[Weekly Compilation of Presidential Documents Volume 31, Number 43 (Monday, October 30, 1995)]
[Pages 1944-1946]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Exchange With Reporters Following the Departure of President Soeharto of 
Indonesia

October 27, 1995

Gross Domestic Product Report

    Q. [Inaudible]--growth figures?
    The President. Well, the growth figures clearly show that the 
economy of the United States is moving, that we're on the right track. 
Today we have this very high growth figure. Just a few days ago we got 
the good news that the deficit has dropped dramatically now for 3 years 
in a row. We need to build on this. We do not need to reverse our 
economic course. That's the message I have for the Congress on the 
deficit reduction. We should balance the budget. We should continue to 
reduce the size of the Federal Government. But we need to do it in a 
prudent way that continues to invest in our people, in our education, 
our technology, for the health care of our seniors and the future of our 
children and our environment.
    We are moving in the right direction. This is the right direction. 
Why would we reverse course? We now have virtually 3 years of complete 
economic data showing that this policy that we have followed with great 
discipline and determination is good for the American people. So I hope 
we can stay right with it.

Budget Legislation

    Q. Mr. President, some liberal Democrats are afraid that as part of 
the end game, after the veto and after the real negotiations begin, they 
may be left alone out there, that you'll make a deal in the center 
somewhere with some moderate Republicans that would be enough to see a 
compromise go through.
    The President. Well, first of all, my goal would be to have a budget 
that would be--get a huge bipartisan vote. And my principles have been 
clear. If there are those even in my own party who do not favor a 
balanced budget at all, then there will come a time when we'll be on 
different sides of the fence on that.

[[Page 1945]]

    But I would ask you to remember, look how much the liberal Democrats 
have done to move to a dynamic center in the last 3 years: They voted 
for deficit reduction; they voted for a very tough crime bill; they 
voted for an education reform bill that had high standards and let us 
let all kinds of States and school districts get out from under Federal 
regulations. They are moving. And I think most of the traditional 
liberal Democrats are trying to create a dynamic future. I believe they 
will vote for a balanced budget if it's the right kind of one.
    You know, the Republicans' leaders say they have certain principles. 
And they are--what are those principles? Balance the budget, secure the 
Medicare Trust Fund--excuse me--balance the budget, secure the Medicare 
Trust Fund, have a tax cut, and have more authority being given to the 
States and the local governments. I have said I would embrace all those 
principles. I do believe a tax cut should be targeted toward 
childrearing and education and toward the broad middle class of America.
    But I have certain principles. What are my principles? Don't reduce 
Medicare and Medicaid more rapidly, more radically than the system can 
contain and that will be fair to our seniors and to others that depend 
upon the program. Don't cut investment in education, technology, and 
research when education, technology, and research will determine our 
economic growth. Don't destroy the environment or our ability to 
regulate and maintain the public health. Those things, it seems to me, 
are pretty clear principles.
    Now, I have already said, you know, the principles they say are 
important to them, they're important to me. I want to balance the 
budget. I'm determined to secure the Medicare Trust Fund. I want a 
reasonable tax cut targeted to the middle class, childrearing, and 
education. But I have these other principles on health care, on 
education, on the environment, on technology. And one other thing, I 
cannot in good conscience support a budget that actually raises taxes on 
people with incomes under $30,000 a year more than they're cut. That is 
wrong. It is wrong to raise taxes on working people with children at 
that income level.
    So if we can--I've already said these are my principles. And I 
believe these principles, if furthered and if there are some other 
adjustments made in the budget--if we don't do too much to harm rural 
America and the farming sector and a few other things--I think you could 
get a huge, huge bipartisan vote for a balanced budget. But we are a 
long way from there right now.

Fort Bragg Tragedy and GDP Report

    Q. [Inaudible]--this new figure what does it say that could 
possibly--[inaudible]--interest rates? And second of all, do you know 
anything about the shooting at Fort Bragg?
    The President. Let me answer the second question first. I received 
very early this morning a briefing. I know something about it, but I 
don't believe that I know enough, more than has been in the press, that 
I should comment at this moment. Obviously, I'm very concerned about it, 
but I don't think I should comment.
    Now, the growth figure--I don't believe the growth figure should 
raise interest rates because inflation is so low. Keep in mind, the 
inflation rate is hovering around 2 percent. So that's the extraordinary 
thing about this. The combined rates of unemployment and inflation are 
at a 25-year low. The danger in the economy is not inflation now. The 
problem in the economy, the challenge of the economy is it's a time of 
rapid change, so there are a lot of people who aren't getting raises, 
even though there's growth, and there are a lot people who are still 
worried about losing their jobs, even though there's growth.
    Those are the challenges we have to face. That's why I want the 
education tax deduction. That's why I want to increase investment in 
education, not cut it. That's why I want to raise the minimum wage. 
That's why I want the ``GI bill for America's workers'' to pass, so when 
people lose their jobs, they can immediately start new training 
programs.
    We should be focusing on the challenges this economy poses, not 
undermining its strengths. That's why this budget battle ultimately is 
important. It's our values and what works for the economy. Both are at 
issue here. We can get this done, but we've got to do what's right, and 
we've got to do what's right for the economy.

[[Page 1946]]

    Q. Mr. President--some of that growth was due to Government 
purchases. Do you think this growth pace can be maintained in the face 
of all the budget cutting that's going on?
    The President. Well, they say their budget will give us a slower 
growth for the next 7 years than we've averaged in the last 25. I find 
that hard to believe, but that's what they say. They say their budget 
will give us lower business profits for the next 7 years than we've 
averaged. I find that hard to believe, but that's what they say. They 
say their budget will give us higher inflation in health care costs even 
though they claim they're going to lower health care inflation.
    There are a lot of things about their budget I don't agree with. But 
if we cut Government expenditures, obviously, a lot of Government 
expenditures are with private contractors. If we--for example, if we 
build a new airplane, most of the people who build the airplane are--
they're private sector employees. If we build a building, the people who 
build the building are private sector employees. But if we do this in a 
disciplined way, and we keep our investments up and focus on shrinking 
Government consumption--that is, lowering the programs that are of 
marginal benefit or getting rid of them, and slowly downsizing the 
Government, although we've been in a rapid downsize period--and we keep 
investing in America, then the activity in the private sector with 
growth will more than overcome the shrinking of the public sector. But 
we have to do it in a disciplined way.
    That's another thing that bothers me about this health care 
business. I have been talking about the need to reduce health care 
inflation since the day I became President. I've been talking about the 
need to give more options for managed care since the day I became 
President and since long before I became President. But you cannot just 
say, ``Well, we're going to take $450 billion out of it, even though we 
don't know what's going to happen.'' It is too much. It is too extreme. 
It is not necessary.
    So the thing for us to do is to ultimately--what my goal is, to 
ultimately come out with a budget which satisfies their stated 
principles, which I have embraced, but which honors my stated 
principles, which they have yet to embrace. And they are--those, the 
stated principles that I've put out are more important for standing up 
for what's right for America, number one, and more important for growing 
our economy, number two, than what's in their budget.
    And so we're going to keep working on this, but I am not going to 
bend on my principles. I cannot, and it's not good for America. This 
program--now we have 3 years of evidence. It's not only morally right, 
it is working for the country, and we need to keep going in this 
direction.
    Thank you.

Note: The exchange began at 11 a.m. at the West Wing Portico at the 
White House. A tape was not available for verification of the content of 
this exchange.