Congressional Record—Senate S5683
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May 25, 2001 CONGRESSIONAL RECORD — SENATE S5683 when they move up, they will always people to come in. They come in, we society in the world, the freedom to be replaced statistically with someone make a presentation to them. Say move both up and down the ladder is who is earning less than they are who there are 30 or 40 people in the room. greater than anywhere else. ends up in the bottom 20 percent. We make a presentation for an hour. If we can understand those things, we Interestingly enough, when we had We break for coffee and only 10 of them can come to a more intelligent decision hearings before the Banking Com- come back afterwards. All 40 of them with respect to where the marginal mittee on the issue of the Tax Code and are unemployed and want a job, but 30 rate will be. I have no illusions that tax relief, and Alan Greenspan was tes- of the 40 decided they did not like the the conferees will bring the marginal tifying before us, one of the members way we made the presentation. And rate in at the level that I would like, of the committee said to him: Mr. they can always walk down the street but I hope that once it comes in, in fu- Chairman, with respect to the good and get a job someplace else. ture Congresses we can keep all of this economy we are enjoying, tell us who That is the impact of a booming in mind and take another bite at the has benefited the most in terms of the economy on the people at the bottom. apple at some particular point. economic strata of the United States, It gives them an opportunity that will My desire would be to bring the top which group has gotten the greatest make a more dramatic change in their marginal rate back down to where it benefit out of this good economy? lives than the change in the lives of the was during the decade of greed where, Knowing the political orientation of people at the top. That is what Alan quite frankly, we sowed the seeds of the Senator who asked the question, I Greenspan was talking about when he the great economic expansion about think he was expecting and hoping that said in terms of the impact for good on which we are all excited and for which Alan Greenspan would say: Well, this people’s lives, there is no question politicians of both parties have been economy has mainly benefited people whatsoever but that the booming econ- taking credit when, in fact, they have at the top and the people at the bottom omy we are having has affected for had little or nothing to do with it. have not gotten anything out of it. good more people at the bottom than it I think the work I did at the Frank- I think the Senator was a little sur- has people at the top. lin Company before I came here had prised when Alan Greenspan said: Yet from the rhetoric we hear around more to do with creating jobs than Without question, the people who have this Chamber, we are told over and anything I have done since I have been benefited the most from this good over that if we do not somehow take here. I want to get the marginal rate economy are the people at the bottom money away from the people at the top back down so others who are trying the of the economic scale. and shift it to the people at the bot- same kinds of things we did will have Then he was asked how can that be tom, we are going to destroy American the same opportunity that we did. because statistically the top 20 percent I yield the floor. democracy. The PRESIDING OFFICER (Mr. has gotten richer than the bottom 20 This class warfare kind of rhetoric percent. But Alan Greenspan pointed HAGEL). The Senator from Michigan. simply does not jibe with reality. It Ms. STABENOW. Mr. President, I ask out a great truth: It probably does not does not jibe with what we have experi- make any difference—I am not quoting unanimous consent to speak up to 15 enced in the last 10 years. It does not minutes in morning business. him now; this is my summary—it prob- jibe with what the economists tell us is ably does not make any difference The PRESIDING OFFICER. Without reality, and it certainly does not jibe objection, it is so ordered. whatsoever to Bill Gates whether his with that which the small business f portfolio is $60 billion or $80 billion in man and small business woman will terms of his lifestyle. He still has his tell you in terms of actual job creation. TAXES AND THE ECONOMY big house at $60 billion. He still has all Of course, the statistic we need to Ms. STABENOW. Mr. President, I of his opportunities at $60 billion. His keep in mind is that the great job-cre- rise to speak also about the tax cut life has not changed at all if it goes ating machine in this country is not proposal, about the debate on how to from $60 billion to $80 billion. the Fortune 500. The great job-creating However, someone who cannot get a keep the economy going. I rise in great machine that is creating new jobs is job, who suddenly finds that he or she respect for my friend from Utah, who not headed by Exxon, General Motors, can and become gainfully employed for was successful in business, and lays out Ford, and DuPont. No, the jobs are the first time in his or her life sees an a prospective about how to keep the being created the way the jobs were enormous change, and that, indeed, has economy going. created in the circumstance of which I While I share his view that we need been the primary impact of this good was fortunate enough to be a part: A to be focused on a skilled workforce economy. It has virtually, at least for company started in a basement by a a period of time, eliminated unemploy- and that is critical to keeping our husband and a wife that within a dec- ment. economy moving, he and I represent I can remember when we thought ade has created 4,000 jobs, and in the two different views of how best to do structural unemployment in this coun- process of creating those 4,000 direct that. That is the debate going on in try was about 6 percent, and when we jobs, among the suppliers, there are an- Washington now. I characterize it as a got down to 6 percent, we had func- other 2,000 to 3,000 to 4,000 jobs as peo- debate about whether or not the 1980s tional full employment. We saw unem- ple are hired to produce the articles or the 1990s worked. I argue the bill ployment go down below 4 percent at that our company has to buy in order that will come back—whether tonight, times in the recent boom situation, to provide its product to its customers. tomorrow, or next week—is a bill based and who got those jobs? People who As we wait for the report to come in on the notion that the economic policy were unqualified for the jobs that were from the conferees as to where they are of the 1980s worked. I argue from the available when unemployment was going to put the marginal rate, I want- Michigan standpoint, and anyone in higher. ed to take the time to make it clear Michigan, any families, businesses, I remember visiting with employers that the political rhetoric that flows farmers I represent, would indicate the in my State and asking them: What is around this issue really has little or no 1980s were not a good time for Michi- your biggest progress in this booming connection with reality. gan. We had high unemployment, high economy? In reality, a lower marginal rate pri- interest rates. We saw massive debts They said: We cannot hang on to marily helps small businesses to grow. both at the State and national level. It workers. We will take any warm body. A lower marginal rate is crucial to the is the same kind of approach I fear will We need workers. rate by which small businesses grow. be happening today with the policies I said: Will you take the unskilled? The rate at which small businesses being laid out. They said: Absolutely, we will take grow is the most important dynamic in No. 1 in the debate is how to give a the unskilled and we will spend the terms of how the economy is growing, tax cut. Is it supply side, as my col- money training them; we will spend and for those who get statistically league talked about? the money making them skilled be- hung up on the gap between the top 20 The proposal we are being asked to cause we have to have people. percent and the bottom 20 percent, vote on is a very large tax cut, two- One employer said: We have a job fair they must remember and recognize thirds to the upper income wage earn- opening where we rent a room and ask that in America, more than any other ers, those in the top 10 percent. And VerDate Mar 15 2010 03:51 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S5684 CONGRESSIONAL RECORD — SENATE May 25, 2001 then we wait for it to trickle down.