it is good public policy. we don't think layering not at the broad brush of the proposed consumer protection agency would virtually allowed them to go and even small@@@@@@@ @ u)@ @ @ @ @

but technically speaking, they would. in terms of the broader discussions, we haven't opposed anything. we have supported consolidations. we have supported some level of we have supported some level of agreement among international . >> if you conceive me specifically what has been proposed, i can give you a special the cancer. it is one of the problems that we have had a lot of nebulous proposals. we have not had a health care proposal in the financial regulatory area. we had a broad outline. the broad outline leaves the

details out. the devil is in the details. at this point, we have not supported or opposed many of these pieces. >> how about executive compensation? >> there is no doubt that there have been some egregious cases of executive compensation. as an economist and as someone who represents businesses, that is a decision that should be made by boards of directors. this is a business decision, what people get paid. it is not a government decision for the government does not have to like what the bonuses are. it is the system that determines this. to suggest that one size fits

all is a better approach is ridiculous. at this point, we recognize the failure of some of the private sector compensation mechanisms but at the same time, the suggestion that you impose a government limit on everything is absolutely ridiculous. the minute they start imposing government limits on a-rod's salary, we will hear what the american people thinks about this. you can go into a whole lot of areas other than executive compensation and find cases of agrees is payments. i don't see any of those guys giving bonuses back. >> what about executive compensation in the financial sector? there's no risk to the

government in the sports sector. the payment structure has added such excessive risk in the financial system. that is the rationale for why there is a government action. >> and in the cases where the government has taken ownership positions, they have exercised those ownership positions to put certain compensation limits in place. in a few places, they did not put them in place for it afterward, they want to go back and do that retroactively. they got it wrong. by their own admission, although they have not made that admission. they put things in place that they were not doing what they're supposed to do. in other cases where they put in limits and run them down into

the mid level of the company, they have found that those companies are now avoid of the financial talent that they need to recover. they have recognized that and talked about. they recognize the fact that if you have people getting compensated with the same activity a greater amount in one area and not the other, you'll have a flow of talent from the limited area to the unlimited area. the question is, what is the appropriate policy for compensation? the appropriate policy, i think, is to have the private sector set these compensation limits. if the government has to comment and rescued them, you play with the government's money, the government gets to set the rules. when you are playing with your own money -- i am not talking about banks to which are regulated by they are regulated private entities as being different and entities that are

owned and operated by the government. the one thing i was interested in with the press response was when the a.i.g. bonuses can now, there was a bill vacation in the press when the same week, the freddie mac and fannie mae bonuses came out, there was not one word in the press. everybody knows that the enemy and freddie mac, even before they were taken over, were government-sponsored enterprise that traded on the government guarantee. afterwards, there is no question that they are government-owned enterprises. bonuses were paid their and nothing was said. if you are going to apply this concept, it has to be well thought out and it has to be applied very consistently. in the end, i believe that the private sector, while not being free of mistakes, does a better judge of figuring out what people should be constant -- compensated for rather than the

the federal bureaucrats. i don't think wage and price controls work. i think we have shown that over and over. this is another form of federal wage and price controls. >> one thing they are struggling with, and i recognize your point, is the question of the repressed, balanced -- is the question of risk. to the extent we have now seen a demonstration that if the banks or financial enterprises do things short-term that caused massive losses that caused the government to have to step in,

to the extent they believe that the payment and bone structures have affected that in the balance between long-term and short-term, are you saying that there is no legitimate government role in talking about how those structures should be set up, requiring a better balance? >> no, and i would ask a question -- i think that when the government gets in on the regulation "government has to regulate the transfer of risk. you go into a bank and you tell them you have to maintain standards. you have to maintain the loan loss standards. you have to provide this kind of protection to the insurance agency. i send in a regulator on a regular basis, monthly, quarterly, annually, what ever.

that is for the government to maintain the appropriate risk level. beyond that, it is the stockholders that are financing the operation because we are not 4wstalking the government-owned operations. it is the stockholders who have that stock at risk to decide what is the appropriate compensation level for somebody they think can help them achieve their proper rates of return and still maintain those levels of risk. if the government thinks that institution is too risky, step in and do something about the risk profile that they want to adjust he did for premium adjustments or whatever. but to go on and tell people what they can pay and who they can hire, i think that is wrong

and i don't think it will work. the question then becomes, what is the appropriate level of government supervision and government regulation of entities in our financial system? i have a tendency to air on the side of the appropriate capital standards, a corporate risk standards, and ongoing assessment of how the institution is doing. people in the institution looking at what they're doing rather than going in and making business decisions for that institution. that i don't think works. >> i have a question about -- do you think you will be able to halt the contractor rule on tuesday? can you talk about your emergency court filing? can you also comment on the

enforcement part of immigration which presumably will have to happen in september or sometime this fall, ahead of the conference of reform? >> we did lose that case in the district court. we have filed -- this deals with the implementation of an executive order that imposes the worker verification system on employers. we challenged that because we think president bush did not have the authority to impose such an executive order on federal contractors because of the underlying statute. we said that it must remain voluntary. the district court surprisingly, did not agree with us and we filed a stay of the regulation, pending appeal. we should hear about that fairly quickly.

if the district court denies the state, we will have to evaluate our missteps. while we are evaluating the litigation steps, we are also reviewing relief on capitol hill in a couple of ways but most importantly, to modify the regulations so that it does not apply to required verification of existing employees right now, the regulation says that you must not also just verify new employees but those employees working under federal contract presently. with many companies, it is hard to separate who was working under contract and was not. some companies will just drop their hands and read verify everybody. pending possible success in the courts, we are pursuing legislative relief on the hill. we are doing at this week and

next week fairly aggressively. part of that would be to preempt state laws with regard to verify requirements. the real nub is to say that re- verification of employees will not be required. in regard to your other point -- the underlying e-verify program, will expire by september it if congress does not really address that, regulation would have no statutory authority and it would be nullified. because of that, we don't think congress will allow that to happen. ike leggett will be re-all authorized. if you want more information, i can give you that. >> we have a couple more questions. >> go ahead. >> the recovery forecast, is

that threatened by commercial real estate problems? >> no, it isn't. i will tell you why. as of yet, we don't know -- we know there's a potential problem but we do not know that is an actual problem. if we were to see significant defaults in the commercial -- commercial real estate market or considerable illiquidity and inability to refinance many of these contracts that would come up, then it would be very problematic. the fed is aware of the problem. we have been over to the fed to talk to them as have many others. the fed continues to monitor the issue. they would be ready to step into the breach if, in fact, there was a significant lack of liquidity and therefore inabilities to roll over some of these things.

i am guardedly optimistic while fully aware that there is a significant size to potential issue out there. if it were to blow up, it could cause a re-seizure in the financial market. the big decline in the commercial real estate market was a lot of factors are that it was the erosion in the value of the housing assets, the liquidity in the institutions, a lack of capital, many of these institutions that are in this market have been able to rebuild a bit of their capital. they are more aware of the problem so i do not think it will catch them by surprise. that is working in our favor. it is definitely a potential problem but i did not factor that into the forecast. i am guardedly optimistic that we will not see a complete meltdown in that sector. everybody is watching. >> last question --

>> you are hopeful for the next two years. you're talking about after the midterm election and would you elaborate on the differences with labor and the guest workers? >> many of our allies in this area were hopeful that obama would, with a bill and senator schumer, by the end of this year and go forward next year. i still think with health care and other issues, the docket is to fall. -- too full. i don't think anybody understands how hard legalization is as an issue and how difficult it would be to

pass legislation that would legalize a great many of undocumented workers, regardless of what their conditions are. because of that, politically, the best time would be the first year of the next turn of congress which would be 2011. many of my friends would say that i killed the ever but i just read it that would vary with regard to our differences, organized labor, particularly afl-cio, has always been opposed -- skeptical for the need for temporary worker programs. they have decided that congress should create a commission to study that. that commission would be slanted toward the conclusions that the afl-cio wants. we need a robust temporary worker program provided their

mechanisms that the employer recruits from the domestic workforce first. the afl-cio, who is very powerful right now, wants a commission. we don't that is where our disagreement lies. we have talked to senator schumer about this and have encouraged him to sort these for with organized labor and see if we can come up with a bill that provides a better border security, a path for legalization, paying a civil penalty, tougher employment verification requirements, also encouragement of programs to help the undocumented and others learn english. that is one of the great concerns of many of us here who are in opposition to

compensation. it comes through a visceral reaction. people should speak english in this country and if we help them -- there is a misconception that they don't want to learn english. learning english is the key to advancement. if we can provide some federal help, that would be good toward performance in general. >> i was hopeful for some bill on this? >> the h1nb did not reach the cap. it is market based and is responsive to the economy. h2b is capped at $62,000. our dilemma with organized labor has been that they want to put in more and more hoops and hurdles that employers must go through before you can recruit a

worker. we understand that but you render the program and nonull, u may never get to the point where you can get approval. that is where the details come in and we are trying to work for those. the hispanic caucus per book -- supports not doing things piecemeal. we are trying to support things on different tracks but it is going slowly. >> you didn't talk about trade. there is some talk that the president will come out with this long awaited speech on trade. what is your sense of what is going on and what it will take to get some momentum on trade? >> we have an international group that specializes in that. i defer to them on the trade

questions. i am sure john murphy can give you a more thorough answer on that. aren't we doing a major presentation on that and a couple of weeks? at that point, the chamber's entire policy on trade will be laid out in an exemplary fashion. i will not begin to preempt any of that. i will pass on that. [no audio]

>> president barack obama is in cincinnati to talk about jobs and the economy in a speech to union workers at the eight -- afl-cio annual but the parade is expected to address health care legislation. that is live at 1:15 p.m., eastern time, right here on c- span. tonight on c-span, robert redford, environmentalists and founder of the sundance film festival talks about environmental issues. it is part of a series of events, conference organized by newest. that is at a critical p.m.. -- that is at 8:00 p.m. this is hosted by the center for american progress action fund and is almost one hour.

good morning, everyone. welcome to the center for american progress action fund. i'm the executive vice president here and it's my great pleasure to welcome you all to the first event of our new speaker series entitl the future of the american labor movement." the speaker series today is hosted by the center for american progress's american worker project. it conducts research on how we can increase the wages, benefits, and securities of all american workers and promote their rights at work and help ensure the american worker perspective essential to all of the work here at the center for american progress, whether on the economy, the environment, health care, and a host of other issues. the american worker project is directed by david madlind who we are very excited to have leading this effort and he'll moderate a discussion after our speaker's remarks with the audience. today's discussion comes at a pivotal time for our country's workers. in the midst of the great recession, the worst economic downturn since the great

depression with job loss and unemployment at near record levels and even worse, before this recession the economy wasn't working very well for many workers. wages were flat. health and retirement benefits were declining. the middle class was squeezed. the underpinnings of our economy were really unraveling. it was working for only a few. and we needed even before the economic collapse to begin to make it work for everyone. one reason why the american middle class wasn't as strong as it should be is because of the declining strength of the labor movement which now represents american workers. this is a moment with great potential to rebuild the foundations of our economy and with it, with us today is someone who will play a major role in shaping the new future. we are very pleased to have with us today as the initial speaker of this series richard trumka the secretary treasurer of the afl-cio. we're pleased to have richard with us today not just because

in september he is largely expected to be elected president of the afl-cio and to lead the federation of 56 national and international labor unions representing 11 million members including 2.5 million members in working america, its new community affiliate, but we're also pleased and i think you will all enjoy today because richard is a passionate advocate for workers and a charismatic leader and having his energy and enthusiasm and vision here is a great way for us to kick off this important speaker series for us. if any of you saw his 2008 speech to the united steel workers challenging racism in the presidential election, which more than 500,000 americans watched on youtube, you know what i'm talking about. richard trumka has a fire that burns strong and bright but he also has a reputation as a builder of bridges between competing interests and these two attributes make him a leader worth listening to. i look forward to hearing his thoughts today on how to

revitalize organized labor, our country's middle class, and our economy. after his remarks we look forward to a dialogue with you that david will moderate. please join me in welcoming richard trumka. >> i want to thank sarah for those very kind words but more importantly for all they do here, all you do here to respond to the challenges that this country is up against. i'm convinced that decades from now when the historians look back at these last eight years they won't only see it as a time when our country's leaders lost their way, they'll actually see it as a time when progressives found our voices. so the work of the center has been fundamental to making that happen. and you ought to take a great deal of pride. everybody that works here, all

the staff here, and the leadership here. it was a tremendous thing that you've been doing. it goes without saying that with the passing of ted kennedy these last few days have been sad ones. not only for those of us that have had the opportunity to work with him but i actually think for everyone in this country. we've all read a lot about how he was a great legislator and of course he was. he really was. and the reason why is that he has always -- he was always guided by his values, progressive values, our values. i remember last year at the democratic convention in denver he said that there's a new wave of change all around us and if we set our compass true, we'll reach our destination, not merely a victory for our party, but renewal for our nation.

and i've been thinking a lot about that the last several weeks. because this is also an era of change for workers and an era of change for our unions. we have the chance to make it a time of renewal for the american labor movement as well. this is labor movement's moment and together we can build the labor movement i think we need to create and the kind that we need to build to get the america that we want and deserve. an america where young people aren't robbed of the opportunity to go to college, an america where older men and women never have to fear that they'll outlive -- live their lives in poverty. an america where you don't have to worry about whether the health insurance you have is going to pay for the health care that you need. an america where every job is a portal into the middle class. see, that's the kind of america

we want. it's up to this generation of trade unionists to build a labor movement that can make it happen. quite frankly, we don't have a moment to spare. not a single moment. because the truth is, the middle class in this country isn't being squeezed. we're being crushed. women and men, working parents who ought to be living the american dream instead are losing their health care, losing their pensions, losing their jobs, losing their homes, and losing their patience. today there are nearly six time as many people looking for jobs as there are jobs to fill. and if all the construction workers who lost their jobs just since last november stood side by side you'd have a line stretching from washington to new york and back. and it's not just the private

sector. there is always that myth that somehow employees, public employees are immune from a recession. well, right now, just one month into the new fiscal year, 13 states are looking at budget shortfalls of $26 billion. and who's goi á/@@@@@@ @ @ @ @ >> it was not the uaw or afsce or the machinists or any other union that was calling the shots at bear stearns and lehman brothers or a.i.g. or goldman sachs. i can tell you for a fact that no one at the fed or the treasury department ever picked up the phone and call the afl- cio or any other trade union for

our advice or for our opinion. n. but even though it wasn't organized labor that got us into this mess, i'm here to tell you that we are the people who are going to lead america out of the mess. see, there's no other way because the bottom line is that you cannot rebuild this economy unless you raise workers' wages and the fastest and surest and most effective mechanism for raising workers wages is to collective bargaining process. increasing productivity only raises wages when workers have bargaining power. take bargaining power out of the equation, and you still generate wealth. but it won't get into the hands of the people who created it or really who must have it in order to grow the economy. that's what's been happening

over the last 30 years. john maynard understood the dangers and ravages of free market fundamentalism. and i'm convinced that the president and most of the house and many in the stat understand it, too. and that's why they're backing the employee free choice act. that's why the center for american progress was one of the very first organizations to endorse it, because just as growing -- as a growing labor movement built the first american middle class, unions can build a new middle class today. that's why our message is, don't support the free choice act because it's in labor's interest. support it because it's in your interests. support it because it's in your children's interests. support it because it's in your neighbor's interests. support the employee free choice

act because it's in america's interests. but the challenges facing unions isn't just to change the way labor law works right now. it's quite frankly changed the way that we work. it's to recon figure ourselves to respond to the needs of a new generation of working americans. today, well, tomorrow the afl-cio is releasing a new study we completed on the crisis facing young workers today. what it's going to show is that by every measurement young americans are in an economic freefall. one example? men and women under the age of 35 and earning less than $30,000 a year. 52% of them are living in their parents' homes right now because they can't afford to live alone.

younger workers ought to have health care. they ought to have paid sick leave. they ought to have paid vacation. they ought to have pensions. they ought to have union representation. but when they look at unions, too often what they see is a remnant of their parents' economy. and not a path to succeed on their own. this is the issue that'll decide the future of the american labor movement. while we all hear a lot about unions coming back into the afl-cio and quite frankly that's a personal priority of mine but ultimately it won't matter how many unions are in the afl-cio if we fail to capture the imagination of the millenniums. now, we ought to be clear. the problem isn't that they have some deep seeded hatred of unions. they don't. earlier this year rory and david

who is here with us did a study for the center for american progress that points out that support for unions is higher among younger americans than it is for any other age group. the problem is that they, not that they dislike unions. they think we do a lot of good things. we did a lot of good things for our members. a lot of good things for others. the problem is they don't think we have enough to offer them. and that's not the way it has to be. you see, a few years back there was another center study that was done by a friend of mine named jim grossfield. it found that young workers, white collar workers, who really didn't want much to do with the labor movement really sat up and took notice when they heard about unions winning protection for telecommuters, bargaining for portable health care, or standing up to protect

professional standards. when we talked about the problems facing contingent workers, they really listened and for good reason. after all, a man or a woman working as a temp or freelancer today may as well be walking a tight rope without a net. they know workers with unions make more money and they have better benefits. they don't just -- they just don't think that unions fit the way that they work. and you can't blame them. because we haven't really focused on the way that they work. we can't ask them to change the way they earn a living to meet our model of unionism. we have to change our approach to unionism to meet their needs. now, our unions, one union that's pioneering this in this area is the communication workers. they have an affiliate called

wash-tech. it began as a grass roots movement of temps working at microsoft in seattle. now, thanks to the internet, it has members from boston to silicon valley and it's evolving into a dynamic new union of tech workers dealing with problems ranging from job security and health care to offshore outsourcing and visas. but you know that we can only address their needs, where they work. we need to address the fact that a lot of young people going to college today are drowning in a sea of debt by the time they come out of college. there is a story that the writer anya has posted on her blog about a young man named robert bauman in new york. maybe some of you have heard about it. he grew up in foster care. he worked his way through

community college and college and law school. he survived two accidents, one that nearly cost him his leg, and all along the way he took out 32 separate student loans. over a period of four years his debt soared to just a little over $400,000. and if that's not crazy enough, five appellate judges said that he can't join the new york bar because he hasn't done enough to pay off his debt, his loans. that's just one example. there are literally tens of thousands of other examples. young people studying to be nurses and teachers and social workers and engineers. going to college with dreams of good careers and graduating into near bankruptcy. paying off loans the rest of

their lives. now fighting to make college affordable may not be a traditional union issue but if we care about the economic security of young workers, it really has to become one of our concerns and one of our issues. and that's quite frankly just one piece of the equation. i'm not suggesting that the labor movement ought to abandon all of its traditions. what i am saying is that nostalgia for the past is really no strategy for the future. than tradition should always have a vote. we just can't let it have a veto. you see, this is a critical moment for the american workers. we need to seize it. that doesn't only mean speaking to the interests of young workers. we need a labor movement that tells american workers in no uncertain terms that racism, indeed, any kind of bigotry, may serve somebody's interests but

it sure as hell isn't our interest. in 2009, 30 years after the death of a. philip randolph, labor still haunted by the legacy of jim crow. that's why after the employee free choice act becomes law our first priority has to be launching a drive aimed at the country's 5 million poverty wage african-american workers and other minority workers and the women that the economy has left behind. and there's more. we need a labor movement that's ready to partner with every employer who respects workers and understands that their employees are an asset to be invested in not an expense to be cut. but we also need to be ready to push back against any ceo who thinks that he or she has the

right to earn a good living but their employees don't. in short, we need a labor movement with the strength to compel every company to live up to the responsibility of corporate citizenship. and in that regard i can tell you that i know the center has been working to try to bring walmart around on some health care reform. but there should be no mistake on this point. none. walmart will never, ever be a friend of workers so long as it denyings its own employees the right to the strength and the dignity that can only come with a ufcw contract. and that's not all. we need a labor movement that's organizing and mobilizing as never before to speak out for workers whether it is at the courthouse, the statehouse or

the white house. today more than ever we need the labor movement that stands by our friends, punishes its enemies and challenges all those who, well, can't quite seem to decide which side they're on. i'm talking about the politicians who want to turn out our members. they want us to turn them out for every vote, make phone calls, door knocks, but somehow they always seem to forget workers after the votes are counted. for example, legislators who don't understand their job isn't to make insurance companies happy. it's to make americans healthy. legislators who say they are all for health care reform, but refuse to stand up for a public system that puts people before profits. you know, to hear some of them

you'd think the objective isn't to come up with a health care plan that works, it's to write a bill that republicans will vote for. they think they need to -- i think they need to understand that you can have a bill that guarantees quality, affordable health care for every american or you can have a bill that the republicans will vote for, but you can't have both. we in the labor movement, well, we keep our promises. and we damn well demand and expect the people we elect to keep their promises as well. now, what kind of labor movement does america need? well, it needs a movement that makes sense to a new generation of workers, a movement that challenges old bigotries, a movement with the strength to hold corporate america accountable, a movement guided

by progressive values and understands if you fight for those values you may not always win, but if you refuse to fight, you are always certain to lose. now, i know that we have some time and we want to have some time for discussion, but i began my remarks, i mentioned ted kennedy. well, there is another kennedy that also touched my life. it was his brother, bobby. it was around the time that i first went into the mines. i volunteered in his campaign. and some of you may recall all through that year he often quote george bernard shaw and say some men see things as they are and ask why, i dream things that never were and ask why not. you know something? that is who we are in the labor movement. we are people who dream.

we dream of men and women working at jobs where they are treated with respect and paid what they've actually earned. jobs that they look forward to going to every morning, not the kind they can't wait to get@@@@r here in our america, we think everybody should have a seat at the table and a chance to stand in the winner's circle every once in awhile. we dream of parents being able to look into their children's eyes and being able to tell them that if they study and work hard, they can achieve anything. that is the america we dream of. quite frankly, this is our moment to ask why not. thank you.

>> i'd like to ask mr. trumka to join us. thank you. i'm david madland, the director of the american worker project. i'm thrilled to have rich here. >> thank you. >> very good to see you. i'm going to moderate a discussion with the audience but as the moderator i'm going to take the opportunity to ask the first question. >> okay. >> you know, you talked -- you mentioned the importance of the labor movement, how it needs to grow and have strength to be able to represent more workers to have the power so that workers have better wages and sort of drive the economy. and you talked about a major strategy of doing that is to focus on young workers. and you laid out sort of your vision for attracting young

workers, but it was at a higher level. can you go many in depth. how are you going to target young workers? are there new strategies to do that? >> first of all, we are going to bring younger workers into the labor movement. we have lost touch with the generation and over the last ten years you are seeing them pay the price. we are going to invite a group of young workers, union and nonunion to the afl-cio so we can begin to communicate with one another. i want to know when i say something what they hear. i want to know when they say something i'm understanding what they want me to understand and i think we haven't done that. the first step is to bring them in and start talking about their needs and have them help us design a way to reach out to them. we want them to know there is an

entree into the labor movement, in the past there hasn't been. over the last several years we have begun to open up doors to come into the labor movement. we need to do more than that. we need to help place them as well. see us more on college campuses, talking to people, trying to get people interested in the labor movement, to come in and know the careers, no matter what you've studied in college, there is a place for you in the labor movement. we need professionals, we need economists, we need organizers, we need social conscious. i.t. people. we need everything that is being trained out there and we want them to know we are the place to be and where the action's at over the next several years. >> you sketched out an exciting future. i'm looking forward to seeing that put in action very much. now i'm going to turn the

questions over to the audience. i'm going to start first with members of the media. we have 15 or 20 minutes for the remaining questions. if you raise your hand i'll start with you. gentleman on the aisle. christine will come around with the microphone. >> thank you. terrell jones. this strategy targeting young workers a move to keep various issueses alive after efca. how concerned are you regarding efca? >> first of all, talking to young people isn't just about efca, it is about the future of the country. when we release the study tomorrow i think people are going to be astounded. we did the same study innet and ten years later young people are far worse off. it is almost a lost decade for young people. they do need to get involved and collective bargaining will help

them get into that. let's talk about the employee free choice act and its importance. it is not just a union issue, it is a stimulus issue, an economic recovery issue. from 1946 to 1973 productivity in this country doubled and so did wages. it was the largest distribution of wealth that the world has ever seen and the most interesting part about that time is the people in the bottom two quartile, their wages were rising faster than those at the top so the wage gap was closing. from '73 to date, productivity has continued up, but wages have stagnated. as a result, workers have gone through four or five different strategies to try to compete. we work more hours. we sent more people into the work force. we got a second or a third job. then the '90s came and we

borrowed on our 401(k) and that busted and we borrowed on our houses. we've proven over this period of time you can't drive an economy with debt finance consumer spending. we need a new engine. the only way you do that is you put money in people's hands so the consumers can actually drive and grow the economy in a real sense. that is what the employee free choice act is intended to do in part. it is not the only solution but it is an interesting and important part of the solution. that's why we're pushing it. we feel very confident we are going to get it passed. we said from the beginning we needed three things, one, an ability for workers to join a union without being harassed, intimidated or fired. we need ed greater penalties because the employers simply violated the law and paid the fine it was so paltry as a business cost.

we need larger penalties that act as a deterrent. we need a way to resolve disputes so people couldn't surface bargain their way out and deny workers and employees the right to have collective bargaining. i feel certain we will get all three of those goals met, quickly and hopefully before the end of this year. >> the gentleman against the wall. >> hi. my name is phil dai. my affiliate is state of the union book. incidentally on page 22 in that book i talk about a charismatic labor leader named rich trumka the kind of person the labor movement should put up front so i'm glad the afl-cio is

following up on that advice. >> phil, you demonstrated you have great wisdom. my question is it seems to 'me labor's agenda is somewhat languishing in congress and in other venues. doesn't this really point out the need for a slightly different political approach by the labor movement to instead of spending all its time and energy and resources electing specific individuals in addition to that labor possibly needs to do more to get its agenda, its issues, its values to be part of the political dialogue and on people's mind when they vote so that after an election labor has a mandate, a balance for its values, its agenda, its issues and labor is not completely dependent upon the priorities that legislators and other political leaders choose to enact? >> you know, it is an interesting point you made, phil. i'm going to get back to an eighth grade teacher i had.

the eighth grade teacher said every time you point the finger at somebody there are three pointing back at you. i want to take the three pointing back at me. some of it is our fault. we haven't mobilized around clear cut issues. i think you will see us do that. stand beside them and defend. if you look at a couple of issues, when we did that with the employee free choice act workers controlled the process, when we cede that to somebody else the process gets muddy. you'll see us after the first of the year -- and i'm hesitant to call it this -- our version of a contract with america. of course, we are not going to call it that. it is what we think will be necessary to create an economy that will work for everyone. we won't be replicating the old economy where the financial

economy did well but the real economy did so poorly. you will see us taking sharper edged positions where we say, this is where we stand. sometimes i think our friends need to go back and take collective bargaining 101 because you can't put out a proposal and have the other side say no and say if you don't like this, try this. and they say no, and you say try this. you don't bargain with yourself and i think frequently we've seen some of that. you'll see us trying to stop that from happening. you'll see us helping the president and the congress do what they want to do in their hearts and in their heads but need the political nudging to get done. we'll be there nudging them from this point on, i think. >> i'll take a question over there, gentleman in the back.

>> press associates union news. you mentioned your other top targets is organizing minorities and specifically african-americans. can you give us some nuts and bolts and are there other minorities that you want to organize? >> mark, i think i answered, i think i included other minorities as well and i said women because i think they have been left behind in large part because of the economy. they get paid less on the dollar than anybody else. you will see us looking at low-wage groups. you'll see us coming up with a strategy for that and trying to bring more and more people into the middle class. trying to provide a@@@@@@@ @ @ r >> it looks like there is one woman there by the tv screen.

another question? >> i am with a japanese newspaper. it seems like organized labor did pretty well with all gm fallout and the auto industry. i was wondering if you could comment on that and the effect it might have on labor over the medium-term. it seems like there was a positive payout to labor from the gm automobile restructuring over the first half of this year. could you comment on that and whether that is seen as a victory and what affect it might have on labor over the medium term? >> american workers,

particularly autoworkers, were not responsible for designing cars. in fact, bill law prevents us from having any input in those decisions. workers and of paying the price for bad management. if you look at the number of autoworkers that are losing their jobs, if you look at their standard of living, you would have to say that they paid a pretty heavy price. we are saving as many jobs as we can and the autoworkers are working as hard as they can to preserve the most for them. it is tough to call that a victory for either the oil workers or america. -- autoworkers or america. we keep producing less and less. there is the real economy out there and there is the financial economy. the financial economy was

originally designed to help the real economy do things. somewhere along the line, over the last 25-30 years, those lines have gotten blurred. the financial economy thinks it is the end in itself. at to the people at the top, it is. they have done exceptionally well. our country, each of the states, all the counties, all the municipalities, all the workers, all the retired people, and all the children, have paid a heavy price. it is up for us to turn that around, all of us collectively and try to start to produce things again, try to create good-paying jobs. the question we need to ask time and time again, when somebody says let's stimulate the economy, ask them to what end? if all you're doing is to create the same economy that we had

before, the same result will flow from it. less manufacturing, lower wages for workers, people at the top doing better. ask them what would be the new driver. what will be the new driver for the economy? an economy 70% driven by economists then it cannot have debt financed consumer spending as the driver. ask them, all of them. ask us, as well, what will be the new driver? if you don't have one, we will do the same thing over and over again and everybody will pay the price. this last generation of workers, when you see the study tomorrow, it is heart wrenching. what has happened. they can't pay their bills, they cannot live alone. they have debt that they will pay the rest of their lives. we can do better than this.

we're the richest nation on the pace of the earth. we can do better than this. . @ @ @ @ @ @ u

>> we still have a regular conversation with all of the largest ceos the country.

i will not tell you they are because they did -- they want to remain anonymous. we met once a month and they wanted health care to change dramatically. we worked out to the point where there was something we could agree to and they went back to the business roundtableí9< and e national association of manufacturers and the chamber of commerce and the beat them to death, saying that you cannot do this. they would not come out publicly and supported. . @ @ @ @ @ rnd@ @ @ @ @ @ @

that means a few companies are dominating them and the keep the price that. they charge whatever they want and you have nowhere to go. you cannot walk away. that is why the public option is so important. for the secretary of hhs be able to negotiate rates for health care, drugs, and create competition. if that gets out of hand, you have somewhere to go to for a public plan that will keep that down. the interesting part that i find is how disingenuous the other side is being. some people come in and say they do not want a government grant plan, but do not touch my medicare. probably 50% of the people in the country right now are covered a government plan.

if you include government employees, medicare, medicaid, social security, and the military health plans, probably half of the people are already covered by a government plan. they say, keep your hands off of it. that is the hypocrisy i laugh at. whenever we talk about a public option or even a single payer plan, the pharmaceuticals and hospitals started screaming the week -- that if we allow the government to negotiate that it would put them out of business. on one hand they say you cannot have a government plan because you do not want them controlling health-care. it is sloppy and government cannot do anything for it on the other hand, they say do not let them do it because they will put us out of business. if the government plan is a sloppy and it will put them out of business, what does it say about them? you all know what it says about them.

in the last seven-eight years, health-care profits have gone up 1000%. prices have gone up for you 300% or more. it is time. it is time for us to start asking the questions and to give all of our friends on both sides of the aisle a little bit of a backbone. say do not let this small minority of people stop with the vast majority of the american public wants, needs, and it demands. >> the gentleman in the very back left. >> hello i am with the caribbean workforce management. i have a question about efca as it was introduced as to how it might transform.

you believe the compromise will be in the bill and how you see the arbitration provision changing in a compromise bill? >> sometimes our friends fail bargaining 101. i will not talk to where we're willing to compromise or not. right now, it is a card check bill. we think we're trying to get a bill passed that will satisfy the three goals and i talked to about. >> we have a question at the far left over here, the gentleman standing up. can you wait for the microphone? thank you. >> george gould. i wanted to identify with a comment made earlier. when you were president of the mineworkers you showed the vision that you have a reference

to and the ability to talk to people that did not think they needed to purchase of eight or be involved with the unions. i have been traveling recently. in those travels, i have monitored some of the town hall meetings. i have noticed, this is not scientific but it is pretty accurate, that a lot of the people where young people, a lot were union people that were retired. they had not the cause and effect together. there were against things that were to their benefit. -- they were against things. given the predominance of the internet and talk radio and a lot of publications, how do you plan to put into place an effective way of communicating with these people so they understand what their needs are and what are the solutions for

their concerns? >> thank you, george for your question. in the past we have been too concerned with the top of the labor union. that is refined stories get written. you cover this blood in the labor movement. the story that was not written was that a% of the locals of those unions that left -- 80% of the locals that left the state affiliated with the afl-cio. we focus too much on the top and we have not focused on creating a seamless operation from the federal to the state to the local level. we're going to try to be much more grass-roots oriented, try to come out with something we can organize and educate around. the components i told you about with what it will take to create an economy that worked -- that will work for every working people. we will work for a process. it will not be dictated by a couple of policy people setting

at the afl-cio. we are trying to meet with affiliate's on the ground, young people, seniors, to come up with a real program that meets their needs. then we will start educating and organizing around that. we will put that out in the lecture. someone said this earlier, and i may have not answered this part of the question. what are a going to do to get these things done about your agenda? we are going to organize around that. we are going to have a sharper edge around that and we're going to do a lot of education. we're going to use the central labor councils, local unions, state fed's to do a lot of that. whenever an election time comes up, they will have things in their hands. they will have an understanding on what kind of economy it takes in with the components are so

that they can begins ask people who want their support, which one of these components do you support? then they will be able to hold them accountable afterwards. the other thing that we have done, the day after election day, we dismantle our operation. we put together these great operations to get people elected and then we dismantle the operation. by focusing on the grass-roots levels, we can keep the operation in effect 365 days per year and not only educate but hold people accountable. that is actually where we want to go with that. >> we have time for one last question. the man up front? right there in the white? >> hello, rich. but i would like to say something about trade, trade policy and how it affects american workers. >> trade policy has had, along

with tax policy a devastating effect on american workers. it has been a one-way policy, if you will. but mr. off by saying this. every time we talk about trade policy and say where protectionist as if there is nothing between no rules and an absolute wall around the country. they did not to talk about what is in the middle, about a country using traded to help its own economic well-being. everyone else around the world does this. we do not. that me give you one example. when we tried it to pass the buy american provision in the stimulus, people screamed. oh, this is outrageous. you are being protectionist. we were trying to stimulate our economy. if we did not stimulate it by

helping a country has an economy the size of rhode island, that does not help in a lot of ways. if you take just the windmills grade that stimulates the economy. if you bought the windmill from offshore, 62 cents out of every $1 went offshore. it did not stimulate our economy. we had that. your scream about it. you know what a secluded in their franchise? this is what european and union excludes. no u.s. company can bid on anything, right? anything dealing with drinking water, telecommunications, transportation, and the fourth one slips me but i will give back to you if it is important that is not enough.

those are all excluded from what we can bid on, but not what they can bid on. we need to start looking at trade as economic policy and not foreign policy. over the last eight years, the trade laws, feeble as they are, have not been enforced. they have not been. as a result, we have sustained a trade deficit that is astronomical and unsustainable. china's was at $250 billion and a growing trade it will be down a little bit now because of the recession and people stop buying and because of the dollar dropping. it will still be substantial. as soon as things get better, it will start to grow unless we trade that -- change the trade laws. we have created incentives for people to produce things of short and we have given them a guaranteed market back here.

they did not go to guatemala before because they were not sure if the products could flow back. now they can do that. we need to take a look at those and see what works and what does not. we need to say, if we're going to create an economy that is sustainable we need to do something about the deficit and the tax laws that go along with that. we have a long way to go. we need to enforce what we have, taking inventory about what works and what does not, then start negotiating trade agreements that actually work for the american economy in the american people. >> thank you very much. think our guest, richard trumka. [applause] we're thrilled to have you and very much look forward to working with the afl-cio.

your vision their right, i think, will help american workers for the future. >> i want to think the center because you have done a tremendous job. we are allies and look forward to working with you for a long time for a better, more progress of america. it think you. -- thank you. [applause]

>> and live picture from the cincinnati's coney island park. president obama is there today to talk about jobs and the economy. he will be speaking at the afl- cio annual labor day picnic. he is expected to address health-care talks.

an introduction will be made by a union member charlie dilbert. we then expect to see the president talking in a few minutes. we're live from cincinnati on c- span. ♪ >> again, we expect obama to speak here at the annual afl- cio labor day picnic that is starting this shortly. while we wait for that to get underway, here is a portion of today's "washington journal." momentarily. the detroit free press starts with a labor story on labor day about unions. organized labor today, u.a.w.'s, new direction inspires visions of hope

and disaster. on this tkhraeub day with the world of the workers so changed, one might wonder what would walter reuther also from this article, the patriarch of the uaw be rolling in his grave. he says, "he would take a pragmatic view just like me uaw has taken." as we ask you the role this morning of the labor unions and the economy. first off, we have robert on our democrats line. go ahead. caller: the unions have always tell our economy.

the republicans and the right wingers back towards the reagan administration destroyed the union and are constantly destroying the unions. now, the fox klux klan are going to destroy anything that helps the united states of america. >> thank you. he talked about president reagan greeted this is an article about obama and the role of unions and his impact. this article is saying that mr. obama has delayed a push for the union's no. 1 legislative priority, a measure to make it easier for workers to organize. he faces potential conflicts on trade and how fast the push for immigration reform, and also

health care. friction is steadily spilling out into the open. mr. obama is renewing his courtship of the labor- management -- labor movement who spent august doggedly defending his health plan across the country. today he will mark labor day by speaking and the afl-cio technical in cincinnati agreed we will have coverage of that the sap janine. -- this afternoon. caller: i think this hurts. one of my chief complaints is that unions today are functioning as an administrative agency instead of representing members that are in a union. i think they lose credibility on that issue. i think that is basically my main objection. guest: he said the act as administrative agent. can you explain that? caller: they are following

procedures, if you want to call it that. as far as looking at the way things are instead of representing the interests of the union. that is the best way i can explain it. >> we believe this recorded portion of today's "washington journal" to take you to cincinnati. >> let's get fired up for this. [applause] i'm going to bring him out here in a minute but i have said they now want to say first. hello, brothers and sisters. i am a member of 265 out of a cincinnati ohio. [applause] i was asked to introduce the president today because i am living proof that the stimulus package is working.

the first time it affected my life was when i was laid off. while looking for new employment, my insurance started to run out and i had to make covert payments. those were partially covered by the stimulus package saving me and my family money. >> i had to make cobra payments. it also provided extra money for my family. finally, when i started back to work, the company was awarded work putting up signs and doing other work construction work on highways and state roads. these are being directly funded by the stimulus package. i would also like to say i'm a parent of a special needs a child and it is of the utmost importance to get behind our president and his efforts for health care reform grade [applause] -- reform. [applause]

without further ado, it is a privilege and an honor for me to bring our president, barack obama, out here. [applause] >> hello, cincinnati. [applause] thank you. thank you, ohio. [applause] thank you. thank you, labor. it is good to be back in cincinnati. [applause]

it is good to be back in ohio. it is good to be back among the great friends, great leaders, and i want everyone to give a great round of applause it to charlie dilbert that a great introduction. [applause] i want to think -- i want to thank kathy matea and the band for their entertainment. [applause] how y'all feeling today? are you fired up? are you ready to go? i cannot think of a better place to be on labor day. i am at america's biggest labor day picnic. we are with these workers and families of the cincinnati afl- cio. [applause]

i am so proud to be on the stage with charlie because he reminds us in these tough times america's working men and women are ready to roll up their sleeves and get back to work. i want to salute your local afl- cio leaders, the executive secretary treasurer doug sizemore, president joe zimmer, state president, and your outstanding national leaders, a man who we think for devoting his life to working americans, president john sweeny. the man who will take the baton of leadership, who we need to succeed because a strong labor movement is a palm -- is part of

a strong economy in america, rich trumka. [applause] although ohio is wonderful -- ohio's of wonderful governor could not be here, we had the lieutenant governor in the house. we have the secretary of state, attorney general, cincinnati mayor mark mallory, hamilton county commissioner david pepper. we are joined in by members of ohio's outstanding congressional and delegation. we have the congressman steve greenhouse, and a friend who is at the forefront of the front of every in-flight including the

battle for health care reform. [applause] i am proud to be here with a leader who is reenergize in the department of labor, who realizes that it is not the department of management that it is at the department of labour. a daughter of a teamster. [applause] my director of recovering for audio communities auto communities. he is doing outstanding work. cincinnati, like a lot of americans you're having some fun today, taking the day off, spending time with your children. some of you may be proud of your

growing skills. grilling skills. every man thinks he can grill. whether he can or not, that is what michelle says. michele says she is a better > me. -- better griller than me. you are enjoying some good music, food, some famous cincinnati chili. [applause] today, we also pause to remember and to reflect and to reaffirm. we remember that the rights and benefits we enjoy today were not simply handed to america's working men and women. they had to be won. they had to be fought for by men

and women of courage and conviction, from the factory source to the shopping aisles, they stood up and spoke out to the fans -- to demand an honest day's pay for an honest day's work. [applause] many risked their lives. some gave their lives. some of made it because it of their lives, like senator ted kennedy, who we remember today. [applause] let us never forget much of what we take for granted, the 40 hour work week, minimum wage, paid leave, pensions, social security, medicare.

they all bear the union label. [applause] it was the american worker, men and women just like you, who returned from world war ii to make our economy is the envy of the world. it was labor that helped build the largest middle-class in history. even if you are not a union member, every american owes something to america's labor movement. [applause] as we remember this history, let's reflect on its meaning in our own horn -- own time. you work hard and meet your responsibilities. you play by the rules and pay your bills. in recent years, the american dream seems like it has been

slipping away. from washington to wall street, too often a different attitude has prevailed. weld was valued over worth. selfishness over sacrifice. -- wealth over worth. the right to organize was undermined rather than strengthen it. that is what we saw. it may have worked out well for those people at the top, but it did not work out for you and did not work out well for our country. that culture and the policies that flowed from that undermined the middle class and helped create the greatest economic crisis of our time. today on this labor day, we affirm our commitment to rebuild, to live up to the legacy of those who came up before us, to combine the values

that have served us so well for so long, hard work, responsibility, new ideas for a new century. we want to assure that our great middle-class remains the backbone of our economy, not just a vanishing ideal we celebrate at it? once a year as a summer turns into fall. we want a reality for the families of ohio and the families of america. [applause] that is what we have been working to do ever since i have taken office. i know that some people have already forgotten how bad it was just seven months ago. you noticed that? they have a selective amnesia. let's just remind them for one second. [applause]

the financial system on the verge of collapse. . depend700,00 -- 700,000 workers losing their jobs each month. that is what was happening just seven months ago. that is why we took bold, swift action. that is why we passed an unprecedented recovery act. we did it without the usual washington earmarks and pork barrel spending. ohio, it is working. [applause] * are still tough. -- times are still tough. we have given a tax cut. 4.5 million families in ohio, including those in cincinnati.

that is a promise i made in the campaign and a promise i kept as president of the united states. [applause] we cut taxes for small businesses, made new loans to more than 1000 businesses in ohio to grow and hire more benefits -- hire more employees, we extended benefits for americans including charlie and thousands of other ohio citizens. [applause] across america, we have saved the jobs of tens of thousands of state and local workers including teachers and first responders right here in ohio. do not take my word for it. ask those in ohio if -- what it would had to do. we are rebuilding america's

infrastructure including improvements to interstate 75 in hamilton county led by a local cincinnati contractor. [applause] we have got more than 200 other highway projects across ohio we are making historic innovation, much of it still to come in the months ahead we are building a new voice margaret to carry policy from coast to coast. lansdowne high-speed rail lines, providing the largest boost in basic research in our history. all this will put people back to work, steel plumbers, engineers, you name it. our recovery plan is working.

bricklayers, too. [applause] the financial system has been saved from collapse. home sales are up. we are seeing signs of life in the car industry. business investment is starting to stabilize. for the first time in 18 months, we are seeing growth in manufacturing. when is the last time you heard that here it in the united states of america? [applause] on friday we learned that the economy lost another 216,000 jobs in august. when americans lose their jobs, that is simply unacceptable. for the second straight month, we lost your job than the month

before and it was the fewest jobs that we have lost in one year. [applause] make no mistake. we are on the road to recovery, ohio. i do not let anyone tell you otherwise. [applause] his -- audience: yes, we will. >> we still have a long way to go. we are not going to rest. we are not going to let up, not until workers who were looking for jobs can find them. good job but to sustain families and sustain dreams. not until responsible mortgage owners can stay in their homes

and all americans have a shot of -- shot at the american dream. now, we can not do that if we go back to the old economy with over leveraged banks, maxed out credit cards, ceo's getting multimillion-dollar bonuses. and economy of the bubbles and bursts, your wages and incomes set -- staying stagnant. even as we recover from recession and work to cut the deficit, we have to build a new foundation for prosperity. we need an america with the reformed financial system. we need regulations in place to protect consumers so we never had a crisis like this against.

i do not wish to have to bail out any more banks. we have to make sure we have regulations in place to prevent that. [applause] we need in america where energy reform creates green jobs that can never be outsourced. it frees american from the grip of a foreign oil. an america that commits to education because the country's that out educators today but out compete us tomorrow. the best jobs go to the best educated. [applause] we need to do a better job of educating our sons and daughters. yes, i am going to have something to say tomorrow to our children. we need to tell them to stay in school and work hard. that is the right message to send. [applause]

we need an america that invests in the middle-class, which is why i have created our task force for middle-class working families led by outstanding vice president, joe biden, to make sure that our policies always benefit you, the american worker. today, we are taking another step. i am naming ron bloom, raise your hand. i am naming ron bloom name -- to lead our efforts to help build the american class. ron has worked with steel workers, service employees,

management to create jobs. he helped guide our auto taskforce and is my point person on manufacturing. he is going to create the next generation of great manufacturing jobs to ensure american competitiveness in the 21st century. [applause] 0, and by the way, just in case you were wondering we are also want to build an america where health reform delivers more stability and security to every american. [applause] we're going to reform the system for those who have insurance and for those who do not. i will have a lot more to say

about this on wednesday night. i might have to save my voice a little bit. i get too excited. i do not want to give anything away. i want you to tune in. let me just say a few things. on this health care issue, we have been fighting for quality affordable health care for every american since teddy roosevelt. think about that. that is a long time. [laughter] the congress and the country have now been vigorously debating this is to begin this issue for many months. debate is important because we have to get this right. every debate at some point comes to an end. at some point, it is time to decide.

at some point, it is time to act. ohio, it is time to act and get this thing done. [applause] we have never been in this close. we have never had such broad agreement on what needs to be done. because we are so close to real reform, said in the special interest groups are doing what they always do which is it just to try to scare the heck at a feeble. -- heck out of people. i have a question for all these people who say we're quintuple the plug on granma, all about illegal immigrants, you have heard allies. heard the lies. i have a question for all those people. what are you going to do? [applause]

what is your answer? what is your solution? and, you know what? they do not have one. [applause] their answer is to do nothing. their answer is to do nothing. we know what the future looks like. insurance companies raking in profits of discriminating against people because of pre- existing conditions, the nine were dropping coverage when you get sick -- denying or dropping coverage. you are all spending your time trying to protect the benefits you already fought for. premiums continue to skyrocket 3 ti fastmes than your wages. -- three times faster. more businesses are cutting more jobs, more americans are losing health insurance, 14,000 people

every day. it means more americans dying every day because they do not have health coverage. that is not the future i see for america. i see reforms where we bring stability and security to people who have insurance today. you never get have to worry about going without coverage. if you lose your job, you change your job, you get sick, you have coverage for you. where there is a cap on your out of pocket expenses so you do not have to worry about the serious ellis breaking your family even if you do have health insurance. -- a series illness breaking your family. [applause] where you never again have to worry that you or someone you love that will be -- someone you love that will be denied coverage. i see reform where americans and small businesses that are shut out of health insurance today will be able to purchase coverage at a price they can

afford. they will be able to shop and compare in a new health insurance exchange, and marketplace with competition and choice. it will continue to hold down costs. i continue to believe that a public option within that basket of choices will help improve the quality in and bring down costs. [applause] i see a reform where we protect our senior citizens. we close the gaps in the prescription drug coverage is under medicare that costs older americans thousands of dollars every year out of their pockets. reforms that will preserve medicare and put it on a sounder financial footing, cut waste and fraud, and more than $100 billion in public subsidies to already profitable insurance companies. i want a health insurance system that works as well for the

american people that it does as the -- for the insurance by companies. [applause] they should be free to make a profit. they also have to be fair. they also have to be accountable. that is what we're talking about -- security and stability for those who have insurance and help for those who do not read coverage you need at a price you can afford. we need to bring costs under control. that is the reform that is needed in the reform we are fighting for. that is why it is time to do what is right for america's working families, put aside partisanship, stop saying things that are not true. we need to come together as a nation and pass health care reform now. this year. [applause]

the you have fought harder and longer term for this danube, our brothers and sisters of organized labor. region for this than you. in good economic times and bad, labor is not the problem. labor is part of the solution. [applause] that is why the secretary of the department of labour was to protect labor, you're right to bargain collectively, your right to organize. that is why some of the first executive orders i issued overturned the previous administration's attempts to stifle organized labor's. i support appeared efca label -- to level the playing field for those who want to form a union. there is nothing wrong with that.

when labor is strong, america is strong. when we all stand together, we all rise together. [applause] that is where the first piece of legislation i side into law was the fair pay act. -- legislation i'm signed into law. will pay for equal work. -- equal pay for equal work. lily satisfactory in alabama. she did her job and she did it well. -- lily worked at a factory in alabama. over the years, she had lost hundreds of thousands of dollars in benefits. she could have moved on. instead, this alabama grandmother made a decision. she said the principal was a

mistake. she stood up and spoke out for what was right to the supreme court, to congress, and then to the white house where she stood next to me as i signed the law that bore her name. [applause] ohio, that is the lesson this day. some things are worth fighting for. equal pay, fair wages, and dignity in the workplace, just as on the job, an economy that works for everyone, because it in america there it are no second-class citizens. an economy where you can make a living, care for your families, were you leave your children something better. where we live up to our fundamental ideals. the words put on paper some 200 years ago that we are all created equal and we all deserve a chance to pursue our happiness.

that is the calling to which we are summoned on this labor day. that is the cause of my presidency. that is the commitment we must fulfill to preserve the american dream for all of america's working families. i'm going to need you to do it. at the beginning of this speech, i talked about whether or not you were fired up. [applause] i know that over the last couple months the economy has been bad, recession has been wearing on people, beating -- people losing jobs, health care, losing their homes in some cases. it has been the usual bickering in washington. it does not seem like that never stops. pundits on tv and saying how this is not working, that is not working. you know, but you start getting

into a funk. whenever i see people in that- place, i always think that to a story i told during the campaign. some of you have heard this. i thought i would say it again. [applause] it is about where the phrase "fired up"come is from. right at the beginning of the campaign for the presidency, no one gave us a chance. no one could announce my name. [laughter] i went down to south carolina. where was i? [laughter] i was in greenville. am i right? the legislators were having a

banquet and they invited me to come down and speak. i sat next to a state rep. i had no one supporting me back then. i said, "will support my campaign for the presidency of the united states?" look me up and down and said, "i will give you my endorsement if you come to mind hometown of greenwood, south carolina."daut i had had a glass of wine and i said ok. let's shake on it. [applause] come to find out that greenwood is about 1.5 hours from everywhere else. a month later, i flight in and i have been campaigning for two weeks straight, i am exhausted. i am dragging my bag into the hotel room. i get it have on the salt rigid on my shoulder.

excuse me, sir. you have to be in the car tomorrow at 6:30 a.m. why? because we have to go degree would like you promised. -- we have to go to greenwood. the next day, i wake up and i feel worse than when i went to bed. i stagger over to the window, open the lines, and it is pouring down -- open the blinds. there's a bad story about me in "the new york times." i go downstairs and my umbrella breaks and i get soaked. by this time i am in the car, i am sleepy, wet, and i am mad. [laughter] we start driving and we keep driving, driving.

it goes on forever. 1.5 hours of driving. finally, we get to greenwood, south carolina. you do not know that you are there right away. there are a lot of fields. we polo -- we pull up next to a park. i get wet and go inside. after this 1.5 hour drive, lo and behold there are 20 people inside. most of them are wet and do not look like it want to be there either. i am a professional. i go and shake everybody's hands. i have kind of a tight smile on my face. how did you, nice to me. -- how do you do? i hear this voice behind me. fire it up.

[laughter] i am surprised. i am scared almost. everyone else ads like it is normal and they all say, "fired up." i did not know what is going on. i look behind me and there is a little woman who could not be more than 5'2". watch out. your little, too. she is probably about 50-60 years old. she dressed like she just came from church. she had a big church at. she is smiling at me. she says, "fired up!" turns out that she is a city council member from greenwood who is famous for her chance.

every venture goes to she likes to chance, "fired up, fired up, ready to go," she does a little dance. for the next five minutes it seems like, she just keeps on saying her little chance, "fired up, fired up," and i am thinking the woman is upstaging me. [laughter] i do not know what to do. when is this thing going to be over? here is the thing, ohio. after about a minute or two, i'm starting to feel kind of fired up. [applause] i'm starting to feel like i'm ready to go. i start joining in the chance. it is making me feel good. -- arthur joining in the chant.

for the rest of the day, whenever we campaigned a whole day, i would say, "are you fired up?" it just goes to show you how one voice can change a room. [applause] if it can change your room, it can change the city. if it can change the city, it can change estate. if it can change a state, it can change the nation. if it can change the nation, it can change the world. your voice can change the world. your voice will get health care passed. your voice will make sure that the american worker is protected. you can build america of. i need your help. thank you, cincinnati. are you fired up?

ready to go? fired up? ready to go? fired up? ready to go? i love you. bye bye. ♪. .

♪ ♪ ♪

♪ ♪ ♪

♪ ♪ >> president barack obama live in cincinnati it was at the afl- cio labor day picnic. tomorrow, he is back in washington, d.c.

he will address students at the start of the school year and we will have live coverage on cspan at noon, eastern for the president plans to tell the nation's school children that they are most responsible for their own education. the white house posted his remarks in advance. you can find a link on our website, c-span.org. other presidents have also addressed students through the years. we will show you president ronald reagan 1988's education week address tomorrow morning at 10:00 a.m., eastern. that is followed by george h. w. bush speaking on his initiative to students across the country. you can see both of those events online at c-span.org. on wednesday, president barack obama addresses a joint session of congress on health care. we will have live coverage on c- span at 8:00 p.m., eastern time. there's word today that the chairman of the senate finance committee is proposing a deal on

insurance companies to help pay for -- to help pay for health care for uninsured americans. senator max baucus is circulating his proposal among the five other members of a bipartisan group trying to craft a bill. that group meets on tuesday. camille non-cspan, from today's "washington journal" a debate on health care. host: the house and senate returns tomorrow tells what the preserve -- procedure will be and where the health legislation stands now when congress comes back, what do they need to get to first? guest: the first procedural moment is in the senate on this committee which is the last of

the committees that needs to act on this bill. -- the senate finance committee. the house seems to be waiting patiently for the senate to decide the shape of its bill and that is the key place where that will come together is in the senate finance committee chaired by senator max baucus of montana. he is working with a gang of six, five other democrats, and he is suggesting that he knows he is out of time and once the president speaks on wednesday night, he will get his marching orders. host: that is the last piece of the puzzle of the present has added another one that he will play in wednesday night. -- you'll weigh in on wednesday night. how will but the president says affect the outcome? guest: will be important because

he has some very difficult differences to deal with. in the house, he has about 58 members who are more liberal who say they will not vote for a bill that has a public auction. -- public option. in the senate, it is not totally clear that a plan with a public auction could pass. president barack obama has to find a way to talk to both sides of that debate and thread the needle in a way that can get the bill moving forward. host: you mentioned that the liberal -- liberal side of the house. there was a line in the sand drawn as to what they would accept. >> we support what the president has said all along, a robust public option. he campaigned on it and he

continues to talk about his support for it. we will stand behind him. nancy pelosi has said that nothing will pass the floor without a public auction for it with all due respect to senator dole, the republicans are not going to support a credible health care reform bill led by the president or the democrats. we will not get their support for it i appreciate the work that has been done by the president to try and get a bipartisan bill but there will be no part partisan bill parent host: maxine waters there. she was talking about support in the house and how public option must be part of the bill. how much will president barack obama have to listen to that the wing of the party on health care but also on issues like the policy in afghanistan? guest: i'm glad you asked because this is the topic of our cover story this week. we have been thinking about this

a lot. this is the unheralded story which is that the president has started to not annoyed but disappoint liberal end of the party. they felt as though they have elected their preferred candidates. . they have expecting more from him than they have been getting. the city's -- they see this public option that the federal government should help people by providing them with health care as they know-breaker for the emperor the cannot understand why the president would not stick with them. host: it may also determine

whether this extends beyond the actual health care. this could show whether obama and the democrats are casting a progressive agenda. guest: that means everything from more federal in palma with health care but an aggressive and strict system on the environment, a more assertive reintroduction of investigating the bush administration abuses, gave rights, labor rights, can't forget that one. host: what is the political downside for democrats? guest: the problem for the president is that while there may be the liberal wing of the party there is also a pretty sizable moderate wing. the democrats have a 40-seat majority in the house. 49 of those seats won by democrats lester were won by

republican candidate john mccain. democrats in those districts are dealing with much different pressures than the more liberal members of the party. they were hearing from their constituents this august that they are not keen on any plan that could be seen as an extension of government. host: on the senate side, you do a piece of senator ted kennedy who died two weeks ago. how much is he being missed in this debate going forward? guest: enormously. the republicans are probably happy. they are certainly happy that they don't have his legendary negotiating skill to deal with. having said that, there was a sentiment right after he died that this would be a kickstart for health care.

they thought it would help president barack obama move this along but i think that is overstated. the types of people who would say that, are not inclined to go for the president anyway. those democrats who say they will not support health care without a public auction, i will say that most of them will support it no matter what. i want to support the president. host: we're talking about congress returning tomorrow. we talked a bit about where the senate stands with health care. the house has passed -- the house committees have passed separate versions of this. how does this get weave together into one bill on the outside? guest: there is still work that needs to be done in the energy and commerce committee. they reached the deadline of the

end of the july session and still have a couple of dozen amendments been agreed they put it offo c1 that needs to be worked off -- worked out. the house leadership will take all three versions of the bill and combine it and they will do that with an eye toward getting 218 votes in house of representatives. they will be doing the wheeling and dealing that was necessary to get the bill through the energy and commerce committee. it will balance the interests of those on both sides of the party and military host: host: you read about the town hall meetings. you wrote that people want washington to act. they don't see washington's past actions making much difference in their lives. they want washington to fix things but they expect president barack obama and other leaders to overcome their partisan differences. they don't trust government to

do the right thing for it the public trust in government has been declining and washington's intense intervention in the of boat last fall has an impact on the government being -- not being able to do transformational legs. -- transformational paying spirithings. people become nervous about what they are getting for it sounds like the writer is saying that these august meetings were more than just anger. there was real concern out there, going back to last year's passage of the economic bailout guest: look back at congress passing medicare 1965. 3/4 of americans said they trusted the federal government to do the right thing. now that number is well below

50%. that is partly what you were seeing this summer. there is a lot of concern about the big numbers that people were saying, $700 billion in the financial bailout, all money that went to the automakers. the seven other $87 billion economic stimulus package -- the $787 billion economic stimulus package. host: david hopkins writes about last year when the economic rescue came out and have that failed initially in the house and then some of the reaction to it has agreed you draw an analogy between then and now. that was september of last year. it was a high legislative hurdle to pass but not done very guest: guest: it can be done.

my memory of what happened last fall was that there was a sense of doom and immediacy in the financial markets last fall. it held a political gun to the head of congress. secretary paulson was visibly anxious and verbally anxious on the farm with lawmakers. -- on the telephone with lawmakers. he was not sure it work but he knew it was not done, things would go off the cliff. host: birmingham, alabama is the first on the telephone. caller: i wanted to say that it's not really so much the government. that is why we elect them. they can do certain things.

if they had not pass the stimulus bill, we don't know how we would look right now in this country. it is not so much the article you just read, it isñi that the right wing part of the republican party, they are trying to tell president barack obama -- they are trying to tear the obama administration down. they are doing everything they can to tear the administration down. they are making government look bad. it is time for president barack obama -- i voted for him, i am an african-american -- he needs to get with it. what are we need to pass, we need to get it done. host: thank you. you could heare was getting frustrated.

i feel supported in our cover story that there is an stumble left. -- there is angst on left. the republicans will spurn him even more. maxine waters said a few moments ago that she is suspicious and many democrats are that no amount of compromise will be good enough to draw republican votes for republicans are out to vote, no on the issue. host: here is another clip. >> republicans are ready to work for comprehensive health-care reform. when i went home to town hall meetings across the state of indiana, i heard people saying

that we need health care reform and we need something to lower the cost of health insurance for families and small businesses and lower the cost of health care. i also heard people say that they do not want a government- run plan that will lead to a government takeover of health care in this country. >> the option is one choice. how was that a government-run plan? >> that is a fair question. i saw robert gibbs saying that a public option would not affect people in any way, shape, or form. the american people know better. host: brian friel, maxine waters said ask for the plan is. -- asked where the plan is. guest: if you look at the lessons from last few elections, democrats felt like it was a repudiation of the bush years.

republicans did not do it that way. they do it as the conservative program not being implemented by the bush administration. they felt there was too much spending. since then, the party has coalesced around the idea of smaller government in the same way it has in the past. you will not find republicans coming on board to a plan that sprawls like the government. that poses a problem for the president because it maxine waters and other liberals hold firm on the idea that the will must support anything without a public auction and the senate cannot pass it, that would force the president to compromise with republicans and get much less than most democrats would want. host: let's hear from a

republican caller from hartford, conn. caller: good morning. giving the states back power instead of giving the money to the federal government, the state's should have health care control. with cable, you have to buy it as a separate cable would be cheaper if you only had to buy the three channels use every night. the insurance companies have set up where we have to buy benefits for viagra and end of life health care. if you are younger, you only have to choose certain things. it would be cheap to get health care for it ted kennedy was the one who got the insurance companies to offer the hmos.

guest: i think the caller suggests something along the lines of what the republicans would propose witches -- which is, if they were running the congress and they would propose changes to the tax code, incentives for business to provide more people insurance. i would say the only big government intervention they might go along with is an expansion of medicaid which is a federal health insurance program for the poor. it is now only open to people just below the poverty level. they might support raising the eligibility to get more of the working poor involved. as much as a business-oriented approach would be used. host: the debate has been played out in an opposing field in

these town hall meetings. now comes the home turf for the president before a joint session of congress. does he still have a -- his poll numbers are slipping, the delay on health care -- does he have a pair reception on capitol republican members? guest: yes, i would say that he has not done anything to really annoyed them were betrayed by him. they feel as though he has been a straight shooter with congress, so far. there's no sense of annoyance with him. when he speaks to congress on wednesday night, the audience is not in that room but on tv. host: gerry connolly was on this program one week ago and he want to see the president twisty few arms. is that needed? guest: he has avoided doing that. the democrats learned about this

with the bill clinton health debate where lawmakers felt the white house was too much in the weeds and to involved in pushing specific proposals. the white house has stepped back. host: let's go to cape cod, the independent line. caller: two things -- one thing is i believe the reason why health care is stalling is because the corporations are putting undue influence on all the legislators. on one of the things they could do is to change the deposition from a corporation, be it a person to a person that has to be a human being. corporations lacked the heart and soul. if any human being who is also a person lacks a heart and soul,

they would be in prison for life or be already killed with the death penalty. they should leave it up to the states. i and massachusetts. they don't have a perfect system here. it is a lot better than it was. if they can agree on some minimum parameters and say the states have to do something, then some states will get it right and everybody can eventually imitate that. host: i want to follow-up on that. robert gibbs was on yesterday on "meet the press." here is what he had to say. >> if viewers for abc and everybody else turned into hear the president at 8:00 on wednesday night, they will leave that speak knowing exactly where the present stance, exactly what he thinks we have to do to get health care done this year nt in

-- >> and what he won't expect as well? >> we prefer to outline the positive and not the negative. >> how about the question about legislation? there has been some talk that he might draft legislation himself. >> we have been looking at that line which for months. you have several different proposals in the house and senate that have made their way through the committee process. the senate finance committee continues to work. you will have ideas that come from different directions for the president has to take those trends and pull them together. >> he will do that and put his ideas on the table? >> people believe that speech knowing where he stands. if it takes doing whatever to get health care done, the president is ready, willing, and able to do that. host: it would seem that the president would have to be specific in terms of specific

language that the congress can understand but folks watching the speech could understand. guest: exactly right. leading this in congress' hands is not working. the president is doing what he is not for best which is the elevated rhetoric. it is time for him to put that rhetoric aside and speak specifically and try to sell it. host: it is also about poll numbers that follow and build it into a consensus. guest: there was an interesting shift in message in july. the white house and congressional democrats started talking about the health insurance reform. they emphasized the fact that they were making the insurance companies the enemy in this debate. it will be interesting to see if president barack obama continues that. insurance companies argue that

they have been cooperative all long. they are more cooperative than they were in '92 -- 1993. host: the administration has been able to work with the insurance companies but also pharmaceutical companies putting this together guest: guest: they cut a backroom deal to limit their exposure in this bill. opponents of the pharmaceutical companies said that the president is letting them off too easy. host: we have another half hour with our guests brian hopkins -- hawkins ands cal brian friel. how does the debate over health care impact the ability of congress to get the spending

bills done on time? guest: it helps somewhat. the worst and listeners get annoyed when i say things like this but congress, even though they are 535 people, they have a limited attention span and limited energy level. health care which is the biggest thing the congress is doing is eating up a lot of the attention. fortunately, for congress and for the president, with democrats running spending process, this process is running more smoothly than it has in past recent years. host: you think they will be on time? guest: they will be relatively on time. they are coming back to marron that leaves them only three weeks to go in september. i cannot remember all 12 of their bills but for i think are ready to go. that leaves eight that need to go for the senate and be negotiated rebels a lot of work to do. i will predict that there --

they will be three weeks late. caller: you have one saying that president barack obama bailed out the automakers, but banks -- the banks, and the gentleman with the botrytis try to give an explanation. . the bowtie. you're not saying that this came from president bush. to group all this together and dump it in a bag and give it to obamas, you are not being honest. at least say how it came about and ended up with this big plate of -- just a mess. host: i believe that our guest

mentioned that secretary paulson is due this happened under. guest: it is also the case that senator obama, at the time, was helpful to the president in getting that done and was politically eager for this to be addressed before the election and before his election. he wanted something done before he was elected. senator mccain and obama were helping president bush take this off of their agenda. caller: good morning. correct me if i'm wrong but if you leave your place of employment and go to a different place of work, you are not allowed to buy private insurance. that is where you will fall to the government's system and eventually the private insurance will dry up and go away. am i right or wrong? host: you're talking about the proposal that have been put

forward? guest: my understanding is that how the house version works is that you would go into the exchange rather than directly into the public option. you would have a choice among different private plans as well as if there is a different government plan. host: orlando, florida, good morning to jeff, on our independent line. caller: one of the three bills in the house has an amendment attached to an outlet to find out what the panel thinks the chances of that surviving is. my other question is, many states are passing options and insurance reform. those laws are very restrictive as to recover. florida has one and only covers 14% of autistic children. if you work for business as that

-- that is less than 50 employees, blog does not apply to you. you get insurance for your employer and it is self-funded, you are not covered by that law. there is one bill in the house and one in the senate that would correct that self-insured loophole. what does your panel think about that? guest: i don't know about the specific provision. i do know that the democratic congress -- congress generally, republicans and democrats are more inclined to support disabled people. guest: there is so much in these bills. they are giant bills. one of the things in both bills is that there is a public health fund there's about $10 billion per year in the house for

improving the health infrastructure. the autism provision is in there and the public health and infrastructure that have not gotten a lot of attention, so far. as the president moves the debate into the details of the legislation, it will probably come up and especially with the swine flu issue coming up, i expect the public health aspect of this will gain prominence. host: in terms of funding, there is a new idea being floated by max baucus of a new feet from health insurance companies. it is calculated to appeal to senator olympia snowe. they said it is unlikely that the proposal will win support in its current form from other republicans on that panel. this is a new winkle ahead of the presidential speech? guest: the senator baucus, the

chairman of senate finance committee, probably his last politically viable effort to shape the debate in advance of the speech. they are trying to pick up one republican center at time. they are eager to pick up senator snowe who is the most moderate republican in the senator if it does not work, you'll see by the end of the week that they will get a sense that this will be an all- democratic effort. host: 2 charlotte, n.c., a republican column. caller: as i understand, most insurance companies function on a state-by-state basis. you have multiple bluecross/blueshield upgrade. would it not be easier if you had an agreement by the 50 health insurance commissioners whereby you have a standard policy that would be nationwide and have these companies like blue cross and blue shield of

the state's function as a national insurance company that would enable portability and enable people to keep their insurance as they change jobs and move state to state? it would also eliminate a great deal of duplication of these instructors of the state of britain's. north carolina ceo made $17,000 last year. you could maintain the privacy of the insurance and still have that being regulated state wide. i don't understand why you of nonprofit insurance companies like blue cross blue shield and insurance companies that are for profit. maybe everybody could be profit- lçmaking and those profits would be taxed and may be redirected back into the health care system. couple of ideas that i had. guest: the debate over national

versus state controlled house, and a couple of different places. was in the creation of a public option. the health democrats who are in support of the public option say it should be national so it can achieve the savings that will be used to expand coverage and do other things in health care. in the senate, there is an idea of creating cooperatives. in the senate, there's more of an interest in doing this state- by-state. that is natural because centers reprimand -- represent their states. -- centaurs represent their states. that debate will continue to play out. senators represent their states. if that survives, that will be a central issue of how it will be

structured. host: you are the managing editor of "cq weekly" and you have five different committees managing health-care dealing with health care legislation. it seems brother on wielding -- it seems difficult to get your arms around it and to get your readers to get their heads around it. guest: it is, indeed. i would say we have four good reporters on this story. those are just people who are experts in health care. we actually have an electronic newsletter and two full-time people on that. our daily publication and website have two other reporters and a leadership team and it is best man to watch them all come in with their sources and see how you can see them

drill in six places every day and see how the elephant changes every day. they see a very complicated story. host: your task is not only to fall this story but to come on programs like this and disseminate what you know. guest: it is difficult because those of us who come from the print world, we are not trained in television and broadcast. in a national journal story i have 2500 words to talk about something so it is much more condensed. reporters tend to drill down deeply and, a program like this and people want an elevated approach. host: louis town, tenn., go

ahead. caller: have a question -- i believe i"the times" and" the post" should put pictures on their covers as to how many republicans and democrats are pro and con. i ran the company for 25 years. i ran my own company for 15 years. i'm also a veteran from the vietnam war. the constitution is the spice of life. right now, there is no constitution and health care. one plan is the same as another. i would like to see the democrats and republicans and see how much money they are accepting from these health care people and see what their votes are. i guarantee, the more money, the less they will go for a

government plan to help bring the price down. host: have you looked into the role of lobbyists in the debate? guest: there's a huge amount of money that is used on campaigns by these companies, particularly to the remembers of the committee's that have jurisdiction. it can come back to haunt people. christopher dodd is the chairman of senate banking committee and is also playing a big role in the health committee in the senate. he is the most endangered incumbents in the senate. that is partly because he is seen as too close to the industries that the overseas and the banking committee. that includes a mortgage lender that gave them preferential treatment. he said he did not know about it. it still beats a to a perception that many people have that

members of congress are in the pockets of big corporations. host: what about labor money and progress of cause money or interest group money in terms of lobbying for health care? guest: my favorite statistic was generated by our colleagues at "bloomberg news" and how lobbyists haveñi registered and they found more than 3000 lobbyists registered on health care, which means six lobbyists for every member of congress. just on health care. caller: good morning. massachusetts was mentioned earlier. i would like to give more details about the plan. there are not enough facts and figures out there. in massachusetts, for self-

employed people, this means that if you earn over $43,700 per year, you don't qualify for any subsidy. for working-class couple, who are 50 years old, that will mean that you are forced by the state to hand over close to $7,000 per year to the insurance industry for a policy that is virtually pull holes -- full old holes. on the other hand, if you want to get a real subsidy with no joint deductible, something comparable to what everyone enjoys in canada and other industrialized nations, you have to pay $20,000 per year for that policy. it is incredible. host: your colleague from massachusetts. your governor this week will

make efforts to change the system of getting a new center in the wake of the death of senator ted kennedy. was your feeling on that? caller: it depends on whether they will make a statement are not saying that whoever will be replacing senator kennedy will be 100% on board for a powerful public auction. this is bankrupting the individuals. these figures are available straight from the health connector website. you see what you have to fork over. it is incredible. guest: the massachusetts plan is one that members of congress are looking at for lessons in setting up a national plan. a key problem that the massachusetts program is facing is that, despite the

limitations, the cost of that system is growing rapidly and the state is struggling to keep up with the rising costs. as congress is tackling the problem, lawmakers have to be careful not to have the same the happen where they put up all the benefits up front and all the costs later on and the cost of the benefits greatly exceed the way they plan to pay for it. host: are there any states where this is really working, a state- run health plan? guest: some people point to massachusetts and say it is great. other people talk about cooperative insurance everson oregon and elsewhere the northwest. massachusetts is the woman comes up the most current. caller: on the stimulus bill,

there was a provision to create electronic data selection. along with that as comparative a affective research. it is difficult to have to be a slave to two masters. there are 416 people for every doctor in united states. if they had 47 million more people, that will increase the 15.7 people level in be added to the insurer. it takes all doctors to creep a general practitioner and 16 to create a pediatrician. if we start creating doctors today, they will be juniors in college. where will we get those doctors from and are there any educational initiatives to produce these doctors or or create a big pool doctors. otherwise, i see rationing.

guest: there is a doctor shortage. the caller this last minute because it goes back to what we were talking about about the incredible breadth and complexity of the story. this is not might be full-time. -- this is not my beat full time. there is a doctor shortage coming and will probably need to be some incentive to go into medicine but steer them towards different feel so they don't all become dermatologists or something. host: she mentioned money in the stimulus bill. there have been some talk prior to the august or recess of a second stimulus. is that talks still out there? guest: that seems to have been set aside for now. it seems like the current view is that the stimulus is showing signs of working. host: next caller, on the

independent line. caller: free enterprise system, the senator here is saying it should keep working for itself and we should determine the price of health care. in 1994, when health care was shot down, the price of health care had gone way beyond what inflation had. why do they keep saying free enterprise is the bestm+m but in 15 years the cost of health care has gone out of control? guest: that is a good question. it clearly has worked for mr. pence.

he was elected to the house when the district was previously held by a democrat. one of the reasons he took over was because of disobeying -- of the state in that part of indiana for the democratic approach to clinton health care. it works for him politically. mr. pence has been a free market republican for a long time. host: we have about 10 more minutes. there was an article about the energy bill. where do things stand on energy legislation? guest: the house passed a bill in june. it's set up a cap and trade system for energy in this country. in the senate, the environment and public works betty is working on it alongside several

other committees. barbara boxer has said she would like to get a bill out this fall. the action will be in the senate. it is a tough bill and is unlikely to get through the senate this year because health care is taking up so much time. host: do you think the debate over health care will give us a clue on to -- as to how this energy debate goes? is it looking with an eye toward 2010 tax guest: shore. pdit is only about 13 months a. the simple dynamic is that if the republicans feel as though they have stopped president barack obama on health care,

they will dig in their heels even more emphatically on other issues such as climate change and the democrats will get more anxious. the president's agenda could be stalled out, as a result. the republicans took over control of the house in 1994 after bill clinton introduced health care reform. host: could passage of health care over republicans empower the legislators when they go back in 2010? guest: it could. at this juncture, and the dynamic can change, if the president gets health care, it will be with only a handful of republican votes.

the republican leadership and mainstream will still try to stall him at every turn. host: next is a democratic caller. caller: one comment i appreciate is the coverage you had of medicare. i left my employer about three years ago. i had to take out private health insurance. it was very expensive. i started out at $420 and now i'm at $634 per month. that is a private insurance. it is and hmo. i had cobra for a year and a half. when i had to go out on my own policy, i have no pre-existing conditions. i am 55.

those who say that insurance companies will keep costs down, i don't think that will happen. i really think that public opinion can be swayed back to health care reform. i think what has happened in this town hall meetings is the republicans and democrats are good at doing best. there is a lot of misinformation out there. i think you guys in the media have done a good job of trying to get around some of these mths. i work in a blue-collar situation. there is a lot of dislike for obama. if you look at some of the people at the town hall meetings, they don't like the gentleman. i know that some of them know what they're talking about. some of them do. my final observation is, do you

thank that -- do you think that this debate can be turned around for obama? through persuasion can be turned around public? i think the republicans are misinformed. guest: this is the cover of "the national journal per-qu." president barack obama is trying to recapture the debate and convince people that health care is the right way to go. he needs to tell people what is it in for them. when you talk to people, they say health care needs to be changed but the court has a specific situation.

the president needs to get into what is in it for them. many seniors are concerned that when they hear the word "cost control," that means cutting benefits. caller: good morning. in this country, we spend more money on education than any other developed nation and the world and costs keep decreasing. it is claimed we don't have enough on education. government controls a lot of education. now they are saying we spent too much money on health care and there was take over the other 50% to control costs. unions create deficit in our education. the dimmest the quality of education and determine who can

go into the private sector. the point is that if you think it is an educational problem that deserves more money, but yet our precious health care which is important, we should cut? the two seem opposite of each other. we may end up with rationing. guest: to think the caller represents a minority view that most americans i believe bank -- i believe think there's a lot of unnecessary spending. not enough is being spent to educate their children. host: one more call. caller: is the public option for

people who have been turned down from and public insurance? how can the insurance companies cry about that when i have turned these people down. i am in the federal employees health benefits program. i did not know until i read the article in the newspaper about how much the person pays and how much the government pays for my insurance. as an individual person, i pay $100 and the government' must pay $200. my individual policy costs the government $300. it is blue cross/blue shield. nobody turns it down. it is a wonderful policy.

the individual federal employees subsidize families. i would mention of families might be ok with that. host: she talks of the federal employees. that was an issue in one of the other town hall meetings of what members of congress get. it is brought "a lot. what sort of policy do they get? guest: they are entitled to what all federal employes are. i am married to a formal federal employe. the caller is correct, is a darn good insurance policy. it is considered a high in standard. politically, many members of congress, this is something they use. they feel no person should have a lesser insurance than when congress has spread host: we have talked mainly about health care as congress comes back.

what are you looking at which may be an interesting story. guest: we're looking at climate change and the budget process. on labor day, which should not go without mentioning the labor agenda bill which is off for now. i would go back to how hard the democratic left will push the president. that will be fascinating. guest: the economy remains the number 1 concern. congress will be watching that closely as to how the stimulus money gets spent. the money is supposed to start kicking in seriously in october, about $500 billion is said to spend out over the next year. the other issue is the guantanamo bay prison closure. the presence of the deadline would be january. that will be a heated debate. host: will congress have something to say about that?

guest: they said they do not want see any money spent on that until obama comes up with a plan. when that plan is produced, congress will have to decide whether to accept it or deny it. host: by both for being with us. tomorrow, on"washington journal"we will look at how the white house and congress are preparing to for the health-care debate as the return from the august recess. more about health care with the iowa senator chuck grassley perry will get a republican senators perspective on the bill and how members of the finance committee are negotiating. after that, maryland congressman chris van hollen talks about how democrats are moving forward. .

robert woodson is this is his switch to conservatism. he spoke at a conference hosted by the steamboat institute. this is over 40 minutes. we did have many things in common. there is a backer that i commend it to you. -- there is a prayer.

in other words, if you keep doing what you do, you keep getting what you have. i am pleased that the steamboat institute and its freedom conference represents a breath of fresh air on policy action front. we really do need a new voice that is willing to engage in self examination. the highest form of into a is the ability to be self examine -- the highest form of intuity. i europe as a liberal left civil-rights activist. i am proud of the accomplishments of the civil rights movement. -- i grew up as a liberal left.

it is important to move on. i want to do some analysis of what i believe what we did right and what was done wrong and where we can move into the future. someone asked me with the difference was between a conservative -- neo-conservative illiberal. i had to figure that out. -- and a liberal. there was a man drowning 20 feet from shore. there is a liberal who came along in a notice to you was 20 feet from the shore. he threw all 40 yards of wrote to him but did not anchor it to the shore. -- 40 yards of rope. a neo-conservative sees the man

drowning, goes home, and writes a column about it. [laughter] i pretty much -- that pretty much puts it in balance for me. my ideology, i concluded that i am a cardiac christian, a radical pragmatist i do things because the work for the least of god's children. the character of a nation, the character of policies has to be, "how does it affect the least of god's children?" if you have done it to the least of these cumming have done it unto me. that is what causes me to get up in the morning. am i doing enough? am i doing god's work for the least of god's children? that is a barometer i live my

life to. i believe that this is one of the most compassionate nations on the face of the earth. prior to the 1930's the responsibility for caring for those who were locked down and in need was largely assumed by and formal institutions within those communities. because of the failure of the stock market and the economy collapsed, those institutions became overwhelmed. our government was afraid that communism would step in at the time. government intervened on behalf of poor people. the intervention was supposed to be an ambulance service and some of them dwarfed injury transportation system. into a transportation system. this was from government to individuals.

the informal institutions remain in tact. those demoralizing influence within the communities, in particular the black community. we look at the black community today but and look at the 7% out of wedlock birth, the high crime rate, high incarceration rate. we assume as political opponents would assume that is because of racism and economic despair and decline. that is just not true. during the 1930's the black community that suffered from discrimination and isolation and economic decline had a higher marriage rate than the white community did. the largest sustained reduction occurred between 1940-1962. up until 1962, 85% of all black

households had a man and a woman raising their children. if racial discrimination is a lack of poverty and -- were a culprit, why did we see the discrimination? in 1954, 90,000 blacks from prison. today it is 900,000. obviously, we cannot make a case that those of social conditions were the factors that contributed. something happened in the 1960's and the war on poverty. government intervention changed from services directed to people, money was translated into services for the poor, and a dramatic increase in the amount of increase going to professional service industries so for every malady but that

poor people suffered, there was a school of social work discovered. if you were poor and pregnant, there was a program. if you were poor and the languid, there was a program. if you were poor and handicapped, there was a program. with every program, there was a raucous agreed with bureaucracies there were professional and survive -- for national service is provided. we have spent now in the last 40 years about $17 a trillion on programs to aid the poor. 75%-80% does not go to the por oor -- poor, but to programs that are refundable. the poor represents a commodity for the professional service industry with no accountability or payments for solving

problems but by how many surf. -- how many you serve. as a civil rights activist, it became clear to me that the poverty programs were representatives of a virus of a false hope. it was destroying them with the helping hand. nothing that the means you can possibly promote your interests. all of or had to do was surrender their dignity -- all the poor had to do was surrender. that is why we have a situation today where in the black community, the number of young blacks being destroyed for homicide is comparable to a 9/11 attack every four months.

a young person getting off of a greyhound bus in most of your urban centers has a higher mortality rate than getting off at 8 landing barge in world war ii in italy. that is how toxic this environment has become. it is important that we have to move in another direction. it is because of this reality that i said i have to leave the civil rights movement and i looked for an alternative group of people. the conservative movement that i met with it the american enterprise institute and michael novak. i was invited because i was disenchanted and i wanted to associate with a group of people that had more strategic interest in the maintenance of poor people.

they do not make their living off of serving poor people. what they're looking for are the markings. what i did was change. i changed to the american enterprise. i was surprised because in the liberal movement, there was no debate on anything. at american enterprise, they always promoted the competition of ideas because it is the hallmark of a free society. every month, they invited ralph nader, the kennedy's. they had to be matched in terms of competence to debate the issues. as a result, the conservative movement was served, to change,

and to deregulate. what i did then was recognize that i wanted, because i was reaching out to the low-income people of all races, i found some friends in the conservative movement. they understood -- he came to my office one day with saying pad and no staff. he sat down for four hours and sat down with us and listened. he listened that day. jack said, how can i take the principles and i believe in and of high them in the community that you serve? he came and listened to grass- roots leaders and they said, these residents leaders, they said we are willing to drive drug dealers out of our communities, hold ourselves

accountable, all we want is an opportunity to control our own destinies. we want to clean up our communities. we want to control contracts. we want to own these properties. we want to produce a small businesses. every time we tried to paint our own apartments, we are told that is a union job. every time we want to operate and clean the floors, they say that is a union job. what jack did was bring the new freshmen republicans, dick army, they had hearings in alain housing where they listened to low-income people talk about success. jack fashioned seven amendments to the housing act and said, bob, i can get you 100 republicans but if there's just republicans it is dead on arrival. get me one democrat.

he went and recruited a liberal democrat in washington to join with jack cosponsoring seven amendments to the housing act that gave liberty to low-income leaders. as a consequence it passed with 430 votes on the floor. bill armstrong and dixon came together in the senate and passed it. ronald reagan signed these amendments, free-market amendments come into law. that is what conservatives can do. that is what you can do. [applause] steve goldsmith, indianapolis, indiana. we worked for six years with him. he is a conservative prosecutor in a predominantly liberal town.

we went into the low-income neighborhoods. he privatized public service. he allowed residents in those communities to operate their parks and employ local teenagers who needed to work. there was a sense of ownership by those local teenagers and their for the vandalism and decreased. 50 of those small business owners got together into a chamber of commerce for the low- income communities. the contract didn't with the cities and downtown malls. there was a result that 35 groups from all over the world came to see the indianapolis merkel in the area that had the highest crime, the most of this invested community -- the most disinvested community, and can the shining star of the west all because a conservative policy maker understood free markets.

it is the same with alabama. i got a call. 15 leaders kamins my office saying we have 15 people who are going to be evicted because they do not have a working septic system treated there going to go to jail. they did not come to me because i was conservative and i did not respond to them. there were people in need and thought i had an answer. i recruited a group of business leaders and we went down there. hsbc put up $1 million. the founder of century 21 came with his experts. we put in two industrial parks. the county's first recreation centers and yet the civil-rights people were marching from selma to montgomery.

i told them they needed to stop marching because all they are doing is celebrating crucifixion. even jesus did not hang out at the cross. [applause] there responded the way you did. the real story is a resurrection, building two industrial centers is resurrection. building a recreation center is resurrection. taking people out of houses where there are no plumbing is resurrection. you need to practice resolute ridge a resurrection. here is a paradigm of what i believe you need to do. it is important for you understand, and i just want to read a brief passage from joyce. 17 years ago he said when he was

talking about the future of the conservative movement, he said it applies that all we really need to do as conservatives is give an american people the time to sober up and returned to their senses. the thinking goes that the levers of power will return to are skillful hands by the grateful electorate. this thinking is absolutely fatal. it is important to understand that cultures far more than reason, analysis, and philosophy, it is also ms., vision, a picture, poetry, prose, fiction, nonfiction, journal articles. it moves the imagination as much as the intellect. it speaks to the heart as much as the mind. this is why we can reach our children. they do not care about the analysis of an issue.

they just feel as of social justice is important. we need to demonstrate to them that are principals produce better people and improve communities. [applause] it is the evidence. when jobs -- when john the baptist's service came to jesus, he did not pull out a power point. [laughter] jesus healed in their presence. he said to them that the blind can see, the lame can walk, and the sick are healed. the back and tell your master what you saw. --go back and tell your master. if we want to attract people to the principles that we stand for, we have to be witnesses to them that these principles produce better people and improve community is.

-- improve communities. we need a strategy to reach out to people and encourages them to come to us because we offer not a better argument, but because i believe that results always trumps and argument. evidence always trumps and argument. [applause] -- an argument. the paradigm that i use in my book, "the triumpshs of joseph," i think that is a beautiful program -- paradigm to describe the conservative movement in with the steamboat institute should be about. in the book of genesis, joseph was one of 13 children.

he had the ability to interpret the future, but he was very arrogant. he was sold into slavery, languished for many years, falsely imprisoned, but he was faithful to his god. he never defined himself as a victim. he went to prison and the pharaoh had dreams that he could not answer. now, a 21-year-old huber boy had the ability to interpret dreams. -- hebrew boys. the last time i said i could interpret dreams, i got in trouble. [laughter] he said, no, god. i am merely the vessel. god intervenes the dream's but i am his instrument. he had become broken and humbled prayed god cannot use the big shots. none of the survivors are big shots.

joseph came to him and said there would be seven years of plenty followed by seven years of famine. save up 20%. that is the first flat tax. it is in the bible. right? it is in the bible. 20%. the bible says, even prospered for 500 years until their rose affair of that new not joseph. -- there rose a pharoah that knew not joseph. these are some of the worst schools because we have recruited young adults who got hasn't lifted up from drug addiction and gang activity and transformed them. we have put them back into that community so that they are a positive virus. now they are transforming and we are being held by the bradley foundation -- helped by the

bradley foundation. joseph and the faroe came together now because it was a face debate -- faith based program. but because it had reached across lines to select and empower and an educated hebrew shepherd. -- an uneducated hebrew sh epherd. that is the basis of their relationship. he was a social entrepreneur. what drives this economy are entrepreneurs. there are less than 3% of the population, but they account for 80% of new jobs. our free market economy, entrepreneurs tend to be "c" students 9 "a" students. "a" students go back to school to teach.

"c" students come back to school to endow. right? if you're not very smart, like me, you do not have to know all the answers in order to act. smart people have to have all the answers before they act. by the time they act, the opportunity is gone. the people that i served, we have about 2,000 liters in 39 states, they're black, brown, and white. in those communities, there are the social entrepreneurs. we serve them as venture capitalists. two things that venture-capital lists bring to the table are capital and managerial expertise. they tend to be very poor bookkeepers. they have to be honest and accountable. but a venture capitalist does is help them grow along to

continue. steamboat needs to have a rounded to be the one think tank that has a grand strategy. -- ground strategy. the need to seek out the josephso and inform you as to hw you can change this world that we live in. it is with this that i and -- end. i am frankly excited about the future. in every crisis, there is an opportunity. [applause] any entrepreneur wants to know what the deal is. smart people want to know what the 401k plan is. the entrepreneur rogwinston a wh

the deal is. we need to join in with those social entrepreneurs to see if we can come together and reshape this nation. then we will reach our children to carry our children. i know a lot of secular, successful people who are morally spence. -- spent. the country is littered with people who -- mary tyler moore, all of these people lost children to suicide. whenever you do, and has to have a moral and spiritual dimension to it. that is what our children are

excited about. they do not believe the conservatives know how have fun. god bless you. [applause] thank you. >> bob has agreed to take a few questions. please do not deal them out. you choose them and i will bring them a microphone. we didn't please do not yell them out. >> she looks like she would agree with me. >> i am a god-fearing christian. my question to you is the following -- i say this to people. i am from wisconsin. i have lived all over including

the dreaded californian. my question is the following. it appears that america has lost, or least the american government, has lost its first two loves -- the love of god and thinking they are above god and losing his covering hand and secondly they have a forgotten the people, how to be a civil servants. i like to hear comments on that. >> you are right. we all must act like we have to apologize for saying we are god- fearing people. i believe in our founding principles. god is all over the place. why are we afraid to say it? we can do that without preaching to people. i think -- so, this is what we do. anyone the goes into a gay neighborhood, the way my people do, -- that anyone who goes into

a gang neighborhood, they are either crazy or god centered. i go into those communities. those kids have my cell phone number. people i have served have made a lifetime commitment to them. the reason they can be transformed from a drug that rigid drug addicts and prostitutes is only through god's grace. you have to open yourself to you -- to allow god to use you. you have to say it in such a way that you are not talking down to people. you're not morally judging them. i tell people, the fact that i am a cardiac surgeon is my hang of. -- hang up. but when i speak this way towards urban children, i tell you right now. the gangs our recruiting.

the aryan nation are recruiting. when black and hispanics go across to the bars, they are recruiting them. the only in it -- the only antidote is to offer an alternative to these young people. what we're doing at the center is recruiting among the same population and recruiting them to bring them to god. we are bringing them to responsibility. in terms of employment, we give them responsibility and paying them to be mentors to kids in that environment. when someone gets bitten by a snake, what is the anti benham? the venom comes from the stake itself. -- what is being anti-venom.

is the same phenomenon. the most healthy and constructive form to help the human body is to strengthen its immune system. these and joseph -- these joseph's you restore. this is what is going to save our nation. not an employment program, but something that appeals to the spirit of people. yes, sir? >> thank you for appearing here today and i applaud your efforts, but please tell me why in the black community, it appears that to most of those that the only spokespersons are the rev. jackson and reverend sharpton.

whenever there is an event pertaining to the black community, the media runs right to them to interview them. why hasn't the black community developed more articulate spokespeople, like yourself, to be heard on national media instead of these two? , first of all -- if >> first of all, they validate these clowns. [applause] when republicans took over in 1994, some of us who worked closely with them, they turned their backs on us instead and went to the same people and invited them in. walter williams said one of the

curse of the republicans when they get into office is there too willing to sacrifice their old friends to appease old enemies. ronald reagan was the only person when he got an office who did not change friends. he invited us. i put 25 black leaders together to meet with him and his cabinet. we were on the front page of the -- from page of "the new york times." reagan was the only one who refused to meet with them. when president bush got elected, i asked if the cabinet office would come and speak at our banquet. of a sudden, their work ethics issues. when harry belafonte asked, they were right there.

what message, in other words, the black community said if condi rice these candidates republicans are on the forums, but these -- it validates them. then you have corporations, acord, urban pirates -- [applause] they're paying ransom. the community says that is where i bank, citibank, giving $2 million to jackson and acorn, must be ok. otherwise, why would they find them? you have your responsibility to change of that -- change all of

that by advising them against validating pirates. >> next question. >> thank you for your remarks. the issue of race has been brought into a new light recently. i wonder if you can share with us your observations on how this has been manipulated and also your prescription or recommendations as to how to stand and face this challenge. >> i think it was newt gingrich. first of all, people would rather be called anything but racist.

some of us really speak out against -- speak out when it is being misused. we are not where we were in the 1960's. there are some discriminations that still exist. as new gingrich said, the conservative movement will never be popular as long as it is perceived to be against the interests of poor people and minorities. what i think should happen, when there is an example like in pennsylvania were these little black cambers were expelled from the swimming pool -- black ca mpers, was racial discrimination. conservatives should have been the first to speak out against it, but they were silent. there were silent. -- they were silent.

there are too willing to speak out when there is a disgruntled white firemen, but not when there is an actual example of racial discrimination. you need to do both. [applause] you do not do that. another example. in pennsylvania, two municipal judges closed the public jail and contractors with a private prison and took $2.6 million in bribes. they incarcerated 2000 kids who should have never been in prison. there are facing about 20 years in prison talking about what is the conservative response to poor people. i did not see any member from the federalist society coming together as a group and saying they're going to meet with the

parents of these children and tried to get them clear. bowling is the only one with the national institute of justice. parents have to look to the aclu, the poverty law center, all of the liberal groups. we really needed to develop a cadre of negro scholars who are prepared to intervene on behalf of low-income people and have a presence when these things occur. then and only then can people take the conservative movement seriously when it comes to that. jack kemp, when he was hud secretary, do not go downtown to kiwanis, to public housing. the mayor has never been there.

[laughter] when jack would come into public housing, the plan was met by residents. it they would have a big flap up by, "welcome mr. secretary." he would take 10 of them, downtown and introduce them to their neighbors. this is what he did in ever city. -- every city. whenever he appears on capitol hill, the first five rows are filled with black faces because we bus people in and take up all the seats. that is the kind of following jack kemp had. protesters in boston, acorn got off to pick him. there were 20 rough looking guys and tell them to get back on their bosses.

[applause] let me just end this by saying, on the issue of race and going back to the bible. in the book of matthew when jesus was in the room with some people and his disciples said, "master, your mother, sister, and rather are at the door." he said, "who is my mother, my sister, my brother those who do the work of my father." he said, "behold, my sister, my mother, and my brother." when jesus was saying was something that i said i read it you may be my color, but more importantly, are you my kind? [applause]

that is the basis of our relationship. i want to know, do you share my heart? if you do, i do not care if you are rich, poor, white, black. if you share the heart that god has given us to serve, we can work together. that is what is going to move us beyond where we are. thank you. [applause] >> bob woodson. >> thank you so much. what a wonderful way to start [applause] thank you. -- >> tomorrow on "washingont journal" and look at how the white house and congress are

preparing for the health care debate as they return from their august recess. then, more about health care with i was senator -- iowa senators. after that, in maryland congressman talks about how democrats are moving ahead with health care and other issues such as global climate change. finally, someone from the cato is to discuss his concerns over obama as a speech to public- school children. that is live tuesday at 7:00 a.m. eastern here on c-span. the house returns tuesday from its august break. members will begin the week with a number of bills dealing with federal lands and historical sites. later in the week, a measure continuing federal programs to protect and restore the chesapeake bay. that is live at 2:00 p.m. eastern here on c-span. the senate also returns on tuesday.

senators began with the general speeches. later in the day, we turn to legislation to promote tourism in other countries. that is live at 2:00 p.m. on c- span two. as the debate over health care continues, c-span's care and hub is a key resource. follow the latest ads and links. it was the latest events including town hall meetings and share your thoughts on the issue with your own videos. there is more. this is at c- span.org/healthcare. >> now there is more on health care reform. he makes the argument that the administration get rid of plan is to -- doomed to fail. this is held by the steamboat institute. this is 40 minutes.

>> let me tell you how much that this has gotten pretty nor a lawyer -- northern ireland human rights commission has a new style book that has banned the use of the words "black day." this would carry a higher wrote valuation of skin color. you can also use the term ethnic minority because it can imply something smaller and less important. there is also the issue of patriarchy. gentlemen's agreement is out. it is potentially offensive to women. it has now been replaced with an unwritten agreement. the term right hand man is gone.

it is now replaced by second in command. also, we have to get rid of the term of master bedroom, 4 obvious reason. it implies there is a master. i thought it was general -- gender neutral. political correctness is with us everywhere. no more so than in colorado. i have lots of time at the university of colorado in boulder. i suspect that you probably have more stories to tell me than i have to tell you. my mission here today is to build onto what bob woodson told you. i am speaking about the temporary things. he was speaking about enduring values. there's also a transcendent importance.

coming down to earth, i think i can give you some perspective on where we are in politics and economics. i can understand some of you are pessimistic or shellshocked by the events of the last year. it was only one year ago this week that the republican and democratic conventions were held. the democratic convention was in denver. one year ago that obama gave that's during acceptance speech. on the one year ago that john mccain picked seraph pailin. -- picked sarah pailin. who would have thought that gm would now be government motors. who would think that the government would be barn 46 cents of every $1 it spends. who would think we have a stimulus package that was not stimulus, it was a part of bell -- it was pork barrell.

and you have a right to be concerned or depressed. i am here to tell you the rest of the story. how many of you are from colorado? this will definitely resonate with you. how many view our readers or subscribers to "the wall street journal?" thank you for paying my salary. you're the victim of the four horsemen of the apocalypse. they created this giant left- wing infrastructure in colorado which ran candidates for the legislator, swapped your opponents with money -- swamped your opponents. civic virtue. the colorado model, as fred barnes and i read -- and i refer to it, it was a spectacular

success. liberals took over the legislature, won the governorship, won the senate seats the watered-down amendments. clearly, they were on the march. michael barone, the premier political analyst -- you think i know local politics? he literally knows the boundaries of every congressional district in the country. he just wrote a very interesting piece in his syndicated column, "the democratic colorado gold rush turns into a bust." as we are reminded frequently by reagan and others, campaigning is poetry and a government is prose. it is a lot harder and much more mundane. the mundane business of governing colorado has not been kind to the liberal majority.

as you know, the governor has a historic-approval rating. right now he is trailing his potential opponents. senator bennett is, at best, a dead even favored for the election. the popularity ratings are even below that which is -- that of the california legislature. then we have the democratic congressional delegation. at least one democratic congressman has announced he will not be holding a town hall meetings because people in his district do not know what they're talking about, he says. let me predict this will be a campaign commercial in the next election. about those town hall meetings. isn't it interesting -- by the way, i apologize. the reason i am wearing a suit is because i had to do it one final debate on this town hall

meetings before i had to drive up here. one of the things i have always encountered in debating these town hall meetings is how agitated liberals get when people show up to protest what they're doing and to argue with them. i'd met some of the rhetoric has been obsessive -- excess of on both sides. it is the hot -- the highest to complain about those coming to the town hall meetings. his first full-time job was a community organizer. they organize people to come to meetings and raise heck. i am astonished that they somehow have decided the community and organizers are subversives. and american as nancy -- unamerican as nancy pelosi says.

he did not believe in the common sense of the american people, i can give you some news about the comments of the people of nevada. the senate majority leader is a trailing two and nine republican challengers in the polls by double digits. [applause] he is going to raise $25 million, almost all of it from out of state. i would not counted out, but he remembers what happens is what happened to tom daschle. he remembers what happened when he became too tied to the interests of the beltway. reid is a major decision to make. it will not only determine his fate in the next election but the fate of that several other democrats. as you know, the health care bill got into some gotsledding. it is in trouble.

the latest show only 42% of the population supporting it either in whole or in part. the elderly are 20 points down. it is in trouble. the have a problem. they have to pass something they remember the lesson of 1993- 1994. hillary healthcare crashed so spectacularly that they did not pass a vote. tony blankley was there ever members of the building as i am sure he will tell you. the lesson the democrats took away is that you have to pass something. there abject failure with heavily upon them and frankly i think it cost them the support parade there's only one thing worse in washington and that is being viewed as ineffectual.

here's the problem. a bill that they can pass is probably a bill that would enrage their left-wing. i was just at the netroots ischinger convention, 3000 liberal bloggers, in pittsburgh. -- i was just that the netroots convention. some people had two words for me and they were not "happy birthday." i told them i had hung out with rahm long enough that i had heard everything. i learn from them two things. one is that what the basis of the opposition to health care is. i heard this in five different panels. it is of racial. you see think you think you are opposing health-care because you

are for small government or against taxation. these are all code words for race. they said people are upset because we have a black president. now, i think this shows you the extent to which they do not understand the rest of the country. we, as conservatives, engaged in tribal activities, are of kindred spirits, but i can assure you we are aware of what the other side says. sometimes we even agree with it. they have the commanding heights of the traditional media. we know what they're thinking and saying. all we need to do is turn on the television or pick up the local newspaper. all we have to do is talk to our friends and neighbors. they live, with some

exceptions, a more sheltered existence. their radio receivers do not pick up certain stations. how many times have you had a discussion with someone about what rush limbaugh says with people who are absolutely convinced that he is an evil monger? how many of you have had that experience? they hate him but have never listened to him. the people at the netroots conference have no understanding of where you're coming from. it must be coming from base motives. here is the problem. they do not understand the opposition which is why they sounded petulant. you know it projection is that? projecting a others what you're really thinking. here are some examples. this is abc news anchor charles gibson -- i am sorry, cbs. he was substituting in terms of katie couric.

critics of health care reform claim it's a genuine grass-roots anger, but democrats say activists are orchestrating these protests and have evidence, websites of conservative groups that list democratic town house at to urge citizens to go and be heard. that is evidence of orchestration. white house press secretary robert gibbs, "one can only hope that this does not escalate. we can discuss this without being on civilized. it is the same thing i tell my 6-year-old." they're the ones who are acting petulant late. they are lashing out in frustration -- they are the ones acting petulantly. they have realized they have lost enough moderate democrats up for election or who are worried about future elections in other years that they cannot pass what they want. public option which is another

word for nationalized health care, and the co-op, which is another word for public option or nationalized health care. it is going to have to retreat. whenever they pass, they probably cannot get 60 votes in the senate. there are not enough democrats. this year republicans are being obstructionist. i have often said that i no republicans and democrats all my life in washington and both of them want to take as much money as possible, republicans will just feel more guilty about it. republicans cannot beat accused of being obstructionist right now. they do not have any power. how can you be if you are a hopeless minority in the do not have enough votes to stop a filibuster? that is called passing the buck. their health care plan that they will ram through can only pass unless it is true the bipartisan reconciliation.

it is this 35-year-old process by which in order to get some budget changes through, you get to have a 51 votes passing and do not have a filibuster 60 vote margin required. that is only for the budget. the bush tax cuts not true that way. there were timed out and expire next year. i can assure your they will expire contrary to what mr. obama said. this reconciliation process is not meant for a reordering 1/7 of the economy. there will be civil war if they try this. frankly, i do not think they can procedurally because it will look like swiss cheese. there will be holes. you'll have to have a buy for

pay bill. you think the american people are enraged now? i think they will really, really hit the red button if they tried to pass reconciliation. reid have to make that decision. if he makes that decision, he is toast. i will make a prediction. [applause] now, where did they go from here regardless of what happens with health care? well, we have already heard from the senator in wisconsin and the chairman of the appropriations committee. we have already heard that there will be not have been no health care vote until december. they lost control of the calendar. there is something that happens between now and christmas. it is called off your elections. off-year elections are the bell

weathers to tell the party in power how they're doing and how much danger they are in. we have had these in the past. republicans won the governorships of virginia and new jersey in 1993. after that day, the liberal democratic congress and white house did not pass anything of significance. remember midnight basketball? there's also a special election in california -- these are born to be very important because, right now the republican candidates in jersey and virginia are up 27-11 points. believe me, the democratic moderates are watching those. . .

>> even though you have a majority, if you have enough nervous people, you are going to be constrained in what you do. this kind of process where liberals governed, they governed badly, overreach, slap the back by the electorate, it is a process that we have had many times before in our history. ronald reagan is many great things. he was a great commander in chief who inspired and uplifted the country, somebody that brought us the longest sustained round of economic prosperity. i will tell you a story that i

don't think you have heard before. the lessons that he taught us have direct relevance to our time today. in 1976, the republican party was in more dire straits than today. watergate was only two years in the past. the republican suffered historic losses. they had 173 seats in the house. they only had 38 senators, 12 governors. they were in even worse shape than today. it was in the spring of 1977 just a few months after ronald reagan lost the nomination, reagan met with his staff and his advisers. they were depressed. reagan came before them and said i am here to tell you where we are going to go.

i am not just saying it because i believe it. i am saying it because i know it. we are conservatives. we believe our principles properly applied will lead to a better country. liberals, no matter how sincere they may be, their policies will fail if they are tried. we tend to lose elections only when it to things happen. the people representing us claim to represent us make mistakes -- richard nixon. liberals temporarily run as moderates to get elected and convince enough people that have changed their stripes. i will guarantee you he will govern from the left because it is congressional leadership and the people that pay the bills will not have it any other way, the special interests in their party.

if he governs from the left, he will fail, because that is what liberalism does. it fails. they will get angry. despite the mistakes you have made, the retreat from principle, if you rededicate yourself to those principles and reenergize your grass roots, he will once again be able to have a conversation with the american people. 15% inflation, 10% unemployment, 21% interest rates. the soviet union on the march, the hostage crisis? it was so bad in 1980 that ronald reagan could go around the country and say, "a recession is when your neighbor loses his job." a depression is when you lose your job.

i think we are going to hear that line again next year. reagan was right. big government was beaten back in 1977 and 1978 by the american people. flash forward 16 years, 1993, 16 years later, once again, it republican president made a mistake or mistakes, george h. w. bush said no new taxes, that cost him dearly. ross perot voted against him as an independent and took away many votes. ross perot was preaching fiscal conservatism. many people bought into it. that is when people found out his tray table was not in the upright and locked position.

they elected bill clinton. the altman salesmen campaigned as a moderate. end welfare as we know it. bill clinton won. ronald reagan in the spring of 1993 net one last time with his advisers. he came back and he reminded the staff of that speech again that he had given in 1977. oh, for i am beatin but not slain, but i shall rise and fight again pirk. he said let me tell you what i said to them. bill clinton campaigned as a moderate, he must govern from the left. the congressional leadership and the special interests will not

have it any other way. people will notice and they will get mad. sure enough, it did it happen? the btu tax was proposed. scandal after scandal, the days in the military, you name it. rubbing salt in the eyes of group after group of americans. and then of course the hillary clinton medical meltdown. the 1994 election, reagan was right again. here we go again. it is 16 years later. once again, we have a democratic president who campaigned as a relative moderate. i am not going to raise your taxes if you make less than $250,000 a year.

absolutely true statement. not one thin dime, thousands of thin times. here we go again. the same thing is happening now. faster than i bet you predicted. reagan is the oldest and the wisest. he predicted this would happen again. every time that we elect a liberal president or a liberal congress at the same time. what does this leave us with? an unfinished job. you and your predecessors beat back big government in 1977 with jimmy carter. you and your predecessors beat back a big government in 1993. i say it is time to go for 343. [applause] -- it is time to go three for three. we can do a hat trick.

this will require the people in this room and your friends and relatives, require you to do things that many of you do not normally do. many of you are very busy. your family, your church, your jobs, your home, you don't want to spend a lot of time in politics. this summer and fall of 2009, you have to make an investment in america in defending america. we always hear, we always speak kindly of the greatest generation. the generation that survive the great depression, one world war two, set in motion the policies that won the cold war. the greatest generation is only the next -- the greatest generation is only the greatest generation until the next generation comes to challenge values.

the american revolutionaries were such a generation. we had to win our independence from britain. we had to unite the country. the greatest generation, the depression, world war two, the cold war. i am not here to tell you that the challenges before us are quite of that magnitude but they could be especially if we lose. here we are 75 years after the world war and the great depression with another challenge to america's freedom and independence. big government. i am here to tell you if you win this fight, as you won it in 77 and 93, if you win it again, your children and your grandchildren will one day be able to say to you i know what you did in the spring, summer, and fall of 2009. he became the next greatest generation.

he beat back big government and stopped it in its tracks. [applause] let me tell you i'm not only think you can win, i think you are winning. let's go finish the job. thank you. [applause] i am told we have the podium until 2:00 so there is time for some questions. i will be happy to take them. >> i loved it everytime i hear you speak. [laughter] >> i don't know how to take that. >> two short questions.

do you think of the democrats failed to pass a health care bill, that it means we can assume they will be unable to pass cap and trade or card check? >> i think the recession killed cap and trade. how much of that have you heard about lately? cap and trade was never about global warming. cap and trade was about political control. they failed to convince, pentode general motors became the governed motors, they failed to exercise political control over the economy, using the excuse of global warming or the environment. it was like a burglar going through a neighborhood until they find an unlocked door. i will never forget the first meeting of the former communist nations, environmental community is dealing with the ravages of

communism. the western environmentalists who never met them because of the iron curtain. i remember an environmental leaders standing up in frustration, standing up on a table and yelling at the spanish president saying, i have heard enough from you. we have nothing in common. you are not environmentalists. i know what you are. you are not environmentalists. you are watermelons. you are green on the outside and red on the inside. [laughter] [applause] we have learned through the cap and trade debate that much of what is motivating the debate is the desire for control of the economy, not for improving the environment. i think it is dead for now. once again, it will rise up again from the grave after the

economy has recovered. >> do you think hillary would like to see obama healthcare fail? >> a that is above my pay grade. [laughter] after six months of being put in an isolation booth as secretary of state, -- let me put it this way. have you noticed that joe biden has disappeared? [laughter] i think he is in a witness protection program. [laughter] i think there are some that realize how much of a disaster and joe biden is proving to be. let's say barack obama has a bad presidency. i can imagine a delegation visiting him and saying you need to spice up the ticket next time.

you need a proven political veteran to join you on the ticket next time. i would not be surprised to see that happen. a couple of more questions. >> as we all know, the media is pretty much bought and paid for, at least at the white house level. there appears to be a huge slant. >> the media can never be bought. it can only be leased or rented. >> we need to cancel that leaves. -- that lease. if you know of someone who actually has proved that the election was rigged, who do speak with? i know you wrote a book on this. >> i did but the election was not rigged. i would be happy to hear you out after the meeting.

on the media, all of you have an ax to grind about the media. ronald reagan in 1980 won two landslide elections with the entire media against him and the economic and technological constraints at the time meant we had three major networks, three national news magazines, basically one day the national paper. we had basically 40 talk radio shows around the country. how things have changed. you think things are bad now. he won elections over and over again in the 1980's with that media environment. now you have the internet to bring everything to you free at least until they go out of business. you have 1400 talk radio shows.

you have cable news network's 24 hours a day. you have c-span, and a credible choice of information. you can get your message out. i think this is a classic case. conservatives have to look at the media lgass half full instead of half empty. i will take one more. >> last question over here. >> i agree with you 100% that we have a fantastic opportunity in 2010 but the fat lady has yet to sing. you are right that we need to finish the job. the colorado model here that is being exported to other states -- i have two questions. how can we convince people that have the resources to support a counter to that, organizations like the steamboat institute,

like a bunch of other small grass-roots groups that are doing great things, alternative media groups, other organizations because we all know that campaigns cannot succeed without at least some resources going to them? >> i do many things well in life but i am not a fund raiser. it is not my role as a journalist to give you that advice. in business, you know that nothing succeeds like success. go out and win this battle on health care. when this battle on cap and trade. when this battle on card check. go out and win those fights and you will have more allies then you can imagine because when people small success, they gravitate towards it. there are many of sunshine

shoulders and summer patriots out there, there is to do -- those that do not ride at the sound of the gun. if you win those battles, he will have more support than you know what to do with. on the other side, you will demoralize the left because they have lived with -- they have been 75 years with this on completed mission of controlling health care. harry truman got into scandals and had the korean war. john f. kennedy was assassinated. jimmy carter was -- jimmy carter was jimmy carter, at the mouth said. bill clinton was easily distracted. there is always an excuse. if they did not have a president they could trust, they did not have 60 votes in the senate or a speaker willing to ram it through. they did not have a firebrand

like nancy pelosi. all of the stars have aligned for them now. if they lose now, they will have no excuses. if you win, you not only to reinvigorate the base, you will put a crimp in their plans and in their morale. you really are going to have a good 2010. thank you. >> the second part? >> i am sorry? >> thank you, john. thank you very much. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2009] >> coming up, president obama talks about jobs and health care legislation in cincinnati. then and look at how the

progressive movement can have an impact on congress and policy decisions. later, lyndon b. johnson and the politics. -- and the politics of health care. >> the house returns tuesday from its august break. members will deal with federal bills. later in the week, programs to protect and restore the chesapeake bay. that is live at 2:00 p.m. eastern here on c-span. the senate returns on tuesday. later in the day, we will turn to legislation to promote foreign tourism and other countries. -- in other countries. the supreme court has a rare special session on wednesday hearing oral argument on a campaign finance case.

it marks the first appearance on the bench for justice sonia sotomayor. tomorrow, her formal ceremony takes place in the afternoon. here is chief justice robert. >> it is unsettling. you quickly get to view the court as the court as composed of these members and it becomes hard to think of it as involving anyone else. i suspect this is how people look at their families. it is a tremendous sense of loss. justice white always used to say that when the court gets a new member, it changes everybody and everything. simple changes. we move the seat around in the courtroom. same in the conference room. more fundamentally, i think it can cause you to take a fresh look on how things are decided.

the new member is going to have a particular view about how issues should be addressed and may be a very different from what we have been falling for some time so it is an exciting part of life in the court. >> hear from other justices during supreme court week starting october 4. wednesday, the supreme court hears oral argument in citizens united verses a federal election commission. we will have the oral argument for you on the same day it takes place at 11:30 a.m. eastern. >> president obama was in cincinnati today to talk about jobs and health care

legislation in his speech to union workers. it is a little over 40 minutes. >> let's get fired up for this. [cheers and applause] i am going to bring him out in a minute. hello, brothers and sisters. i am a member of [unintelligible] [applause] i was asked to introduce the president because i am living proof that his stimulus package he connected is working. i was working for new employment and my insurance started to run out. i had to make payments but they were partially covered by the stimulus package, saving me and my family money when it counted the most. the stimulus package provided extra money for my family and i

from going further in debt. when i started back to work, the company that i work for was awarded work putting up signs and doing other road construction work on highways and state routes. these projects are being directly funded by the stimulus package. i would also like to say that i am a parent of a special needs child. without further ado, -- [cheers and applause] without further ado, it is a privilege and an honor to me to bring our president barack obama out here. let's have a big round of applause for him. [cheers and applause]

>> hello, cincinnati. thank you. [applause] thank you, ohio. thank you, labor. [applause] it is good to be back in cincinnati. [applause] it is good to be back in ohio. it is good to be back among great friends, great leaders, and that want everybody to give a big round of applause to charlie billboard for that great introduction. -- charlie dilbert for the great introduction.

give cathy a big round of applause. [applause] how are you all feeling today? are you fired up? are you ready to go? i can't think of a better place to be on labor day than an america's biggest labor day picnic. and with the workers and families of the cincinnati afl- cio. [applause] i am so proud to be on the stage with charlie because he reminds us that in these tough times, america's working men and women are ready to roll up their sleeves and go back to work. i want to salute your local afl- cio local leaders.

your executive treasury secretary, your president, the state president, and your outstanding national leaders, the man who we think for devoting his life to working americans, president john sweeney. he is right there. and the man who will pick up the baton of leadership we need to succeed because a strong labor movement is a part of a strong economy, secretary-treasurer rich trumpka. [applause] although, ohio is wonderful -- we have the lieutenant governor

in the house. secretary of state jennifer bruner, the attorney general, the cincinnati mayor, hamilton county commissioner, commission president david pepper, we are joined by members of all high as outstanding congressional delegation. [applause] and a great friend who is at the forefront of every fight for a high as working men and women senator sharon brown. [applause] i am also proud to be here with a leader who is reenergize and the department of labor, who realizes it is not the department of management but

the department of labour. a daughter of union members, a daughter of a teamster, the secretary. [applause] my director of the recovery for all those communities and workers who does outstanding work. now, cincinnati, like a lot of americans, you are having some fun today, taking the day off, spending time with the kids. some of you may be proud of your grilling skills. [laughter] every man thinks he can grill. whether he can or not. that is what michelle says. michelle says she is a better griller than me. i don't know. [laughter]

you are enjoying some good music, some good food, some famous cincinnati chili. but today, we also pause. we pause to remember and reflect and to reaffirm. we remember that the rights and benefits we enjoy today were not simply handed it to america's working men and women. they had to be won and fought for by men and women of courage and conviction from the factory floors of the industrial revolution, they stood up and they spoke out for an honest day's work. [cheers and applause]

many risked their lives, some gave their lives, some made it a cause of their lives, like senator ted kennedy who we remember today. [applause] let us never forget, much of what we take for granted, 40- hour work week, the minimum wage, health insurance, paid leave, pensions, medicare, social security, they all bear the union label. [applause] it was the american worker, men and women just like you, who returned from world war two to make our economy the envy of the world, whose labor helped build

the largest middle-class in history. even if you are not a union member, every american owes something to america's labor movement. [applause] as we remember this history, let us reflect on its meaning in our own time. like so many americans, you work hard and meet your responsibilities. you play by the rules and you pay your bills. in recent years, the american dream seems like it has been slipping away. from washington to wall street, too often, a different attitude prevails. wolf was valued over work. greed over responsibility. the right to organize was undermined rather than strengthened. that is what we saw.

it may have worked out well for those folks at the top, but it did not work out for you and it did not work out well for our country. that culture and the policies that flowed from it undermine the middle-class and help create the greatest economic crisis of our time. today on this labor day, we reaffirm our commitment to rebuild, to live up to the legacy, to combine the enduring values that have served us so well for so long, hard work, responsibility, with new ideas for a new century, to ensure that our great middle class remains the backbone of our economy, not just a vanishing ideal we celebrate at picnics every year. we want a reality for the families of ohio and the families of america.

cheers [and applause -- [cheers and applause] that is what we have been working to do ever since i have taken office. some people have already cut -- have already forgotten how bad it was seven months ago. they have a selective amnesia. let's just remind them for a second. [cheers and applause] a financial system on the verge of collapse, about 700,000 workers losing their jobs each month. the worst recession of our lifetimes threatening to become another great depression. that is what was happening seven months ago. that is why we took bold, swift

action. that is why we passed an unprecedented recovery act and we did it without the usual earmarks and pork barrel spending. ohio, it is working. [cheers and applause] times are still tough, i know that, but we have given 95% of america's working families a tax cut. 4.5 million families in ohio including here in cincinnati, a promise we made during the campaign and one that i kept as president of the united states. [applause] we cut taxes for small businesses, made new loans to more than 1000 small businesses in ohio said they could grow and

hire more workers. we extended unemployment benefits for 12 million americans including charlie and nearly 570,000 ohio citizens. [applause] across america, we have saved the jobs of tens of thousands of state and local workers, including teachers and first responders right here in ohio. don't tell -- don't take my word for it. ask people here in ohio. we are rebuilding america's infrastructure, including improvements to interstate 75 in hamilton county led by a local cincinnati contractor. [applause] we have got more than 200 other highway projects across ohio and we are making an historic

commitment to innovation. doubling our capacity to generate renewable energy, building a new smart grid to carry electricity from coast to coast, laying down high speed rail lines, providing the largest boost in basic research in our history, all of which will put people back to work. steel workers, plumbers, pipefitters, engineers, you name it. so our recovery plan is working. bricklayers, too.' [cheers and applause] the financial system has been saved from collapse. home sales are up. we are seeing signs of life in the auto industry.

business investment is starting to stabilize. for the first time in 18 months, we are seeing growth in manufacturing. when was the last time you heard that here in the united states of america? [applause] on friday, we learn that the economy lost another 260,000 jobs in august. whenever americans are losing jobs, that is simply unacceptable. for the second straight month, we lost fewer jobs than a month before, and it was the fewest jobs we had lost in a year. make no mistake, we are moving in the right direction. we are on the road to recovery, ohio. bill let anybody tell you otherwise. [applause]

-- don't let anybody tell you otherwise. yes, we will. [chating] -- [chanting] >> but, my friends, we have a long way to go. we are not going to rest. not until workers looking for jobs can find them. not until responsibility -- not until responsible mortgage owners can stay in their homes. not until we have a full economic recovery. [applause] week -- we can't do that if we go back to that old economy. overleveraged banks, inflated profits, maxed out credit cards, ceo's and bankers getting

multimillion-dollar bonuses, and economy of bubbles and bursts, your wages stagnant while corporate profits soar. even if we recover from the recession and work to cut the deficit, we have to build a new foundation for prosperity. we need a reformed financial system. we have to have regulations in place that protect consumers so we never have a crisis like this again. i don't 1 to have to bail out any more banks. we have to make sure we have regulations in place to prevent them. [applause] an america where energy perform creates green jobs that can never be outsourced.

and america at that commits to education because the country's that out-educate today will get the best jobs for tomorrow. we have to do a better job of educating our sons and our daughters. yes, i am going to have something to say tomorrow to our children, telling them to stay in school and to work hard. because that is the right message to send. [cheers and applause] we need an america that once again it invests in the middle class, which is why i have created a task force for middle- class working families led by my

outstanding vice-president joe biden to make sure our policies always benefit you, the american worker. [applause] today, we are taking another step. i am naming ron bloom to lead our efforts to revitalize the sector that helped build the middle class, american manufacturing. ron has worked with steel workers, service employees, and management to create jobs. he helped guide our auto task force. he is going to help us craft the policies that are going to create the next generation of great manufacturing jobs and to ensure american competitiveness in the 21st century. [applause]

by the way, just in case you were wondering, we are also going to build an america where health reform delivers more stability and security to every american. [cheers and applause] we are going to reform the system for those who have insurance and those who don't. i will have a lot more to say about this on wednesday night. i might have to save my voice a little bit. i get too excited. -- i do not want to give anything away i want you all to tune in. let me say a few things about this health care issue. we have been fighting for affordable health care for every

american for nearly a century. since teddy roosevelt. think about that. a long time. [laughter] the congress and the country have now been vigorously debating the issue for many months. the debate has been good and that is important because we have to get this right. every day, at some point, -- every debate, at some point, it comes to an end. at some point, it is time to decide. at some point, it is time to act. ohio, it is time to act and get this thing done. [cheers and applause] we have never been this close. we have never had such broad

agreement on what needs to be done. because we are so close to real reform, suddenly the special interests are doing what they also do, which is to try to scare the heck out of people. i have got a question for all of these folks who say we are going to pull the plug on granma and how this is about illegal immigrants. you have heard all of the allies. i have a question for those folks. what are you going to do? what is your answer? what is your solution? [applause] you know what? they don't have one. [applause] their answer is to do nothing. their answer is to do nothing,

and we know what that future looks like. insurance companies are raking in profits while discriminating against people because of pre- existing conditions, the ninth or dropping coverage whenever you get sick. you spend all of your time trying to protect for benefits that you have already fought for. premiums skyrocketing three times faster than your wages. more families pushed into bankruptcy. more businesses cutting more jobs. more americans losing health insurance, 14,000 every day. more americans dying everyday because they do not have health insurance. that is not the future i see for america. i see stability and security that we bring to folks who do not have insurance today. if you change your job or you

get sick, you have coverage. where there is a cap on your out-of-pocket expenses so you do not have to worry about a serious and honest breaking you or your family even if you do not have health insurance. [applause] where you never again have to worry that you or someone you love will be neiedenied coverage because of a pre-existing conditions. businesses will be able to purchase health coverage at a price with a can afford. they will be able to shop and compare in a marketplace with competition and choice will continue to hold down costs and help deliver them a better deal. i continue to believe that a public option will help improve quality and help bring down costs. [applause]

i see reform where we protect our senior citizens by closing the gaps in their prescription drug coverage under medicare that cost older americans thousands of dollars every year out of their pockets. it will put medicare on a sounder financial footing, cutting waste and fraud. i want a health care that works as well for the american people as it does for the insurance industry. [cheers and applause] they should be free to make a profit but they also have to be fair and accountable. that is what we are talking

about. security and stability for folks who have health insurance, coverage for those that do not. bringing costs under control. that is the reform that is needed, the reform that we are fighting for. that is why it is time to do what is right, put up -- put aside partisanship, stop saying things that are not true, helped pass health insurance reform now, this year. [cheers and applause] few have fought larger -- longer and harder, our brothers and sisters of organized labor. just as we know we have to adapt to all the changes of the global economy, we also know this. in good times and in bed, labor is not the problem. labor is part of the solution. [applause]

that is why the secretary made it her priority at the labor department to protect workers. [applause] that is why some of the first executive orders overturn the previous administration's attempts to stifle organized labor. that is why i support leveling the playing field for those that want a union can form a union. there is nothing wrong with that. when labor is strong, america is strong. when we all stand together, we all rise together. [applause] that is why the first piece of legislation i signed into law was the lilly ledbetter fair pay act, guaranteeing equal pay for equal work. [applause]

lilly worked at a factory in alabama. she did her job and she did it well. after nearly two decades, she discovered she was paid less than her male colleagues for doing the very same work. over the years, she lost hundreds of thousands of dollars in wages, pensions, and social security benefits. this alabama grandmother made a decision. she said a principal was at stake. she spoke up for what was right all the way to the supreme court, then congress, and then at the white house when i signed a law that bore her name. [applause] ohio, that is the lesson this

day, that some things are worth fighting for. equal pay, fair wages, dignity and the workplace, justice on the job, and the economy that works for everybody, because in america, if there are no second- class citizens. -- because in america, there are no second-class citizens. we are all created equal. we all deserve a chance to pursue our happiness. that is the calling to which we are summoned this labor day. that is the cause of my presidency, and that is the commitment we must the fell to preserve the american dream for all of america's working families. i am going to need you to do it. at the beginning of this speech,

i talked about whether you were fired up. i know that over the last couple of months, the economy has been bad, people losing their jobs, their health care, their homes in some cases. the usual bickering in washington. it does not seem like that ever stops. pundits on the tv are saying how this is not working and how that is not working. you start getting into a funk. whenever i see folks in that- place, i always think back to a story that i told during the campaign. i just thought i would say it again.

it is about where the phrase "fired up" comes from. nobody gave us a chance, none of you all could pronounced my name at the beginning of the presidency -- at the beginning of the campaign. i went down to south carolina. where was i? i was in greenbelville. the legislators invited me to come down to speak. i sat next to a state rep. i had nobody supporting me back then. will you support my campaign? this state representative said, you know, i will give you my endorsement if you come to mind

home town of green hill, south carolina. i said right away, ok, let's shake on it. come to find out, greenwood is about an hour and a half from every place else. about a month later, i fly in, i have been campaigning for two weeks straight, i am exhausted and tired. i am about to go to bed in my hotel room. i get a tap on my shoulder. you have to be in the car tomorrow at 630 -- at 6:30 in the morning. i said, why? because we have to go to the green would like you promised. the next day, i wake up and i

feel worse than when i went to bed. i staggered over to the window, open up the blind, it is pouring rain outside. i go out and get my newspaper. there is a bad story about me in ""the new york times." i pack up my stuff and go downstairs. my umbrella outbreaks and i get soaked. by that time i am in the car, i am sleepy, wet, and i am mad. we start driving and we just keep on driving. it goes on forever. an hour and a half we are driving. finally we get to greenwood, although you do not know you are in greenwood right away. there are a lot of fields. we pull up next to a little field house at a park. i get back out and get a little

more wet and i go inside. after this drive, there are only 20 people inside. [laughter] most of them are wet and look like they did not want to be there either. i am a professional so i go and shake everybody's hands. i have a tight smile on my face. nice to meet you. suddenly i hear this voice behind me, shouting out, "fired up." i am surprised, scared almost. everybody else ax normal and they say, fired up, ready to go. i do not know what is going on. i look behind me. there is a little woman.

she cannot be more than 5 feet 2 inches. watch out. [laughter] little lady, about 50 or 60 years old. she is dressed like she just came from church. she is smiling at me. she says, "fired up." it turns out this woman is a city council member from greenwood who is famous for her chant. every evening and she goes to, she likes chanting. she does a little dance while she is doing it. [laughter] so, for the next five minutes, she just keeps on saying this little chant. "fired