An Overview of President Clinton's Trip
To America's New Markets
November 4-5, 1999
Under President Clinton and Vice President Gore, America is Enjoying a
Time of Remarkable Economic Expansion. The strength and historic
duration of our current economic expansion has helped bring economic
opportunity to millions of Americans once cut off from the economic
mainstream. Wages are rising for all income groups and welfare rolls
are shrinking. The economy has created more than 19 million new jobs
since January 1993. Unemployment has dropped from 7.2 % to just 4.2 %.
But there is more work to do, particularly in those communities that are
economically underserved, such as Newark, Hartford, rural Arkansas, and
Englewood (in Chicago).
President Clinton's Trip will Focus Attention on America's New Markets -
Untapped Areas for Potential Investment. November 4-5, President
Clinton will lead a delegation of CEOs, Members of Congress and Cabinet
Secretaries on a second trip this year of untapped markets in the
Newark, NJ -- In Newark, the President will highlight how professional
sports organizations play a leadership role in catalyzing development
efforts in underserved communities. The President will highlight the
positive partnerships with representatives from the NFL, Major League
Baseball, the NBA and owners and players from the New Jersey Nets. He
will also highlight the significant existing and new commitments of the
CEO community of Newark.
Hartford, CT -- In Hartford, the President will highlight how
corporations and universities can invest in New Markets. The President
will appear with corporate leaders from Aetna, Citigroup, and other
companies, as well as the President of Trinity College to announce new
investments and highlight ongoing private/public partnerships that are
having an impact on Hartford.
Hermitage, AR - In Hermitage, the President will highlight how to
build on economic opportunities in rural agriculturally-oriented New
Markets. The President will highlight the way that the Hermitage Tomato
Cooperative enabled farmers, many of whom were on the verge of
bankruptcy, to become suppliers for Burger King and other major
retailers, as well as other new commitments.
Englewood, Chicago, IL - In Englewood, the President will highlight
the partnerships between community leaders, the private sector, and
others to help boost private investment in New Markets. The President
will be joined by corporate and community leaders to make new
announcements, and to highlight existing partnerships that have already
attracted new investment to Englewood.
These Communities Are in Need of Capital and Investment. This tour will
spotlight the great potential for growth, profit, and economic
opportunity in these untapped markets. It will also show how long-term
partnerships can be used as a model for tapping this potential.
Newark -- The population of Newark, the largest city in New Jersey, has
dropped from 329,248 in 1980 to an estimated 267,823 in 1998, a 18.7 %
drop, while during that same time period, the overall U.S. population
grew by 19.3%. (Bureau of the Census). The poverty rate, which increased
from 26.3 % in 1989 to 35.3 % in 1993, dropped to 30.5 percent in 1995.
(Bureau of the Census). The city's unemployment rate for 1998 was 9.9%,
down from 15.2% in 1993, but more than twice the national average and
the 4.1% unemployment rate of Newark suburbs.
Hartford -- The population of Hartford, has declined slightly from
136,392 in 1980 to an estimated 131,523 in 1998, a 3.6 % drop. (Bureau
of the Census). In 1990, Hartford's population was 36.3%
African-American, 31.0% Hispanic and 30.7% white (non-Hispanic). (Bureau
of the Census). The poverty rate, which increased from 27.5 % in 1989 to
38.3 % in 1993, dropped to 35.2 % in 1995. (Bureau of the Census). The
city's unemployment rate declined from 10.8 % in 1993 to 6.7 % in 1998.
(Department of Labor).
Hermitage, AR -- Hermitage is a town of about 700 people in Bradley
County, Arkansas. For Bradley County in June 1999: the unemployment
rate in Bradley County was 9.3 %, compared to 4.3 % nationally; the
poverty rate in Bradley County was 20 % and the median household income
in Bradley County was $21,644. (Economic Research Service, USDA)
Englewood - The population in Englewood was estimated to be 39,780 in
1998. (Claritas) The unemployment rate for the Englewood community was
14.8 % in 1998, compared to 5.7 % for the city of Chicago (Illinois
Department of Employment Security). Median household income is estimated
to be about $19,000 compared to $32,400 for the city of Chicago. (Metro
Chicago Information Center - Metro Survey, 1999). Retail sales in
Englewood were estimated to be $105 million in 1997. (Claritas) About
half of the population of Englewood is estimated to receive food stamps,
compared to 15 percent for the city. (Metro Chicago Information Center -
Metro Survey, 1999).
A Record to Build On. President Clinton's effort expands on the
innovative approach to community empowerment that he and the Vice
President have pioneered for nearly seven years.
Creating the CDFI Fund. In 1994, President Clinton proposed and
signed into law the CDFI Fund which, through grants, loans, and equity
investments, is helping to create a network of community development
financial institutions in distressed areas across the United States.
Reforming CRA. In 1995, the Clinton Administration reformed the CRA
regulations to emphasize performance. The private sector has pledged
more than $1 trillion going forward in loans to distressed communities
and more than 95% of these financial commitments have been made since
Keeping CRA Strong & Relevant Under Financial
Modernization. Under the new banking bill, for the first time ever, a
bank's CRA rating will be relevant to its merger or expansion in
non-banking activities - a new protection the President fought very hard
Creating the Empowerment Zones. President Clinton and Vice President
Gore proposed and signed Empowerment Zone legislation in 1993
establishing 105 EZs and ECs across the country. Under the leadership
of the President's Community Empowerment Board, chaired by the Vice
President, the EZ/EC effort has generated billions of dollars in new
private sector investment in community development activities.
Brownfields and Second Round of EZs. The Administration's Brownfields
action agenda has marshaled funds to clean up and redevelop up to 5,000
properties, leveraging billions of dollars in private investment and
creating and supporting 196,000 jobs. The President has also signed
into law a second round of EZs - 15 new urban and 5 new rural zones.
Youth Opportunity Initiative and GEAR-UP. In addition to expanding
the Earned Income Tax Credit and raising the minimum wage, President
Clinton has focused on bringing economic opportunity to young people
through the Youth Opportunity initiative and GEAR-UP program. The Youth
Opportunity initiative provides skills training leading to job
opportunities for out-of-school youth aged 16-24. GEAR-UP helps
disadvantaged high-school students prepare for college through mentoring
and other forms of assistance. The President is fighting to keep these
programs in the budget.