37th Annual Meeting of the Blackhawk Credit Union
Saturday, March 2, 2002 Janesville, WI
Thanks. It's great to be here with all of you tonight. Looking back over the past year, I don't need to tell you that it's been a very tough time for a lot of people. As you know, the U.S. economy entered a recession last March though I think it's safe to say that Wisconsin's manufacturers were feeling the impact of the slump even before that time. Then, September 11 delivered a serious blow to our already-rocky economy through the sheer shock of the horrible attacks on our country, the impact these had on air transportation and other sectors, and the uncertainty it all created. Meanwhile, many of our factories and workers have been hurting from production cuts and layoffs.
I've talked to a lot of people who are still looking for work and struggling to make ends meet. Others are worried that they or their spouse might lose their current job.
Now, there are some signs of a light at the end of the tunnel. For example, orders to U.S. factories for durable goods rose 2.6% this January. This increase was more than expected and reflects greater demand for goods such as cars, computers, and machinery. And this week Federal Reserve Chairman Alan Greenspan said he thinks an economic recovery "is just getting under way" though he believes it is likely to be a more subdued recovery than we usually see after recessions. Also, judging from past experience, Fed officials expect the nations jobless rate to rise somewhat this year, as recovery begins.
That said, I don't think we can afford to sit back and simply wait for the economic picture to brighten. We need to keep looking for ways to grow the economy and create jobs so people can get back to work and those who have work will be more secure in their jobs. Since September, I've voted three times for economic security legislation that would encourage the kind of business investment that means more orders for our factories and more good jobs overall.
Just last month, the House passed the latest version of this legislation. It would help displaced workers by extending unemployment benefits and providing refundable tax credits covering the cost of 60 percent of the health insurance purchased by those eligible for unemployment benefits. On top of this, it included tax provisions to spur economic growth and help businesses expand and create new jobs. Unfortunately, the Senate has prevented this legislation from becoming law so far. But we can't let this discourage us so that we give up on enacting pro-jobs, pro-growth legislation.
Beyond this, I think it's also important to look at other parts of the whole economic picture. As credit-union members, you know that long-term financial security for you and your family depends on more than your job and the amount of after-tax income you bring in. There are other factors that can make a big difference. For instance, the amount you spend on health care costs now and into retirement can take a big bite out of the family budget. Likewise, if you have health care coverage through your employer, the amount your employer spends to provide that coverage has an impact on how much money is left over for raises, business expansion, and new hires.
That's why I think it is important for us to look for ways to make quality health care more affordable and accessible. For example, the Patients' Rights legislation that I supported last year would establish Association Health Plans (AHPs) to make it easier for small businesses to offer health care coverage and expand Medical Savings Accounts (MSAs) to make health care coverage more affordable.
Another big part of your financial security over the long-term is how you prepare for retirement. Retirement security for Wisconsin's seniors depends not only on a strong and reliable Social Security system, but also on personal savings and employer-sponsored pensions. I agree with the President that we need to remove obstacles to saving as well as toughen protections for savings.
We've already made progress in the past year by lowering taxes which gives American workers additional freedom to invest in their retirement security. We've also raised contribution limits on IRAs and 401(k) plans to remove barriers to people's ability to set money aside for their future. And the new tax law allows Americans, once they reach the age of 50, to make "catch-up" contributions to their IRAs and 401(k) which especially helps those who have taken time away from the workforce.
Now we need to pursue policies, as the President has called for, that will:
In closing, there are many factors that contribute to financial security for all of us and our families. A good, strong economy, job security, and job opportunity are the cornerstone but we also need to pay attention to things that make a big difference in the long run such as retirement savings and the accessibility and affordability of health care coverage. I will continue to pursue these issues and work in Congress to support laws that encourage investment, economic growth and job creation. And I'd like to ask you for your help in this effort. When you have concerns about things the federal government is doing that impact your ability to support your family or save for the future let me know about it. I want to know what you're dealing with so I can represent you in Congress and bring your concerns to the table when we deal with these issues.
Thank you.