Emanuel Addresses the Chicagoland Chamber on Plans to Strengthen American Economic Security

CHICAGO, IL—Today, Friday October 6, 2006, U.S. Representative Rahm Emanuel (D-IL) addressed the Chicagoland Chamber of Commerce and highlighted his ideas about strengthening economic security.  Emanuel talked to Chicago's business leaders about his plans to combat the high cost of health care and energy and offered his ideas to provide middle-class working families with tax relief highlight plans to help ensure an educated workforce and enhance fiscal responsibility. 

The following are excerpts from this morning's address as prepared:

"... As Democrats take our message to the voters, you've heard a lot about what we oppose. What I'd like to do today is focus on what we propose. We have a positive vision for America's future. 

"...My friend from the Clinton Administration Bruce Reed and I recently wrote a book called The Plan. We tried to spell out exactly what it means to offer sensible, bipartisan ideas across a range of issues: national security, the economy, education, health care, and energy.  In that book, we talk about a 'new social contract.'"

"...In the past few decades, America has changed dramatically, and your companies have changed with the times. You have made investments in technology, energy efficiency, training...But, the government hasn't kept pace.  What changes we were making, stopped in the '90s.  Whether it's health care, the budget, or energy, government hasn't kept pace.  America's 20th Century social contract no longer holds true.  The fact is that good public policy, makes for good economic policy. 

"...In the 1990s, President Clinton turned a $300 billion projected deficit into the first balanced budget in 30 years - and then he created a surplus. But since 2001, we've had 5 straight years of record deficits, and President Bush has added $3 trillion to the national debt - more than each of his 42 predecessors combined!

"...Yesterday, the New York Times reported that the interest we owe on the $8.5 trillion national debt is expected to rise from $184 billion in 2005 to $220 billion this year, up nearly 20 percent. That increase - $36 billion - makes interest the fastest-growing component of federal spending. 

"...So how do we get out of this mess?  We need to fix the budget process, and it starts with fiscal responsibility.   In 1990, the first President Bush sat down with Democrats and Republicans for a Budget Summit.  We should have a budget summit of our own.  And that will be a first order of business if the Democrats win in November.  We would reinstate the Pay-Go rules of the 1990s: no new spending initiatives & no new tax cuts unless they can actually be accomplished without adding a dime to the deficit.

"...In the past few months we've seen gas prices fall, but nobody thinks $2.50 is cheap.  Gas prices are nearly double what they were before George Bush took office.  The truth is we need more supply, but we can't drill our way out of this crisis.  We need an energy policy that encourages energy efficiency, as well as a diversification of sources. 

"...We need to create a Hybrid Economy to reduce our dependence on foreign oil and on the hostile/unstable governments who control that oil.  A Hybrid Economy would be a Hat Trick - a win for our foreign policy, the economy, and the environment - not to mention our children and grandchildren.

"...President Bush is talking up record corporate profits, a rising stock market and strong GDP numbers - and he's asking why he doesn't get more credit for a strong economy. The answer's simple: many Americans aren't benefiting.  Middle-class families see a very different economy.  They see a weak jobs market and flat wages.  At the same time, housing, health care, education and transportation costs have gone through the roof. 

"...As a result, millions of families are borrowing to make ends meet.  They are leveraged as never before, and they're unable to contribute to a "rainy day" fund or save enough for college or retirement.  Many feel they're one job loss or medical emergency away from financial catastrophe. Their economic lives are filled with uncertainty and risk. And the fact is, the tax and economic policies of this Administration and this Congress have accelerated and exacerbated these trends.

"...At this point, you're probably asking yourself, how're we're going to pay for all this.  We have a system that rewards special interests with corporate welfare, earmarks, and tax benefits - all of which subvert the free market and few of which create economic growth.  

Senator McCain has estimated that corporate welfare is costing the American taxpayers $1.8 trillion over ten years.

"...Without question, the Republican's biggest failure on the economy has been their inability to provide solutions to skyrocketing health care costs.  Since 2000, health care premiums have risen 73%.  Annually, we spend $2.1 trillion on health related expenses -- $5,267 per person, and twice the median for the industrialized world.

"...Reducing the cost of health care would not only benefit millions of Americans, it would also be good for the economy.  And the first thing we should do is speed up the use of Health Information Technology.  Second, we should restructure our health care system to reward outcomes, not tests.   Third, we need to help people stay healthy by encouraging providers and employers to steer their employees toward fitness and wellness programs.  Fourth, we need to leverage the government's buying power through the negotiation of lower prices, and allowing employers to buy into the Federal Employees Health Benefit Program.  Finally, we should ensure that every child in America has access to quality health care.

"...Republicans are claiming that Democrats want to raise taxes.  Nothing could be further from the truth.  Democrats are fighting to extend the tuition tax deduction, the deduction for teacher's out-of- pocket expenses and the R&D tax credit.  The Republicans left Washington, DC last week without even considering these tax cuts.   We cut taxes for middle-class families in the 1990s, and we did it in a fiscally responsible way.

"...Personally, I think that we need comprehensive tax reform...The tax code should encourage middle class families to pursue their dreams - raising a family, buying a home, sending their kids to college, and saving for retirement. 

"...The stark fact is that the U.S. is falling behind other nations in research, innovation and competitiveness.  I have proposed the creation of the National Institutes for Science and Engineering.  In the past decade funding for the National Institutes of Health (NIH) has more than doubled and as a result the United States is the world leader in areas such as pharmaceuticals and medical technology. What the NIH has done for medicine, NISE would do for the physical sciences.  Following that successful model, NISE would dramatically increase funding for R&D in the physical sciences, foster new technologies, and improve the quality of math and science instruction in our schools.

"...It used to be that you worked at the same company your whole life, and when you retired, you could look forward to a secure retirement.  Workers could count on a three-legged stool: Social Security, a pension and private savings.  But today many workers move from job to job, and companies can't afford defined benefit pensions anymore.

And with savings rates turning negative last year for the first time since the 1930s, middle-class families face more risk and uncertainty than ever...That's why it's imperative that we in Washington, D.C. take steps to help middle-class families save more for retirement.

"...There are few times when I agree with President Bush, but he's right about one thing - this election will be about security. But feeling safe is about more than national security, it's also about whether or not Americans feel safe economically...Security is a two-part equation. It's safety from physical threats, and security in the promise of a bright economic future...What I have to offer are ideas that I hope can move the country in a desperately needed New Direction and a vision focused on ensuring everyone has the chance to achieve the economic security they deserve."