Obama: We've fallen short in caring for vets

(CNN) -- Sen. Barack Obama said Thursday the country has "often fallen short" of caring for war veterans during the Bush administration.

Calling attention to the "deplorable conditions" at places like Fort Bragg and Walter Reed Army Medical Center, Obama said, "It doesn't have to be this way -- not in this country."

"There are many aspects of the war in Iraq that have gone inalterably wrong, but caring for our veterans is one thing that we can still get right," the Democratic presidential candidate said before a crowd in Fargo, North Dakota.

Earlier Thursday, he and Republican rival Sen. John McCain agreed that something must be done to combat the loss of jobs reported in June, but the two differed on how to address it.

McCain was wrapping up a three-day trip through Colombia and Mexico, where he focused on illegal drugs, immigration and free trade.

The senator from Arizona took a subtle shot at Obama, who has said he would amend the North American Free Trade Agreement if he were to become president. McCain said he was disappointed at any suggestion the United States should unilaterally reopen the agreement.

Meanwhile, Obama detailed his plan to "build a 21st century [Veterans Affairs department] as president."

"It means no more red tape -- it's time to give every service member electronic copies of medical and service records upon discharge. It means no more shortfalls -- we'll fully fund VA health care," he said.

"And it means we'll have a simple principle for veterans sleeping on our streets: zero tolerance for the conditions that permit them to be in those circumstances."

Obama said the country has called on troops and families for so much in recent years, "but we haven't always issued the call responsibly."

The Illinois senator said army deployments need to be restored to 12 months, and training between deployments must be improved.

Obama also stressed the importance of the GI Bill, which provides educational benefits for returning veterans.

Obama called on Americans to live "so that America will be proud us of," calling it the "true test of our patriotism."

In the lead-up to the Fourth of July, Obama has spent the week talking about some of the country's core values.

On Monday, he gave a speech about patriotism. He focused on faith and religion on Tuesday, and on Wednesday he turned his attention to service.

Obama will spend the holiday in Butte, Montana, campaigning with his family.

McCain met Thursday with Mexican President Felipe Calderon, wrapping up a trip that highlighted trade differences between the two leading presidential candidates. Watch how McCain is courting Latino voters »

McCain supports NAFTA, which took effect in 1994 and seeks to reduce barriers to trade between Mexico, Canada and the United States. Obama has vowed to amend the agreement if elected president.

"I am disappointed at the suggestion that the United States should unilaterally reopen NAFTA," McCain said Thursday. "If there are issues that exist between our countries -- whether it be the United States, Canada and Mexico, or other nations with whom we have engaged and ratified treaties -- the best way to do that is not in a unilateral fashion, but mutual respect of sovereignty of our respective nations."

Former Florida Gov. Jeb Bush, the brother of President Bush, met with McCain in Mexico City on Thursday to visit the Basilica of the Virgin of Guadalupe. Bush was in the city on business.

Bush, who was governor from 1999-2007, endorsed McCain's White House bid earlier this year after it was clear he would win the party's nomination. Bush did not endorse a candidate during the primary campaign.

A few reporters caught up with Bush while McCain was still in the Basilica.

"I think he's going to win," Bush said about McCain. "He just needs to be himself and not let Sen. Obama redefine himself."

McCain next week will turn his attention to the economy, with a series of events in key fall battleground states. The tour marks the first organized by his new campaign team. Read more about McCain's staff shake up

Obama and McCain weighed in Thursday after the Labor Department reported a net loss of 62,000 jobs in the month of June.

"The American people cannot afford an economic agenda that will take our country in the wrong direction and cost jobs," McCain said. "At a time when our small businesses need support from Washington, we cannot raise taxes, increase regulation and isolate ourselves from foreign markets."

But Obama said McCain was endorsing economic policies of the Bush administration that had led to the problems.

"The American people are paying the price for the failed economic policies of the past eight years, and we can't afford four more years of more of the same," he said.

McCain called for immediate tax relief for families, a plan to help those facing foreclosure, lower health care costs, investment in innovation, a move toward energy independence and opening more foreign markets to U.S. exports.

Obama proposed immediate relief with energy rebates for working families this summer, a fund to help families avoid foreclosure, extended benefits for the long-term jobless, and assistance to states that have been hard-hit by the economic downturn.

CNNMoney.com's Chris Isidore contributed to this report.

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