[Congressional Record Volume 140, Number 133 (Wednesday, September 21, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 21, 1994]

                E X T E N S I O N   O F   R E M A R K S


                 THE MIDDLE CLASS AND THE 103D CONGRESS

                                 ______


                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                     Wednesday, September 21, 1994

  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, August 31, 1994, into the Congressional Record:

                 The Middle Class and the 103d Congress

       One of the strengths of America has long been its middle 
     class. This group, which includes the majority of Americans, 
     has helped define our identity and goals: hard work, 
     opportunity, dedication to family and community, and support 
     for the traditional values of our country. The promise of 
     opportunity, mobility, and freedom that the middle class 
     represents has for most of our history inspired optimism at 
     home and envy abroad. Those in other countries increasingly 
     recognize that a strong middle class makes a nation 
     wealthier, more democratic, and more peaceful.
       Middle-Class Concerns: Yet I sense that lately many middle-
     class Americans feel largely forgotten, especially by their 
     government. They tell me they fear the economic security they 
     have worked so hard to build is threatened by unemployment, 
     or by uncertain health and pension benefits, or by excessive 
     government spending. More and more, they feel that crime 
     threatens their personal security and that problems in the 
     schools threaten their children's future. The question they 
     put so often to me is: who speaks for us?
       The middle class has legitimate concerns. Overall economic 
     growth and job creation have been hampered in recent years by 
     soaring federal budget deficits. Even with the recovery, the 
     economic landscape has undergone fundamental changes, 
     including the decline in high-paying manufacturing jobs. 
     Wages have fallen for those with less education, and 
     companies are reducing employee benefits as costs of health 
     care and insurance go up. Violent crime has become a concern 
     for all Americans. Even our public schools, which continue to 
     offer quality education to many, are increasingly affected by 
     violence, drug and alcohol abuse, and falling standards of 
     academic achievement.
       Many affected by these changes often feel that government 
     doesn't care. They believe that the interest of government 
     has become that of the special interests, while the concerns 
     of the majority of voters are largely overlooked. They 
     believe that federal dollars go mainly to the rich and to the 
     poor, or to people overseas.
       Policy Steps: Of course, the federal government alone 
     cannot solve all of these problems. Nevertheless, middle-
     class Americans have a right to expect government to be 
     responsive to their concerns and to use their resources 
     responsibly. At the same time, it is important to keep in 
     mind that many of the largest and most successful federal 
     programs--Social Security, Medicare, the home mortgage 
     interest deduction--benefit primarily middle-class Americans. 
     Despite changing economic times, these programs remain 
     strong.
       In 1994, spending on Social Security will total $320 
     billion; an additional $160 billion will be paid out for 
     Medicare. Tax benefits for the home mortgage interest 
     deduction total $50 billion. Benefits for employer 
     contributions to their workers' health and pension programs 
     add another $100 billion. By contrast, $14 billion will be 
     spent on Aid to Families with Dependent Children, the 
     principal cash welfare program, $28 billion on food stamps, 
     and $14 billion on foreign aid. The vast majority of federal 
     benefits go not to the rich or the poor, but to the middle 
     class.
       In addition to safeguarding these programs, a number of 
     other steps were taken during the 103rd Congress to address 
     middle-class concerns. First, Congress made a big dent in the 
     federal budget deficit, which in turn has helped boost job 
     creation. The middle class is keenly interested in good-
     paying jobs. The 1993 budget package cut the projected 
     deficit in half. Deficit reduction helps keep interest rates 
     low and means more savings and investment, which in turn 
     means more good-paying jobs. Second, Congress took steps to 
     help the American worker adjust to the changing economy. 
     These include extending emergency unemployment benefits for 
     1.9 million Americans and providing grants to industry to 
     develop new technologies that stimulate high-wage jobs. 
     Measures to increase credit availability and provide capital 
     gains tax cuts for small businesses will help generate 
     additional jobs. A new proposal would consolidate and improve 
     federal job training programs. Third, bills were passed to 
     help improve access to quality education. The Student Loan 
     Reform Act simplifies the college loan process and increases 
     the number of scholarships available. Another new law 
     encourages the setting of voluntary educational standards to 
     ensure our future competitiveness and supports programs to 
     help the non-college bound move into high-skilled, high-wage 
     jobs. Fourth, Congress has now passed tough new crime 
     legislation, mandating life imprisonment for those convicted 
     of a third felony--the so-called ``three strikes and you're 
     out'' provision. It also provides grants for thousands of 
     additional police on the streets and for state and federal 
     prison construction. Fifth, the debate on serious health care 
     reform is underway. The issues are complex and no one 
     proposal yet has the backing of a majority of Members of 
     Congress. Nevertheless, work continues on crafting a bill 
     which would preserve the best of our current system while 
     containing costs and increasing access of Americans to 
     quality health care. Sixth, Congress is beginning to look at 
     ways to ease the tax burden on the average American. Tax 
     relief could take many forms--a per-child tax credit, further 
     reduction in the capital gains tax, or expanded individual 
     retirement accounts. Seventh, Congress is working on 
     legislation to reform campaign financing, restrict gifts to 
     Members of Congress, and tighten controls on the activities 
     of lobbyists. These reforms would reduce the disproportionate 
     role that money plays in American politics. The House passed 
     a bill to bring Congress into compliance with a number of 
     major federal laws. Additional reform legislation, which I 
     sponsored, will increase congressional efficiency and 
     accountability.
       Conclusion: Much needs to be done in the final weeks of 
     this session. Yet the potential is there for a solid record 
     of accomplishment on issues of concern to the middle class. 
     Americans know that government cannot guarantee prosperity 
     for everyone and that there are limits to federal resources. 
     But they have a right to expect that government will be 
     responsive to their needs. They have a right to believe in 
     the promise that has kept American vibrant and strong--that 
     their dedication and hard work will be rewarded with a better 
     future for themselves and their families.

                          ____________________