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 com-munity 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 1992. (NCRC)
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 for.
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
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.
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