A New Direction

When our Founders boldly declared America's independence
to the world and our purposes to the Almighty, they knew that America
to endure would have to change; not change for change sake, but change
to preserve America's ideals: life, liberty, the pursuit of happiness.

Bill Clinton
Inaugural Address
January 20, 1993
                 

Throughout our history, at every critical moment, Americans
have summoned the courage to change, to adapt our nation's policies
and institutions to address new problems in a changing world. Today
we must once again find the courage to change. We must shift our energies
from the Cold War priorities of the past to the economic priorities
of the future. And we must reverse the distorted trends of the last
twelve years slow growth, stagnant family incomes, growing inequality,
an increase in poverty among children, soaring health care costs,
and rising fiscal deficits as far as the eye can see.

It is not enough simply to stay the course. We must
change our course. In the words of Abraham Lincoln, "We must think
anew and act anew ... and then we shall save our country."

Americans have an underlying vision that has sustained
us through previous challenges and that will sustain us through the
challenges we now confront. It is a vision of economic and political
freedom, of the rewards of hard work and initiative, of a fundamental
sense of fairness, of the family and the community as the foundations
of our strength, and of every generation's obligation to create a
better life for the one that follows.

In recent years, our leaders lost sight of this vision.
They embraced trickle-down policies that benefitted the wealthy at
the expense of the middle class and the working poor. We have deluded
ourselves that somehow economic growth and fairness are at odds, when
in fact they go hand in hand. While the privileged few have prospered,
millions of Americans who worked hard and played by the rules have
been left behind.

Our family structures have weakened, often as a result
of economic adversity and government negligence. Greed and financial
scheming have eclipsed the virtues of hard work and sacrifice for
the common good. Debt has soared as individuals, businesses, and
governments have lived beyond their means. Our commitment to invest
in the future and to bequeath a promising future to our children has
somehow fallen by the wayside.

In this report, we share our economic vision for America.
We attempt, candidly and forthrightly, to explain the challenges that
face us. For too long, bland pronouncements and fiscal gimmicks have
obscured harsh economic realities. We offer, instead, a detailed plan
that can, if we work together, transform our vision and values into
reality.

First, we seek an America that can provide rising living
standards for all of its citizens. To achieve this, we must fundamentally
shift our spending priorities away from consumption to investment.
Investment is the key to a growing economy that produces good jobs
and high-quality goods and services for ourselves and for the international
marketplace. We must invest more in our people, our plant and equipment,
our infrastructure, and our research and development if we are to
restore the American dream for our children.

Second, we seek an America that provides opportunities
for all who want to work hard and play by the rules and that offers
assistance to those who want jobs but cannot find them. We seek meaningful
opportunities for all Americans not just for a privileged few.
We must give all of our people a chance to acquire the skills they
need to succeed, understanding that in today's world, education is
a lifelong process. We must support parents in their efforts to balance
the demands of work with the needs of their children. And we must
commit to fundamental change in our health care system, to control
skyrocketing costs and provide security for every individual and family.

Third, we seek an America that fosters a spirit of responsibility
and service to community among its citizens. People must feel responsible
not only for improving their own lives, but also for helping those
in need. We must reject the idea that the individual stands in opposition
to the community and embrace the idea that we are all members of the
same community. There is no them; there is only us.

Fourth, we seek an America in which the government is
viewed not as the enemy of prosperity but as a partner with the private
sector working to foster growth. Only a government that works can
ensure that view. Government must be accessible to those it serves
and to those who pay its bills. It must be responsive to their concerns.
It must be run efficiently and well with respect for the tax dollars
on which it depends. It must be financed by a fair tax system that
rewards work and requires a fair share from those most able to pay.
And it must pay its way and live within its means.

Fifth, we seek an America that recognizes the importance
of the environment to the quality of our life, rejecting false choices
between economic prosperity and environmental quality. We must demand
both for our future, not sacrifice one for the other.

Sixth, we seek an America that is prosperous and confident
enough to continue its role as a world leader. The nations of the
world look to us to strengthen the international trading system, to
preserve the global environment, to nurture the growth of democracy,
and to maintain global peace and security. Whether we will continue
to shoulder these global responsibilities depends on whether we
successfully overcome the economic problems we face at home.
If we fail, America, like other global powers that preceded it,
will ultimately be defeated not by external power but by internal weakness.

Productive jobs and rising standards of living; opportunity
and fairness for all Americans; responsibility and community; a government
that works and that continues to meet its global commitments. That
is our vision. To achieve it, we must change our course.