Remarks at Michigan State University in East Lansing, Michigan

Weekly Compilation of Presidential Documents, Jan 15, 2001

We began with a clear strategy to get the economy going that it had three elements: Get the deficit down and get rid of it; in vest more in our people; sell more American goods and services around the world. The American people did the rest. We are still experiencing the longest economic expansion in our history. Our economy is 50 percent bigger than it was 8 years ago. When I took office, the national unemployment rate was 7.3 percent, 7.4 here in Michigan. Now, it is 4 percent--it's been below 5 percent for 3 years--and it's 3.7 percent in Michigan.

We have--that's the lowest overall unemployment rate in 30 years, even though we've got more of our people participating in the work force; the lowest female unemployment rate in 40 years; the lowest African-American and Hispanic unemployment rate ever recorded.

And unlike some of our previous recoveries, this rising tide is lifting all boats. In the last 3 years, people at all income levels have done better, and the highest percentage increase in income has come in the lowest 20 percent of the working population of America in the last 3 years. Poverty is at a 20-year

low; homeownership at an all-time high. In 1992, Michigan State graduates who found jobs had an average starting salary of just under $26,000. The average salary for last year's graduate was over $36,000.

Now, how did this happen? Well, first, we said we would get rid of the deficits and begin to attack the debt. And keep in mind--let me just say this again--in the entire history of the country, going back to 1776, the debt of America quadrupled in the 12 years before we began to work. What's happened since? We started with a $290 billion deficit. This year, we had a $240 billion surplus. We've had the biggest back-to-back surpluses in history. By the end of this fiscal year, we will have paid down more than $500 billion in our national debt. We're on track to be debt-free by the end of the decade, for the first time since 1835.

Why should you care whether your Government's out of debt? Here's why--two reasons. First, economically, if the Government is paying down its debt instead of borrowing money, that means there is more money left for you at lower interest rates for college loans, car loans, home loans, more money for business loans at lower interest rates--means more businesses more jobs, higher pay raises, and a higher stock market. The average American homeowner in America is now saving $2,000 a year in lower home mortgages because we're paying down the debt instead of running it up. It makes a huge difference to your future which way we're going.

The second reason, very important to Michigan State where you've got a lot of people who depend on student aid, where you compete for research funds from the Federal Government, we spend over 11 cents on the dollar--nearly 12, and it was headed to 15 when I took office--we spend almost 12 cents on the dollar of every tax dollar you pay to the Federal Government in interest on the debt. It is the third-biggest item in the Federal budget, behind Social Security and defense.