Thank you for doing this. One of the things that we have to recognize in Congress is that policies really make a difference. Wages have stagnated; people haven't had a raise in 15 or 20 years; and there are a lot of reasons for that. Some…
Thank you for doing this.
One of the things that we have to recognize in Congress is that policies really make a difference.
Wages have stagnated; people haven't had a raise in 15 or 20 years; and there are a lot of reasons for that. Some of it is globalization. A lot of it has to do with the weakening bargaining power of unions that were so helpful in improving living standards for everyday Americans, not just for the members of the union but for others who benefited by the commitment of unions to good jobs, good wages, and safe working conditions.
There are pressures with globalization that have reduced bargaining power. It has made things cheaper to buy but has really helped contribute to lower wages. The bottom line is that we need policies in order to focus attention, as you are saying, on the middle class and improving their purchasing power, giving them what the middle class has always had: a wage or a salary where, at the end of the month, they can pay their bills, set aside a little money for college, set aside a little money for a vacation, set aside a little extra money for retirement. That is a basic contract that we should be making.
We have got a variety of things where we have created policies and undercut the capacity of the middle class to sustain itself.
The tax policy is out of control. It is really outrageous when we have been passing these Bush tax cuts that are skewed very heavily toward high-end folks with the notion and the assertion that it will create jobs through trickle-down economics. It hasn't worked.
When we have entered, in some cases, into trade agreements, it didn't take into account the environmental and labor standards that are so essential to having a level playing field. American workers are willing to compete, but it has got to be on a level playing field.
Then basic things that a confident nation always invests in, even in tough times, like education and the future. We grew up, and those ahead of us had the GI Bill. They came back from serving their country and got a free education. But you know what? They paid it back, and then some, with their productivity.
We established Medicare and Social Security that has provided a safety net for older people. We are trying to make inroads now into providing a secure health care system for everybody through the Affordable Care Act, but we have a big challenge in bringing down those costs.
We have an opportunity to invest in, as you were saying, not just the higher education, but job training for people so that they have the skills that we need to compete in a modern economy.
And the infrastructure that you mentioned, how is it that in this country, where we have extraordinary engineers, extraordinary needs, and bipartisan agreement that we have to rebuild our roads and our bridges, extend broadband throughout the country, including in rural areas of Vermont and, by the way, rebuild our schools, rebuild our hospitals, all of these are institutions that are essential to the well-being of local communities that are where the middle-class people live, so I really appreciate your focus on this.
What is frustrating, I think, for America and for a lot of us in Congress is that our focus on policy is how many more tax cuts should we give to folks who don't need them, how much more should we spend on things that don't reward investment and hard work, and for how long are we going to continue this disinvestment in science, in research, in medical research, in infrastructure, and in education.
I am pretty amazed, as I know you are, that young people getting out of college, on average, have a $30,000-plus debt. Many have accumulated debts in the range of $100,000, and a lot of those debts are shared by their parents who have cosigned. They pay higher interest rates. A lot of those parents who have finally paid down their house and were looking forward to maybe taking a 2- or 3-week vacation, maybe a cruise, suddenly find themselves saddled, along with their kids, with these very high monthly payments for education.
So there is a bipartisan desire, I think, to help the middle class, but we are in a debate about what the solutions are. Essentially, one argument is that no taxes, no regulation, will somehow lift all boats. I don't think I have seen evidence that that is the case. Another argument is you have got to make sensible, prudent, disciplined decisions about how and where to invest in the future of this country.
So, Mr. Garamendi, I salute you for your advocacy here and for speaking so eloquently on this issue that I think is the issue of our time.
That is exactly right.
If I may, Mr. Garamendi, you are so right. One of the upsides of this really tough economy is that interest rates have gone down, and a lot of folks have been given a little breathing room by being able to reduce their interest rates on their mortgage from 7 or 8 percent down to 3\1/2\ percent. That is real money in their pocket.
Why not allow students and parents who have cosigned on students loans that same opportunity to save a few bucks? They will pay those loans back.
So I salute you.
Well, I thank you for your leadership.