Bill Clinton: “Let me talk about manufacturing specifically, if I might, about what we can do and what you have to do. And I'd like to…”

“Let me talk about manufacturing specifically, if I might, about what we can do and what you have to do. And I'd like to establish my credentials. I was Governor of Arkansas for 12 years. When I became Governor of my State, we had an unemployment rate nearly 3 percentage points above the national average; we were losing manufacturing jobs rapidly, plants closing down like crazy. And we devised a plan to retrain our work force and to make our State more attractive to manufacturing. At a time when they said we were going to lose manufacturing jobs, we didn't even need to try that. We were able to increase the percentage of our work force involved in manufacturing. For the last 4 or 5 years we were among the Nation's leaders in job growth. In 1992 we ranked first or second in every month. And now the State has an unemployment rate of about 5.2 percent. It took about 8 years to do that. But we did it, and it worked. So you can increase your manufacturing base. Now, what does the United States have to do to help California do that? I think in your case, three things. Number one, we've got to do something to help you with all these people who have been laid off or lost their jobs because of defense cutbacks. We started defense cuts in America in 1987. I wasn't in Washington when it started, but it was unconscionable to start cutting all these contracts with no plans for conversion to help companies, to help individuals, to help communities to maintain a manufacturing base in nondefense areas. We have an aggressive defense conversion plan that, if it's done right, will be greatly beneficial to California. We have already begun working on that. Number two, our economic program has some significant incentives to promote manufacturing: incentives for bigger companies to invest in new plant and equipment, incentives to start and capitalize smaller manufacturing operations. The third thing we're doing is finding new markets for American manufacturing. When I was in Tokyo recently, the world's seven industrial powers agreed to lower or eliminate tariffs in a sweeping fashion, more than has been done in years and years. And every independent analysis says that if we can get all the countries of the world that are in our trading group, the General Agreement on Tariffs and Trade, to accept this by the end of the year, it will put hundreds of thousands of manufacturing jobs back into the American economy in the next few years. Now, if we do all that, that will help California. California also has to examine its situation. Why would someone close a plant down in California and move it to another State? What do you have to do to make the State more attractive? There are some things we can do on that. Our apprenticeship programs, our worker training programs will help California. Our health care cost control programs may help you not only with health care but with the enormous cost of worker's comp out there. But a lot of these decisions need to be asked and answered in California. If California is losing manufacturing jobs to other States, you need to think through what changes can be made there to make you more competitive. Small Business”