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Presidential Statements

George W. Bush - 2004


Portrait of President Bush

President Bush Discusses Quality, Affordable Heatlh Care- January 28, 2004

President's Remarks at "Focus on Health with President Bush" Event- September 16, 2004

Message to the Congress of the United States- November 17, 2004

President's Radio Address- December 11, 2004





1st Quarter
Remainder of 2005


President Bush Discusses Quality, Affordable Health Care
Remarks by the President on Access to Health Care
Presidential Hall
Dwight D. Eisenhower Executive Office Building
January 28,2004

10:55 A.M. EST

President Bush with at table

THE PRESIDENT: Thank you for being here. Please be seated. Thanks for coming. If you're wondering who these characters are behind me, these are people who have just shared their stories about what it means to be an employer or employee and facing rising costs of health care. The cost of health care is an issue in our country, and we must deal with it in a rational way. And that's what I want to discuss with you today.

I want to thank those folks who are standing behind me for sharing their stories. I will try to do my best to share some of their stories with you. They come from all parts of our country. George Akers, for example, is from Naples. He's here with his boss, who owns the company, a small business entrepreneur. That would be Naples, Florida.

Joe is from Horizon Builders in Maryland. Pam Wimbish is from Illinois. She's self-employed. Rick Bezet is a pastor of the New Life Church in Little Rock, Arkansas. These are people who are working for a living, people who are employing people, people who are worried about health care.

Phil Hadley is, as I told you, is George's boss. He's an entrepreneur. He's a -- one of the great parts of America is the entrepreneurs spirit of our country. The fact that small businesses are vibrant and alive is an important part of the economic recovery of our country. After all, most new jobs are created by small business owners, people who are dreamers and hard workers. But Phil told me he's worried about making sure his employees are covered by good health care.

Lynn Martins is with us. She's a restaurant owner. She is selling food, and at the same time, worried about whether or not the people that are waiting the tables can get insurance.

The Sameses are with us, Krista and Ted. They're self-employed. By the way, Kris is a home-schooler, she home-schools her children. And they've decided to do something about the high cost of health care by taking an innovative approach to buying health care, which I'm going to describe to you here in a minute.

Anyway, thank you all for coming. These are -- their stories are typical stories. Their stories are the stories that occur every day in America, as people make decisions about how to allocate money toward health care.

Fortunately, the positive news is that we've got the best health care system in the world. And we need to keep it that way. We need to keep it that way by keeping the private market strong, by resisting efforts that are happening in Washington, D.C., to say the federal government should be running health care. See, we don't believe that. I don't believe it. I believe the best health care system is that health care system generated in the private markets.

And the best way to keep the private markets strong is to make sure we've got the best research and development; is to make sure the doctor-patient relationship is strong; is to empower consumers to make more choices, is to give them more opportunities to make choices in the private sector.

We're making progress in terms of the modernization of the health care system, starting with the Medicare bill that was passed. The Medicare bill said we have an obligation to our seniors in our country and we need to fulfill that obligation. And for the first time since Medicare was founded, I had the honor of signing a bill that modernizes the system, which essentially says there needs to be prescription drug coverage for seniors, there needs to be preventive care available for seniors, and seniors need to be given options to choose from, to tailor a program that best meets their needs.

The Medicare bill is a vital part of a vibrant health care system. I was proud to sign it, and any attempts by Congress to weaken it will meet my veto.

One of the ways to help make sure health care functions better is to help people who can't afford health care to have access to health care -- access other than emergency rooms and hospitals. And so I'm a big proponent of what's called community health centers that operate primary care services in rural and under-served urban areas. When I showed up here in Washington there was about 3,000 of them. I vowed that we would expand and/or open 1,200 more. We've done 600 -- we've met 600 -- we've fulfilled half our obligation, as far as I'm concerned. And in the budget I'm submitting, we will finish the additional 600 in years 2005 and 2006.

This is a smart way to make sure that people get health care. It's more cost-effective that people are able to go to these centers and not go to an emergency room, which is, by far, the most expensive way for somebody to get health care.

Congress needs to pass refundable tax credits to help the working uninsured. It's an approach that says, we trust low-income Americans to be able to make the rational decision for their health care. Another thing we need to do here in Washington is to promote the -- make sure health care technology is widespread, that the -- even though medicine is modern in the sense that we're making great new discoveries, it's kind of ancient when you think about how the records are kept. When you're still writing records down by hand and sharing information through files, it's not exactly a modern system. And we believe a lot of medical errors can be saved as a result of the use of proper technology and there will be cost savings to be had, as well.

Another way to save costs, to stop the rise of the cost of health care, is there for to be rational laws in dealing with doctors. Our legal system is out of control right now. There's just too much litigation. There's frivolous and junk lawsuits all over the country. It's like there's a giant lottery and the lawyers are the only winners. And we're driving good docs out of business. Make no mistake about it, a lot of good docs are stopping to practice medicine because their premiums are going up because of the junk and frivolous lawsuits. And so these lawsuits, which are -- people will settle just to get them out of the way -- raises costs.

Doctors, for fear of being sued, practice what's called defensive medicine. That raises the cost. As a matter of fact, the cost of premium increases and the cost of defensive medicine -- in other words, prescribing too much to cover yourself so if you get sued you can say, well, wait a minute, I did everything I could -- costs the federal government about $28 billion a year. Think about that -- $28 billion. That means it's costly to the taxpayer.

I view this as a national issue that requires a national solution. And so I proposed medical liability reform. The House passed a good bill which recognizes that if, by the way, you get hurt, you ought to recover full economic damages. In other words, if a bad doc practices bad medicine, there ought to be a consequence. But there ought to be a cap on noneconomic damages.

The House passed the bill. It's stuck in the Senate. Senators have got to understand if they're truly worried about health care costs, we need medical liability reform that's fair and reasonable -- fair and reasonable. We want health care to be affordable and accessible. When you drive doctors out of business and drive the cost up because of lawsuits, medicine becomes less affordable and less accessible.

The Medicare bill I signed in December created an additional tool that will help workers lower their health care costs, and they're called "health savings accounts." They became available on January 1st. Health savings accounts address a growing need in our health care system. These accounts will help working Americans afford health insurance that is growing out of their reach. They will help restrain the health care costs that are affecting us all.

Right now, many insurance plans will cover virtually all of your health care costs, in exchange for a high-premium payment, which is paid by employers and their employees in various percentages, in different percentages. Under America's system of private medical care, families will continue to have this option, of course. We just want to provide additional options for families from which to choose, and the health savings account is one such option.

Under the system that currently exists, consumers really don't know how far their health care dollars are going. You pay the premium and then you just show up and collect the benefits. You have no idea what you're spending money on. They pay a flat rate for insurance, but they really don't know the true costs of medical services they receive. There's no demand for better prices. There's no selectivity in the marketplace. There's no pressure on the price structure of health care. When consumers don't have the incentive to get better prices, costs go up.

And that's what's happening in America. And then when costs go up, insurance companies pass on those costs in the form of higher premiums, so everybody pays. That's the current system we have today. And it's those higher premiums and increasing costs that make it difficult for some to have health care insurance.

The doctor-patient relationship is also a vital part of a good health care system. And as these folks behind me said, you know, they got a little tired of having bureaucracies in between the patient and the doc. And that's what's happened in certain segments of the health care industry.

And we need a consumer-driven health care system. And we need better information about health care prices. And a consumer-driven health care system with better information will help control the cost of health care. That's the rationale of the health savings accounts.

The best way to empower citizens is to let them save and spend their health care dollars as they see fit. In other words, start to empower people to make the right decisions with their health care dollars. Give them control of a routine cost so that people see the doctor when they need to, spend their dollars wisely, and still be able to have coverage for major medical bills.

The health savings account incorporates the philosophy I just described. There's two major features. First, to get a health savings account, you or your employer must obtain a separate high-deductible insurance policy to cover major medical expenses, such as surgery or hospital stays. The premiums for these high-deductible plans cost far less than traditional insurance. Yet the plans still cover for major expenses.

Secondly -- the good news, by the way, is insurance companies are now beginning to offer these plans more and more, along with HSAs. In other words, the market is demanding, and the suppliers are providing, these kinds of high-deductible catastrophic plans, I guess is the best way to describe them. They don't cost nearly as much as normal group plans cost.

Secondly, to cover routine medical expenses -- in other words, this part of the -- this aspect of the health care system says, we'll cover major costs for you at a much reduced cost to the consumer. Second, to cover routine medical expenses, such as bills for regular doctor visits or medicines, you can set up a health savings account with up to $2,600 a year for an individual, or up to $5,150 for a family.

Now, contributions to these accounts are tax-free. The earnings in these accounts -- in other words, if you don't spend all the money, and you got that money invested -- the earnings are tax-free, and when you withdraw them to pay for routine medical expenses, the withdrawals are tax-free. In other words, there are incentives built in for people to put money aside to meet routine medical expenses, expenses other than costly catastrophic expenses or high hospitalization expenses. Because the HSA is tax-free, it will save the American -- the Americans between 10 to 35 percent of out-of-pocket medical expenses, depending on a person's tax bracket.

Not only does the HSA start to empower you to make decisions, it actually provides tax relief at the same time. Whatever you don't spend, by the way, in a year -- you put $2,600 in, you don't use all that money, that can be saved for future medical bills. In other words, you start to save money and accumulate money. So instead of sending all your health dollars to an insurance company, you and your employer can use an HSA to lower your insurance premiums, to cover major medical bills, and to keep the savings to cover routine costs, and to save for future issues you may have to deal with.

When more Americans sign up for these HSAs we'll see positive effects for our families and the economy this way: First, many American families who choose HSAs will pay less overall for their health care. People behind me, who have chosen HSAs, will testify that that's the case. I'm going to testify on their behalf here, in a minute. (Laughter.) Insurance premiums will be lower and people will be able to draw from tax-free money to pay for routine expenses.

Secondly, HSAs will encourage people to spend wisely for their routine medical expenses. If you put in $2,600 tax-free, that $2,600 is yours; and if you spend unwisely, you're spending your own money unwisely, and you begin to see the consequences as the savings for that particular -- or the contribution for that year begins to dwindle. When people consider the true costs of their medical care, they will push health care providers to offer better services and better prices. When it's your money you're spending, you see it, you write the check, you have the tendency to demand better service. If somebody else is spending the money for you, there's no cost control because the demand -- the decision-making process has been taken out of the economic equation.

Third, HSAs will encourage people to save for their health care needs both now and in the future. We encourage people to save for their future retirement needs; HSAs do the same thing for medical needs. There's incentives built in to encourage savings, and that's important.

Fourth, because citizens will see savings on an annual basis as a result of wise choices they make, there is an incentive to take care of their bodies and to live healthier lives. This is the beginning of, hopefully, what will be the next wave of medicine and the direction of medicine, is how do we encourage people to make right choices; how do we prevent disease in the first place?

As you know, I'm an exerciser; I like to exercise. I exercised a little too much and my knee hurts. (Laughter.) But nevertheless, I feel -- I made the right choice to exercise on a daily basis. I'm a healthier person for it. And HSA -- that would show up in an HSA because there would be more money left over on an annual basis because I am a healthier person, more of my own money that will be accumulating, that will be being saved. The healthier your life, the more money you build up tax-free in your health savings account.

Fifth, HSAs will make it easier for some people who are now uninsured to purchase health insurance. Low premiums mean greater affordability and greater accessibility, especially for small businesses who are having trouble paying for the health insurance for their employees.

Because some people may not be able to afford these low-cost plans, I made a proposal to strengthen HSAs. I did so in my State of the Union. If your employer does not contribute to your premiums, you should be able to deduct from your income taxes the cost of your premiums for your high-deductible insurance. If you really think about what I've just said, it provides an interesting opportunity for small businesses who aren't paying for health insurance to be able to encourage an employee to do so.

Much of the money you contribute to the HSA and the money you spend on premiums -- so the money you contribute -- not "much," all the money you contribute to your HSA -- and the money you spend on your premiums for high-deductible insurance will not be taxed. This is an incentive plan to encourage people to be able to have an insurance policy that's affordable. And it's necessary. And it's needed. And the Congress needs to understand how responsible the decision they made in the Medicare bill was. I mean, this is a major reform in a positive way for the American people.

The other thing we need to do, and Congress needs to listen to, is the call for association health plans. (Applause.) What that means is small businesses can bind together across the country to negotiate lower health insurance rates and cover more workers. See, state rules prevent many small businesses from working together to increase their buying power, which makes it harder for them to offer affordable coverage for their employees. It makes sense, when you think about it, to allow people from Texas and Oklahoma to bind risk, to share risk. If you're a restaurant owner in Texas, you ought to be able to take your employees and put them in the same pool as a restaurant owner in Maryland, so you can spread the risk.

You'll hear a story here in a second about a restaurant owner that can't share risk, and, therefore, is in a -- has to buy a group plan -- or try to buy a group plan without the benefits of large purchasing power. Big companies have got purchasing power. Small businesses ought to be allowed to bind together so they've got the same purchasing power.

And the Congress needs to act on association health plans. This is an important part of making sure the small business sector of America is strong and vibrant. The bill passed the House; it's stuck in the Senate. The Senate ought to act. And for those of you who are concerned about health care for -- the cost of health care for small businesses, you need to let you senators know. There's no excuse for this bill not to go forward. It would be a major reform. It would help a lot of small business owners in the country.

Let me tell you some stories. Speaking about small businesses, I told you Phil Hadley is here. He's with Collier Pest Control out of Naples, Florida. He's got an employee with him named George Akers, who's with us. George is the guy with the flat-top, the turtleneck -- (laughter) -- has never seen snow before. (Laughter and applause.) He's the real deal. (Laughter.)

Collier is having trouble buying health insurance that the company could afford, or the people could working for them. The premiums were going up year after year. And George is getting tired of it and was contemplating not having any insurance at all -- wanted to work, but just was about to try to self-insure, which would be highly risky. He bought him a new HSA. Phil found it; they worked together on it. The HSA and the lower premiums that he pays to cover catastrophic care saves George about $5,500 a month.

MR. AKERS: No, a year.

THE PRESIDENT: A year -- (laughter) -- $5,500 a year. I meant to say $550 a month. Five thousand, five hundred dollars a year. Think about that. He went from worrying about having health insurance at all to taking a health savings account, and he now saves $550 a month. Actually, it's more than $5,500 a year. (Laughter.) He's covered for catastrophic care. He's got incentives in his own plan to make right choices, to cover the routine medical costs.

Pam Wimbish is with us from the Chicago area. She's self-employed. She was worried about health care. There's Pam. She was really worried about health care. She had a high-cost insurance plan and, being a self-employed person, she was kind of wondering what's next, what happens next year or next month, when you get high bills. There are a lot of self-employed people in America, by the way, a lot; a lot of sole proprietors, a lot of one-person shops out there making a huge contribution to our economy.

She signed up for an HSA. It's made a huge difference, she said. She's saving money. She's saving money not only in the out-flow, she's saving money by the account building up, the HSA account, which is her savings account. It's her own money available for health. And there's nothing like having your own -- managing your own system, is there? I mean, there's just something inherently American about controlling your own destiny, and that's what these HSAs do.

The Sameses are with us. I mentioned that Krista is a home-schooler. I also forgot to tell you she's an accountant. Ted is a doc. They're a professional family, just like a lot of other families in America. They purchased an HSA. They're using HSAs. They found that an HSA makes their life -- their desire to make sure their family is insured so much more affordable and reasonable.

Rick Bezet is with us. He's a pastor in a Little Rock church. You think -- he's got a couple of flocks he must tend to -- one is the people who come to church, but he's also an employer, he's got people working for him. He's saving about $5,000 per employee per year by switching to a health savings account.

These people care deeply about their employees. They want them to be satisfied workers. And they're now taking advantage of new law, which provides an interesting financial opportunity for their businesses.

Joe Bohm is with us. Joe is a home builder from Crofton, Maryland. He's got 90 employees. Just like a lot of other small businesses, his premiums went up 15 percent this year. And he's tired of it. And he's tired of not having the capacity to bargain better with a group of people just like -- in the same situation he's in. But the law won't allow it.

There's some -- people said, why won't the law -- it sounds rational, why won't it? Because there are some vested interests that won't allow this to happen. I guess there are people not willing to allow for there to be competition. They don't want to give up any market share. They like the fact that government won't let people compete. I don't. The more competition the better, particularly when it comes to making sure people are able to get a better deal for their health insurance.

Lynn Martins is with us. She runs Seibel's Restaurant. She says it's pretty good food, if you're interested. (Laughter.) She used to be in an association health plan in her state, Maryland. Then, incredibly enough, they said you can't use those plans anymore. You can't have an association health plan. And guess what happened? The premiums went up 50 percent. Because the state wouldn't allow for there to be association health plans, and her little stand-alone business doesn't have the same purchasing power in the marketplace, and the premiums went up. Bad law, bad decisions by lawmakers, ran her premiums up. And they're still going up.

And so she, too, wants to be able to be in an association health plan. She wants restaurateurs to be able to pool and get better costs in the marketplace. She's also fascinated by health savings accounts. She wasn't exactly sure what they were and then all of a sudden she started hearing the stories of people standing behind me and it dawned on her that this is perhaps a really good way to make sure her employees have got health insurance.

Imagine the combination of health savings accounts and association health care plans together. I mean, you're talking about providing interesting opportunity for the small business sector in America. And remember, we're interested in job creation and we need to make sure the small business sector is as strong as possible. Tax relief is one way to invigorate the small business sector -- Congress needs to make all that tax relief permanent by the way. (Applause.) And another way is to address the high cost of health care by rational policy. And today I described a series of steps of rational policy -- the Congress must act on it.

If they're truly interested in health care costs in America, I've just laid out a way, a strategy for them to address the costs. Address the costs in a way that does not undermine the private sector, undermine that part of a health care philosophy that has made us the greatest in the world.

We don't want the federal government running health care, we don't want the federal government making decisions. (Applause.) Private medicine needs to be invigorated and strengthened, and the way to do that is give people more options, empower consumers, protect the doctor-patient relationship, and allow small businesses to pool their risk so they can provide good insurance for their employees.

Thank you for coming and giving me a chance to describe a vision for a better America when it comes to health care. Please feel free to contact the members of Congress in the Senate. (Laughter and applause.)

Again, I want to thank my fellow Americans for standing up here to help add some credibility to the stories I've just told you. They are living proof of what can happen when people are given good choices to make, and proof of what happened -- for the need for us to make sure Congress continues to implement good policy.

Appreciate you all coming. God bless. Thank you. (Applause.)

END 11:22 A.M. EST

(Editor's Note: During the 2004 Presidential campagin President Bush made many campaign speeches in which the topics of Social Security and Medicare were mentioned. This speech from September 2004 is representative of those speeches.)

President's Remarks at "Focus on Health with President Bush" Event
NSC Sports Hall
Blaine, Minnesota
September 16, 2004

12:45 P.M. CDT

THE PRESIDENT: Thank you all for being here today. Pleased be seated. Please be seated. We got some work to do here. I'm her to ask for your vote, that's what I'm doing today. (Applause.) I'm here to ask for your help. (Applause.) I believe everybody has the duty to vote in America, and I'm asking that you register your friends and neighbors, encourage them to do their duty in democracy. And while you're out registering people to vote, make sure you don't overlook discerning Democrats. You know, people like Zell Miller. (Applause.)

And then after you register them to vote, I know a lot of you are working hard in the grassroots here -- as you register them to vote, and election time comes upon us, head them to the polls. And when you head them to the polls, say, if you want a stronger America, a safer America, and a better America, put Dick Cheney and me back into office. (Applause.)

What a great place to spend the day, the great state of Minnesota. I tell you, what a fantastic bus trip we're having. (Applause.) Just had a sandwich in Anoka. (Applause.) The Halloween capital of America. (Applause.) And I started my morning in St. Cloud -- actually, I didn't start my morning in St. Cloud. I started my morning at the White House. And I said to Laura, I'm heading to Minnesota. She said, well, tell everybody hello. (Applause.) So I am. The First Lady sends her best. (Applause.)

This is a true story. Kind of true. (Laughter.) It may have been slightly embellished at times. (Laughter.) So I said, "Laura, will you marry me?" She said, fine -- she was a public school librarian, by the way. And she said, I'll marry you, just so long as I don't have to give a political speech. (Laughter.) I said, okay. Fortunately, I didn't -- she didn't hold me to that promise. America got to see a fabulous mom, a great wife, and a wonderful First Lady in New York City. (Applause.) I'm really proud of Laura.

Today, at the end of this interesting dialogue we're going to have on a lot of issues -- we're going to focus mainly on health. We've got some citizens from the area here who are going to discuss different aspects of the health care plan we have, so you can better understand why I believe our plan is the best. But at the end of this, I hope you'll find there's a reason why I'm running again, that I have a reason to seek the vote, that I have a vision for this country that is one that will make the world a safer place and a better country for all of us. (Applause.)

And I just got off the phone with the FEMA Director, Mike Brown, who's down in the Southeast. And as you know, Hurricane Ivan hit the coast very hard. The states of Mississippi and Louisiana, most particularly Alabama and Florida, were hit hard. And I know the citizens of that part of the world will be glad to hear that people in the great state of Minnesota are praying for their safety, praying for their lives. (Applause.)

I'm running with a good man in Dick Cheney. I'm proud of my running mate. Now, listen, I admit it, I admit that he doesn't have the waviest hair in the race -- (laughter) -- kind of like old Weber. I didn't pick him for his hairdo. (Laughter.) I picked him because of his experience, his judgment, and he can get the job done. (Applause.)

I'm proud of your Governor. You've got a great Governor in Jim Pawlenty. (Applause.) He's an innovator; he's a good thinker; he's got a pretty good sense of the politics here in the state. He told me something on the bus. He said, "You know something, Mr. President, you're going to carry Minnesota." And I believe him. (Applause.)

Thank you all. Okay. All of us in the political arena love applause, but we've got work to do here today. I've got something I want to share with you. I've got these things on my mind I want to tell you. Before I do, I also want to thank my friend, Mark Kennedy, Congressman Mark Kennedy. (Applause.) You've got to put this guy back in office. He's a great United States congressman. He has earned your support. And I'm looking forward to working with him in my second term as President of the United States. We've got a great relationship. I think it's important to have a congressman who can call over to the White House and the President answer the phone. I'll answer Kennedy's calls. (Applause.) I want to thank his wife, Debbie. She is a -- Kennedy is a smart guy. He sends the better half the family out to campaign on his behalf. (Applause.) Thank you, Debbie, for working hard.

Jimmy Ramstad -- Congressman. I appreciate you, Congressman. Thanks for coming. (Applause.) Proud you're here. I'm honored to -- I mentioned Zell Miller a while ago. He's a strong, strong citizen. You know, Randy Kelly is, as well. I am proud that the Mayor of St. Paul, Minnesota -- (applause) -- I'm proud to call him friend and supporter. There are a lot of people just like him out there that wonder about the future of this country. They forget all the political noise, and they're looking at vision. That's what they want. They want somebody who can lead this country to a better tomorrow. Mr. Mayor, I'm honored to have your support. I'll treasure it.

I appreciate Vin Weber being here. Thank you for coming, Vin -- former congressman. (Applause.) I want to thank all the state and local folks who are here. Thanks for serving your state and your cities and counties. I want to thank all the grassroots activists for what you have done and, more importantly, what you're going to do. We're coming down the stretch. Now is the time to be getting on those phones and reminding people that we have a duty to vote. And I'm honored you do so. When you tell them to vote, tell them that we've got a vision in this campaign for a safer world and a more hopeful America.

And a hopeful America really means that you got to have an understanding that we're living in changing times. Think about how the times have changed since our dads and grandads were coming up. You know, in the old days a person would likely have one career, one job, and mom would be at home. And our society has changed significantly now. People have more than one career, often; they change jobs several times. Women are now working in the home and outside the home in the workplace. These are different times. And yet the systems of government have not changed. Health plans need to change with modern times. The pension plans need to change with modern times. The tax code needs to change with modern times. (Applause.) The worker training programs need to change. The work rules need to change. The labor laws are old; they were written in the past. We need to be thinking about the future.

You say, what do you mean by that? Well, I'll tell you what I mean. Since a lot of women work outside the home, there ought to be flex-time and comp-time available for employees so that people can balance their needs of their family and the needs of the workplace. We need modern work rules. (Applause.)

Like the Social Security fund. If you're a senior citizen, you don't have a thing to worry about when it comes to getting your check. And I don't care what the political rhetoric tells you, the promise is going to be kept. The Social Security trust has got plenty of money to fulfill the promise for our seniors. And baby boomers like me and a couple of others I see here -- (laughter) -- we're in good shape when it comes to Social Security. So we need to worry about our younger kids and our grandkids when it comes to Social Security. There's not enough -- (applause.) The demographics have changed. The Social Security trust is weak when it comes to our children and grandchildren.

That's why I believe we ought to allow younger workers to take some of their own tax money and set up a personal savings account that will help them realize the promise of Social Security, a savings account they call their own, a savings account the government cannot take away. (Applause.)

These are changing times. The nature of the -- the nature of the jobs are changing in America. You know what I'm talking about. I mean, the health care industry, for example, is booming in parts of our country. I suspect it is in this great state of Minnesota. You got some of the great health care technologies in the world being developed here. But oftentimes there's a skills gap in America. In other words, the jobs exist, but the workers aren't trained for the jobs which exist.

And that's why I'm such a big believer in community colleges, to make sure that workers have got an opportunity to gain the skills necessary to fill the jobs of the 21st century. Our worker training programs need to change to adapt to modern times so people can fulfill and realize their dreams here in this country. What I'm telling you is, one of the reasons I'm seeking the office is because I understand many of the systems of government were designed for the past, and I think we need to change those systems to stand side-by-side with people so they can realize their dreams. (Applause.)

Our view of government is that government ought to help people realize their dreams. I'm running against a fellow who believes that government ought to dictate to people. And that's a fundamental philosophical difference.

Now, I want to talk to you about our economy right quick, because we can change systems all we want; if people can't make a living, it's not going to matter, see. Now, I -- as you're out gathering the vote, remind people what we have been through. This economy has been through a lot in a quick period of time. We've been through a recession. As a matter of fact, the stock market started to correct -- that means go down -- five months before we came to office. Then the recession came. Then we had corporate scandals in America. And make no mistake about it, those corporate scandals hurt. They shook people's confidence. We passed tough laws now and it's abundantly clear that this country will not tolerate dishonesty in the boardrooms of America. (Applause.)

And then the terrorists attacked. And they estimate it cost us a million jobs in three months after September the 11th, 2001. But we're overcoming these obstacles. The economy is growing. It's growing at a rate as fast as any in nearly 20 years. The unemployment rate in Minnesota is 4.8 percent. The national unemployment rate is 5.4 percent. Let me put that in perspective for you: 5.4 percent is lower than the average of the 1970s, 1980s and 1990s. (Applause.)

We're adding manufacturing jobs. People say, why do you think -- I say, well, I'll tell you why I think -- one, our workers are great; two, the entrepreneurial spirit is strong; three, the farmers and ranchers know what they're doing; and four, we cut the taxes. (Applause.) The question is not what we did to overcome the obstacles; the question is, what are we going to do to keep the growth; what is the vision to make sure this economy continues to grow.

My vision is this: In order to keep jobs here in America, in order to make sure people can realize their dreams through working, America must be the best place in the world to do business. If you want to find work here, this needs to be a place where people are willing to risk capital and employers are willing to expand. That means this: Less regulations on small businesses,; tort reforms so small business owners aren't subjected to harassment in the courts -- (applause) -- an energy policy which encourages conservation, uses technologies to come up with new ways to use and conserve energy; an energy which uses corn and soybeans in a wise way with biodiesel and ethanol; an energy policy which encourages clean coal technology; an energy policy which uses latest technologies so we can explore wisely for natural gas. In order to keep jobs here in America, and to keep this economy growing, we need to become less dependent on foreign sources of energy. (Applause.)

We need to open up markets in order to keep jobs here in America. Listen, there is a tendency for people to say, well, I'm going to put policies out there that will isolate us from the world. That's called economic isolationism. That would be a big mistake for workers in the state of Minnesota. It would be a big mistake for Minnesota farmers. We've opened up our markets, and that's good for you. If you're a consumer, and you have more product to choose from, you're likely to get the product you want at a better price and better quality. And so, what I say to places like China is, you treat us the way we treat you. And I say that to not only China, but elsewhere, because I believe America's small business owners, entrepreneurs, farmers and ranchers, workers can compete with anybody, anytime, anywhere, so long as the playing field is level. (Applause.)

Before we talk about health care, I want to talk about another key issue, and that's what we do with your money. I believe that -- I know we will continue to be wise with how we spend your money. In other words, to keep jobs here, government has got to be wise with how the people -- how the people's money is spent. That means setting priorities.

We set priorities in Washington. The priority is defending this country and supporting our troops in harm's way. That's a priority. (Applause.) We've increased federal spending on education by 49 percent since I've been the President. We've got plenty of money to do what we need to do up there if we set priorities. You'll hear me talk a little bit about tax relief in a minute. But I -- with one of our panelists here. But the whole philosophy is, is that after we've set priorities, I think the people can spend their money better than the federal government can. (Applause.) It's a philosophical difference --

AUDIENCE MEMBER: Four more years!

THE PRESIDENT: Yes, sir, thank you. Now, the other issue is taxes. This is an issue in this campaign. I'm running against a fellow who has promised over $2 trillion of new money so far, and we're just coming down the stretch. It's easy to stand up in front of audiences and tell them what they want to hear in politics, believe me, particularly when you're spending somebody else's money. And the question is how he's going to pay for it. And he's got that answer we've all heard before -- I'm going to pay for it by taxing the rich. Now, you've heard that before. Here's the problem: One, you cannot tax the rich enough to pay for over $2.2 trillion in new spending, so there's a tax gap. And generally, when there's a tax gap, you get to fill it.

Secondly, by running up the top two brackets in the tax code, you're taxing small businesses. Ninety percent of small businesses pay individual income taxes, because they're classified as a Subchapter S or sole proprietorship. Ninety percent of the small businesses. Yet 70 percent of all new jobs are created by small businesses. So when you're talking about running up the top two brackets, really what you're talking about is taxing the job creators here in America, and that's bad economic policy. (Applause.)

And finally, when you hear them say, tax the rich, be careful. The rich hire lawyers and accountants for a reason, because they don't want to pay. And you get stuck with the tab. But we're not going to let him stick you with the tab. We're going to carry Minnesota in November and win a great victory. (Applause.)

All right, let me talk about health care. The subject that we're going to focus on today is health care. We want health care to be available and affordable. We want people to be able to afford health care and, therefore, we need to be thinking about -- need to deal with the rising cost of health care. And we want health care to be available. Here are some interesting ways to do so.

We're going to talk about Medicare in a minute, with Jerry. Do you realize that over half of the unemployed in America, working unemployed -- uninsured, working uninsured -- work for small businesses. Think about that. That means small businesses are having trouble affording health care. But over half are employed. And so one way to make sure that small businesses can afford health care is to allow them to pool risk, so that they can purchase insurance at the same discounts that big businesses get to do. (Applause.)

Consumers will be protected under federal law under this plan. It's a plan to help small businesses afford health care. That's what we want to do. We want to help them afford health care. Fifty percent of the people work for small businesses who are working uninsured -- why don't we help the small businesses?

I'll tell you another way to help small businesses afford health care. It's to do something about these junk lawsuits that are running up the cost of medicine and running good docs out of business. (Applause.) This is an issue. See, I don't think you can be pro-doctor, pro-patient and pro-trial lawyer at the same time. (Laughter.) I think you have to make a choice. My opponent made his choice, and he put a trial lawyer on the ticket. I made my choice -- I'm standing with the docs and patients and hospitals. I support medical liability reform -- now. (Applause.)

We need to promote health information technologies. My hope is that most Americans have a personal electronic health record within the next decade. That's a fancy way of saying that when you have a system where docs who can barely write -- well, they can write, you just can't read it -- handwrite every file, there's inefficiencies in the system. One way to help with health care costs is to modernize the health care industry. We've got a great project going on in Washington, D.C. to bring technologies into the health care field. It's going to save money. Another way to help save money is to promote generic drugs to the market more quickly. We are doing that in Washington, D.C. (Applause.)

Let me talk real quick about a subject I know is on your mind. I think it's important for me to tell you what I think about importation of drugs. Listen, we're studying the issue. I'll tell you why we're studying it. I don't want people bringing in drugs that will hurt our seniors. And neither do you. I know it sounds attractive to some, importation of drugs. And it may work. But, sure enough, if we're not careful, drugs manufactured in the Third World over which we have no control could use Canada as a way to get into this state. And then we got a problem, a safety problem. We have a duty in the federal government to protect the consumer. And so I've got the -- I've got Tommy Thompson and his crowd looking to make sure that before we have an importation program, that you're safe, that we make sure that people are -- have got a safe product that does what it says it will do.

And in the meantime, we're going to keep promoting the generic drugs quickly to the market place. And that will help hold down the cost of drugs. We're going to talk about another way to hold down the cost of drugs for seniors here in a minute.

Let me talk about, right quick, about -- about what we call community health centers. And we've got -- Peggy Metzer is with us today. She is a soldier in the army of compassion. Community health centers are -- well, I'll let you explain. Where do you work?

MS. METZER: Thank you, Mr. President. Ladies and gentlemen, there is a story that needs to be told, and it's about the front line of health care happening every day by committed and dedicated doctors and nurses and other people at the grassroots level where it makes a difference. Were it not for the President's initiative, this would not be happening. The Cedar Riverside People's Center Medical Clinic might have closed its doors three years ago, after we'd been in service for over 30 years. Again, were it not for the President's vision, for his dedication and care that health care does get to the front lines where it makes the biggest difference, we wouldn't be open today. So I want to thank you, Mr. President. (Applause.)

THE PRESIDENT: Let me ask you some questions. So who shows up? Who is the clientele? When you open the door, who is likely to walk in the door at your community health center?

* * * * *

THE PRESIDENT: What she's saying is -- it just makes sense to me -- otherwise I wouldn't be doing this. (Laughter.) We're going to expand these community health centers so poor people have got a place to find primary care and preventative care. It makes a lot of sense. I think it's a wise use of your money to expand and increase the number of community health centers all across America. As a matter of fact, the goal I've set is every poor county in America has a community health center.

It's much better, it's much better if folks who need help get help at the community health center than in an emergency room of a local hospital. Not only do taxpayers save money, it's a more compassionate way to help people. (Applause.)

And the interesting thing about community health centers, the doctors who practice there are exempt from lawsuits because of federal law. The problem is, is that since the trial lawyers are so strong in the Senate, we can't get any more liability protection than we've got. But at least your docs and you --

MS. METZER: We are protected, thank you.

THE PRESIDENT: Yes, see, that's important. You've got people who are OB/GYNs who feel comfortable about practicing there because they're not going to get sued. It seems like if we're willing to extend legal liability to these health centers, we ought to be extending legal liability to private clinics and hospitals, as well, so OB/GYNs can do their job. (Applause.)

MS. METZER: It's such an honor to be here and to see the person who was able to see through the middle of the complexities and the confusion and the confounding situation with health care. And thank you for seeing through the middle and getting to the bottom line.

THE PRESIDENT: Glad you're here. Good job. (Applause.) Pass that mike over there.

One of the things I went to Washington for is to fix problems. We had a problem in Medicare. I'll tell you why we had a problem in Medicare. Because medicine was changing and Medicare didn't. I'll tell you what I mean. The Medicare system would pay for heart surgery, like $100,000 worth -- that's your money -- and it wouldn't pay for the prescription drugs that would prevent the heart surgery from being needed in the first place. That didn't seem to make sense to me. It certainly wasn't very cost-effective, but more significantly, it wasn't very compassionate for our seniors. After all, we would like to prevent the heart surgery from needing to occur.

So I worked with Congress to change Medicare -- for the better, so seniors have got more options to choose from; so seniors, starting in 2006, will have prescription drug coverage. And by the way, in 2005, for the first time, Medicare is going to pay for screenings, so that we can prevent disease from occurring now, rather than have to treat it later. That seems to make sense for taxpayers. (Applause.)

As we waited for the prescription drug coverage to kick in, we decided to send out prescription drug discount cards. If you're a poor senior, you get a $600 credit per year for your card. Over 4 million seniors have signed up for the card. Interestingly enough, it's just not "a" card, there's a variety of programs from which the seniors can choose. You know why? I believe people ought to be making choices. I told you, the difference between what I believe and what others believe is that government ought to stand side-by-side with people to improve their lives, not dictate to their lives. If there's only one choice, it means the government is dictating. If you've got choices to make, it means you've got a better chance of designing the program that fits your needs.

Jerry Markie is with us -- aren't you? (Laughter.) So he's here for a reason, because he's got a drug discount card. I want senior citizens in the state of Minnesota to hear this story, because I think you're going to find it very interesting.

Ready to crank it up? All right, let's go.

* * * * *

THE PRESIDENT: Listen to what he's saying here. The cards -- this is good use of -- it seems like to me, good policy to enable this good man -- I think he saved, like he told me, $350 a month because he's using this discount card. It's just wise policy. It's a lot better policy to empower him than have the government dictate to him, like my opponent would like to do. (Applause.)

* * * * *

MR. MARKIE: And that's the truth. If we didn't have the insurance card, we would be paying that out of pocket. And that amounts to $4,200 a year. Just think of that.

THE PRESIDENT: You can use that, can't you?

MR. MARKIE: You betcha.

THE PRESIDENT: Take mom out to dinner more frequently.

MR. MARKIE: More than once. (Laughter.)

* * * * *

THE PRESIDENT: I'll complete the thought -- any time you can save money, that's good. (Laughter and applause.) Right?

MR. MARKIE: Yes. You just talked about Celebrex. I have eight drugs. That's just one. We take the six, as I indicated. And you save -- $166 -- $15, that's almost $150 right there, per prescription.

THE PRESIDENT: See, here's what we're talking about. We're talking about a health care vision that empowers people, that helps people. And that stands in contrast to a vision that's going to increase the scope of the federal government. Now, listen to the debate in health care. I want our fellow citizens to listen carefully to the difference between the plan that I'm talking about and the plan my opponent is talking about.

I'll give you an example. He believes we ought to increase the amount of people covered by Medicaid. All that does is crowd out people who have got insurance plans through small businesses and move them from the private sector to the public sector. I just think that's the wrong decision to make, because once you're on the public sector, making decisions for you in health care, it means you and the doctor aren't making your decisions, it means unelected officials are making your decisions. Bureaucrats are deciding health care. The nationalization of health care would be wrong for the American citizen. (Applause.)

Let me tell you about a really interesting idea, an idea that has got a lot of advantages. They're called health savings accounts. We've got an owner of a health savings account with us, and he and I are going to explain to you how they work. And he's going to start. But this is Dan Kelly. He works for Mercury Office Supply. I just want you -- as he explains how this works, I want you to think about a philosophy that says, decisions will be made between doctors and patients, and a philosophy that says, we want people owning their own health care accounts, so that if they change jobs in this changing world, the health care account goes with him from one job to the next. And as they get older and accumulate savings tax-free in the health savings account, that asset becomes something they own and can pass on to another generation.

Danny Kelly, straight here from Mercury Office Supplies. (Applause.)

MR. KELLY: Thank you, Mr. President.

THE PRESIDENT: How is the business?

MR. KELLY: It's pretty good. It could be better, but --

THE PRESIDENT: Good. Tell us how a health savings account works.

* * * * *

THE PRESIDENT: Here's the way it works, again. He's got it going right. I'm just trying to add a little emphasis to it. He buys a high-deductible plan, that says, for example -- I guess yours is -- the insurance pays for any cost over $5,000.

MR. KELLY: Yes, because it's a family plan.

THE PRESIDENT: Which means the cost of that plan is significantly less costly than a regular insurance plan. He or his company, whoever pays for it, is out a lot less money for insurance. Then, if the deductible is $5,000, the company and Dan put in $5,000 pre-tax. And the $5,000 earns money interest-free. And the $5,000, if you have to use it for routine medical expenses, comes out tax-free. And if you don't spend the $5,000, it rolls over to the next year tax-free. So in other words, it's his money. Is that right? (Applause.)

MR. KELLY: It's my money. I choose how I want to spend it.

THE PRESIDENT: Say that again.

MR. KELLY: I choose how I want to spend it. I choose the doctors, I choose the medicine, whatever I feel is best for my family. It's my choice.

THE PRESIDENT: Yes, let me stop you there. Oh, not yet. (Laughter.) See, the operative words, as far as I'm concerned, are, I choose. See, it's not somebody in Washington choosing, it's not an HMO choosing, Danny says, I choose, I make the choice. Now, if somebody makes a choice, there's a responsibility that comes with that. Think about this -- this has got a built-in incentive, doesn't it, for right choices in life. I mean, for example, if you watch that money in your own account begin to dwindle, you may want to walk a little more on a daily basis. (Laughter.) Take to the foot in order to make yourself more healthy. In other words, there's kind of a preventative medicine built in to a plan when it says, my money, I choose. In his case, he and the business contribute. The business pays for the entire premium on the --

MR. KELLY: Correct, half the deductible.

THE PRESIDENT: -- on the catastrophic care, and then you and the business share on the contributions on what goes into the account. This is an innovative plan. They're beginning to spread across America. If you're a small business owner, look into them. Fifty percent of the uninsured here in America who don't have health care work for small businesses. And so what I think we ought to do is help small businesses set up HSAs through tax credits. I think the working uninsured ought to be given direct tax credits to set up HSAs. I believe this product is going to help change medicine for the better, because it keeps the doctor and the patient in charge of health care decisions. (Applause.)

And guess what else about the -- about Kelly's family that I think you'll find interesting -- remember the tax relief I talked about earlier, that kind of got the economy going, I think -- his family saved $2,400 in '03, and $2,400 in '04. Now, in the land where we're throwing around zeros like they don't matter -- that would be Washington -- that doesn't sound like a lot. It's a lot to this guy. How many kids have you got?

MR. KELLY: I have three kids.

THE PRESIDENT: Three. How old?

MR. KELLY: One is -- well, 11 months, one will be turning three tomorrow and the other will be turning five in about another month.

THE PRESIDENT: And what did you do with the money, the $2,400?

MR. KELLY: Buy milk. (Laughter.)

THE PRESIDENT: Yes, good. He has a healthy baby, doesn't he? See, he's got extra money in his pocket. It could help meet the health savings accounts needs, so his family has got a health savings account that works. His money matters. Once government meets its priorities, I believe families like the Kellys ought to have more of their own money. The $2,400 tax relief mattered a lot, and Congress must make the tax relief permanent. (Applause.) Running up the taxes on the American people right now makes no sense. (Applause.)

Okay, let me talk about one other subject. Thank you all. A couple of points I want to make. Changing times -- in changing times, there are some things that aren't going to change. The values we try to live by won't change -- courage and compassion, reverence and integrity. In changing times, we must support the institutions that give us stability, our families, our schools, our religious congregations. In changing times, we must not be afraid to call upon our faith institutions to help people who hurt. In changing times, we must stand for a culture of life in which every person matters and every person counts. (Applause.)

We stand for marriage and family, which are the foundations of our society. (Applause.) I'm going to tell you one other thing -- I will continue to appoint judges who know the difference between using the bench to write the law and strictly interpreting the law. (Applause.)

Now, I want to talk about one other subject. I'm just getting started here. (Laughter.) I want to talk about how to make the world a safer place. I would like to share with you some of the lessons I learned from September the 11th. The first lesson I learned, and I hope the country learned, is that we're facing an enemy that has no conscience. It's an enemy that is just really hard for us to understand. They will kill like that in order to shake our will. You can't negotiate with these people. You can't try to sit down and have discussions with them. (Applause.) You can't -- it's impossible to try to rationalize with them. And that's why we're using every asset at our disposal to find them around the world, so we don't have to face them here at home. (Applause.)

That's the first lesson -- that's our duty. That's the solemn duty of our government, to protect the American people. I wish I wasn't giving this talk. We didn't ask for what happened. But we're darn sure going to respond to it, in order to protect the American people. (Applause.)

Secondly, this is a different kind of war, and it's important to understand that. It's a war in which the enemy will try to find a host nation so they can become an active parasite. And therefore, it's important for me to make clear a doctrine that says, if you harbor a terrorist, you're just as guilty as the terrorist.

Now, when the President says something -- hold on for a minute -- when the President speaks he better mean what he says. I meant what I said. (Applause.) Okay, hold on for a minute. Thank you. Hold on for a minute, got a lot of work to do.

And so the Taliban heard from us and they rejected what our government said, and they're no longer in power. A lot of brave Americans went in and did hard work and removed the Taliban. (Applause.) Let me explain what happened as a result of that action. First, al Qaeda has no place to train in Afghanistan. Remember, they were training thousands of people, thousands, so they could burrow into societies, including our own, to create havoc.

Let me step back real quick. These are people -- I would call them ideologues of hatred who use terror as a tool to intimidate. Their vision is -- is backward. The Taliban -- to indicate the kind of vision they have for the world, in Afghanistan young girls didn't get to go to school because of the Taliban. That's backward. Their moms would be taken into the public square and whipped if they didn't toe the line of the ideologues of hate.

Not only did we deal with the host that was providing safe haven for the parasite, al Qaeda, not only will they no longer train there, but 10 million citizens, 41 percent of whom are women, have registered to vote for the upcoming presidential election in Afghanistan. (Applause.) It's amazing. Think about that. It's an amazing thought, isn't it? You remember a while back when -- remember when the Taliban pulled these four women off the bus and summarily executed them because they were involved in democracy? A lot of naysayers thought, well, this is the end of democracy in Afghanistan.

Three years, three years time, 10 million citizens have said, I want to be a part of freedom; I want to participate. Freedom is a powerful force in this world. (Applause.)

And we are better off, and America is safer -- America is safer because we have an ally in the war on terror in Afghanistan. And we're safer, the more freedom marches around the world. And we're safer when others see an example of what a free society is like. It's not easy work in Afghanistan. Listen, we had some troubles getting from point A to point B when it came to our own democracy. The Articles of Confederation weren't exactly a smooth-running period here in America. But Afghanistan is headed toward presidential elections. It's amazing when you think about it.

Third lesson: When we see a threat we must deal with it before it fully materializes. That's one of the lessons of September the 11th. We must take threats seriously before they come to hurt us. We wouldn't have to say that prior to September the 11th. Prior to September the 11th, when we saw a threat overseas, we could say, well, we'll deal with it if we feel like it, and we may not, because we're fine here in at home, we're safe. We no longer have that safety anymore.

That attack on September the 11th showed that we're vulnerable, and therefore, when we see a threat we must take it seriously before it materializes.

And so I saw a threat in Iraq. Iraq was a tough decision. I saw a threat -- or my administration saw a threat -- one, we saw intelligence that said weapons and the capability of making weapons. Secondly, we remembered he had used weapons, he'd actually used weapons of mass destruction against his own people. And he was a sworn enemy of America. He was a guy shooting at our pilots enforcing the world's sanctions. He had terrorist ties. Remember Abu Nidal? He was the guy that killed Leon Klinghoffer. He was in Baghdad, and so was his organization. Zarqawi -- he's the person that beheads people in Iraq today -- he was in and out of Baghdad, as was the people in his organization. He paid the families of suicide bombers. There's terrorist ties. And of course, the biggest threat is somebody who could have the capability of making weapons of mass destruction, or had weapons of mass destruction, would pass that capability on to an enemy who would like to inflict more harm on us.

So I look at the intelligence and remember the history, and went to the United States Congress, and said, this administration sees a threat; what do you all think? And members of the Congress from both political parties looked at the same intelligence we looked at, and they remembered the same history we remembered, and they concluded that Saddam Hussein was a threat and authorized the use of force. My opponent looked at the very same intelligence I looked at, and when they said, do you authorize the use of force, he voted yes.

Before the Commander-in-Chief commits troops into harm's way we must try all options. I've got to be able to say to the moms and dads and husbands and wives of our soldiers that I tried everything I can to deal with the threat before it fully materializes in ways other than militarily. So I went to the United Nations. My hope was that we could solve this problem diplomatically. I was hopeful that the free world might convince Saddam Hussein to come to his senses.

And so the U.N. debated the issue and the U.N. Security Council voted 15 to nothing on a resolution that said to Saddam Hussein, disclose, disarm, or face serious consequences. I believe when intelligence organizations speak, they better mean what they say, in order to make the world a more peaceful place. (Applause.) The world spoke; he didn't listen. As a matter of fact, he hadn't listened for a decade. This was not the first resolution that the U.N. had passed. I think it was like number 17, if I'm not mistaken. I can't remember the exact number; I believe it's in double digits at least. In other words, they passed a resolution, he ignored, they passed, he ignored, they passed, he ignored, which only strengthened Saddam Hussein.

And so, at this point -- and not only that, remember they sent the inspectors into Iraq and, as intelligence shows, he systematically deceived them. So I had a choice to make. And here's the way I view the choice: Diplomacy had failed; we tried what we could do to convince him to disclose and disarm. Do I take the world of a madman and forget lessons of September the 11th, or do I take action to defend this country? Given that choice, I will defend America every time. (Applause.)

Okay, hold on, we've got work here. We did not find the stockpiles we all thought were there. But we do know he had the capability of making those weapons. And he had the capacity to pass that capability on to an enemy. And after September the 11th, that is a risk I believe our country could not afford to take. Knowing what I know today, I would have made the same decision. (Applause.)

Okay, hold on a minute. Thank you all. A couple of other lessons learned. When we put our kids in harm's way, they deserve the full support of the federal government. (Applause.) All of us in positions of responsibility must be able to say to our troops and loved ones, we're giving you what you need to do your job. It's a solemn duty of the federal government. That's why I went to the Congress in September of last year and said, look, we need $87 billion for supplemental funding. That would be funding for body armor and spare parts, ammunition, fuel, hazard pay, health benefits, that which is needed to support our troops in harm's way. A legitimate request, more importantly, it was a necessary request.

And we got great support from members of both political parties. People understood that we have a duty at the federal level to support our troops. The support was so strong that only 12 members of the United States Senate voted against funding for our troops -- two of whom are my opponent and his running mate.


THE PRESIDENT: Four members of the United States Senate voted to authorize the use of force and then voted against funding the troops. And two of those four are my opponent and his running mate. When asked about the vote, he said this: "I actually did vote for the $87 billion, right before I voted against it." Now, I don't know if they're talking that way here in the town square of Blaine or not. I don't think so. (Laughter.) And they pressed him further, and he said, he's proud of the vote. He finally said the whole thing was a complicated matter. There's nothing complicated about supporting our troops in combat. (Applause.)

Okay. That bus is warming up. I've got some more I've got to say. Thank you all for the generous applause. I've got something else I want to tell you. We're headed toward peace. (Applause.) I believe that liberty can transform societies for the better. That's what I believe. The heart of my conviction is I believe that liberty is a transformational power. I believe that this is a theme throughout our history -- and throughout the history of the world. Think about this when you're talking to your friends and neighbors about this campaign. Think about this when you're thinking about a loved one who is serving an historic time now.

I sit at a table with Prime Minister Koizumi. We have a serious discussion. He is the Prime Minister of Japan. You know, my dad went to war against the Japanese, your dad and granddads did, as well. They were the sworn enemy of the United States of America. And it was a bloody conflict. And after we won World War II, fortunately, my predecessor Harry Truman and others in the United States believed that liberty could transform an enemy into a friend. And there was a lot of skeptics then. And you can understand why. We had just been to war. A lot of people's lives were harmed as a result of that war. And so there were doubters as to whether or not liberty had the power to transform. But nevertheless, there was great faith in those days about the capacity of liberty. And they helped Japan -- our predecessors helped Japan become a democracy. And as a result, I sit down at the table today, talking to Prime Minister Koizumi about keeping the peace we all want.

Think about that. Someday, someday, an American President is going to sit down with a duly-elected leader of Iraq, talking about how to keep the peace. And our children and grandchildren will be better off for it. (Applause.) That's what's happening. That's what you're seeing right now. That's what you're seeing.

These are historic times. It's essential that we have this great faith in the ability of liberty to transform the world. Those are the stakes in which we live. It's a chance to really use our influence with friends and allies to lead toward a more peaceful world. And that's why the American President must be clear in his thoughts, must not send mixed signals to the enemy or allies, must be firm in our resolve. (Applause.) You can't chase the political winds. You've got to have an unshakable faith in the ability of liberty to transform the world for the better. And by remaining resolute and firm and strong, this world will be peaceful. And we can look back -- this generation of Americans can look back and say, the world was a better place, and our children and grandchildren have a better chance to grow up in a peaceful, peaceful world.

Thank you all for coming. May God bless. (Applause.)

END 1:46 P.M. CDT

Message to the Congress of the United States


Pursuant to section 233(e)(1) of the Social Security Act, as amended by the Social Security Amendments of 1977 (Public Law 95-216, 42 U.S.C. 433(e)(1)), I transmit herewith the Agreement between the United States of America and Japan on Social Security, which consists of two separate instruments: a principal agreement and an administrative arrangement. The Agreement was signed at Washington on February 19, 2004.

The United States-Japan Agreement is similar in objective to the social security agreements already in force with Australia, Austria, Belgium, Canada, Chile, Finland, France, Germany, Greece, Ireland, Italy, Korea, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Such bilateral agreements provide for limited coordination between the United States and foreign social security systems to eliminate dual social security coverage and taxation, and to help prevent the lost benefit protection that can occur when workers divide their careers between two countries. The United States-Japan Agreement contains all provisions mandated by section 233 and other provisions which I deem appropriate to carry out the purposes of section 233, pursuant to section 233(c)(4).

I also transmit for the information of the Congress a report prepared by the Social Security Administration explaining the key points of the Agreement, along with a paragraph-by-paragraph explanation of the provisions of the principal agreement and the related administrative arrangement. Annexed to this report is the report required by section 233(e)(1) of the Social Security Act, a report on the effect of the Agreement on income and expenditures of the United States Social Security program and the number of individuals affected by the Agreement.

The Department of State and the Social Security Administration have recommended the Agreement and related documents to me.

I commend to the Congress the United States-Japan Social Security Agreement and related documents.



November 17, 2004.

For Immediate Release
December 11, 2004

President's Radio Address

THE PRESIDENT: Good morning.

Social Security is one of the great moral achievements of American government. For almost 70 years, it has kept millions of elderly citizens out of poverty and assured young Americans of a more secure future. The Social Security system is essential, yet it faces a deepening long-term problem.

While benefits for today's seniors are secure, the system is headed towards bankruptcy down the road. If we do not act soon, Social Security will not be there for our children and grandchildren.

So this week I met with the bipartisan leadership of Congress and asked them to join me in a great cause: preserving the essential promise of Social Security for future generations. We must begin by recognizing an essential fact: The current Social Security system was created for the needs of a different era. Back in 1935, most women did not work outside the home, and the average life expectancy for American workers was less than 60 years. Today, more moms are working, and most Americans are blessed with longer lives and longer retirements. The world has changed, and our Social Security system must change with it.

Today, Social Security is not a personal savings plan. There is no account where your money goes to earn interest. Benefits paid to today's retirees come directly from the taxes paid by today's workers. And each year there are more retirees taking money out of the system, and not enough additional workers to support them.

In the 1950s, there were about 16 workers paying for every Social Security beneficiary. Today, there are about three. And eventually, there will only be two workers per beneficiary. These changes signal a looming danger. In the year 2018, for the first time ever, Social Security will pay out more in benefits than the government collects in payroll taxes. And once that line into the red has been crossed, the shortfalls will grow larger with each passing year. By the time today's workers in their mid 20s begin to retire, the system will be bankrupt, unless we act to save it.

A crisis in Social Security can be averted, if we in government take our responsibilities seriously, and work together today. I came to Washington to solve problems, not to pass them on to future Presidents and future generations. I campaigned on a promise to reform and preserve Social Security, and I intend to keep that promise.

I have set forth several broad principles to guide our reforms. First, nothing will change for those who are receiving Social Security and for those who are near retirement. Secondly, we must not increase payroll taxes, because higher taxes would slow economic growth. And we must tap into the power of compound interest, by giving younger workers the option to save some of their payroll taxes in a personal account, a nest egg they can call their own, which government cannot take away.

Saving Social Security for future generations will not be easy. If it were easy, it would have already been done. There will be costs, yet the costs of continued inaction are unacceptable. And the longer we wait, the more difficult it will be to fix the system. Saving Social Security will require bipartisan cooperation and the courage of leaders in both parties. The American people voted for reform in 2004, and now they expect us to work together and deliver on our promises. I look forward to working with members of Congress on this important issue. Together we will make certain that America meets its duty to our seniors and to our children and grandchildren.

Thank you for listening.


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