adopted my plan to make college loans available to all students at 
lower interest rates and better repayment terms and to make it possible 
for tens of thousands of them to pay off those loans through national 
service to their communities. Most important is the remarkable progress 
being made on the economic plan to increase growth, jobs, and incomes 
through bold deficit reduction. Last month the House of Representatives 
acted courageously to pass this plan. And now the path has been cleared 
for action by the Senate because the plan has passed out of the Senate 
Finance Committee.

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    Make no mistake about it, Washington is finally moving to put our 
economic house in order. If we want to get the economy back on track, 
Congress must pass this plan. It's necessary, fair, and it'll work.
    When I first presented this growth plan back in February, the 
financial markets took it seriously, and we saw real improvements in 
economic fundamentals, like interest rates. We now have the lowest long-
term interest rates in 20 years, mortgage rates are at a 20-year low, 
and now middle class homeowners are refinancing their mortgages, and 
some are receiving more than $2,000 in annual savings when they do. 
Housing sales are at a 7-year high, and employment in the construction 
industry is up 130,000 people in just the last 4 months. That's the 
largest increase in 9 years. Inflation is stable, and more than three-
quarters of a million new jobs have been added to the economy in the 
first 4 months of our administration. Ninety percent of them are in the 
private sector. And unemployment is finally below 7 percent for the 
first time in a year and a half.
    What explains these optimistic signs? For the first time in many 
years, we're making tough choices. Our plan makes historic cuts in 
Federal spending, $250 billion in spending cuts in more than 200 
specific programs. We cut virtually every part of the domestic, defense, 
and foreign aid budgets, including agriculture, veterans, Federal 
retirement and compensation plans, Medicare, not because we want to but 
because we have to and because it's the right thing to do.
    Because our program is balanced and fair, it also raises taxes to 
avoid unfair cuts that will damage the elderly, the working poor, and 
other vulnerable people in our country. But unlike the 1980's, when the 
rich paid less and the middle class paid more, we're asking the wealthy 
to pay their fair share to give the middle class a fair shake. Seventy-
five percent of the taxes are paid by those in the upper 6 percent of 
income brackets, those who exceed $100,000 in annual income. Two-thirds 
of these taxes are paid by individuals whose incomes exceed $200,000. 
Under this plan, the very wealthiest Americans will pay an additional 
$1,900 a month, while middle income families will pay only $17 more a 
month by 1998 and much, much less between now and then.
    If you're keeping score, this is how the program works. For every 
$10 in deficit reduction, we cut $5 in spending, raise $3.75 in taxes 
from the wealthiest Americans, and ask the middle class for $1.25. Let 
me say that again: For every $10 in savings, we cut $5 of spending, ask 
the wealthiest Americans for $3.75, and the middle class for $1.25. This 
cuts the deficit by $500 billion with all the savings locked up in a 
trust fund. And unlike some plans, we don't cut the cost-of-living 
adjustment for Social Security recipients.
    Most importantly, if we pass this plan, there will be a big payoff 
down the road for Americans who work hard and play by the rules. A lower 
deficit and a healthier economy means more jobs, lower interest rates, 
more opportunity, and more rewards for your hard work. That's why I'm 
fighting for this change.
    But let's face it, change is hard, and some people do fine with 
gridlock instead of growth. And nobody likes to make the tough 
decisions. There are thousands of lobbyists here in Washington who 
oppose the plan, hoping to force hard-pressed Americans to pay more or 
give up more so their powerful clients can pay less. Some of the Senate 
opponents fight the plan because it really raises taxes more on wealthy 
Americans than they think we should. And some of our adversaries, they 
don't even have an alternative. They're just playing politics with your 
economic future, screaming old slogans like ``tax and spend'' even 
though they helped to run our debt from $1 trillion to $4 trillion over 
the last 12 years and helped to bring about a $300 billion annual 
deficit that I found when I moved to Washington to go to work for the 
first time back in January. The stakes are just too big to play 
political games. If our growth plan gets caught in a web spun of 
gridlock and greed, this historic moment for America to get its fiscal 
house in order could slip away. You and I can't let that happen.
    If Senators are going to oppose my growth plan, they ought to answer 
these questions: What programs would you cut more deeply? We've already 
cut more than 100 programs more than $100 million each. Where are your

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tough choices? Will you ask the wealthy to pay their fair share, or will 
you put a higher burden on the middle class? Do you have a real, 
comprehensive plan to reduce the deficit by $500 billion? Maybe our 
opponents should listen to Ted Turner's advice: Lead, follow, or get out 
of the way.
    It's time to get America moving again. People don't want 4 more 
years or 4 more months or 4 more days of politicians telling them what 
they want to hear while all our problems get worse. It's time instead to 
make a permanent commitment to a growing economy that produces jobs and 
a higher standard of living for our people. That's what we're doing.
    Where once there was too much spending, there's now a plan with real 
and deep spending cuts. Where once there were no investments in our 
people, there's now a plan for college loans, job training and national 
service, Head Start, and new technologies for those who are losing their 
jobs due to defense cutbacks. Where once there were tax breaks for the 
wealthy and tax hikes for the middle class, now there's a plan for tax 
fairness for all Americans.
    Working together, we're making America work again and helping this 
economy to create jobs again. And soon, if we stay together, we'll make 
it more prosperous for ourselves and for our children.
    Thanks for listening.

Note: This address was recorded at 6:45 p.m. on June 18 in the Roosevelt 
Room at the White House for broadcast at 10:06 a.m. on June 19.