UNDER PRESIDENT CLINTON:
THE AMERICAN ECONOMY REMAINS SOLID AND STRONG
October 30, 1998
America's Economy Continues To Grow Steady and Strong. In the third
quarter, GDP growth was a strong 3.3 percent (at an annual rate). The
evidence is clear: America's economy remains solid, with unemployment
at a 28-year low, core inflation at a 32-year low, and the national
homeownership rate the highest in our history.
Strong 3.3 Percent Economic Growth In Third Quarter. GDP growth in
the third quarter was a strong 3.3 percent (at an annual rate).
Since President Clinton took office, growth has averaged 3.3 percent
per year -- relative to 1.3 percent per year under President Bush
and 2.4 percent per year during the Reagan-Bush years.
Nearly 4 Percent Private-Sector Growth Under President Clinton.
Since President Clinton took office, the private sector of the
economy has grown an average of 3.9 percent per year -- compared to
3.0 percent under President Reagan and 1.3 percent under President
First Investment-Led Expansion In Three Decades. While investment
in business equipment rose only slightly last quarter, it is up 13.3
percent over the past year. And since President Clinton has taken
office, business investment has increased faster -- 12.2 percent per
year -- than under any President since Kennedy.
Inflation -- Lowest Since 1961. In the third quarter, the GDP price
index rose 0.8 percent at an annual rate. Over the past year,
inflation rose just 0.9 percent -- the smallest increase in 37 years.
President Clinton's Three-Part Economic Growth Strategy Is Working.
Today's numbers show that we should continue with President Clinton's
Maintaining Fiscal Discipline. Nearly six years ago, President
Clinton put in place an economic plan that cut the deficit, helping
to lower interest rates, raise business investment, and create a
virtuous cycle of economic activity that helped move America from a
deficit of $290 billion in 1992 to the first budget surplus in 30
years. Earlier this week, President Clinton announced that the
budget surplus for last year was $70 billion. Now, we must reserve
every penny of any surplus until Social Security is reformed.
Investing in the American People. For six years, the President has
worked to expand educational opportunity because education and job
training are vital to a strong economy. Earlier this month, the
President forced Republicans in Congress to adopt a budget that made
a strong down payment on hiring 100,000 new, high-quality teachers
to reduce class sizes, expanded after-school programs, invested in
child literacy and college mentoring for middle-school students, and
expanded investments in education technology, Head Start, and
Opening Markets Abroad and Leading The Global Economy. More than
one-quarter of America's economic growth during the past five and a
half years has come from increased exports. Today's economic report
shows that the health of the world economies affect the health of
America's economy. That's why the President has worked with
Congress to meet our commitment to the IMF, with a package of tough
reforms to make the IMF more accountable, more focused on growth,
and better equipped to address the economic crisis of the 21st
century. Now the IMF is stronger and ready to act. We must make
certain that when it acts, it acts to promote global growth and to
limit the reach of the financial crisis. In turn, this will foster
a stronger economy here at home and help our own workers, farmers,