[Weekly Compilation of Presidential Documents Volume 33, Number 31 (Monday, August 4, 1997)]
[Pages 1168-1170]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on Balanced Budget Legislation and an Exchange With Reporters

August 1, 1997

    The President. Good morning. Today Congress will send to me for my 
signature the first balanced budget in a generation. This budget will 
help millions of families to raise their children, educate them, and 
provide health care for them. It is an investment in the hopes and 
dreams of the American

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middle class, and I look forward to signing it.
    This morning we have further evidence that the strategy of balancing 
the budget while investing in our people and selling more American 
products around the world has helped to produce sustained prosperity for 
Americans. The new figures indicate 4.8 percent unemployment in July and 
316,000 new jobs. Our economy is growing with the lowest unemployment in 
24 years.
    This economic rebirth is due to many things: first and foremost, the 
hard work and productivity of American businesses and American workers, 
the spirit of American entrepreneurs, the diligence of the Federal 
Reserve. But there is no doubt that the economic strategy we put in 
place in 1993 created the conditions for the extraordinary private 
sector growth we have all witnessed.
    The day I took office, the deficit was $290 billion; today, even 
before the budget agreement, it had been reduced by 80 percent. Four 
straight years of deficit cuts have begun to put our fiscal house in 
order. The low interest rates that have resulted have produced the 
economic expansion as well as real benefits for ordinary Americans: 
lower car payments, lower mortgage rates, lower credit card rates. It 
also made possible--that 1993 agreement did--this budget agreement that 
has spending cuts and tax cuts and very large increases in investments 
in education and health care.
    This year we had a choice: whether to succumb to gridlock and 
undercut confidence in our economy or continue our successful strategy 
into the 21st century. I am pleased that very large bipartisan 
majorities in both chambers, including over 75 percent of the Democrats 
on all the votes, have voted to continue our economic approach and keep 
our prosperity going. There are many reasons why I believe it will 
strengthen America, but let me just mention one of them as I close.
    For years, as our economy has gathered momentum, we've looked for 
ways to make sure all Americans reap the rewards of that prosperity. The 
tax cuts in this balanced budget will directly and immediately improve 
the standard of living of millions of middle class families. For a 
typical middle class family with two children, the child tax credit 
alone amounts to a thousand-dollar raise in take-home pay. The college 
tax cuts will help families even more. And by encouraging more Americans 
to get the education they need, these education tax cuts will boost the 
long-term earning potential of all Americans who use them and, 
therefore, the long-term strength and wealth of the American economy.
    Let me make one other point. This balanced budget will close a 
chapter in American history, years--decades, in fact--when our people 
doubted whether Government could work for them and

questioned whether our Nation could set and meet goals. Over the past 4 
years, through tough, persistent, patient effort, we have made unparalleled 
progress, rolling back the crime rate, reducing welfare rolls by historic 
numbers, and now finishing the job of balancing the budget. All Americans 
can be proud of what has been accomplished.

    But let me say, too, that we know there are still challenges we have 
to meet to fully prepare our people for the 21st century. We must move 
ahead now to set national education standards and test our children on 
whether they're meeting them; to make further progress in the work of 
racial reconciliation; to open more foreign markets to American 
products; to move on our environmental problems; and finally, to address 
the very real challenges of long-term entitlement reform. I look forward 
to dealing with all these issues.
    If we follow the path that has proven so successful in this balanced 
budget process, working to find common ground on common challenges, then 
I have no doubt that we will move forward together into the 21st 
century.
    Thank you very much.

Terrorist Attack in Jerusalem and Arrests in New York City

    Q. Is there a connection between Hamas and the New York arrests? Is 
there a connection there?
    Q. Mr. President, there seems to be some confusion about whether or 
not you think this is a good time to send Secretary of State Madeleine 
Albright on her first trip to the Middle East. Could you tell us where 
that possibility stands and the level of cooperation between the 
Israelis and the Palestinian Au

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thority? And if you could, what, if any, connection to the Middle East--
to the Jerusalem bombing--occurred in New York yesterday with this 
foiled bombing plot?
    The President. Let me--Mr. Plante, [Bill Plante, CBS News] asked 
that question, and you asked that. Let me try to answer both of them. I 
have to go meet with President Aliyev of Azerbaijan, but I will try to 
answer them both quickly.
    First of all, when the period of mourning is over, I will send 
Dennis Ross to the Middle East, to meet with the leaders there, with our 
latest ideas. I think it was appropriate to delay that in view of the 
terrible loss of life from the bombing. And then we will see where we 
are. I have said all along that I would send the Secretary of State to 
the Middle East at the appropriate time. But I want Mr. Ross to go there 
to do the work I am sending him to do to get the reaction of the 
leaders, and then we'll make a decision.
    Secondly, with regard to the arrests in New York yesterday, first of 
all I'd like to commend the law enforcement officials, both the New York 
City officials and the Federal officials who were participating in it; 
and secondly say that I cannot comment and cannot reach a final 
conclusion yet because I haven't received a report of the direct 
investigation done, including the interrogation of the people who were 
arrested.
    But I will say that we have worked very hard in this country to 
increase our capacity to deal with terrorism. It is something we take 
very seriously, and we will continue to do that. We will work very hard. 
But I think it's important not to reach conclusions before we have 
ironclad evidence to support them. The main thing we need to do is to 
thank the law enforcement officials for what they did and to continue to 
heighten our vigilance and our capacity to deal with such matters.
    Thank you very much.

Note: The President spoke at 11:12 a.m. in the Rose Garden at the White 
House. In his remarks, he referred to President Heydar Aliyev of 
Azerbaijan.