[Weekly Compilation of Presidential Documents Volume 34, Number 44 (Monday, November 2, 1998)]
[Pages 2184-2186]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on Departure for New York City and an Exchange With Reporters

October 30, 1998

National and International Economy

    The President. Good morning. I want to say a few words today about 
the growth of our economy and important new steps we're taking to 
strengthen that growth as we move toward the new century. Six years ago, 
our economy lagged behind the rest of the world, so we changed course, 
with a new strategy for economic growth founded on fiscal discipline and 
lower interest rates. It has worked.
    It has helped to produce an American economic renaissance with low 
inflation, low unemployment, low welfare rolls, rising wages, the 
highest rate of homeownership in history, the first balanced budget 
since Neil Armstrong walked on the Moon, and the smallest Federal 
Government since John Glenn orbited the Earth.
    This morning's economic report shows that our economy is continuing 
to grow in a strong manner, at a solid 3.3 percent. It is continuing to 
expand opportunity, to create wealth, to lift the hopes of working 
families. In the face of worldwide economic turmoil, our economy remains 
the strongest in a generation. But to keep it going we must stay with 
the strategy that created the conditions of this enduring economic 
expansion, and we must address the challenges of the global economy. I'd 
like to say a word about both.
    First, we must maintain our fiscal discipline. I have insisted we 
preserve our hard-won surplus until a plan is in place to strengthen 
Social Security. We stopped the Republican majority in the House from 
squandering the surplus in an election-year

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tax plan. They haven't given up, however. House Republican leaders have 
reaffirmed their desire to spend the surplus before we have a plan in 
place to save Social Security. And the Republican leader in the Senate 
now says he may not even work with me on saving Social Security.
    On Tuesday the American people will choose a Congress that will 
decide whether and how to save Social Security for the 21st century. I 
believe the American people need a Congress that is 100 percent 
committed to preserving that surplus until we save Social Security 
first.
    Second, to strengthen our economic growth, we must continue to 
invest in and improve the quality of our people's education. The budget 
I signed last week invests in after-school programs and makes a strong 
down payment on 100,000 teachers to lower class size in the early grades 
to an average of 18. But the Congress refused to build or modernize 
5,000 schools. I believe that was a mistake as well.
    We need a new Congress to correct that error and modernize our 
schools. If we're going to have more teachers with more students in 
smaller classes, they have to have someplace to meet.
    A stronger American economy also depends upon a stronger 
international economy. Growth at home increasingly depends upon growth 
abroad. Our economy increasingly depends upon exports, and many, many of 
our exports go to emerging markets. Those markets now are faltering. A 
full quarter of the world's markets, the world's population, now live in 
countries with declining or negative economic growth. This presents to 
us the biggest financial challenge in a half century.
    Over the last year we have pursued a comprehensive strategy to fight 
the financial crisis and protect American jobs at home as well. Last 
month I outlined a set of specific actions to spur global growth. In the 
weeks since, we've been working with our G-7 partners and with those in 
the emerging markets to make significant progress toward that goal.
    Think what's happened in the last month. Japan has committed 
substantial resources to repair its banking system. The European Union 
has joined the G-7 in recognizing that the balance of risk has shifted 
and that, above all, now, we must spur growth. The U.S., Japan, Canada, 
and several European nations have cut interest rates. America has met 
its obligations to the International Monetary Fund. This week Brazil 
announced a program to tackle its fiscal problems, and President Cardoso 
has assured me that he will implement the program swiftly.
    To build on that progress, Prime Minister Blair of Great Britain and 
I have been working to rally support for several new measures to help 
strengthen the international community's ability to keep financial 
turmoil at bay. Secretary Rubin and Chairman Greenspan have been deeply 
engaged with their counterparts in the effort. And over the past week 
I've been speaking to other G-7 leaders about it.
    Today I'm pleased to report that the world's leading economies have 
linked arms to contain the financial turmoil that threatened growth not 
only in emerging markets but in all markets of the world. The leaders of 
the major industrial economies have taken the following steps. This 
morning they've released a statement outlining our common agenda.
    First, we have agreed to establish a new precautionary line of 
credit, anchored in the IMF, to help countries with sound economic 
policies ward off the global financial crisis in the first place. With 
substantial new resources at the IMF, this line of credit gives us a 
powerful new tool that can be used when it will do the most good at the 
lowest cost, before the trouble starts.
    Second, we have also agreed to establish a new World Bank emergency 
fund to provide support in times of crisis to the most vulnerable 
members of society, and to encourage the World Bank to leverage private 
sector investments in countries now affected by the crisis.
    And finally, even as we act to contain the crisis, we are building a 
modern framework for the global markets of the 21st century. Today we 
released detailed plans for greater openness and stronger standards for 
finance in the international marketplace. And we have agreed to ask our 
finance ministers to make new and very concrete recommendations to help 
to tame the excessive volatility

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in financial markets that can destroy hope and diminish wealth.
    These steps are very, very important. Over the long run, if 
America's economy is to continue to grow, the economies of our trading 
partners must continue to grow. In a larger sense, if America's devotion 
to freedom and openness is to be met with success, we must put a human 
face on the global economy for the most vulnerable people in the 
emerging countries when they face hard times.
    So I feel quite good about what my fellow G-7 leaders and others 
have done here. I thank them for their support. I thank especially Prime 
Minister Blair for his support.

Erskine Bowles' Departure

    Now, let me say, finally, for all of us here at the White House, 
this is not just a day of good economic news; it is personally a day of 
sad news because this is Erskine Bowles' last day as Chief of Staff. 
Sometime this afternoon, while I am in New York working, he is going 
home to North Carolina.
    I want to say again how much I appreciate the indispensable role he 
has played in balancing the budget and developing sound economic 
policies, in improving our commitment to education in ways that will 
affect millions and millions of schoolchildren, and in his conviction 
that we were doing the right thing to pursue our race initiative.
    Finally, he has been a marvelous role model for the young people who 
worked at the White House and for the not so young as well, putting us 
together into a team, getting everyone to work together, thinking every 
day about what good can come from our common efforts.
    As all of you know, he is a very close personal friend of mine. I 
will miss him very much. But most of all today, I want to acknowledge 
his contributions to the people of the United States.
    Thank you very much.

1998 Elections

    Q. Mr. President, do you think voter turnout will be affected by the 
impeachment issue?
    The President. The answer to your question is, I don't know. I know 
that this is no ordinary election, no ordinary time. What is at issue 
are big things that will affect every American and every American 
family's children. What is at issue is the future of Social Security, 
whether we will have a Patients' Bill of Rights for the over 160 million 
people in managed care plans, whether we will continue to advance the 
cause of education by building and modernizing our schools, whether we 
will continue the path of reform, raising the minimum wage, passing 
campaign finance reform, protecting our children from the dangers of 
tobacco. Those are the big issues.
    I hope every American will go and vote and vote in good conscience 
and vote on what is important to this country and its future. All I can 
do is tell the American people, I know this is no ordinary time, no 
ordinary election, and they need to vote. I have no prediction about 
what the turnout will be, but I am confident that if people understand 
the stakes, it will be quite impressive.
    Thank you.

Note: The President spoke at 11:16 a.m. at the South Portico at the 
White House. In his remarks, he referred to President Fernando Cardoso 
of Brazil and Prime Minister Tony Blair of Great Britain.