    [Public Papers of the Presidents of the United States: George W. Bush (2004, Book II)]
    [August 28, 2004]
    [Pages 1775-1794]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks in a Discussion in Lima, Ohio
    August 28, 2004

        The President. Thank you all. Please be seated. I've got a lot of
    work to do today. See, I'm here in Lima asking for the vote. I'm here to
    tell you I've got a reason to seek the Presidency again. There is a
    reason to want to serve, and that's to keep the country safer and
    stronger and better. That's why I want to be your President.
        And I believe you've got to get out amongst the people and ask them
    for the vote. So that's what we're doing here in Ohio on this Saturday.
    And thanks for coming. Thanks for giving me a chance to--we've got a--
    I've got a different way of talking about what's on my mind and talking
    about our agenda. I've actually asked some of your fellow citizens to
    join me today to talk about what it means to own a business or what it
    means to own a health savings account, what it means to--what tax relief
    meant. It's a way of explaining why we have done the things we've done
    and what we intend to do to make sure this country is a strong country.
        I want to talk a little bit about foreign policy. I want to talk
    about how to spread peace. And then I'm going to answer some of your
    questions, if you've got some.
        Before I do so, I want to tell you that I'm really proud of Laura.
    She is a wonderful wife. I was a lucky fellow when she said yes.
    [Laughter] She was a public school librarian when I asked her to marry
    me. She said, ``I'll marry you, just so long as I don't have to give any
    speeches.'' [Laughter] It's the only political promise

    [[Page 1776]]

    I've ever broken. [Laughter] And thankfully I broke it. What a fabulous,
    articulate woman she is. She's a great mom, a
    wonderful wife. There's a lot of reasons why I think you ought to put me
    back in, but perhaps the most important one is so that Laura is the
    First Lady for 4 more years. She's working on her convention speech. I
    better get working on mine. [Laughter]
        I'm proud to be running with Dick Cheney. He
    is a really solid man. He is a--I like to tease my Vice President by
    saying, you know, he's not the prettiest face in the race. [Laughter]
    But I picked him because of his sound judgment, his expertise, and the
    fact that he can get the job done. That's why I picked Dick Cheney.
        I appreciate my friend Mike Oxley. I
    call him Ox. [Laughter] He's the Congressman from this part of the
    world. He's a really good man. He's a great chairman of an important
    committee. He's a decent American. I appreciate you coming, Mike. I'd
    have thought you'd have gotten a better seat, but you know--[laughter].
    And standing with Mike is United States Senator Mike DeWine. He is doing a fine job for Ohio. He's got another fine
    Senator serving with him in George Voinovich. Put him back in there for 6 more years; he's a good man to
    work with.
        Governor Taft is traveling today. Thank you for
    coming, Governor. Kenny Blackwell is
    with us. I'm honored you both are here. Appreciate you being here.
        Karel Oxley--[applause]--yes--the
    superintendent of schools. Thank you for opening up this beautiful
    school to this dialog we're having. And more importantly, thanks for
    serving your community. You know I like superintendents of schools so
    much so that I picked a superintendent of the Harris County School
    System in Texas to be the Secretary of Education, Rod Paige. The reason why is I believe in local control of
    schools, and I wanted somebody in Washington who understood all wisdom
    about education is not in the bureaucracies of Washington; it's actually
    found in the local communities of our States and cities.
        I want to thank the Lima High marching band for performing. I'm
    honored that you're here. I appreciate it.
        I also want to thank the grassroots activists who are here. We have
    a duty in America to vote. One of the amazing facts about what is taking
    place in the world is the fact that there are over 10 million people who
    have registered to vote in Afghanistan. Now think about that for a
    minute. Ten million citizens have said, ``Let me participate in
    democracy,'' after having lived under the clutches of a barbaric regime.
    It speaks to the power of liberty, doesn't it?
        Now, we have a duty here to register to vote as well. That's--one of
    my purposes in taking this bus trip throughout Ohio is to remind
    citizens from all political parties: Register. And do your duty and
    vote. Now, I've got an idea who I think you ought to vote for regardless
    of your political party. [Laughter] But you ought to be participating in
    the system. And there are people here in this hall who are helping to
    register. And I want to thank you for it. I want to thank you for
    convincing your fellow citizens to do their duty.
        We've got Becky Brown on the bus today.
    Becky is the one millionth volunteer for the Bush-Cheney campaign. Beck,
    congratulations for being the one millionth. She is from Miami County,
    Ohio. Our first stop was in Troy, Ohio. A little over 20,000 people came
    out to say hello, I want you to know, which is pretty darn heartening.
    It's a good way to start your morning, if you're looking for votes.
    [Laughter]
        But I do want to thank you. You can get on the Internet at
    georgewbush.com. It's pretty easy to remember--not all that original, I
    must admit. [Laughter] But it's a way where you can figure out how to
    help. And we need your help, is what I'm telling you. We need your help.
    We're going to carry Ohio again in 2004. [Applause] Thank you all.

    [[Page 1777]]

        Audience members. Four more years! Four more years! Four more years!
        The President. Thank you all. Thanks. That's what I'm here to tell
    you. I'm here to tell you I've got the energy, the desire, the vision to
    serve this great country for 4 more years. That's what we're here to
    talk about.
        You know it's going to sound probably a little strange for me to
    tell you this but I wouldn't be asking for the vote if I wasn't
    comfortable in telling you that this has been a fabulous experience for
    my family. It probably seems counterintuitive, doesn't it? All the
    spotlight and the fishbowl and the pressure and the decisionmaking. But
    it's been great. It really has. And I am grateful and thankful that I've
    got a wonderful wife and two fabulous daughters who are by my side
    during these moments in our Nation's history. And it's been really a
    fascinating experience.
        I have a deep desire to continue to rally the armies of compassion.
    See, the strength of this country is the hearts and souls of our
    citizens. We have a strong military. We'll keep it that way. We're the
    greatest economic engine in the world. And yet the true strength is the
    fact there are loving citizens in America who are willing to interface
    with somebody who hurts and says, ``I love you, brother or sister. What
    can I do to help you?''
        And this country of ours, it's very important to recognize that
    Government is limited in its capacity to heal and help. Government can
    hand out money, but Government cannot put hope in a person's heart or a
    sense of purpose in a person's life. And so one of the callings for the
    next 4 years is to continue to call upon those soldiers in the armies of
    compassion to help heal those who hurt.
        The Faith-Based and Community Initiative which we've started in
    Washington is a vital part of helping change America one heart and one
    soul at a time. People often say, ``Well, tell me about the Faith-Based
    Initiative and why you've started it.'' Well, I'll tell you one reason
    why. Take, for example, a person who's hooked on drugs. Sometimes that
    person can get off drugs by a counselor, a kind of a psychological
    counseling. Sometimes it works. Sometimes, in order to get off drugs, it
    requires a change of heart. See if you change a heart, you change a
    person's habits. And so, therefore, if part of my job is to get the job
    done and solve problems and a problem in our country is the fact that
    some people are hooked on drugs and alcohol, it seems to make sense to
    me to call in all aspects of American society to help save lives,
    including those programs based upon faith which change a person's heart.
    And so we ought to be welcoming all faiths into the compassionate
    healing of broken hearts in America, so everybody can realize the great
    promise of America--everybody in this country. So when I'm talking about
    a better America, I'm talking about continuing to rally the armies of
    compassion.
        I'm also talking about making sure everybody gets an education. I'm
    glad we're having this meeting in a schoolhouse. I was just with John
    Boehner. He's the chairman of the education
    committee. He's from the district right down south of here. We changed
    the whole attitude about schools in America. See, when I got into
    Washington, I was convinced that too many children were just being
    shuffled through the schools grade after grade, year after year, without
    learning the basics. So in working with the
    Mikes who are here and Boehner and others I
    said, ``Look, let's increase funding to the extent we can afford it, but
    for the first time why don't we ask a simple yet profound question: Can
    the child read? Why don't we start with that. Why don't we make sure.''
        I call it challenging the soft bigotry of low expectations. You know
    what that means? It means when you believe certain children can't read
    and write, guess what's happens? It's exactly what happens. Certain
    children just get moved through the system. And guess who we're talking
    about? We're

    [[Page 1778]]

    talking about inner-city kids. We're talking about children whose
    parents may not be able to speak English as a first language. It's so
    easy to quit on them.
        That's not my vision or your vision of the future of this country.
    Our vision says every child can learn to read and we expect it.
    Therefore, in return for extra Federal money, you measure. You show us.
    You tell us whether your curriculum is working. It's your choice to
    choose the curriculum, but I just want to know. As the man in charge of
    spending Federal money along with Congress, I want to know whether or
    not this money we're spending is making sense. And if we're not teaching
    the kids early enough to read, let's correct it early, before it's too
    late. That's what we're talking about about a hopeful America. And it's
    working. This program is working. By measuring, we know. And guess
    what's happening? By having high standards, local control of schools,
    extra money to help, the achievement gap in America is closing. Because
    we measure--that's how we know.
        And there's more to do. I want a high school diploma to mean
    something. I want to make sure we emphasize math and sciences so the
    rising generation will have the skills necessary to compete in a global
    economy. We've got a lot to do on education. But a better America is to
    have the right vision and the right focus on how to improve public
    education for every single child. And that's exactly what this
    administration has done, and that's what we'll continue to do over the
    next 4 years.
        A stronger America is an America in which people are able to find
    work. And listen, I understand Ohio. I've been here a lot, and I will
    come back a lot. [Laughter] This economy of ours has recovered from
    recession, corporate scandal, and attacks. And yet there are parts of
    your State that are lagging behind the national economy. I understand
    that--I understand that. Which means you better have somebody in office
    who has a plan to continue economic growth, a plan that says here's how
    we're going to continue the momentum of the economy. And that's what I
    want to talk to you about. A stronger America is an America in which
    this economy continues to grow.
        The role of Government is not to create wealth. The role of
    Government is to create an environment in which the entrepreneurial
    spirit can flourish, in which small businesses grow to be big
    businesses. That's why, when we were in the recession that showed up at
    our doorstep after the Vice President and I got
    sworn in, I said to Congress, ``Let's cut the taxes on the people. Let's
    let them have more of their own money to spend, to save, or invest.''
    And it's working--it's working. The economy is strong and getting
    stronger. The national unemployment rate is 5.5 percent. That's lower
    than the average in the 1970s, 1980s, and 1990s. The economy is getting
    stronger.
        A couple of things about the tax relief plan--it will fit into some
    of our discussions with some of the entrepreneurs here. First of all,
    when it came to providing tax relief, remember how we did it. We said,
    ``If you pay taxes, you ought to get relief.'' It sounds pretty simple,
    but that's not always the way Washington does things. So we said, ``If
    you're paying taxes''--so therefore we reduced all rates, which was
    fair.
        We also did some other things inside the code. We increased the
    child credit. Why? We want it easier for moms and dads to raise their
    children. We reduced the marriage penalty. Think about the logic of a
    Tax Code that penalizes marriage. It's backward. We ought to be
    encouraging marriage, not penalizing marriage, in the Tax Code.
        We helped small businesses a lot in the tax relief for two reasons:
    One, most small businesses in America are what's called an S corp or
    limited--sole proprietorship. And they pay tax at the individual income-
    tax level. See, here--a small business is called an S corp, but their
    taxes are paid based upon the individual rates. And by far most

    [[Page 1779]]

    businesses in America are either of those two legal forms. And so when
    you reduce all rates, individual rates, you've got to make the
    connection. It's important for the American people to understand we're
    really reducing the rates on small-business owners. And that's important
    because most jobs--most new jobs in America are created by small-
    business owners. One reason our economy is coming back is because the
    small-business sector is vibrant and strong.
        The other thing we did is we provided incentive for small businesses
    to invest. And we'll talk to some small-business owners that took
    advantage of the incentive program that said if you invest, you get a
    little tax break.
        There's more to do to keep the economy going, and let me tell you
    right quick what I think we ought to be doing. First, one way to say
    this is that the best way to keep jobs here in America is to make sure
    America is the best place in the world to do business. I mean, if you
    want jobs here, it's got to be the kind of environment in which people
    are willing to risk capital. So what does that mean? It means we've got
    to have tort reform. There's too many junk lawsuits that are making it
    hard for businessowners to create jobs. That's one thing it means.
        It's tough to get it done in Washington. The plaintiffs bar is one
    of the special interests that are hard to move, to be frank about it.
    That's why you need to put me back in there. I'm not afraid of them. I
    want to continue to push for legal reform that will help our businesses.
        I'll tell you another area where we need legal reform, and that is
    in medicine. Too many junk lawsuits and frivolous lawsuits hurt our docs
    and hurt our patients. And that's an important issue. By the way, this
    is a national issue. It's a national issue because junk lawsuits and the
    defensive practice of medicine as a result of junk lawsuits run up our
    budgets. They run up our VA budget. They run up our Medicare budget.
    They run up our Medicaid budgets. It's costly to the taxpayers, but more
    significantly, it's costly to the communities because docs are being run
    out of business.
        Most people get their insurance through their businesses. Most--and
    since most new jobs are created by small businesses, it seems like to me
    that good health policy focuses on the small-business sector. Many small
    businesses are having trouble affording health care. It's a problem. It
    is an issue that we must deal with.
        One way to deal with that issue is through medical liability reform.
    Another way to deal with that issue is to use technologies in medicine
    to wring out excessive cost and to cut down on medical error. A third
    way to do so is to allow small businesses to pool risk across
    jurisdictional lines. That means a restaurant in Texas and a restaurant
    in Ohio can buy policy and--with other restaurants around the country
    and spread risk across a greater number of employees so as to reduce the
    cost of health care to--those are called association health plans.
    That's what that's called. They're being resisted in Washington, DC. But
    it's a mistake not to allow small businesses to be able to pool risk so
    they can afford insurance at the same discounts that big businesses are
    able to afford insurance.
        Another way to keep jobs here in America is to make sure we've got
    an energy policy. You see, if you want workers to be here, we better
    have a reliable and affordable supply of energy. Two years ago, I
    submitted a plan to the United States Congress that said, ``Let's
    encourage conservation. Let's encourage research into how to make sure
    renewable forms of energy are more cost-effective''--that means corn,
    for example, or soybeans. It means--look, we ought to be exploring the
    technology and the know-how to expand the use of ethanol.
        Can you imagine someday--and I believe it's going happen--someday a
    President is going to walk in and the ag-type adviser is going to say,
    ``Hey, Mr. President, the

    [[Page 1780]]

    corn crop is up, and now we're less dependent on foreign sources of
    energy.'' That's what I'm telling you. We also need to be using Ohio
    coal. We need to be using Ohio natural gas. If we want to keep jobs
    here, we've got to be less dependent on energy sources from overseas.
        I'm winding down here.
        Audience members. No-o-o!
        The President. No, no, I'm just getting started, excuse me--
    [laughter]--getting cranked up. When people start dropping out on the
    front row, I'll quit. Anyway--[laughter].
        Let me talk about trade. That's a vital issue, and if we get it
    wrong, it's going to hurt jobs in America. My position on trade is this:
    First, we have opened up our markets for goods from overseas for a
    reason. It's not just me. Other Presidents have done so as well. The way
    the economy works is that if you have more products to choose from,
    you're more likely to get a better quality product at a better price.
    That's the way the economy works. And so therefore, when you open up
    your markets to foreign goods, it's good for U.S. consumers.
        Now, all I'm telling you on trade is that the policy ought to be
    saying, ``We've opened up our markets. You open up yours.'' See, that's
    the best trade policy. We treat you one way; you treat us the same way.
    And that's--and we're making progress there.
        Now, I've got tools at my disposal to call to account unfair trading
    practices, and I'm using them--I'm using them without creating a climate
    of economic isolationism. See, it's so easy to say, ``We'll just isolate
    ourselves from the world. That's how we'll deal with unfair trade.''
    That's a mistake. That's a big mistake. A lot of capital comes into the
    State of Ohio from overseas that employs people. But as importantly, a
    lot of people in Ohio are selling goods overseas.
        I'm going to tell you something. The farm economy is good here in
    this State. You might remember what it was like before I came in. Any
    farmers here? Yes, okay. You remember, it wasn't so good. Well, one
    reason the farm economy around this country is strong is because we're
    selling soybeans to China; we're selling corn around the world. We've
    opened up markets. We can compete with anybody, anytime, anyplace, so
    long as the rules are fair.
        Let me talk about one other thing--aspect about keeping jobs here in
    America. It's a very important aspect, and that is I believe we ought to
    have this concept of a lifetime of learning for all citizens. And let me
    tell you what that means. It means, first, get it right early. It means
    make sure the high school diploma means something. We're expanding Pell
    grants, by the way, to help low-income families afford college. We've
    added a million--a million students on Pell grants since I've been the
    President, so we can get people going to college. But what I'm talking
    about, a lifetime of learning, is to help workers gain the skills
    necessary to fill the jobs of the 21st century.
        I'm a big believer of community colleges, and I'll tell you why.
    Community colleges are available around the State of Ohio and America;
    they're accessible. In other words, if you've got a desire to go, you
    can go. And they're affordable. Plus we're spending your Federal money
    to help make it even more affordable. I mean, there's a lot of trade
    adjustment money that helps workers that might have lost a job as a
    result of trade policy. There is displaced worker money. In other words,
    we have made money at the Federal level--and I think it's money well
    spent, by the way--to say to a worker, ``If you've lost your job, here
    is some help to go to a community college to gain new skills.''
        See, what's happening in a lot of parts of our country is that old
    jobs are leaving and there's new jobs being created, new higher-paying,
    better jobs, but there's a skills gap. And we've got to help people

    [[Page 1781]]

    fill the skills gap. Let me be specific, what I'm talking about.
        The textile industry has lost jobs over the last couple of decades,
    particularly in the South. And yet, the health care industry is vibrant
    and strong. And so one of the programs that we put in place is to take--
    is to help textile workers become nurses or textile workers to become
    health care technologists.
        I remember going to Mesa Community College in Arizona. And a lady
    stood up, and she said, ``I was a graphic design artist for 12 years
    making X. And I went back to my Mesa Community College.'' She got a
    little help--I think it was a Pell grant--she got a little help from the
    Government. She went back and got an associate's degree. And she made
    more money in her new job in her first year than she made in her old job
    in the 12th year. See, when you go back and gain new skills, it makes
    you a more productive worker. And when you increase your productivity as
    a worker, not only does it help you meet the jobs that require new skill
    sets but you make more money.
        And so the challenge in this economy of ours is to grow it, but to
    make sure the workers have got the necessary skills. We can't make
    somebody go back to school. We can't say, ``We'll pass a law that says
    you're ambitious.'' But we darn sure can help with Federal funding, and
    we will--and we will. To keep jobs in America, we must provide workers
    with a lifetime of learning opportunity.
        We've got Pat O'Connor with us. Ready? Give
    the man his mike. Pat O'Connor is the president of a small business.
    Named?
        Pat O'Connor. Range Clean Manufacturing.
    [Applause] I've got a couple of associates up there.
        The President. Yes, you've got a couple associates up there. Now is
    your chance to tell him you need a pay raise--
    [laughter]--anyway.
        First, let me start by telling you how he's
    organized. Or you can tell me how you're organized. S corp?
        Mr. O'Connor. We're an S Corp. In fact,
    talk about the tax break, it was actually 2\1/2\ years ago I actually
    bought my father out from the company. He started the company 33 years
    ago.
        The President. I followed my father
    too--[laughter]--just cost me a little time. But other than that--
    [laughter]. Go ahead.
        Mr. O'Connor. An S corp, and any of the
    profits flow directly down to the owner.
        The President. See, S corp means that when he has profit,
    he pays at the individual income-tax rate. So
    when we're cutting tax on individuals, guess what? He got tax relief. I
    think it's important. You know why? How many people did you hire this
    year?
        Mr. O'Connor. We brought back six jobs from
    the Orient. We had a couple items that we're selling to Wal-Mart stores,
    and we worked with our friends down in Bentonville to create a product
    that had better quality and better pricing and bring those jobs back to
    the United States. And we brought six jobs back to the United States.
        The President. Yes. How many did you hire? I mean, how many people
    have you hired this year?
        Mr. O'Connor. We've hired 30 so far.
        The President. Thirty new workers. Look, part of the economic
    recovery is taking place right here in companies like this. It's--again,
    70 percent of new jobs are created because the entrepreneurial spirit is
    strong and people like Pat are hiring 30 here, 10 here, and that's
    what's happening. The small-business sector of this economy, of this
    country, is leading the economic recovery.
        Outlook? Surely it's not going to be dismal.
        Mr. O'Connor. I just sat down--actually,
    funny you say that--yesterday with our CFO looking at our pro forma for
    2005. And we've got an aggressive, double-digit

    [[Page 1782]]

    projection for sales increases. So we're looking at reinvesting more
    money in plant, equipment, people.
        The President. Yes, good. Let me ask you a question. Investing--
    that's a word that you hear a lot of. What are you investing in? What
    are you buying? When you hear investing, they're investing in,
    generally, equipment--is that right?
        Mr. O'Connor. A great example is we bought
    a pretty substantial piece of equipment called a pick module.
        The President. Pick module, yes. [Laughter] It sounds like dental
    equipment. [Laughter]

    [At this point, Mr. O'Connor made further remarks.]

        The President. And so who--somebody has to make the pick module. So
    the tax relief says to him, ``You invest, you get a little extra kicker
    on your tax relief.'' Right?
        Mr. O'Connor. You got it.
        The President. So, in other words, we're trying to make--we're
    trying to help influence his decisionmaking through good tax policy. So
    he says, ``Okay, I'm going to buy a pick module.'' He's got to pick up the phone and order a pick module.
    Somebody has got to make it. And so when he makes the decision, ``I'm
    going to increase demand for capital goods because of the Tax Code,'' it
    helps somebody else find work. So that's what I want people to
    understand.
        When we say tax relief makes a difference, we're affecting past
    decisionmaking. The Tax Code says, ``Do something wise, because there's
    incentive to do so. Buy something.'' And he
    decided to do a pick module. More importantly, though, it makes his
    business more productive, I guess.
        Mr. O'Connor. You got it. Your tax breaks 2
    years ago--our CFO, Dave Link, and I looked at the numbers. Since you
    and Cheney have taken the administration in office, we've made more
    money, more sales, paid more in wages, have paid more in taxes, and have
    pushed more dollars back into the company under this administration
    versus previous.
        The President. I appreciate that.
        One other thing that's important to know, and Pat may explain this as well, but if he invests in new
    equipment, it makes his own workforce more productive. The newer the
    equipment that he's got in his plant, not only the more efficient his
    company becomes but the more productive his workforce is. And I just
    told you that if you're a more productive worker, you make more money.
    So you read about productivity increases in America, a lot of it has to
    do with encouraging investment. A lot of it has to do with education,
    and a lot of it has to do with the modernization of plant floors, like
    Pat has done.
        I appreciate you coming. I love the entrepreneurial spirit of
    America, don't you? Good job. There's nothing better. There is nothing
    better, is it, to be in an ownership society. Don't you love the idea of
    somebody saying, ``This is my business.'' How about the fact that
    homeownership rates in America are at an alltime high. More people--and
    it's a fantastic statistic. It is a fantastic statistic of our society.
    It means more people are opening up that front door, saying, ``Welcome
    to my home. Come into my piece of property.''
        See, I love an ownership society. It's a hopeful society. It's a
    society that provides stability in times of change. An ownership society
    is one where people have a vital stake in the future of this country.
    And that's important. It's important for people to buy into the future
    of America. And when you own something, you have a--you have this vital
    stake on how this country grows and develops.
        We've got another owner with us, Rich Rudolph. Welcome. Appreciate you coming, buddy. Thanks for being
    here. You're not going to believe what this guy makes.
        Audience member. Pork rinds.
        The President. They know--they know you. [Laughter] So does my old
    man. He knows you. Pork rinds.

    [[Page 1783]]

        Go ahead. Welcome.
        Rich Rudolph. Thank you. Welcome here as
    well.
        The President. I'm proud you're here. Tell us about your--everybody
    knows your business. What a great marketer you are.
        Mr. Rudolph. Well, we make the best tasting
    pork rinds in the world, my mother's recipe.
        The President. Fantastic. Are you listening to your mother?
        Mr. Rudolph. Well, most of the time.
        The President. Yes, see, you and I do the same way. [Laughter] My
    mother tells me; your mother tells you, and we
    listen most of the time. [Laughter] How's your business?
        Mr. Rudolph. We've been booming. The high-
    protein, low-carbohydrate diets are helping. [Laughter] Your dad helped
    a lot in '87, '88.
        The President. He's a pork rind man.
        Mr. Rudolph. Since your administration,
    we've added over 50 jobs.
        The President. Really? How about this year?
        Mr. Rudolph. We're right at above 30 this
    year.
        The President. You added 30 people. You heard one small-business guy
    add 30. He's added 30. So when you hear these
    statistics, a lot of times the small-business add-ons aren't showing up.
    But what you're seeing is the entrepreneurial spirit is strong. That's
    what people ought to be looking at when it comes to electing the
    President. How do you make sure the small-business sector is growing?
    Are you investing at all?
        Mr. Rudolph. Absolutely. We invested last
    year over 3 million; this year, again, over 3 million----
        The President. That's great.
        Mr. Rudolph. ----and are putting that in to
    equipment to become more efficient, more competitive, and keep being the
    largest producer of pork rinds in the world.
        The President. Good. Yes, see, what he's
    telling you is--what did you buy, by the way? Pork scrapers. [Laughter]
        Mr. Rudolph. We bought cooking equipment,
    packaging equipment, things that will make us more effective and look
    down in the future.
        The President. See, what he's telling you
    is, is that he wants to stay in business. If I'm working for that
    company, I'm saying, ``I want the person making decisions for this
    company to be making decisions necessary so I can keep my job.'' And so
    what he just said is, he said he's buying equipment so he can be more
    competitive. That's the kind of environment we want in America, an
    America where there's competition that--and a Tax Code that encourages
    people to make the right decisions like they have in this important
    company, so that people have job stability.
        And one of the reasons I've asked these small-business owners to
    come is because they are--it's just important to realize there are
    millions of people making decisions that affect how this economy grows.
    It's not the Government that makes decisions. It's the individuals in
    the society making the decisions. And the Government's job is to
    encourage decisionmaking that leads to job creation, and that's what
    we're here to talk about.
        You know, I'll tell you, looking at these two owners and knowing
    that they had purchased their businesses from family members reminds me
    of another part of the Tax Code that we have got to change, in my
    judgment, to enhance the entrepreneurial spirit. And that is, we've got
    to get rid of the death tax in America. You for that?
        Audience member. All these kids are for that.
        The President. The whole family is for it. That's good.
        You know, think about this. It's an old tax system. More and more
    wealth is being spread throughout our society. And now the Government is
    saying they're going to tax you twice, while you live and pay your
    taxes, and then they're going to tax you after, when you die. We did
    pretty good

    [[Page 1784]]

    about getting rid of the death tax. We got it on the way to extinction.
    Unfortunately, it pops back up to life in the year 2011. Another reason
    to put me in the office is because I'm going to continue trying to get
    rid of the death tax forever, for the sake of our farmers, ranchers, and
    small-business owners.
        Appreciate you coming. Good job.
        One of the interesting opportunities we have is through what I call
    health savings accounts. And we've actually got a health savings account
    owner here. One of the things I'll tell the American people is that
    whatever happens on health care reform, I will make sure that the
    patient and doctor are central to the decisionmaking process in health
    care, not bureaucrats in Washington, DC. It's an important philosophical
    difference in this campaign.
        And one way to encourage that is to encourage new products. And
    we've got an interesting product called a health savings account. These
    accounts will be very good for individuals and very good for small
    businesses. Many of the working uninsured work for small businesses. I
    would strongly suggest small businesses look at this product.
        Scott Williams, with us right here today,
    in Lima, Ohio, is an owner of a health savings account. You want to try
    to explain how it works?
        Scott Williams. It's pretty simple. It's
    a high-deductible health insurance program that I'm able to put savings
    away, pretax, to use for that deductible and keeps my premiums extremely
    low.
        The President. Okay, yes, let me see if I can help him here. He buys an insurance policy for catastrophic
    health care. In other words, the first $2,000, say, he is responsible
    for. Any health care costs above the deductible, or this, maybe 2,000,
    whatever your deductible is, the insurance company pays, which means
    your premiums you pay are really low compared to traditional health care
    plan.
        Tell us what your premiums were before you bought a health savings
    account.
        Mr. Williams. Right before I moved to
    Ohio, I was out in Kansas City. My wife had been a nurse. We'd just had
    a daughter. And she decided to go part-time as a nurse, and so we came
    off of her health program, and we--right before we came here, we got our
    statement that said our insurance for the three of us was going to be
    about $1,100 a month.
        The President. Yes, 1,100 a month. Now what do you pay?
        Mr. Williams. I pay 270.
        The President. So what he's done is--
    we're not quite sure--we're not quite through filling up his health care
    plan. We've got--so far, we've got the insurance aspect. The cost per
    month has gone from 1,100 to 279. But he's obviously got to worry about
    the zero to 2,000. If the insurance kicks in at 2,000 and above,
    something has got to happen between zero and 2,000, which means you,
    essentially, self-insure, or your employer puts money tax-free into what
    they call a health savings account that you then earn money tax-free
    inside, and you spend it tax-free. But it's your money, see.
        And so--go ahead. Does your employer put the money, or do you put it
    in?
        Mr. Williams. I work for a church, Church
    of the Nazarene in Defiance. I'm the youth pastor. I've got a couple of
    my kids here.
        The President. Good. Thanks for coming, guys. It's pretty cool.
        Mr. Williams. And it's great because----
        The President. Right in front of national TV. There he is. [Laughter]
        Mr. Williams. ----they add an additional
    $600 a quarter in there for me, which covers everything if I want to get
    over-the-counter medications, to going to the dentist, to doctors'
    visits. They will--I just send my receipt--my bills into them, and they
    write them a check out of that savings account. And it's all pretax
    dollars.

    [[Page 1785]]

        The President. If he doesn't spend the
    money in his savings account, it's his. And it rolls over the next year,
    tax-free. And so what this does is--think about what--think about the
    different kind of system this is. It's an interesting system, isn't it?
    It says, first of all, it's up to you to make good choices with your
    body, because if you do, if you make good choices, if you live a healthy
    life, you save money. It's your money. You see it grow.
        Secondly, as you make decisions, you're making the decisions, not a
    bureaucrat somewhere else. It's your decision to make. You just heard
    him. He said, he's going to go and try to
    buy--he gets the price, all of a sudden. It matters. It starts to matter
    whether somebody is going to charge him more money. If you've got
    somebody who's writing the check, like the old insurance system, who
    cares what the price is, right? Just as long as your premiums seem to
    seem reasonable, but they keep creeping up year after year.
        What I'm telling you is, here's a product that enables the doctor
    and the patient to be central to the decisionmaking process, a product
    he calls his own, see. He takes this with him
    wherever he goes. It's his for life. And it's earning money tax-free,
    plus it covers major medical expenses for him. Listen, I'm telling you
    to look into these things. And I want our small-business owners who are
    out there to take a look, to take a look at this kind of system to help
    you provide your employees insurance. Plus, guess what happened when we
    had the tax cut? His family saved $1,100 in tax relief. Isn't that
    right?
        Mr. Williams. Yes. I didn't mention it a
    second ago, but my premium is that much lower, and I've added a son. And
    so----
        The President. Yes, congratulations.
        Mr. Williams. Well, yes. Thank you.
        The President. Child credit--raising that child credit helps.
    [Laughter] So look, he's got $1,100. You know
    what my theory on Government is? We meet priorities and then let the
    people spend their own money. They can spend it far wiser than the
    Federal Government can.
        What did you do with your tax relief?
        Mr. Williams. Because my wife stays home,
    it allowed us to keep her home more. It just, literally, let her stay
    home with our kids.
        The President. Made you--let's you make more choices. See, part of
    Government has got to empower people to make more choices, to give
    people--stand beside, side by side with people, not be so onerous with
    people that it makes it difficult to realize dreams. The tax relief was
    a vital part of not only helping this economy recover, but the reason I
    asked Scott here, it's a part of a philosophy
    that says, ``We trust people with their own money.'' We think Scott can
    spend that money better than the Federal Government can spend his money.
        Thanks for coming.
        Mr. Williams. Thank you.
        The President. Jodie Arnold. Jodie Arnold
    is a physical therapist. I said, ``I kind of feel a little stiff here,
    you know?'' [Laughter] After all, I am 58. She works part-time. Her
    husband, Brian, is the varsity football coach.
        Jodie Arnold. Yes, in Bryant, Ohio, and
    unfortunately, they had a rain-out last night, and he had to play today.
        The President. Thanks for coming.
        Ms. Arnold. Thank you.
        The President. Let's hope he wins.
        Ms. Arnold. Yes, me too.
        The President. The reason I asked Jodie to
    come is--in representing Brian, is that, see,
    it's important to put tax relief in the context of individuals. She and
    her husband saved $1,700 in tax relief--because of the tax relief, in
    2003 and 2004. That's like 1,700 more dollars in their pocket on an
    annual basis. I know in Washington, that may not sound like a lot. I'm
    not a lawyer, so you'll probably accuse me of leading the witness, but
    did it matter to you?

    [[Page 1786]]

        Ms. Arnold. The money made a huge
    difference. We got that money back right after I had my second child,
    Addison. I was home a week on maternity leave, and we were able to use
    that money to put a new roof on our home.
        The President. Yes. And I asked her, I
    said, ``Did you hire a roofer?'' And she said, ``Only after I figured
    out Brian couldn't get the job done.''
    [Laughter] But somebody had to show up to do the work. That's how the
    economy works. There's an additional amount of demand in our economy in
    their household because they had a little extra money in their pocket.
    And so she calls, ``Send me a roofer.'' The roofer is working. The
    roofer has now got a better future. That's how the economy works.
        People have got to understand that. When we're talking--you hear all
    the rhetoric, you know, in the campaign. ``Oh, they're taxing the
    rich''--I mean, ``They're giving breaks to the rich.'' Here's who is
    getting the tax breaks, folks--$1,700 is making a big difference in
    her life.
        Now that you've got the floor, you need to say anything? Guess what?
    She refinanced her home too. That was positive.
    Things are looking up for the American consumers. And here's the issue--
    want to say something?
        Ms. Arnold. I just want to say that with
    refinancing our house, we were able to drop our payments $150 a month
    and also take 10 years off of our loan as well, and that's a big
    difference.
        The President. That's great. Thanks, you did great. Makes it
    affordable for her home.
        And here's the issue, is that if we don't act, taxes are going to go
    up on the people, because much of the Tax Code we passed--much of the
    tax relief we passed was done on a temporary basis. The child credit
    goes down; the marriage penalty goes up; the 10-percent bracket we
    created goes away. And so the fundamental question is, do we raise taxes
    on the American people, or do we keep them low? I believe we ought to
    keep taxes low. Congress needs to hear from you, and the way you keep
    taxes low is you make all the tax relief we passed permanent. You don't
    let it go away. You're not raising the money on the people.
        See, I'm going to go walking around the country--riding around the
    country in a bus. I'm going to remember Jodie,
    and I'm going to remind the people in--I don't need to remind those
    Members of Congress; there are some others we need to remind, ``If we
    don't act, you're running up her taxes.'' You heard what she said. She
    said, ``We're able to refinance the home. I'm more comfortable owning my
    home. I made some home improvements.'' If her taxes go up, it's less
    like she's going to make those decisions. If we start running up the
    taxes on these small-business owners, it's less likely they're going to
    be making investment decisions. So when you hear me talking about
    keeping taxes low, I hope you're getting a better feel for why I am. And
    it's a campaign issue.
        We're out there--we've got 2 months to go, and my opponent has already put out about $2 trillion worth of new
    promises. And we haven't come down to the big promise period in politics
    yet. That's 2 trillion. So they said, ``How are you going to pay for
    it?'' And he said, ``Well, I'm going to tax the rich.'' And we've heard
    that before in politics. The rich dodge, and you get stuck with the
    bill. But we're not going to let him tax you, because we're going to win
    the election in November of '04.
        Audience members. Four more years! Four more years! Four more years!
        The President. Thank you all. Okay, hold on.
        I need to talk about peace. I need to talk about how to make this
    world a peaceful place. I never thought I was going to be a war
    President, when I campaigned in 2000 in Ohio and around the country. I
    never--you know, it's just something that I never thought about. And
    then all of a

    [[Page 1787]]

    sudden, I became one because of one day. And I want to share with you
    some lessons of September the 11th. And they are vital lessons, and
    they're lessons that I believe this country should never forget, because
    the most solemn duty of Government is to protect the people.
        First, we are in a war. It's a different kind of war. It's a war
    that--it's a war in which the enemy is an enemy that has a dark ideology
    that is in opposite of what we believe in America, is the best way to
    put it. If you don't agree with them, you get whipped in public squares.
    If you don't agree with them, you'll be killed. They don't believe in
    human freedoms. They don't believe you can worship freely the way you
    see fit. They have a single point of view. I believe they've hijacked a
    great religion. I don't believe they are religious people, because
    religious people don't kill the innocent. Religious people don't behead
    people.
        The nature of this enemy--it's important to understand the nature of
    the enemy--they are coldblooded. You cannot negotiate with these kind of
    people. It doesn't do any good to try to hope for the best with them.
    They are patient. They are determined, and they must be defeated by
    being resolute and strong and never wavering. Our strategy is clear. We
    will stay on the offense. We will defeat them elsewhere so we do not
    have to face them here at home.
        Secondly, we will work to spread liberty around the world. And I'll
    talk to you about that in a minute. So the first lesson is, know your
    enemy. And once you fully understand the enemy, it drives policy. And
    these are people that will behead somebody and get on TV and brag about
    it, hoping to shake our will, because we're decent people. We're loving
    people. We've got a conscience. They don't, and therefore, there must be
    a steadfast resolve.
        Secondly, any time America says something, we better mean it, for
    the sake of peace. And when we speak--when this country speaks, we
    better mean what we say, in order to make sure that there is a firm
    resolve.
        By the way, I forgot to mention one other aspect. Once you figure
    out the nature of the enemy and know that they hide in caves and dark
    resorts of the city, it requires a universal effort to find them. And we
    put together a universal effort. I mean, we've got intelligence sharing
    which is strong and good. We've got people trying to cut off their
    money. We've got law enforcement looking for them, and we're using our
    military to find them too. We're going to use all assets to run these
    people down. There's no need to hold back. We will chase them down.
        The second aspect of the war on terror is, because they can lurk and
    hide, it's important to say to those who might provide them safe harbor,
    if you harbor them, if you provide them safe haven, you're just as
    guilty as they are. That was--I said that, and I meant that. I first
    said that when I was talking about Afghanistan. You might remember that
    Afghanistan was the safe haven for these people. They went in there, and
    the Taliban was running the country. This is a group of people that
    didn't even let young girls go to school. They'd take their mothers out
    in the public square and whip them if they thought they were kind of out
    of line. They were barbarians, as far as I was concerned. And Al Qaida
    came in there and became a parasite. They kind of got inside their
    country, and they trained thousands of people.
        And right after we got attacked, I said, ``Listen, you're harboring
    them. Give them up, or face serious consequences.'' I meant every word I
    said. And they didn't, and we have removed the Taliban from power.
        America and the world are safer because Afghanistan is a rising
    democracy. I told you there's 10 million people have registered to vote.
    That's amazing. Do you remember 4 months ago--I'm telling you about the
    power of liberty--4 months ago, they pulled those poor ladies off the
    bus, the voter registrars, the Taliban did, and

    [[Page 1788]]

    killed them because they were working on the vote. A lot of people said,
    ``Gosh, this is going to be a dim day for democracy. It's going to
    intimidate people.'' The power of liberty cannot be stopped. It is a
    powerful, powerful part of the soul of every citizen. Ten million people
    have registered to vote for their Presidential elections coming this
    October. Think about the change.
        I was in Cleveland at the Children's International Games. I'm giving
    a speech to welcome them there, the children from around the world, and
    there's the Afghan girls soccer team. Man, I nearly broke down in tears,
    taking a look at those young girls there.
        Liberty is important. It's important to be proud of the fact that we
    have freed them, but in so doing, we've made ourself more secure. That's
    what the American citizens must understand. By securing ourself, we're
    helping others realize the great freedoms of the world, and freedom is
    peace. Free societies aren't going to harbor Al Qaida. Free societies
    aren't going to breed resentment. Free societies are peaceful societies.
        The third lesson of September the 11th is we must deal with threats
    before they fully materialize. When we see a threat overseas--you know,
    prior to September the 11th an American President wouldn't say that,
    necessarily, because we thought oceans protected us. We were--we've
    lived for a long time before there was an attack on America the likes of
    which we saw. Pearl Harbor, I guess, was the last significant attack
    like that. And we felt, gosh, we're pretty well immune from threats. And
    sure enough, we aren't. And it's a vital lesson. It's a tough lesson for
    a country that felt protected for a long period of time, but it's a
    lesson we cannot forget. So when we see a threat, we must deal with it.
        The last option for the President must always be the military
    option. The last option before a President makes the difficult decision
    to put somebody in harm's way is the military. And so, therefore, I
    tried diplomacy. I wanted to solve this threat diplomatically. I felt
    like we could, maybe, pull the world together and convince Saddam
    Hussein to disarm.
        I saw a threat--let me tell you why I saw the threat. Let me just
    review the history right quick. This guy had
    actually used weapons of mass destruction before. Secondly, he was a
    sworn enemy of America. You might remember, during that period of time,
    he was shooting at American airplanes that were enforcing sanctions.
    Thirdly, he harbored terrorists. Zarqawi was in and out of his country. Remember Abu Nidal? He's
    the guy that killed Leon Klinghoffer because he was Jewish? He found
    safe haven in Iraq. In other words, terrorist groups were in this guy's
    country. He paid the families--he subsidized the families of suiciders
    who may go blow somebody up, generally, an American or a Jewish person,
    Israeli. He'd pay them. That's terror. He killed thousands of his own
    citizens. I mean, this guy was a threat.
        And so I went to the United Nations, and I remember standing up
    there in New York City, and I said, ``This guy's a threat. And you've passed a lot of resolutions
    before. Why don't we pass one that means something to make the world a
    safer place and to protect us. In the post-9/11 environment, we have to
    take the man seriously.''
        And so we went to the U.N. and I--we also went to the Congress, by
    the way. Members from both political parties looked at the same
    intelligence I was looking at. They had the same memory I had of Saddam
    Hussein. They voted overwhelmingly to say
    that Saddam Hussein was a threat and authorized the use of force--
    including the man I'm running against for
    President. He voted ``aye'' when it came to say, ``I see a threat. You
    can use force.'' He looked at that same intelligence, and so did the
    U.N., and they voted 15 to nothing in the U.N. Security Council. And
    here's what they said. They said, ``Disclose, disarm, or face serious
    consequences.'' That's what the--basically the resolution said. The

    [[Page 1789]]

    United States of America, under my instruction, voted ``aye.'' We said,
    ``You bet. Disclose, disarm, or face serious consequences.''
        He refused to disclose. He basically
    ignored the demands of the free world. He had done this, by the way, for
    over a decade. We had tried diplomacy long before I arrived. And he
    said, ``I'm not interested.'' He was hoping the world would turn a blind
    eye. He was hoping we would look the other direction.
        And then when we sent inspectors in--I agreed; I thought the
    inspectors made sense to go in there. I want to try to solve things
    peacefully before we ever commit troops. He
    systematically deceived the inspectors. And that was clear, and that's
    been documented. In other words, all we're saying is, ``Show us what
    you've got.'' And he said, ``No way.''
        So I had a choice to make, a choice that only comes to the Oval
    Office. The choice was whether to trust a madman who hated America and
    forget the lessons of September the 11th, or take action necessary to do
    my duty and defend this country. Given that choice, I will defend
    America every time. [Applause] Thank you all.
        A couple other points. We did not find stockpiles of weapons we all
    thought we would. Saddam Hussein had the
    capability of making weapons of mass destruction. He could have passed
    that capability on to an enemy. It is a risk that we could not afforded
    to have taken after 9/11. Knowing what I know today, I would have made
    the same decision. The world is a safer place. The world is a safer
    place with Saddam Hussein sitting in a prison cell.
        And now we're doing the hard work of helping Iraq and Afghanistan
    become democracies. And that's one of the interesting parts of this
    debate, is can they become democracies. I believe they can. I believe
    that liberty and the desire for liberty has the power of transforming
    societies.
        Tell you one reason I believe that. I've--I was sitting down with my
    friend Prime Minister Koizumi. He's the
    Prime Minister of Japan. You know, it wasn't all that long ago in the
    big scheme of things, in the long lineage of--in the long timeframe of
    history, that my dad and your dads were fighting the Japanese as a
    mortal enemy. It wasn't all that long ago. And here I am having dinner
    with this fellow, and we're talking peace. We're talking about how to
    work together to make the world a more peaceful place.
        See, what happened after World War II is my predecessor and others
    said that liberty can transform an enemy into a friend, that freedom has
    got the capacity to take a group of people with whom we have fought,
    viciously fought, and transform an attitude into one that was hostile to
    peaceful. It's a part of history we must never forget in this country.
    And so here I am, sitting with Prime Minister Koizumi, talking about how to deal with Kim Chong-il, the North Korean tyrant, how best to surround him
    with nations saying the same message, to get rid of his nuclear weapons
    programs.
        Now, I'm telling you something. I believe that liberty can transform
    lives, and I believe people want to be free. And I believe, if given a
    chance, people long for freedom. That's what I believe. It's a core of
    my belief system. I'll tell you why I believe it. I believe that freedom
    is the Almighty God's gift to each man and woman on this Earth.
        So our policy in Afghanistan and Iraq is to provide enough security
    so the political process can get going, so they can have the 10 million
    people vote in Afghanistan. It's been 3 years since they were run by the
    barbaric people called the Taliban. Iraq is going to have elections next
    January. Imagine the transformation of a society.
        I'll tell you another story real quick, now that I've got you here.
    [Laughter] I may just say this next week. It's a powerful story. So I'm
    in the Oval Office. The Oval Office is the kind of place where people
    stand outside the door saying, ``I can't wait to get in and tell him
    what for.'' And they

    [[Page 1790]]

    walk in, open up, and they go, ``Man, you're looking pretty, Mr.
    President.'' [Laughter] It's a powerful place. The only person not
    affected that way has been my mother.
    [Laughter]
        The door opens up and in walks seven Iraqi men, all of whom had
    their right hands cut off by Saddam Hussein
    and an X carved into their foreheads because the dinar, the Saddam
    dinar, had devalued and he was looking for scapegoats. I asked the one
    guy, ``Why you?'' He said, ``I was a small-business guy, small-business
    man.'' He wasn't making pork rinds. He was making jewelry. He needed to
    sell dinars in order to buy another currency to be able to buy the gold
    to make his jewelry. And he did so, unfortunately, when the dinar
    started to devalue, and this thug was looking for a scapegoat. And they
    pulled these seven guys out--in order to justify his currency
    devaluation, I guess, in his own mind--they chopped these guys' hands
    off.
        And so they walk into the Oval Office. The good news was, is that
    Marvin Zindler, a Houston newsman, and others
    provided money for them to get new hands. And they're coming to see me.
    And it was unbelievable, incredibly emotional moment, because the
    contrast between a society in which somebody can summarily cut off a
    hand and a society in which people are willing to restore hands was
    vivid and real. These guys understand the stakes about what it means to
    live in a free society. They told me, they said, ``We long for
    freedom.'' And if given a chance, they will--our strategy is to help
    Iraq move toward a free society. Our strategy is to train Iraqis so that
    they can stand up and defend themselves against the few, the tyrants,
    the terrorists, those with dark vision, so that they can stand up
    against them and defend themselves, and that's what you're seeing.
        What you're seeing is a strategy that's working, a strategy that
    recognizes the power of liberty to transform societies, a strategy that
    says people do want to be free, and a strategy that says people are
    willing to stand up and defend their freedom.
        Prime Minister Allawi, who is now running
    Iraq, is a tough, strong guy who believes in the aspirations of the
    Iraqi people. He's a guy who one night woke up in London and saw a--
    people with an ax try to ax him to death, and Saddam had sent them. And
    the ax hit his wife, and it really severely affected her. But he's a guy
    who saw firsthand what it means. And now he's in the midst of that
    country saying, ``Follow me. We're headed to democracy.''
        A free and peaceful Iraq is going to be the kind of place where a
    tyrant can't summarily cut somebody's hand off. And some day an American
    President is going to sit down and talk to a duly elected official from
    Iraq, talking about how to keep the peace in a volatile part of the
    world. And he or she as President is going to say, ``Thank God my
    predecessor and the American people had great belief in liberty to
    transform the world.''
        I want to make two other points, and then I'll answer questions.
    Then I've got to get on the bus.
        Audience member. God bless you, Mr. President!
        The President. Thank you. He has.
        Two other points. I want to emphasize again, free societies are
    peaceful societies and freedom in the heart of the Middle East is going
    to serve a powerful example for Palestinians who are wondering whether
    or not there's a--a free state can emerge. And that's important. That's
    important, especially for our ally and friend Israel, that there be a
    peaceful state grow up. A peaceful Iraq and Afghanistan serve as
    powerful examples. There's a lot of people in that part of the world who
    are watching us like hawks. They want to know whether or not we're
    willing to live out our beliefs. There are reformers--there are women in
    the Middle East who want to hear their--have their voices heard and to
    realize their potential. No, it's important for America to lead and to
    lead with our values.

    [[Page 1791]]

        The second thing I want to tell you is I want to thank the military
    people who are here. I want to thank the military families, and I want
    to thank our veterans who have served as such a great example. Thank you
    all. The loved ones need to hear from the Commander in Chief. We will
    continue to work to make sure your loved one has all the resources
    necessary to do his or her job.
        That's an issue in this campaign. It's an issue in this campaign. By
    the way, I have fulfilled my pledge. We have the largest defense
    increase since Ronald Reagan was the President. Military pay has gone up
    21 percent over the last 3 years. Military housing is improving. When we
    had our troops in combat in Iraq and Afghanistan, I went to the Congress
    and said, ``Look, we need 87 billion additional dollars to support them
    in their mission.'' This is important money. It was body armor and spare
    parts and fuel and ammunition, that which you expect to maintain a
    military operation. It was necessary, and we got great bipartisan
    support. I was very impressed by both Republicans and Democrats who
    strongly supported it. As a matter of fact, the bipartisan support was
    so strong that only 12 Members of the Senate voted against it, 2 of whom
    are my opponent and his runningmate. It's a difference in the campaign.
        When you're out there rounding up the vote, I think it's important
    to remind people of the facts. So they pressed him. They said, ``Why did you do it?'' He said, ``Well, I
    actually did vote for the $87 billion, before I voted against it.''
    [Laughter] That's not the way they talk here in this part of Ohio, I
    don't think.
        I'll support our troops. I met with a lot of moms and dads and wives
    and husbands of people who have lost their life in Iraq. And I told them
    this, I said, ``I want you to know that history will look back upon the
    actions that your loved one has taken in a way that will be powerful for
    your family members because we're changing the world. The sacrifices
    that they made not only helped make America more secure, but it helped
    spread the peace.'' And the best way to honor the memory of those loved
    ones is to complete the mission, is to not grow weary; it's to not tire;
    it's to be resolute and strong in our belief that we will succeed.
        I'm here to tell you, I want to be your President. I know where I
    want to lead the country. I have the energy to lead the country. And I
    want to thank you for your help in helping me win 4 more years. God
    bless.
        Let me answer some questions. All right, we've got a little more
    work to do. Then I'm going to get on the bus. I'll be glad to answer
    some questions. We've got 5 or 6 more minutes.
        Yes, sir. Yell her out.

    National Guard Service/Leadership/Gun Ownership

        Q. I would very much like to thank you on behalf of all of the
    people from the Right to Life.
        The President. Thank you, sir.
        Q. I also want--that people would like to know I'm a lifetime member
    of the National Rifle Association. And Mr. Kerry and Edwards have got F
    minuses, and they said, ``You're the only man.''
        The President. Well, thank you.
        Q. And also, too, that I'm really sorry, on your behalf, of the fact
    that they're trying to bring this issue up about the National Guard. I
    have many, many good friends that served in the Guard during the
    highlight of the Vietnam war. And they--there is eight of them that are
    changing parties because they've had it with the Democrats, and they
    said that they owe us an apology. And Mr. President, what military
    branch did Mr. Clinton serve in? [Laughter] Exactly.
        The President. Okay, never mind. Okay. Look, thank you. I appreciate
    your strong defense. I'm proud of my service. The question is who best
    to be the Commander

    [[Page 1792]]

    in Chief to lead us to peace. That's the question. The question in this
    campaign is who understands what it takes to defend America during these
    troubling times. That's the real issue. I've just explained to you my
    position. I hope everybody is listening out there. They'll be able to
    make up their mind about who best.
        Let me talk about guns right quick. I believe law-abiding citizens
    should be allowed to own weapons. And I believe the best way to protect
    society is to find people who commit crimes with guns and bring them to
    justice, and that's exactly what we're doing.
        Got a question? Sure. Thank you, sir.

    Health Care Reform

        Q. Mr. President, I'm here representing 44,000 brethren who are
    praying for you----
        The President. Thank you.
        Q. ----urgently. And we appreciate very much the stand that you've
    taken on many, many moral issues. We appreciate it very much. And we
    just would love to ask you if you're prepared to take on health care the
    same way you've taken on Iraq? We really appreciate the stand you've
    taken. You've done marvelously in Iraq, and we feel that there's an
    urgent need in relation to health care.
        The President. Okay, good. Good question.
        First, thank you for your prayers. It's an amazing country that
    prays for the President, and I am grateful. And I thank you for that.
        You bet I'm going to take on health care and have, starting with
    taking care of people who can't help themselves. We've expanded
    community health centers all across America, and we will continue to do
    so over the next 4 years. These are places where low-income citizens can
    get primary care. And that's important. You know why? It takes the
    pressure off your emergency rooms. We want people who cannot afford to
    get help to be able to find a place to do so, and the Federal Government
    has stepped up and done that. And we'll expand--we'll expand them.
        Secondly, Medicare--it's a huge part of the Federal budget. And
    campaign after campaign after campaign, people around the country say,
    ``Oh, we're going to fix Medicare,'' and never did anything get done. It
    used to be called ``Medi-scare.'' You know, you'd talk about it, and
    they would bash you over the head with the issue.
        I went to Washington for a reason, and that was to strengthen
    systems that needed to be helped, was to transform parts of the
    Government to recognize the realities of the modern era. And one of the
    key issues I focused on in my first term was Medicare. And we brought
    Democrats and Republicans together, and we got the job done in Medicare.
    We're strengthening Medicare. Let me tell you how. First, seniors get
    drug discount cards for the year 2004, which will provide savings.
    Secondly, there's going to be preventative care in Medicare for the
    first time. Seniors will now get preventative screenings. It's basic
    logic, isn't it? Let's screen for disease before it's too late. Let's
    solve seniors' problems in Medicare now.
        Thirdly, for the first time Medicare will provide prescription drugs
    in the year 2006. And that's important. It's really important. I'll tell
    you why. The old system would pay for our heart operation, but it
    wouldn't pay for the drugs that would prevent the heart operation from
    needing to be in the first place. Now, what kind of system is that? It's
    a system that would pay the 100,000 for the operation but not the $2,000
    to prevent the $100,000 operation from having to occur. And so we said,
    ``Why don't we strengthen the system and give seniors in Medicare
    prescription drug coverage.'' So that starts in '06.
        Fourthly, if you have a plan you like, nothing changes. This doesn't
    force anybody, anywhere. As a matter of fact, it provides additional
    choices. I happen to

    [[Page 1793]]

    believe the more choices people have, the more likely it is the system
    will be responsive to the people. If you can make choice in the
    marketplace, the marketplace will respond. So this new Medicare,
    strengthening of Medicare, has got an additional feature in that it
    helps seniors select a plan that fits their needs as opposed to kind of
    a one-size-fits-all plan out of Washington, DC.
        Thirdly, I told you about HSAs--I didn't tell you about it; one of
    our guests told you about HSAs. I told you about AHPs. Those are ways to
    make sure that a system is more affordable and more available but
    keeping the patient/doctor relationship central to the decisionmaking
    process.
        That, by the way, is a key component of this debate. You listen to
    my opponent talk about it, and you can put it all together--basically
    what he's advocating is a federalization of the health care system,
    which I think is wrong for the country, and I think it's bad for the
    country. And I don't think it's responsive to consumers and to patients
    if the Federal Government is making drug pricing decisions, if the
    Federal Government is making all these different decisions on behalf of
    the consumers.
        Thirdly--fourthly, I talked about medical liability reform. It is a
    necessary part of making sure health care is affordable. One of the
    reasons why there's working uninsured is because of the cost of health
    care. And if we can deal with the root causes of the cost of increasing
    health care, more people will get insurance.
        I think there needs to be tax credits for working uninsured. I think
    we need to help small businesses with HSAs. I'll talk about that a
    little later on here during the course of the campaign.
        I talked to you about--you got me going here. [Laughter] I talked to
    you about technology. This is--health care is an industry where somebody
    takes a file and puts it under his or her arm--I'm exaggerating a little
    bit, but I'm pretty accurate--and goes from one office to the next. And
    the files are handwritten, and doctors don't write very well. [Laughter]
    What I'm telling you is, is that unlike a lot of other industry, the
    technology hasn't changed how health care is delivered and how the
    administrative costs of health care are--they haven't helped reduce the
    costs of health care like it has in a lot of other industry.
        And so this administration started a plan to encourage the
    development of an electronic medical record for every citizen in the
    country, with privacy rights. That will help streamline and reduce costs
    in medicine. They estimate 30 percent cost reduction in medicine when we
    get technology introduced into the health care industry.
        And you say, ``Why can't you do that tomorrow?'' Well, there's got
    to be common language. I mean, there's a lot of issues that have to be
    dealt with, and the Federal Government can help.
        Finally, let me talk about drug costs right quick. I think the best
    way to deal with drug costs is to ensure--is to encourage generic drugs
    getting to the market faster. One of the things it seems like makes
    sense to me is to make sure that we continue to have incentives for
    research and development in the pharmaceutical industry to keep looking
    at new horizons of how to save lives and how to improve people's lives
    with new medicines. But this business about stalling the advent of
    generic drugs, which are much cheaper than brand-name drugs, has been
    stopped by administration--this administration, which will encourage a
    much cheaper drug to be available for consumers on the market but yet
    able to do the same thing the brand drugs do.
        That's a long answer. As you can tell, we're on it. [Laughter] But
    what I won't allow happen so long as I'm the President is for the
    Federal Government to run your health care system. I think that would be
    a mistake.
        Okay, last question. There he is right there. Yes, sir, soon-to-be-
    voter.

    [[Page 1794]]

    President's Reading Habits/Freedom of Religion

        Q. Thanks for coming. I was just wondering what your favorite book
    is, because I'd like to read it.
        The President. Book--that's a great question. Well, I--the Bible.
    [Applause] Hold on. Hold on. I read the Bible. I like history. I read a
    lot of history. I'm not so sure this one will be appropriate for you,
    but I just read the--a very thick biography on Alexander Hamilton.
        But I would suggest reading history, because history is a--I think
    it's important to understand the past so you can better see the future.
    Like I just told you something about the past that gives me confidence
    about the future, and that was when Japan and the United States were at
    war, and then we worked to encourage Japan to be a self-governing, free
    nation based upon democratic institutions. And out of that came a
    country that is now a friend and an ally as opposed to an enemy.
        See, enemies--liberty can turn enemies into friends because we have
    shared values. When we--when we're free nations, we share values. Human
    rights is a shared value of a free nation; human dignity is a shared
    value of a free nation; the right to worship the way you see fit.
        Let me say one thing about religion real quick. It is very important
    that this Nation always hold--always maintain this vital tradition: You
    can worship any way you see fit. If you choose not to worship, and
    worship, you're equally American. It's important for people to
    understand that. We must never lose that vital aspect of the freedom to
    worship the way you choose. Now, if you choose to worship an Almighty
    God, you're equally American if you're Jewish, Christian, Muslim, Hindu.
    It's the great tradition of America, and it's a tradition that must be
    maintained. It's a part of, when I say ``shared values,'' that's a
    shared value of a truly free society, isn't it--the freedom for--in
    somebody, that personal freedom to choose or not to choose to worship an
    Almighty is a vital aspect of the integrity and vibrancy of this great
    society of ours. And it's important--that's an important lesson, little
    guy, for you to remember when you get to be the President. [Laughter]
        At any rate, I want to--I hope you've enjoyed this as much as I
    have. I'm excited about this election. There's no doubt in my mind, with
    your help, we will be back in the White House for 4 more years.
        God bless, and God bless our great country. Thank you all.

    Note: The President spoke at 1:36 p.m. at Lima Senior High School. In
    his remarks, he referred to Gov. Bob Taft of Ohio; Ohio Secretary of
    State J. Kenneth Blackwell; Karel Oxley, superintendent, Lima City
    Schools; former President Saddam Hussein of Iraq; senior Al Qaida
    associate Abu Musab Al Zarqawi; Prime Minister Junichiro Koizumi of
    Japan; Chairman Kim Chong-il of North Korea; and Prime Minister Ayad
    Allawi of the Iraqi Interim Government.