follow that proposal. we look to the future taking this balanced approach and the secretary's pointed out when you take these measures that were taken in the chairman's budget last time, what you do is shift the risk of rising health-care costs to seniors on medicare. rather than take that approach, we need to spend a lot more time finding a way to reduce the growing health care costs throughout the american health- care system. the reality is the affordable care act put in place a lot of mechanisms that we believe will begin to do that. and will prove successful but there is more work to be done there. what we need to do there is come together in a way that deals with the fundamental problem. not just to shift the problem from medicare to senior citizens and that is at the heart of what this is about.

if you do not ask the folks who of done well, you will take more out of middle income and seniors. i want to end with asking with some of the governments that took strict austerity approaches, what is there -- the evidence so far? >> it depends on the circumstances. we're not in the position of the u.k.. we enjoy still and you can see it in the prices of u.s. financial assets, enormous confidence -- this area will find a way to put in extensions of reform. there is confidence out there that congress will come together and do the right thing and that is why we're able to borrow at

relatively lower rates. if we were to able to are at 2%, if we were to now decide we will turn this budget deficit and try to reduce that to balance in two years or three years you'd kill this economy. you would dramatically set back long-term clause -- close a deficit reduction because you will swell the deficit site embracing -- by inducing another crisis. >> thank you. let me get this straight. what your testimony has been so far. you agree that the tax system we have is far too complex and is now working. but you're not going to give us a new tax reform system now that would be simpler.

it would rather give us a more complex tax system until later on in the term. >> i know you do not like the proposals. >> is it more complex? >> absolutely. if you try to get more revenues in a rational way you will do things that are complicated. no doubt about it. >> that is my point. your giving us the system is too complex today and you're giving us a proposal that is more complex. >> it is the nature of the beast in this context. >> i would think of all people especially you that you would understand that our system is too complex for the average individual to understand how to fill out their tax return that you would come of -- come to us with a simpler tax system and not wait until the end of your term. >> i think that we are -- the fundamental difference. even in tax reform that raises the revenues that simpson-

bowles suggests we need, the effective tax rate would go up. >> with all due respect, that is not the question. the question is, when are you going to give us a simple tax return? a simple tax reform. your answer is not now. >> not in this budget. >> when are you going to give us -- >> when you are raising revenue through tax reform. that is what we spent so much time with their leadership discussing in the summer. >> that is leadership. wait for other people to do something, then we will react? >> you just spent six months threatening to default on obligations you give us. he bequeathed to us. if you call the leadership that is fine with me. it was in the spirit that we

could work this out in a bipartisan way. we sat down with your leadership for months to try to work out whether we could find consensus. >> during all those months when never got from you the same thing that you said telling us now you're never going to give to us. >> to the leadership show the proposals? >> we never got legislation from you. >> nor did we get it from you. >> on entitlement reform. that is not the tax reform plan. >> where is your tax reform plan? that is why we're here today. >> if you want to bludgeon me into admitting we're not giving you a tax reform plan, i confess. we're not giving it to you. it is not in the budget. if you want to use your time for that, that is fine. >> where is your entitlement reform plan? >> we have in the budget

director $60 billion of specific, storable savings in medicare and medicaid over the 10-year budget window. and $200 -- to an average $50 billion of other managed savings. >> where is your long-term entitlement reform plan? not 10-year budget window. solve theproposing to problems of the country for the next 100 years because we feel like if we could agree on how to fix them for 10 years, people would have more confidence we could work on the next 50 to 100 years. if we cannot agree, why are you worried about and focused on the next century or millennium? >> you're willing to take shots at the plan that mr. ryan has

proposed and you are critical of this plan significantly. all you like to have is in a debate or dialogue on this to say here is the plan that we of proposed. where's the plan that you have proposed? not 100 years. i will yield. >> you can decide. are you going to say you do not like your plan which proves we have a plan, or we do not have a plan? you cannot have it both ways. they're not claiming -- do what you will do to medicare. >> the chairman does not see your way. >> thank you.

i am not -- you're just finished with. . there is a very clear difference of opinion. the fact is there is a different approach here. you spoke for it well and very clearly about the fact that the president is putting forward a 10-year plan and that is pretty good given that we have gone through a tough time and seeing our way through it and growing jobs and stabilizing the deficit and being able to make investments that economic competitiveness would be a good outcome over the next 10 years. we can disagree but calling on the president for not having picked their time frame seems to

be not what the argument is. the argument is they disagree with the plan. that the president has put forward. what i wanted you to talk about because you have well articulated where we come from and the challenges ahead, one of the key differences between what the republicans want to do is to simply cut everything is to not only have a balanced approach would make the investments that will ensure economic competitiveness. you outline some in your testimony. i wanted you to talk about how important is to make developments in research and development. i did what you to know -- i want you to mention to ideas. this is the therapeutic tax credit. this is the $1 billion that

major went to over three dozen companies, a starter -- start of biotech companies, companies that are alive today. working on therapy and devices. i would like to see that be done again if we reached some place where we could move forward. i appreciate the level funding for nih and the other things that you're doing with r&d. and incentivizing businesses that use patents and this has been the tax policy in other nations that has been successful in drawing out new industries, innovative industries that are making products based on a patent and a new patent. i am working on legislation that would do that here and provide tax incentives so we can grow this new -- the growth industry.

i wanted to mention those and give you a couple of minutes to talk about in a positive way how we are going to continue to grow and be the leaders in the world economically. >> i am looking at those proposals and i welcome your support. the simplest way to describe this is better education outcomes, support for basic science and research, not just nih and medical discoveries but across a range of parts of science critical -- not just an eye age and medical discoveries, but across a range of parts of science crucial to technological development. energy, better incentives for investment. being a substantial infrastructure investment, so those things, innovation, infrastructure, a better investment. but that is what we think should be the core of the strategy, and if you look at the combined cost of those things, they are very modest, well within our capacity in the country, but you

have to look at a responsible way to pay for these things, and we in the budget put out how we plan to pay for those reforms. >> we very much appreciate that, and we will try to keep this a little more civil, but at least every other speaker, and try to lay out what is a clear vision for this country and a contrast to the other side, and i appreciate what you said about the willingness of the administration to the other side of the aisle and not getting the cooperation back. we got a conference committee working. it reached a compromise. i think it does protect the americans that need the payroll deduction.

and unemployment on the medicare physician side. >> my compliments for that. as i said again, did not stop there. >> we have got it. the only place i am agreeing with you is the overall captions and headlines. i agree with that part and everything below i have trouble with. >> some of the headlines we agree with, too. >> you talked about maintaining national security and it seemed like another one was -- i do not think any of you get a kick from austria does this budget set out a specific plan of something to prevent the sequestration or the 10% cut in national defense? is there something where you are committing that you want to stop the sequestration so we do not take that 10% cut? >> a good question, and thanks

for asking it. if you count the savings and the cabs of discretionary spending and we agreed on in august, and there is the spending cuts and revenues, so the spending cuts alone are enough to meet the tests that you have to meet and the sequester, and are spending reduction proposals primarily are the 350 or so billion medicare and medicaid and the 250 million or more that we would say from other mandatory items. we believe that that mix of policies goes well beyond what you need to replace the sequestered and better than letting the sequestered it. >> so if that happens, is this the sequester repealed? >> i can remember exactly the way the legislation is written, but if congress were to increase performance that achieve more than the savings required by the sequester, than the sequestered does not go into effect.

>> and does that include tax increases. >> that is a question. we have a magnitude of savings proposals that would exceed the required amount to suspend the sequester. >> the first thing is, i just came from the armed services committee, and a top military administration is setting the sequester is a total and complete disaster. the second thing was jobs and the economy. one of the things with the tax increases is that you are going to repeal the depletion for hard mineral fossil fuels, i.e. coal. they have been tough on them already in terms of permits. increasing the size of expanding -- makes it very hard. and now, increasing taxes on the coal companies.

is that right? >> styling back, reducing the very generous subsidies we provide for a number of parts of the energy sector, and we think that is necessary. we think it is good energy policy and good economic policy, and i would remind you -- >> let me just get really practical. it means the coal company taxes will go up, right? >> yes, they go up. >> they are running about 22%. what would happen if you get rid of that? >> i would have to respond to you in writing, but the average tax rate is in the high 20's, and the reason they did to pay only 22 or 18, whatever it is

for the energy industry is because other businesses are paying more. it is not efficient. it is not fair. it is better to have a flatter system. >> to remove it, it is basically going to shut down the coal industry. i know the president, i have a least heard it that he is favorable to that idea. if you continue the foot dragging on the permits, you increase the groundwater situation. you cannot mine underneath an intermittent stream or something that has no water in it in part of the year, and then you get rid of this depletion allowance. when you take the call out, there is nothing there. we have the same thing for things like sod farms, or if you take enough of that off, there is no more topsoil. to me, it sounds like war on the private sector.

>> we do not believe, congressman, that our proposal will have that risk, but i would be happy to talk to you more about what makes sense with this. >> thank you. mr. blumenauer. >> the debts we have just paid. it is interesting to watch what we had a year ago. there were some threatening to shut down the government over big bird and planned parenthood. you mentioned there were some who were arguing that we not honor paying the debts that we had incurred. >> it was not just some. >> we had people go home for the christmas holiday over the

debate about the payroll tax. but actually, the people sometimes are hurt, and we watch folks come back from holiday and approve what had been essentially rejected, and we're going off to sign off on the conference committee that is extending it for the rest of the year unpaid for, which you could not have imagined. i was struck with what our chairman said on tax reform. i thought that was a fascinating period, but i would like you to comment on a couple of differences. difference. i do not have they charts to put up that talk about the much higher performance of this economy when the tax rates were there are things like investing

in education, infrastructure that matter deeply, but 1986, it did not have to wonder 35 members of the house of representatives who signed a pledge that they are not going to raise anybody's taxes on anything, because as you know, there were lots of changes in that reform that ended up raising taxes on a number of people despite cries that it was going to shut them down. reagan signed off on something that correlated, taxation on individual work and investment. there was a president to repeatedly raised taxes. ronald reagan raised a gas tax in 1982, one nickel a gallon, back when that was real money. so it seems to be one of the

biggest differences from 1986 to now is that we have two parties that were willing to make adjustments and raise taxes where necessary. they had some confidence going back and forth working together, though there were signs that things were off the table. i wonder if you could just elaborate from your vantage point, and the president and the speaker were making progress yanked, but if you want to talk about 1986 versus selling today, i would welcome your thoughts. >> the difference between 1986 as the president said a plan within a substantial increase on businesses in order to pay for a substantial tax cut on

individuals, which he subsequently decided he had to reverse. he reversed a substantial part of that individual tax credit in the coming years because he realized it was irresponsible and unsustainable. but i want to try to take the positive side of this debate, because -- >> please. >> the question is are we coming closer together or moving farther apart. if you look back at the past year despite how divisive it has been, we did some good foundation-laying on tax reform. the appropriations process -- really work at the end of lastit took us longer than we thought, but there was the unemployment insurance. helping to refinance their

mortgages, for example. there are some things we can agree on even while we are on the other things. >> doctor? mr. secretary, welcome. i think the american people by done, and there is a lot of misinformation and disinformation that comes out, and i have for some of it this afternoon. the fact of the matter on the payroll issue, there were some folks in town trying to solve this issue and some folks who fled. those that fled were our democratic colleagues in the senate. uncertainty in the market is destructive to job creation. i assume you agree.

>> well, i guess, right now, there would be the weakness of demand. >> uncertainty for employers, whether tax rate is going to be, what the context is going to be. when we talk to the job creators, they say they have to wait. >> what is hurting growth now is people still have too much debt. we are still working through the housing problems, and there is the triple storm, the triple threat of oil, japan, and europe this year. >> the uncertainty on the other side was a two-month fixed to these things. we had passed the house and 1- year holiday tax reduction, one year of unemployment benefits extension, and a two-year plug

for the positions. i want to talk about small businesses. >> for 2% to 3% of small businesses. >> i appreciate that. >> it employs 33 million people. those 2% employee 33 million people. numbers are right, but that definition of small businesses includes things that many do not consider as being smallhalf of those businesses you just refer to have income after expenses of more than $1 million.

businesses are the secretaries, and clark and a small outlet. they certainly know they are working for a small business, than when you raise taxes on the small business, you get less of what the small business does. >> how are they doing in the>> we are not comparing them like that. we have a program of budget. increasing taxes to chase ever- increasing spending, is insanity, and the american people know it.

you're going to propose is going to have no increases in it? >> we do it in a neutral ways that we close loopholes and broaden the base, lower the rates. >> raise revenue. >> we raise revenue of times that you can accommodate the changes. i am happy to be on the panel at the treasury department when youi am happy to do that. matter is, in this budget that you have, you increase taxes $1.90 trillion. $1.90 trillion. if your increase in taxes is to balance a budget, that is one thing. if your increases are to find this, that is what is so frustrating to the american people. >> that is a good question, but that is not what we are doing. we're proposing to raise taxes

for 1% of gdp over 10 years. >> $1.90 trillion. what you are saying is already in law. i would be happy to show it to you. >> i have got more time. >> you want to be out of here by 4:30, do you not? >> i gotta respond to questions. >> you will miss your schedule if we keep doing this. >> thank you. i want to congratulate you on what is the clearest articulation of our short-term economic needs and our long-term challenges that i have yet heard.

>> i think anybody watching your appearance here and listening to that would understand that we need different approaches over the next few years than we need of the next 40, and i appreciate that very much. i would like to say or ask you, we have seen a lot of charts with lines going not 50, 60, 70 years. with changes in medical research, demographics, culture, world situation, how reasonably reliable do you think those projections are 40 years from now or 50 years from now? >> not an all. >> about as much as betting on the kentucky derby horse? almaguer>> when the clinton administration left office in 2000, the cbo budgets of the next years of roughly $5 trillion, and we have swung from the projected surpluses to

projected deficits in a range of about $8 trillion, so this gestures you what can happen in a short period of time when people make these choices or you face a crisis. 10 years as possible, 40 years is ridiculous. >> republicans have used this argument a lot, saying 2% of small-business owners represent 30% of small brush business income, and does not essentially undermine their point, because this very small percentage of small-business owners is making the lion's share of all of the income for small-business owners, and it is kind of hard to argue that 4.6% more in taxes to them. >> they may be rather small, but they are rather rich. if you're not point to raise revenues by allowing the

effective tax rates to rise moderately for the top 2% of americans, who are you going to ask to pay more taxes, or whose benefits are you going to cut? that is a way to think of the trade-off. the reason this is so beneficial is a try to find that gdp and revenues, in this near-term period, medicare benefits, infrastructure, then you will do more damage for the demand to their products. you'll have less products that they can sell. we think this is a better package for growth than the alternative if you are going to commit to dealing with the deficits. >> ok, cannot let you get away

if you are talking about that. there is the accounting method that would have very dramatic effects on the distilling industry in my state and something that has become a growing export. yesterday, i asked whether or not in constructing the proposal that there is a consideration of the broader economic impact of and in that, and, of course, i am particularly interested in the distilling industry. has there been a look at the economic impact? >> we have looked very carefully, as always do, at the impact on the industries affected, and in our view, it is modest and manageable, but nobody wants to see their taxes go of. who are we going to ask to pay for those special taxes? i understand the merits of them, but we face deficits, and we have to find a way to make the system more fair so that

businesses in certain circumstances are paying the same effective tax rate. >> i know, for instance, one industry which does $3.40 billion pace something like $800 million in excise taxes, and heavily taxed industry. is there something we can look at that we can analyze? i know part of this was about oil and gas, and this is the lion's share, but oil does not taste at all like bourbon, and i would be happy to demonstrate that for you. if you had that kind of analysis, i would love -- >> i would be happy to be as much information as i can in that context. >> are you calling upon the

senate to pass your budget? >> i thought you were going to be asking that. i have heard this in the last few days. i am not a budget process expert, but i will offer a few things in response to that. the senate does not need a budget resolution in order to pass appropriations bills, pass tax cuts, pass tax reforms, pass entitlement reforms, pass savings. as you know, passed payroll tax cuts. we would like the senate and the house together to find more things they can do together that would improve this. >> i would love to hold hands with harry reid. we have done our job in the past and passed a budget here. it is a simple question. states senate to pass the president's budget? >> we are absolutely calling on the senate to in braes, the house as well, to embrace the absolutely.

-- embrace the budget -- the reforms we have in the budget. absolutely. >> are you calling upon the senate to pass the president's budget? can i just say one thing? it is not the test for you to know will not have bipartisan support. that is not a test of legislating. >> i am asking about a democratic president, president of treasury, are you calling upon the senate, which is controlled by the democrats, to vote on and pass your budget? >> absolutely, we would like the senate and house to act on the reforms that the president has in the budget, and that is what a budget is for, but i do not think that is a test of with a divided government. >> so is it fair for me to say calling on the senate and house to pass the president's budget? >> you can say what i just said.

we would like to see it happen. would like to have the house and senate pass sensible fiscal reform. we would like to see that happen. >> the senate has failed to pass a budget in more than 1000 days. it is -- terribly frustrating. >> if that is that you want to spend your time -- you have been saying that for five days. >> i do not want you to tell me how to do my job. we are doing our job. we're passing budgets and we're passing legislation. it sits and stalls in the senate. you can smile and laugh about it all that you want. >> i can help you with other questions, but i cannot help you with that one, because that is about the senate. >> this is the way become to reconciliation. that is part of that challenge. the white house is not asking the senate to get involved in this game. that is how we come to reconciliation. that is how we worked things out. they pass something, we pass something, and we come together, but if they refuse to do their job, and the white house is just going to sit here giddy with a little smirk.

and laugh about it, we cannot do anything about it, we make no progress and that is part of the frustration. let me ask about the january budget outlook. it estimated the stimulus -- >> i have not seen that, but i will need to take a look at it. and get back to you. >> on page two of your testimony, and for members who are looking at this, you have this one particular sentence in here that i would take some issue with. it is the end of the paragraph on page two. "these savings are sufficient to stabilize our debt by 2015 and begin placing our debt on a downward path." what is troubling is when i look at the total, when president obama took office, it is roughly $9 trillion.

now it is predicted to be $26 trillion. the president has never put forward a budget that bances to actually pay down the debt. is that correct? >> we propose reforms, as i said, that would reduce the budget deficit to a level that is sustainable defined as the level that stabilizes the debt burden at an acceptable share of the economy and starts to bring that down. >> what percentage is acceptable? >> the deficit level you need to stabilize the debt has to be slightly below 3% of gdp, and if we do it in this time frame,

that would stabilize the debt economy, and we talk about this as net debt as a percentage of gdp, and that level is a manageable burden for us. if you do that, in the succeeding decades, those costs start to grow. >> thank you. states, the attorneys general. in new jersey, homeowners will receive direct relief, with the refinancing. however, the overall agreement reduction is nothing compared to the $700 billion total in negative equity for homeowners in this country. that is to me and a big deal. in august 2010, the new york fed the principle write-down of a mortgage was 18%, it would cut the probability of default 40%. that is a big deal.

within one year, a modification. considering nearly half of all of our standing mortgages are owned by freddie mac and fannie mae, correct, my friend from new jersey? it seems to have a simple solution. simple. secretary donovan commented that we need to break the logjam of principle reductions. and as you know, a triple incentive has been offered to banks, mortgage companies willing to cut mortgage principle for underwater homeowners 3 jon vacation program. you have talked about this for some time, have you not? the need for principal reduction is apparent not only in new jersey butsome other

states, obviously. while the decline in the median price of a single-family house, home, outpaced the national average by 3.7%, a drop. with one county having a 8% drop last year. that is big. and an even higher drop of 8.4% next door. apparent. the need for principal protection for fannie and freddie-held mortgages is apparent. is it contained within the president's 2012 budget, and if not, why not? >> it does not need to be in the budget, and it is clearly beneficial to the taxpayer to do types of mortgages where this is the case, so we, it sounds like you support, we are working

closely with fannie mae, freddie mac, others, to encourage them to take another look, because we think it is in the taxpayer's interest to do it. >> most of what we have done in the last six years has not held to this problem. i would lay before you that just added to the list, and you know that quite well. this is going on and on and on. what help does the taxpayer get, and then bring down the whole his taxes. then somebody else on the street has to pay his taxes, and this is dragging down. i will listen. but in the minute i have left, people were caught for their homes.

>> we believe the fha has the authority now in a way that is good for the taxpayer. our problem is that we do not have the ability to compel them this is our constraint. i would hope that we can make some progress. >> this is never going to get us back to the problem land. why fannie and why freddie seem

to be on hold the ground, i do not know. >> again seymour of mitt romney's tries for hichoice for. mr. romney has nearly 400 appearances in the video library including his speeches from the house floor, his appearance at the 2004 national convention, and hearings he chaired as budget committee chairman. watch, clip, and share c-span videos your way at the library. >> try as for discussion about the challenges of moving from paper to electronic health records. i.t. officials from the health and human services department and the private sector will discuss protecting patient privacy and other security concerns. our live coverage begins at 12:15 p.m. eastern on c-span2.

>> the idea that we're in this together regardless of who we are or where we come from or how much money we have, each of us counts and that by working together to create opportunity and a good life for all, all of us are enriched not just in economic terms but as citizens and as human beings. [applause] >> my opponent will not rule out raising taxes but i will and the congress will push me to raise taxes and i will say no and it will push and i will say no. and they will push again and i will say to them, read my lips. no new taxes. [cheers and applause]

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historically, that is how our economy has grown, not from the top down, but from the middle up, from the bottom up. when we have an opportunity for everybody who works hard to get ahead. this economy grows. that is the choice in this election, and that is why i am running for a second term as president. [cheers and applause] now, that choice, you can see it in every issue between myself and mr. romney, as when

the auto industry was on the collapse. governor romney said, "let's let detroit go bankrupt." i said with an iconic american industry on the line, i'm going to bet on them. and three years later, general motors is number one again. that is the choice. [cheers and applause] so now i want to make sure that high-tech manufacturing takes root, not in germany but in the united states. i want to give incentives to companies who are investing here in chicago, investing in pittsburgh. let's create jobs here in the united states, hiring american workers, making american products, selling them around the world, stamped with three

words, "made in america." [cheers and applause] i am running to make sure that after a decade of war, we start doing some nation-building here at home. in 2008, promised we would end the war in iraq. we have ended it. i said we would go after al qaeda and bin laden. we did. [cheers and applause] now, we're beginning a transition in afghanistan, making afghans more responsible for their own security and bringing our troops home. all of this is possible only because of the extraordinary men and women in uniform who protect our freedom every single day, at great sacrifice to themselves. but the question now is what country are they coming back to? we want to give them a country full of opportunities. now, part of that means making sure that we are doing right by

them, and as long as i am commander in chief, they are going to get the benefits that they have burned, because if you fought for america, you should not have to fight for a job or a roof over your head when you come home. [cheers and applause] but it also means making sure the economy is absorbing all of these folks who are coming home, which means i want to take about half of the money we are spending on war, and let's start investing in here in rebuilding our schools and roads and bridges. let's make sure that we are putting teachers back to worked. there is so much we can do with the savings that we have, and it will make america stronger. it will make america safer, not just for the next five years or for the next 10 years, but for decades to come. that is the america we want to

build. that is the choice in the next election. i am running because i want to make sure we have got the best education system in the world. [cheers and applause] i want to help local school districts hire and retain the best teachers, especially in mathematics and science. i want to give 2 million more people the opportunity to go to community college and get trained for jobs businesses are hiring for right now, and i want to make sure, building on the work we've already done, that we make college affordable, not only to make sure that we continue to expand our efforts with the pell grants and student loans but also that we're making sure that colleges and universities are keeping their costs down, because higher education is no longer a luxury. it is an economic necessity in the 21st century, and we have

got to fight for it. that is the choice in this election. on every issue, there is a conference. when it comes to home ownership. my opponent says, just let foreclosures bottom out. that is not a solution. i want to make sure that homeowners across the country can refinance at historically low rates, say $3,000. how many people here can use an additional $3,000? i want to strengthen the housing market and put more people -- more money in people's pockets. my opponent says we should go back. he wants to kill the affordable care act, also known affectionately as obamacare. [cheers and applause] i believe it was the right thing to do for young people to be able to stay on their parent plants.

6.5 million young people have insurance that did not have it before. i think it is the right thing to do that people with pre-existing conditions are able to get health insurance. i think it is the right thing to do for seniors to get discounts on their prescription drugs. i think it is the right thing for people to be able to get preventive care, including women, you can have some control over their own health care decisions. when are not going backward. we are going forward. that is the choice in this election. [cheers and applause] we did the right thing to end it do not ask do not tell. we are not going backward. we did the right thing helping out kids. we are not going back. we are not going backwards, we're going forwards. across the board on these issues, all of these things, whether we are talking about manufacturing, a fair tax code, a strong housing market, affordable college, all of these things pitch together. it has to do with how to

recreate security for middle- class folks, and how to recreate ladders of opportunity for everybody. that is how we have always grown the economy. that is at the heart of what we believe, that everybody who works hard has a shot, that everybody gets a fair shot. everybody does their fair share. everybody plays by the same set of rules, and a belief that we are in this together, that we are not all on our own. that is the vision we put forward in 2008. that is the vision we are fighting for in 2012. that is the choice in this election, and that is why i am running for president. [cheers and applause] >> four more years, four more years, four more years, four more years, four more years! >> we have got less than three

months, less than three months. that goes by quick. and as you get older, when you get to be like 51, as you will find out, it goes by even quicker, and during this time, you will see the other side spend more money through the super pac's than we have seen ever. they are writing $10 million checks. if you live in a battleground states, you cannot get away from their advertising. now, the reason they have to advertise like this is they know economic theory. they know, we did not get an nation. we remember trying what they are selling, and it did not work. so they are basically going to repeat over and over again that the economy is not good, and it is obama's fault. it may be different, but it is the same.

it is not a plan to strengthen the economy. it is not a plan to revive the middle class. it is not a plan to make america stronger. it feeds into the theater that so many americans feel about washington, but it is not a plan for hope. it does not capture america at its best, a big, bold, generous, optimistic america, and so, so the good news is we have been outspent before. i have been counted out before. but what has always given me faith, given me faith, giving me confidence is you. it is all of you. it is the fact that when the american people come together, they cannot be stopped.

[cheers and applause] when you guys are out there, knocking on doors, making things happen, you cannot be stopped, so i am going to need your help. we have gone too far to go back now. we have got too many teachers we need to hire, until many schools we need to rebuild, too many students needing help for college, too much energy we have to generate, too many people we have to bring home. we have got more doors of opportunity we have to open, and that is what is at stake, so i am not just asking for your vote. i am asking for your work. i need your help over the next three months. i need you to knock on doors. i need you to make phone calls. i need you to talk to your friends.

i need you to talk to your neighbors. i need you to load up and go over into iowa. we have got to get help. you have got to get involved in the election. you have got to make sure you are signing up. if you are as passionate and as energized and as determined as you were before, then we will not lose, and it is true that i am older and a little grayer, but, you know, and they promise to you in 2008. i said i would always tell you what i thought it and where i stood, and most important, i told you i would always, every single day, every minute of every day, think about you and fight as hard as i knew how for you. i have kept that promise. i still believe in you. and if you still believe in me and are willing to get out there and work during the next 86 days, we will not just win this election, but we will finish what we started in remind

the world just why it is the united states of america is the greatest nation on earth. god bless you, chicago. god bless the united states of america. [cheers and applause] ♪ >> ♪ i have been knocking on the door ♪ ♪ who take care of their own we take care of our own

from the shotgun shack to the superdome they yelled "help," but the calvary stayed home we take care of our own we take care of our own wherever the flag is flown ♪ [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] ♪

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>> president obama will begin his three-day bus tour in iowa today. he is a campaign stop at council bluffs live here on c-span. >> coming up today on "washington journal." we look to developments in the presidential campaign around the country. then we will look at how the health care law could impact employers and health-care costs. our guest is the president of the national business group on health. then we are joined. "washington journal" with your calls and e-mail is live on c- span. >> it is the idea that we're in

this together. regardless of who we are or were we come from, each of discounts. and that are working together to create opportunity and a good life for all, all of us are enriched. not just in economic terms, but as citizens and as human beings. >> my oppone will not rule out raising taxes, but i will and the congress will push me to raise taxes. i will say no. they will push, and i will say no. i will say to them, read my lips. no new taxes. >> c-span has aired every minute of every major party conventions since 1984. this year, watch the republican and democratic national conventions live on c-span starting monday, august 27. >> mitt romney and his newly

announced running mate paul ryan continue their campaign to work today in wisconsin. they attended or was called the homecoming rally in congressman ryan's home state. this is about 40 minutes. >> let me just open up. don't you feel blessed today? i dunno but you, but are you ready to fire barack obama and save america? are you ready to win? are you ready to win? how about electing paul ryan as the next vice president? well, i know. just like me, and just like everybody in this crowd, everybody here tonight, i can promise you that we are not here to nine because we are worried

about the future of the republican party. we are here tonight, together, because we are concerned about the future of america. i happen to believe that we're in a battle for freedom. it is the same battle but founded this country. it is the same battle that james madison reaffirmed in the bill of rights. and here we are today. because a country that surrenders its sovereignty to its bondholders cannot guarantee prosperity or freedom to anybody. the country that buries its kids and its grand kids in an avalanche of debt cannot rest in any moral high ground. a country controlled by china cannot compete with china. america has a choice to make.

are we going to continue down the path of misery and broken promises? are we going to continue down the path of a president who is in love with the sound of his own voice? this election is a new moment. it is this generation's time to choose. and we all have to say thank you. to governor mitt romney. a man of character, a man of honesty, courage, thank you. thank you for choosing paul ryan as your running mate. [applause] i happen to believe this president has a problem with the

american dream. not one parent out here looked at the beautiful house in the corner with their kids in the back seat inset, levities lousy people over here. all their parents, like my dad who is in the crowd tonight, looked to me, and said, if you work hard, if you play by the rules and go school, mom and dad want you to have that house. we want you to succeed. we want you to be a success. we have an opportunity to get together today to work together. to save this country. a man of his word has now shown the way. he plans on government campaign. it is what we want in this country and what we have been so blessed with in wisconsin. real authentic people like scott walker would stand out and the lead this state and what you all

did in june in shining the pathway to liberty and freedom for the entire country. ladies and shaman, the greatest governor and united states of america, scott walker. >> isn't it great to have a cheese head on the ballot? [applause] thank you all for coming out. it is such a thrill for me and my family. my family are here. to support the next first family, the romney and the ryan family. let's give a warm welcome to our next first lady, and romney.

-- ann romney. [applause] >> mitt and paul be out in just a moment. i will be a real brief. on june 5, we stood on this ground and claimed a victory not for a can of it, but for the taxpayers of the great state of wisconsin. on november 6, we will play a victory not just for wisconsin, but for hard-working taxpayers all across america with your help.

>> mitt romney showed us yesterday that he is not only experience but he has the courage to lead this country. he made a bold decision. it is not as big for wisconsin. it is a great deal for wisconsin. paul ryan will be a great vice president. think about it. mitt romney had the experience we need to turn america around. this is a guy who in the private sector, in the media it tried to make excuses about this, this is a leader who stood up and turn companies around. there are thousands of people working today because of his leadership in private sector.

that is where we may jobs, not in government. then a decade ago this is the last night of the olympics. i've been watching the olympics. it has been spectacular. remember a decade ago in 2002 we nearly had a global embarrassment to the united states backs mitt romney came in and saved the day and almost single-handedly turn the olympics around. we have a leader who can turn things around in the private sector. he can turn things around for america. as governor, people forget this. remember the big dig? it was a disaster. and a runny got to work like a great leader does.

-- he got to work like a great leader does. he can do it in the private sector. he can turn america around. he has the courage and the olympics to be the next president of the united states. are you ready? are you ready to hear from the next president of the united states? welcome governor mitt romney and paul ryan. ♪

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>> thank you, everybody. thank you, wisconsin. it is good to be home. i tell you. i love wisconsin.

i see my family over here. i have a lot of family. i tell you what. my family came here back in the 1800's. it is where we have raised our family ever since. it is such a phenomenal place to live, to work, to raise your family. i am thinking about a deer camp over a in fairchild.

our children. we live on the block eiger up on. my veins runs cheese, bratwurst, and a little spotted cow and some miller. i was raised by the bucs and brewers. i like to fish here. i like to snowmobile here. i even think i should fishing region as a fishing is interesting.

at to tell you what this means to be home. i want to say thanks to my friend scott walker. my friend writes this. what we learned in this state a little while ago, is that we want to elect men and women who run for office and tell us who they really are, who they believe, what they're going to do.

when they get elected, and they do that. that is what we do here in wisconsin. we are ready. we implemented our leaders. we said keep doing it. courage one. we say it was confident that day. in november, we will help save america that day.

i see so many familiar faces. >> we are all family. >> we are. and that was my brother that said that. -- was not my brother that said that. [laughter] we have to make a decision. the president came into office with so much hope, offering so much change. he got the power he wanted.

he got the party in control. he passed almost every item on his agenda. it is law now. now we're seeing the results. a country with a health care system that is about to be taken over. a country with four years of the trillion dollar deficit. the worst economic situation in years.

nearly one in six americans are in poverty today. do you know what that we're not going to take that. we're going to turn this thing around. the good news is this. we can do this. we can turn this around. we can get this economy turned around. we can get the economy back to work. i look at my kid. sam, i am over here. [laughter] i look at my kids. it has been a long day for him. i let my kids and i want them to have the future i had. that is what my dad told me. and this country, every generation makes things better and leaves their kids better off. it is our duty to save the american dream for our children. we have a big choice to make.

if we look at the path we're on and all the things the president has been doing, more governments, more regulations, the promise of a lot more taxes, we see a president who took what we pioneered here, getting people back to work and dignity and on to a lack of hitting their potential. if this president is going to do these kinds of things in very difficult election year, imagine what he would do the never had to face the voters ever again. we're not going to find out. here is our choice. we can either stick with the politics of the past, with distracting and starting.

we can put ourselves on the path toward a welfare state where we now see the government's role as not promoting economic avidity by giving us a new government rights, putting the government in charge. driving our economy. picking winners and losers. equalizing the outcomes. this country is so special. this state is so special. it is the only country founded on an idea. it is very special. that idea is the declaration of independence. our right come from nature and god not from government. [cheers and applause]

here is our choice. do we want that opportunity, at the safety net where people can make the most of their lives and get ahead or do we want to go down a pack of debt and despair? do we want to copy europe? no. is to take leadership. it take courage. it will take another objection that we had none could 2010 to get this right. when we do, we will look back at this moment as the day our generation fixed it so the american idea was turned back and our children have a brighter future. as you now know, i spent some time with this man lately. we need a man of integrity. we need a leader of principle.

we need somebody who has a bedrock principles, a moral compass, a vision for the country, and the expertise to put that vision into place. those are the things that describe this man mitt romney. when you see how this man, how warmly is to his family, it to his associates, when you see the successes he has achieved, raising a beautiful family, creating small businesses, creating jobs, this is a person who knows that if you have a small business you did build

that. this is a man who win the olympics was struggling the country called him to revive it. this is a man who as governor walked across the aisle, and got things done, balance the budget without raising taxes, increases the credit rating, and increase household income by providing leadership. this is a special moment for all of us. we are all family.

this is it. this is the election. we owe you the choice so you can decide what kind of country we will be. we won the election where we turn your support. where we win because you said go fix the mess in washington. we are going to fix this mess in washington. this is an exceptional nation. this is the greatest idea appeared there is no other system that has done more to help the poor, a spread opportunity, to help people rise up than the american system of freedom and free enterprise. we have a leader here who understands that.

who knows how to deliver that. that is our contract with you. ladies and gentlemen, we're going to do this. we're going to turn this around. this man is a mitt romney. he will be the next president of the united states of america. >> thank you. what a welcome. i guess you think i made the right decision and the right choice.

this is another big step to restore the promise of america. people ask me why i chose paul ryan. the answer is i wanted someone who was a leader. leadership comes from character. this is a man who has real character, who loves america. to understand what it takes to get america on the right track. this america will help get america strong. i know what most people go to washington they are filled with ambition. he decided that america needed to have someone who would go to washington not thinking about how he could beat up on other people. it was someone who would go

there to make a real difference. this is a man who recognizes that people have differences of opinion if they are honest. we reached across the aisle. he worked with people in the democratic party. as a result, he is the man who in washington is of knowledge, is recognized, is seen as an intellectual leader. he is respected. as vice president, he will be respected by people across the nation and world. this is a critical time. you know this is a critical time for the country. you are here to celebrate the selection of an extraordinary guy. you also know this is a time of great seriousness for the nation. we have 23 million people out of work. [chanting "usa"]

you see, this group here is respectful of other people's rights to be heard. here we believe and listening to the people with dignity and respect. there is no question but if you followed the campaign of barack obama he will do everything to make this the lowest, meanest campaign in history.

this is going to be a campaign about ideas and the future of america. this is about america's future for your children and the world. take your campaign out of the better. the stock about the real issues america faces people in america are hurting right now. the middle class is struggling. incomes have dropped by $4,000. utility costs are up. gasoline prices are up. people want to know of america is line to come back.

its is i am going to do five things. we're glad to work together to get five things and that will get our economy roaring back. we will take advantage of our energy resources as well as nuclear, oil, gas, coal. we are going to make sure that our kids and our workers have the skills they need to succeed. we're going to put work back into welfare. no. 3, we are going to have trade that works for america. below open up new markets. when people cheat like china has, there will be consequences. number four, we are going to do something that paul has been wanting to do for years. when we have republicans in house and senate and the white house, we will cut federal spending and get america on

track to the balanced budget. we are going to champion small business. we will help them grow and thrive. i cannot believe that the other day when i saw that quote of the president in virginia appeared at cannot believe he said that. if you have a business, you did not build it. someone else did that. then he said it is not fair. you took me out of context. go on youtube. read the context. you will find the context is worse than the quote. he said there are lots of smart people.

he may think it is because you're working hard but a lot of people work hard. i cannot figure out where he was going. in this country, we celebrate people who reach, a dream, aspire, and cheese. that is the nature of how america works. when the guy or gal, from the factory in says i took the class at the community college and i got some more skills, we celebrate and acknowledged that. when the kid says i made the honor roll, we celebrate that child. we say way to go. you make that happen. i know for them to make the honor roll they had to ride on a bus to get to school and there is a bus driver. but if he gets the honor roll, a he is the credit not the bus driver. this country is going to come roaring back. if we did those five things you will see america's economy come

back and create great jobs, more take-home pay. you will be convinced that the future is brighter for your children. i have seen the. of america across this land. one thing that is me the greatest confidence in our future is that what lies in the hearts of the american people a patriotism and a conviction that america is a great nation. we were all moved at the welcome you gave him. we were a touch. tears filled my eyes. i know you felt the same way.

you are amazing. i am not sure about the kiss, but the rest of us felt emotional. i just got back to a time when i understood one more time how deep the passion is for this country. this was at the end of another olympics. we're just ending the london alembics. it has been urging olympics. it has been a spectacular to watch. at the end of our games, i invited a young man to come in and sit with vice president cheney to represent all of the athletes of america. i chose the young man. he is about 5'4" he was a roller bladers. his friend said if you ever want to get in the olympics yet again to a different sport. he tried on ice skates.

he went to the local skating club. he was fast. i guess it translates pretty well. he states his heart out, trains and trains. he ends up being a lot of fellows from twist -- from michigan. he becomes a member of the speed skating team. he is long track, though. he comes out and skate his heart out. 5,000 meters. he gets the silver medal. fastest man on earth on skates. i invited him to sit with the vice president. as he came in, i said, what was the most meaningful experience in europe and the games? he said, carrying in the flight that had flown above the world trade center on september 11, 2001 at the opening ceremonies.

he was one of the eight athletes that was selected to carry that fly. it is about 8 by 12 feet. it is torn and burn. it cannot be put on a flight also have to bring it in horizontal it. we brought it into the stadium some 55,000 people. we expected there would burst into tears. instead, a total silence. complete reverence. he said, we carried a flat and stopped in front of the choir. the began performing the national anthem. he said, it was hard to hold on to my motion when they were singing those words. and then he said the acquired did something i had not expected. i knew it was coming, because i was the guy in charge of the olympics. i picked the version of the national anthem they sang. it was an old version where you repeat the last line as a

reprieves. the soprano is go up a octave. oh say, does that star spangled banner yet wave o'er the land of the free and the home of the brave. he said, this time as they sang it, a gust of wind blew in the flight and lifted it in their hands. he said, for me, it was as if the spirits of all those who have fought and died for american liberty had just flown in to that fly. he said, tears began to run down my face. as he told me that story, tears filled my eyes. we love this country. we know it is an exceptional planned. we understand that when the founders wrote those words and said that the creature endowed us with a rights, that they were right. among those rights are life, liberty, and the pursuit of happiness. if we are a nation given those freedoms that we share with people all around the world.

this is the greatest nation the world has seen in part because of that extraordinary beginning. and that idea, as paul said, we are not going to change america into something we do not recognize. we will restore to america the principles that made america the hope of the earth. we will do everything in our power to keep america strong in our homes, in our economy, in our military. this nation has a mission to perform. we are going to make it happen. if you are going to help us win the white house in november. we are counting on wisconsin. thank you. thank you. [applause] ♪

>> that romney and his running mate, paul ryan, will each campaign in different parts of the country later today. mr. ryan will campaign in iowa all the former governor heads to florida. we will bring you live coverage later today on c-span. coming up on c-span a "q&a" the author of "hitlerland."

captions copyright national cable satellite corp. 2012] captioned by the- national captioning institute- -- www.ncicap.org--- >> this week on "q & a," our guest is andrew nagorski, vice president of the eastwest institute, international affairs think tank. new book is called "hitlerland: american eyewitness to the nazi rise of power". >> andrew nagorski, where did you get the idea for your book "hitlerland"? >> i was thinking for a long time what would be my next book. you go through those periods where you are searching for topics and never wanted to force a topic. there was a conversation with my wife and we were driving and she said there have been all these books recently about americans in paris, americans in london, anyone really done about the american experience in germany? and even though we lived in germany twice. i was a news correspondent in

the cold war days and post-cold war days. i never thought about it. i would pick up a book here and there. when i began to explore, i realized no one had examined the american experience in germany from the end of world war i right through pearl harbor and declaration of war against the united states by hitler. and the next question of course is, are the stories there, what are the sources, is it a story you can weave together. and once i began exploring what was out there, both in published, unpublished and memoirs and diaries and letters, i found myself fascinated from the get-go. >> did it have any impact on you when erik larsson came out with "garden of beasts"? >> i finished my manuscript when i realized this book was

coming out and my first reaction was, why is someone else writing about this subject, but i realized he was writing in a much more focused, narrow slight, not to belittle him in any way. he focused on william dodd, the first american ambassador to germany when hitler took power and his daughter, which is part of my story, too, but two of many characters in my story which stands a much broader era. in the end, a number of people told me that if they read larsson's book, it made them more curious about the other america caps and the broader context and i hope "hitlerland" gives it to them. >> give us some of the names, but who are some of the other

names that popped up in this story from the end of world war i to the beginning of world war ii? >> mostly in berlin and munich and other places. i decided to first of all, see whoever left interesting material behind and in a couple of cases i could interview a few people. one of the original morrow boys. a young ap correspondent and then onto the c.i.a. he was one of the last americans interned in germany. there were a few people. but i ended up speaking to the kids, sometimes grandkids, and getting the written records that they left behind in family archives or public archives, libraries and so forth. there was a stunning number of people there who -- some of whom were well known, william

scheirer and a power house and a major broadcaster in the early radio days. there was charles lindbergh comes through germany. everyone has heard of that. you also have people -- even john f. kennedy went to germany in 1937. his diary entries aren't revealing other than he is interested in quote, unquote, he a bundle of fun that he picked up at the border. i talked to debois, not a name you associate with germany, but

-- the black sociologist- historian, but he spent a fellowship in 1935 and 1936 and had insights from germans and racial doctrine and the playoff and the 1936 olympics. you have people who are associated with russia who spent one tour in germany, which happened to be the critical years right before world war ii. >> who doesn't look good in retrospect? >> there are a number of people who don't look great. and there are a number of people who, i'd say, have a very mixed record. and one thing i tried to do in this book was not to be sort of rendering judgment on these characters. the whole point of the book and the reason i wrote a book about this period, which i find fascinating, i wouldn't have written a straight period of the

history. -- straight history of the period. there have been so many very accomplished -- historians have done that and very effectively. but if "hitlerland" succeeds, it succeeds of putting the reader in the shoes of the americans there at the time, seeing things piecemeal and then trying to figure out what was happening. and inevitably raises the question, what would you have known, you, me, anybody else, if we had been there at the time. it all seems so clear in retrospect, but it wasn't clear then. the more i dug into this, i didn't want to pass rigid judgment on people. of course there were people -- edgar marow, a chicago daily

news correspondent and a consul who was very outspoken and courageous and truman smith, who i think was very perceptive, both about hitler who he met as far back in 1922 and the buildup of the germany military and people who clearly blew up. -- blue it. dorothy thompson. she was the most famous american woman correspondent of that era. very smart reporter in many ways, but she goes in and interviews hitler in november of 1931 for the first time. at that point, hitler's party is really on the rise. a lot of people are predicting is going to take power and she writes immediately after that interview, i thought i was going to meet the future leader of germany. within 50 seconds, i realized, i was not. such was the startling insignificance of this man and

wept on to talk about how he had -- and went on to talk about how we had this look in his eyes that is common to hysterics and alcoholics and geniuses and how he has a soft, feminine side and no match for the true german politicians. what i find interesting about that and dorothy thompson obviously radically revived -- revised her views and ultimately got her expelled. because of hard-hitting reporting. even those mistakes of what i call the first draft of history that we as journalists always try to write are revealing and they explain a lot about how hitler fools a lot of people and why so many people did not take him seriously, whether they were germans, diplomats or germans themselves and many german jews. >> dorothy thompson was married to -- >> sinclair lewis.

and there were many famous literary geniuses. he falls in love with her. thomas wolfe comes to germany. he is entranced by germany. hailed as a hero at first and then when he first comes in 1936, he really is pretty much oblivious to what is going on because he is just basking in his fame. the next time he comes a year later, he is much more aware and writes a piercing novella which becomes part of a larger book later. and you even -- i came across an entry in one diary of another correspondent in 1927.

hemming way was just through town and saw him on the street with sinclair lewis. josephine baker comes to town. in 1925 -- we think of her as paris, entertaining the audiences in paris. but she hears about berlin, amazing party town in the 1920's and she decides to take her whole troupe to berlin and despite the fact there are nazi protestors outside shouting racist slogans, german audiences love her and invited to the after-parties. she is the star of the show. she performed there often just in her loin cloth and she says there is no fiscal year, greater place than beer -- there is no freer, greater place than germany.

-- then berlin. which is something we tend to forget about germany. >> how many books have you written? >> this is my fifth book. >> where do you work now? >> eastwest institute, a new york-based think tank. started in 1980's in the cold war days and diplomacy between the soviet union, the united states, nato pac -- nato and warsaw pac and now the institute deals with china, cybersecurity, economic security issues. i have been there for the last -- almost four years since i left "newsweek". >> how many different places did you live writing for "newsweek" and anybody else? >> for "newsweek," i was bought for 20 years, hong kong, once expel led, bonn, berlin, rome,

washington. how many places does that make? several. >> we know you were born in scotland to polish parents and your wife is polish and you have four kids. >> four kids and seven grandkids. the last one just finished college about a year -- let me get this right -- about two years ago. and we now -- and the other kids -- the other three kids are all married and have kids of their own as well. >> you live where? >> i live in new york, just outside of new york in pelham and our kids are in juneau, l.a., austin and new york. >> in your book, you talk about william scheirer. who was he?

we have some video to show in a moment. >> at the time i'm writing the story is just -- he has just turned 30, in paris. he has been a writer for various publications in the united states. he is desperate to go what he thinks is the next big story, which is germany. he says i'm dying of boredom in paris. most people would not think paris is a boring assignment. it goes to show once again that as a journalist, your instinct is to go to that next big story and he could see it was happening in germany. and in 1933, after hitler takes power, he gets an assignment from hearst international news service to go to germany. goes there and is an incredibly energetic, very perceptive correspondent and is hired by ed morrow at cbs and he stays

in germany or in vienna right through the beginning of the war. he writes at the time -- he publishes his berlin diaries after he leaves berlin which comes out in 1940, which has a huge impact in the united states. the writing's wonderful and very vivid and really brought home what was happening in germany, of course much later long after the war, he produces "the rise and fall of the third reich," still one of the most authoritative studies. >> did you check to see how many of those have sold? >> simon and shuster, my publisher reissued that book on the 50th anniversary. the 50th anniversary.