Thank you. This is, indeed, a desperately needed caucus because we have not had enough of a voice from either party standing up for the middle class and these basic values. I spent the weekend meeting with workers who had recently been…
Thank you.
This is, indeed, a desperately needed caucus because we have not had enough of a voice from either party standing up for the middle class and these basic values.
I spent the weekend meeting with workers who had recently been laid off as another factory had closed down and gone overseas. These are people who worked for 20, 30 years at a time. I talk constantly, also, to people who have just recently gone through college, everything we're supposed to be encouraging right now in our society in order to compete in this global economy, but they come out shackled with so much debt with the cost of college that they can't serve their community in the way that they had hoped to, people that wanted to become teachers and come back to rural communities, like the ones in my district, but simply cannot afford to do it.
And we have gone from investing in a future middle class to crushing the current middle class because we started a cycle of debt. Instead of coming out of college with that opportunity in the world before you, you come out already in that kind of debt from college. And instead of those years that we used to spend saving money for a down payment to buy that first home, that next great step for middle class families, you spend those years, instead, spending all of your savings to get out of those loans. So by the time you go to purchase that home, you may have zero down on that house, and we all know how that story ends.
We aren't giving people that opportunity to do the very things we need them to do: to save, to invest, to educate, to prepare themselves to compete in the global workforce. And the cycle of debt continues.
Then we have credit card companies and predatory lenders coming out so that people continue to try to eke by month by month living from debt cycle to debt cycle. This is the new story of yesterday's middle class.
It is time, once again, to have the kind of values in this country that reward work and good behavior, reward the people who are saving and doing everything right to play by the rules instead of investing-- instead of shifting our priorities too often away from the very people that are at the backbone of this country.
So I believe this is a much-needed effort to restore the middle class. And one great place to begin is by making college affordable. And I am proud that we have already put forward a $2,500 tuition tax credit to help middle class families afford that dream. But we know that's not enough to go forward to make college affordable.
But it's also something that is helping our displaced workers be able to go back and maybe pick up a community college course, move into the health care sector or another field where they can earn a living wage to support their family. But they say to me, ``That's a 2-year program. What am I going to do during those 2 years when I have just lost my job?''
We are not in an economy that reflects--we are not supporting policies that reflect the economy we now face. We no longer have an economy where people have one job for 30 years and that company takes care of them.
And last of all, I just want to mention, why is it that through this recent economic crisis our community banks have remained rock solid in most of our communities, good Main Street values, Main Street capitalism that has continued to make good loans to good people that still believe in the honesty of a handshake and looking somebody in the eye. This has remained solid while the speculators and others have played poker with our pension funds and our future. It's time to start getting support back to those people who are the bedrock of our community, Main Street and the middle class. And I look forward to working with you on that.
I thank the gentleman for yielding.
I want to pick up on the point that you just raised which is the idea that accountability is anti-Wall Street.
The money managers that I know are looking for certainty. One of the worst things we can say to the market is to introduce the uncertainty of not knowing what the rules are, because the fact is one of the middle class values you discussed is basic responsibility. When we reward responsibility, that is a good thing for the middle class. There were many, many investment firms and others on Wall Street who knew the mortgage-backed securities were out there who could have taken--had much better quarters in the short-term, but they chose not to engage in these very high-risk speculative investments.
What we did instead was we have now bailed out some of the least responsible, most speculative agencies, and not rewarded the responsible ones, and we see the same things on Main Street.
And you talked about no extra paperwork. It is so important that we draw a distinction between our community banks, who have been responsible through all this, and the megabanks, who have been driving the problem, so that we don't respond by punishing the responsible actors in our community who have really held things together when we've been right on the brink of a depression.
I would say Madoff wasn't the only one running a Ponzi scheme. In many of these lending institutions it was the same thing. When you start getting debt equity ratios of 10:1, 30:1, 100:1, that is not an accountable system. And we found people who are trying to find every loophole they can push through with huge amounts of capital to do high risk. And they want all the upsides during the good years, and then they don't want to have to face the downsides in a bad cycle.
Now, we're all in this together. The President's been very clear about that, and he's right to speak to that. But the fact is, part of how we're in this together is to make sure that those people who made horrible mistakes are held accountable.
I think we need to look seriously at issues of fraud, fraud in many of these institutions and elsewhere, and even continuing to see the way that some of the markets are fluctuating based on reporting in January and February versus March as we head to the end of the quarter.
We need to have basic accountability so that the average middle class investor has some guarantee that when they are looking at the market they're getting accurate information; if they're being responsible enough to save and have a 401(k), that they're not going to see that disappear just because of Ponzi schemes being run on Wall Street.
And our job is to make sure that the common good is protected, and when we put basic rules in place, not paperwork, but basic rules of accountability that reflect these middle class values, then the market flourishes. We have entrepreneurship that is unmatched anywhere else in the world. We have capital in this country, and we have workers ready to work. We can and must still out-compete the rest of the world. We do that by creating a system that allows people to have a certainty to make those investments, to start that business, and we need to make sure that we are encouraging that kind of innovation.
I come from a part of the country that has been hit hard by global trade over recent years. We've been devastated as furniture factories, textile mills, and tobacco jobs have all gone overseas. We have an opportunity now to turn yesterday's tobacco area into tomorrow's green energy area, but part of how we do that is get private capital moving investing in these areas and creating the kind of small businesses and middle class jobs of the next generation. But we can only do that if we have a system of accountability in place that can give people the certainty that they need.
You talked about the importance of deferred gratification as a middle class value, not spending the money that you haven't yet saved. Well, we have instead seen a culture of instant gratification, whether it's the greed is good mentality that we've seen by some on Wall Street, to the get rich or die trying attitude that you see in hip-hop. This goes from pop culture to the elites and across the board.
What we need to do is get back to that idea of basic personal responsibility and rewarding responsibility, and that's an environment I think in which entrepreneurship and hard work will flourish.
Thank you for yielding. I just want to take a moment on this issue of trade.
I think there's an attitude among the elites and among the mainstream media that assumes anything other than blind, free trade is somehow idiotic, and there's a concern that this populism is about mob rule. Well, populist values aren't about pitchforks. They're about pragmatic results.
And I think for every model someone can show me on free trade, I can show you reality and empirics. This is not about a theory cooked up in academia about trade. It's about the reality of how the tiger economies and others have competed. It has not been some blind march to trade liberalization. It has been smart, strategic decisions by each of those countries to play to their comparative advantages.
I think that we have been negotiating from a position of weakness in these trade deals instead of negotiating from strength, and I think it's cost the middle class and the working class jobs. I think sometimes there's an incredibly naive attitude by those who would look down their noses at those who would engage in middle class and populist values, when in fact I think the empirics are on our side.
So I think what's important in this, again, is not that we pick up the pitchforks but that we produce results. I think what we're about is looking at pragmatic solutions that take back some of the raw deals that the middle class has gotten for the last 20 years, particularly the last few years, and starts to stand up for those middle-class families and working class families who are getting up every morning and working hard and playing by the rules and suddenly being asked to bear the brunt of everyone else's mistakes.