[Weekly Compilation of Presidential Documents Volume 40, Number 36 (Monday, September 6, 2004)]
[Pages 1727-1744]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 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

[[Page 1728]]

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.
    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.

[[Page 1729]]

    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 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 vison 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

[[Page 1730]]

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 
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

[[Page 1731]]

going to say, ``Hey, Mr. President, the 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 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

[[Page 1732]]

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 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]

[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

[[Page 1733]]

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.
    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.

[[Page 1734]]

    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 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

[[Page 1735]]

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.
    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

[[Page 1736]]

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?
    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

[[Page 1737]]

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 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

[[Page 1738]]

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 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 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

[[Page 1739]]

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 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

[[Page 1740]]

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 Alawi, 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.
    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

[[Page 1741]]

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/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 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

[[Page 1742]]

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 ``Mediscare.'' 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 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.

[[Page 1743]]

    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.

President's Reading Habits

    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

[[Page 1744]]

Koizumi of Japan; Chairman Kim Chong-il of North Korea; and Prime 
Minister Ayad al-Alawi of the Iraqi Interim Government.