[Congressional Record Volume 142, Number 25 (Wednesday, February 28, 1996)]
[Senate]
[Pages S1385-S1386]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TASK FORCE ON JOBS
Mr. DORGAN. Mr. President, we had this morning a task force that
involved its work on the issue of jobs over in the Dirksen Building.
I and Senator Daschle and Senator Bingaman from New Mexico, who is
chairman of this task force, were a part of it. I wanted to point out
some of what we are trying to do.
This issue of Pat Buchanan moving around this country talking about
jobs is not an accident. He understands what many of us understand--
that the center pole of the tent for the economic debate in this
country ought to be jobs. I happen to think Pat Buchanan has a few dark
sides to his debate. I do not like some of the influences which I see
and some of the references. But the fact is on the issue of jobs, it
seems to me, the voters of New Hampshire and others responded to the
issue of jobs and economic opportunity. And it is something that we
have been working on in our caucus under the leadership of Jeff
Bingaman now for about a year. Today, we are unveiling a series of
recommendations on the issue of creating jobs in our country.
We have an interesting economy in America. America is still a strong
country, and a wonderful place. Nobody wants to leave. People want to
come here. We have some folks running for the Presidency who I think
want to build a fence down there to keep people out of our country.
What does that say about our country? It has a lot of problems but it
is also a wonderful place and a magnet where a lot of people want to
come to. We have an economy, however, where economists measure economic
progress by taking a look at car wrecks, heart attacks, and
earthquakes. There are economists down at the Federal Reserve who are
measuring economic strength by examining car accidents, heart attacks,
and earthquakes. Hurricane Hugo added one-half of 1 percent of GDP to
this country because this country measures its economic health by what
it consumes and not what it produces.
In the long run the question of whether this country has a strong,
vibrant, healthy economy will depend on how we produce, what we
produce, and whether we have a strong manufacturing base. We have an
economic system that has been redefined in our country in recent years
by large international economic organizations. And they have redefined
it by saying we choose to want to produce. Whether it is to produce and
sell in established markets, we choose to access 20-cent an hour labor,
or $1 an hour labor, and sell the shoes, or the products from that
labor, the shirts, the belts, the cars in Pittsburgh, or Tokyo, or
Fargo, or Denver. The problem is that disconnects. That is a global
economic circumstance that we probably cannot
[[Page S1386]]
change very much in the broader sense but that we address with respect
to additional rules because it disconnects the income from the source
of production from the consumers who are going to be consuming the
benefits, or the fruits of production.
The engine of progress in this country, in my judgment, is how do we
create new, good-paying jobs? When people sit at the dinner table at
night and talk about their lives as a family, the only question that
matters is, ``Are we increasing our standard of living?'' And,
regrettably for 60 percent of the American families, the answer is,
``No. We are working harder.'' And over the last 20 years we are making
less money, if you adjust it for inflation. There is no Government
program, none that is as effective as a good job, or a substitute for a
good job, that pays well.
Now, the question is, Why are we losing manufacturing jobs? Why are
jobs moving out of our country? Why are jobs going overseas? And what
can we do about it?
First, fair trade and fair competition. Our country ought not be
ashamed ever to stand up and say we demand fair trade. We expect to
compete, but we demand the competition be fair as well. When I was a
kid walking to school, I knew every day that our country could win just
by waking up; we were the biggest, the strongest, the best, and we
could win the economic contest with one hand tied behind our back. But
times are different, and we cannot do that today. And we ought to
insist that fair competition and fair trade be hallmarks of our
economic circumstances in this country.
Second, it seems to me we ought to change our Tax Code. I introduced
some legislation, and I am introducing more that says let us stop
subsidizing movement of jobs overseas, this insidious, perverse
provision in our Tax Code that says, if you close your plant here and
move your jabs to a tax haven overseas, we will give you a little
bonus. We will give you a tax break. We have already voted on that on
the floor of the Senate, and I was unable to pass closing the tax break
that says we will reward you if you move your jobs overseas. But guess
what. You are going to get a chance on a dozen more occasions this year
to vote on the same thing. We ought to shut down the tax breaks in our
Tax Code that say to people: Move the jobs overseas and we will reward
you.
Third, we ought to provide some basic incentive to create jobs here,
and I propose a 20 percent payroll tax credit for those who create new
net jobs in this country. Let us shut off the incentive to move jobs
overseas and create incentives to create new jobs in this country.
I am not much interested in how many jobs exist in Japan or how many
jobs exist in Germany or how many jobs exist in Mexico. I am interested
in how many jobs exist in our country. This is an economic competition
in which we are involved. It is a competition with winners and losers.
It is not a circumstance where everybody wins. It is a circumstance
where, if the rules are unfair and the competition is not fair, there
are winners and losers. We are losing our manufacturing base in this
country, and we can do something about it, the quicker the better. The
task force that was headed by Jeff Bingaman from New Mexico is a task
force that makes serious and specific recommendations that will try to
create the incentives to create new jobs in this country--not
elsewhere; in this country--in the future. The currency of ideas that
are represented by the recommendations of that task force will be a set
of ideas we will discuss over and over again in this Congress in 1996.
It will not surprise anyone to understand the anxiety that exists in
our country today. People are worried. They know that they are less
secure in their jobs. You can work 20 years and be laid off without a
blink by some enterprises. Their jobs pay less adjusted for inflation
than they did 20 years ago in many cases. So they are worried about
fewer jobs, jobs that pay less, and jobs with less security, and they
want something done about it that increases the standard of living in
this country.
Government cannot wave a wand to make that happen, but the rules and
the debate about how you create good jobs and how you stop the
hemorrhaging of jobs from our country moving overseas is a debate that
we ought to have right here in the center of the Senate.
We are going to have an Olympics in Atlanta in August, and everybody
is going to be rooting. We will root for all the wonderful athletes all
around the world, but especially we will decide as Americans that those
men and women wearing the red, white and blue are our team and we want
them to do well. There is another competition that is not on the field
of athletics. It is in the field of economics, worldwide economic
competition to decide who wins and advances with new jobs and better
opportunity and who suffers the turn-of-the-century British disease of
long economic decline, who wins and who loses.
Frankly, I want us to have a plan. I want our team to win. I want our
team to decide that we will compete and we will win, and we will make
sure the rules are fair as we compete. That is the purpose of trying to
put together a series of steps that say our intent is to try to
encourage new jobs created in this country and try to discourage,
through the insidious provisions in our Tax Code, the export or the
shipment of good jobs in America overseas. We ought not pay for that.
We ought not provide incentives to move jobs elsewhere. I tell you
what. Anybody who thinks that makes sense is not thinking. And I hope
we will get the Senate to think a lot about that in 1996.
Mr. President, we will be discussing at some greater length the
legislation that I have introduced, and we will discuss at greater
length the recommendations of the high wage task force of Senator
Bingaman in the future as well. I look forward to those discussions.
Mr. President, I yield the floor.
Mr. SPECTER addressed the Chair.
The PRESIDING OFFICER (Mr. DeWine). The Senator from Pennsylvania is
recognized.
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