[Congressional Record Volume 150, Number 43 (Wednesday, March 31, 2004)]
[Senate]
[Pages S3407-S3448]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PERSONAL RESPONSIBILITY AND INDIVIDUAL DEVELOPMENT FOR EVERYONE ACT
The ACTING PRESIDENT pro tempore. Under the previous order, the
Senate will resume consideration of H.R. 4, which the clerk will
report.
The assistant journal clerk read as follows:
A bill (H.R. 4) to reauthorize and improve the program of
block grants to the States for temporary assistance for needy
families, improve access to quality child care, and for other
purposes.
Pending:
Boxer/Kennedy amendment No. 2945, to amend the Fair Labor
Standards Act of 1938 to provide for an increase in the
Federal minimum wage.
The ACTING PRESIDENT pro tempore. The Senator from Oklahoma.
Mr. NICKLES. Mr. President, I again thank my colleague from North
Dakota for his cooperation and I look forward to the conference.
I see my good friend from Massachusetts is here. I know he offered an
amendment on minimum wage. I know
[[Page S3408]]
he would be disappointed if I didn't respond to his proposal. While he
is here, I want to make a couple of comments about the amendment which
I believe is pending before the Senate. It may have been set aside, but
I believe it is pending, Senator Kennedy's amendment, which increased
the minimum wage from $5.15 to $7 an hour. Is that the pending
amendment?
The ACTING PRESIDENT pro tempore. The Senator is correct.
Mr. NICKLES. Mr. President, I have great respect for my colleague
from Massachusetts. If the State of Massachusetts wants to increase the
minimum wage to $7, or $8, let them do it. What may work in Boston
probably does not work in my hometown of Ponca City, OK, or maybe in
Sallisaw, OK.
I used to work for minimum wage. I made minimum wage when it was
$1.60 an hour in 1968. My wife and I made that.
That was our first job when we married. And by having a job, we could
start climbing the ladder.
I am afraid Senator Kennedy's amendment which says let us increase
the minimum wage from $5.15 to $7 an hour is going to hurt some of the
people he professes to help. I heard his comment yesterday that this is
going to lift a lot of people out of poverty, or help them. If that is
the case, let us not stop at $7. Let's make it $10 or $20. If you can
lift people out of poverty by mandating a higher wage, why in the world
would we stop at $7 an hour? I frankly want people to make more than $7
an hour. Why in the world would we set this level? If you are actually
going to be eliminating poverty or lifting people out of poverty, let
us increase it dramatically more. Let us make it $20 an hour.
I do not know if a second-degree amendment is in order. Maybe we
should have an amendment to make it $10 an hour. I would like for
everybody in America to make at least $10 an hour. My daughter who
works close to minimum wage and is a college student would love to have
$10 an hour. But I am not sure she would have a job.
Maybe in Boston they could pay a student $10 an hour working part
time in a clothing store on weekends. Maybe they could pay that much,
and maybe they can't. But I know one thing: In some rural areas they
cannot. That student who may be working not in Boston, maybe not going
to an Ivy League school, but maybe going to a vo-tech school in rural
South Dakota where they can't pay $7 an hour, would be out of luck.
Maybe it is a minority student in New York City, or maybe in southern
California who can't get a job at $7 an hour. Maybe that job is
flipping hamburgers. People always make fun of working at one of those
fast-food places, how terrible that is. It is a job. Maybe McDonalds
can afford to pay for it, but a lot of places can't. Maybe it is
pumping gas or sacking groceries.
They may have a job now, let us say, making $5.15, or maybe $5.50, or
$6. But if we pass this amendment, we are saying if you don't make $7,
we would rather you be unemployed. It is against the Federal law. Even
though it is to your mutual benefit and the benefit of whoever is
hiring you to make $6.50 an hour, we are going to say no because of
Senator Kennedy's amendment. If you do not make $7 an hour, you are
unemployed.
I find that to be a bad economic argument. I am afraid it would hurt
a lot of people. I am afraid a lot of lower income people might not
start climbing the ladder.
My wife and I worked for minimum wage. We worked for a janitor
service in Stillwater, OK for minimum wage. We did that for a couple of
months. I asked for a raise. We got a very small raise. As a matter of
fact, we quit and started our own janitor service. We learned enough to
start our own janitor service.
My point being not to lift this economic ladder so high that some
people can't get on. By saying if you make less than $7 an hour, if the
job can't pay $7 an hour, we don't want you to have that job, maybe as
a result of that we don't have people pumping gas. Almost everything is
self- serve. We don't have too many people sacking groceries today.
There are a lot of jobs maybe that have been priced out of the
marketplace. I don't know if that is good.
I would rather have somebody get a job even if it doesn't pay very
much because they start climbing the economic ladder. I would hate to
pull that ladder up so high that maybe it would deny them the
opportunity to start climbing, to start improving, to learn work
habits.
One of the good things about a job--and many people like myself and
others started when they were very young--is if they did not learn
anything else they learned to be on time. You have to report to work.
You have work habits. You have certain things to do that are expected.
One of the things you learn many times is it is not enough money. They
learned they can't get by. My daughter has already learned that working
part time in a clothing store won't cut it. It is not enough. She
demands more. So she knows she has to improve her skills and have a
higher education so she can demand more in the workplace. But having
that job is good.
If we start telling everybody all across America no, if the job
doesn't pay at least 36 percent more than the present minimum wage, at
least $7 an hour, sorry, I am afraid there will be a lot of jobs lost,
I don't know how many hundreds of thousands of jobs this amendment
would cost, but it will cost many.
I don't think we should try to legislate economics. As a matter of
fact, I know a lot of businesses--I suspect there are a bunch in
Montana and other places--particularly rural areas, that are struggling
to survive. They might be small mom-and-pop stores, and Wal-Mart came
in down the street. Maybe they are not making any money today. They
might be struggling. Maybe it is a little hardware store in a town with
a population of 12,000 and they have been there for 30 years. They have
part-time help. They may pay somebody $5.15 or $6 an hour to work
there. All of a sudden, a big Wal-Mart comes in. They are losing money
and business. They are just trying to hang on.
Then Congress passes a bill which says the minimum wage is going to
go up by 36 percent. Now you will have to increase that from $5.15 to
$7 an hour.
We are not making any money now. We are losing money and can't
compete. We are just hanging on. They realize they can't lose money
forever. I am afraid they will have to close the doors.
How many rural communities have you seen where in downtowns they are
really struggling? I wonder what this amendment will do to those towns.
Some of those towns are trying to hang on. Some of those towns are
trying to revive.
Again, maybe some Members in this body think it is a living wage, or
it is getting people out of poverty. That is good. But it may be
putting some people in poverty. It may be denying the opportunity for a
young student who might be working part time to help pay for vo-tech,
or maybe work part time so they can get through college, or to become a
secretary, or you name it.
We are just arbitrarily going to say no. If you can't make $7 an
hour, we have decided it is against the law for you to have a job. That
is what this amendment would do.
If you ask the question in a poll if you support an increase in the
minimum, a lot of people used to say yes. If you ask the question
whether it should be against the law for anybody to work for less than
$7 an hour, even though they might all agree it is not to their
advantage to work for less than that, they would say no, it should not
be against the law. That is what this says. But this amendment says it
is against the Federal law.
Again, if the State of Massachusetts wants to do it, and its economy
is good, and maybe wage patterns and living costs are so high, that
might be appropriate. But many States have minimum wage laws. There is
a lot of difference between them. There is a lot of variance, as well
there should be.
But to come in and say we want to increase the federal minimum wage
to $7--that may take away the chance for some people to start climbing
that economic ladder.
It is far more important to give people opportunity to work than
almost anything we do. The work habits and skills they obtain from
their first job are very important. The first job for some people is a
minimum wage job. I would hate to price people out of the marketplace
in so many cases. Clearly,
[[Page S3409]]
I think this would do it. Clearly, it would do it in some parts of the
country.
One other comment: It was alluded to. We haven't raised this in
several years. So now is the time. Why won't these Republicans let us
do this?
The Democrats ran the Senate from June 2001 throughout 2002. They
could have offered minimum wage. I heard it hasn't been increased since
1997. It has been 7 years and we want to increase it now. They ran the
Senate most of 2001 and all of 2002, 4 and 5 years after the last
increase. How many votes did we have in 2001 and 2002 when Tom Daschle
was the majority leader? Senator Kennedy was chairman of the Labor
Committee. How many votes did we have?
We did not have any votes. They controlled the floor. They could have
offered an amendment. They could have had a bill reported out of
committee and sent it to the Senate floor, and we could have debated
it. I would have debated it. But we did not have it. We did not have
one during that timeframe.
So, I will mention, this is kind of interesting: they had plenty of
chances to debate this when they were in the majority. They had the
majority leader. They had control of the Senate. They could have
offered the bill at any time during that period of time.
So I mention those issues. I do not want us to make a mistake. I do
not want us to pass a bill that will probably cost hundreds of
thousands of people jobs, and particularly hundreds of thousands of
people who are at the low end of the economic scale. Let's give them a
chance to climb that economic ladder. We do not do that by passing laws
that say it is against the law for them to work for less than $7 an
hour.
I would urge our colleagues, if and when we vote on the Kennedy
amendment, to vote no on the Kennedy amendment.
I yield the floor.
The ACTING PRESIDENT pro tempore. The Senator from Montana.
Mr. BAUCUS. Mr. President, the great British Prime Minister William
Gladstone called the U.S. Senate ``the most remarkable of all the
inventions of modern politics.'' If you stop and think about that a
little bit, in the political process there is probably no greater
truth.
The Senate is a remarkable institution. It is unique. There is no
other body, no other political body, no other democratic legislature in
the world quite like the U.S. Senate. We have our unique rules and our
unique procedures, which I think make it special, and which have stood
the test of time and made this body the institution it is. I think it
has added significantly to our country's well-being and has helped make
the United States the best country in the world.
What are some of those distinctions? What are some of those
qualities? One, clearly, is the right to debate. Once the Chair
recognizes a Senator, that Senator can stand and talk as long as he or
she wants, as long as he or she is physically able. That is a rule of
the Senate. It means that if a Senator has something to say, that
Senator cannot be denied the right to say whatever he or she wants to
say, unless or until that Senator, for physical reasons, has to stop
talking.
I think the record for standing and addressing the Senate is held by
the late Senator from South Carolina, Strom Thurmond. My recollection
is it was 25 hours and some minutes. He had something to say, and, my
gosh, he said it. That is a distinct right in the U.S. Senate.
I do not know of any other body in the world where legislators are
accorded that right, certainly not in the other body. As you know, in
the other body, the standard rule is 5 minutes; that is, when any
amendment or bill is up, even assuming under their rules a House Member
has the opportunity to seek recognition, the basic rule is 5 minutes.
In the Senate it is as long as you can possibly speak.
What is another unique right of the U.S. Senate? One other right is
the right to offer any amendment on any bill at any time without
notice.
Now, when you stop and think about that, on one level that sounds a
little strange. That tends to make things a little disorderly, doesn't
it? Yes, it does make things sometimes a little disorderly, but,
nevertheless, that unique right to offer an amendment protects the
minority interest; it protects an interest of a Senator who is
representing some part of the country to be able to present his or her
point of view, and to bring it up and have Senators act on it, to
debate it, vote on it, and take action. It is very unique. It is very
important. Those are two extremely important qualities that distinguish
the U.S. Senate from any other legislative body in the world.
In a sense, it is that unique quality that is at the heart of this
debate; that is, whether the Senate should vote on an amendment offered
by the Senators from California and Massachusetts to raise the minimum
wage. Senators have that right. They have the right to offer
amendments. They have the right to stand up and be recognized and speak
on their amendments. Senators who are opposed to the amendment have a
right to stand up and oppose the amendment.
I believe that one of the best attributes--and I hope I am not
``misattributing,'' if that is a correct word, the source of this to
John Locke--is the ``marketplace of ideas''--that is, the more people
debate and, in good faith, talk about a subject, the more the sunshine
is on that subject, the more likely it is the best result will be
achieved; the more likely it is we will find the truth; we will find
the right result.
It is pretty hard to find the right result to a controversial issue.
Certainly raising the minimum wage has some controversy with it,
without debating it. If we cannot debate it, it is fairly difficult--it
is kind of hard--to know what the right result should be.
My guess is--and, frankly, I believe strongly--if we have a full and
open debate on the underlying bill, the TANF bill, as well as on
amendments that Senators want to legitimately offer, even if some of
them may not be strictly germane, we are going to end up with a much
better result, and we are going to be serving our country much better
than we would if we just do not have debate on amendments or if the
amendments are precluded from being brought up.
I strongly urge Senators, therefore, to think about what we are
doing. It is not only the narrow subject of whether there should be a
vote on the minimum wage or whether we are going to allow Senator
Kennedy to have a vote on his amendment. It is a broader question: What
are we all about as an institution? What are we about as the U.S.
Senate? Why do we seek these offices in the first place? Why are we
here?
I think I can speak for every Senator, saying that he or she ran for
the Senate because we want to help make this a better place; that is,
we want to help our States and help America. We profoundly believe in
the democratic process. We sought election to the U.S. Senate because
we knew, either directly or intuitively, it is a special place where
one does have the ability to have a voice in reaching a result, and,
clearly, a result that we think is better than the status quo. So I
remind all my colleagues that the nature of this Senate is somewhat at
stake. It is in question.
My next point is a bit difficult, perhaps, but there are some
Senators who have not been here very many years, and who only know the
Senate as they have seen it and have experienced it. I have been here a
few years. I am in my fifth term. I have seen the Senate operate in
lots of different ways.
I saw the Senate operate, a few years ago, where we had votes. We
voted on subjects. We voted on amendments. I might say, the last time,
in a real legitimate sense, we took up this underlying legislation, the
TANF bill, I think we were on it for 12 or 13 days, and there were 43
votes.
Senators offered amendments, Senators debated amendments, and
Senators voted on amendments according to what each thought was
correct.
And guess what happened. Most people hailed the 1996 bill as being a
great step forward in welfare reform. Everyone talks about the great
strides and advances this country took as a consequence of that bill
that passed, in 1996, the Welfare Reform Act. We have had a 50-percent
reduction in caseloads all across the country; and in some States more
than that, up to a 70 percent reduction in welfare caseloads.
We did get rid of welfare as we knew it. Both President Clinton and
President Bush said we needed to get rid of
[[Page S3410]]
the former welfare system as we knew it. I forget exactly what the
quotes were, but it happened. And I suggest it happened in part because
we so solidly and so comprehensively debated welfare and welfare
reform. We had 43 separate rollcall votes on that bill when we first
passed it.
Contrast that with where we are today. We have had one vote. A
cloture motion was filed yesterday. The point of that cloture motion
clearly is to prevent a vote on the amendment offered by the Senator
from Massachusetts--to prevent a vote. I do not see why we should
prevent votes.
The amendment raises the minimum wage. Clearly that is related. I
can't think of anything that is more related to the underlying bill. We
are talking about getting people off welfare into work. Clearly, it is
much easier to work if the wage that a person is paid is a wage that
can allow a person to stay off of welfare.
I have met people personally who have told me they want to get off of
welfare, but they can't because the minimum wage--this was several
years ago--was so low. One single mother told me she couldn't because
she realized childcare was taking up almost all of her income. It
wouldn't work. So she had to go back on welfare, and it bothered her so
much.
Clearly, this amendment is related. Clearly, Senators have the
intelligence to debate the amendment. Clearly, Senators have the
intelligence to know if they favor or do not favor it. Clearly, it is
directly related. Even more clearly, if we respect the nature of the
Senate, Senators should have a right to vote on it.
I urge all my colleagues to vote no on the cloture motion when we
vote on cloture tomorrow because a ``yes'' vote would deprive Senators
of the right to vote on a very significant amendment to this bill and
deprive Senators the opportunity of debating and trying to find the
best solution to a complex question; that is, what are the best changes
we think should pass in welfare reform.
If that is not bad enough--that is, a cloture motion which is
successful prevents us from voting on the Kennedy amendment--there was
a proposal by the majority yesterday. Yesterday, on behalf of the
majority, the Senator from Pennsylvania propounded a unanimous consent
request on this bill. I will take a moment to explain the consequences
of that proposal and how that proposed unanimous consent request would
further undermine the fundamental rights of Senators to debate and to
amend.
The proposed request had four parts: First, at a time determined by
the majority leader, the Senate conduct back-to-back votes on the
Republican minimum wage amendment and the Boxer amendment; that the
bill then be limited to germane amendments; that at 9:30 a.m. on
Thursday, the Senate proceed to vote on passage of the bill; and that
the Senate request a conference with the House and the Chair and be
authorized to appoint conferees on the part of the Senate.
I welcome the prospect of having side-by-side votes on the Republican
minimum wage amendment and the Boxer-Kennedy minimum wage amendment. We
have done that in the Senate. That is a fair way to proceed. We want to
get to amendments and we want to have votes.
But the other three parts of the proposed unanimous consent request
raise real problems. First, limiting amendments to only germane
amendments is a very tight constraint. Senators often seek to offer
amendments to a bill that are very relevant to the bill at hand but do
not meet the strict standard of germaneness. Under previous majority
leaders, the Senate often chose to limit amendments to relevant
amendments but did not go further in limiting amendments to germane
amendments. Limiting amendments to the more narrow standard of
germaneness is unduly restrictive.
The proposed request sought to set a definite time to vote on passage
of the bill. Setting a time for certain passage of a bill makes cloture
pale by comparison. At least under cloture you get a right to vote on
the amendments that are germane. But under this proposed agreement, a
Senator could delay, could stand up and talk. He could use all the
kinds of dilatory, delaying tactics one could use. That would prevent
votes on amendments and more strict than cloture where you are entitled
to a vote.
It is even more strict than reconciliation. In reconciliation,
Senators can always offer amendments. Often there is not time to debate
them, but they can still offer them. We then have a vote-a-thon. It is
not the most illuminating practice, I grant you, but nevertheless,
Senators have the right to vote.
Under this proposed consent request, Senators would not even get a
right to vote on amendments that may have been brought up or to even
bring up amendments.
Finally, the proposed consent agreement would seek to have the Senate
go to conference on the bill. This raises probably the most problematic
concern of all. If we went to conference and if the consent agreement
were adopted, which would require the appointment of conferees and
seeking a conference with the House, we would have to ask ourselves,
what is in the House-passed bill.
Let me point out some of the provisions in the House-passed welfare
reform bill. First, the House bill would impose unrealistically high
work requirements on TANF recipients, much higher than under either the
Senate bill or current law. Next, the House bill would provide minimum
resources for childcare funding. We all know that the Senate passed an
amendment which would increase childcare funding by an appropriate
amount. The House has levels that are so low, according to CBO,
childcare is underfunded by about $4.5 to $5 billion. We would have to
work out that one, which would not be easy, particularly where the
White House has issued a so-called statement of administrative practice
which says not one thin dime for childcare. That would make it even
more difficult for Senate conferees to work out a reasonable childcare
amount, if we were to go to conference.
The House would not allow TANF recipients to continue education; that
is, education they need to get and keep a good job beyond 1 year. That
restrictive provision is in the House bill. Moreover, the House would
provide what is called a superwaiver which would give the States
extremely unprecedented broad authority to combine food stamps,
Medicaid, childcare, and other programs, and use that money however
they see fit, undermining the minimal safety net and low-income
standards that low-income families have to rely on in their time of
need.
It would also mandate full family sanctions, not just partial family.
That means cutting families off of assistance if they do not comply
with the rules, risking real harm to children in the absence of any
fault of their own.
Finally, the House bill does not provide for legal immigrants.
The House-passed TANF bill raises serious concerns. Going to
conference on such a measure would not be a simple thing. It is the
position of the Democratic leader that we would have to have a number
of assurances before Democrats would agree to going to conference on a
matter that raised such serious concerns. That is extremely important.
That is because a conference report is not subject to amendment. Let's
not forget, we are in a unique situation where the same political party
controls not only the White House but both bodies of Congress. Where
the majority runs the conference process without substantial input from
the minority, the conference process can substantially limit the rights
of Senators in the minority.
Thus, the unanimous consent agreement proposed by the majority
yesterday undercuts the basic rights of Senators. It would severely
limit Senators' rights to offer even relevant amendments. It would
seriously limit Senators' rights to debate; that is, cutting off debate
abruptly at a certain time no matter how many amendments we had by then
considered.
We on this side of the aisle do not wish to delay this bill. There is
no way we want to delay it. We want votes. We will agree to time
limits. Let's get this bill up and amendments up and let the Senate
work its will. We are willing to do that. We are willing to work to get
a finite list of amendments. We are willing to enter into time
agreements on amendments. We are not asking for anything out of the
ordinary.
[[Page S3411]]
During the 13-day period over which the Senate considered the 1995
welfare reform bill, September 7 to September 19, 1995, the Senate
conducted 43 rollcall votes on amendments. So far this year we have
conducted just one. So we are not asking for anything new. We ask
merely that Senators be able to debate, to amend. We ask merely that
Senators be able to do that which makes the Senate ``the remarkable
invention'' about which Gladstone spoke.
I urge my colleagues to uphold the rights of Senators. I urge
Senators to allow a vote on lifting the minimum wage, and I urge
Senators to oppose cloture.
The PRESIDING OFFICER (Ms. Murkowski). The Senator from Iowa is
recognized.
Mr. GRASSLEY. Madam President, we are hopefully at a position today
where there is going to be some decision made by leadership--meaning
the Democrat leader and Republican leader--on proceeding on this
legislation. In the meantime, we will proceed with amendments and
hopefully move along as best we can without having a certain finality.
I had a chance to listen to my colleagues' statements. I will make
this commentary. We have already said to the minority, the Democratic
leadership, that we are prepared to vote on amendments that are before
the Senate. So the issue is not voting on amendments before the Senate.
There is some feeling that we are going to get this bill to finality.
That doesn't mean not voting on a lot of amendments. That can be worked
in as well. All we want is some certainty that we are going to get to
finality. Finality means getting to conference.
We have a couple pieces of legislation that have been sitting around
this body, after the body has finished work on them, not being able to
go to conference. One is the CARE Act, an acronym for legislation that
encourages charitable giving. Another one is the Workforce Investment
Act. These are two pieces of legislation that have been before the
Senate, and the minority, the Democrats, will not let us go to
conference on these pieces of legislation.
So, in a sense, the Senate has worked its will, but the legislative
process has been shut down. It seems to me if this legislation includes
so much of what the Democrats want to accomplish in the way of reform
of welfare--particularly the vote we had yesterday, very dramatically
increasing by $6 billion the amount to be spent on childcare--that they
would want this legislation to become law. So we need some assurance
from the other side that if we agree to voting on some amendments that
they want to vote on--that is no longer an issue--we want to move ahead
with germane amendments.
There is not an argument about the number at this point. We can get
to a vote on this, but most important is not have it stalled in the
Senate as those other two pieces of legislation. It seems to me the
issue isn't a whole lot different now than it was 2 years ago. The only
difference is the Republicans were in the minority, then and the
Democrats were in the majority. At that particular time, we saw an
Energy bill taken away from the Energy Committee and brought to the
floor. That bill never became law. We saw a prescription drug bill
taken over by the leadership on the floor of the Senate, with the
committee effectively cut out. There were 2 weeks of debate on an
Energy bill but nothing happened. There was not a budget adopted that
year.
We Republicans referred to the leadership at that time as having a
graveyard in the Senate because they wanted issues for that election as
opposed to products. We Republicans said to the electorate at that time
that we want products, not issues. So when we took over in the majority
in 2003, the committee system was allowed to work, developing
bipartisanship. Nothing gets done in the Senate without bipartisanship.
We could bring the issues to the floor and work the will of the Senate
and get things through the Senate. That is what we are elected to do--
get things through the Senate and let the process work.
So there is nothing that my colleague from Montana said that I
disagree with, except we ought to see light at the end of the tunnel.
Is there anything wrong with saying: Are you guys--meaning the
Democrats--going to do what you did on the Workforce Investment Act and
the CARE Act and let the Senate become a graveyard again just because
something is happening that you don't like?
It seems to me there would be a lesson learned from the last
election. When the Senate became a graveyard, the people of this
country sent a message that they don't want the Senate to be a
graveyard. They gave the majority to the Republicans. We show that we
can produce. Yet look what we are running into--the CARE Act, after a
year of not going to conference. I don't know how long the Workforce
Investment Act has been waiting to go to conference. We were stalled
last week on a bill the Democrats agreed ought to become law, the FSC/
ETI bill. That stalled.
I would not say the Welfare Act is stalled. But what do we know is
down the road? What is wrong with a little bit of transparency. The
transparency is that they present an amendment on minimum wage and they
want a vote. So we present a plan to get to a vote on that very
important issue, but we cannot get some assurance that we may not be in
the same boat as with the CARE Act and the Workforce Investment Act.
When it comes to the minimum wage being important for welfare, I
suggest to the other leaders that, as chairman of the committee, in a
letter I received from them last year, which is not dated--I received
this letter, and it was signed by 41 Democrats--telling us the things
they wanted in this legislation that the Finance Committee was going to
be working on at that particular time. They were setting out priorities
they believed we had not adequately dealt with. In this letter, there
was never any mention of minimum wage being an important part of
welfare reform legislation.
I did take what they said in this letter very seriously, and they
dealt with issues such as universal engagement, ending the caseload
reduction credit, strengthening child support, extending TMA, providing
additional State flexibility, issues dealing with postsecondary
education, no superwaiver, no increase in work without State
flexibility. Of all of those provisions they raised concern about, none
dealt with minimum wage. I and the majority tried to accommodate the
minority members who signed this letter and put these things in this
legislation. These provisions are all in this bill.
Other priorities, as stated by the Democrats, included some
additional funding for childcare, and we passed that overwhelmingly
yesterday. It wasn't something I could get done in committee. I,
obviously, agreed with that approach because I voted for it yesterday.
We also had a request from the Democrats in this letter to increase
vocational education eligibility for legal immigrants. We have not
dealt with that, but that is going to be an amendment before the
Senate.
What we have tried to do in this whole process of Republicans gaining
control of the Senate and letting the committee system work, as opposed
to 2002 when very major legislation, such as prescription drugs and the
Energy bill, was taken away from the committees and brought to the
floor--we do not develop bipartisanship on the floor, and they never
became law--we have tried to make the committee system work. When
specific requests are made, such as 41 Democrats sending us a letter
raising concerns about their issues, we try to put them in the
legislation and accommodate them so that we have a product instead of
an issue.
The other side ought to tell us if we are going down the same road we
went down in 2002 to have the Senate become a graveyard for important
legislation because they need issues instead of product. Did they learn
a lesson from the last election? Do they want to lose more seats in the
Senate? I don't think they do. But I think they have to get a better
game plan than shutting down the Senate because we are in the majority
to make this place work.
I know there are a lot of Democrats who are intent upon making this
place work, and I know Senator Baucus, my ranking Democrat, is
committed to making this place work. There should not be any reason we
have to have a cloture vote, particularly when we made overtures to the
other side to vote on a lot of important issues on
[[Page S3412]]
which they want to vote. All we want to know is that we are going to
get an opportunity to develop a product. This Senate is not the only
body that passes legislation that goes to the President; it also takes
the House of Representatives. We do not get to finality until there is
a conference committee if there is a difference between the House and
the Senate, and in most major pieces of legislation, we have to have a
conference committee.
I do not understand why we can't get to conference on the CARE Act, a
bill to encourage charitable giving by people who fill out the short
form of the income tax by giving above-the-line deduction, or having
the tax-free rollover IRAs for people who want to give some of their
lifetime savings to charitable giving. There are a lot of other good
provisions in that legislation as well.
Do you know what is wrong with that, Madam President? What is
probably wrong with that legislation is it is one of the No. 1 goals of
the President of the United States, and maybe the other side can't let
him have a victory. Yet in the scheme of what the President of the
United States has to do, it may be a No. 1 goal of his, but it is a
very small part of the total agenda that this President has of leading
this Nation and being the Chief Executive Officer for our Government.
What is wrong with the Workforce Investment Act? One would think that
with the other side crying all the time about outsourcing--forgetting
about insourcing; we have a $58 billion favorable balance of trade on
insourcing versus outsourcing--but we all ought to be concerned about
outsourcing. What does Senator Kerry, as a Democratic candidate for
President, say we need to do about outsourcing? Educate our workforce.
And we have opportunities to move legislation that does that, and we
cannot get to conference. What is the game?
We have offered to the other side votes on important legislation they
want. Can they let us see light at the end of the tunnel so we know
there are not games being played? I would hope there are people on the
other side of the body who want this place to work, and there are. I
would hope people who want product instead of issues will rise to the
top, as cream does, and as cream of the crop remind their leadership of
what happened in the last election, and do they want to be a less
significant minority than we presently are because I think what is good
about the Senate is that it keeps the extremes from governing in
America--the extreme on the left and the extreme on the right.
The Senate, when it cooperates and gets things done, governs from the
center. Whether that is 60 votes or 70 votes or 80 votes, we govern
from the center.
This is a body that is going to make sure that Nazis do not take over
America or Communists take over America, and there are none of them in
the Congress. But when you do not have the center rule, as Germany
learned or as Korinsky learned and tried to show the people of Russia
in 1917, when the extremes take over, democratic values are lost.
Mr. GRASSLEY. I yield the floor.
The PRESIDING OFFICER. The Senator from Massachusetts.
Mr. KENNEDY. Madam President, as the cosponsor of this amendment with
my friend and colleague, Senator Boxer, I do want to clarify for the
record where we are and the view those who are sponsoring the amendment
have with regard to proceeding on the TANF reauthorization legislation,
which is before us.
Because we have had characterizations made about our amendment, I
wish to clarify for the benefit of the Senate and, more importantly,
for the American people exactly what the current situation is before
the Senate.
Before the Senate, we have what we call the TANF legislation, to move
people off welfare into employment. As has been mentioned on a number
of occasions--I have a copy of the report--the point is made by the
Republican floor manager that this amendment to increase the minimum
wage is not pertinent to this legislation and, therefore, because of
the fact we are offering it, we are delaying the whole process even
though we indicated to the floor manager we were eager to enter into a
very short time agreement, a 20-minute time agreement, time to be
evenly divided, a time certain, and then move on to another amendment.
We want to make very clear, speaking for the supporters of the
amendment, we are interested in coming to a resolution. The answer on
the other side is, well, since this is not relevant to the subject at
hand, we are not going to let a vote occur. That is a rather unusual
process and procedure. As to amendments on legislation, unlike
appropriations, the Senate rules permit a vote on legislation, but the
majority does not choose to do so. Therefore, they refuse to let us get
a vote on this and then criticize us for delaying the process even
though we are prepared to vote this afternoon. It is 12:30 now; we can
vote at 1, or whatever time the floor manager would permit us to do so.
I mention once again how ridiculous I think the argument is from the
other side that this is not a relevant amendment. If one looks at the
legislation itself dealing with TANF and looks through the report, as I
have said previously, they can look under ``strengthens work,'' that is
what this legislation is supposedly all about. If we take the statement
of the Secretary of HHS, Tommy Thompson--listen to this--regarding the
TANF reauthorization requirements:
This administration recognizes that the only way to escape
poverty is through work, and that is why we have made work
and jobs that will pay at least the minimum wage the
centerpiece of the reauthorization proposal for the Temporary
Assistance for Needy Families (TANF) program.
Here it is, the administration spokesman talking about the
centerpiece of the TANF will pay a minimum wage. That is exactly what
we are trying to do. How is it possible that the floor manager can say
this is not relevant when the Secretary of HHS specifically refers to a
minimum wage? How can they possibly take that position? How can they
say we are trying to delay it when we are prepared to go ahead with a
short time limit?
The American people must be greatly confused. Here it is, the
Secretary of HHS, the President's representative on this issue, saying
this administration recognizes the only way to escape poverty is
through work and that is why we have made work and jobs that will pay
at least the minimum wage the centerpiece of the reauthorization
proposal for the Temporary Assistance for Needy Families program. That
is the statement he had at that time on March 6, 2002.
As the report goes on, the other references I have talked about,
``reasons for change,'' to move welfare recipients into good jobs, good
jobs obviously suggest they are going to be halfway decent.
The committee refers to the reasons for the change, that the
committee wants to build by increasing work and reducing the welfare
and talking about good jobs. That is the reference all the way through.
That is what the Secretary has said. We have indicated we are prepared
to move ahead and move ahead immediately, but we are denied the
opportunity to do so. And that is with regard to procedure.
I listened earlier to my friend and colleague from Oklahoma saying we
really do not need a minimum wage; we ought to let the market decide
and make these judgments and decisions. Well, we have heard that. I
have heard that since I arrived in the Senate, not only every time we
have the chance to debate the minimum wage. Then he talks about the
challenges we are facing in rural areas are not the same challenges as
they face in urban areas, which we have understood. That is why we have
an exclusion for agricultural workers. We have a different kind of a
financial situation for mom-and-pop stores rather than the large stores
in many urban areas. That is why we have a cap and say if you have
approximately $600,000 or less gross earnings, you do not have to
observe the minimum wage provisions. We responded to these rifleshot
ideas that have been constantly brought up during the debates on the
minimum wage.
I would like to go back to the general kinds of themes that were
brought out. As we understand, this is a minimum wage, not a maximum
wage. We are talking about a minimum wage to meet minimum kinds of
standards in this country. Hopefully we have gone beyond the debate
about whether we were going to have the robber barons or the
monopolists in this society have individuals who are in the workforce
so thoroughly and completely exploited.
[[Page S3413]]
Many in the Senate have been up to visit the old mill towns of
Massachusetts, and one can still travel up to Lowell and visit many of
those old textiles and they will see the letters from children who are
7 and 8 years old who were writing and who were working in the mills 10
or 12 hours a day, in many instances 7 days a week. Some of the most
moving of those letters are by these children who write looking outside
the windows and seeing other children playing outside and dreaming of
the time that they might be able to do so.
In the old days when we did not have any kind of protections for any
workers, we had extraordinary exploitation of children in the
workforce. Well, that goes back to the time where the Government was
not involved. In 1938, after a great deal of struggle, sweat, and
bloodshed, all that changed with the very important child labor laws.
Some had been passed before. Basically, we established the minimum
wage, the time and a half for overtime, and the Fair Labor Standards
Act, even though the overtime issue in question is now threatened by
this administration that wants to abolish overtime for some 8 million
workers, mostly firefighters, policemen, and nurses who in many
instances are our first responders. All one has to do is go to any
hospital and talk to some of those nurses and find out how in many
instances they are required to work overtime, and find out their views
about quality of care.
Now imagine if overtime is eliminated and there is that kind of
requirement. We have a shortage of nurses today. One can imagine what
is going to happen tomorrow if that particular recommendation by the
administration is put into effect. So basically we are talking about a
minimum wage.
We can hear on the other side, as we heard earlier from the Senator
from Oklahoma, well, it is important to get on the bottom rung of the
ladder because if one gets on the bottom rung of the ladder, they
develop certain kinds of skills and attitudes and will be able to move
ahead and have a successful life.
Well, there are certain truths to getting on a bottom rung of the
ladder if the bottom rung of the ladder is not so low it actually
submerges a person and they cannot survive on the bottom rung of the
ladder because they are so overwhelmed by the challenges of life, of
being able to survive. That is what we are talking about, having the
bottom rung of the ladder so that at least one can make a living wage,
they are going to at least be treated with some sense of dignity in
this country of ours, which is the richest country in the world.
There are people who are struggling. It does appear, by those who are
opposed to the increase in the minimum wage, there is some
dismissiveness about the individuals who are receiving it. I do not buy
that. The minimum wage workers in the workforce I have met are among
some of the most courageous and dignified men and women one will ever
want to meet.
I am going to mention who we are really talking about. Who are these
people who are earning the minimum wage? We have heard speeches on the
floor. Let's put some human faces on these individuals. Shreveport, LA:
It was early April, and 46-year-old Mrs. Williams was dressed in the
dark blue uniform she wears at her first job caring for the aged and
infirm at a nursing home. On top there was a gray apron she dons for
her second job cleaning offices at night. The place where she works as
a nursing assistant, Harmony House, was paying her $5.50 an hour,
barely above the minimum wage, even though she had been there for 10
years as a union member and completed college courses to become
certified. The cleaning job which she took up because she could not
make ends meet pays right at the Federally mandated $5.15 an hour.
``You think you are moving forwards,'' adds Ms. Williams,
``but you're just moving backwards.''
Mr. Valles earns his living serving hamburgers at a McDonald's
restaurant in downtown Los Angeles. He's a family man. He and his wife,
Lily, have two children.
``I make $5.75 an hour. That's about $240 a week. One
hundred ninety dollars after taxes. You can't really live on
that. Lily works in a fast-food place, too. She makes the
same as me. Two weeks of my pay and two weeks of her pay
every month goes for rent. Then you have to pay the fare to
go back and forth to work. You gotta pay for your food. You
have bills. We're still paying on the sofa. . . .''
I asked if they ever went on vacation. He looked at me as
if I asked if his children could fly. ``No,'' said Mr. Valles
quietly. ``There is no money for vacation.''
The list goes on. We have this situation:
As she weighs bunches of purple grapes or rings up fat
chicken legs at the supermarket where she works, Fannie Payne
cannot keep from daydreaming.
``It's difficult to work at a grocery store all day,
looking at all the food I can't buy,'' Mrs. Payne said. ``So
I imagine filling up my cart with one of those big orders and
bringing home enough for all my kids.''
Instead, she said that she and her husband, Michael, a
factory worker, routinely go without dinner to make sure
their four children have enough to eat. They visit a private
hunger center monthly for three days' worth of free
groceries, to help stretch the $60 a week they spend on food.
``We're behind on all our bills,'' Mrs. Payne said. ``We
don't pay electricity until they threaten a cut-off. To be
honest, I'm behind two months on the mortgage--that's $600 a
month. We owe $800 on the water bill and $500 for heat.''
The Euclid Hunger Center helped her seek aid from her
parish, Saint William's Catholic Church, but it hurt that
three cars broke down in six months.
``They all died and we had to get Mike to work, so we
bought a good used car we can't afford.''
The first thing to go was money for food herself and
husband. ``Some nights Mike and I eat our kids' leftovers,
and if we don't have enough money for milk, I feed the kids
soup for breakfast,'' she said.
Living with housing hardship. Hector Cuatepotzo, a waiter
in the upscale Miramar Hotel in Santa Monica, lives in a
tiny, one-bedroom apartment with his wife, Maria, 6-year-old
daughter, Ashley, and infant son, Bryan. All four sleep in
the same small room, with Bryan's crib nestled in one corner,
Ashley's bed in another.
Cuatepotzo earns about $20,000 a year in salary and tips,
equal to about $10 an hour, almost twice the minimum wage.
But with $625 a month in rent and another $80 monthly gas and
electricity, the family spends more than 40 percent of their
income for housing. Cuatepotzo works from 6 a.m. to 2 p.m.
and travels 40 miles round-trip to work each day because
rents in buildings closer to his job are even higher.
Since Maria took time off from her job in the restaurant to
have the baby, they received several eviction notices for
late payment.
Cuatepotzo is thinking about getting a second job, but that
would mean rarely seeing his children. Cuatepotzo, who has
worked at the Miramar since arriving from Mexico 10 years
ago, would like to own his own home someday. ``It's my
dream,'' he says. But he can't imagine how he'll ever get
there when his family lives paycheck to paycheck.
This is what is happening all across this country. These are not
people who are slackers; they are hard workers.
Here is Deborah, 23, from Pennsylvania, a single mother and survivor
of domestic violence. She has two daughters. She was evicted from her
home in New Jersey. She now resides in Clairton, PA, where she works as
a salesperson in a grocery store earning $5.35 for 30 to 35 hours a
week. Deborah has no health coverage for herself or her girls. Her
earnings are spread thin to cover childcare expenses, transportation,
food, and $50 a month for her bedroom at her aunt's. An increase in the
minimum wage would help Deborah catch up on lagging bills, come closer
to making ends meet, get needed doctor appointments for her children at
a pay-for-service clinic, and purchase clothing for her children, who
lost everything in the eviction and the escape from domestic violence.
Pat Rodriguez lives in Washington, has worked at a laundry and
drycleaners in Washington for 8 years. She earns $6.15 an hour, the
minimum wage for the District of Columbia. Currently she and her
colleagues are on strike over low wages and other issues. The money she
earns working full time is not enough to pay the rent, pay for the
basic necessities for her family. She has a 2-year-old child and is
expecting a second child. She has no pension, no access to affordable
health care, and relies on Medicaid. She works full time and still does
not make enough to be able to save for the children's education. Pat
says, ``I support raising the minimum wage, but I also want workers to
be treated with respect, and for their work be valued accordingly.''
Elaine Murphy and her three children, 16, 11 and 6, recently moved to
Newburgh, NY, from Oregon. Mrs. Murphy is a teacher's aide and special
[[Page S3414]]
needs bus aide in the local elementary school. Every morning she is in
the bus yard at 6:30, waiting to escort handicapped children on the
bus. Then she works in the school offices and in classrooms until
around 3, when she gets back on the bus and escorts the handicapped
children to their homes. In Oregon, she made $10 an hour doing similar
work, but in the new job, she is paid the minimum wage.
The job suits her needs as a mother of three. She can be home in the
afternoon to look after her 6-year-old, who is autistic and needs the
kind of close supervision the school's afterschool program is not able
to provide. There are daycare centers that could care for their son,
but the cost is prohibitive. Her 16-year-old son is athletic, and after
school she is able to drive him to practices and games.
Despite the fact that Elaine works full time, she is paid so little
that she qualifies for food stamps and her children receive health care
through Medicaid. This bothers Elaine. She doesn't want Government
assistance. She wants to work hard and provide for her family. In the
school district where she works, janitors and others are paid enough to
support their families while Elaine has little choice but to turn to
the Government for assistance. She perceives the problem as this: The
assumption is that women who work as teachers' aides or do similar work
are not supporting their families but, rather, working to supplement
the household income. In her case, this is not true. Elaine is the sole
provider for her three children.
For Elaine and her family, a higher minimum wage would mean a greater
degree of self-sufficiency. Getting a second job is out of the question
given her responsibilities at home. At the present rate of pay, making
ends meet is impossible without Government subsidies. Elaine argues
that working 40 hours a week for something as important as special
needs education, she should not need Government handouts; that through
hard work, she should be able to provide for her children.
This is it. These are the real faces of people who are out there,
trying to make ends meet. Our proposal was to increase the minimum wage
just to $7. I will show the chart here, what more has happened with
regard to the minimum wage over recent years.
On the far side of the chart, this is purchasing power in the year
2000, dollar purchasing capability; in 1968 the equivalent of $8.50 for
minimum wage. The red line indicates how the minimum wage has gradually
dropped, how we were able to get it raised in 1990, and how we were
able to get it raised in 1997 and 1998. Now we see it dropping without
this increase to about its alltime low.
This is a minimum wage, not a maximum wage. We hear those saying, if
you are going to go for $7, why not go $10 or $15? That is missing the
point. What we are trying to do is get this increased to $7. That will
still put it below where it was for a period of 12 or 14 years, but at
least it gets it much closer to a living wage.
That is what this amendment is all about. We should understand it.
This amendment affects real people. I gave some examples of real
people. I have given examples of why the Secretary of HHS believes a
minimum wage job is relevant to this bill. We have indicated we are
prepared to vote on it. We daresay it is those on the other side, who
do not want to vote on it, who are actually filibustering.
I want to come to this issue and talk a little bit about the impact
on families, and particularly the impact on children in terms of
hunger, the problems of hunger.
In 1938, we had the child labor law. We had minimum wage, and we put
time and a half for overtime pay in there so workers would be
considered. What we have looked at in more recent times, as hunger has
been a defining aspect for people as well, we have tried to take a look
at what the impact is on hunger, what the impact would be.
First of all, this chart: Hunger is increasing for minimum wage
families. The Agriculture Department reported more than 300,000 more
families are hungry today than when President Bush first took office.
More than 12 million American households are worried that they would
not have enough to eat, and nearly 4 million households had someone go
hungry. African-American households, Latino households, and households
headed by single mothers were much more likely than the national
average to experience food insecurity, and also more likely to
experience hunger.
I have the household food security for the United States. This study,
put out by the Department of Agriculture, shows very clearly what is
happening to families, and particularly families with minimum wage.
What you find out is that in 1998, there were 14 million children who
were living in families where there was a real problem in terms of food
security, and then that went down in 1999 to 12 million.
In the year 2000, it is 12 million. Then we see in 2001 that it began
to turn around. In 2002, it is 14 million going right back up again. We
were seeing the decline in terms of the impact of hunger on children in
this country. Now we see as a result of the economic policies and
failure to increase the minimum wage the fact that hunger is again
taking off in these minimum wage households.
This is an excellent report done by the State of Massachusetts. It is
called ``Walk For Hunger, Project Bread.'' I will include in the Record
the appropriate parts of the study.
According to the U.S. Department of Agriculture, 425,000
people in Massachusetts lack access to adequate food. In low-
income communities in Massachusetts, 20 percent of households
cannot afford to buy enough food to meet the basic
nutritional needs of household members. The prevalence of
hunger is highest among families with children. Today, in
low-income communities, one child in three lives in a
household struggling to put food on the table.
Our State is one of the most prosperous, fortunately, in the country.
This is what is happening in households in my State. If it is happening
in Massachusetts, it is happening in States across this country.
We have the broad figures. As we go along, I will have the
opportunity to continue to give speeches and to point this out.
Listen to this one more time.
According to the U.S. Department of Agriculture, 425,000
people in Massachusetts lack access to adequate food. In low-
income communities in Massachusetts, 20 percent of the
households cannot afford to buy enough food to meet the basic
nutritional needs of household members. The prevalence of
hunger is highest among families with children. Today, in
low-income communities, one child in three lives in a
household struggling to put food on the table.
And we have opposition to an increase in the minimum wage.
How much evidence do you need over there? How much child hunger do
you need to increase the minimum wage? What more in the world do you
need?
That is happening not only in my State but in States all over this
country. Children are facing real hunger because the parents are
falling further and further and further behind.
I have a book full of those examples, some of which I read. I have a
book full of examples from all over the country. This is what is
happening. The problem is getting worse.
The Department of Agriculture indicates there are 35 million
Americans hungry or living on the edge of hunger for economic reasons--
35 million of our fellow citizens. There are 290 million people in this
country, and 35 million of them are facing serious challenges with
hunger in the United States today.
We will have a chance in half an hour, if you want to take a very
modest step to increase the minimum wage. It is not going to solve the
problem, but it will sure do more about it than the current legislation
which is before us. That we know.
There are 300,000 more families hungry today than when this
administration first took office. Twenty-three million Americans sought
emergency food assistance from the hunger relief organization Second
Harvest.
Isn't that a fine description of what our country is coming to.
As I indicated, these are men and women of dignity and respect,
people who are working hard. We find in a number of the hunger
programs, the Food Stamp Program and others, they are vastly
underutilized because men and women have a sense of pride. They don't
want to take handouts from the Federal Government. Even some of the
school lunch programs are underutilized in some areas because parents
don't want to have their children appear to come from a poor community.
[[Page S3415]]
They are used to a higher degree than food stamps, but, nonetheless,
that happens.
These are men and women of pride. It is a real problem. These
families, as I mentioned--23 million, Second Harvest--cannot afford
balanced adequate diets. Parents are skipping meals so their children
can eat. Nationwide, soup kitchens and food pantries and homeless
shelters are increasingly serving the working poor--not just the
unemployed.
Both the U.S. Conference of Mayors and Catholic Charities report
witnessing sharp increases in the use of emergency services offered by
the cities and the Catholic Charity agencies.
In 2003, the survey by the U.S. Conference of Mayors that looks at
hunger found 39 percent of adults requesting food assistance were
employed.
Effectively, 40 percent of people who are trying to get some
additional food assistance are employed and work hard.
This is the conclusion of the U.S. Conference of Mayors, as well as
Catholic Charities--a leading cause of hunger is low-paying jobs.
How much more evidence do you need? Do we think the U.S. Conference
of Mayors is a tool of just the Democratic side of the Senate when
Republican and Democrat mayors alike across this country are talking
about the increasing problems they are facing and the challenges that
families and their communities are facing when they say one of the
principal reasons there is explosion in the hunger needs of children in
this country is because of low-paying jobs?
That is what this amendment is about--to do something about low-
paying jobs.
We have a chance to do something about it. We have done it in the
past. We are denied the chance to do something right now about it.
If cloture is successful, we ought to say it as it is. It will defeat
this amendment. Evidently, the Republican leadership fears voting on
this amendment, for reasons I can't possibly fathom, so much they are
delaying the Senate a whole day. Here we are on Wednesday at 1 o'clock,
and we are not going to be permitted to vote. We could vote on this in
half an hour. No, you can't vote on it. We are going to make sure the
Senate doesn't do any work this afternoon because we feel so intensely
about increasing the minimum wage. We are against it going to $7 an
hour over a 2-year period. We are going to insist on cloture--the
unusual step of cloture in the Senate--in order to bring that amendment
down so we will not even have to vote on it even though the Secretary
of HHS has indicated minimum wage is essential to the success of this
program.
Is there anything more ludicrous? Is there anything that makes less
sense?
It is absolutely out of our imagination that Republicans feel so
intensely in opposition they will refuse to let this institution vote
on this measure which can make a difference in terms of children in
poverty, families in poverty, proud men and women who are trying to
provide for their children, a step that we have taken 11 different
times since the minimum wage was passed with Republicans and Democrats
alike. But what it is about is this Republican leadership that says:
No, we are not even going to let you vote on it.
We had difficulties other times trying to get a vote on it. I will
certainly admit that. And the record will show that. But eventually we
were able to do that, and eventually we were able to get it passed. But
the ferocity of opposition this time is mind-boggling to this Senator.
Listen to this, again from the U.S. Conference of Mayors: Emergency
food assistance increased by 14 percent. This is just in 1 year. These
are the 2003 figures. Fifty-nine percent of those requesting emergency
food assistance were members of families, children.
And then: City officials recommend raising the Federal minimum wage
as a way the Federal Government can help alleviate hunger.
Here it is, the Conference of Mayors--Democrat, Republican, mayors
from all over this country; North, South, East, West; Republican and
Democrat--talking about hunger, talking about the particular hunger
needs of children, talking about the problems of the growth of hunger
for working families, and they make one single recommendation: increase
the minimum wage. And we cannot even get a vote on it in the Senate.
Can you imagine people watching the Senate and hearing: Well, no, we
can't vote on that. We can't vote on that. We are just not going to
vote. And they say: Why? It looks as if those who are proposing it are
ready to vote on it.
We are. When are you ready to vote on it? In 20 minutes, half an
hour? We are prepared. We have offered time limitations.
They say: You are?
What is wrong with the other side? They say it is not relevant to the
underlying bill. They say it is not relevant.
Let's see. Is that the way the Senate works?
Let me help you figure out why it is relevant because I have a
statement from the President's representative on this bill. This is
what the President says. The President says:
This administration recognizes that the only way to escape
poverty--
He is talking now about the underlying bill--
is through work, and that is why we have made work and jobs
that will pay at least the minimum wage the centerpiece of
the reauthorization proposal for the Temporary Assistance for
Needy Families (TANF) program.
Well, then they say: Wait a minute, I thought the Republicans said
your amendment is not relevant. And now you are saying the Secretary of
HHS says you should have a good job that pays an adequate minimum wage?
Yes.
And they say: It would seem to me it would be relevant.
It does to me, too. That should be understandable to any third grader
or fourth grader, but it is not to the Republican leadership because
they do not want to pass it because they have powerful interest groups
that do not want to pass it. That is the reason: special interest
groups that refuse to let this pass. That is it. That is what this is
about. You cannot get around it.
So we have taken a few examples of who the people are who are
affected, what kind of lives they are living, and what has been
happening in one State that is a pretty prosperous State, my own State
of Massachusetts, that has done a very detailed study. I will include
that, as I mentioned, as a fierce indictment in terms of the failure
of both our State and the Federal Government to be able to provide the
help and assistance.
We have the one recommendation by Republicans and Democrats alike,
the mayors all over this country, who are close to the people on it and
say: We have one single recommendation. They did not recommend the
extension of TANF. They recommended one thing: increasing the minimum
wage. That was their single recommendation.
We heard statements just yesterday. I, very briefly, will respond to
the arguments that if we raise the minimum wage we are going to
contribute to the problems of unemployment in our society. I am glad to
go through this issue. We have extended charts. We have debated this
frequently the other times we had the increase, with the Kruger studies
from New Jersey, which are probably the most extensive studies. I have
the whole working paper.
It goes into great detail as to the impact, historically, on the job
market.
As I mentioned before, the yellow line on this chart is the rate of
unemployment in the year we increased the minimum wage, showing the
rate of unemployment in October, when we had the second increase in the
minimum wage, and then several months later.
So you have the cumulative two increases in the minimum wage. And
what was its impact on the rate of unemployment? As you see, going back
to the 1996 increase, 1997, and then several months later, the
unemployment rate remained at 4.7 percent.
If you break it out with regard to African Americans, Hispanics, and
teens, it is very much the same. You had 10 percent unemployment for
African Americans, and 9.5 percent. If you take both the increase in
that year and this year, and then take the result for those two, look
at the next year; it was at 9.3 percent. If you look among Hispanic
Americans, it is the same pattern. And if you look among the teens, it
is the same pattern.
Strong opposition said it is going to increase unemployment, it is
going to
[[Page S3416]]
increase teen unemployment, and minority unemployment. It does not do
so.
Another factor is the issue about whether this is going to be an
inflater. As I mentioned, if you look it over--for those who want to
take the time, it is not very difficult to do--but if you take the
increase, the total number of people who are going to be affected by
the increase in the minimum wage, and take the total payroll, you will
find out the impact.
We know increasing the minimum wage by $1.85, as I have pointed out,
is vital to workers but a drop in the bucket to the national payroll.
All Americans combined earn $5.7 trillion. And a $1.85 minimum wage
increase would be less than one-fifth of 1 percent of the total
national payroll. So spare us--spare us--the arguments about the
adverse impact of an increase in the minimum wage on unemployment and
on minorities and on teenagers, and spare us the argument that this is
going to add to the issues of inflation because it does not do that.
What it will do is, it will help some extremely hard-working
families. It will help many workers who work hard clearing out the
buildings at nighttime, being assistants to our teachers in our high
schools and elementary schools in our country, working in nursing homes
as assistants. These are minimum wage workers, and they are men and
women of dignity. They are not looking for Government handouts. They
want to be able to work hard and raise their children and live with the
respect of their children and spend time with their children.
That is why this is a women's issue because the great majority of
those who receive the minimum wage are women. It is a children's issue
because so many of those women have children. It is a family issue
because the relationship between, primarily, single mothers--not always
but primarily single mothers--and their children is dictated by whether
the mother has one or two or even sometimes three minimum wage jobs.
The time, or lack of time, they are able to spend with their children,
obviously, is enormously important.
This minimum wage is also a civil rights issue because so many of the
men and women who receive the minimum wage are men and women of color.
It is a civil rights issue, a children's issue, a family issue, a
women's issue. Basically, it is a fairness issue because these men and
women in this country believe if you work hard--you work hard--40 hours
a week, 52 weeks of the year, you should not have to live in poverty.
If you look, after all is said and done, at where the poverty level
is for a family of three, it will be something under $15,000. And even
with our increase in the minimum wage, they are going to be well below
that.
We are prepared to vote early this afternoon. We don't need more
time. We can take more time, but we are prepared to vote at any
particular time. This side has made its case. People in this body know
what the issue is all about. It is not enormously complicated. They
understand it. We are prepared to vote. It is a very simple vote. If it
is finally enacted in the House--and I think with a strong vote here it
will be--and if it is signed by the President--and if we have a strong
vote in the House and the Senate, the President is going to sign it--it
is going to make a big difference because 60 days after enactment, the
first phase of it will begin to give some new hope to some of the
hardest working men and women in the country.
I suggest the absence of a quorum.
The PRESIDING OFFICER (Mr. Hagel). The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. GRASSLEY. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Iowa.
Mr. GRASSLEY. Mr. President, we are involved in debate on a
nongermane amendment the Democrats have offered on which we Republicans
have said we are willing to vote, assuming we can have finality on this
legislation and make sure we get to conference.
In the meantime, while those procedural issues are being worked out,
I wish to express some views on the subject of minimum wage.
The proponents of this legislation claim they want to make sure that
workers are able to earn a livable wage. Who doesn't know that is
necessary for people to get along in this world? It is not very clear
to me what the term ``livable wage'' means. But those who use the term
seem to believe a person working at a minimum wage ought to earn more
than the poverty level.
So let us consider that goal for a moment. Although there is more
than one way to define poverty, the Department of Health and Human
Services publishes the poverty guidelines each year. These guidelines
are used to determine eligibility for low-income programs like food
stamps. For a single individual, the poverty guideline then would be
$9,310 a year. Under current law, any job subject to the Federal
minimum wage must pay at least $5.15 an hour. Assuming a person worked
40 hours a week, 52 weeks a year, at a minimum wage, they would earn
over $10,000 a year. Even after deducting Federal income taxes owed on
this amount, a minimum wage worker is left with more money than the
poverty guidelines.
I would like to repeat that a full-time minimum wage worker already
earns more than the poverty level.
Now, is that a livable wage? The answer is that it depends. Even in
my State of Iowa not very many people would say that is very ideal; in
fact, just the opposite. Most people would look for much higher than
that. According to the Census Bureau, more than 2 million workers have
hourly wages at or below the minimum wage. More than one-fourth of
these workers are between the ages of 16 and 19.
So is $5.15 an hour a livable wage? If one is a teenager living at
home with their parents, they probably feel like they are making a lot
of money. But what about other minimum wage workers? According to the
Census Bureau, 85 percent of the people earning the minimum wage live
with their parents, have a working spouse or live alone. Only 15
percent of the minimum wage workers are trying to support a family.
For those few who are trying to support a family, $5.15 an hour is
obviously not enough income. Fortunately, these families do not have to
get by on $5.15 an hour because under current law these families are
eligible for Federal assistance through the earned income tax credit
and through the food stamp program, two programs that are meant to
encourage people into the workforce in a way that there is good return
on it.
A single mom with two children working full-time at minimum wage
would qualify for more than $4,000 in refundable tax credits and more
than $2,000 in food stamps. On an hourly basis, that works out to more
than $8 an hour. Even after Federal taxes are withheld, a single mom
with two children is left with more than $15,670, which is the poverty
guideline for a family of three. Thus, the debate cannot really be
about getting people out of poverty.
Some people might say that these workers should not have to rely on
Government programs to escape poverty, and those people working would
look for a day in the future when they were making enough money that
they would not qualify for the earned income tax credit or qualify for
food stamps. But other people might say that employers should not be so
cheap, that they ought to pay their employees more than the poverty
level wages.
As I have just explained, the poverty level varies by the size of the
families. Employers cannot pay their workers based on the size of their
families. I do not know that they ever have. When one stops at a local
donut shop, they do not charge $5 on Tuesday when the cashier is a
teenager living at home with his parents and then charge $7 on Thursday
when the cashier is a single mom raising two children. That is not the
way the real world of economics or the business place works. Any
business that tried to do things that way would no longer be in
business.
The wages earned by workers are determined by the value that
consumers place on the goods and services produced by the workers.
Employers cannot pay their employees more than customers are willing to
pay. In fact, in most cases, customers do have
[[Page S3417]]
choices of where to buy their goods and services. They do not have to
stop at the local donut shop. If they want to, they can eat at home, or
some may just decide to do without.
Those who support raising the minimum wage claim that they are
helping workers earn a livable wage, but if Congress could wave a magic
wand and if Congress would raise wages by legislative decree, why would
they stop at $7 an hour? Why not $70? Why not $700? Then everybody
could be a millionaire.
The reason supporters of a minimum wage stop at $7 is because they
know if the minimum wage is raised higher it means yet higher prices
and fewer jobs. To deny these facts is to deny economic reality.
Proof? There is plenty of proof. It is very evident by the fact that
no one has proposed raising the minimum wage to $70 or $700 an hour.
Raising the minimum wage by $7 or $70 or $700 all have ensuing ill
effects. The only difference is the smaller the increase the smaller
the effect. Those who support a smaller increase are hoping that by
only raising the minimum wage to $7, the price increases and the job
losses will be small enough that no one will complain too loudly.
Minimizing the damage will not stop the damage. Raising the minimum
wage to $7 an hour is going to cost employers $6 billion a year. That
is a $6 billion tax increase on a small segment of our economy,
particularly the small business sector of the economy. Ironically, out
of those costs of $6 billion, roughly $5 billion will go to workers who
are not supporting a family while $1 billion is going to go to workers
who are supporting a family.
In other words, raising the minimum wage for everyone means only $1
out of every $6 goes to those who are most in need and particularly
those we are trying to help with this bill to move people from welfare
to work. That is a very expensive way to help low-income families.
One might try to justify this costly and inefficient policy if it
were the only way to help those in need, but as I have already
discussed raising the minimum wage is not about getting people out of
poverty. A single mom working full-time at the minimum wage, with one
or two children, is already out of poverty, thanks to the earned income
tax credit and thanks to food stamps. If we want to help low income
workers, we should support policies like the earned income tax credit
and food stamps that provide help to those who need it the most.
Congress does not have a magic wand. It cannot repeal the law of
supply and demand.
I yield the floor.
The PRESIDING OFFICER. The Senator from Massachusetts.
Mr. KENNEDY. Mr. President, I listened to my friend from Iowa, and he
is my friend. It is amazing to hear the response to an increase in the
minimum wage. They say we are going to let other Government programs
look out after these proud, hard workers who are trying to provide for
themselves and for their families. Effectively, if we follow the way
that the Senator from Iowa suggests, we are going to have to tax more
people a lot more so that those programs are going to be there because
we refuse to have employers do what they should do, and that is to pay
a fair wage.
Sure, everybody could be put on welfare and not have any minimum
wage. What is the possible logic? Those Senators on the other side have
been trying to cut those programs back for years. The programs dealing
with nutrition, home heating and programs for food, they have been
trying to cut those back for years. This administration has been trying
to make EITC much more difficult to get.
In order to oppose the increase in minimum wage, they say, well, the
EITC program is out there. We are talking about proud men and women who
want to work hard and look after their children and have a sense of
dignity and not depend on welfare programs. The answer for those who
are opposed to us is, give them more welfare programs.
That is an insult to these working men and women. We reject that as
an argument. We reject it.
We are standing for the dignity of those working men and women who
ought, in the richest country in the world, in the strongest economy,
to be able to work hard and bring up their children with respect and
dignity and not a handout.
The Senator makes the point why we need the increase in the minimum
wage. Because those workers are not receiving it today on their own.
They should be able to get it. We are committed to trying to get an
increase on the minimum wage.
I yield the floor.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. HARKIN. Mr. President, parliamentary inquiry: We are under a
cloture motion that has been filed on this amendment?
The PRESIDING OFFICER. A cloture motion has been filed on this
amendment.
Mr. HARKIN. Since I have been recognized and I have the floor, is
there a time limit on how long this Senator can speak?
The PRESIDING OFFICER. There is no time limit at this point.
Mr. HARKIN. I thank the Presiding Officer.
Mr. President, first I ask unanimous consent I be added as a
cosponsor on this amendment to raise the minimum wage. I strongly
support the amendment offered by the distinguished Senator from
California, Mrs. Boxer, and Senator Kennedy.
Let's be clear at the outset. The current level of $5.15 an hour as a
minimum wage is a poverty wage--actually less than a poverty wage,
which I will show in a minute. It is a wage that does not respect the
dignity of work, including the most humble work in this country. That
is wrong. I say the President of the United States ought to be ashamed
of himself, this Senate ought to be ashamed of itself, the House of
Representatives ought to be ashamed of itself, that we would let the
minimum wage get as low as it has gotten, forcing more and more
families into poverty and on food stamps.
I just heard my colleague from Iowa saying, rather than raising the
minimum wage, we ought to be putting more into food stamps. What kind
of a solution is that? I thought we were going to give people the
dignity of work. We ought to get them off welfare and get them into
jobs. Now I hear some people say the best thing is giving them more
food stamps. I am all for food stamps. It has been a real blessing to
our society. But that is sort of a welfare answer. It sounds as if we
turned the clock back and we go back on welfare again.
The economic policies of this administration are simply not working
as advertised. It is still sputtering. The recovery remains fragile.
The President has assured us again and again that tax cuts
overwhelmingly for the wealthy will stimulate the economy and create
more jobs and get this country moving. Over the last 3 years we have
had nearly $2 trillion in tax cuts, but we have lost more than 2
million jobs. The President's economic policies, including tax cuts,
outsourcing of jobs, not increasing the minimum wage, refusing to
extend unemployment benefits, are not working. Trickle-down economics
simply, again, is not working.
You don't have to be from Iowa or Nebraska to know you don't
fertilize a tree from the top down. You fertilize the roots, and that
is how we need to stimulate the American economy, by applying stimulus
to the roots, not to the treetops.
There are obvious ways to do this. No. 1, instead of the tax cuts for
the wealthy, you focus tax cuts on working people who need the money
and who will actually spend the extra money here in America.
No. 2, you increase the minimum wage. You put more money in the
pockets of people who will spend the money because they have to, out of
necessity.
No. 3, you extend benefits for the long-term unemployed. Today, March
31, a record 1.1 million Americans will lose their unemployment
benefits--this quarter. This is unfair. It is indecent. It is foolish,
because it will create more drag on the economy. Again, we ought to be
ashamed of ourselves for not extending the unemployment benefits to all
these people who have now lost them.
I strongly support the Boxer amendment as one step we need to take in
addressing the fact we have too many people out of work, and that
people on the bottom of the economic ladder are falling further and
further behind.
[[Page S3418]]
No one in America who works for a living should live in poverty. Yet
for the millions of hard-working Americans with minimum wage jobs, that
is exactly what is happening. In fact, if you look at what has happened
over the last few years, you can see if this is the poverty line right
here for a family of three, going back here to 1971, 1974, 1977, the
minimum wage was pretty darned close to the poverty line. Then during
the Reagan years it started coming down. During the Clinton years it
went up a little bit. Now we are back down again. Look at this gap
compared to where we were before, or even before 1970 when the minimum
wage was actually above the poverty line. When you look at that, it is
no wonder our society has problems. No wonder we are being torn apart
in this country. We have more people working, yet falling further below
the poverty line because we don't increase the minimum wage.
The other side filed a cloture motion, I understand. I asked the
Presiding Officer. He said a cloture motion has been filed on this
amendment. This bill we have before us is TANF, the Temporary
Assistance to Needy Families. The other side has filed a cloture
motion, saying an increase in the minimum wage is not germane, it is
not pertinent to the TANF bill, to Temporary Assistance for Needy
Families. They are saying it is not pertinent because if the cloture
motion is successful tomorrow, this amendment will fall. So they say it
is not pertinent.
Why don't they tell that to Secretary Thompson? Here is what he said
regarding TANF reauthorization:
This administration recognizes that the only way to escape
poverty is through work and that is why we have made work and
jobs that will pay at least the minimum wage the centerpiece
of the reauthorization proposal for the Temporary Assistance
for Needy Families Program.
It is the centerpiece. And they say it is not pertinent. Somebody
better get hold of Mr. Thompson. You better start getting your story
straight. He says it is the centerpiece.
If minimum wage is the centerpiece for TANF reauthorization, then we
ought to be about discussing how much of a minimum wage--not whether it
is pertinent but how much.
Bear in mind again, I heard some talk about teenagers. I keep hearing
about teenagers making minimum wage. They are living at home, they have
this and that. Teenagers, teenagers, teenagers, I hear that all the
time. But you have to look at the facts. Facts are stubborn. Sometimes
facts get in the way of stories. The fact is, 7 million workers would
directly benefit from a minimum wage increase; 35 percent are the sole
earners in their families--35 percent. Maybe some of them are
teenagers. Maybe they are married and out of school, maybe they are 18,
19 years old. Mr. President, 61 percent of those affected are women and
one-third of them are raising children; 15 percent are African American
and 19 percent are Hispanic Americans.
What is this all about teenagers? This is not about teenagers. This
is about Americans who go to work every day. As I said, they do some of
the most humble work in America.
I think I heard my colleague from Iowa saying something about if you
raise the minimum wage, it is bad for business because people will shop
elsewhere because they will raise the price of goods and people still
have choices. We are not putting the minimum wage on one company and
not another, one employer and not another. This is across the board. So
if all of them go up, then there is still competition out there. Maybe
through the competitive urges of the free marketplace they will find
other places to cut costs, be more productive. But don't take it out of
the hides of those who work for a minimum wage.
That is what we are basically saying. That is what Congress is
saying. That is what this President is saying, when we don't increase
the minimum wage. They are saying to businesses all over America: If
you want to cut costs, if you want to increase your profit margins, we
will help you by keeping your minimum wage as low as possible.
If we raise the minimum wage, maybe businesses will find some other
ways of cutting costs and being more productive.
I also heard that if you increase the minimum wage to $7 an hour, it
is a drain on business. It doesn't help the family that much. There
would be more help with food stamps, for example. An increase to $7 an
hour for full-time, year-round workers would add about $3,800 to their
income.
Maybe for Senators and Congressmen who make $150,000 a year--I assume
most of us have stocks and different investments--when you look at the
net worth of the Members of the House and the Senate, what is it? Is it
500 times more than the average American? Maybe $3,800 doesn't seem
like a lot to people here, but to a family on minimum wage, for a low-
income family, $3,800 would be more than a year of groceries. It would
pay 9 months of rent, a year and a half of heat or electricity, or full
tuition at a community college for one of the kids. That is nothing to
scoff at.
People say, Well, it will impact business. Again, facts are stubborn
things. History clearly shows that raising the minimum wage has never
had an impact on jobs, employment, or inflation. In the 4 years after
the last minimum wage increase passed, the economy experienced the
strongest growth in over three decades. Nearly 11 million new jobs were
added at a pace of 218,000 per month. There were 6 million new service
industry jobs, including more than 112 million retail jobs of which
nearly 600,000 were restaurant jobs.
This was after we raised the minimum wage last time. It sure made a
bad impact on this country, didn't it?
It is long overdue. We should be ashamed of ourselves for letting it
fall so low.
Now we are being told we can't have a vote on the TANF bill because
it is not germane. That is exactly what Secretary Thompson said.
Work and jobs that will pay at least a minimum wage is the
centerpiece to the reauthorization proposal of TANF.
Those are Secretary Thompson's words.
We also have to keep in mind that a great majority--61 percent, as I
have pointed out--who would be affected are single parents, mostly
women with children. Unfortunately, the kind of jobs that women who
leave welfare find are minimum wage jobs, which makes it difficult, if
not impossible, to sustain families and meet the demands of raising
children. For these people, survival is a daily goal. They work hard
enough. Their hours are long enough to make ends meet, but only barely.
What this means is they don't have time for their families. They
cannot participate in activities with their children, especially
school-related activities that most of us take for granted.
I would like to do a survey in the Senate of everyone here. I wonder
how many Senators know someone or a family living on the minimum wage.
I wonder how many Senators would actually have some friends who are
families on the minimum wage. I bet you would not find very many who
would actually know anyone. They read about them, but I mean actually
know them or maybe have them as neighbors or friends and meet with them
and talk with them about how they are living on a minimum wage. That
would be an interesting survey to take.
For these people, as I said, survival is their daily goal.
Bear in mind the real value of the minimum wage has fallen
dramatically over the past 30 years. Here is the real value of the
minimum wage shown earlier by Senators Kennedy and Boxer. We have to
keep showing them because these facts are stubborn things. People are
working the same.
Back in 1968, in real 2003 dollars, the minimum wage was $8.50.
In other words, if we had indexed to inflation the minimum wage in
1968, it would be $8.50 an hour. That is just indexed for inflation.
But if you look at where people were back in 1968, look where we are
now. The people who were working back in 1968 at minimum wage jobs are
the same people, the same kind of people, the same class of people who
are working today. They are doing the same kind of jobs. Why was that
job worth $8.50 in 1968, but that same job today is only worth $4.98 an
hour?
You might say the minimum wage is $5.15. But if we don't increase it
by the end of this year, the real value of that will be $4.98 an hour.
Why? It is the same job, the same work. Why was it worth $8.50 an
hour then, and it is only worth $4.98 an hour now? It is because we
haven't done our job about keeping up the minimum wage. We keep pushing
people down.
[[Page S3419]]
That is why there is unrest in America. That is why low-wage people
are saying there is nothing in the system for them because it is so
skewed against them. They work hard and never can get ahead because the
minimum wage is stuck.
The minimum wage employee working 40 hours a week, 52 weeks a year,
earns $10,700 a year. That is $5,000 a year below the poverty line for
a family of three.
Again, here is the poverty line. The red line is for a family of
three. Here is where we were in the past. Before 1970, the minimum wage
was above the poverty line. Now look at the gap. Look how far down it
is.
Poll after poll after poll taken of low-income Americans show that
they don't believe the system is fair. You can read the polls. Look at
what happened to them. You add on to that they don't have health
insurance. You add on to that they do not have any retirement benefits.
You add on to that their pay goes for high heating bills this last
winter. You add on to that many of these people earning the minimum
wage are paying one-third to one-half of their paychecks just for rent.
How many of us pay one-half of our paycheck for rent?
As I said earlier, the minimum wage--I stand corrected. It is not a
poverty wage; it is less than a subsistence wage. And we can't ignore
it any longer.
Three million more Americans are in poverty today than when President
Bush first took office.
I am not saying that to blame it all on the President. I am not going
to say that. Of course not. I am just saying it is a fact.
Today, more than 34 million people live in poverty including 12
million children.
I am not blaming it on the President, or anybody else. I am just
stating a fact.
Among full-time, year-round workers, poverty has doubled since the
late 1970s--from about 1.3 million to 2.6 million in 2002. Poverty has
doubled since the late 1970s.
There is a lot of blame to go around. Rather than blaming anybody,
let's fix it. The best way to fix it is to raise the minimum wage. That
is at the heart of this problem.
An increase to $7 an hour would affect nearly 7 million workers.
I just saw the figures as to what it would mean in Iowa. I have the
figures here as to an increase in the minimum wage in Iowa. If we were
to increase this minimum wage, there would be 104,000 workers in my
State of Iowa who would be making more money--104,000 workers. Do you
know what? They will spend that money. They will spend that money
because they have to spend it, because their rent is high, their
heating bills are high; if they have any health insurance at all, that
is skyrocketing. They are paying for food, paying for the kids. That
money gets spun around in the economy. It would be a shock of stimulus
for the economy.
I am proud to cosponsor the amendment. To say it again, at the heart
of this problem is the fact we are just not paying people for the work
they do. Why is it people who do the dirtiest kind of work, the
humblest kind of work--the kind of people you walk by, and you never
notice them; you go into a restaurant, you go in to eat, and then walk
out, and you do not notice them; a lot of times you go into stores,
they are there, but you kind of walk by them--well, it is time we
noticed them. They deserve to be noticed. They are Americans, and they
are working hard. They are trying to raise their families and do the
right thing, and what do we say to them? Forget it.
I almost hear echoes from some of the comments I have heard on this
floor. I have heard echoes there should not even be a minimum wage.
Now, I did not hear anybody say that. I said I sort of heard echoes of
that: Well, if we set the minimum wage at $7, why can't we set it at
$70 an hour or $700 an hour or $7,000 an hour or something like that?
Well, that is sort of scoffing at these poor people who are working
because it is almost like saying maybe we should not have a minimum
wage at all.
There are a lot of countries that do not have the minimum wage. I
suppose we could be like them. I always tell people: When it comes to
things like having a minimum wage, just keep in mind, there is always
someone poorer than you, more desperate than you, lower down on the
ladder than you, who will work for less than you are going to work for
because they need it. There is always someone poorer, more needy, more
desperate.
Is that what our society says: The law of the jungle? Turn the clock
backward and just have a welfare system? As Senator Kennedy said,
rather than taxing the American people to provide food stamps and
welfare benefits and things like that, it is better to raise the
minimum wage and give them a decent living wage rather than putting
them on welfare. That is bad for the people on welfare.
I supported welfare to work. I believe in it. But in order to move
people from welfare to work, they need some health care benefits; they
need some childcare. Fortunately, we passed the Snowe amendment. We
need an increase in the minimum wage, and they need housing. But
keeping them at this less-than-subsistence wage will not do it.
I have almost heard some echoes, also, that this is some kind of a
partisan issue. I went back to look at this issue. Senator Kennedy
pointed this out, and I have a chart to point it out again. I think it
is very instructive. Since Franklin Roosevelt, when we got our first
minimum wage in 1938, almost every President has raised the minimum
wage, including Eisenhower, Gerald Ford, and George H. W.
Bush. Interestingly, Reagan and this President Bush are both missing.
But it has been bipartisan in the past. We have had Republican
Presidents who have raised the minimum wage, as well as Democratic
Presidents. So I do not think it is a partisan issue at all. It is an
economic issue. And it is how you view the value of work.
Now if you believe people ought to go out there and work for whatever
an employer wants to pay you, and if you don't like it, you can go
somewhere else and try to get something better. We have tried that
before in our country. We see that happening in other Third World
countries because there is always some poor sucker worse off than you
who will work for less than you will.
I really do not think that is the kind of country we want to become.
Work should have honor and dignity, and the minimum wage today is not
giving dignity to the work these people do.
I will close. I see the Senator from Idaho wants to speak. I will
wrap up in a second.
We are talking about Temporary Assistance to Needy Families. The bill
on the floor is food assistance.
Listen to this. A 2003 survey by the U.S. Conference of Mayors--these
are not Democrats--looked at the hunger issue, and here is what they
found: 39 percent of the adults requesting food assistance were
employed. Thirty-nine percent seeking food assistance were employed.
This is from the Conference of Mayors.
They found a leading cause of hunger was low-paying jobs. The
Conference of Mayors found emergency food assistance increased by an
average of 14 percent. Fifty-nine percent of those requesting emergency
food assistance were members of families--children and their parents.
Fifty-nine percent of those who sought emergency food assistance--which
means they were at wits end; they had no money, and they had no other
place to go, so they requested emergency food assistance--59 percent
were members of families--children and their parents.
What did the mayors recommend? What did the Conference of Mayors
recommend? They recommended raising the Federal minimum wage as a way
the Federal Government could help alleviate hunger. We are being told
we cannot do that; we cannot add it to this bill; we cannot even vote
on it.
We saw the same thing on overtime: No, we can't vote on that. Put it
someplace else. No, we can't vote on minimum wage either.
What is the Senate coming to? Why don't we do as the House of
Representatives did, where we used to serve--have a rule where you
can't do anything, just pass it. That is why the Senate is different
than the House. That is why we are supposed to have open and free-form
debate and be able to vote on these issues. But these parliamentary
tactics keeping us from
[[Page S3420]]
voting on things such as overtime, extending unemployment benefits, and
now the minimum wage are unworthy of the Senate, unworthy of this
country, unworthy of our jobs.
I close by saying again, this is an issue that cuts very deeply. I
remember I was in my home State in the last year, and I found an
interesting thing, that more people were relying upon the food banks in
Iowa. I thought to myself: Why is that happening? Our unemployment is
not that high. It went up a little bit, but why were more people going
to food banks in increasing numbers than the unemployment rate was
rising?
I found out these are low-income workers. They are minimum-wage
workers. They get food stamps. But because we have cut back on food
stamps, their food stamps run out about the 20th of the month, and they
have to go to the food banks for the rest of the month. I have to
believe if it is happening in Iowa, it is happening all over the
country.
It is time to give dignity to the people who do the humblest work in
our country. Let's get them back up to what they had in the past. If
their job in the past was worth what today would be $8.50 an hour, it
is at least worth $7 an hour now.
What if we took corporate CEO salaries from 1968 and said they have
to now have the same percentage reduction this year as those on minimum
wage? Boy, the hue and cry that would go up on that one.
I have made my point. I hope we defeat the cloture petition. I hope
we have a vote on increasing the minimum wage, and I hope it passes
overwhelmingly. I hope the President will be on board and support it so
we can give dignity to our workers.
I thank the Senator from Idaho for his patience and yield the floor.
The PRESIDING OFFICER (Mr. Sununu). The Senator from Idaho.
Mr. CRAIG. Mr. President, I have listened most seriously to the
Senator from Iowa on the issue of the minimum wage. My guess is, before
the legislative year is out, we are going to vote on this issue. I
believe it is important the Congress express its will. Certainly the
minimum wage is a part of the total economic makeup of our country, and
we need to be concerned about it. When we are talking about welfare
reform, we know good-paying jobs are a part of getting people off
welfare.
We also know creating an economic climate in which jobs can grow is
another way of making sure we have good-paying jobs, be they minimum
wage or slightly or substantially above. It is the whole of the economy
that makes our country what it is. It provides for the middle class and
the upper class and all of those others who have been the tremendous
energy and engine of this economy for so long.
The day before yesterday and yesterday, I came to the Chamber to
speak about the ever increasing price of energy. Today if the Senator
from Iowa or the Senator from Idaho gassed their car up in this city or
in Idaho or in Des Moines, we would have paid the highest price for gas
ever paid in our history. Does that have impact on poor people or
poorer people? You bet it does. They spend more of the total percentage
of their income for energy than does someone who makes more money, who
is in the upper class of society.
When we talk about the minimum wage and welfare reform and the
economy, should we not be concerned about the price of energy as it
relates to that minimum wage employee who drives to work and drives
home and spends a higher percentage of the amount of money they get
from the minimum wage on energy than any other segment of the economy?
We ought to.
This Senate has denied us the right to speak to that. Now the other
side is suggesting that again we have to go through multiples of
amendments if we bring up an energy bill, even though we debated it a
year ago and even though we debated it the year before that, and even
though we passed it out of the Senate twice and we have had ample time.
And tens of plus amendments later, we have to go through that again,
when this country is hurting more on energy and energy costs than it
ever has.
I think the American people expect more of us than just an endless
debating society that never produces anything. What have I heard in the
Chamber, as I have been speaking about energy the last several days? It
is big oil's fault or it is the President's fault. It is somebody other
than the Congress.
Let me suggest to my fellow Senators: No, it is not the President's
fault and, no, it is not big oil's fault. It is the Senate's fault for
denying the American people a modernized, contemporary energy policy.
The House passed a policy. The House passed the conference. But not
the Senate. No, the Senate couldn't get there because too many of us
had too many different ideas. We are here now sitting as Senators while
the American consumer is spending more today for gas at the pump or gas
that goes to the home for heating than ever in our history.
Shame on us. Shame on us for denying a contemporary, modern energy
policy. We have not touched energy policy in our country for the last
14 years. As a result of that, our policy is obsolete. It doesn't fit
modern America.
As I said yesterday and the day before: Consumption overall as a part
of per capita has gone down, whether it be with the individual consumer
or whether it be with corporate America or business and industry. But
growth in our country has gone up. Yet we have largely denied our
country a progressive supply-related energy policy. In other words, we
have simply ignored the reality of the marketplace of supply and
demand.
We have had all these cute ideas over the last several years about
how we can conserve our way out of this one or we can deny the consumer
the right to have more energy in one form or another and that will
solve the problem. It didn't solve the problem.
During the decade of the 1990s, with unprecedented economic growth in
our country, we used up all of the surpluses that had been built into
the system. Whether it be gas supply for space heating, gas supply at
the pump, whether it was commercial, we used it all up. At the end of
the decade, we were beginning to experience blackouts in California. We
were beginning to experience shortages. But most importantly, that
supply/demand equation had begun to work and prices were edging up very
rapidly.
Here we are, with a 14-year-old policy, and we haven't recognized the
rest of the world has also grown. One of the great growth giants today
in the world is China. China's crude oil imports grew 30 percent last
year, from the same supplier that is supplying 60 percent of our crude
oil, the crude oil markets of the world.
What is happening out there is this very rapid acceleration. We all
want the economy to come back. We want our economy to come back. We
want the world economy to come back so it can buy our goods and
services. And as that economy comes back along with ours, they will
demand more energy.
We know the facts for high gas prices. The price of crude oil
yesterday was $36.25 a barrel. That is why we have high gas prices.
Inventory stocks are down. Fragmented gas markets are different today,
and the introduction of new fuels is phenomenal. We know those are the
realities of what we are doing and what we are dealing with. I don't
know that you can deny it in any other way, unless you want to play raw
politics.
We also know what the situation is in our country today. We import 62
percent of our crude. So the same people supplying that phenomenal
growth in China are also supplying us with our crude. Our refineries
are now operating at record high rates. Gas production is running at
record levels all over the country. Throughout the year, demand
continues to be strong, as we try to get the economy going again. It is
going, and it is growing. That is part of the reason for these record
prices.
Let's talk a little bit about big oil. Let's talk about the collusion
some suggest might be out there. The attorney general of the State of
California did exactly what you would expect. We better go out and
investigate big oil again because gas prices are over $2.30 in
California. Investigate, if you will, but I offer the following for the
record; that is, the reality of all of the investigations we have had.
We have had 29 State and Federal investigations over the last several
decades. Most recently, the U.S. Department of Energy looked at it and
said: Demand exceeds supply.
[[Page S3421]]
What happens when demand exceeds supply? The price goes up.
California Energy Commission--I guess the attorney general out in
California ought to listen to the energy commission. What drove
increases were unusually high costs for crude in a world market. Is
that collusion, or is that supply and demand?
California, listen up. There is your problem. It is called not enough
supply to meet demand of the drivers of California today.
Connecticut Department of Consumer Protection--while numerous factors
contributed to sharp increases in gasoline prices this summer,
wholesalers and retailers were not hiking prices to pad their profits.
Again, a marvelous thing is happening out there. The marketplace,
supply and demand.
I ask unanimous consent to print in the Record a list, starting in
May of 1973 and going through this past year of 2003, of literally
almost 30 different investigations, State and Federal, as it relates to
big oil. Every one of them found there was no collusion.
There being no objection, the material was ordered to be printed in
the Record, as follows:
COMPLETED INVESTIGATIONS OF OIL INDUSTRY PRICING
------------------------------------------------------------------------
Investigating
Date of investigation body Description of probe
------------------------------------------------------------------------
May 1973.................... FTC............ ``. . . investigation of
competition in the
industry is incomplete
and no decision about
any antitrust action has
made made''--New York
Times.
August 1975................. Pennsylvania... Grand jury investigation
underway--Newsweek.
1977-1983................... DOJ............ ``The Justice Department
yesterday ended a six-
year investigation it
said produced scant
evidence that the major
oil companies had
conspired to run up the
price of Persian Gulf
oil in the late
1970s.''--Washington
Post.
May 1979.................... DOJ............ ``President Carter orders
investigation of
gasoline shortages in
California. Report cites
loss of Iranian crude
supplies following
overthrow of the Shah
and finds insufficient
evidence of
collusion.''--Houston
Chronicle, May 29, 1996.
1984........................ DOJ............ ``investigates increases
in home heating oil
prices in the winter of
1983-84.''--Houston
Chronicle, May 29, 1996.
1989........................ 37 State ``Over half the states .
Attorneys . . have launched
General. investigations of
possible price-gouging .
. . Thirty-seven state
attorneys general wrote
to the Justice
department requesting an
investigation of gas-
price increases.''--St.
Petersburg Times.
January 1990................ DOJ............ ``. . . again looks into
home heating oil and
propane prices after
prices spiked during an
especially bitter cold
snap in December
1990.''--Houston
Chronicle, May 29, 1996.
August 1990................. DOJ............ ``The antitrust division
began the investigation
on Aug. 6 in response to
the nearly immediate
increase in gasoline
prices after the
invasion [of Kuwait].''--
New York Times.
``The investigation is
called off two years
later.''--Houston
Chronicle, May 29, 1996.
September 1990.............. United Kingdom. ``The five major UK oil
companies, Shell, Esso,
BP, Texaco and Mobil,
were today cleared by
the Office of Fair
Trading of fixing petrol
pump prices . . . There
was no evidence of
collusion . . .''--Press
Association.
1993-1995................... North Carolina. ``Apparently, the
monopoly question needs
further study.''--
Charleston Gazette
(editorial).
AG Investigation Initiated Minnesota.
in 1994.
1994-1998................... Arizona........ ``Gas prices in Arizona
are high, but don't
blame hush-hush price-
fixing meetings in
corporate boardrooms,
the Attorney General's
Office concluded in a
report released Monday
after a four-year
investigation.''--Arizon
a Republic.
May 1996-May 1997........... DOJ............ ``Bingaman has set up a
five-member panel of
attorneys and economists
within the division `to
study recent increases
of gasoline prices.' If
this task force finds
that market forces are
not responsible . . . it
will investigate to
determine whether there
is any evidence of
collusion within the
industry.''--BNA
Antitrust & Trade
Regulation Daily.
``No enforcement action
was taken,'' a DOJ
spokeswoman said.--
Houston Chronicle, May
20, 1997.
``The [DOJ] completed its
investigation of rapidly
rising gasoline prices
that occurred last
spring by declaring it
found no evidence that
refiners and marketers
engaged in price fixing
or any illegal
activity.''--21st
Century Fuels, June
1997.
May 1996.................... Canada......... ``The [Competition]
Bureau first
investigated allegations
of collusion and price-
fixing in 1973. Several
subsequent inquiries
have all produced the
same result: no evidence
was found to prove that
the big oil companies
act in concert to
dictate retail gasoline
prices.''--Maclean's,
May 27, 1996.
``Officials from the
departments of industry
and natural resources
say privately that the
inquiry . . . is
unlikely to uncover a
sinister conspiracy by
the oil companies to fix
pump prices that often
fluctuate in unison
according to gas
supplies and the time of
year.''--Maclean's, June
3, 1996.
October 1997................ Connecticut.... ``The U.S. Conference of
Northeast Governors
(CONEG) . . . called on
major oil companies to
explain recent gasoline
price increases, and
Connecticut Gov. John
Rowland (R) is expecting
a report this month that
might be referred to the
State Attorney General
for an investigation
into possible price-
fixing.''--Octane Week,
October 13, 1997.
May 1998.................... FTC............ ``After an almost three
year investigation, the
Commission found no
evidence of conduct by
the refiners [in the
Western States] that
violated federal
antitrust laws.'' FTC
press release, May 7,
2001. Investigation
closed.
May 1998.................... Iowa........... ``The Iowa Attorney
General's office
launched an
investigation into price
fixing in Dubuque and
Waterloo. The Attorney
General's office said
from the beginning that
proving price-fixing
without insider would be
difficult and did not
find evidence of it.''--
Des Moines Register.
GAO Study of California GAO............ GAO study of California
Prices Initiated 1999. gasoline prices
requested by Sen.
Feinstein finds the
state's high gasoline
prices are due to the
strict supply and demand
nature of gasoline.
AG Investigation Initiated California..... Preliminary investigation
Summer of 1999. reveals no evidence of
wrongdoing; high gas
prices may be the result
of low competition in
the market.
AG Investigation Initiated Alaska......... ``The investigation was
Summer of 1999. initiated in 1999 in
response to public
complaints about the
high price of gasoline
in Alaska in comparison
to other states,'' [AG]
Botelho said, ``I am
closing the
investigation because
there is insufficient
evidence indicating a
violation of the
antitrust laws.''--
Governor's Press Release
(Nov. 21, 2002).
AG Investigation Initiated Iowa........... ``Iowa Attorney General
Summer of 2000. Tom Miller said Thursday
he uncovered no evidence
of illegal price-fixing,
collusion or antitrust
violations while
investigating spikes in
gasoline prices last
summer.''--The Gazette,
April 20, 2001.
AG Investigation Initiated Missouri....... No evidence of
Summer of 2000. wrongdoing.
Investigation closed.
AG Investigation Initiated Indiana........ No evidence of
Summer of 2000. wrongdoing.
Investigation closed.
Investigation of Midwest FTC............ No evidence of industry
Prices Initiated Summer of wrongdoing/collusion.
2000. Final FTC Report
released March 30, 2001.
Investigation closed.
AG Investigation Initiated New York....... ``Recent higher gasoline
Summer of 2001. costs [in New York] are
not the result of price
gouging, price fixing or
other collusion,
conclude State Attorney
General Eliot
Spitzer.''--Times Union,
May 13, 2001.
AG Investigation Initiated Kentucky....... Initial investigation of
Summer of 2000. Kentucky gasoline prices
last summer [2000] found
no wrongdoing; specific
investigation in
Louisville's West End
remains open.--Cairrier
Journal, May 11, 2001
Impact of Mergers on Gas GAO............ GAO findings due to
prices; Initiated Summer of Senate Subcommittee on
2002. Investigations (Senate
Government Reform
Committee) by August
2002.
AG Investigations Initiated Minnesota...... No evidence of illegal
Summer of 2001. pricing behavior by
retailers or refiners
following terrorist
activity of September
11.
DOE Investigation of DOE............
Gasoline Price Increases;
Initiated September 2003.
Department of Consumer Connecticut.... DCP press release of 11/
Protection. 26/03 states, ``While
numerous factors
contributed to a sharp
increase in gasoline
prices this summer,
wholesalers and
retailers were not
hiking prices to pad
their profits . . .''
------------------------------------------------------------------------
Well, if they are not polluting, out there conspiring to fix the
market, they are profiteering. They have got to be making huge amounts
of money today at $2.35 a gallon in California, or $1.80 in my State.
Look at last year on this chart. This is from BusinessWeek magazine.
Let's talk about the most profitable businesses in the economic sector
of the United States. It is not profitable to own an oil company. You
ought to own a bank. You ought to own diversified finances, real
estate, semiconductor equipment, pharmaceuticals, and biotech. That is
where the returns are, 19 percent, 17, 16, 14, and 12 percent. Let's go
find big oil. Where is big oil? Well, let's see. Big oil is all the way
down at the bottom in the utility area. I believe it is something like
a return on investment of 1.4 percent. Oh, my goodness. Is that
profiteering? I don't think it is profiteering. I think it is called
return on investment versus competition versus price of input product.
And the price of crude oil is $36. That is the reality of what we are
dealing with.
[[Page S3422]]
Here is a problem out in California. Let's go to the next chart
because California worries me. I am glad I don't live there at the
moment. I am glad I am not paying $2.35 or $2.40 a gallon. I am sorry
that Californians are. This is a very interesting chart. It deals with
what we call U.S. gasoline requirements under the Clean Air Act. We
know we have air problems in heavily congested areas where air is
stagnant, and it doesn't move as rapidly as in some other areas. That
is certainly true in the State of California.
Every one of these different colors on this map represents a
requirement for the refining industry to produce a unique kind of
product. We see in the State of California one, two, three--possibly
four types of what we call boutique fuels, or certain blends of fuel.
Every refinery has to shut down and readjust before they can produce
that kind of fuel, and that kind of fuel costs more money than a
standardized kind of fuel. As a result, it does drive prices up, and we
know that to be a reality.
That is part of the problem we face when we look at our clean air
standards in the Clean Air Act. I am not arguing we should not have the
Clean Air Act, but there are times when reasonable flexibility ought to
be offered when consumers are paying unprecedented prices, or maybe we
ought to be concerned about refinery capability and capacity. We have
lost numerous oil refineries in the continental United States over the
last good number of years. Many of our companies today are saying it is
better that we--here is that bad old word--outsource if we want to keep
prices low in this country because Federal regulations and certain
State standards are costing us a great deal of money.
In the area of gasoline, to understand the reason it is $1.80 in
Idaho and $2.35 in California, look at the map. There is part of the
reason. It is not all of the reason, but a substantial part of the
reason that we are dealing with energy in a way that is very
frustrating. Here is the most frustrating thing to do, along with not
being able to pass an Energy bill. When we talk about the economy and
jobs and job creation--this is the investor thinking at this moment--
the average investor who puts money in the business that creates jobs--
here is investor attitude this month. In fact, it comes from a headline
in a Gallup poll survey. It says: ``Overall investors' optimism
declines for the second month in a row in March.'' The No. 1 reason
for the decline in investor attitude was the price of energy because an
investor looking at a company knows that company is going to have to
pay for energy as a part of the output of that company, and it is going
up dramatically. Sixty-four percent said high energy costs are hurting
the economy a lot.
If you listen to the rhetoric on the floor of the Senate for the last
several days, you would not have gained one inkling of that. Nobody has
talked about passing an Energy bill and developing a national energy
policy that gets us back into production. Yes, there is a Senator over
there from Nebraska who agrees with me. We are talking about things
that make for good political ads but darn bad economy, at this moment.
I don't blame the American consumer, and now the American investor who
drives the economy of our country, for saying high energy costs are
going to hurt us and are hurting a lot.
I mentioned on the floor of the Senate yesterday that I talked with a
banker in Idaho who does a lot of operating lines for farmers--not big
farmers but medium-size and small farmers. He called all of his branch
bank managers and said: See if that farmer can afford a 20- to 30-
percent cost in doing business this year because that is where the
energy costs are going to take them on the fertilizer and hydrous
ammonia, a direct result of gas gone up almost 100 percent--how can we
keep an abundant, safe, high-quality food supply if we are going to
cause farmers to produce less because they cannot afford to produce
more?
Now, all of our chemical companies are headed offshore to cheaper
gasoline because we are too busy locking up the public lands of the
West and denying exploration, all in the name of the environment. We
are now talking about raising the minimum wage, and we cannot even
create jobs in other wage categories because we will not allow the
investment. One of the great competitive characteristics of our country
is the tremendous ingenuity and initiative of the American workforce
and low energy costs. Historically, our great wealth was driven by low
energy costs. Now, we are no longer in that category. We are competing
in a much tighter world market because somehow in the decades of the
1980s and 1990s, we forgot you had to produce it before you could use
it. As a result, now we are 60-percent dependent upon foreign oil--60-
percent dependent upon someone other than an American for determining
the price of gasoline at the pump. Well, shame on us. It is a very real
world we live in, and that is the consequence we are dealing with.
So why are we not debating an Energy bill on the floor of the Senate?
Our President, when he came to office, while he was still President-
elect, said the No. 1 priority in this country was to develop a
national energy policy. He acted quickly, put a team together under the
Vice President. They recommended a variety of ideas to us in their
policy. That was 3 years ago, or more, and we are still sitting around
debating it and saying we cannot get there. Now the American consumer
is paying at the highest price ever.
Doesn't the Senate get it? I don't think so. I think the politics of
energy is so sweet that somehow we deny the reality at hand. I think it
is time to cease denying that reality. Here are the facts. The
investment community is saying: Wait a minute, energy prices are high
and getting higher, and they are hurting the economy. It is time that
we do something about it.
Here is the only thing I can do about it, and I am willing to help my
fellow Senators. Go to my Web site, if you would, craig.senate.gov.
There are all the facts and statistics on energy. Anybody listening can
go there, too, and they can see who voted for it and against it and
their phone numbers. I don't think Senators ought to call Senators.
They ought to talk to them on the floor and say that is the thing to
do. There are Senators in this body who deserve a phone call and
deserve to be asked why they voted against the conference report on
energy, why they are denying the American consumer--the minimum wage
person, along with the millionaire--a reasonable energy policy for this
country, which sustains our economy and creates jobs, and that allows
us that competitive force we have always had in the world market. We
were not allowing it. The Senate is not allowing it.
There is a sole reason today why this country does not have a modern
energy policy that involves production, that involves conservation,
that involves new technologies, that involves new resources. The reason
is the Senate is denying that. They have denied it now for 2 years, and
it is time we ante up, we get honest with ourselves and have a vote.
Go to my Web site if you want, I say to my fellow Senators. There it
is: Craig.senate.gov. All the facts and figures are there. The voting
records are there. It is time we get honest with ourselves. It is time
we drop the price at the pump instead of breaking the piggy bank from
which we all live.
That is my priority, and I think as American consumers pay the bill,
it will become their priority. I wish it was the Senate's priority.
I yield the floor.
The PRESIDING OFFICER. The Senator from Nebraska.
Mr. NELSON of Nebraska. Mr. President, I agree with much of what my
colleague from Idaho said with respect to passing the Energy bill. I
think it is important we find ways to become far more energy
independent, rather than dependent, on foreign sources of oil. In
addition to looking for ways to become self-sustaining in our energy
needs, we need to look to the Western Hemisphere for a Western
Hemisphere energy policy to bring together the countries in this
hemisphere to work jointly for our energy needs. I will have more on
this in the future. I commend my colleague for his comments about the
importance of getting an Energy bill. We need to look at renewable
sources of energy.
I know my colleague from Iowa will agree that soy diesel and ethanol
would be just a few of the kinds of things we could do as an
alternative energy policy, and they are all included in the Energy bill
the Senate has passed on a
[[Page S3423]]
couple of occasions and hopefully the White House will work with the
House of Representatives to fashion their version of a bill that will
mesh with ours so we can ultimately pass in the very near future an
Energy bill for the United States so 60 percent reliance on foreign
sources can be reduced as dramatically as we possibly can do it, as
quickly as possible as well, so we can become self-sustaining with our
energy needs.
I wish to also talk today about the effort that has been undertaken
since at least 1996 by Congress and the previous administration, and
that is the fundamental reform of the welfare system. This system,
while seeking to prevent hardship among those hurt by economic
deprivation by providing a safety net, had unfortunately become a
spider web. Too many families were caught in the cycle of poverty, and
the system that was supposed to help them became instead complicit in
maintaining the cycle.
Chief among those reforms was providing more flexibility to States.
As a Governor at the time, I saw firsthand the results of giving those
closest to the unique challenges of the system, the States, the ability
to implement changes to the welfare system.
In Nebraska, we instituted a program called Employment First. This
was a fundamental change to the way welfare worked. No longer would a
person automatically be entitled to benefits if able-bodied. He or she
had to sign a contract which laid out a plan for becoming self-
sufficient. The maximum period of being eligible for benefits was 2
years barring extraordinary circumstances. Yet Employment First also
recognized some persons, especially single women with children, needed
additional help with family matters such as childcare and
transportation.
We provided transitional aid for these challenges, even after they
found employment; if you will, a bridge from welfare to work, a bridge
that was put in place to help people become self-sufficient in the
process of finding employment and leaving welfare.
Public officials were encouraged to consider a new view of the
measurement of assistance. Instead of focusing on how many were added
to the rolls, they looked at how many entered employment. That change
in vision produced dramatic results. The total Nebraska caseload
dropped 11 percent by 1998, the lowest number in 18 years. Average
monthly caseloads fell 30 percent from 1993 levels. A family's time on
assistance had been cut almost two-thirds to 11 months from the time
under the old system, and Nebraska taxpayers saved $14 million moving
families from dependence to independence, from welfare to work.
This is important to note. Nebraska saved $14 million under the new
system. It is important because States, including Nebraska, are now
facing serious budget shortages. In fact, today's Lincoln Journal Star
reports Nebraska leaders had to borrow from the State's cash reserve
fund to make payroll and pay its bills this week. In fact, $58.2
million, which is the exact amount Nebraska received in additional
Federal funds this year, was borrowed from the reserve to fund schools
and other programs throughout the State.
The Federal funds stored in the State's reserve have helped States
during this recession period. Those funds came from a State fiscal
relief measure sponsored by my colleagues Senator Susan Collins of
Maine, Senator Jay Rockefeller of West Virginia, Senator Gordon Smith
of Oregon, and myself. This is exactly what that State fiscal relief
effort intended: to provide fiscal assistance to help States, such as
Nebraska, that are facing chronic budget shortfalls and help them meet
their obligations.
It is important to remember this welfare reform bill will also help
States continue to meet those obligations. For example, the State of
Nebraska sharply cut back eligibility for childcare assistance from 185
percent of poverty to 120 percent of poverty. As a result, about 1,600
Nebraska children lost childcare assistance from the State.
Yesterday the Senate adopted an amendment to add $6 billion for
childcare services to this bill. Under that amendment, Nebraska would
receive $40.8 million of that money to help the State provide for
Nebraska's children. I am proud to say I was one of those in the
majority who voted for that amendment.
With flexibility, the States can tailor their programs to meet their
specific needs and save money in the process. A large part of our
success in Nebraska in the 1990s was due to the new flexibility allowed
under the 1996 law. We now want to expand that flexibility so more
States can craft their own unique methods to succeed.
Yet Employment First also recognized some persons, especially single
women with children, needed additional help with family matters, such
as childcare and transportation, and with the Federal funds that were
provided were able to do that.
Today I wish to talk briefly about the Alexander-Nelson-Carper-
Voinovich amendment or, if I am talking to Nebraskans, the Nelson-
Alexander-Carper-Voinovich amendment that would provide that
flexibility to the States.
Our amendment would create the accountability for a results
demonstration project to provide greater flexibility to up to 10 years.
But we wouldn't just provide flexibility, we would demand results and
accountability. States participating in the project would be required
to ensure all adult TANF recipients have a self-sufficiency plan, much
like Nebraska.
As I said, we have put this to work in Nebraska. It has made a
tremendous difference in how recipients look at their own lives. It
helps them map out their own paths to success and assures they will
have the institutional assistance they need to follow it.
Our amendment would also include targets for increasing the State's
performance, not just increasing employment and job retention, but in
tracking entry earnings and earnings gains and, most importantly, child
well-being. This is vital because reducing the welfare rolls will mean
little if it comes at the expense of children. The amendment would
institute penalties for States that fail to meet their agreed-upon
targets because it means little if it is not accompanied by results.
This proposal will expand upon existing reform measures and will help
strengthen States' abilities to assist those most in need while giving
them the tools they need to succeed. It is worth pointing out this
amendment is sponsored by four former Governors.
We understand the role of the States in making welfare reform a
success because we have all been there. States can do more. They want
to do more. This amendment will help them meet the unique needs of
their citizens by tailoring their programs to address the needs of
recipients in their States.
I recall the times when it was necessary to come to Washington to get
the approval of Health and Human Services to take a unique approach.
This was time consuming, expensive, and delayed the process. What we
want to do is give the Governors the opportunity, through their
legislatures, to address the needs of recipients in their own
respective States, under the theory of the States as the laboratories
of democracy as envisioned by Thomas Jefferson. We want to give them
the opportunity to make those changes and meet the needs of their
respective citizens.
I thank my colleagues, Senator Alexander, who has arrived on the
floor, Senator Carper, and Senator Voinovich for their hard work on
behalf of welfare recipients and their efforts on this amendment. I
urge my colleagues to support this amendment and help the States help
their residents.
The PRESIDING OFFICER. The Senator from Tennessee.
Mr. ALEXANDER. Mr. President, I simply wanted to congratulate the
Senator from Nebraska on his comments. He and I served as Governors, as
he said. We may not have gotten over that entirely as we look at
legislation. We strongly support the revolutionary change in American
life the welfare reform bill has brought since 1996. Half of those on
the welfare rolls are off. The hardest cases remain.
What we are attempting to do with this amendment is to suggest that
we want to try, with up to 10 States, to give the Secretary some
flexibility in finding the best way to help people get from dependence
to independence. If State plans using a combination of work and removal
of barriers to work
[[Page S3424]]
and a variety of other factors can do that according to measurable
results, then that will give us some successes now and information we
can use when we consider this bill in the future.
I congratulate the Senator from Nebraska on his leadership and look
forward to working with him on the amendment.
The PRESIDING OFFICER. The Senator from New Mexico.
Energy
Mr. BINGAMAN. Mr. President, I rise to very briefly speak about some
of the issues my colleague from Idaho raised related to the high price
of gasoline at the pump. I am afraid the impression was created by my
colleague that if the Senate were just to go ahead and pass the energy
bill that is now on the Senate calendar, that would solve the problem
of high gas prices for the American consumer. I think we need to dispel
that notion if that was the impression that some people had.
The truth is, there are three big issues I heard referred to. One is
clearly production of oil is not what it needs to be relative to demand
today to bring prices down, and the world market is indicating that. We
received the very unfortunate news this morning that OPEC had decided
to go ahead with the cut in production they had earlier talked about.
That is unfortunate. Some of the media has speculated that would result
in $40 per barrel of oil in the reasonably near future. If that is the
case, then we will see very high prices for gasoline in this summer
driving season.
In a letter I sent to the President last week on March 24, I had
urged the administration to do all it could to dissuade the OPEC
nations from going ahead with that proposed cut in production. I do not
know what actions the administration took. Clearly, if they did take
actions they were not effective, and accordingly the amount of oil
being produced by OPEC nations will decrease and that will add to the
problem of high prices of gasoline at the pump.
A second item mentioned by my colleague from Idaho was that there is
inadequate refining capacity. That is clearly true. I recognize that.
It is one of the items we deal with in this letter I sent to the
President last week. In that letter, I have urged that the President
take the necessary steps to bring the parties together and to identify
what the barriers are to the construction of additional refining
capacity in this country.
That is not something we are proposing to legislate in an energy
bill. There is nothing in the energy bill that deals with expanding
refining capacity. I do not want anyone who has been watching this
debate to think by passing an energy bill the problem of refining
capacity will be solved.
The Presiding Officer asked the Energy Information Administration to
do a report as to the effect of the pending energy legislation on
prices, production, and availability of fuel in the future, and
essentially the conclusion was the effect of that legislation would be
negligible. Let's not give people the impression the problem of high
prices at the pump is going to be solved by the Senate going ahead and
passing a particular energy bill at this stage.
I would also point out what we all know, which is that we have passed
an energy bill in this Senate in this Congress. We passed an energy
bill in this Senate in the last Congress. So it is not that the Senate
has been unwilling to act on responsible energy legislation.
The third item I wanted to talk about is this whole issue of boutique
fuels. My colleague from Idaho correctly pointed out that one of the
problems we have and one of the reasons why prices stay higher than
they should is there is not enough what is called product flexibility,
that we do not allow refiners to produce product which can be shipped
to enough parts of the country. We have too many different types of
boutique fuels and too many formulations for these boutique fuels
around the country. There are estimated now to be 110 formulations of
these boutique fuels.
What I recommended to the President is what the Cheney energy task
force recommended nearly 3 years ago, and that is the Administrator of
the EPA be directed by the President to work, with technical assistance
from the Secretary of Energy, to require revisions of State
implementation plans to reduce the overall number of fuel
specifications by at least a factor of 5, and preferably closer to a
factor of 10. This is not something that requires legislation. This did
not require legislation when the Cheney task force recommended it; it
does not require legislation now.
In fact, when people go back and look at the Cheney task force
recommendations, there were 105 recommendations listed. They are all
detailed in the appendix to that report. By the administration's own
calculation, 76 of the 105 do not require legislative action; they are
recommendations for administrative action.
This recommendation to the Director of the EPA to deal with this
boutique fuels problem is one of those actions that can be taken by the
administration without any action by this Congress. Again, it is one of
the items I included in the letter we sent to the President last week
urging that they move ahead with this. As far as I am informed, there
has been no action taken on this since May of 2001, when the Cheney
task force report was released.
These are things that could be done. None of them, in and of itself,
is going to dramatically affect the price of gasoline at the pump, but
together they would help moderate the prices of gasoline as we move
into the summer driving season. For that reason, I think there are
actions that should be taken. These are 3 of the 13 different
recommendations contained in the letter. None of those recommendations
requires legislation to be passed.
Clearly, there are provisions of law that I favor enacting and I
think we should try to enact before the end of this Congress, and I
hope we are able to do so. To leave the impression that inaction in
dealing with the price of gasoline is purely a failure of the Congress
is just misleading.
For that reason, I urge everyone to review that letter I sent last
week. I hope we will have more debate in the coming days about those
steps that can be taken in the near term to deal with the very high
price of gasoline and to deal with the very high price of natural gas,
which, of course, we are seeing in the utility and heating bills we all
have to pay.
I know my colleagues are waiting to speak. I yield the floor.
The PRESIDING OFFICER. The Senator from Washington.
Ms. CANTWELL. Mr. President, I know we are here today to talk about
TANF, the Temporary Assistance to Needy Families program. That program
is a safety net for the American public. I want to talk about another
safety net program--the safety net for American workers--that will
provide its last benefit today, March 31. Today is the last day any
American worker will receive benefits from the Temporary Emergency
Unemployment Compensation program, which has been providing the last of
the Federal unemployment benefits to those who came onto the program
before it expired on December 21. As of today, there are 1.1 million
people who have exhausted their State benefit without any Federal
program to pick them up.
This is more than a dozen times that I have been to the floor to talk
about this program and the need to reinstate the Federal unemployment
benefits program. I think my colleagues clearly understand why I am
here. In fact, we have had a majority of my colleagues in the Senate
and a majority of my colleagues in the House support a reinstatement of
this Federal program for unemployment benefits. The reason they have
supported this program is that our economy has not recovered from the
recession and has not created enough jobs to get America back to work.
That means Americans who have been unemployed through no fault of their
own, who are going out, hitting the pavement, trying to find jobs,
can't find work.
The Federal program for unemployment benefits was created to take
care of Americans during times like this. That is why we have, in the
past 2 years, supported a Federal program that provides 13 weeks of
Federal unemployment benefits to all states and 13 additional weeks for
other States that have unemployment rates significantly higher than the
national average.
I have come to the floor today because today we are leaving that last
[[Page S3425]]
person in America, who today is receiving his or her last bit of
federal help, out in the cold. And we are going to continue to see
thousands more Americans left out in the cold every week.
I met with many of my constituents who have had to cash in their
pensions, or who have had to withdraw from long-term savings meant for
college tuition, or who have had to take all sorts of extraordinary
measures to make sure they can continue to pay their bills. They have
had to take these measures because we have not owned up to our
obligation, which is to help individuals and the economy in a time of
recession.
Let's recap this issue and how we got to this point. Many people look
at this debate and see what amounts to fairly minor job growth and
conclude that the economy is going to get better. I am all for the
economy getting better. I actually believe in the potential of many
sectors in the American economy to lead us back to a stronger place. I
believe in aviation and biotech and nanotechnology and software.
Someday jobs are going to grow in America.
Right now, however, we are still feeling the aftershocks of a
recession. Back in 2002, the Bush administration projected that the
economy would lose about 100,000. What happened in 2002, however, was
that we actually lost 1.5 million jobs in America. The Administration
did not have a handle on what was going on with the economy, which
resulted in job projection that were way off.
In 2003, the Bush administration tried again. They projected that the
economy was actually going to pick up. A lot of us, while we might not
have agreed with the President's economic policies, wanted to hope for
the best and wanted to see economic growth. We wanted those Americans
who were without jobs to actually find employment. But, the economy in
2003 certainly didn't perform the way we thought it was going to
perform. Even though the White House projected 1.7 million new jobs,
the economy actually lost 406,000 jobs.
That leads us to 2004. The President and his economic advisers have
projected that the economy will grow by 2.6 million jobs this year. And
by God, this Member of the Senate would sit down and not say another
word about unemployment benefits if this administration would say that
they actually believe in their projection. I would sit down and not say
another word on unemployment benefits, even though they were wrong in
2002 and 2003. But, in fact, three Cabinet Secretaries of the
administration came to my State, and when asked about the projection of
2.6 million number jobs--their own projection--they basically said:
Well, we don't really believe those numbers. It is kind of a rounding
error.
I can tell you that the constituents of my State and across America
are not a rounding error. They are people who are counting on a Federal
program to help them. Their employers paid into this program for this
very circumstance, when the economy is suffering from the aftershocks
of a recession and there are no jobs to be had. That is why we want to
help these individuals with a bill to reinstate the unemployment
benefits program.
Let's look at the rest of the country because some of my colleagues
seem to think that apart from a few states with high unemployment,
things aren't so bad. I know Washington State has been hit hard. In
fact, the Northwest as a region has topped the unemployment rate
spectrum for some time. So, there are those who say this is a
Washington state problem, or a Northwest problem. Yes, we were deeply
affected by 9/11. Washington is heavily dependent on aviation. Yes,
there was a huge downturn in the aviation industry. There is no
surprise that people don't want to fly when you have an international
recession going on. No wonder people don't want to travel. That has
started to recover now, after almost 2 years. But this is not only a
problem for the Northwest.
Look at these numbers throughout the country: In Ohio, 168,000
manufacturing jobs lost since 2001; in Texas, 175,000; my State, 66,000
jobs; California, 350,000; Pennsylvania, 154,000.
Practically all across America, save Nevada--maybe the Senators from
Nevada could tell me why--and Alaska, every state has lost
manufacturing jobs since Bush took office. This is only manufacturing
jobs. In the Northwest we have lost jobs in software and in a variety
of other industries. But this chart proves it is a nationwide problem.
Everywhere in America, everywhere, we have lost manufacturing jobs.
That has been a challenge to the American workers.
Let's talk about this as an economic issue because, having been in
business, I want my colleagues to understand that this is a complex
problem. We ought to celebrate the high productivity growth. This high
growth means the economic pie is getting bigger but all that extra
money in Gross Domestic Product has actually gone to corporate profits.
Now, it is not a bad thing for companies to be profitable. They need
to be. They want to give a return to investors. There is nothing wrong
with that, in and of itself. But what is wrong is when we fail to
recognize that investors are winning, but laid-off workers are not. Our
economy is not behaving the same way it did in the past. We are seeing
a growth in productivity growth, but that has not actually helped us
produce jobs.
In the 1990s we had some job loss, but we also had tremendous job
growth. People don't think about that. They think in the 1990s it was
probably just go-go-go and everything was very nice for America.
We actually had a lot of job loss in the 1990s.
The point is we had more job growth than we had job loss. So, unlike
today, the people who lost their jobs in the 1990s were actually able
to go somewhere else and get a new job. Today, people don't have that
same opportunity once they have lost a job to find other employment.
A Business Week article came out just a few weeks ago entitled
``Where Are The Jobs?'' I recommend it to all my colleagues. It goes
through each of these issues and greatly amplifies the problems we are
facing and why it is imperative for us to do something about jobs and
unemployment benefits. We see executive salaries have gone up and
corporate profits have gone up, but then number of jobs has actually
gone down.
Again, I am not saying it is horrible that we have had productivity
increases--not at all. I'm just saying that if we only look at Gross
Domestic Product, we miss a key part of the story. Everything isn't
fine if you are not creating jobs.
Let's take a look at a cartoon from one of my favorite cartoonists
from the Seattle paper. I thought this cartoon depicted the problem
best. While the CEO compensation is going up, middle-class wages and
the number of workers with health insurance is going down. These
workers are the people who are barely holding on in this difficult
economy.
That is what we have to recognize--millions of Americans are barely
holding on. I am not saying our colleagues are totally heartless about
this. But when you know that there are 1.1 million people without a
paycheck or an unemployment check, and you know that you have the power
to do something about that and you don't, I start to wonder whether
either there is some heartlessness, or whether it is just a fundamental
misunderstanding about what is going on with the economy. You can't
just simplistically say everything is great because gross domestic
product and productivity are up. It doesn't work that way. We have to
get serious about this.
As the Business Week article pointed out, because of technology, cost
pressures, the price of health care and political and economic problems
the link between strong growth and job creation appears to be broken.
We don't know what is wrong.
That is a quote from Business Week. That is a business publication
that talks to businesses, reports on businesses, reports on
profitability. So when Business Week asked where the jobs are, they
answered that the link between strong growth and job creation appears
to be broken.
This article chronicles these pressures, which are quite obvious if
you think about it, how technology is increasing productivity, how we
have increased global competition, how we have skyrocketing health care
costs, and numerous other things. So, employers aren't hiring, but then
why hasn't the unemployment rate increased?
[[Page S3426]]
Some of my colleagues have pointed out that the unemployment rate is
holding at 5.6 percent. They say that we don't have to do anything
about the unemployment insurance at the Federal level. Well, we cannot
hang our hat on the 5.6 number because that number hides what is really
going on with jobs in America; chiefly, that people are dropping out of
the labor force.
If we count the 392,000 people who gave up looking for jobs, we find
the unemployment rate would be more like 7.4 percent.
But, my colleagues want to say all is fine at 5.6 percent. That is a
great number. We should be happy with it. Don't worry. Let us all go
home. We have jobs. We can pay our mortgage payments, but not everybody
in America can. We have 1.8 percent of the labor force totally out of
the picture. If we look at the unemployment rate, it would be more like
7.4 percent.
The question is whether we are going to keep hiding behind these
economic indicators and claim the economy is rosy for American workers.
It may be rosy for corporate America and for shareholders, but it is
not so rosy for the American worker. We have to come to terms with
whether we are going to do our job are reinstate the Federal program or
not.
Is that such a bad idea? I don't think it is such a bad idea. I think
it is pretty simple.
I am kind of amazed it isn't more clear to my colleagues how
unemployment insurance fits in with a constructive economic plan. My
support for this program is not because it as a social program. As a
former businessperson I view it as economic stimulus. With these
benefits, laid-off workers continue to put money into the local economy
and pay the mortgage and everything else. That is helpful.
When Alan Greenspan testified before a committee this month, he said,
``Extending unemployment insurance is not a bad idea.'' In fact, he
said, ``At times like this, I support extension of unemployment
insurance.''
I wasn't surprised when later I heard that Treasury Secretary Snow
last week at a hearing said, ``If Congress acts, the President will
sign the legislation.''
Well, there is one hat in the hat trick gone of those who oppose this
legislation. At least we know now the President is saying he is going
to support it. I wish he would call on a few Members on the other side
of the aisle. We could certainly use his help.
I am also bolstered by the fact that even the White House Press
Secretary Scott McClellan, at a press conference after Snow's comments
said, ``We have always said we would work with Congress on the issue of
unemployment benefits.''
If that isn't an invitation to pass this legislation today, I don't
know what is.
American workers who have been left out in the cold and who, with
their employers, have paid into the unemployment trust fund ought to
get the support they deserve.
I remind my colleagues that a majority of Members in both the House
and the Senate--58 Members over here and 227 Members in the House of
Representatives--have voted in support of reinstating this program.
The fundamental question for an unemployed person sitting at home--
whether you are in Detroit or Pittsburgh or in Washington State--is if
both the House and Senate have a majority of Members voting for this,
if we have the Secretary of Treasury supporting it, if we have the
President's spokespeople saying they will work with the Congress on it,
why can't we get unemployment benefits for the American worker?
I am not going to continue to belabor this point on the floor.
I go back to my business experience. I trust the fact that people who
understand business and how to stimulate the economy know something
needs to happen.
This Business Week article didn't give a knee-jerk reaction to our
problem. There are probably 40 pages in this publication about this
issue--why we have the unemployment rate, what our economy's illnesses
are, and what we can do to recover. It is a very thoughtful piece. They
conclude that Government action will act as a bridge and will help the
economy cross over the extended valley of almost nonexistent hiring.
I think they have said it best. It is time for us to act. It is time
for us to do something on this issue.
Unanimous Consent Request
I ask unanimous consent that the Senate now proceed to calendar No.
470, S. 2250, a bill to extend the Temporary Extended Unemployment
Compensation Act of 2002 for displaced workers, that the bill be read
three times and passed, and the motion to reconsider be laid on the
table without intervening action or debate.
The PRESIDING OFFICER. In my capacity as a Senator from New
Hampshire, I object.
Objection is heard.
Mr. DODD. Mr. President, will my colleague yield before she yields
the floor?
Ms. CANTWELL. Yes.
Mr. DODD. I commend my colleague from Washington. She has talked
about this on numerous occasions. Again, she has very eloquently laid
out a very thoughtful argument about exactly the problems which exist
across the country when it comes to job creation. As someone who has
spent an earlier part of her life in the private sector--very
successfully, I might add--she brings a very special knowledge and
awareness to these issues and this debate and discussion.
I wonder if my colleague has seen the most recent statistics. In
fact, they were released today from the Bureau of Labor Statistics. I
do not believe my colleague referenced them, but they illustrate the
point she is making.
According to them:
As of February 2004, 35 states have failed to get back to
their pre-recession employment levels. Furthermore, 49 states
have not created enough jobs to keep up with the natural
growth in the number of potential workers, as job growth has
lagged in working-age population since March 2001. As for the
unemployed, 43 states have higher unemployment rates than
when the recession began.
And, lastly, they go in and point out a projected job creation of
306,000 jobs per month. Obviously, we are way off those numbers.
According to the Bureau of Labor Statistics, which does not have a
political ax to grind at all--national job creation has fallen over two
million jobs short of that pace. . . .job growth projected for the Bush
Administration's economic plan has fallen short in 49 of the 50 states
as of February 2004. Thirteen states have actually lost jobs since the
Administration's tax cut was supposed to start creating job growth.
I was not sure if my colleague was aware of those numbers. Don't they
make the case even further? These are numbers released today, not going
back 6 months. But they point out, once again, the sluggishness, to put
it mildly, of job creation.
I wonder if my colleague has any statement on that?
Ms. CANTWELL. I thank the Senator for his question.
I had not seen those specific numbers, but for the year 2004, the
estimate was for 2.6 million jobs. And if you take that by a monthly
basis, our pace should be more at 250,000 jobs. We have now seen the
January and February numbers, and they are nowhere close to that. In
fact, December and January were actually revised down from their
original projections.
Now, we will either see, this Friday or the following Friday, what
the numbers are for March. I do not expect them to be anywhere near
close to the 250,000 range that would keep us on pace for the original
2.6 million projection.
But the Senator is correct in saying the job growth is not happening,
which is the point I was trying to make. I see the other side of the
aisle has objected to my unanimous consent request. I have made my
point on this issue.
Does the Senator have another question?
Mr. DODD. If my colleague will yield for one additional question. I
heard the objection expressed by the distinguished chairman of the
Finance Committee. Does my colleague from Washington have any
indication when we might get a chance to actually vote on this matter?
I think there have been 90,000 people a week, if I am not mistaken, who
exhausted their unemployment benefits--90,000 of our fellow citizens.
Yet we cannot even get a vote on whether or not we can extend these
benefits.
Is there any indication my colleague has received or heard from the
Republican leadership that we might get a chance to vote on whether we
could extend these benefits?
[[Page S3427]]
Ms. CANTWELL. Again, I appreciate the comments of the Senator from
Connecticut, and his question, because I think this must be about the
15th time or 16th time we have been to the floor to ask for unanimous
consent to bring this issue up. It is a priority, we believe, for
America, and it should be brought up.
As to your question, I have heard rumblings from House Members in
positions of leadership from the other side that they, too, want a vote
on it. They are interested in having us send them something. So I think
the hat trick needs to stop. We need to tell America who is holding up
this bill. We need to go forward in giving the American people the kind
of security and support they need in this economic downturn.
I yield the floor.
Mr. DODD. I thank my colleague.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. GRASSLEY. If she is yielding the floor, then I want the floor.
The PRESIDING OFFICER. The Senator has been recognized.
Mr. DODD. Will my colleague from Iowa yield--maybe we can work out a
sequence. I know the Senator from Texas has some comments. I presume
others do, too----
Mr. GRASSLEY. Would it be OK if I take 5 minutes?
Mr. DODD. Absolutely. Even more.
Mr. GRASSLEY. Or even 6 or 7 minutes.
Mr. DODD. Even 10.
Mr. GRASSLEY. That is what I would like to do.
First of all, the Senator from Connecticut asks a legitimate question
of the Senator from Washington about when this might come up. There is
an orderly way of doing things around here. And usually in the Senate,
the leader--and that is not me; that is Senator Frist from Tennessee--
sets the agenda for the Senate.
It is my understanding that right now we are working on it. I do not
know whether the Senator from Washington or the Senator from
Connecticut has been in contact with the leadership of the Senate so we
can do things in an orderly way or whether they want to make political
points. But I hope they want to do it in an orderly way because that is
the way things get done around here. So it is not with pleasure that I
object right now, and look like a bad person to the Senator from
Washington--because she has always treated me very fairly in her
service in the Senate--and to object particularly when we are probably,
in a matter of hours or a few days, going to pass this legislation. I
am sure it is going to be passed in a way so that the unemployment
compensation is seamless for those who are otherwise entitled to it.
That is all I can do to answer the question of the Senator from
Connecticut. It is my firm conviction it is going to happen.
Now, maybe I think things are going to happen, but they might not
because of something beyond what I know now. But I think they are going
to happen. I know there have already been suggestions made between the
two leaders of the Senate's political parties--our respective
caucuses--to move some of these important issues along.
But do the members of the Democratic Party in the Senate think only
Democrats have important issues they want to bring up? Don't they think
there might be a few Republicans who have something they want to bring
up? So you work these accommodations out. That is what I think we ought
to do.
But what I would like to do, for just a few minutes, is speak to--not
to challenge anything the Senator from Washington said about
unemployment because, factually, I do not think you can do that--but
there are other thoughts that need to be put on the table at the same
time.
I made a presentation here 2 weeks ago to try to bring into this
debate points of view that are made by the intellectual wing of the
Democratic Party to offset what we have just heard from the political
wing of the Democratic Party. And I quoted a former Democratic
Secretary of Labor in the Clinton administration, Robert Reich. I want
to quote him again because he writes very eloquently about job changes
going on in America and about job loss in America.
I will quote this long paragraph:
It's true that U.S. manufacturing employment has been
dropping for many years, but that's not primarily due to
foreigners taking these jobs. Factory jobs are vanishing all
over the world. Economists at Alliance Capital Management
took a look at employment trends in 20 large economies and
found that between 1995 and 2002, 22 million factory jobs had
disappeared.
Now get this:
The U.S. wasn't even the biggest loser. We lost about 11
percent of our manufacturing jobs in that period, but the
Japanese lost 16 percent of theirs. Even developing nations
lost factory jobs: Brazil suffered a 20 percent decline,
China a 15 percent drop. What happened to factory jobs? In
two words, higher productivity.
He says:
I recently toured a U.S. factory containing two employees
and 400 computerized robots. The two live people sat in front
of computer screens and instructed the robots. In a few years
this factory won't have a single employee on site, except for
an occasional visiting technician who repairs and upgrades
the robots, like the gas man changing your meter.
The points about productivity she made very well, I believe. But here
is the other side of that. You can create jobs and not have
productivity--be inefficient, be uncompetitive, and not have a business
after a while. Or you can be productive because enhancing productivity
in America is what it takes to raise wages. If you want to increase the
standard of living in America, you have to raise wages. To raise wages,
you have to enhance productivity.
So are they suggesting we ought to turn the clock back and forget
about productivity, forget about raising the standard of living in
America? Do they want us to become some Third World economy over the
period of the next 50 years, if you went down that road, or do you want
to do what America can do best, the other things Secretary Reich is
referring to? We have a knowledge base in America. Take advantage of
that knowledge base. Create jobs that are more productive and, in the
process, raise wages and raise the standard of living. Those are the
choices we have.
America is a dynamic economy. Every month 7 million jobs go out of
existence, and 7 million jobs come into existence. It would be ideal if
it were more than 7 million jobs coming on board. That hasn't happened,
and that is why we have the 2.3 million jobs that are referred to all
the time.
Do you think it is always going to be this way in America? Absolutely
not, because of the dynamic economy we have. It is because we are
always enhancing productivity that we are going to do better.
You don't have to be a defeatist when it comes to the economy. We
have gone through tougher times. We have gone through tougher times
when unemployment was 25 percent, not 5.6 percent. We got through it.
America is stronger today. Don't lose faith in America.
Ms. CANTWELL. Will the Senator yield for a question?
Mr. GRASSLEY. Yes, I will yield for a question.
Ms. CANTWELL. I thank the Senator. This Senator has the utmost
respect for him and his positions and his understanding of this issue.
He is right. Productivity is something we want to embrace. It is good
for America. You will not that I did not talk about the outsourcing
issue. I talked about the fact that these things are good and there are
lots of sectors of the economy that are going to be very robust for us
in the future, issues the Senator is well advised on--nanotechnology,
biotechnology, aerospace, and software. They are all going to be
positive sectors.
The question is, what do we do in this particular recession when
things haven't been so positive? I certainly respect the challenge the
Senator has managing this particular legislation and moving it through
the process. I have found him one of the most cooperative Members with
whom to work.
But I feel compelled to ask: Is it possible, then, if we cannot pass
this bill by Unanimous Consent, can we bring up amendment No. 2940 for
an up-or-down vote which is a vote on the unemployment benefits and do
that as part of the TANF legislation?
Mr. GRASSLEY. The Senator asks a very legitimate question. For my
part, eventually we have to face this. I don't care how we face it, as
a separate bill or as an amendment. I think she has to ask somebody
just one step above my
[[Page S3428]]
pay grade to get an answer to that. I am not prepared to answer that. I
do not have an answer from the people that give it because, as I said,
the leader sets the schedule. I respect the leader, and I don't want to
put him in a position. I might be able to say, but I don't have
certainty of it. So I don't want to put him in a bad position.
Ms. CANTWELL. I thank the Senator from Iowa.
The PRESIDING OFFICER. Does the Senator from Iowa yield the floor?
Mr. GRASSLEY. I yield the floor.
The PRESIDING OFFICER. The Senator from Connecticut.
Mr. DODD. Mr. President, there are three or four of us here. Maybe we
should make a unanimous consent request. I plan on taking about 15
minutes. I would ask unanimous consent that I be allowed to proceed for
15 minutes. My colleague from Texas was next on the floor. I don't know
how much time he would request, and then I know our colleagues from
Wisconsin and from Delaware are here as well. Maybe we could set up a
process so we will have predictability to proceed. May I ask my
colleague how much time he would like?
Mr. CORNYN. Fifteen minutes.
Mr. DODD. And the Senator from Wisconsin?
Mr. FEINGOLD. Twenty minutes.
Mr. DODD. And my colleague from Delaware?
Mr. CARPER. Ten minutes.
Mr. DODD. Mr. President, I ask unanimous consent that at the
conclusion of my remarks, the Senator from Texas be recognized for 15
minutes, the Senator from Wisconsin be recognized for 20 minutes, and
the Senator from Delaware for 15 minutes.
The PRESIDING OFFICER. Is there objection?
Mr. GRASSLEY. Reserving the right to object, I don't think I need to
object, but I think there ought to be some consideration that if other
Republicans come to the Chamber, we don't have Democrats ganging up on
us to give one point of view. There ought to be some accommodation to
Republicans if they would come over here. I don't expect anybody beyond
the Senator from Texas to come over and speak, but if they do, I would
hope you will be a gentleman and try to work them in so we let America
know there are two sides to every story.
Mr. DODD. I have no objection to that.
Mr. GRASSLEY. With that consideration, I do not object.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Connecticut.
Mr. DODD. Mr. President, before my colleague from Iowa leaves the
floor, I want to express my gratitude to the Senator from Iowa, as I
did yesterday, for his support of the amendment offered by the Senator
from Maine, Ms. Snowe, and me on the childcare provisions. It was a
significant vote: 78 to 20 was the final vote.
Certainly, the chairman of the Finance Committee, the Senator from
Iowa, was tremendously helpful in that regard. I wouldn't want him to
leave without once again expressing my sincere appreciation for his
support. I have always been treated well by him. We have served
together now for almost three decades in the Congress, and we have
always had a strong and good relationship with each other.
I was disappointed by the position of the administration. To quote
them from their bulletin:
In considering this legislation, the administration would
strongly oppose any amendment that increases funding for the
Child Development Block Grant fund.
``Strongly oppose'' is an indication of how they fail to understand
what I think the Senator from Iowa pointed out--certainly the Senator
from Maine did--the critical transition that is necessary from welfare
to work, particularly considering the jobs these people are able to
get. Most of them are very low-wage jobs. Having a strong childcare
component is the lifeboat that will get them from one side of the shore
of this raging river to the other, the side of the shore from welfare
dependency to work.
If you cannot get across that gulf because you have young children,
as many of these people do who are presently on welfare--trying to get
to work, or those who work today barely holding on--then the likelihood
they are going to succeed is very small.
There was a strong vote in this Chamber yesterday to support the
effort to provide the assistance for literally thousands of young
children who are on waiting lists in 24 States that we know about, some
600,000 who will need that kind of assistance.
I am terribly disappointed the administration strongly opposes
childcare assistance. My hope is the position of this body will prevail
in the conference, if we get there.
I also want to comment briefly on the issue of the minimum wage. I
thank our colleagues from California and Massachusetts who have raised
it. The better description of this might be called a livable wage. We
talk about the minimum wage, but what we are really looking for is a
livable wage. It is a standard we have embraced for years.
Administrations, regardless of party, have always embraced the idea of
setting a floor of what ought to be a livable wage. It is hardly
livable when you consider the poverty level for a family of three is
$15,700 and we are talking about people making $10,700 a year working
full time making minimum wage. That is $5,000 below the poverty level.
I can't even imagine anywhere in the United States one could live today
as a family of three with a gross income of $10,700. And that is what
we are talking about.
There are 34 million people who are living in poverty in the United
States. In a nation of 280 million people, 12 million are children
living in poverty. Obviously, we are not going to solve that problem
simply by raising the minimum wage level, but we certainly want to give
people a chance to be hired for a little more than $5 an hour in the
21st century. As we begin trying to move people from welfare to work so
they at least have a chance, once they get that job, to hold on and
then move into more independent living, they must be able to earn a
livable wage.
So I am terribly disappointed again that we have not been able to
have a vote on this matter. I don't think it is terribly complicated. A
livable wage in the United States, certainly in light of what happened
since the last time we raised it, is in order--considering that every
administration, from the most progressive to the most conservative, has
found time and space in which to increase the minimum wage. This is one
of the longest periods of time we have ever gone without increasing
that. It has been 7 years since we have actually raised the minimum
wage.
During that same time, by the way, this body found room to increase
our salaries six different times; six times we have raised our
salaries. Yet, in 7 years, we have not increased the minimum wage. I
have not objected to salary increases for Congress. I understand that.
The point is, when we find time to debate and vote on matters that
allow us on six different occasions to raise our salaries and not on
one occasion have we been able to raise the minimum wage or the livable
wage for people living in the levels of poverty they do, this is
something I find rather distressing, to put it mildly.
The great majority of welfare payments go to single mothers.
Unfortunately, the kinds of jobs women leaving welfare find are often
minimum wage jobs, making it very difficult, if not impossible, to
sustain a family and meet the demands of raising children. Life is
precarious for low-income people, particularly for single mothers
raising children. In the U.S., regardless of whether they have been on
welfare or not, for them, survival is a daily goal. If they work hard
enough and their hours are long enough, maybe they can make ends meet,
but only barely. They don't have time for their families because they
are working tremendous hours, sometimes a couple of jobs to make ends
meet. They are not buying homes, going on vacation, going to the
theater, or symphonies, or buying extra clothes. They are trying to
hold their families together. The idea of buying gifts for children,
taking them on special trips, that is not part of the family's agenda
if you are part of the 34 million people in this country living in
poverty. We are trying to get that minimum wage after 7 years to a
point that makes it possible to at least make it a little easier to
meet the daily goal of survival. We must stop asking families to do it
alone. They are working too many hours for too little pay.
[[Page S3429]]
Often these children who are being raised in this environment are not
entering our school system--particularly well prepared to learn. Talk
to any teacher in any rural area where there is poverty, or to a
teacher who works in our inner cities where poverty exists. Without
exception, regardless of their politics, teachers will tell you
children who are not getting the attention and time and care needed are
starting their lives way behind.
Ultimately, we pay a price in this country for that. I will not
suggest to you the minimum wage solves all of those problems. But
should we not in this great country, after 7 long years, provide an
extra couple of dollars an hour so people might have a little bit more
income to provide for their children. We need to help raise wages for
these families so they can make ends meet and improve the quality of
their lives. One of the best first steps is to ensure the work pays a
fair, livable wage. The real value of the livable wage has fallen
dramatically over the past 30 years. The livable wage workers are being
left further behind every year. Working families have waited long
enough. Minimum wage employees work 40 hours a week, 52 weeks a year,
and earn $10,700. That is if you work every week. Forget that 2 weeks
vacation or even 1 week of vacation--you earn $10,700.
This is the 21st century. In America, what community can you live in
with a family of 3 on $10,700? I don't think you are going to find
one. The poverty level is approximately $15,000 for a family of 3. We
must raise the minimum wage to $7 an hour, and I think we can do it.
Under the proposed bill, we go from $5.15 to $5.85 to, one year
later, $6.45, and the year after that, to $7. That is what we are
proposing. I suspect some negotiation might happen in order to get
something done. But, we cannot even vote on the issue.
Today, more than 34 million people live in poverty, including 12
million children. Among full-time, year-round workers poverty has
doubled since the late 1970s, from 1.3 million then to 2.6 million in
2002. An unacceptably low minimum wage is a key part of the problem we
are trying to solve. Every day the minimum wage is not increased, it
continues to lose value and workers fall farther behind.
Minimum wage workers have already lost all of the gains of the 1996-
1997 increase, 7 long years ago. Today, the real value of the minimum
wage is more than $3 below what it was in 1968. To have the purchasing
power it had in 1968, the minimum wage would actually have to be closer
to $8.50 an hour than to $5.15, which is where we are today.
In the past 7 years, salaries of lawmakers have gone up by $23,400,
giving ourselves 6 raises, while minimum wage workers continue to earn
$10,700 a year. Nearly 7 million workers would directly benefit from
the proposed minimum wage increase 35 percent are their family's sole
earners and 61 percent are women. Almost one-third of those women are
raising children. An increase to $7 an hour for a full-time, year-round
worker would add $3,800 to their income.
What does that buy? If you are living in affluence, not much. But
$3,800 for a minimum wage worker and their families means buying more
than a year of groceries; 9 months of rent; a year and a half of heat
and electricity in their homes; or full tuition for a community college
degree. I know there are those who object to this increase and believe
it is going to slow economic growth in the country. That is not true.
Ever since there has been a minimum wage increase, there has been no
ill effect on economic growth in the country. I suggest by doing this,
there is a greater likelihood we are going to keep people in the
workforce--even if they are minimum wage jobs--and allow them to
provide the bare survival needs of their families, so they don't fall
back into a dependency situation of one kind or another.
I think we all become winners if we give these people a chance to
have a higher standard of living than that which they are presently
getting with the $5.15 an hour wage.
I know it is not the job of the chairman of the Finance Committee to
set the agenda. But somebody has to set the agenda around here. We have
been debating other issues of almost total irrelevancy. I guess at some
point we are going to debate gay marriage. Well, that is a compelling
issue for the vast majority of people who are trying to make ends meet.
Or we will debate medical malpractice where you cannot even negotiate
what comes out of it. We can debate whether the gun manufacturers ought
to be excused from any liability. Heaven forbid we take an hour or two
and debate whether we increase the minimum wage a few dollars more than
$5.15 an hour.
I will emphasize to you again $10,700. That is what the minimum wage
provides today. I don't think anyone believes that is a condition or a
circumstance, economically, in which you can expect a family of 3 to
survive. You cannot make it, no matter how determined you are. I
believe we ought to be able to take care of this issue and do it
promptly. It would be a great piece of economic news for millions of
Americans and not just for those living in poverty. I think for
millions more who don't live in poverty and see people doing it every
day there would be a sense of gratification that we are doing something
for people. We are doing something for people who make the effort every
day not to fall back into dependency, but to provide an opportunity for
their families, to stay independent, become self-sufficient, and raise
a family. I have often said that the best social program ever
envisioned was a decent paying job. The second thing you and I ask a
person we meet for the first time after their name is: What do you do?
Everybody I have ever met wants to take pride in what they do. By
giving people a livable wage, we allow them to be able to say to their
children and families and neighbors: I do something. I have value. I
have worth.
Providing an additional $3,800 over 2 or 3 years is not asking too
much. I would hope we could adopt the Boxer-Kennedy amendment.
Mr. President, I yield the floor.
The PRESIDING OFFICER. Under the previous order, the Senator from
Texas is recognized.
Mr. CORNYN. Mr. President, I rise to make a few comments about what I
believe to be a better way than we have heard today, which has so far
been a proposal for greater Government regulation and intervention,
more of a straitjacket on those who create jobs and create those
livable wages about which the Senator from Connecticut has spoken.
I also want to say a few words in response to the breathless negative
comments we have heard in recent weeks about our economy and about job
creation in this country, and in the process the attacks that are made
repeatedly on this floor and elsewhere against President Bush.
Of course, in every election year, we all understand there will be a
rise in political sniping, but no one should ever cross the line and
mislead the American people about the fundamental strength of our
economy or champion this negative view just because they view it to be
in their own political self-interest to undermine public confidence in
the economy.
Sadly, it seems there are some interested in playing on fear and
anxiety. Some who talk about job loss and unemployment provoke, rather
than actually working, as we have the opportunity to do on this floor,
to actually fix some of the problems and some of the conditions that
would give rise to job creation and more job security in this country.
The truth is we ought to be able to agree on the facts. The public
policies we argue based on those facts are something else. We are going
to have policy differences. We are going to have differences of
position, and that is to be expected, and that is fine. But we should
agree on the facts.
Fact No. 1: Home ownership is at an all-time high in the United
States of America, and that is an enormously good and positive thing.
More people in this country are achieving part of the American dream.
Interest rates we know are at a historic low. Productivity is booming
which, in turn, increases the ability of employers to invest in their
business and to create even more jobs. And indeed, the gross domestic
product in this country is growing by leaps and bounds.
One fact we should and I think we can agree on is the unemployment
rate is standing at about 5.6 percent. The interesting thing about that
is the
[[Page S3430]]
story we heard in 1996 from the distinguished minority leader from
South Dakota, back at a time when we had a 5.6 percent unemployment
rate. Senator Daschle said:
The economy is doing extraordinarily well. . . . We have
the lowest rate of inflation and unemployment we've had in 27
years.
What was the unemployment rate then, and what is the unemployment
rate now? It is identical.
Today I read the comments of the junior Senator from New York who
said with a 5.6 percent unemployment rate, it is obvious the economy is
not creating any jobs. But indeed it was another Clinton back in 1996
who said:
I was gratified to hear our partners praise the strength of
our economy . . . Lower interest rates have helped us slash
unemployment--
To what? That is right, to 5.6 percent.
It seems for many of our colleagues on the other side of the aisle, a
5.6 percent unemployment rate under a President named Bush is a
travesty, but a 5.6 percent employment rate under a President named
Clinton is just fine and dandy.
We have more than 138 million Americans working today, a figure we
should be very proud of, the highest in our Nation's history. But you
would not know that from listening to those who try to talk down the
economy.
Something we can all agree on, I am sure, is any person out of work
who wants to work is one person too many. Indeed, I would hope the one
thing we would all be able to agree on is we ought to pursue policies
which encourage full employment and we ought to provide everybody in
this country who wants a job the ability to provide for themselves and
their families.
Sometimes you get the idea our colleagues on the other side of the
aisle really want to have it both ways. They want to have low
unemployment, which is what we all want, but they also want to oppose
policies which are designed to reduce unemployment and to encourage
full employment. For example, I read this morning the reaction of some
in this body to the comments made by Treasury Secretary John Snow who
pointed out that outsourcing, a subject of frequent commentary in this
body, is an important aspect and, indeed, an inevitable aspect of free
trade that ultimately produces jobs in this economy.
The Senator from Massachusetts, who happens to be a candidate for
President of the United States, said he wants to crack down on
``Benedict Arnold CEOs and corporations'' who engage in outsourcing as
a way to maintain their competitiveness in this global economy. As the
junior Senator from New York said, when it comes to outsourcing:
I really don't know what reality the Bush administration is
living in . . . [outsourcing] isn't good for America.
I suggest those who say outsourcing is something that we actually
have the capacity to stop or they think is bad to job creation in
global competitiveness sit down and have a conversation with Robert
Reich, President Clinton's former Secretary of Labor, who claimed in a
Washington Post op-ed on November 2, 2003, that ``High-Tech Jobs Are
Going Abroad, But That's Okay.''
Getting a meeting with Professor Reich should be convenient, as Mr.
Reich is candidate Kerry's top labor adviser and a member of his
steering committee.
I think Mr. Snow, the Treasury Secretary, knows an awful lot about
economics, but I also agree that so does Mr. Reich. They both agree
outsourcing is an inevitable result of free trade that ultimately
benefits America and America's competitiveness in the world economy.
As Mr. Reich wrote:
It makes no sense for us to try to block efforts by
American companies to outsource.
Just this month, Mr. Reich was interviewed in the Pittsburgh Post-
Gazette and asked: What do you think about the move in Congress to bar
Federal contracts from being outsourced to other lower cost countries?
Mr. Reich's response:
A silly political ploy.
Yet even as outsourcing continues to be a subject of discussion and
even as some of my colleagues in this body throw it out as something
that is bad and hurtful to America and America's competitiveness, we
all seem to have forgotten it also goes the other way. Indeed, my State
of Texas is one of the leading beneficiaries of what I will call
insourcing; that is, foreign investments in America.
According to the Texas Department of Economic Development, Texas has
more than $110 billion in foreign investment, direct investment in our
State, and that is approximately $5,000 in foreign investment for every
Texan--$5,000 for each of 22 million Texans in direct foreign
investment because of free trade.
There are 430,000 jobs in Texas thanks to outsourcing by these
foreign corporations. People who would otherwise be out of work if we
did as some of my colleagues on the other side of the aisle suggested.
Members who are appealing to the anxieties and fears of the American
people rather than giving them the information they need to understand
and that we all need to embrace in terms of maintaining our global
competitiveness.
I ask my colleagues to tell me why creating jobs for the hard-working
citizens of my State by encouraging this foreign investment in our
country is a bad idea. If we are to cave in to fear mongering by those
who want to erect a protectionist wall around our country, do my
colleagues think other countries might choose to retaliate against the
United States? You bet.
This is a two-way street, and there is a natural flux. New jobs are
created and old jobs fade away. That is what being part of a market
economy is all about. In the end, the net increase is a good one.
This week in my State, a study found we will lose 3,000 technology
jobs over the next 5 years due to outsourcing. That is the bad news.
The good news is we are going to gain 24,000 jobs over the same period.
I reassure my colleague from New York, according to this report, her
State will have a net gain of more than 18,000 jobs over the same
period thanks to outsourcing, which she has said is a bad idea and out
of touch with reality.
When companies that provide employment save money and maintain their
competitiveness in a global economy because of outsourcing, they can
afford to hire more U.S. employees. As a matter of fact, if we were
somehow trying to find a way to prohibit this phenomenon, the only
choice some of these employers would have would be to pack up their
American company and simply move it overseas. What good would that do?
That would obviously cause more harm than good.
We are dealing with a simple economic truth, and one that far too
many ignore or choose to distort for partisan political purposes in
this election year. We have to recognize that in the 21st century, we
are competing in a true global economy, and our job in Government ought
to be to try to find ways to enhance America's competitiveness in the
economy, not the other way around. That is why I believe education, job
training, and the President's community college initiative he talked
about during his State of the Union address are so important, steps
also endorsed by Chairman Alan Greenspan. These programs, which I have
seen in operation in communities across my State, from Amarillo to
Houston to Austin, have created opportunities for young men and women
to train and retrain, to hold better paying jobs in an ever-changing
economy. I have seen the positive results of these partnerships between
businesses and community colleges when it comes to training and
retraining the workforce for these good, high-paying jobs.
High taxes, overregulation, and rising health care costs, in an
environment that encourages people to sue first and ask questions
later, are damaging our global competitiveness. Those on the other side
who seem to persistently favor higher taxes and more regulation are at
the same time complaining about America's inability to compete and to
keep these jobs in America. Those who still honestly believe we can
sue, tax, and regulate our way to economic growth and prosperity are
just flat wrong.
In this body, we have had many opportunities to address some of these
competitiveness issues. We had the opportunity earlier this year to
pass class action reform and medical liability reform which would lower
health care costs so more employers could provide health care coverage
at a more reasonable cost to more employees. We have
[[Page S3431]]
had a chance to reform our broken asbestos liability system. Yet, there
are those who consistently vote against these reforms that would make
America more competitive in this global economy and would increase the
opportunity to create jobs. Members who now are prescribing the wrong
medicine for what ails the American economy. This is even at a time
when our economy is roaring back, thanks to the leadership of our
President and the actions of this Congress in reducing the tax burden
on hard-working Americans.
I hope our colleagues on the other side of the aisle, when they talk
about their desire to increase competitiveness of American job creators
in this global economy, will join us in reconsidering the position they
have taken so far in opposing the JOBS bill, medical liability reform,
a rational national energy policy, class action reform, asbestos
litigation reform, and many other measures that would enhance America's
competitiveness in this global economy. They need to allow us to vote.
I believe a bipartisan majority stands ready to pass many of these
reforms which would create more jobs and improve the economy. Time and
time again, when we have had the chance to fix these problems, when we
have had a chance to address these issues, there are those on the other
side whose only answer is, no, no vote, no closing off of debate, no
improving of the competitiveness of America in the global economy.
In closing, I want to reinforce what I have tried to say throughout.
There is a lot of good news I do not think is breaking through the
clutter on the 24-hour cable news cycle in this highly politicized
election year. There are those who want to bad-mouth the economy,
increase the anxiety of people who are working, and compound the misery
of those who are out of work by saying there is no hope; America cannot
compete; the only way we can protect American workers is to build a
wall around our country and to stop free markets.
I think that is absolutely the wrong medicine for what ails this
country. What we need is to be true to our principles. Americans have
always and will always be able to compete given a level playing field.
This is not a time for us to lose confidence in America's ability to
compete and to create jobs in a way that has made us the envy of the
world. This is not the time to tell the American people that America
cannot compete and our only hope is to retreat into our shell and to
build the walls of protectionism around our country.
Indeed, we have been preaching to the entire free world, including
the new democracies that have just joined NATO and will soon join the
European Union, that free markets and free trade are the answer.
America must stick by that answer because it is the last best hope for
improved quality of life and freedom for people all across this planet.
I yield the floor.
The PRESIDING OFFICER (Mr. Smith). The Senator from Wisconsin.
The 9/11 Commission
Mr. FEINGOLD. Mr. President, yesterday the 9/11 Commission heard the
public testimony of current and former Cabinet and National Security
Council officials. It is critically important to make certain the
historical record is accurate and complete and to establish all of the
facts surrounding what the various elements of the U.S. Government knew
about the terrorist threat before September 11, 2001.
The most important task before us, our first priority, should be to
stop future attacks, to crush the terrorist organizations that are
trying to kill us and trying to kill our children.
Over 2\1/2\ years have passed since that horrible day. We are
dutybound to get our post-September 11 response right, and I think
getting it right means keeping this fight focused on the terrorist
networks that attacked this Nation. Putting it more simply, it means
keeping our eye on the ball. We need to take this fight to the
terrorists. That is why every Member of this body voted to go after
those responsible for attacking this country on September 11, 2001. But
the further we get from September 11, I am concerned that we are not
doing enough to root out the terrorists in Afghanistan.
Recently, we have all heard a lot about the spring offensive in the
border region between Afghanistan and Pakistan. I support the offensive
and I remain deeply grateful for the service of our men and women in
uniform. But why is this offensive happening this spring? We are
talking about forces that attacked this country in 2001. This offensive
should have taken place last spring. In fact, by the end of last
spring, Rand Beers, who had served as counterterrorism adviser to this
administration in the National Security Council, had resigned his job
and was voicing his concerns about the insufficient effort in
Afghanistan. ``Terrorists move around the country with ease. We don't
even know what is going on,'' he told a reporter.
The director of the Center on International Cooperation at New York
University just found that ``the low level of funding for the
reconstruction of Afghanistan remains astonishing, given the importance
with which major nations claim to regard it and the consequences of the
previous neglect of that country.''
When it comes to terrorists in Afghanistan, we need to finish the job
and finish them off. Then we need to make sure that we support the
Afghan people and help them create a climate in their country that will
make it impossible for terrorist forces to survive there in the future.
Make no mistake: The al-Qaida network is not confined only to
Afghanistan. It would be misleading and dangerous to suggest that
eliminating a handful of al-Qaida leaders eliminates the threat from
the network. None of these al-Qaida forces should ever know a moment's
peace. We must wage a relentless campaign against al-Qaida around the
world, and we will not be done until they have nowhere left to hide.
I joined my colleagues in authorizing the use of force against those
responsible for the September 11 attacks. When I cast that vote, I
expected a serious campaign targeting the terrorists who attacked this
country. I am pretty confident most Americans expected the same thing.
What we did not expect was that elements of that effort would be left
to tread water so that we could focus resources on the war in Iraq
instead.
Instead of keeping our eye on the ball, instead of focusing on
winning the fight we are in, this administration launched into a
tremendously costly initiative in Iraq. Of course, they have used a
whole lot of different arguments to justify this war, and a lot of
arguments trying to link the war to the fight against terrorism, even
though on January 8 of this year, Secretary of State Colin Powell
stated he had not seen any ``smoking gun or concrete evidence'' of ties
between former Iraqi leader Saddam Hussein and al-Qaida. Even though
the report The Network of Terrorism, published by the State Department
in the wake of 9/11, which begins with the words of the President of
the United States, listed 45 countries where al-Qaida or affiliated
groups were known to have operated--and guess what, Iraq was not one of
the 45. Iraq was not on the list in the report. Even though Richard
Clarke, the man whom the Bush administration chose to head up
counterterrorism policy within the National Security Council, told the
President and members of his Cabinet that Iraq had nothing to do with
9/11.
By the summer of 2002, national security debates weren't about the
fight against terrorism anymore; they were all about the invasion of
Iraq. We got sidetracked. We are facing one of the most serious threats
to our national security in the history of this country, and I dare
anyone to say that is an exaggeration, but what did we do? We took our
eye off the ball.
As I said before, even as our brave troops were taking Baghdad, 10
men allegedly involved in the bombing of the USS Cole--a terrorist
attack that killed 17 American sailors--escaped from a prison in Yemen.
That news was disturbing, and I wanted answers, answers about what we
knew about their escape, the circumstances of their detention and the
security of the facility, about the implications of this lapse. The
answers were of a deeply troubling ``no one is minding the store''
variety. I can assure you I tried again and again to get some
information about this.
This month, reports indicate these escapees have finally been
recaptured.
[[Page S3432]]
Of course this is good news. But we must take steps to avoid this kind
of scenario in the future. We must give these issues the focus they
deserve and devote resources and support to monitoring these situations
closely and acting to protect our interests.
As you know, by October 2003, even Secretary of Defense Rumsfeld
indicated in a memo that, despite over 2 years having passed since
September 11, ``relatively little effort'' had gone into developing ``a
long range plan'' to win the fight against terrorism. In the memo of
the Secretary of Defense, he pointed out that there is no consensus
within the national security community in the U.S. about how to even
measure success in this fight. No thoughtful and useful way to tell
where we stand? So not only have we lost our focus in this fight, we
don't even have a way to measure our lack of focus. This is our most
important national security priority. Something is not right with this
picture.
Iraq is a mammoth undertaking. We only have so many national security
resources, and all the resources we used to fight the war with Iraq--
the military resources, the intelligence resources, the money, effort,
and the long hours--all of them came from what is surely a finite
supply. The fight against the terrorists who attacked this country had
to be addressed with what was left, wedged into the margins.
Jeffrey Record, visiting professor at the Army War College, published
a paper that very clearly acknowledged this problem. His analysis
indicated that the U.S. fight against terrorism has been
``strategically unfocused.'' He writes as follows:
In the wake of the September 11, 2001, al-Qaida terrorist
attacks on the United States, the U.S. Government declared a
global war on terrorism. The nature and parameters of that
war, however, remain frustratingly unclear. The
administration has postulated a multiplicity of enemies,
including rogue states; weapons of mass destruction
proliferators; terrorist organizations of global, regional,
and national scope; and terrorism itself. It also seems to
have conflated them into a monolithic threat, and in so doing
has subordinated strategic clarity to the moral clarity it
strives for in foreign policy and may have set the United
States on a course of open-ended and gratuitous conflict with
states and nonstate entities that posed no serious threat to
the United States. Of particular concern has been the
conflation of al-Qaida and Saddam Hussein's Iraq as a single,
undifferentiated terrorist threat.
He continues:
This was a strategic error of the first order because it
ignored critical differences between the two in character,
threat level, and susceptibility to U.S. deterrence and
military action. The result has been an unnecessary
preventive war of choice against a deterred Iraq that has
created a new front in the Middle East for Islamic terrorism
and diverted attention and resources away from securing the
American homeland against further assault by an undeterrable
al-Qaida. The war against Iraq was not integral to the
[Global War on Terrorism], but rather a detour from it.
Some have argued that Iraq itself is the central front in the fight
against terrorism, despite the absence of significant evidence linking
the Saddam Hussein regime to terrorists who attacked this country. They
point to the indisputable fact that in post-Saddam Iraq, terrorists are
operating in Iraq and they are targeting our brave American soldiers as
well as innocent American and Iraqi and other civilians. This is a true
statement. It is also a painful reality. But it is not a strategy for
defeating al-Qaida. Just because there are attacks in Iraq does not
mean there will not be attacks elsewhere. The terrorists working for
and with the al-Qaida network will not all be attracted to Iraq. We
can't bring them all in there and defeat them there.
Right now, terror cells are plotting and planning and operating in
many other places around the world--in the Middle East, in east Africa,
in southeast Asia, in northern Africa, in central Asia. Pretending that
a ``roach motel'' strategy against terrorist networks is a viable way
to protect our national security would be almost laughable if the
consequences were not so deadly serious.
There are heartbreaking human costs to the families of killed and
injured troops, and there are astronomical economic costs--costs that
America is writing bad checks to cover--as well. And there is the cost
we can never know or measure, the cost of missed opportunities to make
progress in the fight against al-Qaida and associated terrorist
networks.
I am glad the brutal dictator Saddam Hussein is gone. I am glad the
Iraqi people have a chance at a better life. I recognize it is not in
our national interest to let Iraq dissolve into chaotic disorder, but
my first priority is my concern for the American people, and I doubt
our effort in Iraq has helped to eliminate the terrorist threat we face
from the forces that actually attacked us on September 11.
I also fear that the way the administration has approached Iraq--the
blurring of facts, the conflating of villains, the shifting
justifications for war--may undermine our capacity to lead the global
fight against terrorism. As David Kay, the former chief U.S. weapons
inspector in Iraq said on March 22, ``We are in grave danger of having
destroyed our credibility internationally and domestically with regard
to warning about future events.''
International credibility matters. It is part and parcel of our
country's power--our power to inspire, to motivate, to persuade. Our
enemies have a global network. We must have a global response. That
means close cooperation with countries around the world. It means
sharing intelligence, and coordinating with other countries to clamp
down on terrorist financing, squeezing terrorist networks out of the
shadows in which they operate, leaving them vulnerable and exposed. But
since September 11, we have seen a loss of this critical American
power. In fact, today, a majority of people living in Jordan, Morocco,
Pakistan and Turkey say they believe the U.S. is conducting its
campaign against terror to dominate others and control the world's oil.
Somehow the fight against terrorism, which was and should still be a
rallying point for global unity and resolve, has become divisive.
We know that the military plays a critical role in fighting
terrorism. But some have twisted the importance of the military's role
into an argument that suggests that fighting terrorism is about nothing
but military force. I believe at best this is delusional and wildly
dangerous at worst. Military force absolutely must be part of our
response, and all of us in the Senate voted to give the President the
authority to use it. And the vast resources available to DOD, which
unfortunately do not always trickle down to the level of our men and
women in the field, makes it tempting to turn to our Armed Forces for
solutions again and again. But we all know this is true: The answers do
not lie with the military alone--and it is not fair to our brave men
and women in uniform to make them bear the brunt of conducting the
fight against terrorism all by themselves. We must also take a hard
look at all the other forms of power that America has at its disposal,
strengthen those tools, and apply them wisely.
Consider what a quick glance at the international section of daily
newspapers tells us--uranium seizures at insecure borders, money
laundering through the diamond trade that has been linked to
terrorist financing, and pirates boarding chemical tankers, steering
them for a while, and then disappearing.
As the ranking member of the Subcommittee on African Affairs, I know
that we do not have the intelligence resources that we should around
the world. I know that we do not really have any policy at all to deal
with Somalia, a failed state in which terrorists have operated and
found sanctuary. I know that there is a great deal of work to be done
to help countries in which we know terrorists have operated. We need to
improve the basic capacities of border patrols who could stop wanted
individuals, and customs agents who could help stop weapons
proliferation and auditors who could freeze terrorist assets. And we
can do more to root out the corruption that undermines these safeguards
at every turn.
In the wake of the terrible bombings in Madrid, my heart goes out to
the people of Spain, and my judgment tells me that too many people are
misinterpreting the subsequent Spanish election. I don't believe that
the Spanish people will let their political choices be dictated to them
by terrorists. The real lesson, the most important lesson that we can
draw from recent events in Spain is this: A democracy cannot be unified
and mobilized to fight terrorism when citizens believe that their
[[Page S3433]]
government is willing to mislead them about the threats they face, and
when they believe that their government does not have its eye on the
ball.
Americans know that the battle against terrorism is not a matter of
choice, and they know that the battle is worth fighting fiercely. We
will not run scared, and we will not be frightened into abandoning our
most cherished national values or liberties. So let us move forward to
harness the strength of this great country, to learn from our mistakes,
to use all of the tools at our disposal, and to stay focused on the
most important national security priority before us--fighting and
defeating the forces that have attacked our country.
I yield the floor.
The PRESIDING OFFICER. The Senator from Nevada.
Mr. REID. Mr. President, I extend my appreciation to my friend from
Wisconsin for his statement. When the senior Senator from Wisconsin
comes to the floor, he is prepared. I am always so impressed with the
substance of his statements. The Senator and I have traveled to parts
of the world. He has a great concern about what is going on in the
world. He is able to express himself very well. I acknowledge his
statement today and extend for the second time this afternoon my
appreciation for his statement.
Mr. President, there has been a lot of talk on the Senate floor
today, but I am very disappointed it has only been talk. We are not
legislating. For this very important bill on the floor, we have had one
vote. There are many people in the Senate who have more experience than
I as a national legislator, but I have been here 22 years. I know how
the Senate operates. I know how it used to operate.
The way it operates today is not pleasant, I am sorry to say. There
is no reason we cannot be real legislators, take these amendments and
work through them. I am convinced this is not the right way to
legislate.
I have the greatest respect for the majority leader. He is a fine
man. He is a humanitarian, as shown by his chosen profession. He is a
real medical expert. He is an organ transplant specialist. And he has,
in his capacity as a Senator, gone to countries where there is a
shortage of doctors, and he does work that he is overqualified for but
that is badly needed, doing hernias and other types of surgery.
So I do not say this in any way to take away from the dignity of his
job. I do not want, in any way, to demean him personally. But I am just
saying, the Senate is not being handled right. I do not know if it is
because of the advice he is getting from his other Senators or what the
reason is. Maybe he is getting advice from the White House. I do not
know. But we should be moving through these pieces of legislation.
For example, the FSC bill, this very important tax bill, Senator
Harkin offered an amendment on overtime. Why did he offer this
amendment on overtime? Because we believe--and we have substantive
facts to back us up--that 8 million people, because of actions taken by
this administration, will no longer be entitled to overtime pay.
Who are these people? They are firemen; they are police officers;
they are nurses. If someone disagrees with us, let them come and oppose
the Harkin amendment in the light of day and say I don't like the
Harkin amendment for this reason or this reason or this reason. And
then let's vote on it.
Senator Harkin has said, on many occasions, he will take a very short
time agreement on the amendment. What does that mean? It means he would
take 15 minutes. The majority could have 15 minutes. Let's have a vote
on the amendment.
This amendment passed before. It passed the Senate last October. The
House instructed its conferees to do exactly what the Senate did. But
that bill was not allowed to move forward because there was an effort
made--and successfully--not to vote on that overtime amendment.
So now we move to the reauthorization of the welfare bill, TANF.
Senators Boxer and Kennedy offered an amendment dealing with minimum
wage. Certainly, on a welfare bill that is an amendment that seems to
have some bearing. We want to do what we can. I have supported the
welfare-to-work programs we have had going. But one of the things we
have to do is make sure these people moving off welfare and on to work
can earn a living.
As we have established on the Senate floor, quite clearly, minimum
wage jobs are not jobs that are set aside for kids from high school to
flip hamburgers or for old Americans who are in a state of
semiretirement and need a little extra work. No. Sixty percent of the
minimum wage jobs are held by women. And for the majority of those
women, that is the only money they get for them and their families.
We want to raise the minimum wage from $5.15 an hour. If someone
opposes, let's have a debate on whether we should raise the minimum
wage. But, no, we are not allowed to vote on that issue. There have
been some complaints that, well, there are other amendments. We will
give you a vote on that maybe, but we have to have an agreement on the
other amendments.
Why can't we legislate the way we used to? Just work our way through
these amendments and produce a tax bill and produce a welfare bill? It
might require we work a night or two. It might require we have votes on
Friday and even Monday, but I do not understand why we are in this
situation. I do not think it is good for the institution. I know it is
not good for the American public.
We are not in control of the Senate. Because of the untimely death of
Paul Wellstone, our margin dropped from 50 to 49. It would have been
50-50 had he not been untimely killed in that plane crash. Now we are
in the minority, 51-49. We understand that. We understand there will be
a day in the future when we will be in control, and we will want as
much cooperation as we can get from the minority. I hope when we are in
the majority we will be treated to the sense that the Senate is the
Senate, as it has been for more than 200 years, and we will work
through these amendments.
We have been concerned--and I am happy to see the fact that in a bill
earlier today the leader of the Budget Committee, Senator Nickles, and
the ranking member, Senator Conrad, agreed there would be a real
conference where Democrats and Republicans sit down and try to work out
differences between the bill. That is the way we need to do it.
There has been a pattern where Democrats are not even allowed into
the room at a conference. My limited amount of math shows me we are in
the minority. And when you have a conference, we are going to lose most
of those votes anyway, but we are entitled to have a discussion in
those conference committees about ideas we have. Maybe if our ideas are
good enough, we can get somebody from the majority to agree with us and
we can win on some issues in those conferences.
I can't imagine why we are not doing a better job on moving these
pieces of legislation. I see my distinguished friend, the majority
whip, my counterpart. Maybe he is here with some good news that we are
going to start moving some of this legislation. I hope that is the
case.
I want to be as constructive as I can to help work through this
legislation. But for the life of me, I cannot see why we can't vote on
overtime and on the minimum wage. It is good for the institution. It is
good for the country. We are willing to take our chances. If there are
more votes to defeat overtime and the minimum wage, that is OK. That is
the way things happen. But we think we can win both measures and move
past this on to something else that is related.
I have heard discussions of the ranking member, Senator Baucus, who
has indicated some of the things we need to get done in the TANF bill.
I have said on the Senate floor on a number of occasions, I don't know
of two Senators, in leadership positions with committee assignments,
who get along better than the senior Senator from Iowa and the senior
Senator from Montana. They work out their differences.
I am convinced there is ground to be made up here. We can still do
these two bills. We want both of them passed. Forty-nine Democrats want
the welfare bill to pass. We also want the tax bill we were on last
week to pass. We want these bills to pass, but we believe there are
some institutional issues that are important, and the American people
are entitled to votes. I am not going to be drawing any overtime, but
there are
[[Page S3434]]
8 million people who are entitled to a vote on overtime, whether the
administration should be able to take that away from them. There are
tens of millions of people who are entitled to a minimum wage increase.
We need to do that.
Some States have gone ahead and said Congress is acting too slowly,
and they have a minimum wage above ours right now. There is going to be
a ballot initiative in the State of Nevada this year--they have to get
some signatures, but I am sure they will get enough--to raise the
minimum wage in Nevada to $6.15 an hour, a dollar more than what we do.
The people of the State of Nevada will vote on that in November. I
don't think they should have to vote on it. We should be doing our job.
But we are not able to do our job because we are being stopped from
doing this because we are in the minority.
We are going to continue exercising the rights we have. The Senate
allows us to offer amendments. People can say: Why do you offer
amendments that have no bearing on what we are doing? I think everyone
would acknowledge that this overtime pay issue does have a bearing on
what we do. It would be without any foundation in logic to say we don't
have a right on a welfare bill to offer a minimum wage amendment. We
should be able to do so.
I repeat--I want the record spread--we are not trying to stall. We
believe passage of these two measures is extremely important. We want
them to pass. We have confidence in the two managers of the bill. But
the leadership of the majority has to allow us to move past where we
are now because we are in a deadlock, and that is too bad.
The PRESIDING OFFICER. The Senator from Kentucky.
Mr. McCONNELL. Mr. President, I listened carefully to my good friend
from Nevada who is my counterpart on the Democratic side. I recall he
said, just a few moments ago--I think this is a direct quote: ``Why
can't we legislate the way we used to?''
I say to my good friend from Nevada, I couldn't agree more. Why can't
we legislate the way we used to? I have been here a while. But you
wouldn't have had to be here all that long to remember how we used to
legislate. Just as recently as a Congress ago, we didn't filibuster
judges on the floor of the Senate. In fact, we hadn't done that for a
couple hundred years.
Just as recently as the previous Congress, we didn't prevent the
legislative process from going forward by prohibiting the appointment
of conferees, but adhered to the normal legislative process, so that
differences between legislation in the House and Senate can be
reconciled and we can move forward.
I think we can stipulate the minority has always had a lot of power
in the Senate, but never before has the minority insisted on writing
legislation for the majority--not just in the Senate but in the House
as well. That is the practical effect of preventing a conference. It is
the minority of Senators saying: We won't allow the legislative process
to go forward unless it is just the way we want it. Even though we are
a minority in one of the two bodies, we are going to dictate to the
other body the content.
When my friend from Nevada criticizes the majority leader for the way
he is ``handling the Senate,'' he is pointing the finger in the wrong
direction. I say to my friends on the other side: You have met the
enemy, and it is you.
I think I can safely speak for the majority when I say that we are
perfectly happy to have votes on the Democratic Party outbasket items.
But, of course, one of the privileges each Member of the Senate has is
to prevent a time certain for a vote. And that is used around here
frequently in order to make sure something else happens.
The something else the majority would like to have happen--and
certainly the majority leader would like to have happen--is the chance
of finishing a piece of legislation, getting it to conference,
resolving the differences, and sending it on down to the President for
signature. That is the way we used to legislate, I say to the Senator
from Nevada, who was suggesting longingly that we ought to go back to
the way we used to legislate, as he put it. That is the way we used to
legislate.
Our position has been, as we have discussed this back and forth off
the floor, let's see a limitation on amendments that allows the
minority the opportunity to have their vote, allows the majority an
opportunity to have a similar vote on a similar subject, to work our
way through the legislative process, and then a guarantee at the end
that there will be a conference allowed so the legislation we have
spent time on has some chance of becoming law.
I can say to my friends on the other side, there is no chance--zero
chance--that the majority in the House of Representatives is going to
let the minority in the Senate dictate to them the final content of
legislation that leaves the Senate. That is simply not going to happen.
I agree with my good friend from Nevada: Let's get back to
legislating the way we used to. Legislating the way we used to means a
limitation on amendments, amendments that are relevant certainly to the
underlying bill but not just those, even those that are not relevant,
with opportunities for the other side to offer their substitute ideas,
and then a chance to get to the end of the process, to finally pass the
bill, to get to conference, and to move along.
That is what the majority leader is looking for. We are going to
continue our discussions, both on and off the floor, in the hopes that
we can reach agreements to move forward on this important piece of
legislation.
The Welfare Reform Act of 1996 was a conspicuous success story, a
bipartisan success story passed by a Republican Congress, signed by a
Democratic President, something all of us are proud of. It should be
reauthorized. And the JOBS bill that had to be shelved last week
because of an excessive number of amendments is something we know is
extremely important to accomplish.
Levies have been put in place, a European tax on American
manufacturers, at 5 percent beginning March 1. Tomorrow, it goes up to
6 percent, and then another percent each month until it is up to 17
percent--European taxes on American manufacturers, killing jobs here at
home when we are told that jobs is an important issue.
So we need to do business. We need to do welfare reform. We need to
get back, as my good friend from Nevada said, to legislating the way we
used to. I hope we can reach that point very shortly.
Tribute to Steven J. Law
Mr. McCONNELL. Mr. President, I rise to pay tribute to a good friend,
Steven J. Law, who is the Deputy Secretary of the U.S. Department of
Labor.
Deputy Secretary Law was nominated by the President and was confirmed
by the Senate on December 9, 2003. Prior to holding his current
position, he served the President and Secretary Elaine L. Chao as Chief
of Staff at the Department. In that position, Steven has played a
fundamental role in crafting major administration initiatives, such as
the post 9/11 economic recovery plan, retirement security, and
regulatory reform. Steven is valued as an asset to the Department,
greatly admired by his peers, and respected throughout the Washington
community.
Steven began his career in this city after graduating from the
University of California at Davis. From there, he went on to receive
his juris doctorate from Columbia University School of Law, where he
was named the Harlan Fiske Stone Scholar and graduated cum laude.
It was after those academic pursuits that our lives happily crossed
when he began in my office as a legislative assistant. Displaying the
hard work and talent he is well known for, Steven quickly advanced to
Chief of Staff shortly after successfully managing my 1990 reelection
campaign.
Steven didn't just make a big impression on me. He was recognized by
Roll Call as one of the 50 most influential staffers on the Hill.
Eventually, he left my office to become executive director of the
National Republican Senatorial Committee during my chairmanship and
helped secure the Republican majority through both cycles. Over 4
years, and through 2 tough election cycles, he has very skillful and
professionally managed that operation in an extraordinarily able
fashion.
I have had the privilege of working with Steven for the past 15
years. I
[[Page S3435]]
have had the honor of calling him my friend and confidant during that
time as well.
Mr. President, it is easy to see why President Bush chose to nominate
Steven to this high post. It is easy to see why my Elaine Chao, the
Secretary of Labor, also exercised good judgment in giving this
talented man this opportunity. I applaud his confirmation and wish both
Steven and his marvelous wife, Elizabeth, and their two beautiful
children, Charlotte and John James, continued success in their future
endeavors. Elaine and I have been blessed to be a part of their lives
for the last 15 years. This is truly a remarkable individual and a
magnificent public servant. I wish him well not only in his new job as
Deputy Secretary of Labor, but in all of the endeavors he may undertake
in the coming years.
I yield the floor.
The PRESIDING OFFICER. The Senator from Nevada is recognized.
Mr. REID. Mr. President, we have an opportunity to, based on the
statement of the Senator from Kentucky, move some of this legislation.
But I cannot understand why, when we finish running one race, we have
to immediately go to the other race. We need a little time to rest.
What I am saying about that is that we have on many occasions passed
bills in the Senate and accomplished the desire of the people working
on that legislation by working things out with the House. We have done
that without using conference. We have done this simply in negotiating
the differences between the House and Senate. We have done it in the
108th Congress; we did it 21 times then. In the 107th Congress, we did
it 51 times.
I think before the end of this year, if we can get a few things done
on the floor, instead of 21 bills, we can get it up to maybe 40. We
have done it on very important things, such as AIDS assistance, TANF
extension, military family tax relief, national flood insurance, Syria
accountability, veterans benefits, the Defense Production Act, which
are very important pieces of legislation. There have been some things
we have done with a conference. As some will recall, last year we had a
difficult situation with the fair credit reporting. But Senator Shelby
and Senator Sarbanes decided that the best thing they could do would be
to set a standard and the two leaders said, yes, we are willing to go
to conference, we think we can do a good job. They did that. It became
law.
We are one step ahead of where we should be. We want legislation
passed in the Senate. When that is done, there are many ways to resolve
differences with the House. We can do it in conference and there are
occasions when we need to do that. Some may ask why we have balked at
conferences. Very simply, for example, the overtime measure which
passed here went to conference, and Democrats weren't even invited into
the room where the conference was held. A bill came back here and, of
course, overtime was stripped from it, and we had a bill that did not
go through the conference process. They did not follow the Shelby-
Sarbanes model.
We are willing to work to get legislation passed. We have said we
want to do that, we want to work our way through these amendments. But
to come here and say we will do it if you only have 4 amendments, the
best way to get these bills passed is to work on them. These bills
don't come magically. We have 49 of us here and 51 on the other side.
We all have ideas as to how the legislation could be improved.
Sometimes our ideas are good and sometimes they are bad. But individual
Senators--there are two Senators from every State with the ability to
get elected. We have wide interests we represent in our States. We have
an obligation to allow them to offer amendments and move through this
legislation.
I am not an expert in parliamentary procedure in the Senate. I don't
think many people can claim that. I do understand a lot of the
procedures in the Senate, and I understand that the best way to do
legislation is to work through it. If you have an amendment you don't
agree with, speak against it and vote against it. But don't stop others
from having the opportunity to vote.
So, again, we are being told today, yes, we will let you have some
amendments, or we will let you have more than some, but if we do that,
you have to agree to go to conference. We are not going to do that. We
are going to do everything we can to get a bill passed.
As I have indicated, Mr. President, in the 108th Congress, 21 times
we have been able to get legislation passed and sent to the President
without a conference. We have negotiated our differences in the
language between the House and Senate. We can continue to do that. We
did it 51 times in 107th Congress. So as I said before, and I repeat,
there is no reason we should not legislate the way we always have in
days past: You introduce legislation, it goes to committee, comes to
the floor, we debate it, offer amendments, and vote on it. When that is
done, you figure out how you are going to work your way through the
differences with the House.
We want to pass the tax bill that was in effect on the Senate floor
last week. I repeat, we want to pass this welfare bill. The only way we
can show that is by agreeing to work through these amendments. There is
not a single Senator who wants to filibuster this bill. We are not
going to be stopped from offering these amendments, and we will hold
together as a body and not allow cloture to be invoked tomorrow. It is
not fair.
The PRESIDING OFFICER. The Senator from Oklahoma is recognized first.
Mr. INHOFE. Mr. President, I ask unanimous consent that I be
recognized for up to 15 minutes as in morning business.
The PRESIDING OFFICER. Without objection, it is so ordered.
High Gasoline Prices
Mr. INHOFE. Mr. President, I rise today as consumers in America--
businesses and farmers and families--are facing gasoline prices at a
record high. Prices for natural gas, which is used to heat our homes
and workplaces, have gone through the roof.
In fact, I chair the Environment and Public Works Committee, and we
had a hearing this week on the crisis we are facing, and that is our
farmers are having to pay twice as much as they did 6 months ago
because of the skyrocketing costs of natural gas. And all of this is
due to the fact we have a lot of the far-left environmental groups
trying to keep us from being able to produce more oil and gas, and it
is a crisis. It is a crisis, as we pointed out in this committee
hearing. Unfortunately, due to obstructionist tactics led by the
radical environmental groups, bipartisan energy policy legislation
continues to just be out of grasp of passage in the Congress.
Yesterday, those who are against domestic energy production and in
favor of higher costing energy prices plaguing us today were given a
boost by the presumptive Democrat for President who said in a speech in
San Diego, CA:
We need a new direction on energy policy.
And went on to lay blame for the high cost of gas on the Bush
administration, while attempting to put forth an energy plan of his
own. Rather than advance a policy actually related to our Nation's
energy needs and supplies, the Senator consistently suggested policies
that would increase cost to consumers, that would consistently increase
cost to businesses, that would consistently undermine our economy and
force high-paying manufacturing jobs overseas. We have seen this taking
place. It is taking place today. I heard our very eloquent junior
Senator from Ohio talk about the number of jobs they have lost in the
State of Ohio just for this reason.
His statements about the Bush administration are incorrect. One of
the first proposals the Bush administration made was a comprehensive
energy plan in 2001 that would increase domestic energy supplies and
make America less dependent on foreign sources of energy.
Congress took up legislation and incorporated many aspects of the
President's plan, and I note that the Senator who finds it easier to
criticize than do was nowhere to be found when the bipartisan Energy
bill, H.R. 6, was debated and passed by the Senate by a vote of 84 to
14 on July 13, 2003.
It intrigues me that this issue is important enough for the Member to
take time to discuss it out of his busy campaign schedule, but not
important enough for him to be present and vote on the bipartisan
legislation that was brought before this body. In fact, to my
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recollection, the junior Senator from Massachusetts, prior to
yesterday, never once proposed comprehensive energy legislation during
his 19 years in the Senate.
What we heard from San Diego yesterday was really less of an energy
policy for the Nation and more of a checklist of how to increase energy
costs to consumers. I am not surprised at that fact since it is clear
from his voting record over the last many Congresses that affordable
domestically produced energy was far from a priority of the Senator.
His claim yesterday to aggressively develop domestic oil and gas
supplies does not seem genuine to me as he has no specific plan to do
so and has spent a lot of his time stopping us and this country from
being able to explore such areas as ANWR and offshore that would allow
us to be energy independent.
Let me be perfectly fair. This goes back a number of years. I can
remember even back during the Reagan administration making talks about
the fact at that time we were 35 percent dependent on foreign countries
for our ability to fight a war. And yet now it is closer to 60 percent.
So there we are only 2,000 acres of ANWR's Coastal Plain, about the
size of Dulles Airport, for oil exploration and development; 2,000
acres that could provide the United States with enough oil to replace
imports from Saudi Arabia for the next 30 years.
But actually, as the junior Senator from Massachusetts proposes to
solve the energy crisis, for one he is going against his own advice and
now calling for President Bush to open the Strategic Petroleum Reserve,
a move that would threaten our national security without any benefit.
We know from recent history that releasing oil from the Strategic
Petroleum Reserve would have no impact on gasoline prices. On September
22, 2000, former President Clinton released 30 million barrels of oil
from our strategic stockpiles. The effect, according to Energy
Information Administration, was 1 penny savings per gallon of gasoline.
So that does not work. It makes good conversation, it sounds good, but
we know it does not work, and he knows it, too.
During that time, the junior Senator from Massachusetts stated
himself that a release is not relevant. It would take months for the
oil to get to the market, he said. Now he has flip-flopped and it is
the cornerstone of an energy plan more about politics than meeting the
real needs for American families and businesses.
Even experts such as the Federal Reserve Chairman Alan Greenspan,
former Carter Energy Secretary James Schlesinger, and other top energy
officials have warned for years that the Strategic Petroleum Reserve
should not be used as a market management scheme. It is there for
national security. I think we all understand that.
Further, it is important to note while we have a Strategic Petroleum
Reserve, we do not release our strategically held resources to fit
political whims but should only do it to address a major supply
disruption, such as political instability from a source nation, which
is highly likely, and I think we understand that situation. The
relative instability of supply nations is well known. Our Strategic
Petroleum Reserve is our Nation's buffer, a safety net. The junior
Senator from Massachusetts would have us squander our Nation's
strategic reserves for his political gain, forcing our country into a
far weaker position.
The presumptive Democrat nominee's call to release oil from our
strategic reserves is also surprising to me because what he is really
calling for is to increase our domestic supplies. Experts agree that
one of the principal reasons that our Nation was able to weather the
oil embargo of the 1970s was largely because new supplies were coming
online from Prudhoe Bay, AK. Yet, as I said before, the Senator
staunchly opposes developing oil from the Alaska National Wildlife
Reserve. The policy of the junior Senator from Massachusetts seems to
be: Let us use our strategic reserves but not have any more oil to
replenish them.
The Senator is also quick to praise himself for his foreign policy
experience. Yet that experience must not have translated to the energy
sector. Oil is a global commodity; therefore, the world market must be
considered. What has happened in the global market? China's increased
demand for oil has constrained world oil supplies which have only been
exacerbated by OPEC's recent reduction restrictions.
We should also note that another key component of the Senator's plan
to address our Nation's high gasoline prices is for the administration
to get tough with or jawbone OPEC, the implication being that President
Bush is not advocating America's interest, that he is too soft.
The foreign policy of the junior Senator from Massachusetts is
interesting on this point. On one hand he criticized the President for
not kowtowing to the United Nations and countries such as France in the
war on terrorism and on the other hand suggests that the administration
is too soft on oil-producing nations. You cannot have it both ways.
In addition, the Senator has been a supporter of drastic climate
change legislation that would cripple our economy and legislation that
would literally shut down powerplants in the United States, the outcome
of which would send hundreds of thousands of American jobs overseas and
seriously stress our supply of energy.
It was the Wharton Econometrics Survey that came out with the
conclusion that if we signed on to the Kyoto Treaty, it would cost 1.4
million jobs--that is what we are talking about today: jobs--it would
double the price of energy, it would cost an increase of 65 cents a
gallon on gasoline, and it would cost the average family of four $2,700
a year. That is not Jim Inhofe talking; that is what came from the
Wharton School of Economics.
In addition, the Senator has been a supporter of drastic climate
change legislation that we have talked about that would be disastrous
for this country. Again, since the Senator has not developed an energy
policy before and failed to show up for the Energy bill vote, I must
look to his words and not his actions to determine what is the intent
of his energy policy.
The Senator's recommended energy and environmental policy seems to be
tainted with an overriding intent to impose his utopian view of the
future without any consideration on present reality at any cost. The
junior Senator from Massachusetts makes nonhydropower renewable energy
a cornerstone of his energy policy. Again, however, we must look to the
Senator's words on the matter and not his deeds.
Last year's energy bill renewed a tax credit for wind and solar
energy, a credit that expired on December 31. The Senator failed to
show up for the crucial vote and the tax credit died. Prior to that
vote, Randall Swisher of the American Wind Energy Association said: If
the energy bill dies, extension of the wind production tax credit will
also die for any time in the foreseeable future.
Swisher and many in the industry contend the credit is essential to
maintaining their businesses. He said:
If we weren't in the bill, the credit that is the
foundation of our industry was going to expire and with it
our industry would expire.
So, yes, it was important for them to see the energy bill move
forward. President Bush recognizes the valuable contribution renewables
can play in our Nation's energy mix. The President dedicated $1.7
billion over 5 years to develop hydrogen fuel cells and related
technologies. In 2005, in his budget, it includes $228 million for a
hydrogen fuel initiative, an increase of $69 million, or 43 percent,
over the 2004 funding to develop the technologies to produce, store,
and distribute hydrogen for the use of fuel cell vehicles, electricity
generation, and other applications.
The 2005 budget proposes tax incentives totaling $4.1 billion through
2009 to spur the use of clean, renewable energy and energy-efficient
technologies.
President Bush's plan invests in the future. He wisely recognizes
nonhydropower renewable energy represents only about 1 percent of our
Nation's energy mix.
The Senator, on the other hand, would mandate 20 percent of our
Nation's electricity be generated with those very same renewable
sources by 2020.
In 2003, DOE's Energy Information Administration concluded a 10-
percent mandate could cost Americans more than $100 billion. However,
the effect would likely be far more severe in certain regions of the
country where ``not
[[Page S3437]]
in my backyard'' and the risks seem to drive policy without regard to
fixed and low-income residents.
The fact is wind energy, the most cost-effective renewable, is only
effective when the wind blows. We already know where the rich elite
stand on developing wind turbines off the coast of Cape Code in the
Senator's home State of Massachusetts.
The presumptive Democrat nominee also supports legislation that would
cap carbon dioxide under pollution-reducing bills as well as under the
auspices of global climate change. Again, the Senator seeks to impose
his utopian world view on people without bothering to consider our
Nation's energy makeup, or more likely he is but does not seem to care.
Drastic carbon dioxide reduction strategies the Senator supports
would effectively force coal out of use. I think we all understand
that. Coal right now, whether the junior Senator from Massachusetts and
his special interest radical supporters like it or not, makes up one-
quarter of our country's energy mix.
Recently, it has been reported the junior Senator from Massachusetts
supported a 50-cent per gallon tax on gasoline. The effects of such a
tax on our country are obvious. However, I think it is important to
note such a tax is another example of the Senator's overriding
opposition to fossil fuels and his blind and unwavering support for
nonhydropower renewables without regard to the state of our Nation's
actual energy mix.
Nonhydropower renewable energy is a wonderful concept and with the
administration's investments in developing technology, I am confident
its use will increase considerably. However, today it is too costly,
which leads me back to the Senator's overriding intent behind his
suggested energy policies.
The presumptive Democrat nominee and his radical environmental group
supporters also recognize renewables are not cost competitive compared
with traditional energy sources today. Their answer: Embark on a
strategy to make fossil fuel use so expensive and burdened with
regulations that nonhydropower renewables suddenly become more cost
effective by comparison.
Let's recap a few of the highlights of the recommendations of the
junior Senator from Massachusetts. No. 1, empty the Strategic Petroleum
Reserve. No. 2, do not produce domestic oil. No. 3, impose a tax on
gasoline, some 50 cents a gallon. No. 4, impose a mandate increasing
nonhydropower renewable energies from 1 percent to 20 percent in 15
years. No. 5, restrict carbon dioxide emissions, which translates to
reducing U.S. economic production.
The Senator's energy policy is certainly bold, if nothing else. It is
just that the Senator's utopian view of the future ignores our very
real present.
Like his radical special interest supporters, the Senator's energy
policies would increase costs on American consumers, disproportionately
affect the low and fixed-income taxpayers, and drastically undermine
the ability to compete in the global market.
If this were not a Presidential election year and we were asked to
judge a man not on his words but on his actions, we would in large
measure know what the Senator's energy policy would be: Do nothing but
make speeches.
Some may scoff at what I am saying. We all know the Senator was too
busy campaigning to do the job his constituents elected him to do and
the job American taxpayers have paid him to do. Instead of actually
doing some work and crafting an energy policy, the junior Senator from
Massachusetts chooses to make outrageous allegations from the comfort
of multimillion-dollar mansions in Beverly Hills.
I yield the floor.
The PRESIDING OFFICER (Ms. Collins). The Senator from Massachusetts.
Mr. KENNEDY. Madam President, I had not expected to hear the kind of
statement with regard to the criticism of the Senator from
Massachusetts, my colleague and friend John Kerry, on the energy
policy. I will include in my comments a response to Senator Inhofe.
I am wondering whether the Senator could possibly tell us what was
the position of the President of the United States when OPEC continued
to cut back on production today. We have a statement by a colleague
talking about a candidate for the President of the United States when
today OPEC primarily--
Mr. INHOFE. Madam President.
Mr. KENNEDY. I have the floor.
Mr. INHOFE. Madam President, I was asked a question, and I would like
to answer the question.
Mr. KENNEDY. Regular order. Regular order.
The PRESIDING OFFICER. The Senator from Massachusetts has the floor.
Mr. KENNEDY. No, I do not yield.
We have today more than 150,000 servicemen who are over there
protecting the oil countries in the Middle East, and American service
men and women are dying every single day. If we have a President of the
United States who is lacking in sufficient influence to try and
indicate to our allies that it is of vital importance to the security
of the families and industry in the United States that they increase
their production, what kind of influence do we have? Where is our
President of the United States on this issue? Why are we hearing
Members who are so eager to talk about John Kerry's policy on energy
talking about what we ought to be doing over there today as OPEC is
cutting back on its production?
We hear silence. We have silence about that. Where is the
administration?
I remember last week we had my good friend Spencer Abraham, who is
the Secretary of Energy, and I asked him the question whether this
President was going to try and persuade the oil-producing countries in
the Middle East to produce more energy, particularly at a time when we
are faced with difficult economic significance. His answer was: This
administration is not going to beg for oil.
Beg for oil? When we have 140,000 men and women over there protecting
their interests and protecting their oil and they are cutting back
production?
I would not think there would be many Members of the Senate who would
be criticizing my colleague, who has done so, who recognize that their
President should provide Presidential leadership. This election is
about Presidential leadership. My colleague has been demanding that
this President do something about the cutbacks in production.
We hear criticism--well, he didn't show up for a vote. Sure, he is
running for the Presidency of the United States.
I will certainly respond to my colleague, but I am absolutely baffled
that one of the major energy decisions being made in the world is being
made within the last 24 hours by the OPEC countries, the primary
producers, Saudi Arabia in the Middle East, other middle eastern
countries whose security American servicemen have been fighting for and
dying for, and this President and this administration has not
sufficient influence to be able to stop them from cutting back in
production or getting them to increase production. You talk about a
bankrupt energy policy--there it is.
Every consumer ought to know when they pay those extra funds for the
gasoline, they are paying it directly to countries over there in the
Middle East whose security we are protecting and for which American
lives are being lost. It is beyond belief to me.
Amendment No. 2945
Madam President, we have, over the course of the day, had a number of
our colleagues speak about the amendment that is before us, and that is
the increase in the minimum wage over a 2-year period, up to $7 an
hour. I want to wrap up this evening and summarize a couple of
important points because during the course of the afternoon, I followed
the debate when I wasn't here for a few hours, meeting with the head of
the VA about some of the challenges we are facing up in Massachusetts
about veterans health.
We heard statements, speeches from some of our colleagues on the
other side, that the increase in the minimum wage was delaying action
on the TANF reauthorization. Of course nothing could be further from
the truth. As Senator Boxer, my friend and colleague who introduced the
legislation, and I have stated, we would have been willing to have a
20-minute time agreement, 10 minutes a side, and had a vote and final
disposition and then moved ahead with other amendments.
[[Page S3438]]
But the opposition is so strong in opposition to this amendment that
the Republican leadership has insisted we have, effectively, a cloture
vote, delaying progress on the underlying bill for some 2\1/2\ days, so
if they are successful in getting cloture, cutting off the debate, they
will eliminate the possibility of even voting on an increase in the
minimum wage.
Maybe there are those who are opposed to the increase in the minimum
wage. We have heard some of them speak today in opposition. But the
idea that this is not related and relevant to the underlying bill
defies any logic and any fair understanding of what the underlying
bill, the TANF bill, is all about.
I bring to their attention the statement that was made by Secretary
Thompson regarding the TANF reauthorization when he testified on March
6, 2002. He said:
This administration recognizes the only way to escape
poverty is through work, and that is why we have made work
and jobs that will pay at least the minimum wage the
centerpiece of the reauthorization proposal for the Temporary
Assistance for Needy Family Program.
That will pay at least the minimum wage. There it is in the words of
the President's own representative. That is exactly the issue we are
attempting to address and we are being denied getting final action on
it.
I am going to take a moment to review for the benefit of the Senate
about where the minimum wage is now. The purchasing power of the
minimum wage has dramatically decreased.
We reviewed with the Senate what the impact of the increase in the
minimum wage has been on unemployment and have shown many times when we
have had increase in the minium wage it had virtually no adverse impact
on the question of unemployment. We reviewed the fact if we have the
increase in the minimum wage it virtually has no impact on the issue of
inflation. We responded to the question of different conditions and
different parts of the country. There are small mom-and-pop stores that
would not be able to afford the increase in the minimum wage. We
responded and pointed out those stores by and large are excluded under
the provisions of the existing minimum wage.
We heard: We don't want to do this because we want to encourage young
people to work in agriculture. We responded: It doesn't relate to
agricultural workers.
We have addressed all of these kinds of conditions.
These minimum wage workers are men and women of dignity. They work
hard and long. The men and women who clean out the buildings in this
country at nighttime, teachers' aides, and assistants working in homes
looking after the elderly are men and women of dignity. They do not
want any assistance. They want to have a wage so they can provide for
themselves and their children and their families.
I want to reiterate and give some examples. I gave some examples
earlier. These are the real faces of people who are going to be
affected by what we do here tomorrow on the floor of the Senate,
whether we are going to be able to get a vote on the increase in the
minimum wage or whether we are going to be denied that opportunity to
do so.
The minimum wage affects a person such as Cynthia Porter.
Cynthia Porter is not on welfare. She works as a certified
nursing assistant at a nursing home in Marian, Alabama. When
Cynthia comes on duty at 11:00 p.m., she makes rounds. She
checks the residents for skin tears and helps them go to the
toilet or use a bedpan. She has to make sure she turns the
residents every two hours or they will get bedsores, and if
bedsores are left unattended, they can get so bad that you
can put your fist in them.
But there aren't enough people on her shift. Often there
are only two nursing assistants for forty-five residents. In
addition to responding to the needs of the residents, Cynthia
must also wash the wheelchairs, clean up the dining rooms,
mop the floors and scrub out the refrigerator, drawers, and
closets during her shift. Before she leaves, she helps the
residents get dressed for breakfast.
For all of this, Cynthia makes $350 every two weeks. She is
separated from her husband, who gives her no child support.
The first two weeks each month she pays her $150 rent. The
next two weeks, she pays her water and her electric bills. It
is difficult to afford Clorox or shampoo. Ensuring that her
children are fed properly is a stretch, and she is still
paying off the bicycles she bought for her children last
Christmas.
She can't afford a car, so she ends up paying someone to
drive her the twenty-five miles to work. And there have been
a few days when she couldn't find a ride. ``I walked at
twelve o'clock at night,'' she said. ``I'd rather walk and be
a little late than call in. I'd rather make the effort. I
couldn't just sit here. I don't want to miss a day,
otherwise, I might be fired.'' There is no public
transportation that would take her to work.
I first met Cynthia at a union meeting. She had a quiet,
dignified presence with her dark suit and her hair pulled
back in a bun. She and twenty-five others from the nursing
home--all eighty of her coworkers are African American women
like her--gathered in the little brick Masonic building
outside of Marian to talk about having a union. Like Cynthia,
none has ever gotten a raise of more than 13 cents. Some who
had been there ten years were still making $6.00 an hour.
She is effectively a minimum wage worker.
These are the people this legislation is trying to help.
Linda Stevens:
The only job she could find with a high school degree and
some college courses was a part-time cashier's position at a
small market called George and Stanley's, working the night
shift from 6:00 p.m. to 10:00 p.m. Not surprisingly, the
$5.00 an hour she made at her retail job was not enough to
support her and her daughter, so she worked a second job from
2:00 to 5:00 p.m. as a receptionist at H&R Block, which paid
$5.50 an hour. She liked the work and would have preferred to
go full-time, but H&R Block only offered work from January
through April. The money from these two part-time jobs still
did not cover her bills, so she worked as a lunch supervisor
for the Flint public schools from 11:30 a.m. to 1:00 p.m. She
had to put planners up on the wall to keep track of her
schedule. And even then, she had no benefits.
After a year, Linda left her job at George and Stanley's
after they refused to give her a 25 cent raise and went to
work at Kessell's on the day shift for $5.25 an hour. But
Kessell (which has since been purchased by Kroger) would only
give her a part-time position and without full-time status,
she still did not get benefits. Working three jobs became so
exhausting that she left her lunch supervisor position, but
had to continue to work her second job at H&R Block.
Linda's typical day started at 6:00 a.m. when she got her
daughter ready for school. Her job at Kessell started at 7:00
a.m. and ended at 3:00 p.m. She came home, changed, and went
to her job at H&R Block at 5:00 p.m. and got off at 10:00
p.m. Her schedule left little time to spend with her
daughter.
She needs a minimum wage to help that family.
Flor Segunda of Newark, NJ:
Flor lives in a primarily African-American neighborhood of
Newark, New Jersey, with her husband and three children:
Jose, who is nine years old; Luis, who is two and a half; and
Paul, who is one and a half. To reach Flor's place, you must
walk down a flight of concrete stairs, through a narrow hall,
and past the washer and dryer. Like most basement apartments,
it is damp and dark. One small window allows the only
daylight to enter. They pay $700 per month for this two-
bedroom apartment without utilities. There are no parks near
her apartment and she doesn't have a car. So most days, the
children stay inside.
At night when most workers are at home, Flor begins her
day. She cleans, dusts, vacuums, dumps trash, and straightens
the offices of law firms in a large suburban office building
in West Orange, New Jersey. Flor is a janitor. She works for
a private contractor who contracts with the owners of
commercial buildings to provide cleaning services.
She would benefit from an increase in the minimum wage.
Finally, Judy Smithfield:
Judy Smithfield works in a superstore as a pharmacy
technical assistant, a ``pharmacy tech.'' Her 12:00-9:00 p.m.
shift begins with a call from a nurse in a doctor's office
dictating a prescription over the phone or a customer at the
counter giving her a prescription. Once she has the
information, she gives it to the pharmacist to process in the
computer. Then it is Judy's responsibility to check that
information and get the proper medication from the shelf. She
counts the pills that are prescribed, puts them into the
bottle, affixes the proper label to the medication, gives the
filled prescription to the pharmacist for her review, and
puts it in the proper bin for the customer to pick up.
Once the customer arrives, Judy must ensure that she has
the right prescription and that the proper forms are filled
out. She must ask the customer whether they understand the
prescription, whether they want counseling or have any
further questions. Their response must be put in writing.
There are two pharmacy techs and three pharmacists on
Judy's shift that fill over 400 prescriptions per day. If the
pharmacy gets behind in the prescriptions, Judy stays late,
sometimes until midnight. Many times she works six days a
week because they don't have enough help. Her feet and back
ache from standing all day.
This will help Judy.
I want to conclude again by talking about the impact of the minimum
wage
[[Page S3439]]
and the failure of increasing the minimum wage on families,
particularly on children.
I pointed out earlier we have 35 million Americans, according to the
Department of Agriculture, who are hungry or living on the edge of
hunger for economic reasons--35 million in a country of 290 million.
Today 300,000 more families are hungry than there were 3 years ago.
The 2003 survey by the U.S. Conference of Mayors that looked at hunger
found effectively 39 percent of the adults requesting food assistance
were employed. A leading cause of hunger is low-paying jobs.
Emergency food assistance increased by 14 percent. Of those
requesting emergency food assistance, 59 percent were members of
families with children and elderly parents.
City officials recommend raising of the Federal minimum wage as the
way the Federal Government could alleviate hunger.
This is their No. 1 recommendation. This is the survey of the U.S.
Conference of Mayors, Republican and Democrat alike, for raising the
minimum wage.
Finally, I have the excellent report of the National Urban League,
October 2002. I will read just parts of it. In the foreword, it says:
Too often, changes in the minimum wage are viewed as poorly
targeted to the needs of America's working families. Minimum
wage workers are too often presented as teenagers, or wives
in middle class families. Yet, the clear implications of this
study are that the proposed increase in the minimum wage from
$5.15 to $6.65 an hour would move 1.4 million American
households to the level of being food secure, having enough
money to buy nutritious and safe food for their families.
And, a disproportionate share of the households that would
benefit would be African American or Hispanic. Single parent
households would also benefit disproportionately from an
increase in the minimum wage.
Again raising the minimum wage is a clear policy solution for helping
meet the needs of America's poor children.
Then it goes on in the executive summary:
Second, we show that increases in the minimum wage raised
the food security of households in which the householder,
principal person in the household, has no more than a high
school diploma or is a single parent or both. The increases
in the minimum wage lessened hunger in all households, but
particularly in low-income households and in those households
in which the householder was less educated, African-American,
Hispanic or was a single parent.
Finally, I will include in the Record the findings. These are briefly
the findings.
We find that:
(1) Increases in the Federal minimum wage to $4.25 in
October of 1996 and $5.15 per hour in September 1997--
That was 7 years ago--
reduced hunger among all households and in particular, in
low-income households where individuals had completed no more
than a high school degree. . . . Hunger is defined as a
psychological condition where household members experience an
uneasy or painful sensation caused by the involuntary lack of
food.
(2) Relative to the general population, food security rates
are lower among households in which the householder has no
more than a high school degree. . . .
(3) A direct relationship between food security and
increases in the minimum wage was observed following two
modest increases in the minimum wage in 1996 and 1997--when
food security rates increased slightly; and following
administration of the Food Security Supplement . . . of 1995.
Food security rates also increased modestly following 1995. .
. .
(4) Inner city households have the highest levels of food
insecurity, followed by suburban and rural households. Other
studies have demonstrated that groups most-at-risk for food
insecurity are those who are most economically vulnerable,
and whose households are most directly impacted by increases
in the minimum wage.
The failure of our increase in the minimum wage is wrong because
Americans believe people who work 40 hours a week, 52 weeks a year,
should not have to live in poverty in the United States of America. And
it is wrong because we now have millions of children who are going
hungry every night, and millions of families who are going hungry as
well.
We can make some difference by increasing the minimum wage. It is now
at a dramatically decreased level of purchasing power. Certainly, we
can do better. We should do better. How can we possibly tolerate the
conditions of our fellow Americans and not say that we need an increase
in the minimum wage? I hope we will be able to do so tomorrow.
I yield the floor.
The PRESIDING OFFICER. The Senator from Delaware.
Mr. CARPER. Madam President, I appreciate the opportunity to rise in
support of the amendment offered by Senators Kennedy and Boxer to raise
the minimum wage over the next 2\1/2\ years.
My staff provided me with some information about the history of the
minimum wage. One important date cited is 1968, which was my senior
year at Ohio State University. I had a couple of jobs then. I was the
pots-and-pans man at the Delta Gamma sorority house. I also had a part-
time job at the university bookstore. I was paid the minimum wage for
both jobs, which at the time was $1.60 per hour. If you adjust $1.60
for inflation, then the minimum wage would presently be $8.50 per hour.
Senators Boxer and Kennedy propose that we gradually raise the
minimum wage over the next 2\1/2\ years. They recommend raising it from
the current level of $5.15 per hour to $5.85 in the next 60 days, from
$5.85 to $6.45 a year later, and finally from $6.45 to $7 the following
year.
Some have said that such an increase goes too far, too fast, and have
suggested that we take a different approach. However, we should do some
math on the decline of the real value of the minimum wage. The current
minimum wage has been $5.15 per hour since 1997. If you adjust $5.15
for inflation, then we would have a minimum wage of $5.95 per hour.
But, if you adjust the minimum wage for inflation from its 1968 level
of $1.60, then the minimum wage would presently be $8.50.
Senators Kennedy and Boxer are right in the middle between the two,
and I would suggest to my colleagues that they are not far off the
mark. In fact, their amendment is a pretty good compromise.
I know that some people do not want to raise the minimum wage, and
that they are concerned by the potential for job losses if we were to
do so. And some of our employers--both large and small--have expressed
concerns with an increase in the minimum wage and urge us to be mindful
of those concerns.
Having said that, we also need to be mindful of minimum wage workers.
Senator Kennedy shared with us some real-life examples. Let me share
with you some of my own experience from when I was a college student
earning the minimum wage. A lot of people who received the minimum wage
in 1968 were not supporting a family. I was not supporting a family in
1968. Many of them were students or just out of school.
But a lot of the people who earn the minimum wage these days are
people with a family, with one child, or maybe two. They may be in a
two-parent family. But in a lot of cases, a minimum wage earner is a
single parent.
I urge my colleagues to keep this statistic in mind as we consider
whether to support an increase in the minimum wage. If you or I were
working full time, 40 hours a week for 52 weeks a year, with no time
off, then we would be making about $206 a week if we were paid the
minimum wage. That is less than $11,000 per year.
Madam President, less than $11,000 per year does not crack the
poverty line for one person, much less two or three.
As a Governor who worked on welfare reform in my state and with the
National Governors Association I understand what it takes in order for
people to move off of welfare. For people to move successfully from
welfare to work, four things have to happen: One, they have to have a
job to go to; they have to have a way to get to the job; they have to
get some help with their health care; and they need some help with
their childcare. Those four things: a job, the ability to get to a job,
health care, and childcare are critical.
The other thing people have to have when they get off of welfare for
work is the belief that they will be better off working than on
welfare.
In my own State of Delaware, we adopted comprehensive welfare reform
in the mid-1990s and phased in an increase in the minimum wage. Today,
the minimum wage in Delaware is $6.15 per hour. We increased the
minimum
[[Page S3440]]
wage to help people move off of welfare. We wanted to make sure that
they were better off working than on welfare.
I ask people to understand, whether you happen to be from Delaware or
Maine--where the Presiding Officer is from--or from any other State, to
try to make it these days on $11,000 per year, while trying to hold a
family together. It is incredibly difficult to do so.
The other thing I want to say is on a more macro-issue with respect
to welfare reform legislation currently on the Senate floor. We should
be able to pass welfare reform legislation. Both sides agree on about
90 percent of the issues. For those issues that we do not agree on, we
should be able to reconcile our differences.
I believe that legislation I introduced with Senator Collins, the
Presiding Officer, and with Senator Ben Nelson is a consensus bill on
welfare reform--we think it is a pretty good compromise from what has
been reported out of the committee and has some of the changes that
Democrats would like to see. That bill is a good compromise.
On our side, we want to have an opportunity to offer relevant
amendments to legislation before the Senate. One amendment is an
increase in the minimum wage, which I think is relevant to this
particular bill. A second amendment is an extension in unemployment
compensation benefits. We should extend unemployment compensation
benefits until our economy is stronger and we have more jobs for people
looking to work.
Senator Harkin has an interest in offering an amendment on overtime
regulations, which has already passed the House and the Senate. He is
determined to make sure he has a chance to offer that again.
We are smart enough around here to be able to work with our
Republican colleagues to come up with an agreement that allows those
three amendments to be offered.
Once those amendments are offered, we should be able to offer other
relevant amendments to this welfare bill. I have a few amendments to
offer, and I know others do as well. We should be able to agree on a
reasonable number of amendments--it could be 10, 20. We could also
agree to an amount of time on such amendments, for example, 10 minutes
for proponents of the amendment and 10 minutes for opponents of the
amendment. When the debate on an amendment is completed the Senate
should vote.
I would be very disappointed if we went along and, at the end of next
week, were not able to close our differences on welfare reform
legislation and the FSC bill.
The last thing I will mention has to do with conference committees.
When the House passes one bill, and the Senate passes a different bill,
we end up, a lot of times, in a conference negotiation to resolve
differences between the bills. And we, in the Democratic Party, have
been stung because we have not been allowed to participate in these
conferences.
We saw that happen with respect to the Energy bill, where Democrats
were not invited to participate. We saw it happen to a large extent in
the conference on the Medicare prescription drug bill, where, for the
most part, Democrats were not allowed to participate in conference
negotiations. We cannot allow that to continue. Democrats are not going
to allow that to continue. Someday Democrats will be in the majority.
Someday our friends on the other side will be in the minority. I ask
them to keep that in mind because what is good for the goose is good
for the gander.
To the extent that we get closed out of conference committees without
any active participation, the same thing could happen to them. I would
not want to do it to them, and I do not like having it done to us.
Part of this universal agreement in moving welfare reform and getting
the FSC bill onto the Senate floor is not just encouraging words about
the conference, but a good, hard, fast agreement that Democrats will be
full participants in a welfare reform conference with the House.
It is too bad that the presiding officer, Senator Collins, and I
cannot work out these differences by ourselves. We would pass a bill
that we negotiated with Senator Nelson of Nebraska. It would be pretty
easy.
I do not mean to minimize nor make light of the toughness of the
situation we face, but we can get this done. We need to get this done.
We are going to take a recess week sometime around Good Friday. I sure
hope we can go home having passed welfare reform legislation through
the Senate, and to have made good progress on FSC legislation as well.
With respect to a reasonable increase in the minimum wage, we should
be able to get that done. It is the right and fair thing to do. We need
to have an extension of unemployment compensation benefits. While we
have an official unemployment rate of about 5.6 percent, the rate is
actually closer to 7.5 percent once you count all the people who have
run out of benefits or stopped looking for employment.
If we agree to those things, we ought to be able to get those bills
done and move on to the next step in welfare reform. Welfare reform is
a great experiment, made successful by our Nation's Governors. Members
of the Senate know how to make it even more successful going forward.
It has been a pleasure to do business with the Presiding Officer and
Senator Nelson on our side. I hope we can take some of the provisions
in our bill and have an opportunity to offer them as an amendment to
the bill in the next day or two.
I yield the floor.
The PRESIDING OFFICER. The Senator from Missouri.
Mr. TALENT. Madam President, the hour is getting late. I am going to
take a few minutes of the Senate's time to talk a little bit about
welfare reform. It is a subject that has been close to my heart for a
long time. I was a freshman in the House when I introduced, along with
then-Congressman Tim Hutchinson who subsequently served in this body,
what we called the real welfare reform act.
The idea behind that bill was to stop talking about welfare reform in
terms of whether we could save money or whether we could stop fraud in
the welfare system and start talking about what was really at stake,
which was replacing a system that had punished work, that had
discouraged marriage, that had torn down neighborhoods, and had mired
people in despair and replaced it with a system that encouraged work
for able-bodied people, required it in some cases, that supported
community-based solutions, and built up neighborhoods.
We talked about that bill for several years. Welfare reform gained
steam. There were some who opposed it the whole time, who fought a last
ditch effort on behalf of the status quo; a pretty lousy status quo it
was, too. But eventually we passed the bill by very large majorities in
both Houses. President Clinton signed it. There were predictions of
doom. It has turned out to be--I guess now by consensus--the most
successful legislation of the 1990s, and the most significant social
reform passed in the last generation in this Congress. Now the
extension of that bill, the new welfare reform bill, the attempt to
extend the benefits of work and marriage to more and more people around
this country, is being filibustered.
That is not a new thing in this Senate. I made a quick list. We can't
approve nominations for judges; that is being filibustered. The Energy
bill was filibustered. The liability relief bill was filibustered. The
tax break for manufacturers to try and keep manufacturing jobs in the
United States was filibustered. Now welfare reform is being
filibustered in the name of passing a minimum wage increase.
Of course, there are varying opinions in the Senate and around the
country about the minimum wage. I have supported it in the past, when
it was linked to tax benefits or other kinds of support for small
business because whatever you think of it, it is a mandate on small
business. We ought to support small businesspeople, the ones who are
creating the jobs in the country, if we are asking them to increase
their payments.
Whether you do or you do not support the minimum wage, though, it is
a terrible mistake to filibuster the welfare reform bill in the name of
passing the minimum wage bill. As a matter of fact, my understanding is
the leadership has offered to take votes on that and several other
measures that Senators on the other side want to offer, if
[[Page S3441]]
we can have some assurance the bill will pass, some assurance that
going through these amendments that are not germane to the bill will
allow us to pass the bill and then get to conference and finally pass
the bill and send it to the President. That does not seem to me to be
an unreasonable request.
Why is it so important that we pass welfare reform? What has happened
since 1996? Mr. President, 3.6 million fewer Americans live in poverty
now; 2.9 million fewer children live in poverty. Child poverty is at
its lowest rate. Kids are not as poor as they were. In June 2002, there
were 5 million welfare recipients, which was a 65-percent decrease from
the 1994 level. The poverty rate of single moms is the lowest rate in
U.S. history. Even the out-of-wedlock birth rate has stabilized and
gone down slightly since 1996.
I was at a press conference earlier today when a lady talked about
the effect of this on her life. Because of welfare reform, she is now
working and supporting her family. She talked about what it meant to
her kids. The first day she came home from work with a paycheck, they
waited for her, and they wanted to go to the store and pay cash at the
grocery store instead of having to use food stamps. They were proud of
their mother. There are stories such as this all over the country.
Now in the name of helping the poor, some Members are holding up the
welfare reform bill. There is an irony in that.
Let me talk a little bit about history. Poverty in the United States
in the immediate postwar era was about 30 percent. It declined steadily
for 20 years until 1965; reached about 15 percent in 1965. And that is
when the Federal Government declared war on poverty, which was a good
thing. One of the frustrations about this whole experience is there is
a consensus. If we look beyond the politics of the 24-hour news cycle
and look where the two great parties in this country have come from,
what their mainstream beliefs are, there should be a consensus about
welfare reform. There is on final votes.
Liberals, in 1965, got the Federal Government aggressively in the
business of trying to do something about poverty. That was a good
impulse. What went wrong with it was that they did it in such a way
that showed a disrespect for the basic values that have always gotten
people out of poverty. The two best antipoverty programs, historically,
in the United States, the way people get out of poverty have been work
and marriage, family. They work and they marry somebody who works. They
get out of poverty.
Poverty is not that unusual an experience for Americans. Most
Americans either grew up in poverty or they have a parent who grew up
in poverty or at least a grandparent who grew up in poverty. That is
how they got out of poverty.
For 30 years, from 1965 to 1995, in the name of fighting poverty, the
Federal Government conditioned assistance to poor people on them not
doing the two things that get people out of poverty. They offered a
package of benefits that, to somebody coming from a low-income
background, looked like a lot of money--cash benefits, Medicaid,
housing subsidies, food stamps--but only on the condition they not get
a job, they not get married, and they have children anyway. That is how
we ran the welfare system for 30 years.
The poverty rate, which was 15 percent in 1965, 30 years later was 15
percent. But it was intractable poverty because if you are 18 or 19
years old, you have a child without being married, you don't have your
education yet, a couple years later you realize it is hard now to climb
the ladder. It is hard now to realize the American dream.
Well, we fixed that in 1996. We introduced a system where if you are
able bodied, we are going to help you work. There is a constellation of
benefits and supports in the bill to enable you to work. The other day,
we passed an amendment increasing daycare in this bill. I supported
that to enable people to work.
The bill extends the benefits of work to more people and makes sure
that the States around this country have to keep trying to help people
get off welfare and into self-sufficiency. We should define success not
by how many people we get on the welfare rolls, but by how many we get
off. We can open opportunities for millions of people who currently
don't have it.
The bill contains a provision I strongly support. It was in a measure
I had introduced, establishing a promarriage program. In 1996, we
talked a lot about reducing the out-of-wedlock birth rate. That was a
good thing to do. We wanted kids to have dads. I am glad we introduced
that subject. In a sense, we were fighting the darkness by talking
about what we were against. The bill we are debating today lights a
candle. You cannot just fight the darkness; you have to let in the
light.
There is a $300 million grant program here, encouraging the States to
go to people when they apply for welfare and talk to them about the
benefits of healthy marriage. The surveys show that a majority of folks
applying for welfare--or many of them--are living with the partner with
whom they are having a child. Many of them, if not most, are thinking
about marriage. There may be many reasons in their minds why they don't
want to do it. Maybe their parents had bad experiences. Maybe they are
not certain about the partner. Maybe they have fights and they don't
know how to resolve that. What an opportunity we have at that point--
and often through community-based organizations that have grown up in
the last 10 years--to approach them and say, here are the benefits to
your children of being married, if you can do it in a healthy way. Here
is how you can do it that way. We can help you learn how to resolve
disputes, help you learn how to build healthy relationships. That is in
this bill.
There are a lot of things in this bill we know will make a difference
for people because they have made a difference for the last 7 or 8
years. It is being filibustered in the name of helping the poor.
Well, I don't really know what to say. It seems to me we ought to be
able to come to some kind of an agreement here. I have been in meetings
of Senators on this side of the aisle, when the Republican leaders have
said, we are willing to give votes on some of these message amendments,
but we want some assurance that we are going to have an opportunity to
vote on the bill in final passage after a reasonable period of debate,
and then go to conference.
I know the Senate is different than other legislative bodies. I am
new here and it is an honor to be here. I have had the privilege of
meeting and working with people on both sides of the aisle that I read
about and saw on television for years, and they are an extremely able
group of people. But most legislative bodies are about actually doing
something. We have measures before us that I know, if we can get to
final passage, would have substantial majorities--bipartisan
majorities. This is one of them. How come we cannot get there?
It is hard not to reach the conclusion that politics is being
played--not politics in the broadest sense because actually that is
part of what democracy is about, not laying forward an agenda,
presenting it to people, and driving distinctions between you and the
people who disagree with you and getting support from the public so you
can move an agenda that makes a difference, but the politics of
controlling or shifting the discussion from an issue focus groups say
doesn't help you on an issue, but the focus group says does help. I
don't think that politics works. Here we are holding up legislation on
behalf of--I am afraid to say it, but I think of politics that is not
even very good politics and certainly will end up hurting a lot of
people.
I have worked on this subject for a long time. I have an underlying
faith that we are going to get our act together at some point and get
this done. I know too many people of good will in this body. I
emphasize again how important this is to real people. I have been all
over this country, all over my State of Missouri, and I have talked to
so many people, recipients, people who work with welfare recipients,
who are excited about what has happened in the last 7 or 8 years as a
result of the passage of the 1996 bill. We did something good.
Work and marriage can make a difference for people. We can have a
Federal Government that is aggressive in helping people in a way that
is consistent with the great values upon
[[Page S3442]]
which we built this country. That is at stake with this bill.
I hope we can reach some kind of conclusion. I am certainly willing
to vote on these other issues. I might have a few extraneous amendments
I would not mind offering myself. But at the end of the day, we need to
get this bill done, send it to the House, conference on it, and get it
to the President. We can all be certain that when we do that, the bill
we produce is not going to be perfect in anybody's eyes, but it will be
a step down the road we took in 1996, which made a difference in the
country to those who are the most powerless.
I yield the floor.
Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. LAUTENBERG. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Alexander). Without objection, it is so
ordered.
The Economy
Mr. LAUTENBERG. Mr. President, I have a couple of statements I wish
to make. I appreciate the recognition from the Presiding Officer for
this purpose.
Earlier today, there were statements made on the floor, echoed by the
junior Senator from Colorado, in which he claimed several times
President Bush inherited a bad economy. I know my friends on the other
side of the aisle genuinely want to believe that, but it is simply not
true. That is not the fact.
The official arbiter of when recessions begin and end is the National
Bureau of Economic Research, NBER. Despite intense and inappropriate
political pressure from the White House, the NBER continues to insist
the recession began in March of 2001, nearly 3 months after President
Bush took office. Facts are stubborn.
On a related note, the junior Senator from Texas was on the floor
some time ago with a poster that read: Most jobs ever. Perhaps he was
referring to India. He certainly could not be referring to the United
States.
Yesterday, we had another administration official--in this instance
Treasury Secretary Snow--talking about how wonderful outsourcing is for
our economy. Don't ask the people who are out of work, I can tell you
that, and don't ask their families.
This notion the U.S. economy is currently generating record numbers
of jobs is thoroughly specious. It would be laughable if it were not so
pathetic. The claim is based on data selectively culled from something
called the household survey. Economists from Alan Greenspan on down
insist the accurate measure of jobs gained and lost is the payroll
survey. Even the President's own Council of Economic Advisers relies on
that which we call the payroll survey.
This is something I know something about. Before I came to the
Senate, I was the chairman and CEO of a company called ADP, Automatic
Data Processing. It was a company I started with two other neighborhood
friends in the city of Paterson, NJ. The company was named in its
earliest days Automatic Payroll. Later on, as we expanded our reach of
services, it was changed to Automatic Data Processing, ADP. For the
information we are discussing here, it specialized, among other
services, in payroll processing--in other words, writing paychecks for
client companies that relied on us to compute their payrolls. Now, I
know a paycheck when I see one. ADP, the company I helped found and run
for many years, pays over 30 million people each and every pay period.
Approximately 10 million of them are outside our boundaries in other
countries, but more than 20 million work in America and are paid right
here. So I know something about payroll structure.
Interestingly, one of our most distinguished board members was a
fellow named Alan Greenspan, the Alan Greenspan who is now the Chairman
of the Fed. He was on the ADP board. He was on the ADP board as a very
valuable director. He developed a service that was called the
``econometrics'' plan. ADP, my company, the computer service company,
would deliver this service--they called it an online service--and we
would process the work we did for Alan Greenspan's company as well as
for clients, over 500,000 of them today, through cities and towns
across America.
When Alan Greenspan, the talented and credible Chairman of the
Federal Reserve, says use the payroll survey to get reliable data on
how many people have jobs and are getting paid that way, I think it has
to be treated with great respect.
According again to the payroll survey--not the household survey. The
household survey is done in a different manner. They are both done by
BLS, the Bureau of Labor Statistics, but the payroll survey is the one
that tells the true story--they say the economy has lost more than 2
million jobs since George Bush took office, making him the first
President since Herbert Hoover--and I said this before and I mean no
disrespect--and the Great Depression to preside over a net job loss
during his term in office. Again, I mean no personal disrespect, but
the facts ought to be presented accurately.
These are the facts: For every minute George Bush has been President,
nearly two Americans have lost their private sector jobs. I know it is
difficult for our friends on the other side. The Republicans have an
impossible task of trying to convince Americans the economy is better
now than it was before George Bush became President. It is a difficult
task. They should try to refrain from saying things everyone knows are
just plain untrue.
On Monday, I attended a symposium in New York City on the life and
career of our dear friend and former colleague Pat Moynihan. As
conservative columnist George Will noted, Pat was fond of saying:
Everybody is entitled to their own opinions but not their own facts. I
wonder if Members on the other side of the aisle agree with me.
I ask unanimous consent to have printed in the Record a statement
Alan Greenspan and others have attested to. That statement refers to
the household survey versus the payroll survey and it quotes several
people. One is Alan Greenspan, who said at the House Budget Committee
hearing on February 11, 2004: Everything we have looked at suggests
that the payroll data is what has to be followed. Additionally, the
establishment survey, the payroll survey, better reflects the state of
labor markets. That is from CBO, the Congressional Budget Office. That
was done in a report called the Budget and the Economic Outlook, an
update, August 2003.
Another statement that the payroll survey is the best indicator of
current job trends was made by Kathleen Utgoff, the Commissioner of the
Bureau of Labor Statistics--which is the organization that conducts the
surveys--at a hearing before the Joint Economic Committee, March of
2004. One final thing is the fact that the 2004 economic report of the
President uses the payroll survey to assess the state of the labor
market. I do not think there can be any doubt about which one is the
more reliable one to use.
There being no objection, the material was ordered to be printed in
the Record, as follows:
``Everything we've looked at suggests that it's the payroll
data . . . which you have to follow.''--Alan Greenspan,
testifying before a House Budget Committee Hearing, February
11th, 2004.
``The establishment [payroll] survey better reflects the
state of labor markets.''--Congressional Budget Office, The
Budget and Economic Outlook: An Update, August 2003, page 34.
``The payroll survey is the best indicator of current job
trends.''--Kathleen Utgoff, Commissioner of the Bureau of
Labor Statistics, which conducts the surveys, at a hearing
before the Joint Economic Committee, March 2004.
The 2004 Economic Report of the President uses the payroll
survey to assess the state of the labor market.
Emergency Contraception
Mr. LAUTENBERG. I would like to discuss another subject, if I might,
and that is something that came about this week that was discussed in
my State's largest newspapers about the administration's interference
in the FDA's proposed approval of emergency contraception for over-the-
counter sales. I believe the administration's activity is another
example of their desire to establish a ``maleogarchy'' in this country.
``Maleogarchy'' is a phrase I coined. It talks about men making all the
decisions that affect not only themselves but the female population of
the country.
We saw that most notably on November 6, 2003, in the Washington Post
[[Page S3443]]
when a group of men was standing with the President of the United
States gleefully talking when the President signed a bill that
restricted a woman's choice, even though it was made ostensibly with
her doctor and in the best interest of her health. Yet again President
Bush and other male politicians want to take away a woman's right to
make decisions about her health and her body.
These are the facts: On December 16, 2003, two separate FDA advisory
committees overwhelmingly recommended the emergency contraception known
as plan B be made available to women over the counter. The FDA almost
always follows the advice of its scientific advisory committees. But
then a funny thing got in the way of the science. I will call it
rightwing politics. Extremists, anti-choice groups, and their allies in
Congress objected to the FDA advisory committee decision. They made
their opposition loud and clear. Once again I say, these decisions are
made by the FDA after their scientific advisory committees come up with
their recommendations. Science first and then the decision.
The effect of this opposition? FDA suddenly announced, after they
were ready to clear it, that it was delaying any decision on the
approval of the drug. This is no coincidence. The Bush administration
is caving to political pressure from ultraconservatives and risking the
credibility of FDA's scientific panels.
For an understanding of what has taken place, it is hard to come up
with a conclusion that this emergency contraception ought not to be
available. These actions they took beg the question about who is
running the FDA, scientists or politicians? I think the answer is
clear. Science has taken a backseat to politics in this administration.
It is disgraceful. Using the FDA to promote a political agenda not only
threatens women's health but everyone's health. It threatens the health
of our society.
Do we want to resemble what we see in places such as Iraq, where
women are subjected to second-class treatment? I was once in Saudi
Arabia, in the first Gulf war. I was in the airport. There was a fellow
there wearing a turban and a long dress-type suit. At his feet was what
I thought was a bag of rags, black rags, because it just looked tumbled
together and there it was. The man was standing there smoking a
cigarette. But when he moved to another location, the bag of rags
turned out to be a lady, small in stature, wearing black over her face
and her body, and she followed this man, and as soon as he stopped
walking, she sat down again, curled herself up like a bag, covered
herself over with the black cloth. I will never forget that. This
disdain for a female, for the rights of women is so outrageous that
every woman has to cover her face--whether she wants to or not, by the
way. That's not an option. It's ``you must.''
In countries such as Saudi Arabia they have morals police who chase
these women, embarrass them, and who will hit them. We in this country
believe that, regardless of gender, people are appropriately treated as
equals.
We see a dangerous trend by this administration. We see the
corruption of science. In some ways they are adopting the scientific
standards we saw in Afghanistan, allowing religious fundamentalists to
trump legitimate science. The Bush administration's intrusions into
scientific decisionmaking threaten the future credibility of American
science.
Should high school science teachers tell students that the
discoveries in their textbooks become null and void if rightwing
politicians decide they don't like the results? No, that cannot happen.
We are in the 21st century, but in many ways we are still fighting the
Scopes trial. In fact, we have seen far right politicians in many
States, and even here in Congress, continue to challenge the teaching
of evolution in schools. What is next? Will the flat Earth theory make
a comeback?
Aside from serious scientific concerns, there are grave consequences
for women who are denied this drug. Each year, approximately 25,000
women in the United States become pregnant as a result of rape. An
estimated 22,000 of these pregnancies could be prevented if these
victims have access to emergency contraception. Increased use of
emergency contraception could reduce the number of unintended
pregnancies and abortions by half. Reducing abortions is something we
would all like to see, but it is not our choice. It is the choice, it
should be the choice, of the woman, her conscience, with her doctor and
perhaps her entire family. But the choice is not ours to make. It is
not for the ``maleogarchy'' to make those decisions.
The FDA advisory committee agreed that emergency contraception meets
all of the standards for an over-the-counter drug: It is safe; it is
effective; it is simple to use; it is not associated with any serious
or harmful side effects; and it is not dangerous to women with
particular medical conditions. Leading medical organizations including
the American College of Obstetricians and Gynecologists, Society for
Adolescent Medicine, and the American Academy of Pediatrics all support
over-the-counter access to emergency contraception. It is time for the
administration to stop playing games with women's health and the
integrity of American science. The FDA should be allowed to act, free
of political interference.
Mr. President, I ask unanimous consent that an article on the
administration's action on emergency contraception from our States
largest paper, the Newark Star-Ledger, be printed in the Record, and I
yield the floor.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From the Newark Star-Ledger, Mar. 29, 2004]
FDA's Indecision on `Morning After' Pill Stirs Concern
(By Robert Cohen)
Washington.--A scientific advisory panel's overwhelming
vote three months ago endorsing over-the-counter sales of the
``morning after'' pill left family planning groups confident
of the Food and Drug Administration's approval.
But that was before the FDA unexpectedly delayed its
decision after 49 conservative members of Congress wrote
President Bush objecting to the panel's conclusion and urging
that sales of the emergency contraceptive be restricted to
prescription holders.
The FDA's action last month has raised fears among the
pill's proponents that the panel's scientific and public
health findings will be trumped by election-year politics.
``For some members of the Bush administration and the
president's political base, this product being available
without a prescription to young people files in the face of
their message, which is abstinence or else. At this point,
we're very concerned that politics was involved,'' said
Kristen Moore of the Reproductive Health Technologies
Project, a group that promotes contraception.
But FDA officials said the delay has nothing to do with
politics, and that a final decision will be made by May.
Susan Cruzan, an FDA spokeswoman, said the agency first wants
to review data on use of the contraceptive by teenagers.
``The FDA bases its decisions on science,'' she said.
This is not the first time the Bush administration has been
accused of politicizing science. Last month, 60 leading
scientists, including 12 Nobel laureates, accused the
administration of undermining the government's scientific
advisory system by distorting and suppressing data to meet
its policy goals.
Critics of the emergency contraceptive--mostly religious
conservatives and anti-abortion groups--counter the claims of
politics by accusing liberal, pro-abortion organizations of
ignoring health concerns to foster their own agenda.
``When the supporters argue politics, they are simply
trying to divert attention from the real risks of making this
product readily available,'' said Wendy Wright, a policy
director for Concerned Women for America, a conservative
advocacy group dedicated to promoting biblical values.
``We don't know how this affects adolescents, who are the
target market,'' she said.
Wright's group, along with the Catholic Medical
Association, the American Life League and others, argue that
making emergency contraceptives as easy to purchase as
aspiring will increase sexual promiscuity among adolescents
and cause the spread of sexually transmitted diseases.
Morning-after pills have been sold by prescription in the
United States since 1998, and contain higher doses of the
hormones used in regular birth control pills. The emergency
contraceptives are considered effective in preventing
pregnancy up to 72 hours after sex, but work best if taken in
the first 24 hours.
Barr Laboratories of Woodcliff Lake recently purchased the
rights to the contraceptive, known as Plan B, from the
privately held Woman's Capital Corp. Barr holds the pending
FDA application to sell its product without a prescription.
An FDA advisory panel voted 23-4 in December to recommend
the over-the-counter sale of Plan B, finding it to be a safe
and effective way to prevent unwanted pregnancies and reduce
the number of abortions. The FDA normally follows the advice
of its advisory committees.
[[Page S3444]]
But in January, 49 members of the House, led by Rep. David
Weldon (F-Fla), sent their letter to President Bush.
``We are very concerned that no data is available to
suggest what impact this decision will have on the sexual
behavior of adolescents and the subsequent impact on
adolescent sexual health,'' the letter said. ``We are
concerned that adolescent exposure to sexually transmitted
infection will increase. This availability may ultimately
result in significant increases in cancer, infertility, and
HIV/AIDS.''
The lawmakers are among the supporters of Bush's policy
stressing abstinence rather than birth control and sex
education. The president has proposed doubling the funding
next year to $270 million for ``abstinence only'' programs
for teens.
``Abstinence for young people is the only certain way to
avoid sexually transmitted diseases,'' Bush said in his State
of the Union address in January.
Carol Cox, a spokeswoman for Barr Labs, said the company
has submitted the information sought by the FDA and will
``continue to work with the agency.'' Cox said the company
``does not view the delay as a positive development,'' but
remains hopeful.
``We believe this product meets criteria of over-the-
counter status,'' she said.
James Trussell, director of Princeton University's Office
of Population Research and a member of the FDA advisory
panel, said the studies sought by the FDA were thoroughly
reviewed by the committee.
``The studies find that easy availability of emergency
contraception does not promote risk taking, does not
discourage condom use or use of regular contraception. This
product should go over-the-counter because it will reduce
unintended pregnancies,'' Trussell said.
``If the FDA does not approve Plan B to go over-the-
counter, the decision will not have been based on the science
because the science says the drug is safe and effective to be
sold without a prescription,'' he said.
Sarah Brown, director of the National Campaign to Prevent
Teen Pregnancy, said pregnancy rates among adolescents in the
United States have been dropping but are still the highest in
the industrialized world. She said multiple strategies
involving ``less sex and more contraception'' are needed.
``The government should approve the over-the-counter
availability of the emergency contraceptives,'' Brown said.
``It probably will make some contribution to reduce teen
pregnancies. Will it eliminate it or dramatically change
adolescent sexual behavior? I doubt it.''
The PRESIDING OFFICER. The Senator from Illinois.
Escalating Gasoline Prices
Mr. DURBIN. Mr. President, I thank my colleague from New Jersey for
his leadership in the presentation he just made to the Senate. I would
like at this time to address an issue that is extremely topical in
Illinois and across the Nation, more so in some States than others, but
it is the escalating gasoline prices people are facing.
Global crude oil prices are as high as they have been in a year.
Domestically, retail gasoline prices are as high as they ever were,
with the average price of gasoline $1.738, higher than a year ago. In
Illinois, the current sale price of gas is $1.756 cents, which is
higher than the current national average, higher than a month ago, and
4 cents higher than the average a year ago.
Gasoline prices affect Americans in the pocketbook. On the average,
the cost of gasoline is about half of a family's transportation
expenses. We love our cars, we love our trucks, we are in them a lot,
and when gasoline prices go up, we pay more. The low-income families
are hit the hardest by high transportation costs. The poorest 20
percent of American households, those earning less than $13,908 after
taxes per year, spend 40 percent of their take-home pay on
transportation.
There are many factors that have led to these high prices, some of
them on the supply side and some on the demand side. U.S. crude oil
inventories hit a 28-year low in January of this year. OPEC has been
very prudent in putting oil on the market. I will get to the most
current announcement on OPEC policy in a few minutes. In addition,
refinery capacity in the United States has been down for years.
In the United States, cars, SUVs, pickup trucks, and minivans account
for 40 percent of oil consumption, and the transportation sector itself
accounts for 60 percent overall. Almost nothing has been done to curb
this demand. The best way to address rising gasoline prices is to curb
our Nation's insatiable thirst for guzzling gas.
I am leading the fight in the Senate to try to lessen overall demand
for gas by improving the fuel efficiency of cars and light trucks. Last
year, I offered an amendment to the energy bill which would have
increased the Corporate Average Fuel Economy--or CAFE--law's standard
for cars and SUVs to 40 miles a gallon by the year 2015, and the
standard for trucks to 27.5 gallons in the same year.
I also introduced legislation that would discourage the building of
more SUVs that achieve less than 15 miles per gallon, and to address
the tax credit currently given to these SUVs, these gas guzzlers, and
instead create a tax credit for consumers who purchase more fuel-
efficient cars.
The Bush administration finalized regulations for SUVs and pickup
trucks that would save at the most 20 billion gallons by 2015. This is
one-sixth of the savings that would have occurred under the proposal I
am offering--one-sixth. What I offered would have saved 123 billion
gallons of gasoline by the year 2015--123 billion by reducing demand.
I urged my colleagues at the time to read the writing on the wall and
realize if we didn't reduce the demand for gasoline for cars and
trucks, we would not only have skyrocketing gasoline prices but even
more pollution.
The New York Times editorial, Monday, March 22, 2004:
A much better way to strengthen America's leverage . . . is
for the United States to limit its own consumption of energy
. . . [T]he most straightforward [way] is to raise fuel
economy standards by significant amounts. This is exactly
what the country did after the oil shocks of the 1970's,
resulting in huge savings in imported oil.
Thanks to the Corporate Average Fuel Economy, CAFE, oil consumption
is about 2.8 million barrels per day lower than it otherwise would be.
Studies have shown consumers can save as much as $2,000 over the
lifetime of a car from higher fuel efficiency, even accounting for the
cost of new vehicle technology.
Raising fuel economy standards to 40 miles per gallon would save
consumers a cumulative $45.8 billion within about 10 years.
Unfortunately, since peaking at 22.1 miles per gallon in 1987 and
1998, average fuel economy declined nearly 8 percent to 20.4 in 2001,
lower than it has been at any time since 1980.
Consider that for a moment. Instead of having more fuel efficiency
and more fuel economy and less demand for foreign oil, our cars and
trucks are less efficient burning gasoline, cause more pollution, and
increase our dependence on foreign oil.
The Energy bill brought to us by the Bush administration didn't
include any provision whatsoever to improve efficiency.
I will add, in all honesty and candor, that the automobile
manufacturers in the United States and their unions also oppose
increasing the fuel efficiency in cars. I think their reasoning is
wrong. I think their excuses are lame. I think they are so shortsighted
to believe that we can continue to build the most fuel-inefficient cars
and trucks in the world and not run into the same problem we face today
of increasing costs for fuel. As our demand increases, we can't produce
enough fuel on our own. We import more and become more dependent on
foreign fuel and, frankly, enslaved to OPEC. In a minute I will tell
you what that enslaved position resulted in.
I say to my colleagues and many who have come to the floor to talk
about gasoline prices, go back and check the Congressional Record. How
did you vote when it came to making cars and trucks more fuel
efficient? Sadly, very few of my colleagues joined me. It did not win a
majority vote. I think those who complain today ought to take an
inventory of their own voting record on this issue.
There are many things we should do. If we don't start fuel
conservation and fuel efficiency and fuel economy, frankly, we will
continue to be captives of the oil cartel. We will continue to watch
these prices rise at the pump with very little we can do in response.
The next time we debate energy policy, I will be offering this
amendment again. I hope we will do the right thing.
In the meantime, what do we do about the current prices? It is
interesting what some have said when it comes to the current prices.
During the Republican primary debate in Manchester, NH, in the year
2000, in January, then-Governor Bush of Texas said:
What I think the President ought to do is he ought to get
on the phone with the OPEC cartel and say we expect you to
open your
[[Page S3445]]
spigots. One reason why the price is so high is because
the price of crude oil has been driven up. OPEC has gotten
its supply act together and it is driving the price like
it did in the past, and the President of the United States
must jawbone OPEC members to lower the price.
Faced with these skyrocketing gasoline prices, the obvious question
is, Did President Bush do what candidate Bush suggested? The answer is
no.
Listen to what the Secretary of Energy, Spencer Abraham, had to say
on March 24, just a few days ago, when he was asked about whether the
administration should put pressure on OPEC not to cut the supply of oil
and raise prices in America.
I quote the Secretary of Energy, Spencer Abraham, from the Washington
Times.
Abraham said the administration would not temporarily stop
filling the Strategic Petroleum Reserve to help lower oil
prices and it would not publicly call on OPEC to roll back
production cuts scheduled for April 1st.
Here are the words of Secretary Abraham:
We've . . . made clear we are not going to beg them for
oil.
What it means is when candidate Bush went to Manchester, NH, and said
we need a forceful President who will stand up to OPEC to defend
businesses and families and individuals across America who are paying
the price of higher gasoline prices, candidate Bush when he became
President Bush suffered severe political amnesia. He forgot what he
said. Look where we are today.
The unfortunate reality is that we have a press release today from
Vienna, Austria, from Reuters, which said:
'`OPEC agreed Wednesday to endorse tighter curbs on oil
production, ignoring concerns in some countries about crude
oil prices near their highest level in 13 years,'' ministers
said.
``The Organization of Petroleum Exporting Countries decided
to implement a deal cutting 1 million barrels a day from
April 1,'' Iranian Oil Minister Bijan Zanganeh said. Libyian
Oil Minister Fethi bin Chetwane also said that the cartel
formally agreed Wednesday to implement the cuts, which were
first proposed in Algiers in February.
Benchmark U.S. crude traded up 25 cents to $36.50 a barrel with the
New York Mercantile Exchange's gasoline contracts sitting at an all-
time high of $1.177 a gallon.
What is happening? Because this administration refuses to confront
OPEC, because as Secretary of Energy Abraham said, we are not going to
beg for oil, because President Bush forgot what he promised when he ran
for President 4 years ago, American families and businesses will face
oil prices at record high and historic levels.
What has been the response of the Bush administration to this
reality? The response was to prepare a campaign ad attacking John
Kerry. The campaign ad just started to run. It is an ad which
criticizes Senator John Kerry, the purported Democratic nominee for
President of United States, for supporting a 50-cent-a-gallon gas tax,
saying that the tax increase will cause the average consumer to pay
$657 more a year, and that he supported high gasoline taxes 11 times.
This morning, the Washington Post decided to look at the charges, the
negative ad, that is being run against John Kerry. Here is what they
had to say:
Unlike three previous negative ads, this spot softens its
charges with a mocking tone and funny footage against the
``wacky'' Kerry.
This is from the Washington Post.
But it unfairly presents a gas-tax hike as if it were the
Senator's current position, when most of the examples are a
decade old. Kerry voted in 1993 for the Clinton economic
package, which included a 4.3 cent increase in the gas tax,
and is widely credited with boosting the economy. He also
opposed several Republican efforts to repeal the tax.
The article goes on to say, analyzing the Bush negative ad:
Kerry spoke in favor of a 50-cent hike in 1994 and as a
possible way of cutting the deficit, but no such proposal
came to a vote and he later changed his mind. His only recent
vote was in 2000, when Kerry opposed the GOP effort to
suspend 18 cents in gas taxes for five months.
The article goes on to say, analyzing the Bush attack ad:
The ad fails to mention that the President, who promised in
2000 to trim gas taxes, has never proposed such a cut. Bush
campaign manager Ken Mehlman said Kerry last year opposed
Bush's energy bill, designed to boost oil in part by allowing
drilling in Alaska. Kerry's spokeswoman Stephanie Cutter
called the measure ``a giveaway'' to the oil companies and a
Republican-controlled Congress killed it. The Kerry camp
dug out a quote in which Bush's top economic adviser [the
ever-present and almost infamous] N. Gregory Mankiw,
backed a 50-cent gas tax in 1999.
You may remember Mr. Mankiw. Mr. Mankiw was the man, the President's
economic adviser, who sent the economic report to Congress. In it Mr.
Mankiw, with his own insight as the top economist of the Bush
administration, said that the outsourcing of jobs to India and China
was a good thing. Now we were trading in new things like call centers.
It was a good thing--Mankiw's own words.
So Mr. Mankiw, top economic adviser to George Bush, it turns out, was
supporting a 50-cent increase in the gasoline tax in 1999. Interesting.
And President Bush and his campaign continue to run ads attacking John
Kerry and saying that the real reason for the gasoline price increases
that we are seeing across America is John Kerry voting for a 4.3-cent
gasoline tax increase 11 years ago.
Is that as good as they can get? Is that the best they can come up
with? What they are ignoring is the obvious. They are ignoring the fact
that this President has the power, as President of the United States,
to put the pressure on OPEC, and refuses to do it. Why? Why is this
President backing away? Is it this oil connection with the President
and Vice President Cheney? Is it the fact that some of the OPEC cartel
countries have been some of the favorites of this administration for
political and other reasons?
What is it all about? Why wouldn't this President, facing a gasoline
crisis in America today, do what he said he would do when he ran for
office in the year 2000? It is an answer I cannot come up with. But I
will tell you, the American people will come up with it. They
understand what this is all about.
The President can promise tiny little tax cuts for working families
and massive tax cuts for the wealthy, and then turn around and fail to
show leadership on gasoline prices, and watch whatever benefit those
small tax cuts meant to lower-income families disappear.
The Bush administration's failed policies have created record high
prices for gasoline. Americans are paying 12 percent more for gasoline
since former oil industry executives President Bush and Vice President
Cheney took office on the pledge that their ties to the oil industry
would lead to lower gas prices.
Well, it did not work, just as the President's economic policy did
not work. Here we have a President who, in a matter of 3 years and a
few months, has lost more jobs in America than any President in the
last 70 years, and that includes Republicans and Democrats alike. Tax
cuts to the wealthy did not create jobs. And the President's cozy
relationship with the oil companies and the oil sector certainly has
not kept gasoline prices under control. The President refuses to
confront OPEC and tell them they have to stop taking advantage of
American families and businesses.
Secretary Abraham: ``We won't beg for oil.''
Well, I do not think you have to beg. Many of these countries in the
Middle East, as part of the OPEC cartel, depend on the United States
for an important and valuable market. They depend on the United States
for many security items. They depend on the United States and its
friendship and alliance when things get tough, such as the instance in
Kuwait and the Persian Gulf crisis.
Why wouldn't this President go to the leaders in OPEC and tell them
what they were doing to America and the American economy, gripped with
this so-called jobless recovery. Frankly, a jobless recovery is no
recovery at all. We all know that. Facing a jobless recovery, this
President will not confront OPEC and tell them: Keep gasoline prices
low; increase your exports of crude oil so we do not run up the cost of
business for small and large businesses alike, and run up the cost of
living for average working families.
Economist David Rosenberg told CNN's Lou Dobbs:
[P]ain at the pump has wiped out more than $20 billion of
the coming $40 billion in tax refund checks.
How did he come to that conclusion? On January 5, American consumers
[[Page S3446]]
paid $1.51 for an average gallon of gas. As of today, less than 3
months later, they are paying $1.75 a gallon--a 24-cent increase since
January.
According to the Wall Street Journal:
[E]very penny increase in a gallon of gas costs consumers
$1 billion a year.
So if prices remain high, that means a $24 billion gas tax hike has
been placed on the American people, for the failure of the Bush
administration to confront the OPEC cartel, as he promised to do.
But that is not all.
Nationwide gas prices have risen 12 percent since the year 2000 and
are expected to skyrocket upwards to $1.83 a gallon this summer when
gasoline prices usually peak--a 17-percent increase in gasoline prices
since President Bush took office.
So what is wrong with this picture? When it comes to employment,
there is nothing but bad news in statistics. The unemployment rates
continue to go up. When it comes to gasoline prices and its cost to
families and businesses, more bad news from the Bush administration: a
17-percent anticipated increase by this summer.
Guy Caruso, the administrator of the Energy Information
Administration, told the Senate Energy and Natural Resources Committee
that an average family will spend about $1,700 for gasoline in 2004. At
today's gas prices, this means the average family will spend over $300
more for gas than they would have if prices were at the level they were
the week President George W. Bush took office.
As I said, candidate Bush knew what to do. President Bush refused to
do it. Candidate Bush said: Confront the OPEC cartel. President Bush
said: We are not going to dirty our hands by ``begging for oil.''
Because the Bush administration did not follow its own advice from
2000, OPEC has decided to pursue additional cuts, leaving American
consumers more susceptible to higher gas prices.
Let me say, gas prices have been an issue for the Vice President,
too. On October 9, 1986--since President Bush's campaign is dredging up
history when it comes to John Kerry--as a Member of the House of
Representatives, Dick Cheney, our Vice President, introduced a bill to
establish a $24-per-barrel price floor on imported crude oil--a
mandatory minimum price, indexed to inflation, that today would have
reached as high as $36.12 a gallon. If Vice President Cheney's bill had
passed in 1986, consumers would have paid over $1.2 trillion in
increased gas prices since that year, with $600 billion going to oil
companies.
In 2001, as Vice President, former Halliburton CEO Dick Cheney led an
energy task force that met with energy industry officials in closed
meetings to write the energy bill of this administration. The meetings
led to the administration's energy policy, which has failed on the
Senate floor. The administration has refused to release detailed
records of the meetings to the General Accounting Office, the
investigative branch of Congress. The secrecy surrounding the meetings
is so unusual and unprecedented that the Supreme Court on April 27--
just a few weeks from now--will hear arguments that the records for the
meetings should be opened.
Republicans have criticized John Kerry for supporting gas taxes in
his Senate career, but, as I have said, these charges are grossly
exaggerated and a distortion. This, frankly, is what I am afraid we can
expect more of during this campaign. But I think the American people
know, while Republicans make a lot of noise about opposing a gas tax,
the record tells a different story.
Ronald Reagan said of the gas tax:
The cost to the average motorist will be small, but the
benefit to our transportation system will be immense.
Republican leaders in the House have pushed for a gas tax hike this
year. In fact, House Transportation and Infrastructure Chairman Don
Young of Alaska proposed a 5.4-cent-per-gallon gas increase this
Congress. And President Bush, who promised to cut the gas tax as a
candidate, has never acted to do so once in office.
So I think what faces America is clear. We need leadership in the
White House that is not afraid to confront OPEC. We need a President
who is not afraid to get on the phone, through his Secretary of State,
Secretary of Energy, and say to those in the OPEC cartel that they
cannot unilaterally put us in a position where our economy--struggling
to come out of recession, struggling to recover, struggling to create
jobs--is going to end up hat in hand, in a situation where we have no
recourse for families and for businesses.
But the Bush administration failed. They failed to do what the
President should have done in showing leadership on this issue. The
President said one thing in the campaign and has done another thing now
in the White House.
American families are going to have to face that cost. When you look
at this record, sadly, it is not too much of a surprise. Here we are
faced with a struggling economy and an administration which, despite
losing more jobs than any President in 7 years, refuses to support a
payout of unemployment compensation to the workers and families who
have lost their jobs, an administration which understands that more
workers are working longer hours to make ends meet and comes up with a
proposal to eliminate overtime pay for 8 million American workers.
We created the overtime law in 1938. Since we said that after you
work 40 hours, you are going to be paid more under the law, every
administration that has addressed this law has increased the
eligibility of American workers until this administration. With the
Bush administration, for the first time in history, a President has
proposed cutting overtime pay for 8 million workers in America.
Think about that. If he is successful in doing that, it means that
the workers who are going to work today will have to work longer hours
just to keep up with the lost pay from this Bush administration policy.
So who are these workers? They are policemen, firefighters, nurses, and
people, frankly, who we count on every single day. This is an
administration which won't provide unemployment compensation despite
losing millions of jobs since the President was elected, an
administration which cuts overtime pay for some 8 million workers, and
an administration which has decided as a matter of policy it will not
support an increase in the minimum wage for workers in America.
We are in the midst of debating the welfare bill. I voted for welfare
reform. I hope I can vote for this bill. There are many positive
aspects to it. But if we want to keep people off welfare, if we want to
reward work and reward the right decisions, then we certainly should
give fair and adequate compensation to those who struggle. Can you
think of what life would be like if you faced $5.15 an hour, a little
over $10,000 a year, as your total income, and then add on to that a
second job, if you could get it, that has you working 16 hours a day
and doubles your income to $20,000 or $22,000 a year?
These proud and hard-working people get up and go to work every
single day. They are the visible Americans who make the beds in our
hotel rooms, bus our tables in the restaurants, wash the dishes in back
of the kitchen, deal with tending our children in daycare facilities.
We have said, because of the refusal of this administration and
Congress to increase the minimum wage, that we have so little respect
for their work ethic we will not allow the minimum wage to be increased
in America.
The insensitivity of this administration to working families and to
the sad state of the economy has been documented again, not just with
unemployment compensation, not just with overtime pay, not just with
its resistance to increasing the minimum wage, but with the refusal of
this President to keep his campaign promise from the year 2000 and to
put pressure on OPEC not to cut the production of oil, forcing an
increase in gasoline prices across America.
We need more compassion from this administration. We need more of a
connection between this administration and working families across
America. We need a change.
Mr. ENZI. Mr. President, I rise to speak about an amendment I wish to
offer to the bill currently under consideration to reauthorize the
Temporary Assistance for Needy Families program. This program is one of
the largest Federal programs ever designed to help families reach self
sufficiency. I believe this amendment is a strong addition to the
current bill, and one that
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this body should pass. I thank my friend and colleague from Iowa, the
chairman of the Finance Committee, for his hard work in preparing this
bill for floor consideration and for making important improvements to
the 1996 welfare reauthorization. The 1996 reauthorization is one of
the greatest success stories of the recent past. Even now, it continues
to produce positive results far beyond what many thought was possible.
Now it only makes sense for us to pass this legislation to continue the
reforms we began 8 years ago.
Mr. President, as I mentioned, the key principle of this welfare
reauthorization is self-sufficiency. As this body considered welfare
reform in 1996 we found that families could end their dependence on
Federal assistance if we provided the incentives to help them find jobs
and start providing for themselves. It was the most important change we
could have ever made. In response, families went out and found good
jobs that provided them with the resources they needed to make ends
meet today and prepare for their future needs.
Even today, the results of that effort continue to speak for
themselves. As my colleague from Pennsylvania has pointed out, child
poverty has declined significantly since 1996. Families receiving
welfare assistance have found a renewed sense of confidence and self
worth by meeting life on their own terms. Their newfound jobs have
given them a sense of security many have never had before.
We congratulate all those who have been able to work themselves off
the welfare rolls and we encourage those who are trying to do the same
not to be discouraged. That is why this legislation is so important. It
enables us to continue that piece of the reform we started, to get
people into work and on to self-sufficiency.
I don't think there is any more vital aspect of self-sufficiency than
making sure that these families know how to budget and manage their
money wisely so they can maintain their financial independence and work
toward financial security. That calls for education in financial
literacy.
When I served as mayor of Gillette, WY, I saw firsthand the
effectiveness of helping individuals understand the importance of
financial planning. This is a skill that is essential to self-
sufficiency, and it should be a part of the welfare assistance program.
My amendment would permit welfare recipients to participate in a
limited amount of financial literacy training that would allow them to
learn about personal finance management, credit counseling, budgeting,
and debt management. This important course work and study would then
count toward the work requirement under the Financial bill. As my
colleagues are aware, the Finance bill separates the permissible work
hour activities into two groups: core work and work preparation
activities, and allowable activities. Both are required for a recipient
to meet the work hour requirement. My amendment would add financial
literacy training as an allowable activity.
Financial literacy and education is an essential tool that must be
mastered to fully participate in today's society. Only an educated
individual consumer will be able to fully unlock the financial markets
available to them. A basic understanding of the credit process and
managing personal finances will prepare consumers and their families
for making major financial purchases like a home, saving for college
and planning for retirement. All of these are part of achieving self-
sufficiency because they require people to create a plan that will
enable them to meet short term needs and still reach long term goals.
It is essential that welfare recipients be given an opportunity to
receive this training and that states have an incentive to provide it.
The Federal Government operates several financial literacy and
education information programs designed to help individuals make smart
decisions about their finances. It is my hope that by including
financial literacy training in the welfare reauthorization we will
improve and build upon the growing Federal recognition of the
importance of this training.
I thank the Chair.
Mr. JOHNSON. Mr. President, our support of childcare assistance is
essential to ensuring the health and safety of children in working
families. Without greater support for childcare, parents of young
children may be forced to choose cheaper, poor quality care for their
children or fail to provide it entirely. These families need to know
their children are cared for while the parents do their part to attain
self-sufficiency and to provide for their families.
At 73 percent, my State of South Dakota has the highest percentage of
children six years of age and younger with both parents working and the
highest number of children under the age of 6 in paid daycare, at 47
percent. This is almost double the national average of 24 percent. On
average, 1 year of childcare costs families in South Dakota $4,000.
This estimate is close to a semester of college at a State institution.
A study done by the South Dakota Coalition for Children found that
parents seek a safe, nurturing environment for their children when they
are under someone else's care. As more and more families need both
parents to work in order to make ends meet, safe reliable day care has
become essential to the peace of mind of working families in South
Dakota and across the country. Without the increased funding for
childcare that the Snowe-Dodd amendment provides, more parents will be
forced to seek childcare that meets their budgets rather than their
hopes for the care of their children. In some cases, families may go
without childcare all together.
Without the increase in childcare funding provided by this amendment,
hundreds of thousands of eligible children will lose childcare
assistance over the next 5 years. At a time when only one out of seven
eligible children is currently served, I urge my colleagues to
strengthen our commitment to children in working families by supporting
the Snowe amendment and providing additional resources to increase the
number of children able to receive quality care.
Ms. MIKULSKI. Mr. President, I am proud to cosponsor the Boxer/
Kennedy amendment to raise the minimum wage for the first time in seven
years. This increase is long overdue. The last time Congress increased
the minimum wage was in 1997. Yet inflation has already wiped out the
real value of that increase. For working people, a full-time job should
not mean full-time poverty.
I thought in this country, the best social program was a job. Yet
minimum wage jobs aren't paying enough to keep families out of poverty.
There are more than 100,000 Marylanders earning minimum wage. Most of
them can't even afford a two-bedroom apartment. At $5.15 per hour,
minimum wage workers working 40 hours per week, 52 weeks per year, earn
an annual salary of only $10,700. That's $5,000 below the national
poverty line for a family of three.
Every day the minimum wage is not increased, workers fall farther and
farther behind. Throughout Maryland, I keep hearing about families
turning to soup kitchens and local charities for help. They are forced
to do this because the economy is bad, and their jobs simply don't pay
them enough to stay afloat.
An increase in the minimum wage equals an increase in the standard of
living for working Americans. This amendment would raise the minimum
wage from $5.15 and hour to $7.00 an hour. It would help nearly 7
million working Americans. It helps low wage workers like the home
health aides who take care of our elderly parents and the child care
workers who take care of our children. It helps farm workers, security
guards and housekeepers.
Right now we are debating the reauthorization of Welfare Reform. I
voted for Welfare Reform in 1996 because I agree that the best way to
help lift someone out of poverty is to help him or her get a job. But
it doesn't help anyone to get a job that doesn't pay enough to stay off
of public assistance. While we're working to move our most vulnerable
citizens from welfare to work, we need to make sure those jobs pay a
livable wage.
I urge my colleagues to vote for this amendment.
Mr. SARBANES. Mr. President, I rise in support of the Boxer-Kennedy
amendment to raise the minimum wage. A fair increase is long overdue
and the Congress must act to set a
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minimum wage that accurately reflects current economic conditions.
The majority has decried this amendment as non-germane and accused
the minority of holding up the underlying legislation. While the
amendment may not be germane in a procedural sense, it is certainly
relevant, it is certainly appropriate, and it deserves an up or down
vote.
Indeed, as my able colleague Senator Kennedy mentioned earlier on the
floor, the Secretary of Health and Human Services, as recently as March
of 2002, has acknowledged that moving people to jobs that pay at least
the minimum wage is the centerpiece of TANF. Minimum wage jobs are the
centerpiece of TANF.
But in order for people to move off these rolls and still support
their families, such jobs must provide a livable wage. Mr. President,
if the true goal of this legislation--as has been stated--is to reduce
the number of individuals enrolled in our Nation's welfare system, this
amendment would directly serve to accomplish that goal.
To achieve self-sufficiency, a working family needs more. By working
40 hours a week, 52 weeks a year, an employee will earn $10,700 at the
current minimum wage. For a family of three, that represents an income
that falls $5,000 below the poverty line.
And this is a pervasive trend. The U.S. Census Bureau reported that
in 2002 the number of working poor in the United States stood at
8,954,000. This is unacceptable. If Americans are willing and able to
work full time jobs, they should be able to provide for their family.
At the current minimum wage, this situation is not likely to improve
any time soon. According to the Congressional Research Service, the
minimum wage today is at its lowest level in terms of purchasing power
since the 1940s. And each day we fail to act, inflation continues to
erode this purchasing power. As this happens, workers earning the
minimum wage will only become more and more dependent on the government
assistance to make ends meet.
If enacted, at its full implementation, the Kennedy amendment would
increase this wage to $7 an hour. This would provide an increase in the
incomes of minimum wage earners by $3,800 a year, which represents a
positive step toward purchasing power that comports with modern day
needs and prices.
The other side will argue that increasing the minimum wage will hurt
business and stunt job growth. They argue that we need to give more tax
cuts to the wealthiest among us, run large and growing Federal
deficits, and hope that things improve.
Mr. President, this has been our policy for over three years since
this Administration took office. In that time, we have seen the largest
job loss in our Nation's history. We have seen Federal surpluses erased
in favor of record deficits. And we have been told time and time again
by the Administration that things will turn around soon.
However, today's release of state-level job growth data by the Bureau
of Labor Statistics flies in the face of the Administration's
assertions in this regard. These statistics indicate that 49 states
failed to meet the Bush Administration's projections for job creation
in the month of February 2004. As of February 2004, 35 states have
failed to get back to their pre-recession employment levels.
Furthermore, 49 states have not created enough jobs to keep up with the
natural growth in the number of potential workers, as job growth has
lagged the growth in working-age population since March 2001. As for
the unemployed, 43 states have higher unemployment rates than when the
recession began. As a Nation, the cumulative job growth shortfall is
over two million jobs since July 2003, when the first of this
Administration's tax cuts went into effect.
Raising the minimum wage will not only benefit low-income wage
earners, it will provide economic stimulus by putting additional
dollars in the hands of those who must spend them to make ends meet.
When the Congress last increased the minimum wage, the economy
experienced its strongest growth in over three decades. Nearly 11
million new jobs were added. This is quite a different result from the
economic policies we have pursued under the current Administration.
Mr. President, increasing the minimum wage is the fair thing to do
and it is sound economic policy. I urge my colleagues to support the
Boxer-Kennedy amendment.
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