[Weekly Compilation of Presidential Documents Volume 34, Number 22 (Monday, June 1, 1998)]
[Pages 961-963]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on the Federal Budget and an Exchange With Reporters

May 26, 1998

    The President. Thank you, Jack. And let me thank the other members 
of the economic team.
    This is of course very good news for the American people, as the 
chart shows. Now it's official that this year, well ahead of the most 
ambitious schedule, America has balanced the budget. In fact, as the 
chart shows, the achievement of the American people will not stop there; 
OMB predicts that the budget surplus will be $39 billion this year, the 
largest dollar surplus in our history, the largest surplus as a share of 
the economy in more than 40 years. America can now turn off the deficit 
clock and plug in the surplus clock.
    Given the speed with which our Nation has reached this remarkable 
milestone, it is perhaps all too easy to forget how hard it was and how 
far we've come. Just 6 years ago, because of the drag of deficits, our 
people were running in place, our Nation was falling behind, interest 
rates were high and

[[Page 962]]

so was unemployment. On the day I took office, the deficit was 
projected, this year, to be $350 billion.
    How did this greatest projected deficit in history turn into the 
greatest projected surplus? The old-fashioned way: We earned it. Our 
Nation earned it as a result of hard work by the American people and as 
the Vice President said, we earned it here in Washington with the help 
of two visionary actions in Congress. First, the courageous vote by the 
Democrats in 1993 in the midst of withering, extreme criticism that led 
to a cut in the deficit of 90 percent. And then the truly historic 
bipartisan balanced budget agreement passed by Congress last year that 
finished the job.
    I think it would also be wrong if I didn't mention, as Mr. Lew did, 
that the reinventing government efforts headed by the Vice President 
played a major role. We not only have the smallest Government since the 
Kennedy administration, with more than 300,000 fewer people, we also 
have savings in excess of $130 billion during the budget period as a 
result of those efforts. And Mr. Vice President, I am very grateful for 
what you have done.
    Now that we're about to have the first surplus since Neil Armstrong 
walked on the moon, we face a crucial decision about what to do with it. 
We can use these good times to honor those who put in a lifetime of work 
and prepared for the future retirement of the baby boomers by saving the 
Social Security system for generations to come. Or, we can give into the 
temptation in this election year to squander our surpluses the moment 
they start coming in.
    I think the choice is clear. We got to where we are today, with 4.3 
percent unemployment, more than 15 million new jobs, the lowest 
inflation in over 30 years, low interest rates, high growth, the highest 
homeownership in history, by doing what was right for the American 
economy over the long run. That is what we should do now. Social 
Security has been a cornerstone of our society for the last six decades, 
but the present system is not sustainable as we look forward to the full 
retirement of the baby boom generation. We have to protect it for the 
21st century.
    I was deeply heartened after I spoke about this at the State of the 
Union, that there were broad public statements of support from the 
leaders of both parties in both Houses in Congress about saving Social 
Security first. However, in recent weeks, senior Republican leaders in 
the House of Representatives seem to have retreated from that pledge. In 
this election year, some now want to raid the surplus for initiatives 
instead of preserving every penny of the surplus until we strengthen 
Social Security.
    We cannot ignore the long-term challenge, which we have a unique 
opportunity and responsibility to meet now, in favor of short-term 
schemes that, however popular in the moment, could compromise our 
future.
    Let me be clear: I will oppose any budget that fails to set aside 
the surpluses until we have strengthened Social Security for the 21st 
century. Let me also be clear that does not mean that in the future 
there could never be a tax cut. It simply means that we need to know how 
we're going to pay for the challenges of reforming Social Security. Once 
we know that--and we should know that sometime next--I would hope early 
next year because of the work being done this year--then we can have a 
debate about what ought to be done if there are funds that still are 
unaccounted for and unobligated.
    Today, our economy is the envy of the world. But the progress was 
not predestined nor is its future guaranteed. We cannot abandon the 
strategy of fiscal discipline and investments in the future which has 
brought us to this moment.
    Instead, we should work together across party lines to maintain 
fiscal responsibility, to save Social Security first, to prepare for an 
even brighter future. Again, let me thank the members of the economic 
team, those who are here and those who preceded them, for their work in 
this remarkable effort and every Member of Congress whose votes have 
contributed to it.
    Thank you very much.

Year 2000 Computer Bug

    Q. Mr. President, over the weekend, those same Republican leaders--I 
defer to Sarah.

[[Page 963]]

    Q. [Inaudible]--overcome the disruption which we face with the 
computers as millennium starts April 1st, 1999. That will disrupt all--
--
    President Clinton. Well, let me say that we're very concerned about 
that, Sarah [Sarah McClendon, McClendon News Service], and I asked John 
Koskinen, formerly a deputy at OMB and before that, a man who had a very 
distinguished career in the private sector, to come back into public 
service to supervise and coordinate our efforts to deal with the 
computer 2000 problem.
    It's not something that grabs the headlines everyday, but it is in 
fact a profound challenge, not only for the United States but for every 
country--which is every country now--that has extensive reliance on 
computers. And there are a lot of very complex questions. There are 
computer hookups where people at both ends have computers that can be 
programmed to move easily to 2000, but there's something in the 
connection in between which won't. So this is a very complicated 
problem.
    Interestingly enough, we discussed it in some detail at the G-8 
meeting in England recently, and I can tell you that we are working very 
hard on it. We're working very hard, first of all, to monitor the 
progress of every Government agency to see that they're ready, and some 
are doing better than others because some have more profound challenges 
than others. And secondly, we want to do what we can to be supportive of 
the private sector in the United States and their efforts to make these 
adjustments. But it is a very big problem.
    And I would urge--since you've asked the question, I would urge 
everyone in America who hears this exchange to make sure that they have 
done everything they can do within their own business sectors to be 
ready for this.
    And we also agreed, by the way, when I was in England, to work with 
other countries so that we can help share information and do everything 
we can do make sure that when the new millennium starts, it's happy 
event and not a cyberspace headache.

President's Trip to China

    Q. Mr. President, over the weekend Republican leaders called on you 
to postpone your trip to China, or at the very least, not have a 
welcoming ceremony in Tiananmen Square. What will you do, sir?
    The President. I think it would be a mistake to postpone the trip to 
China. Our partnership with China has succeeded in persuading the 
Chinese not to transfer missile technology and other dangerous materials 
to nations that we believe should not have them. We have seen some 
advances on the human and political rights fronts recently. We have 
worked closely with them in North Korea. Today, we are working with them 
to try to diffuse the tension and prevent a new nuclear race in South 
Asia.
    So I think we have a broad range of issues to deal with, and I think 
we have enough evidence now to justify the partnership that we've had. 
So I believe we ought to go forward.

Note: The President spoke at 11:32 a.m. in the Rose Garden at the White 
House. In his remarks, he referred to Jacob J. Lew, Acting Director, 
Office of Management and Budget.