[Weekly Compilation of Presidential Documents Volume 30, Number 24 (Monday, June 20, 1994)]
[Pages 1278-1283]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on Welfare Reform in Kansas City, Missouri

June 14, 1994

    Thank you very much. Thank you, ladies and gentleman, for that warm 
introduction and welcome. And thank you, Yolanda Magee, for presenting 
me today and, far more importantly, for presenting such a good example 
of a young American determined to

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be a good parent and a good worker and a successful citizen. Thank you, 
Mr. Kemper, for giving her a chance to be all that. Thank you, 
Congressman Wheat, for your leadership on welfare reform. And thank you, 
Mayor Cleaver, for your leadership on this issue. Thank you, Governor 
Carnahan, for proving once again that the States, just as James Madison 
and Thomas Jefferson intended, are still the laboratories of democracy, 
still capable of leading the way to change things that don't work in 
this country and to unleash the potential of our citizens. This is a 
remarkable welfare reform plan that you have put together. I'd like to 
thank also Secretary Shalala for her work here. Many people in the White 
House and in the Department of Health and Human Services worked with 
people all over America in putting this welfare reform plan together 
today. I thank them all.
    Ladies and gentlemen, this is an important day for me because I have 
worked on this issue for about 14 years, and I care a great deal about 
it. I came out here to the heart of America, to a bank where Harry 
Truman had his first job, to talk about the values that sustain us all 
as citizens and as Americans, faith and family, work and responsibility, 
community and opportunity.
    Last week, on behalf of all Americans, I took a journey of 
remembrance--many of you at least took it, too, through the television--
to honor the sacrifices of the people who led our invasions at D-Day and 
on the Italian Peninsula. I came home from Normandy with a renewed 
sense, which I hope all of you share, of the work that we have to do in 
this time to be worthy of the sacrifices of that generation and to 
preserve this country for generations still to come.
    The people who won World War II and rebuilt our country afterward 
were driven by certain bedrock values that have made our country the 
strongest in history. Facing the dawn of a new century, it is up to us 
to take those same values to meet a new set of challenges.
    Our challenge is different. Today we have to restore faith in the 
beginning in certain basic principles that our forebears took for 
granted: the bond of family, the virtue of community, the dignity of 
work. That is really what I ran for President to try to do, to restore 
our economy, to empower individuals and strengthen our communities, to 
make our Government work for ordinary citizens again.
    I think we've made a good beginning. In the last year and a half, we 
have reversed an economic trend that was leading us into deeper and 
deeper debt, less investment, and a weaker economy. The Congress, as 
Congresswoman Danner and Congressman Wheat will attest, is about to put 
the finishing touches on a new budget which will give us 3 years of 
declining deficits in the Federal accounts for the first time since 
Harry Truman was President.
    We worked to expand trade and the frontiers of technology, to have 
tax incentives for small businesses and for working families on modest 
wages to keep them moving ahead. And the results are pretty clear. Our 
economy has produced about 3.4 million jobs in the first 17 months of 
this administration. So we're moving ahead.
    We're trying to empower people with new systems for job training and 
community service and other options for young people to rebuild their 
communities and go to college. We're trying to make this Government work 
again for ordinary citizens by reforming the way it works with our 
reinventing Government program that will lead us within 5 years to the 
smallest Federal bureaucracy since John Kennedy was President, doing 
more work than ever done before by the Federal Government; that will 
lead the Congress, I hope, in just a couple of weeks to pass the most 
comprehensive anticrime bill in the history of the country; that is 
helping all of us to restore that bond that has to exist between a 
Government and its people.
    But I have to tell you that the challenge of the welfare system 
poses these issues, all of them in stark terms: how to make the economy 
work; how to make the Government work for ordinary citizens; how to 
empower individuals and strengthen communities. These difficulties are 
all present in the challenges presented by the current welfare system. 
There's no greater gap between our good intentions and our misguided 
consequences than you see in the welfare system.

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    It started for the right common purpose of helping people who fall 
by the wayside. And believe it or not, it still works that way for some, 
people who just hit a rough spot in their lives and have to go on public 
assistance for awhile, and then they get themselves off, and they do 
just fine. But for many the system has worked to undermine the very 
values that people need to put themselves and their lives back on track. 
We have to repair the damaged bond between our people and their 
Government, manifested in the way the welfare system works. We have to 
end welfare as we know it.
    In a few days, as has already been said, I will send to Congress my 
plan to change the welfare system, to change it from a system based on 
dependence to a system that works toward independence, to change it--
[applause]--thank you--to change it so that the focus is clearly on 
work.
    I also want to say that I developed a phrase over the last few years 
that would end welfare as we know it by saying welfare ought to be a 
second chance, not a way of life. One young woman I met a few moments 
ago said, ``It ought to be a stepping stone, not a way of life.'' Maybe 
that's even better, but you have the idea.
    Long before I became President, as I said, I worked with other 
Governors and Members of Congress of both parties. I worked on it with 
people who were on welfare, a lot of them. And let me say first of all 
to all those whom I invite to join this great national debate, if you 
really want to know what's wrong with the welfare system, talk to the 
people who are stuck in it or who have been on it. They want to change 
it more than most people you know. And if you give them half a chance, 
they will.
    Before I came down to see you, I met with Yolanda Magee, and she 
told me her story. I also met with several other people who are now 
working in this area, who used to be on welfare, people who get up every 
morning and go to work in factories or small businesses or banks, who do 
their best to take care of their children and to advance their capacity 
to succeed in our complex, modern society.
    And I want to introduce them all to you and ask them to stand, so 
that when you look at them you'll know what this whole deal is about. 
And let me just--they're over here: Kathy Romero, who works at Lutheran 
Trinity Hospital--stand up--Arlenda Moffitt, who works at Pitney-Bowes 
Management Services; Vicki Phelps who works at Continuum Vantage 
Research; Pamela Ruhnke, who works at Cates Sheet Metal; Birdella Smith 
at HOK Sports Facilities; Christine McDonald who works for Pepsi-Cola; 
Mimi Fluker who works at Payless Cashways; Audrey Williams who works at 
Allied Security; Judy Sutton, a teacher in the Kansas City School 
District; and Tracy Varron, a home health registered nurse at Excelsior 
Spring City Hospital.
    Every one of those American citizens at one point in her life was on 
welfare. Every one now, thanks to programs and incentives and help with 
medical coverage and child care and training and just helping people put 
their lives back together through the initiatives that have already been 
discussed here, is now a working American. And I say to you, if these 
American citizens can do this here in Kansas City, we ought to be able 
to do this in every community in the country. And we ought to be able to 
change the system and get these people out of it.
    How shall we change this system? Let me say first, I think we have 
to begin with responsibility, with the elemental proposition that 
governments do not raise children, people do, and that among other 
things, an awful lot of people are trapped in welfare because they are 
raising children on their own when the other parent of the child has 
refused to pay child support that is due, payable, and able to pay.
    This plan includes the toughest child support enforcement measures 
in the history of this country that go after the $34--listen to this--
the $34 billion gap in this country. That is, it is estimated that there 
are $34 billion worth of ordered but uncollected child support today in 
America, $34 billion.
    How are we going to do that? First, by requiring both parents to be 
identified at a hospital when a baby's born. Second, by saying, if you 
don't provide for your children, you should have your wages garnished, 
your license suspended; you should be tracked across State lines. If 
necessary, you should

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have to work off what you owe. This is a very serious thing. We can no 
longer say that the business of bringing a child into the world carries 
no responsibility with it and that someone can walk away from it.
    The second thing that responsibility means is not just going after 
people who aren't fulfilling it but rewarding those who are being 
responsible. The system now does just the opposite. Just for example, 
the welfare system will pay teen parents more to move out of their home 
than to stay there. In my opinion, that is wrong. We should encourage 
teen parents to live at home, stay in school, take responsibility for 
their own futures and their children's futures. And the financial 
incentives of the welfare system ought to do that instead of just the 
reverse. We have to change the signals we are sending here.
    We also have to face the fact that we have a big welfare problem 
because the rate of children born out of wedlock, where there was no 
marriage, is going up dramatically. The rate of illegitimacy has 
literally quadrupled since Daniel Patrick Moynihan, now a Senator from 
New York, first called it to our attention 30 years ago. At the rate 
we're going, unless we reverse it, within 10 years more than half of our 
children will be born in homes where there has never been a marriage.
    We must keep people from the need to go on welfare in the first 
place by emphasizing a national campaign against teen pregnancy, to send 
a powerful message that it is wrong to continue this trend, that 
children should not be born until parents are married and fully capable 
of taking care of them. And this trend did not develop overnight. There 
are many reasons for it. It will not be turned around overnight. But be 
sure of this: No Government edict can do it.
    This is a free country with hundreds of millions of people making 
their decisions, billions of them every day. To change a country on a 
profound issue like this requires the efforts of millions and millions 
and millions of you talking openly and honestly and freely about these 
things; talking to people who have lived through these experiences and 
many of them doing the very best they can to be honorable and good 
parents; talking about what we can do to involve churches and civic 
clubs and groups of all kinds in this endeavor, not to point the finger 
at people to drive them down or embarrass them but to lift them up so 
that they can make the most of their lives and so they can be good 
parents when the time comes to do that.
    But let us be clear on this: No nation has ever found a substitute 
for the family. And over the course of human history, several have 
tried. No country has ever devised any sort of program that would 
substitute for the consistent, loving devotion and dedication and role-
modeling of caring parents. We must do this work. This is not a 
Government mission; this is an American mission. But we must do it if we 
want to succeed over the long run.
    And let me say finally that if you strengthen the families, we still 
can't change the welfare system unless it is rooted in getting people 
back to work. You can lecture people; you can encourage people; you can 
do whatever you want. But there has to be something at the end of the 
road for people who work hard and play by the rules. Work is the best 
social program this country ever devised. It gives hope and structure 
and meaning to our lives. All of us here who have our jobs would be lost 
without them.
    Just stop for a moment sometime today and think about how much of 
your life is organized around your work, how much of your family life, 
how much of your social life, not to mention your work life. Think about 
the extent to which you are defined by the friends you have at work, by 
the sense that you do a good job, by the regularity of the paycheck.
    One of these fine women who's agreed to come here today said that 
one of the best things about being off welfare was getting the check and 
being able to go buy her own groceries every 2 weeks. That's a big deal.
    So I say to you, we propose to offer people on welfare a simple 
contract. We will help you get the skills you need, but after 2 years, 
anyone who can go to work must go to work, in the private sector if 
possible, in a subsidized job if necessary. But work is preferable to 
welfare. And it must be enforced.
    Now, this plan will let communities do what's best for them. States 
can design their own programs; communities can design their

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own programs. This will support initiatives like the WEN program here, 
not take things away from them and substitute Government programs.
    We want to give communities a chance to put their people to work in 
child care, home care, and other fields that are desperately needed. We 
want every community to do what you've done here in Kansas City, to 
bring together business and civic and church leaders, together to find 
out how you can make lasting jobs and lasting independence.
    Let me say just a couple of other things. If you wish people to go 
to work, you also have to reward them for doing so. Now, a popular 
misconception is that a lot of people stay on welfare because the 
welfare check is so big. In fact, when you adjust it for inflation--
[laughter]--right? When you adjust it for inflation, welfare checks are 
smaller than they were 20 years ago.
    But there are things that do keep people on welfare. One is the tax 
burden of low wage work; another is the cost of child care; another is 
the cost of medical care. Now, a few years ago, I was active as a 
Governor in helping to rewrite the welfare laws so that States were 
given the opportunity to offer some people the chance to get child care 
and medical care continued when they got off welfare and went to work 
for a period of transition. Several of these women have taken advantage 
of that, and they talked about it.
    But we must do more. Last year when the Congress passed our economic 
program, they expanded the earned-income tax credit dramatically, which 
lowered taxes on one in six working Americans working for modest wages 
so that there would never again be an incentive to stay on welfare 
instead of going to work. Instead of using the tax system to hold people 
in poverty, we want to use the tax system to lift workers out of 
poverty.
    That was one of the least known aspects of the economic program last 
year, but more than 10 times as many Missourians, for example, got an 
income tax cut as the 1.2 percent of the wealthiest people got an income 
tax increase. Why? Because you want to reward people who are out there 
working who are hovering just above the poverty line.
    What's the next issue? In our bill, we provide some more 
transitional funds for child support to help people deal with that. 
That's important.
    But thirdly, one of the most important reasons we should pass a 
health care reform bill that makes America join the ranks of every other 
advanced country in the world that provides health insurance to all its 
people is that today you have this bizarre situation where people on 
welfare, if they take a job in a place which doesn't offer health 
insurance, are asked to give up their children's health care and go to 
work, earning money, paying taxes to pay for the health care of the 
children of people who didn't make the decision to go to work and stayed 
on welfare, while they made the decision to go to work and gave up their 
children's health care coverage. That does not make any sense. And until 
we fix that, we will never close the circle and have a truly work-based 
system.
    If we do the things we propose in this welfare reform program, even 
by the most conservative estimates, these changes together will move one 
million adults who would otherwise be on welfare into work or off 
welfare altogether by the year 2000.
    And if we can change the whole value system, which has got us into 
the fix we're in today, the full savings over the long haul are more 
than we will ever be able to imagine, because the true issue on welfare, 
as Senator Moynihan said so many years ago, is not what it cost the 
taxpayers; it's what it cost the recipients. We should be worried about 
that.
    And let me say, one of the most rewarding things that happened today 
in our little meeting before I came down was I asked all these fine 
ladies who are here, I said, ``Now, if we were able to provide these 
services, do you believe that it should be mandatory to participate in 
this program?'' Every one of them said, ``Absolutely! Absolutely!''
    So I ask you all here--let us be honest, none of this will be easy 
to accomplish. We know what the problems are. And we know they did not 
develop overnight. But we have to make a beginning. We owe it to the 
next generation. We cannot permit millions and millions and millions of 
American children to be trapped in a cycle of dependency with people who 
are not responsible for bringing them into the world, with parents who 
are trapped in a system that doesn't develop their

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human capacity to live up to the fullest of their God-given abilities 
and to succeed as both workers and parents. We must break this cycle.
    For this reason, this ought to be a bipartisan issue. Over the last 
30 years, poor folks in this country have seen about all the political 
posturing they can stand, one way or the other. Now, there are serious 
people in both political parties in Congress who have advanced proposals 
to change the welfare system. And I really believe that we have a chance 
finally to replace dependence with independence, welfare with work.
    I don't care who gets the credit for this if we can rebuild the 
American family; if we can strengthen our communities; if we can give 
every person on welfare the dignity, the pride, the direction, the 
strength, the sheer person power I felt coming out of these ladies that 
I spoke with today; if we can give people the pride that I sense from 
Yolanda's coworkers when she stood up here to introduce me today. This 
is not a partisan issue; this is an American issue.
    Let me tell you, several years ago when I was a Governor of my 
State, I brought in Governors from all over the country to a meeting in 
Washington, and then I brought in people from all over America who had 
been on welfare to talk to them. We had most of the Governors there, and 
they were shocked. Most of them had never met anybody who'd been on 
welfare before. And there was a woman from my State who was asked a 
question. I had no idea what she was going to answer. She was asked 
about her job, and she talked about her job and how she got on the job. 
And then she was asked by a Governor, ``Well, do you think enrollment in 
these programs ought to be mandatory?'' She said, ``I sure do.'' And 
then a Governor said, ``Well, can you tell us what the best thing about 
being in a full-time job is?'' She said, ``Yes, sir. When my boy goes to 
school, and they ask him, `what does you mama do for a living,' he can 
give an answer.''
    Ladies and gentlemen, I thank you for proving today that we can give 
every child in America a chance to give an answer. Let's go do it.
    Thank you.

Note: The President spoke at 1:12 p.m. at the Commerce Bank. In his 
remarks, he referred to Yolanda Magee, a participant in the Future Now 
program who introduced the President; Jonathan Kemper, president and 
CEO, Commerce Bank; Mayor Emanuel Cleaver II of Kansas City, MO; and 
Gov. Mel Carnahan of Missouri.