George H.W. Bush: “Thank you for that warm Michigan welcome. Governor Engler, my friend, thank you, sir, for that kind introduction, and my…”

“Thank you for that warm Michigan welcome. Governor Engler, my friend, thank you, sir, for that kind introduction, and my congratulations to you for trying to bring fiscal sanity to this wonderful State. And it's a great pleasure to be met by your Texas wife, Michelle, who's with us today. And also it's a great pleasure to see another old friend, a great leader of the State of Michigan, Lieutenant Governor Connie Binsfeld, who was out there at the airport, too. Thank you for being there. Mike Guido, the Mayor, is with us; I salute him. And one last thank-you to Jerry Warren, a former banker and now the miracle worker that can produce such a fantastic crowd on such short notice. Now, Jerry, if you want to go into the banking business again-- [laughter]--there may be an opening in Washington, DC, on Capitol Hill. I think this guy could do it. It's a pleasure to be back before this outstanding group. Four short days from now, Michigan faces a choice, and you'll make a decision that will really shape the way this country copes with the big issues, the issues that shape the world and the values close to home. And I am talking about jobs. I'm talking about family. And I'm talking about world peace for ourselves and also for our children. Right now, the most important issue facing Michigan and this country is clearly the economy. It's my number one priority, jobs. Manufacturing--you know it perhaps better than most--has been the greatest generator of good jobs in American history. Take a look at the auto industry. I'm speaking not simply about the jobs created in the industry itself but the thousands upon thousands of jobs in supplier and spinoff businesses. Manufacturing is and always will be a basic strength of this country's economy. No nation will ever lead the world without a strong manufacturing base. Fifty years ago, this great State of Michigan earned the proud title of Arsenal of Democracy. Industries centered here had no peers and practically no competitors anywhere on the planet. And yes, today things are different. Michigan's manufacturers are not just competing with a few outgunned adversaries. They are up against tough, hard-nosed competitors in practically every developed country. Today, the new reality is simply this: If we want to succeed economically at home, we have got to compete economically abroad. All we seem to hear on the news is gloom and doom. But let's not overlook some of the fundamentals that prove that we are poised, not there yet, but poised for a national recovery. Interest rates are lower now than at any point in the past 10 years. The prime rate is now 6.5 percent. Inflation, most would agree, is under control. Monthly retail sales are up 1.3 percent in February, on top of a 2.1-percent rise in January. And then you know the story on housing starts; they're up 5.5 percent since December. And for all our troubles, America is still the world's dominant economy, the one market other countries want to crack, the economy producing goods in demand in every country, every corner of the world. Right now, nationwide, we're in the midst of a record export boom, one that's driven the trade deficit down 35 percent in the past year alone. And American exports have doubled, doubled since 1985. Not only do we export more than any other country, but we've been gaining ground, not losing it to our competitors. And I fully realize this has not always been true for our auto industry, but these are fundamentals that we can build on, the raw material, if you will, to manufacture the solid, strong recovery that I am confident we will see. It looks different here in Detroit. Michigan's been through some extraordinarily tough times. And there's no sense pretending that things are better than they are. But there's also no sense underestimating our strengths and exaggerating our weaknesses. The simple fact is, we face a future with both challenges and opportunities. In the past years, the United States has helped bring about change that has reshaped our world for the better. We're the country that won the cold war, that drew a line on the sand and drove a dictator out of Kuwait. And we are the country that made sacrifices for freedom in four corners of the world. And because we did, right here at home our children are less fearful of the threat of nuclear war, and they sleep much more safely. And yes, American leadership has changed the world, and now what I want to do is use that same leadership to change America. I don't think there's anyone in this room who doesn't believe that the key to America's economic future is our ability to lead, to succeed in the world economically as we have politically. And that's what my economic plan is all about. Back in January, 45 days ago today, I sent Congress a specific short-term action plan to stimulate this economy, to spark a recovery as early as this spring, a recovery that would increase auto sales and create jobs. And when I sent that plan to Capitol Hill, I set a deadline: one short week from now, March 20th, almost 2 months from the day I challenged the Congress. And you know the story. Congress barely gave my plan a glance before they got busy on their own agenda: 90 billion dollar tax increase that will threaten our recovery and cost us jobs. Any economist worth his salt will tell you the last thing this economy needs is a massive tax increase. And you can count on this: If the Democrats send me that plan, they can get ready for a veto the minute it hits my desk. I am not going to accept it. I believe that my plan--I'm convinced of it, and I've talked to lots of business people and lots of economists--I am convinced my plan will make America more competitive. It includes seven things that we've got to accomplish to ensure a strong market for America and for the automotive industry. We've got to reduce Government spending and draw the line against new taxes. Deficit spending dries up sources of savings the private sector must have to invest, to grow, and to create new jobs. And there's only one protection the taxpayer has against uncontrolled, what we call discretionary spending in Washington: those spending caps that we got enacted a year and a half ago. That's the only protection the taxpayer has. And guess what? You're right. The Congress wants to get rid of those spending caps now and go back to the days of unchecked spending. And I am not going to let that happen. We've got enough votes to sustain a veto to see that that does not happen to the American taxpayer. We've got to put an end to excessive Government regulation. Our companies can't compete if the Government chokes them off in redtape. And we've got to stop counterproductive regulations that cripple your freedom of action and cost this country jobs. So I've ordered a 90-day review of all new regulations with this aim in mind: Whatever contributes to economic growth goes forward, and whatever stifles growth gets scrapped. We're at midpoint in that review. But even now, you can see results. The sheer volume of new rules and regulations is down to 25 a week, from 6 times that amount just a year ago. That's progress. Already we've announced regulatory relief to benefit sectors of our economy from biotech to energy. And we're looking now for creative new ways to use regulations to clean up our environment, using market forces where possible. Times have changed since the day nearly two decades ago when CAFE standards came into existence. And we now know that CAFE can cost a lot of jobs and even lives on the highway. And right now, through my Department of Transportation, I've been working with the auto industry and the UAW to fight irresponsible legislation. And I will not sign CAFE legislation that will destroy the auto industry and cost American jobs. We will take several regulatory steps affecting the auto industry in the near future. There is one that I want to announce today. For some time, the EPA has been considering a requirement to order that all new cars be equipped with these onboard canisters to catch and contain fumes coming from the gas pump. As a result of our regulatory review, we have decided against such a rule. The Department of Transportation de- termined that onboard canisters pose a real risk to safety, a risk we simply cannot impose on American drivers. If we want to make America more competitive, we've got to move forward on civil justice reform as well. Too many businesses can't start up or keep going because too many lawyers and too many lawsuits get in the way, 18 million lawsuits every year alone. Right here in Detroit, there are business men and women ready to expand, ready to hire new workers, stopped cold by the fear of litigation. All told, when you add in indirect expenses, lawsuits cost this economy $300 billion a year. And it's time for reform, time to replace the explosion of mindless litigation with a little common sense. I have called on the Congress to pass reform in this area. It's a crime when you have people that don't dare coach Little League baseball because they're afraid they're going to get sued or doctors unwilling to deliver babies because they're afraid they're going to get some malicious malpractice suit filed against them. I know the business people here would agree with this one, but we've got to keep our Nation on the cutting edge of new technologies. That's why I've proposed record Federal funding for R&D, research and development. It's why we back initiatives like one I signed at the White House last October to create a battery consortium to pioneer a new generation of electric cars. And in the global competition, it's going to come down to this: The best way to master new markets is to make them. And if we want to be more competitive, we have got to encourage investment. That's why I've called on Congress to pass my investment tax allowance, speed up the front-end depreciation so people can buy capital equipment and write it off faster. And additionally, Congress ought to cut the tax on capital gains so we can compete with foreign interest. But political demagogs call that a tax break for the rich. Let me tell you something, you know what it is in Japan and Germany? Zero percent and one percent. And we're up there in the stratosphere somewhere. We have got to provide our children, in addition, with a 21st- century education, today. And we won't have a first-class economy with second-rate schools. To have the best economy, you have to have the best educated work force. And that's the idea behind our wonderful program known as America 2000, America 2000 strategy, our plan to revolutionize, to literally reinvent America's schools. And finally, we've got to work to open markets around the world to American goods. Earlier this year, some of the people here today went with me to Japan. And we all took a little grief, a little flak in the press for that trip. But the fact is, that trip laid down a marker. The business community is beginning to understand this. It signaled to our trade partners that I am very serious about free and fair trade. Level the playing field, and American workers and American business can compete with anyone. And we'll keep pushing to open markets that for too long have been closed to quality American goods. We've already seen a payoff: new markets for America in Japan's computer, glass, and paper market, all as a direct result of that trip. And American access to the Japanese Government mainframe computer market alone could mean an additional $5.5 billion in computer sales. And we've seen positive steps in the automotive industry as well; not everything we want, but we've seen positive steps. Japan's auto industry intends to purchase an additional $10 billion worth of U.S. auto parts by 1994. And the benefits won't simply flow to the Big Three. Detroit Center Tool reports that its sales in Japan will jump 500 percent this year alone to $30 million. And that trip was the beginning of an important process that we are going to continue, opening markets around the world. And that also means, in my view, a successful conclusion to the Uruguay round, GATT round. It's absolutely essential that we open markets, reduce these barriers. So far today, I've talked about my plan, my plan to get the economy growing again and to get this country ready for the challenges of a new century. So let me repeat, here's what I'll do, and give it to you straight: I will veto mandates that pass the buck to business and hurt competitiveness. I will veto job-destroying tax increases and fight for job-creating incentives. And I will fight to open markets around the world to American products. And I will fight against the forces of isolationism who want us to turn our back and run away from the future. That's some of what I can do. And here's what you in the business community must do. But if we're going to work together to make America more competitive, you've got to continue your commitment to train and retrain your workers, give them the skills they'll need to cope with a changing workplace. And to help workers adjust to new economic conditions, Government can help, too. For example, last week a Department of Labor task force was here with the representatives of the UAW and GM on just that issue. Also, you've got to continue to build on recent progress that has labor and management working as allies, not adversaries. No company can compete when it is a war within itself. And you've got to fight for foreign markets, make the commitment for the long haul. I, a long time ago--and I hate to bring it up in a room of successful business people, like the one that's here today--but was in a business, started the small business. And I think I know what it's like. I do know what it's like to sweat to make a payroll, to run risks, to succeed, and to overcome setbacks, too. And we all know how to measure performance. Performance is measured by performance improved: people back at work, assembly lines up and running, putting out a superior product, and bringing in a profit. I want to close today, before taking a couple of questions here, by saying I know when I decided to come here I was going to a great city-- been here many times; I've been privileged to be your guest at the Economic Club several times--going to a State that's experienced hard times. But I came here for that very reason: to look you in the eye, and to tell you what we are going to do to turn this economy around. And I have too much respect for the people in this room, too much respect for the men and women who work the assembly lines, to expect you to settle for anything short of the truth. And yes, we're in an election year. We're in a highly partisan, shrill, not overly pleasant election year. And when the rhetoric heats up, it gets tough separating the fact from the fiction. Well, I can tell you this: All the quick-fix schemes in the world will not get us where we want to go. Some of them have wonderful political appeal, but they're not going to get us where we want to go. And the plan that I've laid out today will help America take on the toughest competition and win. And so, let's not wring our hands, try to run away from a challenge. We've never done that. Let's do what America always does when challenge comes our way: Let's change America for the better. If we can install ourselves through action and principle as the undisputed leader of the free world, a leader with newfound credibility around the world, we can do the same thing here at home. So I ask you to join me in this challenge. Join me in supporting these objectives I have spelled out, and we can and will change America and help the lives of every single American worker and business person in this country. Thank you very much. And may God bless our wonderful country. Thank you. Governor Engler. Thank you very much, Mr. President, for that wonderful address and that economic plan for our country. And now we have some specific questions that have been submitted by members of the Detroit Economic Club and some special guests. The first one actually-- I'm sure that Chris McAllister from J.R. King Elementary School, who says ``grade six'' at the bottom of the card, is not a member but may be a guest here today. And he asks a question that's on the minds of a lot of people: President Bush, why did you choose a Texas plant over Willow Run?”