$1,800 a year to their incomes. Half the increase was necessary just to get the minimum wage (after inflation) back to what it had been in 1991, the last time it was raised. The minimum wage was a favorite cause of most Democrats, but most Republicans opposed minimum wage increases, claiming that they cost jobs by increasing the cost of doing business. There was little evidentiary support for their position. Indeed, some young labor economists had recently found that a moderate minimum wage increase might lead to a modest increase—not decrease—in employment. I had recently seen a television interview with a minimum wage worker in a factory in southwest Virginia. When asked about rumors that the increase might cause her employer to lay off her and other co-workers and do more work with machines, the woman smiled and told the interviewer, “Honey, I’ll take my chances.”
In the fourth week of February, Hillary and I paid a two-day state visit to Canada, where we stayed at the American ambassador’s residence with Ambassador Jim and Janet Blanchard. Jim and I had become friends in the 1980s, when he was governor of Michigan. Canada is our largest trading partner and closest ally. We share the longest unguarded border in the world. In 1995, we were working together on Haiti, on helping Mexico, and on NATO, NAFTA, the Summit of the Americas, and APEC. While we had occasional disputes over trade in wheat and timber and over salmon-fishing rights, our friendship was broad and deep.
We spent a lot of time with Prime Minister Jean Chrétien and his wife, Aline. Chrétien would become one of my best friends among world leaders, a strong ally, confidant, and frequent golfing partner. I also spoke to the Canadian parliament, thanking them for our economic and security partnerships and the rich cultural contributions of Canadians to American life, including Oscar Peterson, my favorite jazz pianist; singer-songwriter Joni Mitchell, who wrote “Chelsea Morning”; and Yousuf Karsh, the great photographer who had become famous for his portrait of Churchill scowling after Karsh jerked the omnipresent cigar out of his hand, and who had photographed Hillary and me in less forbidding poses. March got off to a good start, at least from my point of view, when the Senate failed, by only one vote, to get the two-thirds majority necessary to pass the balanced budget amendment. Though the amendment was popular, virtually every economist thought it was a bad idea because it restricted the ability of the government to run deficits under appropriate circumstances during a recession or a national emergency. Before 1981, America had not had much of a deficit problem; only after twelve years of trickle-down economics had quadrupled the national debt did politicians begin to argue that they would never make responsible economic decisions unless forced to do so by a constitutional amendment. While the debate was going on, I urged the new Republican majority, who were pushing the amendment, to say exactly how they were going to balance the budget. I had produced a budget less than a month into my term; they had been in control of Congress for nearly two months and had still not presented one. They were finding it difficult to transform their campaign rhetoric into specific recommendations. Soon, the Republicans offered a taste of the budget to come by proposing a package of cuts, called rescissions, in the current year’s budget. The cuts they chose proved that the Democrats had been right on target in their criticism of the contract during the campaign. The GOP rescissions included the elimination of 15,000 AmeriCorps positions, 1.2 million summer jobs for young people, and $1.7 billion in education funds, including nearly half of our drug-prevention funds, at a time when drug use among young people was still rising. Worst of all, they wanted to cut the school lunch program and WIC, the nutrition program for women, infants, and children under five, which, until then, had always had strong support from both Republicans and Democrats. The White House and the Democrats had a field day fighting those cuts.