Number 2 Pencil

BUSH: I'd say, Bob, I've got policies to continue to grow our economy and create the jobs of the 21st century. And here's some help for you to go get an education. Here's some help for you to go to a community college.

We've expanded trade adjustment assistance. We want to help pay for you to gain the skills necessary to fill the jobs of the 21st century. You know, there's a lot of talk about how to keep the economy growing. We talk about fiscal matters. But perhaps the best way to keep jobs here in America and to keep this economy growing is to make sure our education system works.

I went to Washington to solve problems. And I saw a problem in the public education system in America. They were just shuffling too many kids through the system, year after year, grade after grade, without learning the basics.

And so we said: Let's raise the standards. We're spending more money, but let's raise the standards and measure early and solve problems now, before it's too late. No, education is how to help the person who's lost a job. Education is how to make sure we've got a workforce that's productive and competitive.

Got four more years, I've got more to do to continue to raise standards, to continue to reward teachers and school districts that are working, to emphasize math and science in the classrooms, to continue to expand Pell Grants to make sure that people have an opportunity to start their career with a college diploma.

And so the person you talked to, I say, here's some help, here's some trade adjustment assistance money for you to go a community college in your neighborhood, a community college which is providing the skills necessary to fill the jobs of the 21st century. And that's what I would say to that person.

SCHIEFFER: Senator Kerry?

KERRY: I want you to notice how the president switched away from jobs and started talking about education principally.

Let me come back in one moment to that, but I want to speak for a second, if I can, to what the president said about fiscal responsibility. Being lectured by the president on fiscal responsibility is a little bit like Tony Soprano talking to me about law and order in this country.

(LAUGHTER)

This president has taken a $5.6 trillion surplus and turned it into deficits as far as the eye can see. Health-care costs for the average American have gone up 64 percent; tuitions have gone up 35 percent; gasoline prices up 30 percent; Medicare premiums went up 17 percent a few days ago; prescription drugs are up 12 percent a year.

But guess what, America? The wages of Americans have gone down. The jobs that are being created in Arizona right now are paying about $13,700 less than the jobs that we're losing.

And the president just walks on by this problem. The fact is that he's cut job-training money. $1 billion was cut. They only added a little bit back this year because it's an election year.

They've cut the Pell Grants and the Perkins loans to help kids be able to go to college. They've cut the training money. They've wound up not even extending unemployment benefits and not even extending health care to those people who are unemployed.

I'm going to do those things, because that's what's right in America: Help workers to transition in every respect.

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SCHIEFFER: Next question to you, Senator Kerry.

The gap between rich and poor is growing wider. More people are dropping into poverty. Yet the minimum wage has been stuck at, what, $5.15 an hour now for about seven years. Is it time to raise it?

KERRY: Well, I'm glad you raised that question. It's long overdue time to raise the minimum wage. And, America, this is one of those issues that separates the president and myself.

We have fought to try to raise the minimum wage in the last years. But the Republican leadership of the House and Senate won't even let us have a vote on it. We're not allowed to vote on it. They don't want to raise the minimum wage. The minimum wage is the lowest minimum wage value it has been in our nation in 50 years.

If we raise the minimum wage, which I will do over several years to $7 an hour, 9.2 million women who are trying to raise their families would earn another $3,800 a year. The president has denied 9.2 million women $3,800 a year, but he doesn't hesitate to fight for $136,000 to a millionaire.

One percent of America got $89 billion last year in a tax cut, but people working hard, playing by the rules, trying to take care of their kids, family values, that we're supposed to value so much in America — I'm tired of politicians who talk about family values and don't value families.

What we need to do is raise the minimum wage. We also need to hold onto equal pay. Women work for 76 cents on the dollar for the same work that men do. That's not right in America. And we had an initiative that we were working on to raise women's pay. They've cut it off. They've stopped it. They don't enforce these kinds of things.

Now, I think that it a matter of fundamental right that if we raise the minimum wage, 15 million Americans would be positively affected. We'd put money into the hands of people who work hard, who obey the rules, who play for the American Dream.

And if we did that, we'd have more consumption ability in America, which is what we need right in order to kick our economy into gear. I will fight tooth and nail to pass the minimum wage.

BUSH: Actually, Mitch McConnell had a minimum-wage plan that I supported that would have increased the minimum wage. But let me talk about what's really important for the worker you're referring to. And that's to make sure the education system works. It's to make sure we raise standards.

Listen, the No Child Left Behind Act is really a jobs act when you think about it. The No Child Left Behind Act says, "We'll raise standards. We'll increase federal spending. But in return for extra spending, we now want people to measure — states and local jurisdictions to measure to show us whether or not a child can read or write or add and subtract."

You cannot solve a problem unless you diagnose the problem. And we weren't diagnosing problems. And therefore just kids were being shuffled through the school.

And guess who would get shuffled through? Children whose parents wouldn't speak English as a first language just move through. Many inner-city kids just move through. We've stopped that practice now by measuring early. And when we find a problem, we spend extra money to correct it.

I remember a lady in Houston, Texas, told me, "Reading is the new civil right," and she's right. In order to make sure people have jobs for the 21st century, we've got to get it right in the education system, and we're beginning to close a minority achievement gap now.