Radio Address to the Nation
on the Economy and Deficit Reduction
My
fellow Americans:
In
a moment I'd like to tell you about our efforts this past week to cut the
Federal deficit in order to keep the American economy growing and strong.
First, though, I'd like to stress that very fact. Despite stock market
fluctuations, despite all you may have heard to the contrary, the truth is: The
American economy remains growing and strong.
As
usual with economics, it's the figures that tell the story. During the third
quarter of this year, our gross national product rose at a healthy annual rate
of 3.8 percent. This was spurred in turn by new business investment, which is
soaring at a truly remarkable rate of 24 percent. Inflation is down.
Manufacturing productivity is up. Real exports, too, are up
and rising at an annual rate of nearly 17 percent. One set of figures is
especially important: the figures that concern the more than 14 million new
jobs that have been created since this economic expansion began some 59 months
ago. That's 2\1/2\ times more new jobs than have been created in the other
major industrialized countries since 1982, and you might think it's something
for us Americans to take pride in.
But
some have tried to pooh-pooh this tremendous achievement, distorting the record
in the process. Last December, for example, a study was presented to the Joint
Economic Committee of Congress, which claimed that, while millions of new jobs
have indeed been created, most of these are basically bad jobs, with well over
half paying only about $7,000 a year or less.
Well,
since then at least two major investigations have shown that study to be wrong.
The Department of Labor has put out evidence showing an exactly opposite trend
toward higher paying jobs. And last month the prestigious American Enterprise
Institute here in
Well,
you should know that when the misleading Joint Economic Committee study was first
released, it made virtually every network news show, national magazine, and
major newspaper. But when the American Enterprise Institute study was released,
only one major newspaper, one major magazine, a handful of local journalists,
and not a single television network sent reporters. So, as I said, our economy
is in fundamentally good condition. And when you hear reports of doom and gloom
to the contrary, well, please take them with a grain of salt.
And
now to tell you about our success this week in reaching an agreement that will
reduce the Federal deficit still further: When the stock market took its
dramatic plunge last month, it became clear that the time had come for dramatic
action. And for some 20 days, my representatives met with negotiators from the
Congress, struggling to work out a credible and reliable deficit reduction
plan. Just yesterday I was able to announce that a bipartisan agreement was
indeed reached, an agreement that would cut the deficit not just for one year
but for two.
As
with all agreements that result from long and difficult negotiation, this
agreement is probably not the very best deal that could have been struck. But
we have to begin somewhere, and I believe this agreement represents just that:
a good, solid beginning. It provides the necessary services for our people,
maintains our national security, and does both at a level that will not
overburden our taxpayers -- in a word, fairness. And while efforts to cut the
deficit still further must certainly continue, this agreement will send the
right message at the right time, both to our own financial markets and to
markets and governments around the world: Decisively, doggedly, and in a spirit
of cooperation, the
My thanks and congratulations to the
congressional leadership and the budget negotiators for all their hard work. Now each of us,
Republican and Democrat alike, must work to reach our vital goal: a sound and
enforceable
Until
next week, thanks for listening, and God bless you.
Note: The President
spoke at