The addresses are separated by three asterisks: ***

Dates of addresses by George H. W. Bush in this eBook: January 31, 1990 January 29, 1991 January 28, 1992

***

State of the Union AddressGeorge H. W. BushJanuary 31, 1990

Tonight, I come not to speak about the "State of the Government", not todetail every new initiative we plan for the coming year, nor describe everyline in the budget. I'm here to speak to you and to the American peopleabout the State of the Union about our world, the changes we've seen, thechallenges we face. And what that means for America. 

There are singular moments in history, dates that divide all that goesbefore from all that comes after. And many of us in this chamber have livedmuch of our lives in a world whose fundamental features were defined in1945. And the events of that year decreed the shape of nations, the pace ofprogress, freedom or oppression for millions of people around the world. 

Nineteen Forty-Five provided the common frame of reference the compasspoints of the postwar era we've relied upon to understand ourselves. Andthat was our world until now. The events of the year just ended, theRevolution of '89, have been a chain reaction, changes so striking that itmarks the beginning of a new era in the world's affairs. 

Think back think back just twelve short months ago to the world we knew as1989 began. 

One year, one year ago the people of Panama lived in fear under the thumbof a dictator. Today democracy is restored. Panama is free. 

"Operation Just Cause" has achieved its objective. And the number ofmilitary personel in Panama is now very close to what it was before theoperation began. And tonight I am announcing that before the end ofFebruary the additional numbers of American troops, the brave men and womenof our armed forces who made this mission a success, will be back home. 

A year ago in Poland, Lech Walesa declared he was ready to open a dialoguewith the Communist rulers of that country. And today, with the future of afree Poland in their own hands, members of Solidarity lead the Polishgovernment. 

And a year ago, freedom's playwright, Vaclav Havel, languished as aprisoner in Prague. And today it's Vaclav Havel, President ofCzechoslovakia. 

And one year ago Erich Honecker of East Germany claimed history as hisguide. He predicted the Berlin Wall would last another hundred years. Andtoday, less than one year later, it's the wall that's history. 

Remarkable events, remarkable events, events that fulfill the long-heldhopes of the American people. Events that validate the longstanding goalsof American policy, a policy based upon a single shining principle: thecause of freedom. 

America, not just the nation, but an idea alive in the minds of the people, everywhere. As this new world takes shape, America stands at the center ofa widening circle of freedom, today, tomorrow and into the next century. 

Our nation is the enduring dream of every immigrant who ever set foot onthese shores, and the millions still struggling to be free. This nation, this idea called America was and always will be a new world, our newworld. 

At a workers' rally in a place called Branik on the outskirts of Prague theidea called America is alive. A worker, dressed in grimy overalls, rises tospeak at the factory gates. And he begins his speech to his fellow citizenswith these words, words of a distant revolution: "We hold these truths tobe self-evident. That all men are created equal, that they are endowed bytheir creator with certain unalienable rights, and that among these arelife, liberty and the pursuit of happiness. " It's no secret here at homefreedom's door opened long ago. The cornerstones of this free society havealready been set in place: democracy, competition, opportunity, privateinvestment, stewardship, and of course, leadership. 

And our challenge today is to take this democratic system of ours, a systemsecond to none, and make it better:

A better America where there's a job for whoever wants one;

Where women working outside the home can be confident their children arein safe and loving care, and where Government works to expand childalternatives for parents. 

Where we reconcile the needs of a clean environment and a strong economy. 

Where "Made in the USA" is recognized around the world as the symbol ofquality and progress, And where every one of us enjoys the same opportunities to live, to workand to contribute to society. And where, for the first time, the Americanmainstream includes all of our disabled citizens. 

Where everyone has a roof over his head, and where the homeless get thehelp they need to live in dignity. 

Where our schools challenge and support our kids and our teachers, andevery one of them makes the grade, Where every street, every city, every school and every child is drug-free. 

And finally, and finally, where no American is forgotten. Our hearts go outto our hostages, our hostages who are ceaselessly in our minds and in ourefforts. That's part of the future we want to see, the future we can makefor ourselves. But dreams alone won't get us there. We need to extend ourhorizon, to commit to the long view. And our mission for the future startstoday. 

In the tough competitive markets around the world, America faces the greatchallenges and great opportunities. And we know that we can succeed in theglobal economic arena of the 90's. But to meet that challenge we must makesome fundamental changes, some crucial investments in ourselves. 

Yes, we are going to invest in America. This Administration is determinedto encourage the creation of capital, capital of all kinds. Physicalcapital: everything from our farms and factories to our workshops andproduction lines, all that is needed to produce and deliver quality goodsand quality services. Intellectual, intellectual capital: the source ofideas that spark tomorrow's products. And of course human capital: thetalented work force that we'll need to compete in the global market. 

And let me tell you, if we ignore human capital, if we lose the spirit ofAmerican ingenuity, the sprit that is the hallmark of the AMERICAN worker, that would be bad. The American worker is the most productive worker in theworld. 

We need to save more. We need to expand the pool of capital for newinvestments that mean more jobs and more growth. And that's the idea behindthe new initiative I call the Family Savings Plan, which I will send toCongress tomorrow. 

We need to cut the tax on capital gains, encourage, encourage risk-takers, especially those in small businesses, to take those steps that translateinto economic reward, jobs, and a better life for all of us. 

We'll do what it takes to invest in America's future. The budget commitmentis there. The money is there. It's there for research and development, Rand D, a record high. It's there for our housing initiative, hope, H-O-P-E, to help everyone from first-time homebuyers to the homeless. The money'sthere to keep our kids drug-free, 70 percent more than when I took officein 1989. It's there for space exploration, and its there for education, another record high. 

And one more, and one more thing. Last fall at the education summit, thegovernors and I agreed to look for ways to help make sure that our kids areready to learn the very first day they walk into the classroom. And I'vemade good on that commitment by proposing a record increase in funds, anextra half billion dollars, for something near and dear to all of us: HeadStart. 

Education is the one investment that means more for our future, because itmeans the most for our children. Real improvement in our schools is notsimply a matter of spending more. It's a matter of asking more, expectingmore, of our schools, our teachers, of our kids, of our parents and ofourselves. And that's why tonight, and that's why tonight, I am announcingAmerica's education goals, goals developed with enormous cooperation fromthe nation's governors. And if I might I'd like to say I'm very pleasedthat Governor Gardner and Governor Clinton, Governor Branstad, GovernorCampbell, all of whom were very key in these discussion, thesedeliberations, are with us here tonight. 

By the, by the year 2000, every child must start school ready to learn. TheUnited States must increase the high school graduation rate to no less than90 percent. And we are going to make sure our schools' diplomas meansomething. In critical subjects, at the fourth, eighth, and 12th grades, wemust assess our students' performance. 

By the, by the year 2000 U. S. Students must be the first in the world inmath and science achievement. Every American adult must be a skilled, literate worker and citizen. Every school must offer the kind ofdisciplined environment that makes it possible for our kids to learn. Andevery school in America must be drug-free. 

Ambitious aims? Of course. Easy to do? Far from it. But the future's atstake. The nation will not accept anything less than excellence ineducation. 

These investments will help keep America competitive. And I know this aboutthe American people: we welcome competition. We'll match our ingenuity, ourenergy, our experience, and technology our spirit and enterprise againstanyone. But let the competition be free, but let it also be fair. Americais ready. 

Since we really mean it, and since we're serious about being ready to meetour challenge, we're getting our own house in order. We have made realprogress. Seven years ago, the Federal deficit was 6 percent of our grossnational product, 6 percent. In the new budget I sent up two days ago thedeficit is down to 1 percent of GNP. 

That budget brings Federal spending under control. It meets theGramm-Rudman target. It brings the deficit down further. And balances thebudget by 1993, with no new taxes. 

And let me tell you, there's still more than enough Federal spending. Formost of us, $1. 2 trillion is still a lot of money. 

And once the budget is balanced, we can operate the way every family mustwhen it has bills to pay. We won't leave it to our children andgrandchildren. Once it's balanced, we will start paying off the nationaldebt. 

And there's something more, and there's something more we owe thegenerations of the future: stewardship, the safekeeping of America'sprecious environmental inheritance. 

As just one sign of how serious we are, we will elevate the EnvironmentalProtection Agency to Cabinet rank. Not, not more bureaucracy, not more redtape, but the certainty that here at home, and especially in our dealingswith other nations, environmental issues have the status they deserve. 

This year's budget provides over $2 billion in new spending to protect ourenvironment, with over $1 billion for global change research, and a newinitiative I call America the Beautiful to expand our national parks andwildlife preserves and improve recreational facilities on public lands. 

And something else, something that will help keep this country clean, fromour forest land to the inner cities, and keep America beautiful forgenerations to come, the money to plant a billion trees a year. 

And tonight, and tonight let me say again to all the members of theCongress, the American people did not send us here to bicker. There is workto do, and they sent us here to get it done. And once again, in the spiritof cooperation I offer my hand to all of you. And let's work together to dothe will of the people--clean air, child care, the educational excellenceact, crime and drugs. It's time to act. The farm bill, transportationpolicy, product liability reform, enterprise zones. It's time to acttogether. 

And there's one thing I hope we can agree on. It's about our commitments. And I'm talking about Social Security. 

To every American out there on Social Security, to every, every Americansupporting that system today, and to everyone counting on it when theyretire, we made a promise to you, and we are going to keep it. 

We, we rescued the system in 1983 and it's sound again, bipartisanarrangement. Our budget fully funds today's benefits and it assures thatfuture benefits will be funded as well. And the last thing we need to do ismess around with Social Security. 

There's one more problem we need to address. We must give carefulconsideration to the recommendations of the health care studies under waynow. And that's why tonight, I am asking Dr. Sullivan, Lou Sullivan, Secretary of Health and Human Services, to lead a Domestic Policy Councilreview of recommendations on the quality, accessibility and cost of ournation's health care system. I am committed to bring the staggering costsof health care under control. 

The State of the Government does indeed depend on many of us in this verychamber. But the State of the Union depends on all Americans. We mustmaintain the democratic decency that makes a nation out of millions ofindividuals. And I've been appalled at the recent mail bombings across thiscountry. Every one of us must confront and condemn racism, anti-Semitism, bigotry and hate. Not next week, not tomorrow, but right now. Every singleone of us. 

The State of the Union depends on whether we help our neighbor, claim theproblems of our community as our own. We've got to step forward whenthere's trouble, lend a hand, be what I call a point of light to a strangerin need. We've got to take the time after a busy day to sit down and readwith our kids, help them with their homework, pass along the values we hadas children. And that's how we sustain the State of the Union. 

Every effort is important. It all adds up. It's doing the things that givedemocracy meaning. It all adds up to who we are and who we will be. 

And let me say, that so long as we remember the American idea, so long aswe live up to the American ideal, the State of the Union will remain soundand strong. 

And to those who worry that we've lost our way, well, I want you to listento parts of a letter written by James Markwell, Pvt. 1st Class JamesMarkwell, a 20-year-old Army medic to the First Battalion, 75th Rangers. It's dated Dec. 18, the day before our armed forces went into action inPanama. It's a letter servicemen write--and hope will never, ever be sent. And sadly, Private Markwell's mother did receive this letter. She passed iton to me out there in Cincinnati. 

And here is some of what he wrote: "I've never been afraid of death, but Iknow he is waiting at the corner. . . I've been trained to kill and to save, and so has everyone else. I am frightened of what lays beyond the fog, andyet. . . Do not mourn for me. Revel in the life that I have died to giveyou. . . But most of all, don't forget that the Army was my choice. Somethingthat I wanted to do. Remember I joined the Army to serve my country andinure that you are free to do what you want and to live your livesfreely. "

Let me add that Private Markwell was among the first to see battle inPanama, and among the first to fall. But he knew what he believed in. Hecarried the idea we call America in his heart. 

I began tonight speaking about the changes we've seen this past year. Thereis a new world of challenges and opportunities before us. And there is aneed for leadership that only America can provide. 

Nearly 40 years ago, in his last address to the Congress, President HarryTruman predicted such a time would come. He said, "As our world growsstronger, more united, more attractive to men on both sides of the IronCurtain, then inevitably there will come a time of change within theCommunist world. " Today, that change is taking place. 

For more than 40 years, America and its allies held Communism in check andinsured that democracy would continue to exist. And today, with Communismcrumbling, our aim must be to insure democracy's advance, to take the leadin forging peace and freedom's best hope, a great and growing commonwealthof free nations. 

And to the Congress and to all Americans, I say it is time to acclaim a newconsensus at home and abroad, a common vision of the peaceful world we wantto see. 

Here in our own hemisphere it is time for all the people of the Americas, North and South, to live in freedom. 

In the Far East and Africa, it's time for the full flowering of freegovernments and free markets that have served the engine of progress. 

It is time to offer our hand to the emerging democracies of Eastern Europeso that continent, for too long a continent divided, can see a future wholeand free. 

It's time to build on our new relationship with the Soviet Union, toendorse and encourage a peaceful process of internal change towarddemocracy and economic opportunity. 

We are in a period of great transition, great hope, and yet greatuncertainty. We recognize that the Soviet military threat in Europe isdiminishing, but we see little change in Soviet strategic modernization. And, therefore, we must sustain our own strategic offense modernization andthe Strategic Defense Initiative. 

But the time is right to move forward on a conventional arms controlagreement to move us to more appropriate levels of military forces inEurope, a coherent defense program that insures the U. S. Will continue tobe a catalyst for peaceful change in Europe. And I've consulted withleaders of NATO. In fact I spoke by phone with President Gorbachev justtoday. 

And I agree with our European allies that an American military presence inEurope is essential and that it should not be solely tied to the Sovietmilitary presence in Eastern Europe. 

But our troop levels can still be lower. And so tonight I am announcing amajor new step for a further reduction in U. S. And Soviet manpower inCentral and Eastern Europe to 195, 000 on each side. 

This number, this number, this level, reflects the advice of our seniormilitary advisers. It's designed to protect American and European interestsand sustain NATO's defense strategy. A swift conclusion to our arms controltalks--conventional, chemical and strategic--must now be our goal. Andthat time has come. 

Still, we must recognize an unfortunate fact: in many regions of the worldtonight the reality is conflict, not peace. Enduring animosities andopposing interests remain. And thus the cause of peace must be served by anAmerica strong enough and sure enough to defend our interests and ourideals. It's this American idea that for the past four decades helpedinspire the Revolution of '89. 

And here at home, and in the world, there is history in the making, andhistory to be made. Six months ago, early in this season of change, I stoodat the gates of the Gdansk shipyard in Poland at the monument to the fallenworkers of Solidarity. It's a monument of simple majesty. Three tallcrosses rise up from the stones, and atop each cross, an anchor, an ancientsymbol of hope. 

The anchor in our world today is freedom. Holding us steady in times ofchange, a symbol of hope to all the world. And freedom is at the very heartof the idea that is America. Giving life to the idea depends on every oneof us. Our anchor has always been faith and family. 

In the last few days of this past monumentous year, our family was blessedonce more, celebrating the joy of life when a little boy became our 12thgrandchild. When I held the little guy for the first time, the troubles athome and abroad seemed manageable, and totally in perspective. 

And now I know, I know you're probably thinking, Well, that's just agrandfather talking. 

Well, maybe you're right. But I've met a lot of children this past yearacross this country, as all of you have. Everywhere from the Far East toEastern Europe. All kids are unique. Yet, all kids are alike. The buddingyoung environmentalist I met this month, who joined me in exploring theFlorida Everglades. The Little Leaguers I played catch with in Poland, ready to go from Warsaw to the World Series. And even the kids who are illor alone--and God bless those boarder babies, born addicted to drugs andAIDS--coping with problems no child should have to face. But, you know, when it comes to hope and the future, every kid is the same: full ofdreams, ready to take on the world, all special because they are the veryfuture of freedom. And to them belongs this new world I've been speakingabout. 

And so tonight, I'm going to ask something of every one of you. Now let mestart with my generation, with the grandparents out there. You are ourliving link with the past. Tell your grandchildren the story of struggleswaged at home and abroad, of sacrifices freely made for freedom's sake. Andtell them your own story as well, because every American has a story totell. 

And parents, your children look to you for direction and guidance. Tellthem of faith and family. Tell them we are one nation under God. Teach themthat of all the many gifts they can receive, liberty is their most preciouslegacy. And of all the gifts they can give, the greatest, the greatest ishelping others. 

And to the children and young people out there tonight, with you rests ourhope, all that America will mean in the years and decades ahead. Fix yourvision on a new century, your century, on dreams we cannot see, on thedestiny that is yours and yours alone. 

And finally, let all Americans, all of us here in this chamber, thesymbolic center of democracy, affirm our allegiance to this idea we callAmerica. And let us remember that the State of the Union depends upon eachand every one of us. 

God bless all of you. And may God bless this great nation, the UnitedStates of America. 

***

State of the Union AddressGeorge H. W. BushJanuary 29, 1991

Mr. President, Mr. Speaker, members of the United States Congress. 

I come to this house of the people to speak to you and all Americans, certain we stand at a defining hour. 

Halfway around the world, we are engaged in a great struggle in the skiesand on the seas and sands. We know why we're there. We are Americans--partof something larger than ourselves. 

For two centuries we've done the hard work of freedom. And tonight we leadthe world in facing down a threat to decency and humanity. 

What is at stake is more than one small country, it is a big idea--a newworld order, where diverse nations are drawn together in common cause toachieve the universal aspirations of mankind: peace and security, freedom, and the rule of law. Such is a world worthy of our struggle, and worthy ofour children's future. 

The community of nations has resolutely gathered to condemn and repellawless aggression. Saddam Hussein's unprovoked invasion--his ruthless, systematic rape of a peaceful neighbor--violated everything the communityof nations holds dear. The world has said this aggression would not stand, and it will not stand. 

Together, we have resisted the trap of appeasement, cynicism and isolationthat gives temptation to tyrants. The world has answered Saddam's invasionwith 12 United Nations resolutions, starting with a demand for Iraq'simmediate and unconditional withdrawal, and backed up by forces from 28countries of six continents. With few exceptions, the world now stands asone. 

The end of the cold war has been a victory for all humanity. A year and ahalf ago, in Germany, I said our goal was a Europe whole and free. Tonight, Germany is united. Europe has become whole and free, and America'sleadership was instrumental in making it possible. 

The principle that has guided us is simple: our objective is to help theBaltic peoples achieve their aspirations, not to punish the Soviet Union. In our recent discussions with the Soviet leadership we have been givenrepresentations, which, if fulfilled, would result in the withdrawal ofsome Soviet forces, a re-opening of dialogue with the republics, and a moveaway from violence. 

We will watch carefully as the situation develops. And we will maintain ourcontact with the Soviet leadership to encourage continued commitment todemocratization and reform. 

If it is possible, I want to continue to build a lasting basis forU. S. -Soviet cooperation, for a more peaceful future for all mankind. 

The triumph of democratic ideas in Eastern Europe and Latin America, andthe continuing struggle for freedom elsewhere around the world all confirmthe wisdom of our nation's founders. 

Tonight, we work to achieve another victory, a victory over tyranny andsavage aggression. 

We in this Union enter the last decade of the 20th Century thankful for allour blessings, steadfast in our purpose, aware of our difficulties andresponsive to our duties at home and around the world. 

For two centuries, America has served the world as an inspiring example offreedom and democracy. For generations, America has led the struggle topreserve and extend the blessings of liberty. And today, in a rapidlychanging world, American leadership is indispensable. Americans know thatleadership brings burdens, and requires sacrifice. 

But we also know why the hopes of humanity turn to us. We are Americans; wehave a unique responsibility to do the hard work of freedom. And when wedo, freedom works. 

The conviction and courage we see in the Persian Gulf today is simply theAmerican character in action. The indomitable spirit that is contributingto this victory for world peace and justice is the same spirit that givesus the power and the potential to meet our challenges at home. 

We are resolute and resourceful. If we can selflessly confront evil for thesake of good in a land so far away, then surely we can make this land allit should be. 

If anyone tells you America's best days are behind her, they're looking thewrong way. 

Tonight, I come before this house, and the American people, with an appealfor renewal. This is not merely a call for new government initiatives, itis a call for new initiative in government, in our communities, and fromevery American--to prepare for the next American century. 

America has always led by example. So who among us will set this example?Which of our citizens will lead us in this next American century? Everyonewho steps forward today, to get one addict off drugs; to convince onetroubled teen-ager not to give up on life; to comfort one AIDS patient; tohelp one hungry child. 

We have within our reach the promise of renewed America. We can findmeaning and reward by serving some purpose higher than ourselves--ashining purpose, the illumination of a thousand points of light. It isexpressed by all who know the irresistible force of a child's hand, of afriend who stands by you and stays there--a volunteer's generous gesture, an idea that is simply right. 

The problems before us may be different, but the key to solving themremains the same: it is the individual--the individual who steps forward. And the state of our Union is the union of each of us, one to the other:the sum of our friendships, marriages, families and communities. 

We all have something to give. So if you know how to read, find someone whocan't. If you've got a hammer, find a nail. If you're not hungry, notlonely, not in trouble--seek out someone who is. 

Join the community of conscience. Do the hard work of freedom. That willdefine the state of our Union. 

Since the birth of our nation, "we the people" has been the source of ourstrength. What government can do alone is limited, but the potential of theAmerican people knows no limits. 

We are a nation of rock-solid realism and clear-eyed idealism. We areAmericans. We are the nation that believes in the future. We are the nationthat can shape the future. 

And we've begun to do just that, by strengthening the power and choice ofindividuals and families. 

Together, these last two years, we've put dollars for child care directlyin the hands of patients instead of bureaucracies, unshackled the potentialof Americans with disabilities, applied the creativity of the marketplace inthe service of the environment, for clean air, and made homeownershippossible for more Americans. 

The strength of a democracy is not in bureaucracy, it is in the people andtheir communities. In everything we do, let us unleash the potential of ourmost precious resource--our citizens. We must return to families, communities, counties, cities, states and institutions of every kind, thepower to chart their own destiny, and the freedom and opportunity providedby strong economic growth. That's what America is all about. 

I know, tonight, in some regions of our country, people are in genuineeconomic distress. I hear them. 

Earlier this month Kathy Blackwell of Massachusetts wrote me about what canhappen when the economy slows down, saying, "My heart is aching, and Ithink that you should know--your people out here are hurting badly. "

I understand. And I'm not unrealistic about the future. But there arereasons to be optimistic about our economy. 

First, we don't have to fight double-digit inflation. Second, mostindustries won't have to make big cuts in production because they don'thave big inventories piled up. And third, our exports are running solid andstrong. In fact, American businesses are exporting at a record rate. 

So let's put these times in perspective. Together, since 1981, we'vecreated almost 20 million jobs, cut inflation in half and cut interestrates in half. 

Yes, the largest peacetime economic expansion in history has beentemporarily interrupted. But our economy is still over twice as large asour closest competitor. 

We will get this recession behind us and return to growth soon. We will geton our way to a new record of expansion, and achieve the competitivestrength that will carry us into the next American century. 

We should focus our efforts today on encouraging economic growth, investingin the future and giving power and opportunity to the individual. 

We must begin with control of Federal spending. That's why I'm submitting abudget that holds the growth in spending to less than the rate ofinflation. And that's why, amid all the sound and fury of last year'sbudget debate, we put into law new, enforceable spending caps so thatfuture spending debates will mean a battle of ideas, not a bidding war. 

Though controversial, the budget agreement finally put the FederalGovernment on a pay-as-you-go basis, and cut the growth of debt by nearly$500 billion. And that frees funds for saving and job-creating investment. 

Now, let's do more. My budget again includes tax-free family savingsaccounts; penalty-free withdrawals from I. R. A. 's for first-timehomebuyers; and, to increase jobs and growth, a reduced tax for long-termcapital gains. 

I know their are differences among us about the impact and the effects of acapital gains incentive. So tonight I am asking the Congressional leadersand the Federal Reserve to cooperate with us in a study, led by ChairmanAlan Greenspan, to sort out our technical differences so that we can avoida return to unproductive partisan bickering. 

But just as our efforts will bring economic growth now and in the future, they must also be matched by long-term investments for the next Americancentury. 

That requires a forward-looking plan of action, and that's exactly what wewill be sending to the Congress. We have prepared a detailed series ofproposals, that include: A budget that promotes investment in America'sfuture--in children, education, infrastructure, space and high technology. Legislation to achieve excellence in education, building on the partnershipforged with the 50 governors at the education summit, enabling parents tochoose their children's schools and helping to make America No. 1 in mathand science. A blueprint for a new national highway system, a criticalinvestment in our transportation infrastructure. A research and developmentagenda that includes record levels of Federal investment and a permanenttax credit to strengthen private R and D and create jobs. A comprehensivenational energy strategy that calls for energy conservation and efficiency, increased development and greater use of alternative fuels. A bankingreform plan to bring America's financial system into the 21st Century, sothat our banks remain safe and secure and can continue to make job-creatingloans for our factories, businesses, and homebuyers. I do think there hasbeen too much pessimism. Sound banks should be making more sound loans, now. And interest rates should be lower, now. In addition to theseproposals, we must recognize that our economic strength depends upon beingcompetitive in world markets. We must continue to expand America's exports. A successful Uruguay Round of world trade negotiations will create morereal jobs, and more real growth, for all nations. You and I know that ifthe playing field is level, America's workers and farmers can outwork andoutproduce anyone, anytime, anywhere. 

And with the Mexican free trade agreement and our Enterprise for theAmericas Initiative we can help our partners strengthen their economies andmove toward a free trade zone throughout this entire hemisphere. 

The budget also includes a plan of action right here at home to put morepower and opportunity in the hands of the individual. That means newincentives to create jobs in our inner cities by encouraging investmentthrough enterprise zones. It also means tenant control and ownership ofpublic housing. Freedom and the power to choose should not be the privilegeof wealth. They are the birthright of every American. 

Civil rights are also crucial to protecting equal opportunity. Every one ofus has a responsibility to speak out against racism, bigotry, and hate. Wewill continue our vigorous enforcement of existing statutes, and I will onceagain press the Congress to strengthen the laws against employmentdiscrimination without resorting to the use of unfair preferences. 

We're determined to protect another fundamental civil right: freedom fromcrime and the fear that stalks our cities. The Attorney General will soonconvene a crime summit of the nation's law-enforcement officials. And tohelp us support them we need a tough crime control legislation, and we needit now. 

As we fight crime, we will fully implement our nation strategy forcombatting drug abuse. Recent data show we are making progress, but muchremains to be done. We will not rest until the day of the dealer is over, forever. 

Good health care is every American's right and every American'sresponsibility. So we are proposing an aggression program of new preventioninitiatives--for infants, for children, for adults, and for the elderly--to promote a healthier America and to help keep costs from spiraling. 

It's time to give people more choice in government by reviving the ideal ofthe citizen politician who comes not to stay, but to serve. One of thereasons there is so much support for term limitations is that the Americanpeople are increasingly concerned about big-money influence in politics. We must look beyond the next election, to the next generation. The time hascome to put the national interest ahead of the special interest--andtotally eliminate political action committees. 

That would truly put more competition in elections and more power in thehands of individuals. And where power cannot be put directly into the handsof the individual, it should be moved closer to the people--away fromWashington. 

The federal government too often treats government programs as if they areof Washington, by Washington, and for Washington. Once established, federalprograms seem to become immortal. 

It's time for a more dynamic program life cycle. Some programs shouldincrease. Some should decrease. Some should be terminated. And some shouldbe consolidated and turned over to the states. 

My budget includes a list of programs for potential turnover totaling morethan $20 billion. Working with Congress and the governors, I propose weselect at least $15 billion in such programs and turn them over to thestates in a single consolidated grant, fully funded, for flexiblemanagement by the states. 

The value of this turnover approach is straightforward. It allows theFederal Government to reduce overhead. It allows states to manage moreflexibly and more efficiently. It moves power and decision-making closer tothe people. And it re-enforces a theme of this Administration: appreciationand encouragement of the innovative power of "states as laboratories. "

This nation was founded by leaders who understood that power belongs in thehands of the people. They planned for the future. And so must we--here andaround the world. 

As Americans, we know there are times when we must step forward and acceptour responsibility to lead the world away from the dark chaos of dictators, toward the bright promise of a better day. 

Almost 50 years ago, we began a long struggle against aggressivetotalitarianism. Now we face another defining hour for America and theworld. 

There is no one more devoted, more committed to the hard work of freedom, than every soldier and sailor, every marine, airman and coastguardsman--every man and every woman now serving in the Persian Gulf. 

Each of them has volunteered to provide for this nation's defense. And nowthey bravely struggle to earn for America and for the world and for futuregenerations, a just and lasting peace. 

Our commitment to them must be equal of their commitment to our country. They are truly America's finest. 

The war in the gulf is not a war we wanted. We worked hard to avoid war. For more than five months we, along with the Arab League, the EuropeanCommunity and the United Nations, tried every diplomatic avenue. U. N. Secretary General Perez de Cuellar; Presidents Gorbachev, Mitterand, Ozal, Mubarak, and Bendjedid; Kings Fahd and Hassan; Prime Ministers Major andAndreotti--just to name a few--all worked for a solution. But time andagain Saddam Hussein flatly rejected the path of diplomacy and peace. 

The world well knows how this conflict began, and when: it began on August2nd, when Saddam invaded and sacked a small, defenseless neighbor. And I amcertain of how it will end. So that peace can prevail, we will prevail. 

Tonight I'm pleased to report that we are on course. Iraq's capacity tosustain war is being destroyed. Our investment, our training, our planning--all are paying off. Time will not be Saddam's salvation. 

Our purpose in the Persian Gulf remains constant: to drive Iraq out fromKuwait, to restore Kuwait's legitimate government, and to insure thestability and security of this critical region. 

Let me make clear what I mean by the region's stability and security. We donot seek the destruction of Iraq, its culture or its people. Rather, weseek an Iraq that uses its great resources not to destroy, not to serve theambitions of a tyrant, but to build a better life for itself and itsneighbors. We seek a Persian Gulf where conflict is no longer the rule, where the strong are neither tempted nor able to intimidate the weak. 

Most Americans know instinctively why we are in the Gulf. They know we hadto stop Saddam now, not later. They know this brutal dictator will doanything, will use any weapon, will commit any outrage, no matter how manyinnocents must suffer. 

They know we must make sure that control of the world's oil resources doesnot fall into his hands only to finance further aggression. They know thatwe need to build a new, enduring peace--based not on arms races andconfrontation, but on shared principles and the rule of law. 

And we all realize that our responsibility to be the catalyst for peace inthe region does not end with the successful conclusion of this war. 

Democracy brings the undeniable value of thoughtful dissent, and we haveheard some dissenting voices here at home, some reckless, most responsible. But the fact the all the voices have the right to speak out is one of thereasons we've been united in principle and purpose for 200 years. 

Our progress in this great struggle is the result of years of vigilance anda steadfast commitment to a strong defense. Now, with remarkabletechnological advances like the Patriot missile, we can defend theballistic missile attacks aimed at innocent civilians. 

Looking forward, I have directed that the S. D. I. Program be refocused onproviding protection from limited ballistic missile strikes, whatever theirsource. Let us pursue an S. D. I. Program that can deal with any futurethreat to the United States, to our forces overseas and to our friends andallies. 

The quality of American technology, thanks to the American worker, hasenabled us to successfully deal with difficult military conditions, andhelp minimize the loss of life. We have given our men and women the verybest. And they deserve it. 

We all have a special place in our hearts for the families of men and womenserving in the Gulf. They are represented here tonight, by Mrs. NormanSchwarzkopf, and to all those serving with him. And to the families, let mesay, our forces in the gulf will not stay there one day longer than isnecessary to complete their mission. 

The courage and success of the R. A. F. Pilots--of the Kuwaiti, Saudi, French, Canadians, Italians, the pilots of Qatar and Bahrain--all areproof that for the first time since World War II, the internationalcommunity is united. The leadership of the United Nations, once only ahoped-for ideal, is now confirming its founders' vision. 

I am heartened that we are not being asked to bear alone the financialburden of this struggle. Last year, our friends and allies provided thebulk of the economic costs of Desert Shield, and having now receivedcommitments of over $40 billion for the first three months of 1991, I amconfident they will do no less as we move through Desert Storm. 

But the world has to wonder what the dictator of Iraq is thinking. If hethinks that by targeting innocent civilians in Israel and Saudi Arabia, that he will gain an advantage--he is dead wrong. If he thinks that hewill advance his cause through tragic and despicable environmentalterrorism--he is dead wrong. And if he thinks that by abusing coalitionP. O. W. S, he will benefit--he is dead wrong. 

We will succeed in the Gulf. And when we do, the world community will havesent an enduring warning to any dictator or despot, present or future, whocontemplates outlaw aggression. 

The world can therefore seize this opportunity to fulfill the long-heldpromise of a new world order--where brutality will go unrewarded, andaggression will meet collective resistance. 

Yes, the United States bears a major share of leadership in this effort. Among the nations of the world, only the United States of America has hadboth the moral standing, and the means to back it up. We are the onlynation on this earth that could assemble the forces of peace. 

This is the burden of leadership--and the strength that has made Americathe beacon of freedom in a searching world. 

This nation has never found glory in war. Our people have never wanted toabandon the blessings of home and work, for distant lands and deadlyconflict. If we fight in anger, it is only because we have to fight at all. And all of us yearn for a world where we will never have to fight again. 

Each of us will measure, within ourselves, the value of this greatstruggle. Any cost in lives is beyond our power to measure. But the cost ofclosing our eyes to aggression is beyond mankind's power to imagine. 

This we do know: Our cause is just. Our cause is moral. Our cause isright. 

Let future generations understand the burden and the blessings of freedom. Let them say, we stood where duty required us to stand. 

Let them know that together, we affirmed America, and the world, as acommunity of conscience. 

The winds of change are with us now. The forces of freedom are united. Wemove toward the next century, more confident than ever, that we have thewill at home and abroad, to do what must be done--the hard work offreedom. 

May God bless the United States of America. 

***

State of the Union AddressGeorge H. W. BushJanuary 28, 1992

Mr. Speaker, Mr. President, distinguished members of Congress, honoredguests and fellow citizens:

I mean to speak tonight of big things, of big changes and the promises theyhold and of some big problems and how together we can solve them and moveour country forward as the undisputed leader of the age. 

We gather tonight at a dramatic and deeply promising time in our history, and in the history of man on earth. For in the past 12 months, the worldhas known changes of almost biblical proportions. And even now, monthsafter the failed coup that doomed a failed system, I am not sure we haveabsorbed the full impact, the full import of what happened. 

But Communism died this year. Even as President, with the most fascinatingpossible vantage point, there were times when I was so busy helping tomanage progress and lead change that I didn't always show the joy that wasin my heart But the biggest thing that has happened in the world in mylife, in our lives, is this: By the grace of God, America won the Cold War. And there's another to be singled out, though it may seem inelegant. I meana mass of people called the American taxpayer. No ever thinks to thank thepeople who pay country's bill or an alliance's bill. But for a half Centurynow, the American people have shouldered the burden and paid taxes thatwere higher than they would have been to support a defense that was biggerthan it would have been if imperial communism had never existed. But itdid. But it doesn't anymore. And here is a fact I wouldn't mind the worldacknowledging: The American taxpayer bore the brunt of the burden, anddeserves a hunk of the glory. 

And so, now, for the first time in 35 years, our strategic bombers standdown. No longer are they on round-the-clock alert. Tomorrow our childrenwill go to school and study history and how plants grow. And they won'thave, as my children did, air-raid drills in which they crawl under theirdesks and cover their heads in case of nuclear war. My grandchildren don'thave to do that, and won't have the bad dreams children once had in decadespast. There are still threats. But the long drawn-out dread is over. 

A year ago tonight I spoke to you at a moment of high peril. Americanforces had just unleashed Operation Desert Storm. And after 40 days in thedesert skies and 4 days on the ground, the men and women of America's armedforces and our allies accomplished the goals that I declared, and that youendorsed: we liberated Kuwait. 

Soon after, the Arab world and Israel sat down to talk seriously, andcomprehensively, about peace, an historic first. And soon after that, atChristmas, the last American hostages came home. Our policies werevindicated. 

Much good can come from the prudent use of power. And much good can comefrom this: A world once divided into two armed camps now recognizes onesole and pre-eminent power, the United States of America. And this theyregard with no dread. For the world trusts us with power, and the world isright. They trust us to be fair, and restrained. They trust us to be on theside of decency. They trust us to do what's right. 

I use those words advisedly. A few days after the war began, I received atelegram from Joanne Speicher, the wife of the first pilot killed in thegulf, Lieutenant Commander Scott Speicher. Even in her grief, she wanted meto know that some day, when her children were old enough, she would tellthem "that their father went away to war because it was the right thing todo". She said it all. It was the right thing to do. 

And we did it together. There were honest differences here, in thischamber. But when the war began, you put your partisanship aside andsupported our troops. This is still a time for pride, but this is no timeto boast. For problems face us, and we must stand together once again andsolve them--and not let our country down. 

Two years ago, I began planning cuts in military spending that reflectedthe changes of the new era. But now, this year, with Imperial Communismgone, that process can be accelerated. Tonight I can tell you of dramaticchanges in our strategic nuclear force. These are actions we are taking onour own, because they are the right thing to do. 

After completing 20 planes for which we have begun procurement, we willshut down production of the B-2 bomber. We will cancel the ICBM program. Wewill cease production of new warheads for our sea-based missiles. We willstop all production of the peacekeeper missile. And we will not purchaseany more advanced cruise missiles. 

This weekend I will meet at Camp David with Boris Yeltsin of the RussianFederation. I have informed President Yeltsin that if the commonwealth, theformer Soviet Union, will eliminate all land-based multiple-warheadballistic missiles, I will do the following: We will eliminate allPeacekeeper missiles. We will reduce the number of warheads on Minutemanmissiles to one and reduce the number of warheads on our sea-based missilesby about one-third. And we will convert a substantial portion of ourstrategic to primarily conventional use. 

President Yeltsin's early response has been very positive, and I expect ourtalks at Camp David to be fruitful. I want you to know that for half acentury, American presidents have longed to make such decisions and saysuch words. But even in the midst of celebration, we must keep caution as afriend. For the world is still a dangerous place. Only the dead have seenthe end of conflict. And though yesterday's challenges are behind us, tomorrow's are being born. 

The Secretary of defense recommended these cuts after consultation with thejoint chiefs of staff. And I make them with confidence. But do notmisunderstand me: The reductions I have approved will save us an additional$50 billion over the next five years. By 1997 we will have cut defense by30 percent since I took office. These cuts are deep, and you must know myresolve: this deep, and no deeper. To do less would be insensible toprogress, but to do more would be ignorant of history. We must not go backto the days of "the hollow army". We cannot repeat the mistakes made twicein this century when armistice was followed by recklessness and defense waspurged as if the world was permanently safe. 

I remind you this evening that I have asked for your support in funding aprogram to protect our country from limited nuclear missile attack. We musthave this protection because too many people in too many countries haveaccess to nuclear arms. There are those who say that now we can turn awayfrom the world, that we have no special role, no special place. But we arethe United States of America, the leader of the West that has become theleader of the world. 

As long as I am President we will continue to lead in support of freedomeverywhere, not out of arrogance and not out of altruism, but for thesafety and security of our children. This is a fact: Strength in thepursuit of peace is no vice; isolationism in the pursuit of security is novirtue. 

Now to our troubles at home. They are not all economic, but the primaryproblem is our economy. There are some good signs. Inflation, that thief, is down, and interest rates are down. But unemployment is too high, someindustries are in trouble and growth is not what it should be. Let me tellyou right from the start and right from the heart: I know we're in hardtimes, but I know something else: This will not stand. 

My friends in this chamber, we can bring the same courage and sense ofcommon purpose to the economy that we brought to Desert Storm. And we candefeat hard times together. I believe you will help. One reason is thatyou're patriots, and you want the best for your country. And I believe thatin your hearts you want to put partisanship aside and get the job done, because it's the right thing to do. 

The power of America rests in a stirring but simple idea: that people willdo great things if only you set them free. Well, we're going to have to setthe economy free, for if this age of miracles and wonders has taught usanything, it's that if we can change the world, we can change America. 

We must encourage investment. We must make it easier for people to investmoney and make new products, new industries, and new jobs. We must clearaway obstacles to new growth: high taxes, high regulation, red tape, andyes, wasteful government spending. None of this will happen with a snap ofthe fingers, but it will happen. And the test of a plan isn't whether it'scalled new or dazzling. The American people aren't impressed by gimmicks. They're smarter on this score than all of us in this room. The only test ofa plan is, It is sound and will it work? We must have a short-term plan toaddress our immediate needs and heat up the economy. And then we need along-term plan to keep the combustion going and to guarantee our place inthe world economy. 

There are certain things that a president can do without Congress, and I amgoing to do them. I have this evening asked major cabinet departments andfederal agencies to institute a 90-day moratorium on any new federalregulations that could hinder growth. In those 90 days, major departmentsand agencies will carry out a top-to-bottom review of all regulations, oldand new, to stop the ones that will hurt growth and speed up those thatwill help growth. 

Further, for the untold number of hard-working, responsible Americanworkers and businessmen and women who've been forced to go without neededbank loans, the banking credit crunch must end. I won't neglect myresponsibility for sound regulations that serve the public good, butregulatory overkill must be stopped. And I have instructed our governmentregulators to stop it. 

I have directed Cabinet departments and federal agencies to speed uppro-growth expenditures as quickly as possible. This should put an extra$10 billion into the economy in the next six months. And our newtransportation bill provides more than $150 billion for construction andmaintenance projects that are vital to our growth and well-being. Thatmeans jobs building roads, jobs building bridges and jobs buildingrailways. And I have this evening directed the secretary of the Treasury tochange the federal tax withholding tables. With this change, millions ofAmericans from whom the government withholds more than necessary can nowchoose to have the government withhold less from their paychecks. Somethingtells me a number of taxpayers may take us up on this one. This initiativecould return about $25 billion back into the economy over the next 12months, money people can use to help pay for clothing, college or a newcar. And finally, working with the Federal Reserve, we will continue tosupport monetary policy that keeps both interest rates and inflation down. 

Now these are the things that I can do. And now, members of Congress, letme tell you what you can do for your country. You must, you must pass theother elements of my plan to meet our economic needs. Everyone knowsinvestment speeds recovery. And I am proposing this evening a change in thealternative minimum tax, and the creation of a new 15% investment taxallowance. This will encourage businesses to accelerate investment andbring people back to work. Real estate has led our economy out of almostall the tough times we've ever had. Once building starts, carpenters andplumbers work, people buy homes and take out mortgages. 

My plan would modify the passive-loss rule for active real-estatedevelopers. And it would make it easier for pension plans to purchase realestate. For those Americans who dream of buying a first home but who can'tquite afford it, my plan would allow first-time home buyers to withdrawsavings from IRAs without penalty and provide a $5000 tax credit for thefirst purchase of that home. 

And finally, my immediate plan calls on Congress to give crucial help topeople who own a home, to every one who has a business, a farm or a singleinvestment. 

This time, at this hour, I cannot take "No" for an answer. You must cut thecapital gains tax on the people of this country. Never has an issue been sodemagogued by its opponents. But the demagogues are wrong. They are wrong, and they know it. Sixty percent of people who benefit from lower capitalgains have incomes under $50, 000. A cut in the capital gains tax increasesjobs and helps just about everyone in our country. And so I'm asking you tocut the capital gains tax to a maximum of 15. 4%. And I'll tell you, I'lltell you, those of you who say, "Oh no, someone who's comfortable maybenefit from this" you kind of remind me of the old definition of thePuritan, who couldn't sleep at night worrying that somehow someonesomewhere was out having a good time. 

The opponents of this measure and those who've authored various so-calledsoak-the-rich bills that are floating around this chamber should bereminded of something: When they aim at the big guy, they usually hit thelittle guy. And maybe it's time that stopped. 

This then is my short-term plan. Your part, members of Congress, requiresenactment of these common-sense proposals that will have a strong effect onthe economy, without breaking the budget agreement and without raising taxrates. And while my plan is being passed and kicking in, we've got to carefor those in trouble today. I have provided for up to $4. 4 billion in mybudget to extend federal unemployment benefits, and I ask for Congressionalaction right away. And I thank the committee--well, at last. And let's befrank. Let's be frank; let me level with you. 

I know, and you know, that my plan is unveiled in a political season. Iknow, and you know, that everything I propose will be viewed by some inmerely partisan terms. But I ask you to know what is in my heart. And myaim is to increase our nation's good. And I'm doing what I think is right;I'm proposing what I know will help. I pride myself that I'm a prudent man, and I believe that patience is a virtue, but I understand politics is, forsome, a game and that sometimes the game is to stop all progress and thendecry the lack of improvement. But let me tell you, let me tell you, farmore important than my political future--and far more important thanyours--is the well-being of our country. And members of this chamber, members of this chamber, are practical people, and I know you won't resentsome practical advice: When people put their party's fortunes, whatever theparty, whatever the side of this aisle, before the public good, they courtdefeat not only for their country, but for themselves. And they willcertainly deserve it. 

And I submit my plan tomorrow. And I am asking you to pass it by March 20. From the day after that--if it must be--the battle is joined. And youknow, when principle is at stake, I relish a good fair fight. 

I said my plan has two parts, and it does. And it's the second part that isthe heart of the matter. For it's not enough to get an immediate burst. Weneed long-term improvement in our economic position. We all know that thekey to our economic future is to insure that America continues as theeconomic leader of the world. We have that in our power. Here, then, is mylong-term plan to guarantee our future. 

First, trade: We will work to break down the walls that stop world trade. We will work to open markets everywhere. And in our major tradenegotiations, I will continue pushing to eliminate tariffs and subsidiesthat damage America's farmers and workers. And we'll get more good Americanjobs within our own hemisphere through the North American Free TradeAgreement, and through the Enterprise for the Americas Initiative. Butchanges are here, and more are coming. The work place of the future willdemand more highly skilled workers than ever, people who are computerliterate, highly educated. 

And we must be the world's leader in education. And we must revolutionizeAmerica's schools. My America 2000 strategy will help us reach that goal. My plan will give parents more choice, give teachers more flexibility andhelp communities create new American schools. Thirty states across thenation have established America 2000 programs. Hundreds of cities and townshave joined. Now Congress must join this great movement. Pass my proposalsfor new American schools. 

That was my second long-term proposal. And here's my third: We must makecommon-sense investments that will help us compete, long-term, in themarketplace. We must encourage research and development. My plan is to makethe R and D tax credit permanent, and to provide record levels of support, over $76 billion this year alone for people who explore the promise ofemerging technologies. 

And fourth, we must do something about crime and drugs. And it is time fora major renewed investment in fighting violent street crime. Its saps ourstrength and hurts our faith in our society, and in our future together. Surely a tired woman on her way to work at six in the morning on a subwaydeserves the right to get there safely. And surely, it's true that everyonewho changes his or her way of life because of crime--from those afraid togo our at night to those afraid to walk in the parks they pay for--surelythose people have been denied a basic civil right. It is time to restoreit. Congress, pass my comprehensive crime bill. It is tough on criminalsand supportive of police, and it has been languishing in these hallowedhalls for years now. Pass it. Help your country. 

And fifth, I ask you tonight to fund our HOPE housing proposal and to passmy enterprise-zone legislation, which will get businesses into the innercity. We must empower the poor with the pride that comes from owning ahome, getting a job, becoming part of things. My plan would encourage realestate construction by extending tax incentives for mortgage-revenue bondsand low-income housing. And I ask tonight for record expenditures for theprogram that helps children born into want move into excellence: HeadStart. 

Step six: We must reform our health care system for this too, bears onwhether or not we can compete in the world. American health costs have beenexploding. This year America will spend over $800 billion on health, andthat is expected to grow to $1. 6 trillion by the end of the decade. Wesimply cannot afford this. The cost of health care shows up not only inyour family budget, but in the price of everything we buy and everything wesell. When health coverage for a fellow on the assembly line coststhousands of dollars, the cost goes into the product he makes. And you paythe bill. Now we must make a choice. 

Now some pretend we can have it both ways: they call it play or pay. Butthat expensive approach is unstable. It will mean higher taxes, fewer jobs, and eventually, a system under complete government control. Really, thereare only two options. And we can move toward a nationalized system, asystem which will restrict patient choice in picking a doctor and force thegovernment to ration services arbitrarily. And what we'll get is patientsin long lines, indifferent service and a huge new tax burden. Or we canreform our own private health-care system, which still gives us, for allits flaws, the best quality health care in the world. Well, let's build onour strengths. 

My plan provides insurance security for all Americans while preserving andincreasing the idea of choice. We make basic health insurance affordablefor all low-income people not now covered. We do it by providing ahealth-insurance tax credit of up to $3750 for each low-income family. Themiddle class gets help, too. And by reforming the health insurance market, my plan assures that Americans will have access to basic health insuranceeven if they change jobs or develop serious health problem We must bringcosts under control, preserve quality, preserve choice and reduce people'snagging daily worry about health insurance. My plan, the details of which Iwill announce shortly, does just that. 

And seventh, we must get the federal deficit under control. We now have inlaw, enforcable spending caps, and a requirement that we pay for theprograms we create. There are those in Congress who would ease thatdiscipline now. But I cannot let them do it. And I won't. My plan wouldfreeze all domestic discretionary budget authority which means "No morenext year than this year". I will not tamper with Social Security but Iwould put real caps on the growth of uncontrolled spending. And I wouldalso freeze federal domestic government employment. And with the help ofCongress, my plan will get rid of 246 programs that don't deserve federalfunding. Some of them have noble titles, but none of them is indispensible. We can get rid of each and every one of them. 

You know, it's time we rediscovered a home truth the American people havenever forgotten: the government is too big and spends too much. And I callon Congress to adopt a measure that will help put an end to the annualritual of filling the budget with pork-barrel appropriations. Every year, the press has a field day making fun of outrageous examples, a LawrenceWelk Museum, a research grant for Belgian Endive. We all know how thesethings get into the budget, and maybe you need someone to help you say no. I know how to say it. And you know what I need to make it stick. Give methe same thing 43 governors have--the line-item veto--and let me helpyou control spending. 

We must put an end to unfinanced government mandates. These are therequirements Congress puts on our cities, counties and states withoutsupplying the money. And if Congress passes a mandate, it should be forcedto pay for it and balance the cost with savings elsewhere. After all, amandate just increases someone else's tax burden, and that means highertaxes at the state and local level. 

Step Eight: Congress should enact the bold reform proposals that are stillawaiting congressional action: bank reform, civil justice reform, tortreform, and my national energy strategy. 

And finally, we must strengthen the family, because it is the family thathas the greatest bearing on our future. When Barbara holds an AIDS baby inher arms and reads to children, she's saying to every person in thiscountry, "Family Matters". 

And I am announcing tonight a new commission on America's urban families. I've asked Missouri's governor, John Ashcroft, to be chairman, formerDallas Mayor Annetter Strauss to be co-chair. You know, I had Mayors, theleading mayors from the League of Cities, in the other day at the WhiteHouse, and they told me something striking. They said that every one ofthem, Republican and Democrat, agreed on one thing: That the major cause ofthe problems of the cities is the dissolution of the family. And they askedfor this commission, and they were right to ask, because it's time todetermine what we can do to keep families together, strong and sound. 

There's one thing we can do right away: Ease the burden of rearing a child. I ask you tonight to raise the personal exemption by $500 per child forevery family. For a family with four kids, that's an increase of $2000. This is a good start in the right direction, and it's what we can afford. It's time to allow families to deduct the interest they pay on studentloans. And I'm asking you to do just that. And I'm asking you to allowpeople to use money from their IRAs to pay medical and educationalexpenses, all without penalties. And I'm asking for more. Ask Americanparents what they dislike about how things are going in our country, andchances are good that pretty soon they'll get to welfare. 

Americans are the most generous people on Earth. But we have to go back tothe insight of Franklin Roosevelt who, when he spoke of what became thewelfare program, want that it must not become a narcotic and a subtledestroyer of the spirit. Welfare was never meant to be a life style. It wasnever meant to be a habit. It was never supposed to be passed on fromgeneration to generation like a legacy. It's time to replace theassumptions of the welfare state and help reform the welfare system. 

States throughout the country are beginning to operate with newassumptions: that when able-bodied people receive government assistancethey have responsibilities to the taxpayer. A responsibility to seek work, education, or job training. A responsibility to get their lives in order. Aresponsibility to hold their families together and refrain from havingchildren out of wedlock. And a responsibility to obey the law. We are goingto help this movement. Often, state reform requires waiving certain federalregulations. I will act to make that process easier and quicker for everystate that asks our help. And I want to add, as we make these changes, wework together to improve this system, that our intention is notscapegoating and finger-pointing. If you read the papers or watch TV youknow there's been a rise these days in a certain kind of ugliness: racistcomments, anti-Semitism, an increased sense of division. Really, this isnot us. This is not who we are. And this is not acceptable. 

And so you have my plan for America. And I am asking for big things, but Ibelieve in my heart you will do what's right. 

And you know, it's kind of an American tradition to show a certainskepticism toward our democratic institutions. I myself have sometimesthought the aging process could be delayed if it had to make its waythrough Congress. But you will deliberate, and you will discuss, and thatis fine. But my friends the people cannot wait. They need help now. Andthere's a mood among us. People are worried. There has been talk ofdecline. Someone even said our workers are lazy and uninspired. And Ithought, "Really? Go tell Neil Armstrong standing on the moon. Tell theAmerican farmer who feeds his country and the world. Tell the men and womenof Desert Storm. " Moods come and go, but greatness endures. Our does. 

And maybe for a moment it's good to remember what, in the dailyness of ourlives, we forget. We are still and ever the freest nation on Earth, thekindest nation on Earth, the strongest nation on Earth. And we have alwaysrisen to the occasion. And we are going to lift this nation out of hardtimes inch by inch and day by day, and those who would stop us better stepaside. Because I look at hard times and I make this vow: This will notstand. And so we move on, together, a rising nation, the once and futuremiracle that is still, this night, the hope of the world.