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. My We know as soon as this bill passes why in the world would we be creating folks in Michigan have been waiting there will be requests for very large in- a situation where education funds are for the tax cut of the 1980s to trickle creases in defense again, and other in- going to have to be cut and research down and hit their pocketbooks. Many creases will come forth. To me, what is funds and technology development will have not seen it. We are being asked most intolerable, is the tax cut pro- have to be cut in order to pay for the now to, once again, place it there. I am posed spends $550 billion of Medicare tax cut in front of us? supportive and have voted for tax relief and Social Security to pay for it. That I believe common sense would dictate and will continue to do that. I prefer to is not acceptable. we pay down the debt, we protect Medi- do tax relief that goes directly into the Over the next 10 years, we are seeing care and Social Security, we give a pockets of the majority of Americans. a tax cut and budget proposals that major tax cut focused on our middle-in- Contrary to this tax cut, I believe we spend Medicare and Social Security come families and small businesses and should eliminate the marriage penalty, right before the baby boomers begin re- family farmers, and that we can do not in 6 years, as in this bill, but now. tiring in 11 years. There is no time to that and also be able to continue in- Talk about unfair, that is extremely pay it back. We are going to be facing vestments to keep the economy going. unfair. We are a country that values massive debt if that is the case. I am This is the approach that worked. It family and marriage. Yet we have a tax very concerned about that. is hard to argue with success. The poli- structure that unfairly penalizes those Right now we are seeing the financial cies in the 1990s were successful be- who are married. I support a proposal managers in the country, in the private cause of the hard work of both the pri- and did vote for a proposal to give re- sector, who are beginning to see it, as vate sector and the public sector to lief now to married couples by elimi- well. While short-term interest rates move us out of debt, to balance the nating that unfair tax penalty. are going down, long-term high inter- budget, and to make investments in There is a difference in approach. The est rates are going up in anticipation education and the economy. approach being put forward says a very of the country going back into massive I hope we will take a deep breath and large supply-side tax cut will trickle debt. reconsider what is about to be done in down. Coupled, in the 1980s, with a very I urge Members, it is not too late to the next few hours or the next few large increase in defense spending and stop this train, to put some brakes on days. We can do better than that. not controlling other spending, what it. I propose we create, as we did on Also, when we talk about putting happened? We tripled the national this floor—we had an amendment we money back in people’s pockets, there debt, interest rates were at the highest tried twice to pass—a budget trigger are multiple ways to do that, all which level ever, and employment went down. which says if the phase-in of the tax I support, which we need to do and can In the 1990s we tried something dif- cut dips into Social Security and Medi- do while being fiscally responsible. No. ferent. Tough decisions were made. care to pay for it, if we go back into 1 is a tax cut. No. 2 is keeping interest Revenue was put aside to pay down the debt, we will suspend that action, fur- rates down so your mortgage is down, national debt that had been tripled in ther tax cuts or spending, until the as are your car payment and your stu- the 1980s. We paid it down, slowed the revenue comes in. dent loan—those things are low enough rate of spending. We were able to make In Michigan, we call that common for people to be able to afford those sure we were putting aside money for sense. Don’t spend it unless you have items for their families. Social Security and Medicare and pay- it. We believe fiscal responsibility, Finally, for the senior citizen in this ing those dollars back instead of spend- keeping the budget balanced, paying country who gets up in the morning ing it on other programs. We were put- down the debt, protecting Social Secu- and sits at the table and decides, do I ting those dollars back and paying rity and Medicare are critical and eat today or get my medicine, which back Medicare and Social Security should not be compromised for any too many seniors are doing in the trust funds. We have had very tough other actions no matter how well in- greatest country in the world, we can decisions made to balance the budget. tended. We have a train going down the put money in their pockets by lowering And we did something important in track. My fear is there will be no budg- the cost of prescription drugs. They the 1990s. We focused on real invest- et trigger to stop the train before it will not see much of this tax cut, but ments in education, job training to get goes off the track. That is common they deserve some money in their that skilled workforce, and in research, sense. pocket, too. health research, technology research, We are going to be asked at some If we do this right, if we use good old developed the new technologies that point to vote on a final budget proposal common sense, we can put forward a when combined with an educated work- that spends Medicare and Social Secu- plan that keeps the economy going, force would increase our labor produc- rity moneys for the future. When we puts money in people’s pockets, and tivity. look at the fundamental unfairness, we supports our families in a way that al- It is a very different approach. We fo- see that those who are most dependent lows the economy to grow and prosper. cused on growing the economy by in- on Social Security, most in need of We owe no less to our children. vesting in education, paying down our Medicare health benefits, are those We can do better. It is time to take debt, investing in research and tech- who receive little or nothing from the a second look at what we are doing. nology development, and balancing the tax cut but their Social Security and I yield my time. Mr. President, I suggest the absence budget. Medicare, will help pay for it. What happened? In the 1990s, high in- It is not fair. It is just simply not of a quorum. The PRESIDING OFFICER. The terest rates went down. We have seen fair. We have in front of us a proposal clerk will call the roll. home ownership up. In my State of that kept us moving in the same policy The assistant legislative clerk pro- Michigan, more and more young people track as the 1990s. I urge we still have ceeded to call the roll. and older people are able to have their time to consider that. It is a proposal Mrs. FEINSTEIN. Mr. President, I own home, an important part of the that gives tax relief but makes sure we ask unanimous consent that the order American dream. We have seen unem- condition it upon using none of Social for the quorum call be rescinded. ployment, jobs, go up in the 1990s as a Security and Medicare and that we The PRESIDING OFFICER. Without result of this approach to the economy. keep our commitment to fiscal respon- objection, it is so ordered. We saw budget deficits go down and the sibility and paying down our debt while Mrs. FEINSTEIN. Mr. President, I Federal deficit go down. we do it. ask unanimous request to be recog- This is a no-brainer. What do we The proposal I support also would put nized as in morning business. want? The 1980s or 1990s? Yet what aside dollars for education to continue The PRESIDING OFFICER. Without comes before us in the year 2001 is a set our ability to keep labor productivity objection, it is so ordered. of proposals that takes us back to what going in our country. When we asked (The remarks of Mrs. FEINSTEIN per- happened in the 1980s. We are seeing a Chairman Greenspan at the Budget taining to the introduction of S. 976 are proposal that gives two-thirds of the Committee hearing what was the one located in today’s RECORD under ‘‘In- tax cut to those at the very top, hoping thing driving this economy, he said it troduction of Bills and Joint Resolu- it will trickle down. was increased labor productivity. So tions.’’)

VerDate Mar 15 2010 03:51 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 25, 2001 CONGRESSIONAL RECORD — SENATE S5685 Mrs. FEINSTEIN. I thank the Chair. fiftieth anniversary of the Korean war, Day for writing a book which reminds I yield the floor. among such legendary names as Bunk- the American people of that forgotten f er Hill, Midway, the Battle of the war and of an heroic incident in that Bulge, Iwo Jima and Okinawa. This war by the brave men of the S.S. Mere- KOREAN WAR HEROISM book did not just deserve to be writ- dith Victory. Mr. SMITH of New Hampshire. Mr. ten—it needed to be written.’’ f President, with the approach of Memo- The men of the Meredith Victory, led IN RECOGNITION OF OLDER rial Day, it is my privilege to call the by their captain, Leonard LaRue of AMERICANS MONTH attention of this body to one of the Philadelphia, emerge as the heroes of greatest, yet least known, acts of sus- this amazing story. Every one of the Mr. SARBANES. Mr. President, I rise tained heroism in the history of the 14,000 refugees aboard that ship sur- today in recognition of ‘‘Older Ameri- United States. It occurred 50 years ago vived, plus five babies born enroute to cans Month.’’ Since 1963 when Presi- in the sixth month of the Korean war. safety with no doctors to help. There dent Kennedy began this important In December of 1950 American forces was no food for the refugees, no water, tradition, each May has been des- accomplished the unbelievable evacu- no sanitation facilities, no inter- ignated as a time for our country to ation of 100,000 Allied troops from the preters, and no protection against the honor our older citizens for their many port city of Hungnam in North Korea, enemy. The men of the Meredith Victory accomplishments and contributions to barely hours ahead of the charging accomplished their rescue while sailing our Nation. Those of us who have forces of our two newest enemies, through one of the heaviest-laid mine worked diligently in the U.S. Senate to North Korea and Communist China. At fields in the history of naval warfare ensure that older Americans are able the same time our American soldiers, with no mine detectors. They had no to live in dignity and independence sailors, and marines, managed to evac- anti-aircraft guns in case of an air at- during their later years look forward to this opportunity to pause and reflect uate another 100,000 persons, all North tack. Radio contact with other ships on the contributions of those individ- Korean civilian refugees who were flee- was forbidden for security reasons. To uals who have played such a major role ing their own harsh dictatorship and add to the prolonged tension, the ship in the shaping of our great Nation. We the ruthless Chinese army whose lead- was carrying a large supply of jet fuel. ers had threatened to cut off their The Meredith Victory arrived at Pusan honor them for their hard work and the heads because some had been aiding on the southern tip of the Korean Pe- countless sacrifices they have made throughout their lifetimes, and look our United Nations forces. ninsula on Christmas eve but was not forward to their continued contribu- One of the most heroic acts in the allowed to land because the port was tions to our country’s welfare. evacuation of Hungnam is the virtually already overflowing with refugees and unknown story of a small American Today’s older citizens have witnessed rescued American troops. Captain more technological advances than any merchant marine freighter, the S.S. LaRue wrote later of ‘‘these people Meredith Victory. With space for only other generation in our Nation’s his- aboard who, like the Holy Family tory. Seniors today have lived through twelve passengers, the ship loaded and many centuries before, were them- rescued 14,000 North Koreans—the inno- times of extreme economic depression selves refugees from a tyrannical and prosperity, times of war and peace, cent people of our enemy—old men, force.’’ The ship did land safely on and incredible advancements in the young mothers with their babies on Christmas Day on Koje-Do island, fifty fields of science, medicine, transpor- their backs and at their breasts, chil- miles southwest of Pusan. tation and communications. They have dren carrying children. Their rescue One of the Navy officers who partici- adapted to these changes remarkably was accomplished during one danger- pated in the Hungnam evacuation was well while continuing to make mean- filled voyage of three days and three the late Admiral Arleigh Burke who ingful contributions to this country. nights in bitter winter cold that ended became Chief of Naval Operations. He Recent Census figures reveal that the in safety and freedom on Christmas later said, ‘‘As a result of the extraor- number of Americans 85 and older grew Day. The United States Government, dinary efforts of the men of the Mere- 37 percent during the 1990’s while the through its Maritime Administration, dith Victory, many people are now free nation’s overall population increased has called it ‘‘the greatest rescue oper- who otherwise might well be under the only 13 percent. Baby boomers, who ation by a single ship in the history of Communist yoke. Many unknown Ko- represented one-third of all Americans mankind.’’ reans owe the future freedom of their in 1994, will enter the 65-years-and- The Korean war has been called children to the efforts of these men.’’ older category over the next 13–34 ‘‘America’s forgotten war,’’ and the Larry King, the talk show host, said years, substantially increasing this evacuation of Hungnam has been called ‘‘ ‘Ship of Miracles’ will make you segment of our population. ‘‘the forgotten battle in the forgotten proud to be an American.’’ At the same time the number of older war.’’ I submit, that the heroic story of The book has already won its first Americans is skyrocketing, they are in the men of the S.S. Meredith Victory is award. Mr. Gilbert has been awarded much better health and far less likely ‘‘the forgotten rescue.’’ the Theodore Roosevelt and Franklin than their counterparts of previous Fortunately, this story is now being D. Roosevelt Naval History Prize, generations to be impoverished, dis- brought to the attention of the Amer- awarded annually by the New York abled or living in nursing homes. More ican people in a new book ‘‘Ship of Mir- Council of the Navy League. The Coun- older Americans are working and vol- acles’’ by Bill Gilbert, a former re- cil’s president, Rear Admiral Robert A. unteer far beyond the traditional re- porter for the Washington Post who Ravitz (USNR, ret.), said Mr. Gilbert tirement age to give younger genera- served in the U.S. Air Force during and was selected ‘‘because his book tells a tions the benefit of their wisdom. after the Korean war. The foreword to story of American heroism and hu- These figures show that commitment his book is written by General Alex- manitarianism which has gone over- to programs such as Medicare and So- ander M. Haig Jr. whose career in- looked for 50 years and should be told cial Security, and investment in bio- cluded serving as White House chief of and made a shining part of our mili- medical research and treatment are staff, NATO commander, and Secretary tary history.’’ improving the quality of life for older of State. Appropriately, however, Gen- Admiral Ravitz added, ‘‘At a time Americans. One of our national goals eral Haig served in Korea during the when we are reading other stories must be to ensure all older Americans war and was directly involved in the about what American forces did or experience these improvements. We rescue of our troops and the refugees didn’t do in Korea and elsewhere, Mr. must continue to enact meaningful leg- from Hungnam. The book was released Gilbert has made a valuable contribu- islation to help meet the needs of this by Triumph Books of Chicago. tion to American history of revealing valuable and constantly expanding seg- General Haig states in his foreword, this story of both the bravery and the ment of our society. ‘‘The story of Hungnam and the Mere- goodness of America’s men in time of By 2020, Medicare will be responsible dith Victory is a brilliant yet relatively war.’’ for covering nearly 20 percent of the unknown chapter in American history For these reasons, our nation owes a population. Yet 3 in 5 Medicare bene- that can now take its place, during this debt to Bill Gilbert on this Memorial ficiaries lack affordable, prescription

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