[Weekly Compilation of Presidential Documents Volume 31, Number 2 (Monday, January 16, 1995)]
[Pages 31-33]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's Radio Address

January 7, 1995

    Good morning. Now that the holidays are over, it's back to business 
around the country and back to the people's business here in Washington.
    I'm looking forward to working with the new Congress. If they'll put 
politics as usual aside and put the American people and our future 
first, we've got a great opportunity to make progress on our mission: 
restoring the American dream of opportunity to all Americans and making 
sure we enter the next century, now just 5 years away, still the 
strongest and greatest nation in the world.
    Earlier this week, I met at the White House with Republican and 
Democratic congressional leaders. I challenged them to work with me and 
with each other, and they assured me that they are willing to cooperate.
    Many of the toughest decisions we made in the last 2 years are 
paying off for us now. We've reduced the deficit by $700 billion; that's 
$11,000 in less debt for every family in America. We've cut the Federal 
Government, eliminating over 100 programs, and there are already 100,000 
fewer people working for the Federal Government than when I took office.
    We've taken the savings and invested in the American people, in 
their education and training by expanding Head Start and apprenticeship 
programs and making college loans more affordable to 20 million people, 
providing the opportunity for national service to thousands of others.
    Just yesterday, we saw new evidence that this economic strategy that 
has been pursued with such discipline over the last 2 years is still 
working. Unemployment is now down to 5.4 percent from over 7 percent 
when I took office; 5.6 million new jobs have been created in the almost 
2 years since I became President. Nineteen ninety-four was the best year 
for job growth in a decade. And the vast majority of these new jobs are 
in the private sector. This was the first year that manufacturing jobs 
increased in every month since 1978. These new jobs are a testament to 
what can be accomplished when we combine the phenomenal ability and 
productivity of American businesses and workers with responsible and 
visionary political leadership willing to make tough choices. I will 
work with the new Congress to keep this recovery going. I will not go 
back to the failed policies of the past, which may have short-term 
attraction but will undermine our economic future.
    We've still got a lot more to do, things that we must do in the 
months ahead. Because for all the good statistics and all the 
legislative accomplishments of the last 2 years, the average American 
simply is not receiving enough benefit from this recovery. And 
Republicans and Democrats have to work together to change that.
    Here's the problem: For about 20 years, the incomes of Americans 
without college educations have been stagnant. They've been working 
harder for the same or less income; their benefits are less secure. What 
caused this? Technology and the global competition that we face mean 
that even when the economy is growing, inflation is low, and that's 
good. But wages often don't go up either, and that's not. There's a 
bigger educational premium than ever before. That is, workers who have 
more education are more likely to have higher incomes compared with 
workers without than at ever before in our history.
    What's the answer to this dilemma? First, we have to create more 
high-wage jobs. I'm heartened that in 1994 we had more high-wage jobs 
coming into our economy than in the previous 5 years combined. But 
second, and even more important, we have to get more education and 
training opportunities to all of our people and an increase to take-home 
income of middle class Americans.

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    That's why I want Congress to adopt what I call the middle class 
bill of rights, four new ideas to help middle class Americans build a 
future that lives up to their dreams. Like the GI bill of rights after 
World War II, the middle class bill of rights will help people go to 
college, raise their children, and build a future. Like the best of all 
Government programs, the middle class bill of rights offers opportunity, 
not a guarantee; it emphasizes personal responsibility; and it's open to 
all so that it can help build the strength of our entire American 
community.
    Now, anybody can say, ``I want to give you a tax cut,'' and make 
people very happy in the short run. What I want to do is cut taxes so 
that people can invest in the education of their children and in their 
own education in training and skills. That will raise incomes and lead 
to a stronger America. I want our people to have more than a quick fix. 
I want them to have the resources they need to fulfill their hopes and 
dreams over the long term.
    Here's what's in the middle class bill of rights: first, a tax 
deduction for the tuition costs, up to $10,000, of all education after 
high school, for college, community college, graduate school, 
professional school, vocational education, or worker training for 
families with incomes of $120,000 or less; second, for families with 
incomes of $75,000 a year or less, a tax cut phased up to $500 for every 
child under 13; third, for those with incomes of under $100,000, the 
ability to put $2,000 a year, tax-free, into an individual retirement 
account, but also the ability to withdraw that money, tax-free, not just 
for retirement but for education, for health care, for the care of an 
elderly parent, or to buy a first home. Finally, the middle class bill 
of rights will take the billions and billions of dollars Government now 
spends on a variety of job training programs and consolidate that money 
and instead make it directly available to working Americans, so that 
when people are eligible for the funds, because they lose a job or 
because they're training for a better job, they'll be able to get the 
cash and spend it where they want in the education program of their 
choosing.
    Every single penny of this middle class bill of rights proposal is 
paid for by dramatic cuts in Government that I've proposed. We have led 
the way to the largest 2-year deficit reduction in the history of our 
country, and I will not allow anyone to destroy this progress in 
reducing the deficit and to threaten our economic recovery. We've 
already seen that progress is possible in Washington this year. The 
House of Representatives this week voted to apply the laws that apply to 
the rest of America to Congress. That's long overdue. They did that last 
year, but the Senate didn't follow suit. I hope the Senate will follow 
suit now.
    But we have to do more to change politics as usual. We desperately 
need to pass lobbying reform. The lobbyists didn't go away with the last 
election, and we still believe that they shouldn't be allowed to give 
gifts, entertainments, or trips to lawmakers. Unfortunately this week, 
the new majority in Congress voted not to enact lobby reform--at least 
for now. It's not too late for them to do it, and I urge them to do it 
as quickly as possible. If we want middle class Americans to benefit 
from what we do, then the public interest, not those of special 
interest, should have the loudest voice in Washington.
    That's why I'll apply one simple test to every policy, every piece 
of legislation that comes before me: Does it advance the interests of 
average American families? Does it promote their values, build their 
future, increase their jobs and incomes? If it passes that test, I'll 
support it, and if it doesn't, I won't.
    If we work together to do the job the American people hired us to 
do, 1995 will be a terrific year for all Americans who work hard and 
play by the rules. We've seen for too long how people in Washington can 
obstruct progress for partisan gains. Now, sincerely, we must prove that 
we can work together to keep our country moving forward for America's 
gain.
    Thanks for listening.

Note: The President spoke at 10:06 a.m. from the Oval Office at the 
White House.

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