"The problem is the failed policy of Reaganomics, signed into law in August, 1981, putting 3 million additional jobless on the streets. That $750 billion revenue hemorrhage, and $1.6 trillion in defense increases, guarantee $200 billion deficits for each of the next three years.
"Business, knowing interest rates are going back up, holds off investing and Americans are denied the chance to go back to work.
"Getting the deficit down and lowering interest rates is both the short-range and the long-range solution. The best emergency jobs program is my budget freeze. Freeze discretionary spending; freeze defense at the 3 percent real growth level to carry out our NATO commitment. Freeze cost-of-living adjustments in entitlement programs, excepting food stamps, Supplemental Security Income and Medicare-Medicaid because the poor are already hurting.
"Finally, freeze tax spending. We don't have the tax revenues for further cuts or indexing. If it is a shared sacrifice across the board, people will do their part.
"This is strong medicine but more effective than jobs bills to save politicians' jobs. With a disciplined fiscal policy, the Federal Reserve Board could lower the discount rate, and just a two-point drop in interest rates would re-employ 2 million Americans.
"Getting serious about creating jobs means putting a trade policy in place. We are in an intense international competition--and not competing. Basic industries, and now high-tech too, are being picked off by foreign governments, who coordinate industry, labor and research and development in national strategies while we talk about government being the enemy.
"Creating jobs over the long haul means education. It means convening the best and the brightest for an industrial policy. It means pulling together as a nation, rather than appealing yet another time to the single interest. It means leadership."