Jobs First: The Democratic Way to Balance the Budget

"There is a short poem that speaks of nameless souls who travel nameless rivers, a universal story of human toil and unknown hardships faced in solitude.

"Throughout my years in public life, I have often reflected on the role of public service and the trust that is placed in us by those we will never know and will never meet.

"And while most are not isolated from the support of friendship and family, for many, there is a growing sense of solitude from their government, a resignation that, for better or worse, they're on their own. And they'll have to make their own luck.

"This sentiment is difficult for me. I have always believed in the idea that we're all bound together. That opportunity is created for all. And that we rise and fall as one.
To me, it is the ultimate failure of government for anyone to feel so disenfranchised that they believe they live in solitude, that their hardships are unknown.

"But when you look at the state of our economy, the health of the American family, and the budget decisions being made by this administration, well, it's hard to blame anyone for feeling isolated.

"Three million jobs lost, more than the last 11 presidents combined. Nine million Americans out of work. Forty-three million Americans without health insurance and millions more who live in fear of losing their health coverage altogether.

"From a rising trade gap to the lowest reinvestment by American business since World War II, the Bush economy is failing the American people.

"Whether it's stolen pension funds lost to a culture of corporate greed, or clear favoritism for the wealthiest among us, this administration has traded fairness for fraud.

"Perhaps the greatest disappointment of all is the $5.6 trillion budget surplus that has simply vanished. A surplus disappeared into the fog of recession, irresponsible tax cuts, and a go-it-alone policy in Iraq that's driving up the deficit to historic highs and our country's morale to historic lows.

"How far we've fallen.

"The imperative in this presidential election is to change the course of our shared history. To lift this country up with a bold agenda of health care for all, energy independence from all, and fair trade with all.

"The citizens of this country deserve a commitment, not just to ethical leadership, but also innovation and imagination. To do that, we have to start at the beginning. We must renew our dedication to a national budget that allows us to dream again. And every American should feel a part of our national recovery.

"No more nameless souls on nameless rivers. We will be one nation again, with no one feeling apart from their country.

"I know this can be done because we've done it before.

"That $5.6 trillion squandered surplus was the ultimate result of the recovery we began in 1993. That was the year I led the fight in Congress to pass the first Clinton budget that got it all started.

"The principles behind that budget were simple and sound. Balance the budget by growing the economy for everyone. Ensure the wealthiest among us pay their fair share in taxes, and lower taxes on those who bear an unfair burden. And preserve those core government services that help people succeed and protect our most vulnerable.

"There were many Democrats in Congress who sacrificed their jobs to pass that 1993 economic plan. I'll never forget how the votes were tied with one last Democratic member left to vote. Her name was Marjorie Margolies-Mezvinsky. She walked down the aisle, looked around the chamber as if for the last time, and cast her vote.

"She voted yes. And the Republicans stood in the aisles and laughed and waved and sang 'bye-bye Margie.' She lost the next election. Many Democrats lost that next election because they stood firm for growth, expanded opportunity, fiscal responsibility, and the preservation of Medicare and Social Security.

"Those were courageous Democrats and their sacrifice was vindicated in the end. Our country will be forever in their debt.

"By passing a budget that clearly set us on a path for deficit reduction, the first sign of recovery was an immediate drop in interest rates, by as much as two full percentage points. That spurred investment and led to an increase in job creation, wage growth, and productivity.

"And thanks to low mortgage rates, home ownership increased to 67 percent of the working population the highest percentage ever.

"But interest rates are like the soft wind chimes that signal the approaching storm. Over the last three years, George Bush has taken us from a path of proven success onto a path of proven disaster. And why would we ever want to go back?

"Passing budgets driven largely by irresponsible and unfair tax cuts, George Bush has committed our country to the largest deficits in our history. And large deficits lead first to high interest rates, followed by reduced consumer confidence, job loss, inflation, and stagnation.

"I call it the Pessimism Effect.

"Business organizations, like the Committee for Economic Development, have described this phenomenon. If government borrowing is perceived as being out of control, inflation on the rise, and interest rates climbing, businesses will hold back from making new investments and families hold back from large purchases.

"Despite the recent productivity numbers, George Bush is presiding over one of the most pessimistic periods in our nation's history. He'll tell you that all is well, but until the American people see job growth, he's a cheerleading squad of one.

"On nearly every issue, this president prefers to see things in black and white. Well, that's nice, but it's too bad he can't tell black ink from red ink. Rather than simplistic moralizing, it's time we had a president who simply understood how to grow the economy for a change.

"Look back ten years and you'll see how we did it.

"In 1993, by asking the wealthy to pay their fair share in taxes, we combined deficit reduction with tax reduction for working families. Everything was geared toward growing the economy, and we attacked the problem from every angle possible. We didn't just cut spending and go home.

"We invested in education, student loans, job training, and health care. We
raised the minimum wage and lowered taxes and created incentives for small business. Of the 22 million new jobs created in the 1990s, over 80 percent were created by small business, and in that time, nearly six million new small businesses opened their doors.

"You can't have a great economy without individuals taking a chance on their own great idea. When you multiply that by six million great ideas, well, it was the power of the Optimism Effect. And if there was ever a time we needed optimism again, now is that time.

"Today, small businesses are being hammered. Small employers are being forced to drop health care plans to keep workers on board or to drop workers to keep their businesses afloat.

"Over a million small businesses have shut down and large employers are moving production and white collar jobs overseas. If this is George Bush's idea of a recovery, I'd hate to see his idea of a depression.

"When you look at the president's own words, if it wasn't so serious, it might be funny. On the one-year anniversary of his 2001 tax cut, the White House predicted the tax cuts would quote "help create 800,000 jobs by the end of 2002.

"Well, here we are at the end of 2003. I haven't seen those jobs. Have you? Maybe it's because they didn't tell us the jobs were going to be in India and China. We shouldn't need a passport to punch a time clock.

"Our 1993 economic plan invested in education, health care, science, and technology. We reversed twelve years of trickle-down economics and erased what was, at that time, the largest deficit in our history. By 2012, it was projected we would finally be debt-free for the first time since the presidency of Andrew Jackson.

"The contrast between the 1990s and today couldn't be more clear. By growing the economy, we extended the solvency of the Medicare and Social Security trust funds by a decade. We reduced unemployment and the welfare rolls to their lowest levels in 30 years. And helped send more children on to college than at any time in our country's history.

"We expanded childhood immunizations to their highest levels ever, invested over $10 billion dollars to create community empowerment zones, and raised wages at every level. After years of stagnant incomes, every income bracket experienced double-digit growth.

"Over the course of the 1990s, we built an economic platform upon which to reach ever higher. And most important of all, all of us were on the platform together.

"The key was reducing the deficit and growing the economy. There is no difference between 'tax and spend' and 'borrow and spend.' Both are equally unacceptable. Instead, we have to 'grow and save' because our country cannot sustain deficits indefinitely.

"President Bush thinks they're no big deal. In his mind, we've weathered deficits before. The difference is these are long-term structural deficits, not short-term cyclical ones. Eventually the shortfalls will have to be eliminated and you know the first place the Republicans always look - Social Security and Medicare.

"We have an even deeper hole to climb out of than we did in 1993. But regardless, as far as I'm concerned, Social Security and Medicare will not be cut. Not while I'm president.

"There's no reason to cut these vital programs to balance the budget. And that's not hope or conjecture. That's a fact. In 1993, we passed an economic plan that led to a balanced budget while protecting Social Security and Medicare. We did it then, and we can do it again.

"As president, my approach will be to combine the aggressive strategies of 1993 with equally aggressive health care and trade policies.

"The fact is, we can't fix the economy without fixing health care. Too many businesses aren't creating jobs because they can't afford the added health care costs.

"Too many Americans are unable to change jobs because they're afraid of losing their health coverage.

"And too many communities are staggering under the costs of uncompensated care. All of these forces combined are an enormous burden on our economy.

"My health care plan achieves universal health coverage within the existing system, stimulates the economy, and puts more money into the pockets of middle-class Americans.

"We pay for it by repealing the Bush tax cuts. Critics call that a tax increase. Well, look at the numbers. George Bush's tax cuts give each middle class American $700 to $800. My health care plan gives that same American $2,000 to $3,000. That's not a tax hike. As my kids would say, that's a 'no brainer.'

"My health care plan injects $326 billion dollars into the economy in the first three years alone. It would create 750,000 jobs, increase the GDP by 25 points per year, and increase real income for every household.

"For the average family, my plan provides triple the economic benefit of the Bush tax cuts along with affordable health care you can never lose.

"That's the Democratic way to get our economy moving again.

"Some of my opponents have said my health care plan costs too much. Well, I say the cost of doing nothing is far worse. And trying to fix only half the problem means the other half is no better off.

"I'm not interested in 'good enough.' I'm interested in doing what's good and right for every American.

"We have to stop picking winners and losers in our society and start lifting everyone onto the platform together.

"There's a reason why I'm the only candidate with a health care plan that covers everyone within the existing system.

"There's a reason why I'm the only candidate proposing an international minimum wage that raises global living standards and levels the playing field of global trade.

"And there's a reason why I'm the only candidate offering a universal pension that follows you from job to job.

"I believe the only way we beat George Bush is to offer bold ideas to the American people. We have to give people something to vote for and not just against.

"I don't think its enough to just be angry. As Democrats, we're all angry at the failures of this administration. But frankly, I'm not interested in who can shout the loudest. I'm interested in getting something done.

"If the heart of any presidency is who you're fighting for, then surely the muscle is how you pay for it.

"I've spoken before about how I disagree with Howard Dean on the critical issues of Social Security and Medicare. He considers Medicare 'one of the worst things that ever happened.' I consider it one of the best.

"To balance the budget, Howard Dean has supported cutting Social Security, veterans benefits, and Medicare. I would stand for Democratic principles and veto any such nonsense.

"And Howard Dean calls any comparison between him and George Bush 'beyond the pale.' Well, Howard Dean has gone to great lengths to link other Democrats with George Bush on the issue of Iraq.

"Despite great disagreements, I'll accept sharing this president's commitment to protecting Americans from terrorism. But I will never join Howard Dean in sharing this president's commitment to scaling back Medicare, Social Security, and veterans benefits.

"We as a party are better than that.

"A president can't be reckless with their words nor their deeds. And if cutting Social Security and Medicare in order to balance the budget isn't reckless, then I don't know what is.

"These are critical issues because they go right to the heart of how we would balance the budget as president.

"Howard Dean still won't admit he was wrong to advocate cutting Medicare and Social Security in 1995. In fact, he says today that we still need to 'limit the growth of entitlement programs.' And he said right here in Iowa that entitlements are still on the table for budget cuts in order to balance the budget.

"What Howard Dean and nearly every Republican on Capitol Hill refuse to acknowledge is that reducing growth is a cut. If Medicare and Social Security aren't keeping up with the cost of living, then you're cutting benefits.

"This is what the great battle over the government shutdown was all about. The Republicans wanted to 'reduce the rate of growth' for Medicare and Social Security. Democrats held the line and said no.

"Howard Dean is hiding his position on Medicare behind Republican code language. I have great respect for Howard Dean's supporters. I just wish he would show them the same respect and level with them on where he really stands.

"Some will say that we're quibbling over semantics. Or that this is all just Washington talk, and Howard Dean would never betray Democratic principles in the Oval Office.

"Well, Howard Dean often asks voters to judge him by what he did as Governor of Vermont. That he'll let his record speak for itself. Well, let's take him up on his offer.

"On August 9th of 1993, four days after that fateful budget vote in the House of Representatives and one day before President Clinton signed his economic plan into law, Howard Dean announced a series of mid-year budget cuts that shocked the state of Vermont.

"State revenues had come in a little below expectations, so he decided that cuts had to be made. He cut health care services for 2,500 low-income disabled adults. He dropped dental coverage for over 12,000 Medicaid recipients. Monthly welfare benefits were cut. And for those nursing home patients who were forced to go the hospital, Medicaid would no longer pay to hold their bed for them back at the nursing home.

"In all, Howard Dean cut $1.2 million in Medicaid funding, which also meant eliminating another $1.8 million in federal matching funds.

"The next day, August 10th, there was a story in the Burlington Free Press about a family with six children. The father had diabetes, needed a kidney transplant, and had been unable to work.

"Their monthly food stamps usually only provided food for two weeks. So they relied on the Aid to Needy Families with Children program to buy other necessities.

"After the mother heard about Governor Dean's cuts, she said 'we're not going to be able to buy some of those extra things.' By extra things, she meant toilet paper, soap, and toothpaste.

"She had also taken her son to the dentist several times because quote 'the filling keeps falling out. I guess I won't be able to take him any more.' As the Burlington Free Press reported it, she concluded by saying that with Howard Dean as Governor, 'I don't see the prospect of things getting any better.'

"To leave a mother of six and the wife of an ailing husband with little or no hope is not my idea of public service.

"In the end, Howard Dean was forced to back down by state legislators and by Vermont Legal Aid, which sued him for making cuts without the proper authority.

"This is a troubling story, but I'm sure some will think this was an isolated incident. Or maybe it's being blown out of proportion. Well, again, look at Howard Dean's entire record.

"In 1993, Howard Dean cut special education funding by a million dollars and refused to increase education funding by the $7 million the State Board of Education said was critically necessary.

"In 1994, he increased state spending in nearly every area, but froze funding for Medicaid, education, and special education. Children with special needs and ailing low income citizens didn't warrant even a meager three percent increase in funding.

"In 1995, Howard Dean tried to cut nearly a million dollars from the Aid to the Aged, Blind, and Disabled Program. The state legislature refused. Shortly afterwards, he made similar cuts without the legislature's approval, and again he was sued. A judge ordered him to restore the funding.

"In 1996, Howard Dean tried to cut over $26 million from Medicaid, and four times as governor, he tried to eliminate prescription drug assistance for seniors. The very same program he now proclaims across the country.

"Time after time, when faced with budget shortfalls, Howard Dean's first and only instinct was to cut. Cut education, cut prescription drug coverage, cut Medicaid funding, cut aid to the elderly, blind, and disabled.

"Howard Dean wears his bravado as a budget cutter like a badge of honor. But to me, where's the honor in saying quote 'we're willing to go after our own people's education, health, and welfare.'

"There is no place for governance without compassion. You can be proficient without empathy, but human lives deserve something more.

"This is the measure of the man who would be president. I believe in a very different approach from Howard Dean. When we were faced with the same set of circumstances in 1993 at the federal level, we took a very different course.

"Fiscal responsibility is not amputation. It's finding the right balance of optimism, incentive, fairness, and opportunity. It's rising to a fiscal challenge with imagination and compassion, not clinical detachment and disdain for the unfortunate. It's asking the most fortunate to do their part so we can invest in everyone's ability to succeed.

"We have a great responsibility ahead of us. We have a nation of hopeful people seeking all that is in us.

"When Robert Service wrote of nameless souls on nameless rivers, he concluded his short poem with hopeful words, recognizing the humanity and worth of a life spent in obscurity.
'Then will I count this loving toil well spent. Then will I dream awhile - content.'

"We all have dreams. We all have worth. We all have a purpose. And we will all be remembered.

"I'm running for president because I believe in the humanity of a life less fortunate. And I believe in a country where no citizen is alone.

"Thank you very much and may God bless these United States of America."