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[Public Correspondence, Oct 1992] [7]
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[Public Correspondence, Oct 1992] [7]
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Records of the White House Office of the Chief of Staff to the President (George H. W. Bush Administration)
James A. Baker III Files
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Originally Processed With FOIA(s):
FOIA Number:
2000-0715-F
2000-0715-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Chief of Staff, White House Office of
Series:
Baker, James A., III, Files
Subseries:
Public Correspondence Files
OA/ID Number:
93011
Folder ID Number:
93011-002
Folder Title:
[Public Correspondence, Oct 1992] [7]
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O
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THE WHITE HOUSE
NPN
WASHINGTON
October 19, 1992
Dear Mr. Schwarz:
This is just a brief note to thank you for the letter and
information of October 14, 1992 that you sent to me for review.
I have taken the liberty of forwarding your information to Mr.
Baker. I am sure someone from his staff will contact you.
Thank you for taking the time to write.
Margaret
Mayontal Sincerely, DeB. Tutwiler
Assistant to the President
for Communications
Mr. Karl W. Schwarz
Robert Thomas Securities, Inc.
10411 West Markham, Suite 330
Little Rock, AR 72205
Robert Kobert Thornas Thomas Securities, Inc.
October 14, 1992
Member NASD/SIPC
A wholly-owned subsidiary of
Raymond James Financial, Inc., (NYSE-RJF)
Ms. Margaret Tutwiler
West Wing, White House
1600 Pennsylvania Ave, NW
Washington, DC 20500
Dear Ms. Tutwiler:
We were asked by Nancy Jones of Roger Porter's office to send
this information to your attention to see that it gets to Mr.
Baker. The enclosed Capital Growth Stock proposal is an economic
stimulus plan that was developed in the private sector and takes a
little different approach to addressing the domestic economy, job
creation, and financing for creating American industry.
As indicated in the cover letter to Mr. Baker, this
information has been presented to Roger Porter's office and to
several persons in Bush Quayle '92. I am to have a conference call
next Tuesday with Mr. Joe Deoudes of the campaign staff to review
this subject further.
If you need any additional information, please feel free to
contact me at 800-874-4006. Thank you.
Sincerely,
Karl WSchwar
Karl W. Schwarz
KWS:slg
Encl:
10411 West Markham, Suite 330 Little Rock, AR 72205 (501) 223-2255 WATS 800 874-4006 Fax (501) 223-3027
Robert Robert Thomas Thomas Securities, Inc.
October 14, 1992
Member NASD/SIPC
A wholly-owned subsidiary of
Raymond James Financial, Inc., (NYSE RJF)
The Honorable James A. Baker, III
West Wing, White House
1600 Pennsylvania Ave, NW
Washington, DC 20500
RE: Domestic Economic Stimulus Plan
Dear Mr. Baker:
We were asked on October 13 to forward a copy of this economic
stimulus plan to your attention. We have previously submitted a
copy of this material to Mr. Roger Porter's office and to Mr. Jim
Pinkerton and Mr. Joe Deoudes of Bush Quayle '92.
The Executive Summary is an internal memorandum which has been
reviewed by executives of Smith Barney, Harris Upham & Company. I
am with the Little Rock office of Robert Thomas Securities which is
a wholly owned subsidiary of Raymond James Financial. This
internal memorandum should be read after the Capital Growth Stock
proposal since it is more of an open discussion of what steps the
private sector participants would take to implement such a plan.
Simply put, the CGS proposal is a private sector initiative to
change the way American industry attracts capital and creates jobs
and global competitiveness. If this concept is adopted, a team of
investment banking and industrial development experts would be
relocated to Washington, DC to implement the America 2000 Fund
which is discussed in both documents. This implementation would
include a focused lobbying effort from the private, state and
municipal level which would be directed at the U.S. Congress which
is viewed from our position as an impediment to progress.
We have taken this step for the simple reason that we want
President Bush to win this election. We want, as private citizens,
what is best and right for this nation. I know Bill Clinton
personally, and have never been able to consciously support him as
governor. I have extensive dealings with the issue of industrial
development in Arkansas and know firsthand that Bill Clinton is not
the impetus for job creation in this state. That honor goes to
Dave Harrington, Director of the Arkansas Industrial Development
Commission, who also is not supporting Governor Clinton in his
presidential bid.
This has become a dangerously close election due to the
10411 West Markham, Suite 330 Little Rock, AR 72205 (501) 223-2255 WATS 800 874-4006 Fax (501) 223-3027
The Honorable James A. Baker, III
page 2
condition of the domestic economy. Unfortunately, convincing the
American electorate that this is a global economic shake-out does
not hit close enough to home. We see in the polls more indications
of economic hurt and frustration than we see a true desire or need
for change. We also do not see Bill Clinton as a positive
instrument of change for the country. Governor Clinton once told
me that to win as a liberal Democrat, he was having to posture
himself as a conservative Democrat to the point of almost appearing
Republican. Since that day, I have always been able to recognize
him as the wolf in sheep's clothing that he truly represents.
It was from this concern that the CGS proposal was developed.
We work in the capital markets every day and see the need to re-
focus investment direction to produce true economic growth. A
clear, concise and workable job creation plan, that does not
require any new taxation, is needed. That was our design criteria
for the enclosed proposal.
If the enclosed plan is adoptable or compatible with the
objectives of President Bush and yourself, we stand ready to assist
your efforts to address the domestic economy issue. Our goal is to
form the America 2000 Fund, but you are welcome to use the key
elements of this concept in any manner that may be beneficial to
the election cause. If you require additional information to
assess this proposal, we will supply such on your request. The
following are the three telephone numbers of the principal authors
and supporters of this proposal. Karl W. Schwarz, 800-874-4006.
Robert B. Webb, 703-641-4248. Mr. Theodore P. Swick, Smith Barney,
212-698-3166.
Thank you for your time and consideration.
Sincerely,
Karl Wxchwar
Karl W. Schwarz
KWS:slg
Encl:
CAPITAL GROWTH STOCK CERTIFICATES
A Proposal to Create Economic Growth
Through Linking the Capital Markets and
A Federally Legislated Tax Incentives Package
September 15, 1992
Executive Summary
This proposal is divided into the three following sections:
Section One - Public Sector Response
outlines the
proposed method of stimulating the U.S. economy and describes in
general terms what legislative steps would need to be taken to
modify the U.S. Tax Code and other federal legislative acts to
facilitate that objective.
Section Two - Public & Private Sector Dislocation
addresses a private sector viewpoint as to what the general
problems are that are creating a dislocation between a stable
economic growth, tax policy, revenue stabilization, and
developmental capital.
Section Three - Private Sector Response
describes how the
private sector and capital markets could respond to this proposed
tax legislation to provide a much needed boost to the recovery of
the U.S. economy.
This is a proposal to "jump start" the United States economy
by creating a facility for new direct investment into domestic
businesses and job creation. The facility would be a combination
of tax incentives that would be incorporated into a securities
instrument specifically designed to unite the volume capacities and
efficiencies of the capital markets and the tax code treatment of
capital gains.
It is proposed that this legislation be enacted early in 1992
and have a definite term of five years, with certain portions of
the package carrying forward into the future as ongoing investment
and capital formation incentives. The extension of the legislative
package beyond that point should be based on need and market
conditions over the next five years, and cost versus benefits with
respect to GNP growth, revenue impact, employment stabilization,
and other factors for weighing the benefits of any legislation.
This is a market driven technique which utilizes the existing
tax code concepts of "capital gains", "tax free exchange",
"industrial development bonds", "small business stock", "interest
expense", and "R&D investment credit", and relies upon
participation by state and local "Economic Development Authorities"
to direct debt and equity investment into new economic development
projects and to reward that investment by affording direct tax
advantages.
In addressing the need for economic growth, job creation, and
stability, this proposal addresses both the "equity" and the "debt"
side of the problems facing economic recovery at this time. In
terms of getting any project funded, the problem has always been
"Is there enough equity?", and "Can the project be funded at low
enough interest rates?" in order for the project to be feasible.
It is intended that this plan be implemented to re-focus the need
for investment and capital formation as being the foundation for
long term economic stability and soundness.
In light of the present "credit crunch" with respect to
traditional lending sources, i.e. S&L's, insurance companies,
commercial banks, pension funds, and the capital markets, this
proposal puts forth a plan to join virtually all sources of debt
and equity capital into a unified force for present and long term
economic development.
A New Means for Economic Growth
The tax code would be amended to define a new type of capital
asset, termed "Capital Growth Stock" or "CGS Certificates". To
qualify as Capital Growth Stock, an investment would have to be
original issue "equity" where the proceeds of the offering are to
be used in economic development projects. The guidelines for
permissible investments and uses of proceeds would be patterned
upon prior guidelines which existed for industrial development
bonds, and to qualify for CGS Certificate status the equity
offering would be subject to a state or local review and approval
process similar to that used for development bond approvals. The
pre-existing network of state and local economic development
agencies would provide a ready made structure to oversee and
prevent abuses.
Section One - Public Sector Response
1.1 Tax Incentives
The following tax incentives would be available to promote
investment into Capital Growth Stock.
(1) Capital Gains Tax - the gain upon the sale of Capital
Growth Stock would be taxed at a lower rate of 15% as capital gain
provided the CGS Certificates were held for a minimum term of 5
years.
(2) Dividends paid on CGS Certificates during the mandatory
hold period of five years would be exempted from taxation provided
that such dividends are reinvested into the pooled funds. Those
dividends that are taken out of the pooled funds each year would
fall under normal taxation guidelines similar to existing IRA
penalties for early withdrawal. Ultimately, all original
investments and reinvested dividends would come out of the funds
and be taxed on the special capital gains tax rate afforded to
2
investors in such funds.
(3) Tax Free Exchange - To provide the spark that encourages
a rapid flow of capital into Capital Growth Stock funds, for a two
year period from the date of enactment of legislation, the gain
upon the sale of any existing capital asset would be eligible for
tax-free exchange treatment to the extent that the proceeds were
reinvested into CGS Certificates within 6 months of the sale. This
would in effect give "like kind" treatment to the sale of non-
related capital assets and divert large increments of capital from
those funds into the capital markets for domestic investment and
economic growth. For a period of two to five years, the CGS
program should become a major asset management tool.
(4) Interest Deduction - To encourage growing businesses to
seek equity rather than debt, the dividends paid upon CGS
Certificates would be deductible to the business in the same manner
as interest expense.
(5) Small Business Stock - Capital Growth Stock would be
treated as Small Business stock under the tax code, thus affording
favorable loss treatment for the first $1,000,000 of investment
into small businesses.
(6.) R&D Investment Credits - The legislation could emphasize
R&D investments in areas where technology flight, key and strategic
industries, and/or emerging technologies could be developed during
the term of this proposed legislation. It is suggested that
certain strategic industries, such as foreign manufacturers of key
Department of Defense contracts, be strongly encouraged to take
advantage of this financing technique whereby key components of our
defense system would be manufactured in the U.S. in lieu of foreign
sources.
At the end of the mandatory five year hold period, several
events would occur. First, existing corporations would convert the
CGS Certificates into common, convertible and preferred stock. It
is conceivable that many of these CGS offerings would originate as
convertible preferred types of issues. Secondly, many privately
held firms, whether start up or existing, would convert to publicly
held corporations. The CGS concept could be carried forward beyond
the five year period as a much needed haven for firms that are
struggling due to domestic and foreign competition, profitability,
or other economic factors. This "haven" technique could be
implemented in favor of tariffs as a means for remaining
competitive both in domestic and international markets.
In essence, in five years the CGS funded pools would split
into two classes with those firms that are profitable and stable
converting to other debt and equity funding techniques, and those
firms that are struggling would remain as CGS classified finance
structures. If economic conditions warrant, the CGS legislation
3
could then be renewed on an annualized basis.
After the first five year plan, it is recommended that the CGS
legislation immediately convert into a continued funding technique
for qualified small business concerns with annual sales and
employment being two considerations that would determine the cut
off point for eligibility. Those investors who continue their
commitment to contribute to small business offerings, R&D
investments, and other qualified offerings would continue to
receive the form of tax incentives as described above in subsection
1.1.
1.2 Other Tax Code Considerations
To facilitate the assemblage and investment of funds in the
capital markets, mutual funds and similar investment pools would be
permitted to "pass through" the tax advantages to their investors.
This would facilitate the rapid flow of funds and would allow
investors to diversify by investing in a "pool", and thereby
spreading risk. For example, the joint venture team submitting
this proposal plans to implement a major clearinghouse fund for CGS
Certificates. This group would act as an intermediary between the
capital markets and the bond issuance authorities to have a ready
source of capital to fund qualified projects. Such a fund would be
far more responsive to small and mid-sized offerings than
attempting to come into the capital markets one project at a time
seeking funding.
Revenue impact to the U.S. Treasury could be controlled either
by adjusting the tax rate on Capital Growth Stock, or as was done
with industrial development bonds and is now done with certain tax
credits, placing dollar volume caps upon the aggregate annual
amounts of Capital Growth Stock which each state can approve.
Dollar caps would also encourage state and local scrutiny since
each jurisdiction would have incentive to approve those offerings
with the greatest local economic development potential. Although
dollar volume caps may be the best method of limiting revenue
impact, it is suggested that such caps be more far more liberal
than the existing volume limitations placed on tax exempt bonds,
and be considered in light of "cost versus benefits", and "cost
versus need" basis.
It may be desirable to ease or create special exemptions to
Securities and Exchange regulations for offerings of Capital Growth
Stock since state and local review and approval of offerings will
generally weed out poor or fraudulent schemes. It is proposed that
each local authority will retain Investment Advisory services to
assist in the initial application and review process as most local
authorities are not staffed to adequately review such offerings.
1.3 Fine Tuning the System
4
1.3.1 Five Year Revision of IDB regulations.
It is recommended that the existing regulations for Industrial
Development Bonds ("IDB's") be temporarily liberalized in the
following manner:
A.) A manufacturing exemption that increases the $10.0
million small issue limitation to $50.0 million with the federal
legislation immediately overriding any local and state acts for
limiting the size of tax-exempt IBD's.
B.) Reinstate Accelerated Cost Recovery ("ACRS") on
manufacturing equipment while maintaining the straight line
depreciation method on real estate facilities. The ACRS
reinstatement should emphasize modernization where such actions
could increase the viability and competitiveness of American firms
while maintaining employment retention.
C.) The application of ACRS should be shortened to optional
1, 2, 3, and 5 year ACRS elections based on the needs of the
manufacturing firm to maximize stability and employment.
1.3.2 Absorption of Federally Held Real Estate
This proposed legislation should be enacted in a manner that
would address other economic and federal budgetary problems in a
curative way. This legislation could provide a valuable source of
buyers for the acquisition of Real Estate Owned properties from the
Federal Deposit Insurance Corporation and the Resolution Trust
Corporation. This group of buyers would not be highly motivated to
act as vulture funds which purchase real estate assets at low cost
regardless of present and long term effect to the taxpayers. Those
firms that assimilate such acquisitions into the expansion plans
under this program, whether existing facilities or raw land, should
be granted a special depreciation allowance where the
manufacturing, service, or high technology firm is the sole or
majority tenant of the facility and not acquiring that property as
a lease or rental property.
Such "buyers" of FDIC and RTC held real estate would be
granted an exemption from the state and local review process. The
investment banking firms representing such offerings are capable of
performing the necessary analysis and due diligence required to
comply with the new legislation. The stock issuance could be
either open market or through several of the local authorities
which have the capability to issue on a national basis.
1.3.3 Absorption of Real Estate Held by Banks and Thrifts
This program would also exempt from local and state approvals
those firms who purchase non-performing real estate assets from
struggling banks and thrifts. The continued problems in the real
5
estate industry have created a large inventory of non-performing
assets held not only by the regulatory agencies, but also by
struggling commercial banks and thrifts. This legislation could
also emphasize the acquisition of such properties as a "first
choice" before approving funding for new facilities. The
availability of suitable existing facilities will vary from state
to state with such reviews best handled by local bond issuance
authorities and economic development agencies.
By absorbing a large portion of the standing inventories of
commercial office buildings, warehouse, distribution and R&D
facilities, and miscellaneous existing manufacturing properties
which have become non-performing assets, the banks and thrifts will
be in a better position to resume lending operations. The
"liquidity crunch" brought on by the "credit crunch" will have a
legitimate reason to subside with the standing inventories of non-
performing assets being absorbed by this program. This would
readjust the capital versus liquidity positions of the banks and
thrifts where they could again be active and viable lenders.
The mandate to acquire existing facilities where possible
would have the dual effect of lessening the lending squeeze that is
hindering economic recovery, and at the same time will lessen the
present and future cost to the federal government of effecting the
bank and thrift workouts due to the massive increase in failed real
estate projects. This program would generate real growth to absorb
a considerable portion of the oversupply in real estate projects
that were built with little real GNP, employment, or population
growth present as real demand factors.
It may be beneficial to re-visit certain portions of FIRREA
(Financial Institutions Recovery, Reform, and Enforcement Act of
1989, H.R. 1278) or any regulations that were promulgated from this
act to coordinate this previously non-existent source of assistance
for the recovery of the financial institutions. With the removal
of considerable amounts of non-performing real estate assets from
the regulatory agencies and those banks and thrifts which have not
failed but are struggling, this source of non-regulatory assistance
for the bank and thrift crisis could rapidly lessen the cost to the
taxpayers, both in the form of failed institutions and those which
may fail over the next five years due to the lingering problems
that exist at this time.
This provision could also be applied to insurance, pension
funds, and other non-banking financial institutions who are also
holding considerable amounts of non-performing commercial office
buildings, warehouse, distribution, and R&D facilities. The
mandate here would be that the buildings be assimilated into a
viable and approved business finance offering under the CGS
program.
Private investors holding such non-performing assets could
6
dispose of those assets at a fair price by selling them to approved
CGS offerings, taking the "tax free exchange" option in the
legislation, and in effect revising their investment portfolio.
1.3.4 Offering Size Limitations
The legislation would not limit the size of the issues
permissible for CGS Certificates, nor would it limit the size of
the corporations eligible for this financing technique. For
example, General Motors could create a new class of stock under the
CGS legislation, build or modernize a facility within the U.S., and
could possibly fund the total operation through debt (IDB's) and
equity (CGS Certificates).
1.3.5 Securities and Exchange Commission Rule 144 (a)
The CGS Certificate instrument should be particularly
attractive to large investors in that the tax benefits could be
structured as pass throughs from the originator, to the pooled
fund, and then to the investor as a qualified 144 (a) private
placement. The ability of the proposed fund to market original
issues, and re-market such private placements could be facilitated
under the existing Rule 144 (a) guidelines. This feature could also
be incorporated into the marketing strategies for attracting
capital out of the large mutual funds for investment into this
program.
It is anticipated that insurance companies would be
considerable sources for private placement of CGS Certificate
offerings. However, the current downturn in the real estate
markets has negatively affected many insurance companies in the
same manner as it has the bank and thrift institutions. It is
proposed that this legislation allow for internal tax advantaged
swaps whereby an insurance company could accept a private
placement, dispose of a non-performing asset as part of the
transaction, and improve the liquidity through favored cost
recovery on the non-performing real estate asset.
Section 2 - Public - Private Sector Dislocation
2.1 FIRREA
The existence of FIRREA is now recognized to be a financial
legislative act which has had a profound impact on the nation's
banks and thrifts, and at the same has tightened credit
availability that has exacerbated the recession. The mounting
problems in the real estate industry, both for oversupply, poorly
conceived projects which should have never been funded, and from
the recession effects, has made commercial credit for economic
recovery virtually non-existent. If the CGS program can be
7
implemented in such a manner to remove much of the non-performing
real estate, banks and thrifts should be encourage by the
regulatory agencies to loosen credit in those market areas where
they can have the most impact.
It is not proposed that the CGS legislation would in any way
loosen the restrictions on real estate lending for banks and
thrifts. However, there will be a continuing need for revolving
credit, fixed asset lending, interim construction funds, and lease
financing which are normal bank lending activities. As the real
estate problem is diminished, it will be necessary for the banks to
resume lending to assist in the overall effectiveness of this
program and the economic recovery as a whole.
It is not recommended that CGS Certificates be classified as
bank and thrift qualified investments. It would be more preferable
in the long run if the CGS Certificate program could be implemented
to lessen the bank and thrift problems both in the private and
public sector. It would also be more preferable for the banks to
fill the lending gaps that are not addressed in this program such
as the availability of normal short term business and consumer
credit.
The objective of containing the cost of the bank and thrift
crisis has had a direct impact on the availability of business
credit needed to pull out of this economic slump. This program
would support a lessening of lending restrictions that would work
in tandem with the effects of the CGS program in decreasing the
burden of non-performing real estate. The bank and thrift
institutions will have a key role in this economic recovery, and
the CGS program could be implemented to allow for that role to be
realized without jeopardizing the integrity of the lending
institutions.
2.2 U.S. Tax Code
The Tax Act of 1986 removed many of the tax incentives that
are needed to drive industry and employment growth. In the 1980's,
federal revenues and the gross national product both grew at a 7.2%
compounded annual rate. Federal spending raced ahead at 7.8%.
Worse still, from 1980 to 1990, mandated expenditures careened at
a 9.1% compounded annual rate, without factoring the long range
cost of the bank and thrift bailout. This cannot be sustained
without jeopardizing the future living standards of the entire
population.
An unforeseen, yet devastating effect of the 1986 Act was the
removing of tax shelter incentives for real estate on a future and
retroactive basis, which directly contributed to most of the
failures of developers, banks, thrifts, and other financial related
firms where such failures are directly attributable to the problems
stemming from real estate development and the mounting volume of
8
non-performing real estate assets. Without investment incentive,
much of the capital that was driving that market was transferred to
other forms of transfer payments and capital gains producing
investments that do little to create jobs and economic growth over
a broad sector of the market. At the same time, tax policy since
the 1986 Act has led to an overall softening of tax revenue growth
as a percentage of real GNP growth.
The current tax policy discourages most types of investment
which produce employment, stable economic growth, and produce a
private sector stability which is compatible with the growth of
federal revenues and expenditures.
At the same time, the desirability of effecting the Gramm-
Rudman provisions for a balanced federal budget is and remains a
desirable objective. However, the sheer magnitude of cost for the
bank and thrift crisis has exacerbated the ability to realize that
objective. The recession, and the attendant increases in
unemployment benefits and welfare payouts to an unemployed portion
of the population have also compounded the federal budgetary
process. The CGS Certificate concept would reconnect investment
incentive in such a way that much of the non-performing real estate
would be absorbed, much of the problems in the bank and thrift
crisis would be lessened, and investment incentive would be focused
on those types of investments that drive GNP growth which also is
the root source that drives revenues for local, state and federal
governments alike.
It is anticipated that the issue of revenue impact will be
heavily considered in this proposed legislation. On the one hand,
revenues loss will have to be considered in light of the boost that
will be given to employment over the short and medium term, and to
manufacturing and service industry output over the same period. It
will also be necessary to weigh this proposal in light of the tax
revenues saved by lessening the cost of the bank and thrift crisis,
and the current levels of unemployment benefits which can start
reducing quickly as this program focuses on employment. A final
consideration would be the additional tax revenues that would be
generated from an employment picture far more favorable than at
present. The goal has always been a full employment economy which
is an unattainable objective with tax policies that drive capital
investment away from those areas that create the greatest portions
of our employment and economic stability.
Section Three - Private Sector Response
The following is a general discussion about proposed federal
legislation that would create a specialized securities market to
stimulate the recovery and growth of the U.S. economy. The
9
creation of such legislation is of great interest to the investment
banking and securities industry as it would provide an opportunity
to stimulate economic growth and recovery of the U.S. economy while
at the same time providing significant revenue opportunities for
firms underwriting such stock issues and those managing large
pooled funds which would be initiated specifically to serve the
market created by such legislation.
This preliminary draft in no way covers all of the
considerations, but does attempt to address several of the more
critical issues from which will arise the greatest opportunities.
As of the date of this memorandum, it is proposed that the
authors of this proposal would joint venture in the formation and
implementation of a major pooled fund to facilitate the CGS
Certificate market. It is proposed that a major base of operations
would be established in the Washington, D.C. area.
3.1 The America 2000 Fund
The proposed fund would function along the lines of a very
large mutual fund and act i.) as a direct facilitator in the
underwriting and issuance for pooled fund investors, and ii.) as a
purchaser and re-marketing agent for CGS Certificate issuers
originated the local and state level, and iii.) as a market maker
in the secondary markets which are discussed below. Potentially,
this joint venture could operate as a new market virtually
independent of the existing markets due to the unique tax status
that would be afforded to CGS investors. It is proposed that this
joint venture would be the connecting link between the originators
of CGS Certificate issues at the state and local level and the
capital markets, institutional and small investors.
3.2 The Opportunity
With knowledge of this pending legislation, it will be
possible for the participants of this proposed joint venture to lay
the groundwork over the next six to nine months for creating and
implementing a major pooled fund that would act as a facilitator
for CGS Certificate issues originating at the state and local
levels. It is anticipated that the transaction sizes for such
issues will range from the very small issues of $1.0 million and
less to larger pooled issues that could range upwards to $500.0
million and larger for major new corporate investments.
Since the legislation would not prohibit larger private and
public corporations from creating a new class of stock and funding
expansion projects through the CGS legislation, total fundings over
the next two to three years could be considerable. The primary
issue from any CGS issue would be job creation and re-infusion of
development capital for both the near and long term benefits.
10
It is anticipated that some offerings that complete the local
or state review process may be flawed, inferior, or otherwise be
offerings that this proposed fund will not wish to undertake.
There would be no commitment for the proposed fund to acquire
offerings as they are originated at the local levels. On the other
hand, a significant opportunity exists to participate in key and
strategic expansions in industries since the CGS Certificate
program would treat the investments as equity. In the near and
medium term, this program may prevent technology flight as sources
of venture and investment capital investment have declined in this
country over the past five years.
In summation, the opportunity for near and medium term
activities would be considerable with the tax benefits that would
be included in the proposed legislation.
3.3 Mutual Funds
It is anticipated that Mutual Funds would be major
participants in the proposed pooled fund, and some mutual funds may
be direct competitors to the new fund proposed herein. However, it
is not anticipated that mutual funds would become major factors in
origination, securities transactions, and secondary markets except
for the purchase and sale of the securities. A joint venture such
as that proposed would be far more effective and staffed at this
time to undertake such a proposal.
3.4 Pension Funds
Since most pension funds enjoy tax exemption under ERISA
regulations, it is not anticipated that pension funds would be
major competitors in this market on a direct tax shelter need
basis. It is anticipated that pension funds could become major
purchasers of such securities on a diversification basis within
their own guidelines where such tax shelter "pass through" may be
allowed by the new legislation.
Pension Funds that are diversified into real estate may be
viable markets for those matters discussed under Real Estate.
3.5 Insurance Companies
It is anticipated that insurance companies will fall into
three basic categories with respect to this proposal. First, would
be as clients to the proposed fund for direct investment and as
private placement sources. These firms typically would utilize the
investment strategies that could arise out of the program to
enhance their overall profitability. A large insurance company
with a securities subsidiary, such as Prudential Life Insurance,
may become a significant competitor. Secondly, a considerable
number of insurance companies are experiencing financial
11
difficulties brought on by the downturn in the real estate market
and the secondary effects of lease rates which have deteriorated
the stability of GIC offerings that were made years ago during a
boom cycle in the markets. An insurance company that would fit
this circumstance would be Equitable Life which has experienced
failure of GIC and non-performing real estate loans that were
funded from general accounts. The third category of insurance
company client would be those firms that have experience massive
failures in the amount of commercial, retail, R&D and industrial
real estate they now hold as non-performing assets such as USF&G.
3.6 Banks and Thrifts
It is not anticipated that this investment would be considered
by the regulatory agencies to be qualified bank and thrift
investments due to their liquidity, term, and the rating of the
instruments.
The primary benefit to banks and thrifts which would arise
from such a program would generally fall into two categories.
First, this program would largely displace the banks and thrifts in
the area of fixed asset lending where such lending is geared more
for growth and expansion in the near term than for profitability.
Such loans are numerous, hobble the borrowers with debt loads that
seriously hinder growth, and represent loans that are hard to
monitor and perform credit on as to protecting future performance.
This lending activity should decline as long as the CGS program is
in existence which would take lending possibilities away from
banks, and on the other hand would free up capital to lend into
other areas of the economy which are also in serious need of
liquidity at this time.
Another major benefit to banks and thrifts would be the
emphasis by this program on absorbing the standing inventories of
non-performing real estate loans for commercial office, large
retail spaces, R&D, warehouse, distribution centers, and industrial
facilities which are at present non-performing loans and awaiting
a recovery of the domestic market. This program would over a short
time create a considerable number of "buyers" for such distressed
properties who have a need for the space in an expansion minded
mode and with available capital coming from the capital markets to
drive such an expansion.
3.7 Non-Banking Financial Institutions
It is not certain at this time that the final form of the
legislation would allow for tax shelter pass through for large
corporations. It should allow for such pass through for small to
medium sized firms, with the larger corporations being considered
as one way of limiting the revenue impact of this type of
legislation. In the event that tax benefit pass throughs are
allowed, even if short term, larger non-banking financial sources
12
like GECC, Westinghouse Credit, and possibly even firms that fit
the definition of diversified financial holding companies might be
valuable sources for direct investment into this proposed market
where they have no significant presence at this time.
3.8 Real Estate
It is anticipated that the U.S. Treasury would view such
legislation in light of the revenue impact. There are several
considerations to be taken into account in such a review. First,
the cost of the bank and thrift crisis has placed an unprecedented
peace time burden on the Treasury. It is anticipated that CGS
legislation will include provisions that incorporate preferences to
those firms who acquire and utilize existing facilities that are
impacting the cost of the bank and thrift crisis resolution. This
would basically include for the ability to structure the cost of
acquiring existing facilities to house business operations into the
transactions.
Secondly, where those acquisitions lessen the cost of the bank
and thrift workout, or where those facility acquisitions are from
struggling banks and thrifts which may fail due to rising non-
performing loan portfolios, the Treasury would be viewing the loss
of a revenue dollar versus the need to raise money to resolve the
bank and thrift crisis. It is anticipated that such legislation
will heavily favor those firms that acquire existing surplus
facilities where such acquisitions lessens the present and future
cost to the Treasury as it pertains to the bank and thrift problem.
That trade off area alone represents a considerable savings to the
U.S. Treasury as a direct and indirect result of this proposal.
In those instances where new or specialized facilities would
have to be built, those projects would provide a much needed boost
to the local construction and supply industries and a source of
development capital that has dried up due to the bank and thrift
crisis and the side affects which have impacted virtually every
lending and investment source.
One of the critical missing elements in the bank and thrift
workout has been a ready and motivated supply of real estate
buyers. This legislation would provide motivated buyers who could
absorb a considerable portion of the standing inventory that is
negatively impacting the markets at this time. It is felt that
this legislation would and should favor single user tenants instead
of allowing purchase of real estate to be leased to non-
participating parties.
It might also be possible to structure transactions whereby a
pension fund became a partial CGS holder of the real estate portion
of the transaction, and other tax shelter benefits were sold off on
a "pass through" basis to other investors if the final form of the
legislation allows such pass throughs to third party or non-related
13
parties to the transactions.
Summation
There is a critical need to get the U.S. economy moving for
the near, medium and long term. A beneficial treatment for
taxation, when targeted right at the heart of the problem, should
provide for massive amounts of funding where there now exists a
liquidity and a credit crunch. This program should slow down the
volatility of capital gains type investments that are made only for
the purpose of short term gain, such as the stock market or short
term hold periods of Treasury bills and bonds and mortgage backed
securities where such investments are bought low and traded at
market peaks. This type of investment activity creates profits but
does little in the way of increasing jobs and diversified economic
growth.
It is anticipated that this direct investment strategy with
tax incentives would fit strategic and emerging industries, as well
as providing development capital for natural resources, services,
support and certain market sectors where the recession and the
tightening of credit due to the bank and thrift crisis has brought
certain market sectors to a virtual standstill in terms of real
growth. Certain other market sectors, such as architectural,
engineering, construction, and related manufacturing and supply
firms, would directly benefit from such a program without
participating directly in the CGS offerings.
The proposed base of operations being in Washington, D.C. is
for several strategic reasons. First, in the metropolitan D.C.
area is based a quasi public-private entity which has national bond
issuance authority which could facilitate exempted CGS (equity) and
IDB (debt) offerings. This entity would either be merged or
affiliated with the America 2000 Fund as a major originator of
those CGS and IDB offerings exempted from the state and local
approval process. Secondly, since this program is intended to have
national implications and effects, telecommunications,
transportation, the availability of a highly skilled technical work
force, and proximity to both the District of Columbia and New York
City are major considerations. Lastly, the office would serve as
a direct liaison between the public (federal) and private sector in
implementing this proposal.
The America 2000 Fund, as designed, would be a clearinghouse
for the purchase and resale of CGS Certificates as a facilitator of
tax benefit pass throughs, a market maker in SEC Rule 144 (a)
private placements on both the sale and buy side, and an
underwriter\originator of IDB and CGS offerings exempted from the
local and state approval process due to the purchases of non-
performing real estate assets either from the FDIC, RTC or from
14
banks and thrifts whose capital base has been depleted by non-
performing real estate assets. In assembling a major direct
investment source, The America 2000 Fund would directly sell tax
shelter benefits to insurance companies, mutual funds, large
private and institutional investors under the "tax free exchange"
portion of the CGS and IDB legislation, and assemble those funds
for direct investment as the approvals are forthcoming from the
local and state levels. This pooled approach would spread the
investor risk as it is certain that some of the offerings will fail
over the first five years of the plan.
+++++
This Executive Summary was drafted by Mr. Robert W. Webb, a
partner in the law firm of Hazel & Thomas, PC of Falls Church,
Virginia (703-641-4248) and Karl W. Schwarz (501-223-2255).
15
Executive Summary
America 2000 Fund
Washington, D.C.
The Opportunity
On September 22, 1992, a domestic economic stimulus plan was
presented to officials of the Bush - Quayle '92 campaign. The plan
proposes to ignite the U.S. job development effort with strategic
revisions to the U.S. Tax Code and merging that with the capital
markets and IDB underwriting capabilities of the investment banking
industry. The goal of the program is to create new industry,
businesses and jobs, and most of the objectives of the proposal
appear to be compatible with the economic objective statements
surfacing in the present campaign.
This new legislation would initiate a massive increase in new
IDB type underwritings specifically tailored to take advantage of
the new tax benefits. From that opportunity will come increases in
the normal securities and investment banking activities of
virtually all underwriting firms. However, there will exist a
unique opportunity for one or more investment banking firms to join
in the creation of a new type of fund specifically designed to
serve the tax shelter and tax benefit pass through opportunities of
the new legislation. This second opportunity is the primary focus
of this proposal, and the reason for forming the American 2000
Fund.
This summary proposes that Smith Barney, Harris Upham &
Company, and possibly other investment banking firms as partners,
jointly create such a fund in conjunction with the designers of the
CGS program. The America 2000 Fund (the "Fund") would be funded by
Smith Barney and possibly others, and independently managed as a
separate entity. The initial funding required to start up the Fund
would be recovered through fees for services provided by Smith
Barney as underwriter to the Fund. In addition to underwriting
fees from the Initial Public Offering, Smith Barney would also
produce fee revenues from ongoing services provided to the Fund
which are described below.
The major difference in these new underwritings would be a
revision to the Internal Revenue Code to create a new type of
equity offering called Capital Growth Stock Certificates, or "CGS".
For a more detailed presentation on this subject, see attached
"Capital Growth Stock Certificates" proposal.
The America 2000 Fund would operate much like a mutual fund
and make direct tax sheltered investments into a wide variety of
CGS qualified projects. In short, the Fund would make equity
investments into selected debt offerings originated by Smith Barney
and other underwriting firms where such projects qualify as CGS
offerings under this new and specialized economic stimulus plan.
The Fund would be capitalized by the public offering of tax
shelter benefits created by the new federal tax legislation. It is
planned that the underwriter - client relationship between Smith
Barney and the Fund would produce fees far in excess of start up
costs. In addition to being a major source of fee revenues, the
Fund would also be a facilitator of new underwritings as an
investor using the CGS concept equity/tax shelter investment.
After initial start up, the Fund would be self sustaining due
to revenues produced by the assets, yield on investments, and
service fees charged to fund investors.
Limited Knowledge
This proposal has been presented first to Smith Barney, Harris
Upham and Company for consideration of funding. One of the
principal designers of the CGS plan is with Robert Thomas
Securities, a wholly owned subsidiary of Raymond James Financial.
However, there is no explicit involvement of Raymond James or any
of its subsidiaries at this time. Outside of those parties looking
at this proposal, knowledge of this matter is limited to the
authors and several contributors to the subject matter in the CGS
proposal, and a few persons of the Bush - Quayle campaign and White
House staff.
The closely held nature of this information would give a three
(3) to six (6) month lead time advantage on reaching the market
ahead of competitors trying to create similar tax benefit funds,
and seeking IDB underwritings at the state and local level that
would be spawned by this legislation. If the Fund and the
necessary lead time costs to successfully lobby this effort are
approved for funding, it is recommended that Smith Barney and the
Fund would begin an immediate "quiet" marketing effort at the local
and state level well in advance of competitors seeking to secure
IDB underwritings under this new legislation.
Initial Public Offering of the American 2000 Fund
The CGS program designers would retain Smith Barney, Harris
Upham & Company as senior underwriter for the IPO of the America
2000 Fund. It is planned that the IPO would have no size
limitation and would attempt to attract as much capital as possible
under the tax shelter opportunity included in the legislation.
These funds would be targeted for later investment as CGS equity
into debt offerings created under the new legislation.
Asset Management
Due to the management and investment focus of the Fund, asset
management of the funds raised by the America 2000 Fund IPO would
remain with Smith Barney, Harris Upham & Company until such funds
are invested into new IDB offerings.
Direct Investment into Exempted IDB Offerings
Under the new tax benefit legislation, the primary source for
new IDB offerings that qualify under the CGS guidelines would be
state and local bond issuance authorities. The proposed
legislation would also provide for exemptions from the local and
state bond approval process for which the America 2000 Fund would
be uniquely positioned to be not only an equity investor, but also
an originator of exempted bond issues. These exempted bond issues
would be underwritten by Smith Barney and would provide an almost
exclusive source of new underwriting revenues.
The Fund, through seeking investment opportunities nationally,
would act as a marketing resource for the underwriters. The Fund,
by it's existence and indirect relationship to Smith Barney, would
be a major "CGS equity" investor into underwritings of Smith
Barney, and of competitor firms.
Coordinated Marketing
It is proposed that the marketing effort to secure a
substantial portion of this new business would be coordinated
between Smith Barney and the Fund. The primary benefit to be
derived by the underwriter is the initial IPO of the Fund, asset
management for the Fund, and an ongoing program of Fund investments
into underwritings created by Smith Barney under this new tax
legislation.
Another benefit of coordinated marketing would be that both
the Fund and the underwriters will need to solicit the assistance
and support of state and local bond issuance authorities, national
associations such as National Association of State Development
Agencies, Government Finance Officers Association, etc., prior to
and following enactment and implementation of new tax legislation.
It is proposed that the underwriters and Fund sponsors would be
active in generating national, state and local support for this new
legislative proposal.
Conversion of America 2000 Fund Companies to Publicly Held
The CGS legislation would provide that the more successful
firms that are created or expanded under this tax benefit
legislation would have to convert to other forms of debt structure
shortly after the five year life of the tax legislation. It is
anticipated that many of these conversions would be jointly worked
out between the company, the America 2000 Fund and the underwriters
as private placements and IPOs. The Fund would refer such
conversions to Smith Barney for those firms in which the Fund has
made CGS equity investments.
Future Debt and Equity Offerings of America 2000 Fund Companies
It is anticipated that some of the firms which the Fund has
substantial equity investment in, will be back in the market place
seeking additional debt and equity offerings due to growth that is
much larger than anticipated. These firms would be referred to
Smith Barney by the Fund for additional needed services.
Summary
The enclosed Projection of Operating Expenses is based on
monthly and annual costs to start up the Fund. The projected
employment figures do not project the number of additional analyst,
technical staff, and other support staff that would be required as
the amount of capital raised for the Fund, and the number of direct
investments increases over the next five years. The start up phase
anticipates that direct investment from investment banking or
securities partners may be required for the next six to twelve
months.
The initial staffing is geared towards implementing the Fund
objectives, marketing nationally to locate the best investments for
the Fund, and working with agencies, associations, and other groups
for support of the new legislative approach to industrial
development and job creation. The staffing requirements can be
implemented in phases over the first six to nine months as the IPO
is funded and implemented.
It is proposed that Smith Barney, and possibly others, would
fund $500,000 for exclusive rights as underwriters of the CGS plan.
In addition, there will be a need for additional funding on a
monthly basis until the IPO funds are available to cover expenses.
Prior to full operation of the Fund, the management and support
staff would primarily be involved in generating support for the new
legislation, and making plans to implement the Fund objectives.
All of the start up and implementation costs would be reimbursed
from the American 2000 IPO as a separate expense from the fee
arrangement between the Fund and the underwriters.
In addition to this initial funding, Karl W. Schwarz as the
principal author of the CGS plan, would take immediate steps to
initiate the CGS plan and the pre-operation steps needed to set up
and manage the Fund. These steps would include relocation to
Washington, D.C. to concentrate specifically on the marketing and
start up steps needed to generate support for the legislation,
start up of the Fund, and preliminary planning to operate and
manage the Fund. In addition to Mr. Schwarz, an immediate
management and support staff of nine persons would be deployed on
this effort.
NRN
Colonel Gilbert A. Robertson
friend?
United Sates Air Force, Rt'd
13910 South 226 Circle
Gretna, NE 68028
(402) 332-4744
by phone.
October 15, 1992
Jim Baker
Chief of Staff
1600 Pennsylvania Avenue NW
Washington, DC 20500
Dear Jim:
Enclosed is a copy of a letter I wrote to President Bush (for
your information.)
In addition, last night we saw a PBS presentation on the Cuban
Missile Crisis. During that crisis I was a pilot on alert and
spent 30 out of 45 days in the alert shack waiting to go to
war. The thing that I noticed during the program was that we
really had a bunch of amateurs running the show. It was pure
luck that we didn't go to war.
If Clinton is elected and there is a similar crisis we will
again have a bunch of amateurs, including a draft dodger,
running the show and it scares the hell out of me!
Please do something to get this message across to the voters.
Gilbut
Gilbert A. Robertson
Colonel Gilbert A. Robertson
United Sates Air Force, Rt'd
13910 South 226 Circle
Gretna, NE 68028
(402) 332-4744
October 6, 1992
President George Bush
1600 Pennsylvania Avenue
Washington, DC
Dear Mr. President:
First of all, I want to see you re-elected for a second term.
The thought of "President Clinton" is horrible. However, you
must do something really dramatic within the next few weeks.
My bachelor's degree is in economics and it is not an exact
science like physics or chemistry. There are so many
variables and the biggest one is personalities. The media
sold the general public on the idea that there was a recession
two years ago and they have continued to nurture the concept.
There is nothing you can do or Clinton can do to change a
perception of recession that the media persists in fostering.
However, if Clinton is elected the liberal press will suddenly
find that things really aren't so bad after all. Our family,
including married children, is much better off now than we
were four years ago and certainly much better off that we were
twelve years ago when Carter was in the White House.
You have done so many positive things and if you had the line
item veto you could have done more.
Gilbert A. Robertson
510 m. Court St.
Quitman, Ya. 31643
October
The How James Baker
White House Chief of State
puppat.
% The White Hanne
1600 Pennsylvania Gae.
NRN
Washington, B. C. 20000
Bear mr. Baker:
Believe me when of assure you that I
am a strong supporter of President Burh
in Lia campaign for re-election but I
am deeply concerned right now about The
daily palls that show Bill Clinton ahead in
the raw! I know had quickly things change
in the political arena, and I'm hopeng
for a change as early as today, but I
surely can't foretell anything!
l don't have much Rope that you and
other "people in high yelaces" really care to
hear what "peaple" Clike nw) think are feel.
I'm a small-town, small time, retired school
teacher and my opinion won't count for
much, but please remember that same teacher
along the way may have influenced you
somehow to reach the status you have
achieved. Perhaph, then, you will understand
that my suggestions are not from someone
who thinks she known it all"- as from
someone who is being yridgnental! d
am merely someone who wants to see
George Bush remain in the White House
and who furthernrore, deplares the level
to which the campaign seems to be headed,
and d don't want President Bush to sue-
cumb to the pressure that could result in
his being brought down to that level ! (This
opinion or fear- has been prompted hy
the enclosed newapaper chipping which actually
made me feel physically sick!
I appeal to you, mr. Baker, to down-play
the "back biting While some may think it
helps, I cant believe it does! 2 Rerefore, I
plead with you to plan a strategy for These
last three weeks which will keep mis, Bush
above the "gliness ! Let Bill Clinton tend
to that!
Hinally, let's hear about important
things like:
a) Putting, God back into all govern-
ment activities! Jaking God out of schools,
for example, was The biggest disgrace that
has ever been perpetrated. Participation can
be voluntary, but wrtil Ise in given His
Mightful place (popular we not!), we are
doomed! Be sure to let god be the Guide
L) On issues, especially in debates, stay
firm an one's position, but remain "cool,
calnu, and collected" ! Let Clinton Han up
c) Reneal positive plans - passible things!-
to improve the economy and this needs
to be done in the first debate!! / Have a real planh
d) Reacal some realistic goals!
e) Stop harping and chritons miserable military
record! 2uayle needs to let up, too, It's been told
there's no need to beat a "dead harre!
Thank you, if you've read my letter.
Respectfully H. Hervell
(mard.) Harriet
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
01. Letter
From: Harriet H. Hewitt to James Baker
10/09/92
(b)(6)
Re: Concerns about election
[Redaction of personal information] (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Chief of Staff to the President, Office of the
Series:
Baker, James A. III
Subseries:
Public Correspondence Files
WHORM Cat.:
File Location:
[Public Correspondence, Oct 1992] [7]
Date Closed:
8/21/2001
OA/ID Number:
93011-002
FOIA/SYS Case #:
2000-0715-F
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - 15 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRAJ
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes I(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
P.S. I must add! The Presidents geoture
in offering to cut his salary by 10 %
is magnaminous, but I believe that will
I concede that that action in commendable,
amount to sometherf like $20,000 - right ?
but when me (middle- class, or maybe even
no- class ha!) face the fact that we worked
fur 34 years, with bachelor's degrees and,
later, master's degrees - and did our best
to instill high moral standards in our
students in addition to "book learning" -
because there is NEVER enough
for education)), then it seems that pri-
arties are really fauled up!
I realize of course, that salaries
of the members of all branches of
government are like nothing, too, when
compared to salaries of pro- athletes,
entertainment groups, etc! We all hand
reason to gripe about the services inconsistencies,
Sarry
in arush
but the time to give consideration
to such matters is Now! Perhaps President
Bush shouldn't bring up those facts during
the delates, so I want litten for them
then, hut I hope and pray that domeone
on the inside will work toward changeng
the situation after the election!
apologies!
D. Hearth
8-A Sunday, September 27,
Bush Hits
Clinton
On Taxes
The Associated Press
BOWLING GREEN, Ohio Presi-
dent Bush whistlestopped through
the heartland in search of Harry Tru-
man's old campaign magic on Satur-
day and charged Bill Clinton's
economic program means "socking it
to the middle class" for higher taxes.
"Bill Clinton's taxes are wrong for
America," Bush said on a long day of
campaigning in which he spoke be-
fore thousands, whether from the
hunting-draped platform of his train
dubbed "Spirit of America" or at au-
turnin fairs and campaign rallies held
trackside.
Over and over, Bush said Clinton's
tax and spending programs don't add
up and would require him to raise
taxes on everyone with taxable in-
come of over $36,600 a year to pay
for "all these promises.
Clinton, who says his, program
would raise taxes only on those with
incomes over $200,000, reacted
strongly. He said of Bush: "He has
no credibility on taxes' and he can't
count. Everything he saidiis wrong."
Bush and his wife rode in a car,
with an antique silver tea service in a
cupboard with cut glass windows and
a mirror that enabled him to spot
people along the track
At several spots along the way, a
person in a chicken costume turned
up at the rallies to symbolize Clin-
ton's charge that Bush is afraid to
debate.
At one stop, Bush tried to turn the
tables, saying, "I'm not sure if that
?
chicken is from Oxford England, or if
he's the one that dumped fecal col-
iform bacteria into the Arkansas
River
Those were references to the con-
troversy over Clinton's Vietnam draft
status and pollution in Arkansas.
Trailing in the polls Bush hoped
his two day trip aboard a special 21
car train = making eight stops in
Ohio and Michigan over two days
would evoke memories of Truman's
come-from behind Democratic cam:
paign of 1948. Through suburbia, ru-
ral settings and small towns the
president and first lady Barbara
Bush and their retinue rolled on a
glorious fall day:
Groups of people turned out along
the way to catch a glimpse. Some
waved, some smiled, some simply
watched. One held up a hand-painted
sign that bespoke the president's po-
litical jeopardy. "No job, it said.
Bush made his evocative trip as
Clinton was stumping in normally
Republican northern New England, a
manifestation of the confidence his
campaign feels about the race for the
White House.
510 m. court So.
2uitman, ga. 31643
CERTIFIED
29
Wood Duck
USA
P 350 618 585
Mrs. HArriet Heweit
GUITMAN
U.S POSTAGE
OCT-9'92
MAIL
III
$2.00
GA
13 METER
3369498
OCT 19 199°CT 19 I 9 1992
1992
The Hon. mr. James Baher
White House Chief of staff
of The White House
1600 Pennsylvania Grenue
Washington,
D. C. 20000
CHARLES G. RAILEY
support
624 HALL STREET
BRIDGEPORT. WEST VIRGINIA
26330
tel: 301-387-9577
until November 2, 1992
October 6, 1992
P.O.BOX655
NRN
McHenry Md. 21541
The Honorable James Baker
The White House
1600 Pennsylvania Avenue, NW
Washington, D.C. 20006
Subject: Why the Republicans will win or lose.
Dear Mr. Baker:
Will you please, please listen to a 68 year old dedicated
family man who first joined the Young Republican Party August 1,
1940 at the age of sixteen. I mix with the people, I urge them to
voice their opinion and listen to them. Now, I want to pass on to
you what I have learned and and what a survey would show.
First, thanks for the magnificient job you have done over the
past several years to do the impossible in foreign affairs. You helped
make it safer for my son in Desert Storm who went on to Kuwait and
is now safe at home. God bless you and all your helpers.
Now, what needs to be done: Here are five items the Republican
Party wants to deal with and the Democratic leaders want to squelch
and the news media helps them keep them under wraps-
Entitlement programs
Line item veto
Capital gains
A balanced budget
Term limits
You have less than amonth to give the people blatant examples
of each of the items and show how they hurt the little people and
help the democrats, the greedy business people, the labor unions and
most of all the lawyers and lobbyists.
I respectfully ask you to check this for yourself; the people
just do not understand what these items are and how they are affected
by them. Nothing beats an example. I have begged the RNC to check this
out in West Virginia and all America. They haven't given this any
consideration and the Republican Party and philosophy is rapidly deter-
iorating and the RNC may take the President and Vice President with
them. The polls and Ross Perot jumping in shows the RNC needs a
massive overhaul.
Just say it and I'll come running to Washington and be at your
side. I'll pay my own way. We have no time to spare.
Most sincerely,
encl:
Bud Railey
Charles G. (Bud) Railey
NO WONDER ALL
THE BUSINESS
PEOPLE ARE
BA CKING CLINTON
AND PEROT.
MRMALEK.
HERE is
day Headlee took his first batch of petitions to Lansing,
This is important to understand. Not everyone reading
the plan of Taxpayers United had been transformed from
this book needs to start a campaign to cut taxes, because
THE REAL
a maybe proposition to one the state couldn't refuse.
their taxes may not be excessive in the first place. But
PROBLEM
Taxpayers United has no doubts that the initiative will*
they might need to start one to keep those taxes from
win voter approval. Looking back over the years of ef-
climbing out of control.
fort, the failures and now the victory, Headlee could find
Most important, however, are these two points: not
GREEDY
some advice for those organizations just beginning their
every campaign ends up at the ballot box; many cam-
BUSINESS
own tax revolt:
paigns are lobbying efforts. And once you have won your
"Avoid being slapped with a label. Be an all-things-
fight, you must remain on guard, because "they" are still
AND
to-all-people kind of movement because that's what tax
waiting to turn your victory into disheartening defeat.
GREEDY
limitation should be. "Know the details of the situation in
Such a fight took place in Indiana, where the main
which you find yourself"-in other words, don't get car-
issue was not cutting taxes, but simply holding the line in
UNIONS
ried away with a Jarvis-style proposal if you don't have
the face of mounting pressure by vested interest groups
AND
to-"and find your area of support. You can build from
who thought the state treasury was the local tree on which
there."
free money grew. We believe it is a classic example of
DIRTY
To which we add this reminder: if at first you don't
citizens' collectively stomping down on a lighted match
WOMEN'S
succeed. try. try again. Because eventually you will come
before the curtains catch fire and the whole building
GROUPS.
out on top.
burns down. It is also a prime example of a lobbying
FROM THE TAR REVOLT BOOK
campaign.
we
The story began ten years ago, in the summer of
10.5.92
1968. when virtually every important pressure group in
THE INDIANA EXPERIENCE:
Indiana got together to plot a raid on the state treasury
The list of participants was awesome: teachers, retailers,
LOBBYING AGAINST
THE
manufacturers, truckers, electricity and petroleum inter-
GREAT ODDS
ests. Chambers of Commerce. auto dealers, the farm
WHORES
bureau. Many large corporations joined in: United States
BED w/
Not every tax revolt results in whopping cuts and na-
Steel, Aluminum Corporation of America (Alcoa), Radio
tional publicity. nor does every one involve massive out-
Corporation of America (RCA), Inland Steel. General
CLINTON
lays of funds for media campaigns. But that does not
Electric, American Oil, Ford Motor Company, among
make these victories any less important than the much-
others. And (talking about strange bedfellows) big labor
publicized Proposition 13 effort.
was also represented by the AFL-CIO and United Auto
Any victory, large or small, involves men and women
Workers. Indiana University, a state institution, and the
who have worked tireless hours to bring them off.
Indiana Commission on State Tax and Financing Policy, a
Moreover. even the smallest victories provide people with
state agency, also took part.
the incentive to push on to greater things. because they
These powerful organizations (later known collectively
show how a few people can organize and win out over
and derogatorily as the "Spending Lobby") sent their
entrenched interests who are better organized and better
representatives to a series of three hush-hush "tax re-
financed
treats" 10 work out a common position. Farmers wanted
92
93
NOT ONE PERSON
1 HAVE ASKED
KNEW ABOUT
GORE'S DISMAL
VOTING RECORD
Bud Railey 10-6-92
United States Senate
2 , 4 5 c 7 8 9 10 11 12 13
DESCRIPTION OF SENATE VOTES
NEVADA
Bryan
Y
N
N
Y
N
Y
N
N
N
N
N
N
Y
Reid
Y
Y
N
N
N
Y
NNNNNN
Y
1. Term Limits for Congress. May 22, 1991. Boren (D-OK)
NEW HAMPSHIRE
motion to table (kill) Brown (R-CO) amendment to limit
RUDMAN
Y
N
Y
N
N
Y
Y
N
Y
N
N
N
Y
1
SMITH
N
Y
Y
N
N
8
Y
Y
Y
r
X
Y
Y
Senators to two consecutive terms if they fund their
campaigns with tax dollars. Boren's anti-term limit motion
NEW JERSEY
Bradley
N
N
N
Y
Y
N
N
N
Y
N
N
N
N
passed 68-30. A No vote was a vote in favor of term limits.
Lautenberg
N
N
N
Y
Y
N
N
N
N
N
N
N
N
2. Using Taxes to Promote Abortion. July 16, 1991.
NEW EXICO
N
Y
Y
Y
<
Durenberger (R-MN) substitute bill to prohibit tax-funded
Bingaman
N
N
N
N
N
N
N
N
family-planning clinics from promoting abortion. Durenberger
-
DOMENICI
Y
Y
Y
N
N
Y
Y
Y
Y
Y
N
N
Y
anti-abortion bill was rejected 35-64. A Yes vote was a vote
NEW YORK
1
D'AMATO
N
Y
N
N
N
Y
Y
?
Y
Y
Y
Y
against using taxes to promote abortion.
Moynihan
Y
N
Y
Y
Y
N
N
N
N
N
N
N
N
3. Pay Raise. July 17, 1991. Byrd (D-WV) amendment to raise
NORTH CAROLINA
Senators' pay from $101,900 to $125,100. Bill passed 53-45.
1
HELMS
?
Y
N
N
N
Y
Y
Y
Y
Y
Y
Y
Sanford
Y
N
N
Y
Y
Y
N
N
N
N
N
N
Y
A 'No' vote was a vote against the Senate pay raise.
NORTH DAKOTA
4. Abortions in Military Hospitals. August 2. 1991. Motion to
Burdick
Y
N
Y
Y
Y
Y
N
N
N
N
N
N
Y
cut off the pro-life filibuster opposing Wirth (D-CO)
Conrad
Y
N
N
Y
N
Y
N
N
N
Y
N
N
Y
amendment to have military hospitals perform abortions on
OHIO
military personnel and dependents stationed abroad. Motion
Glenn
Y
N
N
Y
Y
Y
N
N
N
N
N
N
N
was rejected 58-40. A No vote was a vote against having
Metzenbaum Y N Y Y Y N N N N N N N N
military hospitals perform abortions.
OKLAHOMA
Boren
Y
Y
Y
N
N
Y
Y
Y
N
Y
N
N
Y
5. Abstinence-Based Sex Education. September 12, 1991.
\
NICKLES
N
Y
N
N
N
Y
Y
Y
Y
Y
Y
Y
Moynthan (D-NY) motion to table (kill) Helms (R-NC)
OREGON
amendment to transfer $10 million from surveys on adult
HATFIELD
Y
N
Y
N
N
Y
Y
N
N
N
N
N
Y"
sexual behavior to the abstinence-based Adolescent Family
PACKWOOD Y N
N
Y
N
?
N
N
Y
D
Y
N
Y
Life Program. Amendment was rejected 34-66. A No vote
PENNSYLVANIA
was a vote in favor of abstinence-based sex education.
SPECTER
Y
N
N
Y
N
Y
Y
N
N
Y
Y
N
Y
Wotford
Y
N
N
Y
Y
N
N
N
N
N
N
N
N
6. Taxpayer Funding of Pornography. September 19, 1991.
RHODE ISLAND
Helms (R-NC) amendment to prohibit the National
CHAFEE
Y
N
Y
Y
Y
N
Y
N
N
Y
N
N
Y
Endowment for the Arts from spending taxpayer funds on
Pell
Y N Y Y Y N N N N N N N
Y
pornographic "art." Amendment passed 68-28. A Yes vote
SOUTH CAROLINA
Hollings
Y
N
N
Y
N
Y
Y
Y
N
Y
Y
N
Y
was a vote against taxpayer funding of pornography.
1
THURMOND
N
Y
Y
N
N
Y
Y
N
Y
Y
Y
N
Y
7. Clarence Thomas Confirmation. October 15, 1991.
SOUTH DAKOTA
Confirmation of Clarence Thomas to be Associate Justice of
Daschle
Y
N
N
Y
N
Y
N
N
N
Y
N
N
Y
the Supreme Court. Thomas confirmed 52-48. A "Yes" vote
1
PRESSLER
N
Y
N
N
N
Y
8
Y
Y
Y
Y
Y
was a vote in favor of confirming Judge Thomas.
TENNESSEE
Gore
Y
N
N
Y
Y
N
N
N
N
N
N
N
N
8. School Prayer. January 23, 1992. Helms (R-NC)
Sasser
Y
N
N
Y
N
Y
N
Y
N
N
N
N
N
amendment to state the sense of the Senate that the
TEXAS
Supreme Court should reverse its decisions prohibiting
Bentsen
Y
N
Y
Y
Y
Y
N
Y
N
N
N
N
N
voluntary prayer and Bible reading in public schools.
1
GRAMM
N
Y
N
N
N
Y
Y
Y
Y
Y
Y
?
Amendment rejected 38-55. A "Yes" vote was a vote in favor of
UTAH
1
GARN
N
Y
Y
N
N
?
Y
?
Y
Y
N
Y
voluntary prayer.
5
HATCH
N
Y
N
N
N
Y
Y
Y
Y
Y
Y
9. Choice in Education. January 23, 1992. Hatch (R-UT)
VERMONT
amendment to provide low-income parents with money to
JEFFORDS
Y
N
Y
Y
N
N
N
N
N
N
N
N
?
enroll their children at the public or private school of their
Leahy
Y
N
Y
Y
Y
N
N
N
N
N
?
N
N
choice including religious schools. Amendment rejected 36-
VIRGINIA
57. "Yes" vote was a vote in favor of having parents choose
Robb
Y
N
Y
Y
N
Y
Y
N
N
Y
N
N
Y
1
WARNER
N
N
Y
N
N
Y
N
Y
r
N
where to send their children to school.
WASHINGTON
10. Line-Item Veto. February 27, 1992. McCain (R-AZ) motion
Adams
Y
N
N
Y
Y
N
N
N
N
N
N
N
N
to permit consideration of his proposal to give the President
GORTON
N
N
Y
Y
N
Y
Y
?
Y
Y
Y
N
Y
line-item veto authority. Motion rejected 44-54. A "Yes" vote
WEST VIRGINIA
was a vote in favor of giving the President line-item veto
Byrd
Y
N
Y
Y
N
Y
N
Y
N
N
N
N
N
Rocketeller
Y
N
Y
Y
N
N
N
Y
N
N
N
N
N
authority.
WISCONSIN
11. Taxes. March 13, 1992. McCain (R-AZ) motion to permit
\
KASTEN
N
Y
N
N
N
Y
Y
Y
Y
Y
Y
Y
Y
consideration of his amendment to require a 3/5 vote of the
Kohl
Y
N
N
Y
N
Y
N
N
N
N
N
N
Y
Senate to raise taxes but to let a simple majority cut taxes.
WYOMING
\
Motion rejected 37-58. A "Yes" vote was a vote against tax
SIMPSON
N
N
Y
N
N
Y
Y
Y
Y
Y
N
Y
\
WALLOP
N
Y
Y
N
N
Y
Y
Y
Y
Y
Y
Y
?
increases.
12. Fetal Tissue Research. March 31, 1992. Hatch (R-UT)
amendment to maintain ban on using fetal tissue from
abortions for medical research. Amendment rejected 23-77. A
"Yes" vote was a vote against using fetal tissue from abortions
for medical research.
13. Balanced Budget Amendment. April 9, 1992. Nickles (R-
Christian Coalition does not recommend that its members make voting
OK) motion to state the sense of the Senate that It should
decisions based solely on the information provided in this Scorecard.
adopt by June 5 a joint resolution proposing a Balanced
We encourage our members to make their voting decisions based on
Budget Amendment to the Constitution. Motion passed 63-
the full range of activities relating to Congressional performance,
32. A"Yes" vote was a vote in favor of the Balanced Budget
including committee votes, attendance, constituent service, and votes
Amendment
on issues that are not included on this Scorecard.
CHARLES G. RAILEY
024 HALL STREET
BRIDGEPORT. WEST VIRGINIA
summer address
26330
P.O. Box 655
Deep Creek Lake
Sunday August 2, 1992
McHenry, Md. 21541
301-387-9577
Richard Bond, Chairman
Republican National Committee
copy-
310 First Street, SE
no reply
P.O. Box 1900
Washington, D.C. 20003
CCR
10-6-92
Dear Rich:
Thank you for your personal reply of May 6 to my letters of
April 16 and 19, 1992.
You must read and study the copies of letters to President
Bush, Phil Gramm and Newt Gingrich. I am confident the results of
the general election hinge on what I have to say. Take the letters
home, read them again; share them with your wife and close associate.
I'll hold my finger in the dyke.
It is true that I am just one of the many delegates-at-large
for the Republican National Platform Planning Committee, but I feel
I am most dedicated to taking the truth to the leaders. I have done
the research and want nothing for myself. That is where I differ from
the big givers.
Not wanting anything for myself but good governmnet gives me
an advantage. I can ruffle feathers and tell the facts and the truth.
Forgiveness is one of my greatest assets. If you hate someone, that
person controls you.
Someone has to go to the people with the truth. James Baker
can't do that. Ask me to do it with Pat Buchanan, Pat Robertson,
James Kennedy and Charles Stanley and we'll build our team that will
knock the liberal democrats out of the picture. The time is right for
a CLEAN UP AMERICA. Only the people can do it. It takes backbone,
faith and a genuine love for America. Rich Bond needs victory. There
is no time to spare.
Contact me right away. Come see me at Landmark Village at Deep
Creek Lake, 301-387-9577. I can put everything aside and I want
nothing but good government and a good America. I have talked to the
people. I know the plan will work. We need to hit SO hard that Lee
Atwater seemed like a lightweight. That is all for today.
The people and the Republicans best friend in West Virginia.
Most Sincerely,
Bud Railey
Charles G. (Bud) Railey
encl:
Bud Railey wants
TO help James Baker
The one person who
has made a
difference & will.
It takes backbone.
Bud Railey
12-17-91
CERTIFIED
CHARLES G. RAILEY
P 361 810 128
W.E.B. Du Bois
624 HALL STREET
29
BRIDGEPORT, WEST VIRGINIA
MAIL
STED STATES
P
26330
POSTAL SERVICE
C
1992
P.O. Box 655
Mary Cassart
Deep Creek Lake
OUI I Y 1992
OFFICIAL SPONSOR OF THE
McHenry, Md. 21541
1992 U.S. OL YMPIC TEAM
$1
(until Nov. 2, 1992)
Black Heritage USA
The Honorable James Baker
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20006
Urgent and personal
attention, please
TO
puggestion
Mr games Bater
FROM May ex Tales
FALCO INDUSTRIES, INC.
White House Chief Staff
8531 Ashwood Dr.
Capitol Heights, MD 20743
1600 Penna ave VOUD
(301) 499-2666
DATE SUBJECT HERE Washington DC 20500
FOLD
10-15-92
Non
Dear Me Baker,
started in the Regan years I am Concerned that one
an the owner of a small minority business whicht
The Carter years.
very insertant socut $ not being Talked about
Make the people of the US remamber 21 % interest
rate, huge hate of Difflation standing in line at
5:30 in the morning to get aas to get To work
because we bad a Demochated Congress and a
Democratic Presilentrivoiling Toget ther. Make this
the last Point in every speech SIGNED and on the last
FORM debate 11203, RAPIDFORMS, INC. TO REORDER -Keep CALL 800-257-8354; using it Mary b Sales
1290
SPEED-MEMO
Mary 8 Tales
Fold at line ovèr top of envelope to the
right of the return address
FALCO INDUSTRIES, INC.
25
8531 ASHWOOD DRIVE
CERTIFIED
SOUTHERN
STATE
CAPITOL HEIGHTS, MARYLAND 20743
15 PM OCT SULF 308 NON 00115'92
AND
P 231 773 162
OCT
/ 9.1992
is
MD
1092
Mr games MAIL Baker
White House chief staff
1600 Penna avel NOW
Washington DC 20500
Urgent
puggestions
700 Richards St, Apt 1804
Honolulu, Hawaii 96813
October 13, 1992
The Honorable James A. Baker, III
Chief of Staff to The President
1600 Pennsylvania Avenue, NW
Washington, DC 20500
URN
Dear Mr. Baker,
I am alarmed over the course the election appears to be taking, as sug-
gested by recent polls. The Democrats argue that expanding the economy will
improve the quality of life for the majority of Americans. If the American
people succumb to this blatant attempt to buy their votes - not at the can-
diates' (or their party's) expense, but at the taxpayers' expense - I am
afraid that we will be in deeper Kim-chi than we are today. The danger is
that the thinking vote will be split three ways (Republican, Libertarian,
Perot), allowing those who got us into our present predicament to reclaim
the White House and tighten their hold on Congress.
Rather than echo the Democrats and attempting to outdo them in job
creation per se, believe it might be more productive to tell it like it is,
prescribe strong medicine, and stress effectiveness in achieving desired
objectives and efficiency in use of scarce resources. The opposition argu-
ment is illusory in that people are concerned about real goods and ser-
vices they need or want, not numbers (GDP divided by the latest price
index).
Inflation, the rising cost of living, and decline in the standard of
living are not mainly the result of Administration mismanagement but of
greater demand for finite resources due to:
1) increasing population,
2) artificial stimulation of the economy (subsidies to special
interest groups,
3) bureaucratic red tape,
4) Parkinson's laws, especially at the higher and intermediate
levels of government, and
5) interest payments on the national debt, which otherwise
might be used on priority needs.
The shotgun approach advocated by the Democrats will only dissipate
precious resources and accomplish little. Such an approach may even add
to dissatisfaction when promised results fall short of expectations. It
would make more sense to restore a true free market economy by eliminating
all subsidies to special interest groups, removing impediments to the free
flow of resources, and restructuring incentives/disincentives to encourage
savings and investment, control consumption and the generation of waste,
and permit the general public to participate in resource allocation and
trade-off decisions via the green ballot (their spending).
To restore vitality to the US economy, it is essential that we:
1) Compete globally in producing quality goods and services that
consumers everywhere will demand in preference to products made by our com-
petitors and that will contribute to a positive balance of payments posi-
tion.
2) Eliminate the national debt and follow a policy of balanced
budgets at all levels of government.
3) Given the high cost of American labor, concentrate on high-
value production and rely on other nations for lower-value production.
4) Contribute to global and regional peace and stability by
maintaining a strong military capability and a viable defense industry.
This, in turn, means that we must:
1) Focus attention on objectives and results rather than acti-
vity per se or means.
2) Think integrated systems and system interrelationships.
3) View things from a forward-looking, long-term, holistic per-
spectiverather than a short-term, parochial one tied to the status quo.
4) Concentrate on essential goods and services, and eliminate
duplication.
5) Develop a discliplined, educated work force capable of mini-
mally supervised production, assembly, and quality control in complex
modern industries.
6) Reduce Federal and state governments by 50% over five years,
through attrition. (Pareto's law suggests that an 80% cut would result
in a loss of only 20% in significant output.)
7) Privatize business-type operations (e.g., USPS, AMTRAK, CON-
RAIL, schools, trash collection.
8) Eliminate bureaucratic red tape.
9) Improve the quality of public education to international
standards - including the need for self-discipline and acceptance of res-
ponsibility for decisions and actions (e.g., avoidance of conduct leading
to unwanted births or diseases).
A sudden change would be chaotic and impose hardship on a large num-
ber of people. This could be avoided by a seven-year effort to be com-
pleted by December 31, 1999 to streamline government and restore a free
market economy responsive to the public (ultimate consumers and taxpayers)
rather than the good intentions of politicians, bureaucrats, and other
service providers.
Enclosed are additional thoughts relating to the current crisis. I
hope that in a small way, they can help counter the threat of mediocracy
which would consign us to the unenviable position of doing low value pro-
duction for an integrated Europe and integrated Asian Co-Prosperity
Sphere.
Gengel. George Respectfully T. Ono yours Ono
WAKE UP AMERICA, OR IT MAY BE TOO LATE
GEORGE T. ONO
WITH THE ELECTIONS ONLY THREE MONTHS AWAY, MANY OF US SEEM TO BE MIS-
Marrou
SING THE POINT. THE QUESTION IS NOT WHETHER THE DEMOCRATS, REPUBLICANS, OR
Perrot
SOME OTHER PARTY CAN BEST SATISFY THE VOTERS AND THEIR INTEREST GROUPS,
BUT WHICH PARTY CAN BEST PREPARE THE US FOR SERIOUS COMPETITION WITH AN
INTEGRATED EUROPEAN COMMON MARKET AND AN INTEGRATED ASIAN CO-PROSPERITY
SPHERE IN THE 21ST CENTURY. MOST OF OUR PROBLEMS ARE ECONOMIC AND INVOLVE
HOW TO ALLOCATE OUR SCARCE RESOURCES TO SATISFY UNLIMITED WANTS. IN THE
LAST FOUR DECADES, A NUMBER OF CHANGES AFFECTING ALL OF US HAVE TAKEN PLACE.
1) THE US IS NO LONGER A RESOURCE-RICH, LABOR-SHORT, CREDITOR NATION.
2) TECHNOLOGICAL CHANGE IS TAKING PLACE AT A MUCH MORE RAPID PACE
AND ADVANCED TECHNOLOGY IS READILY AVAILABLE TO OTHER NATIONS, AS WELL AS
THE US.
3) GLOBALIZATION OF ECONOMIC ACTIVITY IS PROCEEDING AND MANY DECI-
SIONS AFFECTING OUR LIVES WILL BE MADE IN BRUSSELS, LONDON, BERLIN, TOKYO,
AND OTHER PLACES OUTSIDE THE US.
4) THE PRINCIPAL SOCIALIST NATIONS HAVE DEMONSTRATED THAT POLITICAL
MEANS ARE NOT EFFECTIVE IN SOLVING ECONOMIC PROBLEMS AND CONCLUDED THAT
INCENTIVES AND COMPETITION MAKE FOR EFFICIENCY.
NO LONGER CAN WE - WITH 5 PER CENT OF THE WORLD'S POPULATION - CONTI-
NUE TO CONSUME OVER 40 PER CENT OF THE WORLD'S RESOURCES. IT IS ESSENTIAL
THAT WE CONSERVE RESOURCES AND MINIMIZE WASTE. TO MEET NEW REQUIREMENTS
(E.G., DEVELOPMENT OF NEW WATER AND ENERGY RESOURCES, ENVIRONMENTAL PROTEC-
TION, AND MAINTENANCE OF THE ECOLOGICAL BALANCE) WHILE CONTINUING TO MEET
OUR DAY-TO-DAY NEEDS, WE MUST DO A BETTER JOB OF DEFINING OBJECTIVES,
Subsidas
DETERMINING PRIORITIES, AND CONCENTRATING OUR EFFORTS TO ACHIEVE OUR GOALS.
WE CANNOT AFFORD TO ARTIFICIALLY STIMULATE DEMAND AND OVERSTRETCH SO
WE CANNOT ACHIEVE MUCH OF ANYTHING, IN AN EFFORT TO DO EVERYTHING.
WHAT THEN DO WE NEED TO DO TO PROVIDE THE GREATEST AMOUNT OF BENEFIT
FOR THE GREATEST NUMBER OF OUR PEOPLE? WE MUST:
1) HAVE A CLEAR DIVISION OF RESPONSIBILITIES AMONG INDIVIDUALS,
FAMILIES, PRIVATE ORGANIZATIONS, AND THE DIFFERENT LEVELS OF GOVERNMENT TO
CUT DOWN ON NON-ESSENTIAL ACTIVITY, ELIMINATE DUPLICATION, AND IMPROVE
EFFICIENCY.
2) REDUCE DEPENDENCY ON GOVERNMENT AND HAVE INDIVIDUALS AND FAMILIES
RE-ASSUME RESPONSIBILITY FOR BASIC NEEDS AND CHOICES. IN THE WORDS OF ONE
OF OUR PAST PRESIDENTS, "THINK NOT WHAT YOUR COUNTRY CAN DO FOR YOU, BUT
WHAT YOU CAN DO FOR YOUR COUNTRY." THINK WHAT WOULD HAPPEN TO THE GRAND
COULEE DAM OR THE EMPIRE STATE BUILDING IF EACH GRAIN OF SAND, EACH PARTI-
CLE OF CEMENT, AND EACH MOLECULE OF STEEL DID NOT DO ITS PART:
3) MAKE GOVERNMENT MORE RESPONSIVE TO THE PUBLIC AND THE TAXPAYERS
BY ELECTING CITIZEN LEGISLATORS REPRESENTING A CROSS-SECTION OF THE POPULA-
TION RATHER THAN CAREER POLITICIANS. POLITICIANS AND BUREAUCRATS, WITH THE
BEST OF INTENTIONS, OFTEN AGGRAVATE PROBLEMS BY DOING THE WRONG THING.
THEIR RESPONSIBILITY TO SERVE THE PUBLIC SEEMS DILUTED BY OTHER MOTIVA-
coves
TIONS AND A SHORT-TERM, NARROW VIEW OF NEEDS.
4) STREAMLINE GOVERNMENT AND RELY ON MARKET FORCES TO GUIDE RESOUR-
CES INTO THEIR HIGHEST AND BEST USES BY REMOVING IMPEDIMENTS TO THE FREE
FLOW OF RESOURCES FROM OLD WAYS OF ACHIEVING OBJECTIVES TO NEW WAYS.
5) PRODUCE QUALITY GOODS AND SERVICES THAT CONSUMERS WILL DEMAND IN
GLOBAL BUYERS' MARKETS. EMPHASIZE CUSTOMER SATISFACTION OVER PROVIDER
CONVENIENCE.
6) IMPROVE THE QUALITY OF PUBLIC EDUCATION TO WORLD STANDARDS AND
CONVINCE STUDENTS AND THEIR PARENTS TO TAKE EDUCATION MORE SERIOUSLY.
THIS IS ESSENTIAL IF WE ARE TO HAVE QUALIFIED WORKERS TO MEET THE DEMANDS
OF GLOBAL MARKETS.
7) STRESS UNITY OF PURPOSE, DIVISION OF RESPONSIBILITIES, AND COOPE-
RATION AND NON-DISCRIMINATION (FOR OR AGAINST ANY SEGMENT OF THE POPULA-
TION).
8) LOOK FORWARD IN ORDER TO EXPLOIT FUTURE OPPORTUNITIES AND MINI-
MIZE FUTURE PROBLEMS RATHER THAN BACKWARD, TO PERPETUATE THE STATUS QUO.
THE BIGGEST CHALLENGE IS TO CHANGE PEOPLE'S THINKING. MANY OF THE
REQUIRED CHANGES WILL TAKE TIME. FURTHERMORE, AN EFFORT TO BRING ABOUT
CHANGE AT A SINGLE STROKE WOULD MEAN CHAOS AND ENTAIL HARDSHIP FOR A LARGE
NUMBER OF PEOPLE. IT WOULD THEREFORE BE APPROPRIATE TO SET THE LAST DAY
OF 1999 AS THE TARGET DATE FOR THE COMPLETION OF CHANGES IN ACCORDANCE
WITH A TIME-PHASED SCHEDULE. UNLESS WE ACT IMMEDIATELY TO IMPROVE OUR
PERFORMANCE AS A NATION IN THE NEXT SEVERAL YEARS, WE CAN COUNT ON BEING
LEFT IN THE WAKE BY OTHER NATIONS THAT HAVE MORE EXPERIENCE THAN WE AS
RESOURCE-POOR COUNTRIES WITH LARGE POPULATIONS TO SUPPORT. THE LAST THING
WE WOULD WANT IS TO SUFFER THE FATE OF PROLIFIC LABORATORY RODENTS CON-
FINED IN A LIMITED SPACE WITH LIMITED FOOD - DROWNING AND SUFFOCATING IN
THEIR OWN WASTE:
CANNOT IGNORE:
a. Law of Supply & Demand
b. Law of Diminishing Returns
C. Pareto's Law (Rule of 20:80)
d. Parkinson's Laws
e. Economies of Seale
f. Marginal Analysis
9. Probabilities of Need & Success
700 Richards St, Apt 1804
Honolulu, HI 96813
Dear Sir,
Enclosed paper is based on a letter to President George
H. W. Bush in August 1989. Believe we need to act quickly
and decisively to restore sound management practices and
economic principles to public management at all levels -
federal, state, and local. Otherwise, we are headed for
serious consequences too horrible to contemplate.
Our problem is that we failed to heed John Stuart Mill
who was concerned that without "moral and mental
cultivation," democracy would not be able to satisfy our
aspirations. Insistence on rights/privileges without
acceptance of concommitant responsiblity/obligations; on
viewing things from a parochial rather than holistic
perspective; on confusing the yardstick for the goal; on
acting like a resource-rich, labor-short, creditor nation
when we no longer enjoy that status; and on ascribing the
successes of others to unfair practices rather than their
appreciation of the teachings of Adam Smith, John Stuart
Mill, Peter Drucker, Edwards Deming, and John Maynard Keynes
(in prosperous times, retire the debt incurred when
operating at a deficit) managed to create a havoc akin to a
gigantic Ponzi scheme in just over four decades.
Reversing this trend requires going back to the basics
and the qualities of dedication to purpose, diligence,
thrift, and enterprise that made this country great. The
truth is generally unpalatable but the alternative of
continuing to muddle along would be catastrophic. Please
use your influence to get the message across to the American
people and urge them to unite in working for the
revitalization of our nation. Thank you.
Sincerely yours,
George T. Ono
WAKE UP AMERICA, OR IT MAY BE TOO LATE!
George T. Ono
A.
INTRODUCTION
Every day we hear about the high cost of living, fiscal
and international balance of payment deficits, the national
debt, acquisitions of American property by foreign
investors, rising crime, decline in the quality of
education, failures of worn-out or obsolete infrastructure
facilities, and other factors generating serious concern.
This comes at a time when population pressures and rapid
change - political, technological, social - are giving rise
to new requirements, and taxpayers are being squeezed
relentlessly by three levels of government, while prices and
cost of living continue to increase. Unless something is
done soon to rectify the way we conduct business, we are
likely to be overwhelmed by current and future needs and
bankrupt ourselves in the effort to deal with them.
Fortunately, we can do something to avoid the potential
catastrophe we face. It will, however, require considerable
resolve, dedication, a return to basics, and adherence to
sound management practices and economic principles.
B. PROBLEM
We have a major resource allocation problem, compounded
by structural and procedural shortcomings and impediments to
the free flow of resources resulting in suboptimization and
allocation of manpower, funds, and raw materials to other
than their highest and best uses. Moreover, we have a
tendency to look backward and try to do a better job of
solving yesterday's problems instead of anticipating and
forestalling tomorrow's problems. The results will continue
to grow worse unless corrective action is taken to make the
USA competitive with the most effective and efficient
producers/suppliers of goods and services in the rest of the
world.
C.
FACTORS BEARING ON THE PROBLEM
1. FACTS
a. The US is no longer a resource-rich, labor-
short nation that has to encourage immigration to work its
mines, factories, and farms, and to build its transcon-
tinental railroads. This was foreseen as early as 1951
(report of William S. Paley to President Truman).
b. The rate of technological change has grown at
an exponential rate since the mid-1950s, with the half life
of technology reportedly at 6-8 years (shorter in some
areas) and shrinking. This means that new ways of achieving
objectives must be phased in, and old ways phased out more
quickly than in the past, with less margin of error.
C. World population will continue to grow and by
2025, is projected to reach over 8 billion, an increase of
over 53%.
d. Great Britain, the Soviet Union, China, and
the nations of eastern Europe have concluded that the use of
political means to solve economic problems is not effective,
and that incentives and competition make for efficiency.
2. ASSUMPTIONS:
a. Usable land and raw material resources will be
more difficult and more costly to acquire, exploit, and put
into production or other use.
b. Other nations will have access to advanced
technology on practically the same basis as the US. Our
nation will therefore find it increasingly difficult to
maintain a comparative advantage based on technological
superiority alone.
C. The high cost and efficiency of automated
systems, robotics, and other capital equipment/facilities
will require increased international cooperation/
integration to realize the benefits of economies of scale,
while avoiding pockets of excess capacity. This makes it
more likely that developments in this country will be
affected by decisions made outside the US (e.g., Brussels,
Berlin, Tokyo, Moscow, Beijing).
d. New requirements generated by the increase in
population, environmental concerns, and technological
advances will call for manpower and financial resources.
3. CRITERIA: It is essential that we, as a nation:
a. Conserve resources and allocate them to their
highest and best uses while insuring appropriate measures to
protect the environment and maintain the ecological balance.
b. Insure that the greatest amount of benefit is
provided to the greatest number of our people at least cost
(including undesirable consequences and foregone
opportunities).
C. Look ahead and insure that we have the
capability to anticipate and solve the problems of the
future, not just maintain the status quo with modest
enhancements to obsolescent means of accomplishing the job.
d. Assure that individuals, families, and private
organizations have a voice in resource allocation and trade-
off decisions, or that such decisions are based on, or
derived from, consumer/user demand, rather than on
bureaucratic or provider decisions.
e. Place the responsibility for meeting basic
needs - food, clothing, shelter, and education - back with
the individual and the family, thereby reducing dependency
on government and encouraging self-reliance and the
democratic process.
f. Create an environment in which individuals,
families, and private organizations pursuing their
respective interests also further the US national interest.
D. DISCUSSION.
1. The increasing population and the difficulty and
cost of acquiring and exploiting new land and material
resources make it only natural that the cost of living
should rise, with more people competing for relatively fewer
resources. However, the situation is worse than it need be
because we do many things that are not really necessary,
because we tend to do things piecemeal or in isolation,
because we resort to the quick-fix instead of getting to the
heart of a problem, and because we tend to be fascinated by
the means used in solving the problem - particularly when
gadgetry is involved - rather than concentrating on the
objective or results we seek.
2. Many actions are undertaken independently without
adequately considering relationships with, or impact on,
other activities and possible effects these other activities
may have on the actions taken. "I'm not going to worry about
because it's not my department, or "The problem won't come
to a head on my watch,' is all too typical and leads to
unnecessary costs.
3. Fiscal deficits stem from the reluctance to face up
to the facts and live within our means. In principle,
everyone agrees that expenditures need to be reduced and
that it does not make sense to spend 20% of the national
budget on interest payments which only postpone dealing with
the problem for another year. However, no one wants to be
first in submitting to the cure (e. g., eliminating
subsidies, cutting unnecessary installations or operations,
and tightening up on criteria for entitlements or
enforcement). The budgetary deficits we face would have
been upon us 10-15 years earlier had it not been for the
Saudis, Germans, and Japanese who invested quite heavily in
US debt instruments. However, as prudent investors, they
are likely to shift their savings, if the return is greater
or their investment, safer, elsewhere.
4. Trade deficits are also attributable to the fact
that we cannot, or choose not to, live within our means.
Given that we are constantly bombarded by messages urging us
to consume more, we must produce quality domestic
products/services that buyers will demand in preference to
Blaupunkt, Mercedes-Benz, Minolta, Nestle, Nikon, Panasonic,
Sony, or Wilkinson. Unfortunately, our public education
system does a generally poor job of producing the able and
dedicated workers that can turn out quality work, despite
the millions of dollars spent on education, and by
employers, on remedial education.
5. Life is a series of challenges and many things in
life are things that need to be done, not things we want to
do. All of us need to discipline ourselves so that we can
take care of things that need to be done with a minimum of
fuss. Rights and privileges are accompanied by
responsibilities and obligations. This thought needs to be
instilled in our children from an early age and constantly
reinforced. Too frequently, the desire to help produces the
opposite effect of increasing dependency on government or
creating a disincentive which causes the supply to dry up
(e.g., price controls, rent controls, income taxes). It may
be argued that consumption taxes are unfair to lower income
groups. The need, however, is to conserve physical
resources and minimize the generation of waste. A slight
tightening of the belt by a large number is more effective
than considerable tightening by a much smaller number (the
latter would also have an adverse effect on investment).
Consumption taxes facilitate collection and cut down on
leakages since the underground economy also buys goods and
services. In a sense it is fairer because few will escape
paying their share. Having production, resource allocation,
and trade-off decisions pushed down to the lowest level and
made responsive to the needs of the community, state, or
nation as a whole, or to the demands of ultimate consumers
is preferable to having decisions made by well-meaning
bureaucrats or service providers who rely on taxes,
subsidies, or contributions for funding.
6. In defining objectives, we tend to be unclear as to
what the primary purpose is. There should be no question,
produce a superior product (whether good or service) at a
reasonable cost. We must not compromise in defining our
objectives or results we expect. It may be necessary to
compromise on prioritization, phasing, methodology, means of
implementation, scheduling, and other matters but we cannot
water down primary objectives. The "Half a loaf is better
than none," approach will guarantee that we won't achieve
what needs to be done. "That's not the way the system
works," should not be used as a crutch - if necessary,
change the system. Making money and complying with laws/
regulations are not in themselves objectives but means to
achieve objectives. If a major portion of the population
were preoccupied with making money and only a few, in
producing/providing goods and services, we would have
perpetual, progressive inflation. Laws, regulations, and
policies are necessary for guiding planning and action for
the short-term and mid-term future. However, they must be
continuously reviewed and discarded or modified to conform
with long-term objectives and plans, as must short- and mid-
range plans.
7. We cannot afford to dissipate our resources and
energies in needless internal conflict or in duplicating
what others are doing. In a homogenous society, consensus
and cooperation are easier to achieve. With a heterogeneous
nation dedicated to the democratic process, we are
constrained to agreement on common objectives, and reliance
on a free market, incentives, and competition, guided by
enlightened self-interest. The division of responsibilities
among the different levels of society according to a
mutually exclusive, collectively exhaustive hierarchy of
objectives (see Appendix B) and the operation of a true free
market system will contribute to self-reliance and
cooperation based on self interest (e.g., consumer
cooperatives a la the 1920s Scandinavian model). Further,
by reducing internal conflict, it will contribute to
resource conservation and minimize the waste disposal
problem, freeing up resources to meet new requirements such
as development of alternative water and energy resources,
environmental concerns, housing for the increasing
population, etc.
8. It is essential that we get the ultimate consumer
of goods and services - both public and private - involved
in production, resource allocation, and trade-off decisions.
Consumers generally do a better job of determining what is
needed and what can be done without, than bureaucrats, since
they are dealing with their own money rather than the
taxpayers'. Getting the public to voice their opinions on
whether something needs to be done or whether they support a
certain proposal is rather pointless unless they are aware
of the total cost, the anticipated benefits, the possible
adverse impacts, and what we need to do without in order to
implement the proposal. If it sounds good, most people will
tend to be sympathetic to proposals earnestly advocated by
someone, if they think that "the rich" or "the government"
is going to pay.
9. We must restore a true free market system and let
the consuming public decide by voting with the green ballot
(the dollar bill). Since the principal proponents of
statism (the Soviet Union, Chinese Peoples Republic, and the
nations of eastern Europe) have concluded that using
political means to solve economic problems is not effective
and that incentive and competition promote efficiency, it
does not make sense for a nation that became great under a
free enterprise system to maintain a large segment of its
population in a state of dependency and maintain a massive
bureaucracy to minister to that group.
a. To insure that the greatest good is provided
for the greatest number, we should get the government out of
economic matters except as a regulator, to preclude abuses
(e.g., fraud, embezzlement, misrepresentation, deceptive
advertising, etc.), and possibly as an interim employer of
last resort (National Public Service Corps). Government
lacks the discipline imposed by the need to show a profit
and tends to overstaff, generate unnecessary work, and
attach undue importance to ritualistic activity - all of
which adds to costs and delays without commensurate benefit.
It is not unheard of to have two different agencies busily
engaged in cancelling out the other's efforts or to have an
agency spending more on cost control than the expected
savings.
b. Eliminate subsidies to special interest groups
be they industrial, labor, agricultural, trade,
professional, scientific, art lovers, or student
organizations. Subsidies distort the resource allocation
process and preclude the employment of resources in their
highest and best uses.
C. Allow entrepreneurial risk takers to profit or
fail. Set standards for capital requirements, reserves,
insurance, etc. but do not remove the incentive to take
calculated risks or promise to bail them out when they have
gone beyond the bounds of prudent management. (When
government, under political pressure, sets unduly low
requirements, it weakens accountability by permitting
managers to plead that they "did everything required by
law").
d. Remove bureaucratic impediments to the free
flow of resources and rely on market forces, incentives, and
competition. Unions can perform an important role in
promoting the mobility and adaptability of labor (see
Appendix C).
e. Maintain the stability of the dollar. This is
important if we are to encourage Americans to save - so they
can live off the income when they retire and so the nation
can invest in the capability to handle future problems and
exploit future opportunities. The store of value function
cannot be adequately served if our people cannot be
confident that the dollar will maintain its value. We
cannot afford to have everyone speculating in fluctuations
of the dollar, with few producing and selling goods and
services. Cheapening the dollar will not help sell American
products, unless we can assure quality and reliable, on-time
delivery of the quantities required.
10. The best means to accomplish our objectives must
be decided by competent managers based on sound management
practices and economic principles. The return to the
scarcest or limiting resource must be maximized, using
marginal analysis and expected value calculations (under
differing probabilities of need and probabilities of success
under differing conditions) from a long-term, holistic
perspective (not a short-run, parochial one).
11. The biggest challenge is that of changing people's
mind sets. The environment, technology, and the relative
availability of the factors of production (land, natural
resources, capital, information, time, and manpower) are
constantly and inexorably changing. Yet people tend to be
more comfortable with recollections of the past than with
projections of the future and to be reluctant to change.
Since mid-century, the US has changed from a resource-rich,
labor-short nation to a net importer of raw materials with a
significant amount of unemployment and underemployment.
More recently, it changed from a creditor to a debtor
nation. Unfortunately, people generally continue to think
that we are still "Number 1," and that somehow this entitles
us to demand that other nations conform to our thinking.
Militarily, we are No. 1 but some would argue that we are
drifting toward becoming hired guns, and some of the key
components of our most successful weapons are reportedly
imports. To be able to look ahead and anticipate and solve
future problems or exploit future opportunities, instead of
just having a better capability to deal with today's
problems, our thinking needs to change.
a. With the half-life of technology said to be 6-
8 years (shorter in some fields) and shrinking, it is quite
possible that during a productive lifetime, a person will
have to change jobs several times. New ways of achieving
objectives will have to be introduced and old ways discarded
much more quickly. People will have to be problem-oriented,
well versed in basic principles, and flexible, both
occupationally and geographically.
b. The old adage, "People are our most valuable
resource," will have to be modified to "Qualified people are
our most valuable resource." People have to be supported
with governmental services (police and fire protection,
adjudication of conflicts, water supply, trash collection,
sewage disposal, orderly community development, public
assistance, etc.) as well as private goods and services, and
to the extent that their contributions do not meet the cost
of these services and other consumption, are more of a
problem than a resource.
C. The feeling that people have rights,
unencumbered by responsibility seems quite prevalent. This
needs to be clarified that, people have a right to do
anything they want as long as it is not illegal and as long
as they do not infringe on the rights of others. Rights and
privileges must be counter-balanced by concommitant
responsiblities and obligations. People who witness a crime
have a responsibility to restrain the perpetrator and to
cooperate with law enforcement agencies. (It is our
government and our police). The notion that people should
be paid for doing what they want to do (or be entitled to
public assistance) needs to be dispelled and it should be
made clear that people are paid for doing what needs to be
done or what people are willing to pay for.
d. In a resource-poor, labor-surplus, debtor
nation such as the US has become, decisions relating to
production, resource allocation, and trade-offs need to be
based on demand pull rather than supply push. We need to
conserve resources by curtailing consumption, and minimize
the waste disposal problem. The ultimate consumer of goods
and services, whether private or public, rather than the
provider should decide what goods and services needs to be
produced and sold. Providers of goods and services must
satisfy their customers (the public in the case of
governmental services) and their shareholders (the taxpayers
in the case of government) to insure that their output meets
specifications and that resources are being used
efficiently. The election of more citizen legislators (as
distinguished from professional politicians) representing a
cross-section of the population would make government more
responsive to the public.
e. Akio Morita, Chairman of Sony Corp., states
that Americans plan 10 minutes ahead whereas the Japanese
plan 10 years ahead. We also tend to do things piecemeal
without considering system interrelationships and the
effects of these relationships whereas the Germans and
Japanese take an integrated systems view of things. With
the globalization of economies, we must take a long-term,
forward-looking, objectives-oriented, systems approach to
management, both public and business, if we are to compete
effectively with the industrialized nations of Europe,
Japan, and the newly industrialized countries of Asia.
f. The US tends to confuse the messenger for the
message and to be preoccupied with perceptions, image,
buzzwords, and form over substance. If we produce a quality
product and sell it at a reasonable price while insuring
reliable delivery of the quantities required on a timely
basis, the product will sell itself. No amount of image
creation or buzzwords will do the job unless we deliver the
best quality relative to price, when needed.
g. We must get people thinking in terms of
objectives and expected results (output of goods and
services), of systems, subsystems, components, and parts;
and of system interrelationships. Each system must be
responsive to a publicly recognized need or to effective
demand backed by willingness to pay. A system and the
segments that make it up must contribute in a positive way
to the achievement of the objectives and results of the
system of which it is a part. In identifying needs, the
public must consider costs (including undesirable side
effects and foregone opportunities - or things that must be
done without in order to satisfy the need being identified)
as well as anticipated benefits. Self-validation and self-
evaluation by the system itself will not achieve the
discipline necessary for effective operation (e.g., a school
system must be responsive to the community it serves).
is
12. The picture painted is grim and the message
conveyed will make the writer extremely unpopular, but it
needs to be said and acted upon. The economic integration
of Europe, with the activation of the European Economic
Community as an operational entity and the upgrading of the
intra-European rail system to link the political, financial,
and business centers of the member nations (including London
now w many & Scanda an with
via the Chunnel) in the next decade makes it imperative that
we face up to the problems and get our house in order.
Immediate action would not be too soon, but given that many
of the measures will take time, action should be initiated
to insure completion of the transition of the "what is" to
the "what must/should be" by the end of 1999.
E. CONCLUSION.
It is essential that the US radically alter its ways of
conducting business - both public and private - to insure
that the interests of the nation and its citizens are
adequately furthered and protected, vis-a-vis several
Russia
influential blocs. The major players are expected to
include: 1. the European Economic Community, 2. Japan, 3.
the Union of Soviet Socialist Republics, 4. the Peoples
Republic of China, 5. the United States of America, 6. the
Persian Gulf nations (as long as the industrialized nations
are oil dependent). If we do not, we could wind up in the
same predicament as prolific rodents confined in a limited
space - drowning/suffocating in their own waste. We should
bear in mind that the Dutch, British, Germans, and Japanese
have much more experience than we as resource-poor nations
having to support large populations. The notion that
Job creation a
technology and growth will bail us out should be put to
rest. Technology is available to developing nations as well
as to other advanced industrialized nations. Growth
measured by an elastic yardstick and including needless or
W' infletion create will
mutually cancelling activity is illusory. Only by being
competitive with the best and by consuming less can we
extricate ourselves from our predicament.
F. RECOMMENDATIONS.
1. Adopt a long-term, holistic, forward-looking,
objectives-oriented, systems approach to management, both
public and business. Emphasize results (output of goods and
services), rather than means or activities. Elect
management-wise statesmen rather than politicians to
Congress and state legislatures.
2. Stop using political means in trying to solve
economic problems.
a. Restore a free market economy and terminate
all subsidies to special interest groups. As a transitional
measure, provide vouchers to verified beneficiaries on a
declining basis (e.g., 12.5%-20% per year), to expire in 8
years or less.
AMTRAK CONTRAIL
b. Divest government of all business-type
operations (e.g., Alaskan Railway, US Postal Service) and
get government out of the economy except to prevent abuse
and as employer of last resort.
C. Eliminate taxes on income and finance
government operations using value-added (non-pyramiding)
taxes on consumption.
d. Abolish appropriation budgeting and adopt a
purpose-oriented program budget outlining the proposed
program for 6-8 years (the half-life of technology).
Combine the program approval and budget approval processes,
with the first-year increment of the approved program
becoming the approved budget. Require the budget be
balanced, except in a national emergency (major war or a
major disaster affecting the entire nation or an entire
major state).
e. Push a major portion of production, resource-
allocation, and trade-off decisions down to the lowest level
by having individuals and families reassume responsibility
for basic needs (food, clothing, shelter, and education).
Permit businesses to profit or fail so they will exercise
prudent management.
f. Remove impediments to the free flow of
resources to their highest and best uses. Streamline
legislation and bureaucracies to make them more responsive
to changes in the environment, technology, and/or relative
factor availability. Discard or modify outdated practices
(e.g., civil service systems, anti-trust).
3. Improve the quality of education which is basic to
an informed, responsible, self-reliant, productive citizenry
and the democratic process.
a. Stress responsibility and the need for
discipline, so students can concentrate on learning and
teachers, on teaching. Adopt standards of behavior and
appearance, with reward/penalty systems which will encourage
self-discipline.
b. Place greater emphasis on substance/subject
matter rather than on form or process.
C. Adopt strict standards for teachers, hold them
accountable for results, and enhance their status and pay.
Employ more teachers with practical experience as well as
theoretical knowledge (e.g., retired businessmen,
professionals in various fields, government employees, and
military personnel, possibly on a time-sharing basis).
d. View higher education as an investment with
go, no-go decisions made by the benefactee and bill payer
(usually parents) based on expected benefit/cost
considerations rather than as a status symbol. (Why produce
more Ph. D.S at taxpayer expense that can't find suitable
employment)?
4. Adopt a more pragmatic approach to beneficence.
Encourage self-reliance, simple methods, and use of readily
available resources rather than capital-intensive means.
a. Avoid raising unattainable expectations in
people of other nations and domestic aid recipients.
Explain the benefits of freedom and democracy (as well as
responsibilities and obligations) to them but don't
encourage people to defy their own governments, unless we
intend to back them to the hilt.
b. Consider probability of need and probability
of success in satisfying the need at reasonable cost.
(Don't force a city to equip 298 buses with hydraulic lifts
at $15-20,000 per bus when the usage is only 8 times a
week).
C. Stress equality of opportunity, competition,
and results. Don't discriminate in favor of or against any
particular segment of the population. Distinguish between
behavior and original states/conditions as a basis for
identifying discrimination cases.
d. Leave public assistance to private beneficent
organizations such as churches (or equivalent) of all
religions, the Red Cross, Salvation Army, etc., rather than
government bureaucrats.
5. Judge other nations by their compliance with
international law, customs, and practices, rather than
whether they conform to our ideals. This is particularly
important if they possess critical materials or strategic
location vital to US national interests.
A USEFUL TEST
1.
Is it absolutely necessary?
2.
Is there a better way?
3.
Will it affect the outcome of the war (or other major
undertaking) ?
4.
Can we afford it? How will we pay for it? (or What
must we give up to do it?)
DISTRIBUTION:
Chicago Tribune
J.D. Quayle
Christian Science Monitor
P. Gramm
Detroit Free Press
W.B. Rudman
Fortune
J. Kemp
Japan Times
S.K. Skinner
Los Angeles Times
P. Buchanan
Newsweek
P. Tsongas
NY Times
R.H. Perrot
Philadelphia Enquirer
San Francisco Chronicle
W.F. Buckley, Jr.
Time
G.U. W. Goodman
USA Today
P.F. Drucker
US News and World Report
M. Friedman
Wall Street Journal
R.M. Nixon
Washington Post
The Econo must
R.W. Reagan
j. Silber
P. Noonan
H.L. Fong, Sr.
P. Saiki
APPENDICES
A. The Need for Developing National Unity
B. The Need for a Long-Range, Objectives-Oriented, Systems
Approach
C. On the Economy
D. Thoughts on Strategy
E. On Education
F. On Security and Justice
G. Apropos Pieces of Wisdom
APPENDIX A
THE NEED FOR DEVELOPING NATIONAL UNITY
People of other nations perceive Americans as friendly,
open, easygoing people with whom it is easy to associate.
On the other hand, the US as a nation is seen variously as
vacillating, inconsistent, confusing, and in general, an
entity with which it is difficult to deal. With the
President, cabinet secretaries, and 535 legislators all
purporting to speak for the American people, it is little
wonder that outsiders - and even many Americans - do not
know who or what to believe.
There is a need to develop a sense of national unity
around national objectives, the national flag, and a
national language. We must emphasize common beliefs and
characteristics and downplay the differences. We are all
Americans, not hyphenated Americans. There is a need for
strong leadership from the top in doing SO. Some of the
steps that should be taken include the following:
a. Develop a hierarchy of long-term national
objectives (e.g., integrity and independence as a nation,
respect for and recognition of the rights and responsibi-
lities of individuals, freedom of trade to include access to
markets and raw materials, outlawing of weapons of mass
destruction in concert with other nations). Our relation-
ships with other members of the community of nations must be
based on mutual respect for each others' laws, customs, and
practices within each others' jurisdictions.
b. Designate the Stars and Stripes as the national
flag and the Star-Spangled Banner as the national anthem.
Prescribe rules governing respect for the national flag and
the national anthem and penalties for violating them.
C. Reinstitute the daily pledge of allegiance to the
flag at all public schools. Include the playing of the
national anthem and salute to the flag at major sports
events and other public functions.
d. Designate English as the national language of the
US and require comprehension of basic English as a
prerequisite for naturalization. (English is the
international language of business and bi/multilingual
countries such as Canada, Belgium, the Philippines, and
others experience difficulties in taking timely unified
action).
e. Phase out all national government subsidies to
special interest groups whether industrial, professional,
trade, student, or other organizations. Any government
assistance, if provided, must be available to all Americans,
based on need and merit rather than membership in a
particular segment of the population.
f. Officially announce all national decisions and
actions - to include all alternatives considered and
rationale behind the final outcome - in the name of the
President, cabinet secretary having jurisdiction, or other
responsible official. (Avoid doling out fragmentary
information, personal interpretations or perceptions, or
other non-conclusive information that can only encourage
speculation by people who have neither responsibility nor
complete information).
g. Encourage citizens to focus on the establishment of
overall goals/objectives and the development of broad
policy, and to work through their elected representatives
and responsible agencies. We need a systematic approach to
sensing the public's concerns in the formulation of national
objectives and national policy while avoiding mobocracy and
its adverse impact on the implementation of approved
programs. Too often, vociferous demonstrations in the name
of democracy seek to achieve parochial objectives to the
exclusion of other viewpoints and long-term impact on the
well-being of the nation as a whole.
APPENDIX B
THE NEED FOR A LONG-RANGE, OBJECTIVES-ORIENTED,
SYSTEMS APPROACH
Compared to many foreign nations, the US does a poor
job of establishing long-term objectives and concentrating
resources and efforts to achieve them. Americans tend to be
more concerned with the immediate effects of the activities
in which they are engaged, than with long-term purposes
served. We do things piecemeal without adequate thought
given to where they fit in the overall scheme, or the impact
they may have on related activities. The responsibility for
policy relative to a particular issue is often fragmented
among several agencies, each concerned with a specific
aspect, resulting in confusion as to what the US position
actually is. As a result, we constantly find ourselves in a
reactive mode and wondering what happened.
A number of factors make it essential that we organize
rationally and do things more effectively. First, the
transition of the US from a resource-rich, labor-short
nation into a net importer of raw materials, with a
significant amount of unemployment and underemployment.
Second, the propensity of Americans to consume, even at the
expense of needed savings and investment, aggravated by the
tendency to stress form over substance and to dissipate
resources and effort in unnecessary internal conflict.
Third, the acceleration in the rate of technological change
and the availability of advanced technology to other
nations. Fourth, the growing internationalization of
economic systems, information systems, transportation, and
political relationships.
If we do not get organized and improve our performance
as a nation, our competitive position - whether in trade,
science and technology, or diplomacy - could deteriorate
further, adding to our problems. Moreover, new crises in
such areas as energy and water resources, waste disposal,
environmental protection, replacement of worn-out or
obsolete infrastructure facilities, and loss of control over
domestic issues to foreign sources will generate new
requirements. What is needed is a long-range, forward-
looking, obiectives-oriented, systems approach to government
as well as in business. This means:
a. We must stress objectives and results (essential
goods and services for which customers and taxpayers are
willing to pay) over activity or means and picking the best
ways of achieving our goals, even if it requires discarding
the old ways of doing business. Bureaucratic layering,
which only contributes to costs and delays must be
eliminated.
b. Government/society should be organized according to
a mutually exclusive, collectively exhaustive hierarchy of
objectives. There must be a clearcut division of
responsibilities/tasks among the different levels of
society, e.g., (illustrative only):
1) National Government. Long-range national
objectives, foreign relations, national security, regulation
of interstate commerce, maintenance of a strong/stable
currency, establishment of standards in such areas as public
safety, public health, and education.
2) State Governments. Coordination of public
security, public safety, public health, transportation, and
public education programs. Disaster relief planning.
3) Local Governments. Implementation of public
security, public safety, public health, and public works
programs in accordance with national standards and state
policies.
4) Families. Providing basic needs such as food,
clothing, and shelter. Supervising education and behavior
of family members.
5) Individuals. Self-reliance to limits of
abilities, respect for the law and the rights of others,
accountability for results in the accomplishment of tasks
(no hiding behind first names and committees).
6) Private organizations. Provision of goods and
services (to include assistance to needy families by non-
profit organizations).
C. Managers and leaders at all levels must view things
from the national perspective when setting objectives,
evaluating options, making decisions, taking action, and
evaluating performance. In addition, they need to think in
terms of systems, subsystems, and system interrelationships,
not things in isolation.
d. We must clearly define long-term objectives (mid-
term and short-term objectives must be derived from and
conform to long-term objectives), establish priorities, and
adhere strictly to standards. The consequences of muddling
along and doing little or nothing could be disastrous for
the US and the American people. The current Administration
has a tremendous opportunity to tackle the challenge as the
national emergency it is, by calling upon the Congress and
the American people to rally behind it to restore the US as
a sound and vigorous nation. The following actions are
urged:
1) Reorganize the Executive Branch of the Federal
Government along purpose-oriented lines. (Mr. Nixon had
the right idea but he ran afoul of the perception that he
was trying to increase the power of the Presidency vis-a-vis
the Legislative Branch). The Congressional leadership
should also be urged to revamp the Senate and House
committee structures along similar lines.
2) Designate the Federal Government as the
national government of the USA concentrating on national and
international issues. Other issues should be handled at the
lowest level possible. Individuals and families must
reassume responsibility for basic needs. (Visualize what
would happen to the Grand Coulee Dam or the Empire State
Building if each grain of sand, each particle of cement, and
each molecule of steel did not do its part). People whether
acting individually or collectively must accept responsi-
bility for their actions and decisions.
3) Develop managers and leaders who are holistic,
problem-oriented thinkers with a long-term, national
perspective. Promising personnel with potential and a
generalist outlook should be rotated through a variety of
progressively responsible positions in different objective
areas so that by the time they are ready for executive
responsibilities, they will be familiar with the full gamut
of issues facing the national government.
4) Government should stay clear of the economy
except to deal with abuses such as fraud, misrepresentation,
and embezzlement and to expand the money supply to
accomodate population increases in an aggregate sense. (The
purpose of government is to create an environment in which
people and private organizations pursuing their own
interests also act in the national interest, and to provide
essential infrastructure services the private sector cannot
provide. It is not to collect taxes, spend money, build
bureaucratic empires, pass bills, compete with private
business, or dispense favors to select groups in exchange
for votes or campaign contributions).
5) Phase out income taxes and shift to taxes on
consumption in the interest of encouraging saving and
investment and to provide an incentive to conserve
resources, minimize waste, facilitate tax collection and cut
down on leakages. (Even members of the underground economy
have to spend money to live, and the only way to escape
taxation would be by investing or contributing to an
organization which would spend the funds).
e. Eliminate appropriation budgeting and shift to
program budgeting. Combine the program approval and budget
approval processes. This would permit correlation of
expenditures to be made and resources to be consumed with
the objectives to be achieved and minimize the adoption of
obsolescent technology or methods in accomplishing public
tasks.
f. Discontinue welfare except for the physically
handicapped and require everyone to contribute to the best
of his/her ability. Turn social security and health
insurance programs over to consortia of private insurance
companies to be operated in accordance with sound economic
principles and actuarial data. As an employer of last
resort, plan for and fund a National Public Service Corps in
exchange for a modest allowance, room and board, and work
experience, to be administered by selected states and
operated by cities and counties they designate. Assistance
to the needy should be handled by private organizations such
as churches of all religions, the Red Cross, Salvation Army,
etc.
g. To minimize the expenditure of resources and effort
in disputes over the relative validity of statistics
compiled by the Administration, Congressional committees,
and others, charge a neutral organization to be the source
of official US Government statistics and projections. One
option might be to elevate the Library of Congress to US
National Library under oversight of a committee consisting
of one representative of each branch of the Federal
Government and three eminent public figures selected by the
President, the Speaker of the House, and the Chief Justice.
Government agencies, private research facilities, the media,
and other organizations could provide inputs to the National
Library which would maintain statistics and provide official
projections (high, low, most probable).
APPENDIX C
ON THE ECONOMY
The transition of the US from a resource-rich, labor-
short nation to a net importer of raw materials, with a
significant amount of unemployment and underemployment gives
rise to a number of issues that need to be addressed. These
include:
a. How can we increase the demand for manpower without
increasing its cost? An area worth exploring is the
extension of the hours of service to two or three shifts a
day, six or seven days a week. Some businesses are so
congested during normal hours that the quality of service
has suffered. In other areas, necessary services (e.g.,
financial institutions, regulatory agencies, courts) are not
available to many citizens unless they take the time off
from work. Certain enterprises have gone to a 24-hour, 7-
day schedule and many customers prefer to shop when the
stores are less crowded. Perhaps labor organizations might
find it in their interest to consider trading premium pay
for night/weekend work for job security. Such an approach
would have the added advantage of improving the utilization
of physical plant and capital equipment.
b. Should not education be treated the same as any
not
other investment, with decisions relating to whether to seek
no
a higher education made by the bill payer and the
benefactee? The neighborhood handyman, the skilled
carpenter, and the experienced appliance repairman or auto
Are over At Ph we re qual
mechanic are rarities. A contractor to do extensive repairs
is readily available but try to find someone to do minor
repairs! At the same time we have college graduates in jobs
requiring only a high school education and law school
graduates reduced to chasing ambulances or clerical work.
why demited not This
Could it be that we should be encouraging more high school
graduates to go to technical schools rather than college?
With the growing use of automation and robotics, we may need
a smaller number of better qualified college graduates
supported by a host of technicians, craftsmen, and para-
professionals. Rationing college loans on the basis of need
and academic merit might not be a bad idea.
C. Do we need to tighten up the enforcement of our
immigration laws? By 2025, Mexico City will be the largest
city in the world with a projected population of 35 million.
Realistically, neither Mexico nor Mexico City can be
expected to provide adequate employment for the additional
people. We need to face up to the potential problem before
it becomes an emotional issue of international proportions.
Strict enforcement and support of Mexican Government efforts
to develop industries and public works projects to create a
buffer zone are among actions we could take to defuse the
problem.
d. Should national security be exempted from the
application of management and economic principles required
of other organized activities? Robert S. McNamara once
said, in effect, the objective of the Defense Department is
to provide national security, not to create jobs. A former
Bureau of the Budget official remarked in essence, it is
entirely possible to do efficiently and economically,
something that need not be done at all. In the words of
Edward N. Luttwak, the Pentagon tends to overcomplicate
things because there are too many officers. Tradition and
past experience should not keep us from seeking better,
innovative ways to achieve national objectives and support
national policy. Potential contribution and probability of
need for particular capabilities in the greatest percentage
of probable scenarios might be a better basis for program
decisions than the desire to give everyone a piece of the
action.
Suppliers shoul cord
e. Labor organizations can make a valuable
contribution by trading premium pay (for night or weekend
work) for job security, encouraging flexibility in the flow
of manpower resources from old ways of achieving objectives
to new ways, providing a vehicle for update training and
cross training as well as for maintaining continuity of
service for seniority and benefit entitlements, and
user
encouraging competition among non-managerial and non-
professional workers (e.g., clerical, administrative, and
fiscal workers; technicians; and para-professionals).
f. Individuals, families, and private organizations
must take greater direct responsibility for resource-
allocation and trade-off decisions. This will require
restoration of a free market economy and elimination of all
subsidies to special interest groups whether farmers,
transit riders, students, art lovers, manufacturers, unions,
or any other segment of the population. We must allocate
resources and produce goods and services in response to
demand pull. Supply-push or producing what well-meaning
people think is good, selling it through promotions and
advertising, and getting the government to buy it as buyer
of last resort does not make sense.
APPENDIX D
THOUGHTS ON STRATEGY
For three hundred years, the British maintained order
and commanded respect in every corner of the globe where
they had a vital interest. They did so by concentrating a
major portion of their defense investment in sea power (the
then best form of strategic movement) and relying on
indigenous troops, mercenaries, and colonials for their
ground forces. However, we must look beyond past experience
and tradition to determine the need for military
capabilities in today's world and the future.
We maintain military forces to help achieve national
objectives and to support national policy. The requirement
for military forces must be based on capabilities that can
best contribute to deterring aggression, backing diplomacy,
containing and defusing crises, and fighting and winning
wars, if thrust upon us. The fighting forces should be
built around the best strategic means of movement available.
Technology has made it possible to see and hear what is
going on on the other side of the globe in a split second.
The ability to respond to a situation requiring US
intervention should be measured in hours rather than in
weeks.
The Gramm-Rudman-Hollings Act makes it essential that
we invest in capabilities that provide the US the most in
terms of national security in the greatest percentage of
likely situations, in accordance with sound management and
economic principles. We must avoid the temptation to spread
ourselves too thin and not being able to do much of
anything, in an effort to do everything.
A logical strategy for the US might be based upon:
a. Powerful aerospace forces with sufficient
numbers of long-range aircraft (bombers, pilotless-aircraft
carriers or cruise missile carriers, fighters, transports),
space systems, and trained crews, with organic ground force
for establishing airheads, protecting American lives and
property abroad, and airhead defense. The last requirement
should be met by a lean and mean fighting force (such as the
USMC) who have long been posted abroad, even without a
declaration of war.
b. Modest naval forces consisting of submarine
forces, an ocean surveillance information system, and a
fleet of fast guided missile boats and frigates for coastal
security of the continental US and non-contiguous states.
C. A small Army for border security of the
mainland US, and US possessions, where appropriate.
d. Vigorous Reserve and Guard forces maintained
in a high state of readiness.
e. An active Security Assistance Program aimed at
providing friendly foreign nations (particularly those with
strategic location or raw materials) with a capability to
maintain internal security and resisting external aggression
long enough to seek aid from an ally or international
organization. Encouragement should be provided to employ
military forces in civic action programs in peacetime to
compensate for deficiencies in transportation, communica-
tions, public health, and infrastructure construction and
repair.
f. Pursue a sharply focused program of research
and development aimed at developing more effective means of
achieving national security objectives.
g. Signed agreements with other nations in, or en
route to, probable trouble spots for use of their air
facilities when required in the interest of global or
regional stability and peace.
Related Considerations
a. The US Merchant Marine Academy graduated 2500
merchant marine officers in its peak year, 1944. In
recognition of the decline in the relative importance of
ocean transportation, it modified its goal to graduating 250
merchant marine officers per year.
1) The US Air Force, Naval, and Military
Academies each graduate on the order of 1000 officers per
year.
2) If we are concerned with deterring and winning
future wars - rather than reenacting past wars - should not
the outputs be determined by need, marginal analysis, and
probability of need/success rather than equality of numbers?
b. If aircraft and submarines armed with guided
munitions can sink or disable heavily armored surface ships,
and long-range aircraft do not have to be carried within
range of their targets by ships (and can go directly to
attack primary targets, bypassing intermediate and secondary
targets), should we not invest in fewer surface ships and in
more long-range aircraft and submarines?
C. If the US seeks no territorial aggrandizement, and
demographic and other factors militate against a ground
force of several million, a land warfare strategy overseas
does not make sense. Adolph Hitler and Napoleon Bonaparte,
were they here, could attest to this. [RAdm. Alfred Thayer
Mahan advocated reliance on technology-intensive
capabilities (although he did not fully appreciate the
potential of aerospace capabilities), suggesting that
training, honing, and maintaining a manpower-intensive force
at peak effectiveness and efficiency over long periods was
difficult, unless they were employed (which could be a
factor behind jingoistic adventurism) 1.
d. As in the case of any activity, clear definition
of, and adherence to, objectives, priorities, expected
results, and strict standards are essential. We do not
maintain fighting forces to learn a trade or save for
college, but to deter aggression, contain and defuse crises,
and protect US interests.
e. Acquisition of large numbers of a fewer variety of
weapons systems, based on marginal analysis and expected
value, will provide more capability for a given budget, at
lower unit cost, than small numbers of a greater variety of
systems.
APPENDIX E
ON EDUCATION
The objective of the educational system must be to
produce responsible, self-reliant, and useful citizens by
teaching students the need for discipline and the knowledge
and skills they will need to participate in, and contribute
to, the society in which we live, following graduation.
Pedagogical experimentation and extra-curricular activities
are desirable but they must be kept in perspective and
encouraged only to the extent that they contribute to
producing the required results. The objectives must be
established and the results evaluated, not by the system
itself, but by the community it serves, the users of the
product (future employers), and the parents of the students
entrusted to the educational system for transformation. As
Hyman G. Rickover once said, education is too important to
be left to educators.
First, we should expect the educational system to teach
the importance of discipline. People are not created, nor
can they exist, in isolation. (Gone are the days when a few
million people populated a narrow strip along the Atlantic
coast). With millions stacked densely in high-rise
apartments/condominia, we must recognize the rights of
others to a greater degree. They belong to families which
in turn comprise communities, regional entities, and
nations. People are different from other animals in that
they have the capacity to reason, infer, anticipate,
organize, and act to exploit opportunities or to forestall
adverse consequences. It is necessary for people to think
in terms of systems, subsystems, system interrelationships,
and the need for rules. One aspect of this is doing the
right thing (not what is interesting, what one can get away
with, or compliance with bureaucratic or purposeless
regulations), and accepting the consequences of one's
decisions and actions. Another aspect is respect for
competent authority, experience, and knowledge.
By the time a student graduates from high school,
he/she must be able to read, write, and understand English
and a major foreign language; perform calculations in
algebra, geometry, and trigonometry; be knowledgeable in
geography; understand the basic principles in the various
sciences, economics, and management - both public and
business. Finally, a high school graduate must be able to
think and apply the knowledge and skills required to
evaluate situations and solve common, non-technical problems
within constraints imposed by external factors and self-
discipline.
Emphasis in education must be on substance rather than
form. Above the elementary level, serious consideration
must be given to hiring teachers with degrees in subject
matter (e.g., English, Mathematics, Physics, Chemistry,
European/Asian Languages, Public/Business Management) rather
than in Education. Renewable contracts should replace
tenure to keep pace with the changing environment and the
short half-life of technology (6-8 years and shrinking)
Remote school districts must receive a fair share of the
experienced teachers along with recent graduates. Retired
business and professional people, government employees, and
military personnel constitute a valuable pool of part-time
teachers, with practical experience as well as theoretical
knowledge.
Many students are apparently not aware that the reason
they go to school is to learn the knowledge, skills, and
discipline they need to make them responsible, self-reliant,
useful citizens when they go forth into society. Some
actually believe that they go to school to have fun.
Unfortunately, having fun does not prepare students to pay
the rent, buy groceries and other necessities of life, or to
accept responsibility for supporting a family and
contributing to society.
The 180-day school year with the emphasis on extra-
curricular activities will not do the job. We need to
increase the time spent in school (possibly to 240 days) and
reintroduce discipline (preferably internally generated
rather than externally imposed) so that teachers can
concentrate on teaching and students, on learning. It is
important that substance be stressed over form or process
and that students be made aware of what they are expected to
know and what they will be expected to be able to do when
they graduate.
APPENDIX F
ON SECURITY AND JUSTICE
All residents - whether citizens or resident aliens -
and guests of the US are entitled to conduct their affairs
in a secure environment free of crime and violence and to
expect that violators of law and order will be promptly
brought to justice. Many years ago, when Cincinnati enjoyed
the lowest crime rate of any major US city, the Police Chief
was asked for the secret of his success. He replied that
the combination of high rates of apprehension, indictment,
conviction, and sentence execution was responsible for the
low crime rate.
Today, apprehension is made difficult by the large
number of people concentrated in large metropolitan areas,
many of whom are transients, and further complicated by
concern for the civil rights of criminals. Compared to the
days when the policeman on the beat knew everyone in the
neighborhood and could sense anything that was out of place,
the identification problem poses an enormous challenge.
Knowledge that one can be identified restrains the behavior
of most people, as Federal workers, military personnel, and
Defense contractors can testify. A possible solution could
be provided by a universal Social Security/ID card and
driver's license (driving is no longer a purely intrastate
matter), with photo and thumbprint.
The assembly of information for prompt indictment can
be speeded up and made more complete and reliable by
internetted computer systems, digitized imagery recording
and transmission devices, and other high tech aids. The
conviction rate will hopefully improve as people - including
judges - get more used to thinking in terms of objectives,
results, systems, and system interrelationships. Review and
update or purge of legislation to conform with the realities
of today's environment, technology, and division of
responsibilities, with a forward rather than backward spin
would also help. (E. g., with the European Economic
Community and globalization of the major economies,
legislation intended to protect local industry from the
railroad and banking trusts may be less of a concern than
the viability and flexibility of US businesses to compete
with foreign corporations).
The incarceration problem will be with us as long as
the threat of civil rights actions keeps us from viewing
things in proper perspective. Critics should be reminded
that prisons are not country clubs and that people can avoid
prison by not committing crimes. Unlike many foreign
countries, the US has extensive protections, including a
comprehensive appeals process. It is time we start thinking
about the civil rights of the majority of the citizens,
including the victims of crimes.
Two things may need to be clarified. First, the law
itself is not an objective. It is a means whereby society
protects itself and its members. Second, the fact that we
have gone beyond the original purpose of the law and
attempted to make it an instrument of social change may have
contributed to our present difficulties by distorting the
economic system and the resource allocation process.
Murder, arson, rape, larceny, fraud, embezzlement, and
discrimination based on race, color, national origin, sex,
or other predetermined states beyond one's control are
clearly and logically illegal. However, when we attempt to
legislate social change (e.g., full employment, income
redistribution, equality rather than equality of oppor-
tunity), we may create other problems that could haunt us in
the long-run (e.g., irreversible inflation, reverse
discrimination, excess capacity, and overproduction
unrelated to effective demand or need). Another consequence
of expanding the scope of the law is the proliferation of
often conflicting legislation that adds to confusion and
difficulty of enforcement.
APPENDIX G
APROPOS PIECES OF WISDOM
1. It is entirely possible to do efficiently and
economically, something that need not be done at all.
(Former Bureau of the Budget official)
2. We are learning more and more about less and less.
Eventually, we will know all there is to know about nothing.
(Unidentified Source)
3. "Doing the Right Thing," should precede "Doing Things
Right." (Peter F. Drucker)
4. The objective of the Department of Defense is to provide
national security, not to create jobs. (Robert S. McNamara)
5. Tell them what you want, how you want it, and make them
give it to you, just that way. (Peter Glen)
6. Time is a valuable resource and lost time cannot be
replaced. (Peter F. Drucker)
7. Tradition should not be the enemy of innovation.
(Fortune)
8. All large organizations need to aggressively pursue
divestiture strategies to insure that they do not retain
outdated or outmoded policies, offices, doctrine, etc.
(Perry M. Smith)
9. Keep it simple, stupid (KISS) (Conventional Wisdom)
(The more complex things are, the more there is to go wrong,
adversely affecting system reliability).
10. A complex organization is like a precision instrument.
If we adhere to strict tolerances, it will function
smoothly. If we accept loose tolerances, it will operate in
a sloppy manner.
11. Let the kids enjoy themselves. After all, they're only
kids once. Never mind that the Japanese kids have a longer
school year and a tougher curriculum. If we need something
done, we can always hire those Japanese kids. (Local Radio
Announcer) (Wrong!!! Those Japanese kids will be hiring
our kids!)
12. Democracy in itself is no panacea, and might well give
rise to the tyranny of an ignorant majority unless mental
and moral cultivation (education) were coupled with
emancipation. (John Stuart Mill)
George T. Ono
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The Honorable James A. Baker, III
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LABEL 107. JAN. 1991
Arkansas Governor's
tabloid and the dominant media ran
even worse, and causing the people to
with it. Shortly thereafter, the Clintons
become confused as to who's to blam
School Graduate
did a TV interview to explain his in-
for the mess.
fidelity. The media then began to show
(Many misguided individuals are
Having attended the very first
Pupport
their enthusiastic preference for Bill
lately even blaming ex-President Rea-
"Arkansas Governor's School for the
Clinton. (Ect the Gennifer Flowers publicited tapes
gan for the failures of these past four
Gifted and Talented," I read your Sep-
Now the media are falling all over
years, even though supply-side eco-
tember 12 issue with much personal
themselves in their effusive, enthusias-
nomics was a proven, empirical suc-
interest. My experiences there left an
tic praise for Clinton-Gore. If it
cess; it would have been a total success
entirely different impression upon me
weren't such a betrayal of the public it
were it not for the military buildup.)
than Mr. Yarborough.
would be funny to watch.
The President has belatedly admitted
That the course was left-wing, even
In February, a tabloid similar to the
that he made a mistake on the Budget
back then, is not in debate. I recall
one that broke the Flowers story told its
Agreement. That is a good first step,
some radical feminist addressing us and
readers about an African-American
but it is not enough to repair the
insisting that thousands of years earlier
woman, Bonnie Lee Williams, who
damage.
females had ruled society, until men
plans to bring a paternity suit against
discovered that they had a part in mak-
The people want not just an admis-
Clinton.
ing babies! This view of societal evolu-
sion of error, but repentance! They
This story broke just after the Flow-
tion obviously was not consistent with
want the mess fixed, and they're not
biblical teachings, and thus the Bible
ers story, with photos, but the major
willing to wait until after the election.
media ignored it to protect Clinton. It is
was presented as a fantasy.
every bit as important as the Flowers
(If this were a parliamentary democ-
This discussion was countered by a
revelation, because it's a clue to Clin-
racy, Cabinet ministers who had pre-
rather antagonistic group of 17-year-
ton's character, and his total lack of so-
sided over such a colossally failed
olds booing and lecturing the lecturer
policy and who had led their chief into a
called family values when he won't sup-
during Q&A.
port his own son.
trap which caused him to lose face with
Contrary to your article's fear of
the American people would have been
Some of the dominant media have
children being brainwashed, I found
sacked.)
the same honor code as the Mafia.
that my values and beliefs were rein-
Theirs is one of silence and protection
Thus, as a first step, kind, gentle
forced by defending them from the left-
and that is what the media are doing for
George Bush must fire Dick Darman
wing attacks.
Clinton. They see a chance to win the
and disavow his failed policies, and he
I think you need to give more credit
White House for the liberal-leftists, so
must do so now! There is nothing
worthwhile to save.
to the students going through the pro-
they are protecting him. The public
gram. If their values can be swayed by
should be told everything about Clin-
In his place, the President should put
six weeks of liberal dogma, what will
ton's character.
a prominent pro-growth, aggressive
happen as they watch ABC, CBS and
Republican of the Jack Kemp, Newt
NBC for the rest of their lives?
-Audrey Jones
Gingrich, Dick Armey stripe-and give
Pittsboro, N.C.
The opportunity to seriously study
him broad authority to act.
and have intellectual discourse with stu-
Bush Must Act Now
Next, the President must address the
dents of similar caliber was tremen-
American people directly and apologize
dously rewarding. Leaving home for six
To Undo Tax Damage
and reassert his no-tax pledge ("now
weeks (for the first time) and associat-
that the savings and loan bailout is
ing with other outstanding students was
George Bush still doesn't get it. Like
behind us") and promise not to raise
excellent preparation for my atten-
Winston Churchill and Margaret That-
taxes again, until, and unless, the Dem-
dance at the Air Force Academy the
cher before him, he is in mortal danger
ocratic Congress dramatically cuts fed-
next summer. I would agree that we
of becoming a war-hero loser, because
eral spending first. He must tell the
should fight to ensure there is more bal-
in 1990 he made a pact with the devil
people that he was sandbagged by the
ance in the program. But I would prefer
and broke his major promise/
wily Democrats in Congress, and that it
he program as it is, albeit left-wing,
pledge/oath/covenant/vow/assur-
won't happen again!
over no program at all.
ance/guarantee/commitment/word-
Third, he must begin a full-court
-Jeffrey E. Haymond
of-honor to the American people and
press of pro-growth economic policies
raised taxes.
Sunnyvale, Calif.
-implementing the line-item veto by
P.S. This in no way means I'll ever
Were it not for that one monumental
executive decree, initiating a capital
vote for that draft-dodging Clinton!
economic and political blunder, and its
gains tax cut by indexing the tax code,
aftermath, the President would be a
freezing federal hiring and making
shoo-in for re-election today.
executive economies, and reintroducing
Media Ignoring
The Democrats who carefully
a stronger, draconian version of
planned this trap for our President
Gramm-Rudman.
Clinton Scandal
knew that they couldn't touch his re-
Last, but not least, he must stop be-
markable achievements in foreign af-
Stories and editorials have appeared
ing Mr. Nice Guy, go after the Demo-
fairs; but they remembered that in 1980
cratic Congress which has ruined our
lately in which Rep. Bill Hefner
Bush had called Reagan's economic
(D.-N.C.) has accused Rep. Bob Dor-
country, as did Harry Truman in 1948,
proposals "voodoo economics," and
nan (R.-Calif.) of calling Bill Clinton
or more recently, Clarence Thomas.
an S.O.B. while speaking in the well of
so, they reasoned, if they could just get
(He should even go to Capitol Hill and
Bush to abandon Reagan's winning
the House. He did not. I was watching
confront the Democrats directly.)
program, in favor of their own failed
C-SPAN and heard it all.
If President Bush does all of these
policies, they could topple him.
North Carolina's Rep. Hefner got up
things and many more which his advis-
They persuaded him to raise taxes in
and rudely interfered as Dornan ac-
ers might suggest, while there is still
cused Clinton of being "a draft dodger
the midst of a recession, thereby pro-
time-if he will just open his heart and
and a womanizer," which is true. Dor-
longing it. They made him scrap the
soul to the people and level honestly
successful Republican Gramm-Rud-
nan explained that the nation will be
with them about his hopes and dreams,
embarrassed when Gennifer Flowers is
man law, just when it was starting to
they will forgive and give him a second
really kick in. And, ever since that fate-
featured in a nationally known porno-
chance to lead them. But is George
ful day, demagogues in Congress who
graphic magazine.
Bush listening? Does he hear the warn-
want political power for themselves
ing voice of the people he betrayed?
I
Before Bill Clinton was nominated,
have sat on all reasonable pro-growth
think not.
the Gennifer Flowers story broke in a
proposals, making economic matters
David P. McCloy
Nampa, Idaho
20 / Human Events / OCTOBER 10, 1992
Dear Baker-
Events Magazine to you. while it is now too late for many
Mr I am mailing this article I wrote some time ago to Human of
the President addressing the American people) still can be! Also,
these suggestions to be implemented, some of them (especially
the Gennifer Flowers tapes must be reintroduced as a
campaign issue, and become Known to the public, if you
would undermine clinton and win. I will Keep trying to get
through until I (Chow that you or President or Mrs Bush
my No anfueet cide please! Thank you. and
David P. Mccloy
815 11th Ave S.
Nampa, Id 83651
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suggestion
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16925 Hierba Drive #230
San Diego, CA. 92128
October 17, 1992
Mr. James Baker, Campaign Manager
White House
Washington, D.C.
Dear Mr. Baker:
I suggest that President Bush make a speech along the following lines:
Let me remind you of the fundementals that you learned in your high school
civics. Our government has three branches: the legislative, the executive,
and the judiciary, The election involves only the legislative and the
executive. Let me remind you that the President, as Chief Executive, has the
duty to carry out the laws enacted by Congress. The President is not, and I
repeat, is not a dictator. His duty is not to make the laws but to carry
them out.
It is obviously true that during my administration we have had some difficult
times. I sent to Congress from time to time a number of recommendations
for legislation intended to reverse the downward trend of our economy.
All of those recommendations were ignored.
I sincerely believe that had they been enacted into law by Congress, they
would have enabled me, as Chief Executive, to carry out policies which would
have created a much brighter economy than the one with which we have all
had to live during the past few years. (Here the President might elaborate
with specifics.)
If you, the citizens and voters of our great country will retain me as
your Chief Executive, and give me a Congress which puts your welfare above
partisan political considerations it will be my great pleasure to give
you four years of good government and a prosperous economy.
I join Mr. Clinton in recommending change, but the change I recommend is
to give me four years with a Congress which puts your welfare above
partisan politics and I promise you the kind of change that you really want.
Sincerely and Hopefully,
Mort Mort L. Clopton L. Clop
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Mr. James Baker,
OCT 20 1992
Campaign Manager
URGENT
White House,
Washington, D.C.
20500
NRN
Johnson City, Tennessee
October 16, 1992
The Honorable James Baker, Chairman
Presidential Re-election Campaign Committee
Washington, D.C.
Dear Secretary Baker:
I fear that the re-election of our President is in serious
jeopardy. As a patriotic American who has gotten quite used to
the good life," even in recessionary times, I cannot believe there
is even a contest between a womanizing, marijuana-smoking draft
dodger and a man who has been a veteran, Director of the C.I.A.
foreign ambassador, U.S. Ambassador to the United Nations, Vice
President and President
Please bear with me on this, I have a sensible, concrete
proposal. When did President Reagan's popularity peak? I believe
it was immediately after the invasion of Grenada. When did
President Bush's popularity peak? Immediately following the
liberation of Kuwait.
So what does all of this have to do with re-electing the
President? I believe the time is right to liberate Cuba. Most
Americans would favor it. All Hispanics currently in the U.S.
would favor it. Many Cubans would favor it. Only Castro's closest
henchmen would object.
With Guantanamo still active, moving troops and weapons onto
the island could be expedited. And what could the possible
negative effects be? The USSR certainly would not respond. There
is no USSR. Would China? Of course not. How about the other tiny
pockets of communism? No way.
If the action were to be taken between now and the 27th or
28th of October, the President's popularity would absolutely soar
and this great nation would be spared four years of a ruinous
Clinton administration.
Please consider my points carefully. They are not nearly as
ridiculous as they may at first seem. God bless America and God
bless President Bush.
Very sincerel
William R. Adams
570 Shenandoah Dr., Rt. 8
Johnson City, Tennessee
CERTIFIED
Theodore
vonKármán
William R. Adams
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Johnson City, TN 37601
PM Hopkins kins
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29
OCT 20 1992
The Hon. James Baker, Chairman
Presidential Re-election Campaign Committee
Washington, D.C.
20506
MRS DOROTHY PUGH
41 WILSHIRE DR
REDDING CA 96002-1814
Iam Charter member
puggestim
of Rep Pres. Tax Force
Dear mr Baker,
13 NDN Oct 1992
This material has been
sent out to you in hopes that you
Thru President Bush can further
disclose the Gon Cloud of dault that
hangs over Mr. Clinton
d hope pray that you
agree with me that Sacialism
is something america needs to
avoid
There are, In told, 10000
marxest Profs our there who and
no punches where they s tand K
do not try to be objective ! Indeed
try gera good grade unless you
go along your teacher's philosophy
How wrong !! Indoc trmation, not
Teaching young people to use their
minds objectively
Derek Shearers book is in
my hands for the Time Whatever being - It is
semilar term thoreanla used,
"Pinko", Sacialist, be
and DeschiSheares is headed
for a Cabinet Past in his buddy's white
House !! Mrs. Darathy Grace Pugh
Varaaias parts
have been
of this info
sent to other
Repues Son GRAMM
(
MRS DOROTHY G PUGH
41 WILSHIRE DR
REDDING CA 96002-1814
Tom Hayden and The CED
A Series of five Articles
which first appeared in
The Sacramento Union
written by
Louis Barnett
Tom Hayden and the CED
Radicals' subtle vehicle to
The political career of Assemblyman Tom
structures. Although the socializing of America
Hayden, D-Santa Monica, has been an unusual
remains their goal, helter-skelter confrontation
one. He has gone from Anti-Vietnam War mili-
has given way to a planned pragmatic approach
tant to a 1978 primary election candidate who
to gaining political power.
softened up Sen. John Tunney for his subse-
In California, the vanguard of the radicals'
quent defeat for S.I. Hayakawa, to the California
new approach has been the Campaign for Eco-
Legislature. The subtle vehicle for his drive to
nomic Democracy - the CED. Founded by
power has been the leftist Campaign for Eco-
Tom Hayden, now an elected member of the
nomic Democracy (CED).
state Assembly, the CED has achieved power
This is the first article of a five-part series
within the political establishment and an image
examining Hayden's role in the founding of the
of respectability.
CED, its growth and development. Author Lou
Barnett, a Los Angeles-based political consul-
Bankrolled by private liberal foundations,
tant, researched the CED for a forthcoming
government programs, and the activities of
book, "Network of Networks." It is to be pub-
Hayden's wife, Jane Fonda (including her
lished by the National Foundation to, Fight
Workout Salons, motion pictures, and books),
Political Corruption (NFFPC), Glendale. The
the CED and its affiliates have developed an
NFFPC researches public policy issues related
enviable funding base.
to the political election process.
But the roots of the Campaign for Economic
Democracy go back at least a generation before
Lou Barnett
Tom Hayden was born.
Just over a decade ago America seemed on
Almost a century ago, socialist writer Upton
the verge of a new civil war. Seizing on the issues
Sinclair founded the Intercollegiate Socialist
of the draft and the Vietnam war the Radical
Society (ISS). But Sinclair and his colleagues
Left was turning the discontent on the cam-
discovered that the word "socialism" repelled
puses into a solid base for challenging all
the average American - a fact the radical left
aspects of our society.
still understands.
The early tactics included demonstrations,
The ISS was renamed The League for Indus-
sit-ins, teach-ins, and political campaigns. But,
trial Democracy (LID). Under the banner of
depending on the particular faction, these actions
"Democracy," the LID could pursue openly
were gradually escalating to riots, bombings,
socialist goals without the excess baggage gen-
and an intricate underground - the makings of
erated by its original name.
a domestic guerrilla war.
During the 1930s the LID's student arm, the
Before the end of the draft and the war took
Student League for a Democratic Society (SLDS),
away the popular rallying points for new young
merged with the Communist Party's youth front.
recruits to the ranks of the Left, that movement
And the SLDS went from a large intercollegiate
had developed an extensive cadre of experienced
political force to a pathetic shell.
and committed activists.
To revitalize itself, in 1959 the SLDS changed
Unlike old soldiers, that hard core of the radical
its name to Students for a Democratic Society
movement didn't fade away. Instead, they began
(SDS).
the slow building of more permanent political
The SDS leadership gathered at the Univer-
1.
power
sity of Michigan in December, 1961. Then a
In 1965, 1967 and again in 1968 Hayden and
journalism graduate student at that University,
other members of the SDS travelled abroad to
Tom Hayden was given the task of writing the
meet with the leaders of Communist countries,
organization's "manifesto" outlining its philos-
including North Viet Nam, the Soviet Union,
ophy and programs.
Mao's China, and Castro in Cuba.
In June 1962, the SDS radicals met at the
In April, 1968 Hayden personally led a 30-
AFL-CIO camp in Port Huron, Michigan and
member squad of radicals which took over the
unanimously adopted Hayden's manifesto -
Math Hall at Columbia University. The Colum-
the "Port Huron Statement." The statement
bia "project" included holding three hostages
called for adopting socialism under at the slogan
(including a dean of the University), and violent
of participatory democracy," a term still used
battles with anti-SDS students and the police.
by Hayden and the CED.
That same year Hayden was a "co-project
The conference also unanimously elected
director" of the riotous demonstrations at the
Hayden the first president of the SDS.
Democratic National convention in Chicago. He
The parent LID was shocked when it learned
urged the radical troops to violence, saying:
that some members of the Communist Party
"Let us make sure that if blood flows, it flows all
had infiltrated the Port Huron conference.
over the city."
However, it became enraged when the radical
Hayden was arrested with six other radical
Port Huron Statement was made public. Reac-
leaders, including Jerry Rubin, on charges of
tion was swift. The LID Executive Committee
inciting a riot. They were convicted by a jury.
locked the SDS out of the LID national head-
but the decision was subsequently overturned.
quarters in New York and eventually severed
After being freed, Rubin boasted that they were
relations.
"guilty as hell."
But the radical ferment of the 1960's vaulted
Hayden and Fonda met in 1971 when both
the SDS into the nation's consciousness. Hayden
spoke at an anti-Viet Nam War rally. They
and SDS radicalism became a potent political
married in 1973, and continued collaborating in
force.
leftist causes.
From 1964 to 1967 Hayden and a contingent
When American POWs returned from the
ranging from ten to twenty of other SDS members
war in Southeast Asia, Hayden and Fonda
actively organized in the poor areas of Newark,
called them "hypocrites and liars." The POWs
New Jersey. Before the infamous Newark riot,
were, Hayden claimed, "the best-treated prisoners
SDS National Secretary Gregory Calvert told
in any war in history."
the New York Times: "We are working to build a
guerrilla force in an urban environment. We are
In 1977 Hayden, Fonda, and many of their
actively organizing sedition."
associates from the earlier radical days gathered
in Santa Barbara and established the group
During that time, assaults on Newark police
which was to become the Campaign for Eco-
officers increased from 92 to 187 per year. In
nomic Democracy - the CED.
June of 1967 the arrest of a taxi driver created
an incident which escalated to five days of
rioting.
Tom Hayden and the CED
Network the key to radicals'
This is the second article of a five-part series
(a group set up to assist Tom Hayden and the
examing Tom Hayden's role in the founding of
other defendants in the Chicago conspiracy
the leftist Campaign for Economic Democracy
trial). Raskin also attended the "peace talks"
(CED), development. Author Lou Barnett, a
in Paris.
Los Angeles-based political consultant, researched
From the beginning, the IPS has been the well-
the CED for a forthcoming book, "Network of
spring of virtually every leftist cause in existence,
Networks." It is to be published by the National
including support for international revolution.
Foundation to Fight Political Corruption (NFFPC),
Glendale. The NFFPC researches public-policy
In the words of Forbes magazine columnist
issues related to elections.
John Train, IPS is a "radical Washington propa-
ganda mill" that, throughout its history, has
Lou Barnett
been" prodigiously active in anti-business, anti-
defense and anti-intelligence propaganda." (As
Whatever happened to the radicals of the
an example of the latter, IPS founder Raskin
1960s?
was involved in publishing the names of CIA
A few, like Bernardine Dohrn, went under-
agents who were working abroad, thereby expos-
ground and continued the violent tactics of the
ing them to danger. Not surprisingly, shortly
past including bombings and assassination
afterwards one of those identified American
attempts.
agents was murdered.)
The remainder prepared for a protracted
Another early SDS member whose influence
struggle by adopting a unique survival mech-
on IPS has been extensive is Arthur I. Waskow.
anism: the Network.
An IPS Trustee and Resident Fellow, Waskow
has been called by the Heritage Foundation
The Network is comprised of hundreds of
"the most prominent of all IPS Fellows since the
organizations working at every level of our
Institute's formation." Along with Raskin, he
nation's life. It offers a way for radicals to inte-
was a member of the "Committee to Defend
grate with society and gain influence from within
the Conspiracy."
the very institutions they had so recently tried
to destroy.
Subsidized by enormous financial grants from
major tax-exempt foundations (such as the Stern
A key element of the radical network is the
Family Fund, the Janess Foundation, and espe-
Institute for Policy Studies (IPS).
cially the Samuel Rubin Foundation), IPS has
The Institute for Policy Studies was founded
been able to create numerous spinoff organ-
in 1963 by Richard Barnet and Marcus Raskin.
izations - groups that are nurtured through
Both Barnet and Raskin were active in the left
infancy by IPS funding and guidance, and are
wing of the anti-war movement during the 1960s.
then cut loose when they develop their own
Barnet, like Hayden, traveled to North Vietnam
sources of financing.
to consult with communist leaders and was
One important IPS venture was the 1974
involved in the "peace talks" held in Paris with
founding of the National Conference on Alterna-
agents from Hanoi.
tive State and Local Public Policy, with former
Raskin was associated with the "Radical
SDS leader Lee Webb as director. Tom Hayden
Elections Project" of the SDS and was a member
was an official participant at the first NCASLPP
of the "Committee to Defend the Conspiracy"
conference in 1975.
political power
The NCASLPP Conference in 1976, held in
ment of the community. As the language in a
Sacramento, was coordinated by Derek Shearer,
recent CEI Prospectus demonstratesl. its goals
a former IPS Fellow who became a member of
have remained faithful to the original socialist
Jerry Brown's administration. Shearer later co-
objectives of COOP:
authored the CED's primary "economic" text,
"Through a partnership with local govern-
Economic Democracy: The Challenge of the 1980s.
ment agencies and community groups. CEI
It was at NCASLPP's 1977 Santa Barbara
works to encourage community ownership and
meeting that Hayden's CED was born.
control of capital for local economic develop-
Another organization that has sprung from
ment in urban and rural areas."
IPS is the Foundation for National Progress.
The clearinghouse for all these IPS-related
According to one of its own documents, "FNP
organizations is the California Public Policy
was formed in 1975 to carry out on the West
Center. The special function of CPPC. in its
Coast the charitable and educational activities
relationship with the various subsidiaries of
of the Institute for Policy Studies." The FNP,
IPS. can be seen in its interlocking directorates
therefore, serves as the western branch of the
and the flow of money and personnel among
Washington-based IPS.
the organizations.
Like IPS, FNP soon began its own series of
For example, Derek Shearer has been an IPS
spinoffs. Three of the most important of these
Associate Fellow and also vice president,
are:
secretary-treasurer and co-director of the CPPC.
Mother Jones magazine, named after the
He has been a Fellow of FNP, a Steering Com-
famous leftist revolutionary and union activist
mittee member of NCASLPP. and Editor of
"Mother" Mary Harris Jones (1830-1930), one
NCASLPP's "Public Policy Reader." and a
of whose slogans was "industrial democracy."
founder of the CED. The CPPC's "Economy
Project," was supervised by Derek Shearer and
The New School for Democratic Manage-
financed by an IPS grant. Paul Jacobs was also
ment, which seeks to educate its students in
both an IPS Associate Fellow and an FNP
Derek Shearer's philosophy of" economic democ-
Fellow. Fred Branfman, a co-director of CPPC.
racy" and worker ownership of industry.
was also a founding member of the CED.
The Pacific Alliance, which, like its East
Coast counterpart — - the Abalone Alliance, has
The close association of people and money is
successfully exploited public fear of nuclear
a prime example of the Radical Network in
action. It's most successful offspring is Tom
energy.
Hayden's Campaign for Economic Democracy
Ed Krishner, who was involved in both FNP
(CED). The CED is considered to be a potent
and NCASLPP, became the founder and director
force in California politics.
of the Community Ownership and Organizing
Project in 1977. After Kirshner left in 1980,
At the same time the CED is continuing to
COOP's name was changed to Community
pursue its main goal: making socialism accept-
Economics, Inc.
able to the average American.
It appears, however, that the change is one in
Next: Selling socialism: the tactics and strategy
of the CED.
name only. "Community ownership" necessarily
requires ownership and control by the govern-
4.
Tom Hayden and the CED
Selling socialism under a fancy facade
This is the third article of a five-part series
And selling door-to-door has been the calling
examining Tom Hayden's role in the founding of
card of the CED. The CED is recruiting thou-
the CED, its growth and development. The
sands of potential new members in its door-to-
author, Lou Barnett, a Los Angeles-based
door canvassing every month.
political consultant, researched the CED for a
forthcoming book, "Network of Networks." It is
The CED uses paid walkers who receive up to
to be published by the National Foundation to
$250 per week to carry out this door-to-door
Fight Political Corruption (NFFPC), Glendale.
effort. According to the Los Angeles Times CED
The NFFPC researches public policy issues
ad "Work for a Change," they receive free
related to the political election process.
workout privileges at Jane Fonda's Workout
salons, as well as health and dental benefits
after working for three months.
Lou Barnett
It is obvious that CED's" grassroots" are well
The term, "Economic Democracy," is more
watered with enough cash to pay hired organizers.
than just a rallying point for the Hayden followers.
It is a carefully crafted economic game plan for a
CED's efforts to conduct this political census
socialist "New Order," in which the interests of
are related to a larger effort to convert the infor-
the corporation and the government become
mation into sophisticated computer files. The
one and the same.
data will be combined with voter information to
produce a highly enhanced target list. In the
CED theoretician and guru, Derek Shearer,
hands of experienced direct mail or media
boldly described the practical goal of economic
specialists the political effect is in the tradition
democracy as using "the power of the city to
of Orwell's 1984.
control the wealth of the city."
The political alliance of CED and the political
How to sell socialism and the Campaign for
machine of Congressmen Howard Berman and
Economic Democracy has been an overriding
Henry Waxman has created the potential for
concern of Hayden strategists. Shearer con-
extremely sophisticated campaigns. The firm of
fided in a lecture on CED organizing: "I par-
Below Tobe and Associates (The Berman/
ticularly like the phrase 'economic democracy'
Waxman computer operation) has perfected a
- even Bernie (Sanders), I think, doesn't object
computer network to process and use the CED
to this - because it has been referred to by
gathered information.
some of my friends who share Bernie's senti-
ments as the 'great euphemism.' And while we
This technique is being duplicated by others
can't use the 'S' word (socialism) too effectively
of the New Left Network in scores of cities
in American politics, we have found that in the
across the United States. Over 12 million homes
greatest tradition of American advertising, the
have been canvassed to date, with nearly 60,000
term "economic democracy' sells. You can take
being added daily. By 1984 the CED and its
it door to door like Fuller Brushes, and the
allies will have at their disposal one of the most
doors will not be closed."
powerful campaign data bases ever created.
5.
See artich WSS 9-10-92
The CED has billed itself as an organization
of organizers." But it has become the paymaster
for the left and its candidates throughout
California. CED invested over $92,000 alone in
Hayden's Assembly race, the most expensive in
California history. This does not include the
$615,000 given to the campaign personally by
Jane Fonda.
The Campaign for Economic Democracy is
obviously, although not admittedly, a socialist
movement. While CED campaigns are under
the populist banner, its overall agenda is in the
tradition of Upton Sinclair.
The primary goal: political power. The specific,
professed objectives (rent control, solar energy,
abortion rights, anti-nuclear, etc.) can change
with the shifts in the political winds and the
effectiveness of a particular issue toward build-
ing and mobilizing a mass base of support.
The current image of Tom Hayden, assembly-
man, is doing wonders for the CED. The media
is providing the mass audience with the picture
of an attractive, well dressed, clean-cut Mr. Smith
in Sacramento. The memory of Hayden's radi-
cal past and Marxist rhetoric is slowly fading.
Perhaps the CED is proving that socialism
can be sold like Fuller Brushes.
Next: The CED golden years under Jerry
Brown and Jimmy Carter.
6.
Tom Hayden and the CED
Brown-Carter combo boosts
This is the fourth article of a five-part series
Solarcal Local Government Commission
examining Tom Hayden's role in the founding of
the CED, its growth and development. Author
Jerry Brown also sponsored the Solarcal
Lou Barnett, a Los Angeles-based political con-
Local Government Commission and then ap-
sultant, researched the CED for a forthcoming
pointed Hayden as its head. Solarcal was the
book, "Network of Networks." It is to be pub-
brainchild of CED executive committee member
lished by the National Foundation to Fight
Fred Branfman. Branfman was in turn appointed
Political Corruption (NFFPC), Glendale. The
to the Solarcal Council and later became Jerry
NFFPC researches public policy issues related
Brown's director of research.
to the political election process.
Western Sun Project
Lou Barnett
With Brown's assistance, Hayden also found
himself in charge of the federal Department of
With the election of Jerry Brown as Califor-
Energy's Western Sun Project on the West
nia's governor and the rise of Jimmy Carter to
Coast. Long-time Hayden associate Larry Levin
the presidency, the New Left Network and its
was appointed as staff director. Keith Bray,
West Coast arm, the CED, entered an era of
Sacramento CED treasurer, and Kit Bracca of
unprecedented political power. These two
the Santa Clara CED became paid consultants
administrations offered the New Left taxpayer
on the Western Sun staff. Judy Corbett, whose
supported funding for a wide variety of left lean-
home was the site of CED fund-raisers, also
ing social programs as well as appointments to
became a paid staffer for the project.
policy-making positions within the government
Governor's Public Investment Task Force
itself.
In California, Jerry Brown gave Tom Hayden
Havden was the organizer and founder of the
several key appointments and relied on the
governor's Public Investment Task Force. The
Campaign for Economic Democracy for other
director of this project was Nathan Gardels, the
government officials. Not only did this give
Santa Monica area contact for the CED. Gar-
Hayden access to the patronage jobs so vital to
dels also became the director of the governor's
Office of Planning and Research. Other CED
building political power, but it also gave the
activists who were appointed to the task force
CED the ability to pursue its goals under the
include Patti Lightstone, Cary Lowe, and Robin
color of government action.
Schneider.
Southwest Regional Border Commission
The Carter Administration
Brown first appointed Hayden to the South-
The Carter administration was also doing its
west Regional Border Commission. Hayden in
part to provide jobs and funding for the New
turn placed Shari Lawson, founder of the CED
Left Network. A good example of this was the
in San Diego, in power as deputy director.
connection between the federal government's
Lawson was also a director of the CED's Laurel
ACTION/VISTA agency, the CED and the
Springs Institute.
'60s radicals.
7.
New Left to top of the heap
As director of ACTION, Carter chose Sam
This marked the high point of the New Left
Brown, former SDS activist. Brown had attended
Network so far in securing the support of
the founding meeting of the CED as a special
government executives for its programs.
guest and campaigned on behalf of CED candi-
dates in Southern California before going to
The next installment will be an analysis of the
ACTION.
future direction of the CED and the New Left
Network.
ACTION's deputy director was Marge Tabankin,
another SDS veteran. After Tabankin joined
ACTION, the CED applied for funding for its
Laurel Springs Institute. A $180,000 grant was
approved and Laurel Springs began training
New Left organizers with taxpayer money.
Western regional director for ACTION was
Loni Hancock, who had been elected to the
Berkeley City Council as a part of the city's radi-
cal Citizens Action Group. Her candidacy was
heavily supported by the CED. Hancock played
a major role in getting that federal grant for the
CED's Laurel Springs Institute which was
within her ACTION agency region.
Besides the dominance of the CED and other
New Left Network members in these govern-
ment organizations, there were a large number
of individual appointments which favored the
cause of the CED: Jane Carney, major CED
contributor to the governor's Wellness and Fit-
ness Council where she was joined by Theodora
Wilner, a past director of the CED's Laurel
Springs Institute; Derek Shearer, the CED's
primary theoretician, appointed to the Employ-
ment Development Department; Lu Haas, a
steering committee member of the CED, be-
came chief media advisor to Jerry Brown; Ruth X
Yannatta Goldway, Santa Monica area CED
activist appointed by Brown as deputy director
of the Department of Consumer Affairs.
X wife of DEREK SHEARER
8.
(mayor of Santa monica Iterm)
Tom Hayden and the CED
CED stumbles where voters
This is the last article of a five-part series
the precinct and Assembly district levels. If we
examining Tom Hayden's role in the founding of
can do that, we'll elect mayors, county super-
the CED, its growth and development. Author
visors and city councils as part of a coalition."
Lou Barnett, a Los Angeles-based political con-
sultant, researched the CED for a forthcoming
This last statement points out the element of
book, "Network of Networks." It is to be pub-
the CED's program for the future: continuing to
lished by the National Foundation to Fight
build the New Left Network. Again, Tom Hayden
Political Corruption (NFFPC), Glendale. The
on this point, "The organization must be built
NFFPC researches public policy issues related
on people with similar ideas. You'll see a trend
to the political election process.
towards progressive slates with community
organizers moving into electoral politics on the
local and state levels The Network is also
Lou Barnett
being built with the help of old friends. Former
Governor Jerry Brown has helped found the
The 1982 elections underlined both the promise
Institute for National Studies, based in Los
and the danger that the future holds for the
Angeles. The institute's executive director is
CED. The promise, increasing political power,
CED activist and former Brown staffer Nathan
can be seen in the election of CED founder Tom
Gardels. He describes the Institute as a" political
Hayden to the state Assembly. The danger
center-left purgatory" in terms of policy and
appeared in the unexpected losses suffered by
that most of its funding will come from founda-
CED candidates in local elections.
tions, a typical feature of New Left Network
organizations.
X
With the election of Hayden to the Assembly,
the Campaign for Economic Democracy has
Yet, as promising as the future does look for
gained a legitimacy and an access to power that
the CED, some problems are beginning to
it has never had before. Even though many
appear. These surfaced at the same time the
CED members and allies are currently in some
CED was having its greatest triumph: the elec-
kind of public office, prior to Hayden's election
tion of Tom Hayden to the Assembly.
the CED was seen to have played only a tangen-
tial part in electing any individual. Obviously,
In Butte County, centered on the city of
continued success at the ballot box is to be a key
Chico, a CED showpiece of electoral success, a
tactic for the future.
tough county supervisor's race was on. Although
it began as a campaign of many issues, it soon
Another element of the CED's future plans is
became apparent that the CED itself had be-
to gain an increasing voice in the affairs of the
come the main focus of the race. The end result
Democratic Party. Here is how Tom Hayden
was a victory for Hilda Wheeler, who ran on a
described this phase in a 1981 interview: "We
strong anti-CED platform. At the time, this was
want to get hundreds and thousands of CED
thought to have happened because most of the
activists into the Democratic Party, then we'll
resources of the CED were diverted to Hayden's
get the party involved in local elections and at
campaign, but more defeats were soon to follow.
X FORD FD gave heavily to
9. xm. CARNOW'S book "Economic
research pub of D.SHEARER
know of its roots and goals
Again in Chico in a city council race and in
Santa Monica, the CED heartland, CED candi-
dates suffered shocking losses. Most surprising
was the defeat of Ruth Yannatta Goldway, the
wife of CED theoretician Derek Shearer. Run-
ning for re-election as mayor of Santa Monica,
Goldway, a superstar of CED politics, was beaten
by a straight anti-CED campaign. This was par-
ticularly painful to the New Left since prior to
this time the CED had controlled five of the
seven city council seats and had made Santa
Monica a testing ground for its ideology.
One result of these losses has been a con-
sious effort by Tom Hayden to cast off the image
of his radical past. This is being done by dis-
tributing newspaper articles which comment on
how neatly he dresses, by having political allies
talk about his interest in working within the sys-
tem which he once tried to destroy by outright
violence and by interviews in which he says, "I'm
not the angry young man I was in the 1960s
Whether or not this is sufficient to remove the
growing stigma that associating with the CED
seems to have for the voters is a key obstacle for
the CED to overcome.
The future can be seen to hold a mixed fortune
for the CED; just as it is experiencing its greatest
triumphs, it is suffering its most serious losses.
Perhaps this is due in part to the growing
familiarity of the voting public with its roots
and goals.
Democracy The CHALLENGE to "The 80's
Tom Hayden and The CED
is published by the
National Foundation to Fight Political Corruption, Inc.
516 Galer Place, Glendale, California 91206
Additional copies are available at the above address at the following prices:
1 copy $1.00, 5 copies $4.50, 10 copies $8.00, 25 copies $15.00, 50 copies or more .50c each
The book, "Network of Networks," on which these fine articles are based,
is available for $25.00 each plus $2.50 shipping.
Liberal Throwback Derek Shearer
Sacramento BEE
Wins Role in Clinton Economic Circle
to Bee
Sunday, September 13, 1992
B
By FREDERICK ROSE
an Economic Security Council," modeled
Staff Reporter of THE WALL STREET JOURNAL
on the National Security Council, to over-
the sequel
SANTA MONICA, Calif. - Among Bill
see the nation's policies in such key areas
Clinton's economic advisers, support for a
as foreign trade and international mone-
free-trade agreement with Mexico runs
tary affairs. And he has taken a hand in
budget math, then many kids
strong - with one exception, Derek
shaping Mr. Clinton's positions on deal-
may figure it's a lost cause for
Shearer.
ings with the former Soviet Union.
them to ever achieve success in
A professor of public policy at Occiden-
Gov. Clinton and Mr. Shearer met in
the subject," said Jeff Greenhoe
tal College in Los Angeles, Mr. Shearer
1969 at Oxford University, where the future
Eyes on D.C. As Bill Clinton
St Journal
worries about the effects of unimpeded
of the Math Masters Learning
presidential candidate was a Rhodes
trade along the nation's southern border.
scholar. Though some friends have a
Centers.
"This is the first time ever in a modern
vague impression that he was studying at
economic era that we've attempted to craft
Oxford, Mr. Shearer says he was a tourist,
continues to run strong in pres-
an economic union between two countries
visiting a close friend, Strobe Talbott. Mr.
idential polls, political pundits
at such varying levels of development,"
Talbott, also a Rhodes scholar, was dat-
are speculating about whom
he warns.
and later married-Mr. Shearer's sis-
he'd bring with him to Wash-
Mr. Shearer's view of Mexican free
ter. Brooke. Messrs. Reich and Magaziner
ington. One Washington, D.C.,-
trade, which has contributed to Gov. Clin-
also were on Rhodes scholarships at the
based newsletter recently
ton's hesitancy on the issue, isn't the only
time. Mr. Shearer thus became part of the
listed several Californians
difference between him and other mem-
circle of friends known as FOBs (Friends of
among possible Clinton appoin-
bers of Clinton's economic cabinet. The
Bill), as did Messrs. Talbott, Reich and
tees. The O'Leary/Kamber Re-
others - including investment bankers
Magaziner, Mr. Shearer's sister, Brooke,
port suggested Los Angeles
Roger Altman and Robert Rubin, econo-
now travels with Hillary Clinton on the
mists Robert Reich and Rob Shapiro,
campaign trail.
lawyer Mickey Kantor, Clin-
and consultant Ira Magaziner-are moder-
Mr. Shearer's own brush with govern-
ton's national campaign chair-
ates and "neoliberals" working to pry
ment came in the early 1980s. He and his
man, as a possible attorney
their party away from its left wing and
wife, Ruth Yannatta Goldway, had become
general. Other names men?
move it toward an emphasis on eco-
champions of leftist causes in Santa Mon-
tioned were Charles Manatt,
nomic growth. Mr. Shearer, on the other
ica. In 1981. Ms. Goldway was elected
the politically connected senior
hand, is something of a refugee from the
mayor. and Mr. Shearer soon after became
partner in Kantor's law firm;
party's past.
a planning commissioner.
Warren Christopher, who
He served as a planning commissioner
Ms. Goldway and Mr. Shearer were at
headed up the commission
in the so-called People's Republic of Santa
the center of a social whirl, throwing
studying the Rodney King
Monica in the early 1980s when the city
dessert parties now fondly recalled by
beating in Los Angeles; U.S.
launched a radical rent-control experi-
friends and political allies. "Everyone was
Reps. Norman Mineta, D-San
ment, and he is married to the city's
living a "Tom and Jane' fantasy," says
former mayor from that era. He has writ-
Jose, and Leon Panetta, D-Car-
University of Southern California profes-
ten occasional pieces for such leftist maga-
sor Mark Kann, who wrote a book on
mel Valley; former Rep. Tony
zines as Mother Jones and Ramparts, and
the Santa Monica movement.
Coelho of Merced; and Derek
co-authored two books in the 1980s, both of
In the middle of it all, Mr. Shearer and
Shearer, an Occidental College
which called for broad government plan-
Ms. Goldway took a London vacation with
economist who is a longtime
ning at the federal, state and city levels. In
free first-class tickets provided by Laker
personal friend of Clinton. In
a 1976 Nation piece he called on the federal
Airways. Though they later paid for the
Sacramento, local pols specu-
government to "create a government-
trip, a public outcry and questions that the
late that Sacramento Munici-
owned holding company. which would pur-
freebie might have violated state law tar-
pal Utility District General
chase a controlling interest in a major firm
nished the couple's allure. Moreover, at a
Manager S. David Freeman, a
in every leading industry." As recently
Washington conference on progressive 10-
big Clinton supporter, could
as 1984, Mr. Shearer wrote in a preface to
cal government, the two raised some
another writer's book that "activists on the
end up in Washington.
hackles by bragging about their success in
left" don't spend enough time "rooting
bringing the new politics to Santa Monica.
themselves in America's radical traditions
In 1983, Ms. Goldway was voted out of
Mr. Shearer's skills as a gossip are at
and contending in the political arena."
office.
A
least as noted as his policy contributions.
"I changed my mind about a lot of that,
In 1986, Mr. Shearer was forced from
"Derek is charming; a collector of celebri-
frankly," Mr. Shearer says now. His cur-
his planning post amid complaints of ab-
ties, a busy guy who's moving fast," says
rent economic views? "What I support is
sences and an outcry over his public
James Lare, a professor of politics and
what's in [Gov. Clinton's] economic plat-
criticism of city bureaucrats. He says the
colleague at Occidental. Mr. Shearer
form."
ouster was politically motivated. Even
claims to play a cultural role as well,
"Derek is a conscious social democrat
today, political foes who sought his ouster
saying he's the Arkansas governor's "sup-
who went astray," says Tom Hayden, a
still grumble. 'I,can't think of anything
plier of detective fiction."
Democratic California Assemblyman, who
scarier than Derek planning for the coun-
Mr. Shearer, who has a doctorate in
with then-wife Jane Fonda were activists
try," says Herbert Katz, an architect and
economics from Cincinnati's Union Gradu-
in Santa Monica's heyday.
former Santa Monica city councilman, who
ate School has been a regular atten-
The 45-year-old Mr. Shearer earned his
headed the planning commission during
dee at meetings of Mr. Clinton's economic
place in Gov. Clinton's inner economic
part of Mr. Shearer's tenure.
advisers and helped in shaping the candi-
circle out of friendship. "Derek is a very
They still live here in Santa Monica, but
date's economic plan. While he isn't seen
old and close friend of Bill Clinton's, and
Mr. Shearer and Ms. Goldway have since
as especially influential, some other mem-
among the advisers he is probably one of
distanced themselves from city politics.
bers of that group acknowledge that his
the oldest and closest friends,' says Mr.
The once-feisty progressive movement has
friendship with Gov. Clinton gives him
Altman, an investment banker and vice
drifted in and out of office, and its policies
access they lack., Among his contributions
chairman of Blackstone Group. Gov. Clin-
now look increasingly mainstream.
to the Clinton program were a proposal for
ton's communications director, George
-Alan Murray in Washington contrib-
Stephanopolous, calls Mr. Shearer both "a
uted to this article.
toB7
friend and an adviser" to the governor who
has hosted the Clintons at his house near
the beach.
40A)
MRS DOROTHY G. PUGH
41 WILSHIRE DR
REDDING CA 96002-1814
Derek Shearer met Clenton at Offord
Hehas been a leader in Far keft
Groups throut 70's of much
of 80's rp. of Imstitute (charter for Policy mem, Research Author of T.HAyden's 1996 EED)
Wills Journal 9-9-92 /15to
D.S. as elase friend", a ancore on
ecomptic program AND Societ
Unwn
- How interesting!! 00
whate a For and in 1983 on "CFD
We Repub ladies the No Cali
We live clase to its "heddgths" (chico
(Bur energ fdwor has a can Xaet
CED changed so "Campaign Calif"
after in County goods
Ciricl Descks ange Ruth Y. Galdway
(magor of Santa monsa
I have in my hands
Shearess & marken Carnay's book
"Economes Democracy Dis Challenge
to the '80's "
HURSDAY, SEPTEMBER 10, 1992
Tetall Street Jownal
The Economist on Clinton's Left
By THOMAS J. DILORENZO
activists to the city commission. Their
mont, in 1981. His election is called a
If Bill Clinton's economic rhetoric
harshly anti-business policies soon earned
significant "political victory," the likes of
sounds conservative at times, his choice of
their city the derisive nickname "the
which the authors hope will someday "lead
economic advisers is not. One in particu-
People's Republic of Santa Monica."
to a majoritarian movement." The book
lar, Derek Shearer, a professor of urban
The philosophy behind this activism
ends by expressing the hope that economic
studies at Occidental College in Los Ange-
may be found, spelled out at length, in
democracy will play an "influential if not a
les, has taken public positions miles to the
"Economic Democracy." In that book Mr.
leading role in the next Democratic admin-
left of the Democratic mainstream.
Shearer, with his co-author Martin Car-
istration.
Mr. Shearer is a longtime friend and
noy, addresses essential aspects of the
Having developed his basic economic
adviser of Mr. Clinton's. Indeed, the two
American economy. He does not like what
ideas in these two books, Mr. Shearer
met during Mr. Clinton's students days at
he sees.
seems to have turned, in recent years, to
Oxford, and Mr. Shearer is now widely
Mr. Shearer and Mr. Carnoy write in
regarded as a member of Mr. Clinton's
strategies for implementing them. A typi-
"Economic Democracy" that corporations
cal example is a 1986 article in the Nation
inner circle of economic advisers. Accord-
in which he suggests that "progressive"
ing to the Washington Post, Mr. Shearer
would likely play a prominent role in a
Judging by the thinking
policies, such as those he helped to imple-
ment in Santa Monica, will come to
Clinton administration, perhaps even as
chairman of the Council of Economic Ad-
of one of his close advisers, a
other cities only with the election of "a
reform-minded Democratic President
visers.
President Clinton would
who will appoint a progressive Secretary of
Given this prominent role, perhaps it is
make George Bush look
Housing and Urban Development to spread
worth taking a closer look at Mr. Shearer's
public pronouncements, his activism in his
information about progressive programs
hometown of Santa Monica, Calif., and his
like a piker when it comes to
across the country."
writings, especially his best-known book,
expanding the size and
Bill Clinton would seem to fit the bill.
"Economic Democracy." published in
He is "pragmatic and wants to get things
1980.
scope of government.
done," Mr. Shearer recently told the San
Although the phrase "economic democ-
Francisco Examiner. And he is ideologi-
racy" sounds innocuous, it is a kind of
are too "impersonal and powerful" and
cally compatible, apparently. "The best
"euphemism," as Mr. Shearer explained
that a strategy to achieve economic democ-
way I can describe Clinton is as a progres-
in the leftist weekly In These Times a year
racy "must start by dismantling, or at
sive. He believes in activist government,"
before his book appeared. "Socialism has a.
least restricting, the power of these corpo-
Mr. Shearer told the Washington Post.
bad name in America," he also wrote in In
rations."
When criticized last month in the Or-
These Times (as quoted in Reason maga-
ange County Register for his socialist
Ignoring the debacles of central plan-
zine), "and no amount of wishful thinking
ning, Mr. Shearer and Mr. Carnoy call in
views, Mr. Shearer responded by saying
on the part of the left is going to change
that he was not an advocate of socialism
their book for a "democratically" planned
that
in
our
lifetimes.
The
words
Eco-
but in fact a "proponent of democratic
economy - i.e., one planned by govern-
nomic Democracy are an adequate. and
capitalism" and proudly asserted that he
ment bureaucrats. They also call for noth-
effective replacement."
had "served on the board of directors of
ing less than complete governmental con-
Avoiding the 'S' Word
private corporations, and on the board of
trol of the capital markets. "A strategy of
the National Consumer Cooperative-Bank
At a 1981 conference of left-wing activ-
reform," the authors write, "must transfer
in Washington, D.C." He recently told The
ists hosted by Ralph Nader-featuring I.F.
capital from the corporations to the public.
Wall Street Journal that his radical views
Stone and Studs Terkel, among others-
The logical vehicle for that process
should be the government."
had "changed," although he did not say
Mr. Shearer elaborated. "While we can't
how, except to endorse Mr. Clinton's eco-
use the 'S' word [socialism] too effectively
Another "logical vehicle" would be
nomic program, of which he is an archi-
in American politics," he said, as quoted in
government "holding companies" that
tect.
Barron's, "we have found that in the
would purchase from 10% to 20% of the
Tax the Rich
greatest tradition of American advertising
shares "in at least one major firm in each
that the word 'economic democracy sells.
major industry." The board of directors of
It is certainly possible that Mr. Shearer
You can take it door to door like Fuller
such holding companies would include
has lately revised his leftism, even if
Brushes, and the
consumer activists, union officials and
none of his published writings, at least
door will not be
government bureaucrats. The objective,
those that I have seen, repudiate or signifi-
slammed in your
the authors write, is to provide a vehicle for
cantly alter his celebrated public positions
face.'
governmental takeovers of entire indus-
or the views expressed in his most famous
Mr. Shearer's
tries "without the immediate financial and
intellectual manifesto. It might be men-
perspective on the
ideological burdens that large-scale na-
tioned, in this connection, that the Na-
U.S. economy, and
tionalization efforts would entail."
tional Consumer Cooperative Bank he
on the role of profit
According to "Economic Democracy,"
names in his rebuttal to the Register's
in it, has led him to
Mr. Shearer favors, as an alternative to
critique is not exactly a bastion of free
show a certain hos-
nationalization, pervasive governmental
enterprise. It is in fact a product of
tility toward private
control of virtually all business behav-
lobbying efforts by Ralph Nader and his
ownership. In dis-
ior. If an industry "refuses to bargain"
associates during the Carter administra-
cussing how he and
with the government by, say, objecting to
tion: Its purpose, according to Mr. Nader,
Tom Hayden organ-
the imposition of price controls, "real
is to "replace the existing capitalist econ-
ized the campaign
sanctions must be levied. These could
omy with a cooperative economy."
Derek Shearer
for rent control in
include denial of tax advantages and other
Not surprisingly, Mr. Shearer hopes
Santa Monica in 1980 and 1981, Mr. Shearer
subsidies, denial of export licenses, threat
that Mr. Clinton and his Democratic Con-
explained to his conference audience that
of antitrust suits, and so on.
gress would enact a "tax reform that
"housing is a basic human right that
Mr. Shearer's views don't seem to have
seriously attempts to increase taxes for the
comes before the need to profit." Guided
shifted much since the publication of
rich," as Mr. Shearer told the Post. He
by this philosophy, Santa Monica has
"Economic Democracy.' A 1983 book (with
also favors an interventionist industrial
adopted perhaps the strictest, and most
Mr. Carnoy and Russel Rumberger) enti-
policy. In this he is joined by other Clinton
destructive, rent control laws in the na-
tled "A New Social Contract" calls for
economic advisers, like Robert Reich of
tion.
government "control of
investment.'
Harvard's Kennedy School of Government
In 1982, Mr. Shearer told Ed Bradley of
Dozens of newly created government on-
and business consultant Ira Magaziner.
CBS's "60 Minutes" - in a segment about
terprises are "the cornerstones of our
It is hard to say for certain what a
Santa Monica entitled "Left City" - that
New Social Contract," under which private
Clinton administration would be like, but it
America is a "profoundly unequal coun-
businesses will be "guided by new rules of
is clear that its economic policy would have
try." To rectify this state of affairs, he
behavior" enforced by regional and local
a marked leftward tilt. Many have criti-
explained, the Campaign for Economic
government planning agencies. Other
cized the Bush administration for increas-
Democracy - an activist organization
ideas include a "well planned expansion of
ing domestic spending and adding signifi-
founded by Mr. Hayden-was recommend-
the public sector," creation of a "national
cantly to government red tape. But judging
ing a radical redistribution of the wealth in
planning agency," and the implementa-
by the thinking of one of Mr. Clinton's close
Santa Monica, The hope was to "use the
tion of Ralph Nader's "corporate democ-
advisers, a President Clinton would make
power of the government to control the
racy" agenda, according to which corpora-
George Bush look like a piker when it
wealth of the city.'
tions would be required to submit a "social
comes to expanding the size and scope of
The strategy apparently paid off. Mr.
balance sheet" to regulators each year.
government.
Shearer's wife, Ruth Yanatta Goldway,
"A New Social Contract" hails the
was elected mayor in 1981 and promptly
election of "self-described socialist" Ber-
Mr. DiLorenzo is professor of economics
appointed her husband and other CED
nie Sanders as mayor of Burlington, Ver-
at Loyola College in Baltimore.
This is bac KgRonna
in CED- - & would
try to find out why
Derek Shekser is also
Soviet adviser as well
ass ECONOM quiser
This is Serious !,
OUR Presidency is
ar stake !!
MRS DOROTHY G PUGH
41 WILSHIRE DR
REDDING CA 96002-1814
CUS
on the c.e.d...
1983
california federation of republican women o NORTHERN DIVISION
(She your a talk before our Redding
Repict women Fed. on CE.D.
how it
works -
Politi cal
Hagtra (CE) was
Ingrid Azvedo
Regional Vice Chairman North
only a few
Miles away
CALIFORNIA
from us -
9416 Second Street
PARTY
Elk Grove, CA 95624
(916) 423-2160
1.
FORWARD
This is the first edition of a group of studies to be called
FOCUS researched and printed by the California Federation of
Republican Women, Northern Division. Many thanks to the 1983
committee under the leadership of Lillian Finnerty of the
Santa Cruz RWC. Please feel free to copy any and all of this
material for your own use. Additional copies are available.
Barbara Magleby, President
Northern Division
1983
TABLE OF CONTENTS
IL
1.
Who Started CED, When and Where
1
Lillian Finnerty
2.
Tom Hayden - Personality Sketch
2
Norma Card
3.
CED's Purpose and Goal
4,5,6,7,8,12
Julia Preisig
DEREK SHEARER
14
4.
CED's Organization and How They Are Financed
8
Marjorie Preston
5.
CED Targets for the 80's
11
Bev Homan
6.
CED's Successes, Failures,
And Organized Opposition Groups
12
Madelyn Walton
Bibliography
FORWARD
This is the first edition of a group of studies to be called
FOCUS researched and printed by the California Federation of
Republican Women, Northern Division. Many thanks to the 1983
committee under the leadership of Lillian Finnerty of the
Santa Cruz RWC. Please feel free to copy any and all of this
material for your own use. Additional copies are available.
Barbara Magleby, President
Northern Division
1. WHO STARTED CED, WHEN AND WHERE
The official birth of the Campaign for Economic Democracy
came in the fall of 1976, after Tom Hayden captured 37
percent of the vote in his bid for John Tunney's U.S. Senate
seat during the 1976 Democratic Primary. By November 1977,
CED's headquarters had been established in the historic
Bradbury Building in downtown Los Angeles. CED is a
California based organization with ties to a nationwide
network of organizations created and maintained by the
Institute for Policy Studies, "the far left radical 'think
tank' in Washington, D. C.".
To form the nucleus of the CED, Hayden relied on the 14
statewide Hayden-for-Senate groups, which had indicated their
desire to stick together after the election. Sam Hurst,
Hayden's press secretary during the primary campaign, assumed
the position of staff director. Then Hayden, along with wife
Jane Fonda, Congressman Ron Dellums, and United Farm Workers'
President, Cesar Chavez, sent off a letter to a list of
prospective members, asking them to join a coalition that
hoped "to change the face of power in California over the
next decade".
The source for many CED principles came from the Port Huron
Statement which Hayden lead in drafting, as one of the
founding members of Students for Democratic Society (SDS).
This was, in 1962, the first national declaration of the New
Left. Hayden's term as President of SDS ended in 1963.
Led by Hayden, the CED has been successful in recent
elections - Bakersfield, Berkeley, Davis, Chico, Oakland,
Santa Monica, Santa Cruz, and his own (the most costly on
record) seat for the 44th Assembly district of Los Angeles.
However, CED has also suffered some recent setbacks. Santa
Monica's mayor, a political ally of Hayden's, was defeated
along with two city council running mates in April 1933. In
Chico, CED's other major stronghold, one CED backed incumbent
barely skinned through by 67 votes while the other one lost.
In Santa Cruz, the CED backed rent control campaign went down
to defeat for the third time in June, 1983.
CED has chapters statewide and in 1982 claims to have 12,000
dues-paying members, including 500 "who regularly attend
meetings of the 21 (other sources put the number at 30)
chapters in California", according to L.A. Times of 9-25-82.
CED operates with a paid staff of 21 people, a steering
committee of 40 members and 40 alternate members, and an
1
executive committee of 8 members. Hayden chairs both the
steering and executive committees and has been chairman of
CED since its inception.
Sources: California Journal, August 1979
Esquire Magazine, May 1980
Heritage Foundation, Institution Analysis 13 & 14
"The Network of Networks", National Foundations to
Fight Political Corruption, Inc.
2. TOM HAYDEN - PERSONALITY SKETCH
Tom Hayden was born in Detroit, Michigan, in 1940. His father
was an accountant from Milwaukee who joined the Marines
during WW II. Tom's mother, Gene, was a librarian, an Irish
Catholic, and a New Deal Democrat. Because of Mr. Hayden's
drinking problem, Tom grew up living with his mother.
Tom was a small dark child with severe acne problems. He was
fiercely competitive and an ambitious student.
At the University of Michigan, he worked his way up to the
editorship of the prestigious Michigan Daily. He visited
Berkeley for a student activist conference in the summer of
1960 and was infected with the political virus of the left.
Later that year, he attended a conference in Minnesota and
met Sandra Cason, a young blond civil rights worker from
Texas. Within a year he and Cason were husband and wife.
After his graduation, the Haydens continued to live in Ann
Arbor and Tom began directing his energies toward the new
Students for a Democratic Society. As one of the first SDS
members, he led in drafting the 1961 Port Huron Statement,
the first national declaration of the New Left.
In 1962, Hayden was a member of the U.S. delegation to the
Communist-organized and controlled Eighth World Youth
Festival in Helsinki, Finland.
Hayden and his wife were divorced in 1963. He moved to
Newark, New Jersey, and worked to organize the black
community during the pressurized days before and after the
1967 riots. From 1965 through 1967 Hayden worked with the
SDS.
2
He visited Puerto Rico in 1967 with a group, which, according
to the House Committee on Un-American Activities was "a
relatively new Communist-supported organization
with its
headquarters in New York City. Part of its program is to
combat and debilitate U.S. foreign policy."
Hayden had a falling out of sorts with the SDS and joined
forces with Rennie Davis for the National Mobilization
Committee to End the War in Vietman. They engineered the mass
protest at the Democratic Convention in Chicago in August
1968. Hayden was arrested along with 7 others for an alleged
conspiracy to disrupt the convention. Hayden became a public
figure, capturing headlines during the days of the trial of
the Chicago Eight.
Hayden wasn't happy jumping in and out of jail. He wanted
power, not martyrdom.
In 1970, Hayden moved to California and helped organize the
Red Family, the Berkeley commune known as the great bastion
of radicalism and experimental living. Hayden fell in love
with Anne Weills, a striking looking leader of the local
feminist movement. She was estranged from her husband, Robert
Scheer, at that time the editor of Ramparts. Scheer is now a
writer for the Los Angeles Times.
Weills and Hayden came to a parting of the ways and Hayden
moved south to Los Angeles where he changed his name to
Emmett Garity. He made contacts among the Irish in Los
Angeles and got involved with their middle working class
concerns. In 1971 he shed the Garity identity.
Also in 1971, he shared an anti-war platform in Ann Arbor
with Jane Fonda. They went on the road together denouncing
the war and Richard Nixon and supported George McGovern. They
made a trip to Hanoi together. Fonda became pregnant and in
1973 she and Hayden were married. Their son, Troy, was born
in 1974. Also in the family was Jane's daughter, Vanessa,
from her marriage to French movie director, Roger Vadim.
In April of 1975, Tom Hayden decided to run against John
Tunney, the liberal democratic senator from California.
Surprisingly the people responded to his entrance into
politics. Although Hayden lost, he won a respectable 37
percent of the vote.
A rather interesting three-some developed in 1973 between
Jerry Brown, Hayden, and Fonda. They became allies when
3
Brown ran for governor in 1974. Brown appointed Hayden to
several key posts - the State Solar Council; California
representative to Western Sun; membership on the Southwest
Border Commission; and member of California's delegation to
the White House Conference on Balanced National Growth and
Economic Development.
All three have been extremely active in the anti-nuclear
movement.
And in 1982, the veteran agitator, founder of the radical
Students for a Democratic Society, anti-war protestor, member
of the infamous "Chicago Seven", and founder of the Campaign
for Economic Democracy, became a California Assemblyman from
the 44th Assembly district on Los Angeles' west side.
Hayden has published a book, "The American Future - New
Visions Beyond Old Frontiers", and his writings have appeared
in the Wall Street Journal, the Washington Post, The Nation
and other leading publications.
Sources: Esquire, 1980
Human Events, October 6, 1979
Palo Alto Times, May 8, 1971
McCalls, January 1978
California Journal, July 1976
3. CED's PURPOSE AND GOAL
On May 8th, 1979, the Articles of Incorporation of
California's Campaign for Economic Democracy were filed in
the office of the Secretary of State of California.
Item 1 under purposes and powers reads as follows: "The
specific and primary purpose for which this non-profit
corporation is organized is to provide a state-wide political
organization through which its members may promote and
implement economic democracy."
What is economic democracy? Simply stated it is the transfer
of economic decision making from the few to the many. It is a
form of socialism which seeks to redistribute the wealth of
the nation by eventually developing government subsidized
non-profit corporations in the areas of housing, food,
medicine, transportation, energy, and any other necessity
provided by private enterprise.
The program and tactics of economic democracy are outlined in
Economic Democracy The Challenge of the 1980"s,
4
co-authored by a close associate of Tom Hayden, Derek
Shearer, who writes that it is wrong and unfair that the U.S.
economy be controlled by corporate capitalists, "the stink in
our midst", who, together with another set of large
corporations - the banks - govern the capital accumulation
This book
process, and with it, patterns even America's relations with
in shotta
other nations. Our forefathers, says Shearer, fought to
maintain political democracy - political choice by the masses
County
instead by a single head or group of persons. The same
Library
rationale should be applied to the economy - production and
I have
investment decision making should be done by the workers and
your
consumers rather than by owners and managers.
now
He goes on to say that this reform logically should be done
by government. However, the government is dominated and
controlled by the corporate giants; therefore, it is
essential to first gain control of the government. In
researching the experiences of the industrial, politically
democratic countries in Western Europe, it was discovered
that they were not very successful with respect to economic
democracy. Though the major industries were nationalized, the
workers and consumers still had little to say about
production and distribution. In countries where political
power had been seized, no new benefits came to the masses,
mainly because those in political power did not know how to
manage "capital power". That is why Shearer concluded that,
in the next decade it will be necessary to build a mass
political movement in the program of economic democracy.
Shearer warned that the " 's' word - socialism" not be used.
"Substitute the words 'Economic Democracy'. They can be sold
door to door 'just like Fuller Brushes'.'
The CED has been putting forward a comprehensive economic
program in the context of a long term political strategy. The
first step was to organize people - not hard core activists
but regular working people with families and jobs - to become
politically active by taking steps, however small, in the
direction of democratic participation. Such steps could
include renters going to a building meeting to set up a
tenants' association; community residents appearing at a
meeting in support of bike lanes; individuals contributing a
small amount to support a campaign or initiative opposing the
dumping of nuclear subs off the California coast.
As Steve Frank, President of the California Republican
Assembly, said, "the principles of this organization seem
high, yet on analysis it is totalitarian in nature. Among
those principles are rent control, job control, overall
housing control
state control over the production and
means of distribution of energy sources, state owned banks,
PEROT'S too
and the 'social' use of pension funds. The CED is effective
because they take emotional issues and play on the heart
strings, without explaining the economic disasters they would
create.
The organization is not always the first to put forth an
issue (nuclear freeze, women's rights, gay rights, solar
energy) but it is quick to jump on the bandwagon and give
help in the form of demonstrators, organizational skills and
sometimes funds. It is important that the vision of economic
democracy begins to emerge as a majority viewpoint.
Another view of Shearer's is that we are a nation of
employees. The unions have emerged as the champions of the
working man. However, in reality they discipline their
members to work for the corporate dollar. True they have
obtained better working conditions, improved health and
safety regulations, and better wages, but have not obtained a
voice for the workers in the distribution of the capital
gained from their labors. Shearer thinks that the union
hierarchy has indeed been on the side of corporate
capitalists and has failed to promote the principles of
economic democracy, such as, how the plant is run and
eventual representation on corporate boards.
PERCT
Change to be effective must not come from the top down but
from the bottom up. Therefore, the CED has worked diligently
and hard to run candidates for school boards, city councils,
county supervisors, and have obtained appointments to various
commissions and agencies at all levels of government. Once in
office they push legislation, regulations, and ordinances,
all aimed to reduce corporate power and increase democratic
control over capital. There is hardly an election in which
some ballot measure or initiative does not stem from its
efforts. It is possible for a movement to lose many times in
the conventional sense - in elections, initiatives, or bills
in the legislature and yet win in the long run. The exposure
gained is very valuable.
The CED is also aware that, because we have a system with a
strong president and a Congress elected from single-member,
winner-take-all districts, ours is a two-party system making
the development of a third party almost impossible.
Consequently, members of the organization run in the
Democratic primaries. Its latest victory is the election of
Tom Hayden to the 44th Assembly district.
When a firm base has been established citywide and statewide,
it can be extended to the national level. Hayden and his
6
associates are laying the groundwork now. Through their
speakers bureau they have reached other progressive alliances
- a national coalition will be formed when the time is ripe.
The ultimate goal is a presidential candidate running on a
program of economic democracy in the Democratic primaries.
Even if unsuccessful the first few times, a number of things
could be accomplished:
development of a national mailing list of progressive
supporters and activists
public TV and radio spots, newspaper coverage, and
appearances on TV and radio spots required by
equal-time provisions
creation of a national alternative cabinet of
knowledgeable alternative policy experts who would
continue, after the campaign, to serve as critics of
existing policies and proponents of alternative
policies
identification and inspiration of new activists in
cities and states where primaries were held,
stimulating them to join the movement and to build up
a base in their own cities and states.
To the degree that CED has achieved acceptance in some
quarters within the political establishment in California, it
must be taken seriously. To underestimate the potential of a
movement that number among its members and supporters a
former Governor and Lieutenant Governor of California, a
now two)
prominent member of the U.S. House of Representatives and a
member of California's Assembly is to run the needless risk
of laying oneself open to an unpleasantly rude awakening a
few years hence. This is even more the case when a movement
enjoys, as CED does, close ties to a well-organized
nationwide apparatus of obviously radical complexion, The
Institute of Policy Studies.
Sources:
"Economic Democracy - The Challenge of the 1980's"
by Derek Shearer and Martin Carnoy (Shearer was
active in Hayden's 1976 race against U.S. Senator
John Tunney and was a charter member of the CED. He
is the husband of former Mayor Ruth Yanatta Goldway
(titles?) IN The ROWN Governorship PRIOR to ther Running
of Santa Monica) Goldway & SHEARER both were given yours
Heritage Foundation - Institution Analysis No. 13 for mailor
Oroville RWC Bulletin - April, 1982
Ske appt. her husband
D.S. as Planning Com,
of Santa monica,
ca
7
CED Articles of Incorporation
Statement by Jim Lynch, General Manager, Chico
Chamber of Commerce in April, 1982
4. CED's ORGANIZATION AND HOW THEY ARE FINANCED
Getting information on the organization and financing of the
CED is difficult because at times their activities are covert
or hidden in ambiguity. Yet, a study of what information is
available is useful.
ORGANIZATION
Rep.
The CED was organized in 1977 by Tom Hayden, Jane Fonda, Ron
Dellums, Mervyn Dymally, Derek Shearer and Cesar Chavez. The
CED consists of 11,000-12,000 members in 30 chapters
throughout California, including 430-1,000 activist members.
These activists attend weekly meetings, integrate CED work
into their daily lives and promote CED causes in
organizations ranging from churches to Scouts. They are
available to campaign for CED and CED chosen candidates and
to march in demonstrations and rallies.
A statewide steering committee, chaired by Tom Hayden and
composed of 40 members elected from local chapters, sets
policy. There is also a 7 member executive committee chaired
by Hayden.
A paid staff of 21 coordinates activities, lobbies for CED
legislation and publishes a monthly newsletter. About 51 paid
canvassers are hired for door to door membership drives.
Several separate, tax-exempt foundations are part of the
organization. They are: 1. The Laurel Springs Educational
Fund, 2. an Alternative Energy and Cancer Fund with a budget
of $85,000, and 3. a political action group to provide
contributions to CED backed candidates with a budget of
$200,000 annually.
While not a part of CED, to understand its program and
activities one must mention several other organizations:
1. The Institute for Policy Studies (IPS)
2. The Foundation for National Progress (FNP). It
carries out on the west coast activities of the IPS and
8
has many subsidiaries such as the Pacific Alliance, the
New School for Democratic Management, the Solar Center,
and a Youth Project.
3. The California Public Policy Center, (CPPC), which is
a tax-exempt superstructure of affiliated organizations
that interlock with the IPS and FNP as an outlet for IPS
activism on the west coast.
This is a brief overview of the CED. Their organization is
dedicated to destroying freedom and making America a
socialist country. Their organizational game plan is first
the city councils, then the state legislature and ultimately
Hayden as President.
FINANCING
The budget for the CED is estimated at about $300,000-
$500,000 annually. It is made up in a variety of ways: 1.
dues, mailings and low wages; 2. contributions from other
organizations; 3. government grants; and 4. money from Jane
Fonda and friends.
Regarding dues, mailings and low wages, according to the
August 1979 California Journal, each of CED's paid staff
members, regardless of job, received only $800 per month,
which is far below average wages. In 1981, with 21 staff
members, salaries would have had to represent a minimum
outlay of $201,690 per month, slightly in excess of 2/3 of
the organization's total budget. CED literature shows an
annual membership fee of $15 per person. If Hayden's
membership estimate of 8,000 is correct the group would
collect $120,000 from that source. On the other hand, if only
the activist members paid dues, the income from dues is
greatly reduced. In any event, dues and mailings fall far
short of needed financing.
The second source, contributions from organizations, is hard
to pin down. A Heritage Foundation analysis points out that
the CED has received funds from organizations tied to the
leftist movement in general and to the Institute for Policy
Studies (IPS) in particular. This includes groups that fund
IPS, as well as church groups and government agencies like
the National Endowment for the Arts and Humanities and
ACTION, and a $2,000 grant from the Foundation for National
Progress (FNP), the Pacific Alliance, and the California
Public Policy Center.
Third, government grants is of special interest to all
taxpayers. An example of the government money and help the
9
CED has received is a grant of $126,000 in Comprehensive
Employment and Training Act (CETA) funds to the Center for
New Corporate Priorities. Ruth Yannata Goldway, a CED member
of the Santa Monica City Council, received her salary from
this CETA grant. She subsequently placed the 57 CETA trainees
with several community groups, most of whom were CED
oriented. The Heritage Foundation pointed out the U.S.
Department of Labor determined there is "prosecutive merit"
in allegations that CETA funds had been used to subsidize
CED-connected political activity.
On October 29, 1979, Barrons reported that, "Organizations
with CED alliances (e.g. the Laurel Springs Educational
Center, a training institute for community organizers) have
found a place at the public trough via CETA or VISTA money. "
Joe Kotkin, in the July 5, 1979, Washington Post, noted that,
"Reports have circulated widely that some funds from the
Federal Comprehensive Employment and Training Act (CETA)
program are going to CED members and their allies working in
political campaigns."
Even the Berkeley Barb, despite it's radical orientation,
accused Hayden of exploiting government money in the solar
movement for his political machine. It is a fact that Hayden
has directed federal money from Western Sun (a federal solar
energy project which he heads) into groups affiliated with
the CED and has put CED members on the payroll of Western
Sun.
A Santa Monica crime control program called Communitas in
1978 received a grant for $223,274 for crime control.
Actually the money was used for block organizing and precinct
work that resulted in the CED passing its rent control
measure and electing their candidates to take over the city
council.
Finally, the biggest source of money is Jane Fonda and her
friends. The Libertarian Review stated that CED's budget is
"raised mostly by Fonda and her Hollywood connections. The
magazine Mother Jones noted that "Hayden is built into the
driver's seat, and Fonda buys most of the gas. " Parade
Magazine, in 1979, noted Fonda is likely to earn anywhere
between $10 to $50 million by 1985". She is also raking in
money from her best selling book and record, "Workout", and
her exercise studios. An article by Marjorie Pope in
Challenge estimated this source at $300,000 annually. Pope
says, "The ability of Fonda to bring in money, through direct
contributions, fundraising efforts and "Workout", will
continue to provide financial stability for the CED."
10
The CED is like a rattlesnake eating and growing, and sunning
itself and growing. He may not be a danger today but he
should not be ignored.
Sources: California Journal, August, 1979
Speech by Steve Frank
Berkeley Citizens United bulletin
Heritage Foundation Institute Analysis No. 13,14,15
NFRW Challenge, November, 1982
California Journal, January, 1982
5. CED TARGETS FOR THE 80's
The Campaign for Economic Democracy (CED) targets primarily
local, and some state offices. On the state legislative level
in 1984, the CED plans to target the 22nd State Senate
district, and Assembly districts in San Diego and Kern
counties.
County Boards of Supervisors are a major concern to the CED.
Target boards for 1984 include the boards in San Diego, San
Francisco, Sacramento, Kern and Humboldt counties.
Numerous city councils were targeted for 1983, including
those in Los Angeles, San Diego, Bakersfield, Arcata, and
Chico. In 1984, the CED will target the Hayward city council,
and in 1985, the San Diego city council again will be
targeted.
While the CED is known for running school and other community
board candidates, only one school board was specifically
mentioned as a target, that being the Hayward school board.
The CED works extensively to take command of the Democrat
party. Democrat central committees are a particular target.
County committees listed as targets include those in Orange,
San Fransico, Sacramento, Kern, Alameda, and Butte counties.
In Sonoma county, the "county central committees" (plural)
are targeted for takeover.
It is useful to know which seats the CED plans to target, but
this information is not always casually distributed, and it
will change over time. Therefore, we must maintain constant
vigilance on local issues and candidates. While we may not
always have specific information that a seat is a CED target,
there are target area profile characteristics that can tip us
off.
11
The characteristics of target areas tend to be those that
have high populations of students or retired people, or that
have high unemployment rates.
Another fact we need to bear in mind is that the CED is part
of a larger movement towards "economic democracy' - that is,
socialism. One of the main tenents of the movement is that
their goals cannot be achieved by one organization alone;
that it must be a network of groups that have the same,
similar or compatable goals.
We also must remember that while the vast majority of
"economic democracy" movement candidates are Democrats, the
movement also fields or supports sympathetic candidates who
are (mis) registered Republicans.
Key issues of the network groups are the environment, land
use, rent control, and unemployment. Local issues and
movements that should act as "red flags" are efforts to
establish bike lanes, recycling centers, food co-ops,
restrictive land use policies, tenant's unions, rent control
laws, alternative energy sources, and anti-nuclear
demonstrations.
Sources:
"The Ten Steps for Taking Over A City," by Donald
Howland, in the Sacramento Apartment Association
Newsletter, July, 1982
"Tom Hayden's 5-Year Plan for California," by James
M. Harmon, in Apartment Management magazine, pub. by
Tri-County Apartment Owners Association, January,
1982
Economic Democracy: The Challenge of the 1980"s, by
Martin Carnoy and Derek Shearer, C. 1980 by M. E.
Sharpe, Inc., White Plains, N. Y. Distributed by
Pantheon Books, division of Random House, Inc.
6. CED's SUCCESSES AND FAILURES AND ORGANIZED OPPOSITION GROUPS
The plan for the New American Revolution gained viable
momentum before the public became aware of the fact that CED
is an organization headed by an activist in rebellion against
United States policies both at home and abroad. Members of
CED and SDS (Students for a Democratic Society) were
unobstrusively recruiting, organizing and working quietly in
the system building power before the alphabet was attributed
12
to the Hayden-Fonda leftist activists. Action was relatively
unhampered by any publicity or recognition of a leftist
movement.
Candidates from the youthful organizations are more than
willing to run for local offices with the knowledge that the
CED Political Action Fund will finance their campaign. The
availability of news stories, printing, radio and television
clips created by skilled professionals for CED supported
canididates discourages the local potential candidate from
competing with this well-financed machine.
The success of the CED planners to form coalitions with the
United Farm Workers, State AFL-CIO, Friends of the Earth,
Environmental Defense Fund, and the many off-shoot groups is
proof of their organizing ability. It is to be noted that
most candidates running with CED support attempt to duck any
public acknowledgment of a tie-in. But the source of their
funds can be determined by the campaign reports in the County
Clerk's office.
The CED members plus members of coalition workers have proven
that their precinct work is superior to any party
organization as it now exists. The door-to-door selling of
candidates like "selling Fuller brushes" has paid off in
election victories.
The CED claims fifty-three organization-supported candidates
holding local office in cities and counties around the state,
including state Assemblymen Tom Bates and Tom Hayden and U.S.
Representative Ron Dellums. About 400 CED loyalists are
members of the Democrat State Central Committee. This power
base of votes is to be reckoned with in determining the
elective leaders of that party.
We who are partisans of private enterprise must develop
effective antidotes to the sickness that is weakening the
whole spectrum of private endeavor. Indeed, capitalism is an
endangered species, and if we are not to continue down the
path to the total triumph of the welfare state, we must reach
the conscience of the opinion-makers and voters of this
country.
The leader in anti far-left liberalism is President Reagan.
The Republican party is a barrier to a bit-by-bit break down
of our constitutional and capitalistic system.
The Pacific Legal Foundation is a public interest law firm
defending personal freedoms and the national interest
whenever they are threatened.
13
So far known organized opposition groups are:
Hayden's The Armed Forces Retirees - an endeavor to Tom
membership in the Assembly declared illegal. have
The California Republican Assembly of Santa Ana
Apartment Owners Association
Citizens of Butte County
Santa Cruz Citizens Against Rent Control
The improved unity of that developed precinct organizations must be
choose to so run for candidates elective office. of reason and responsibility greatly will
In1985
Note: after severa/ defeats at
the Voting box, the C.E. D.
Name was dumped for
a new one ;
"Campaign California"
is to "a close friend & adviser
1992 - DEREK SHEARER
Bill Presidential Cancidate Gov.
See 13 July 1992 1 wall St. Journal
Clinton of arkansas.
and of Sep 92 WSJ
oncl
!
10 92 WSJ J
encl
I
13
Sep Sep 92 Sacramento Bee, (Sacremento Calif.)
14
enclosed -5 articles by haves Barnett for
for the Sacramento thream 1983-84(i)
#223 in particular for De Shedrer
BIBLIOGRAPHY
California Journal, July 1976, August 1979, August 1978, and
January 1982
Esquire Magazine, May 1980
The Heritage Foundation, Institution Analysis, Nos. 13, 14,
and 15
The Network of Networks (yet to be published) by the National
Foundation to Fight Political Corruption, Inc.
Human Events, October 6, 1979
Palo Alto Times, May 8, 1971
McCalls, January 1978
"Economic Democracy - The Challenge of the 1980's" by Derek
Shearer and Martin Carnoy
Oroville RWC Bulletin, April 1982
CED Articles of Incorporation
Statement by Jim Lynch, General Manager, Chico Chamber of
Commerce, April 1982
Challenge, a NFRW publication, November 1982
Speech by Steve Frank, President of CRA
Berkeley Citizens United Bulletin
Fold
at
right of the return address
US CA PS
CERTIFIED
P 369 190 961
MAIL
OCT 191992 19
CHIEF of STAFF JAMES BAKER
THE WHITE HOUSE
WASH. D.C.
20500
+.
Eileen and Marvon Alverson
12100 E. 65th Ct.
Timber Valley
Kansas City, Missouri 64133
new
pupport
pusgentions
816-358-9811
10/14/92
Mr. James Baha
White House
Washmagton D.C.
Dear M Baher
I ame Repablican all the may. a few
thoughts concerning the campaign
Clinton needs th heashed where all the
vocal Black leaders and what have they
been promised
The Clinton advisors and campaig staff
are all goon for examination They are a perfect
example of what type people me will have -
hey position of Clenton win Carmell (probath
spelled wrong) is the typical Louision
politoria He will do anything, anyway to be
successful. you can't be a gestlem and
compute with this ty per person
pachaged offered to more fastures to come to
you need of check the arkansas econic
their state. Expecially what he has told
Eileen and Marvon Alverson
12100 E. 65th Ct.
Timber Valley
Kansas City, Missouri 64133
816-358-9811
com panis about bearging Union out. Has
he done anything to help Wal Mart stay
non union m their Ashaman ware house
Limbongh is a wild man but he has a terifer
I know many people think Bush
following and hnow the issues. If you
could get on TV prime time for a for program
would be fandastic T There are many puts
of the country where he is not hnom.
Keys my the good mark & tell George
to give sin Hell tomorrow night.
Sincerely Main R. alren
Frank Hulsey
puppat/
October 14, 1992
NRN
The Honorable James Baker
Chief of Staff
The White House
Washington, D, C,
Dear Mr. Baker:
I have listened to the debates and some of the political
speeches, I have agonized over the failure to hear anyone
say publicly that President Bush, on the eve of the
Gulf war, put together the most powerful collaboration of
of nations the world has ever known, for the security of
mankind.
It was one of his finest hours and demonstrates leadership
of the highest order. That brings respect to this country
seldom known to our leadership. Let's re-elect him!
Sincerely,
Trank Hulay
Frank Hulsey
217 Monterey Circle
Gadsden, Alabama 35901
puggestions
Three Suggestions For Countering Clinton:
NEW
1) Tuesday night, in passing, Clinton responded to the lawyer-tort problem
on medical costs "we will propose guidelines that, if the physician stays
within he will be protected againsts suits."
Do you realize the implications of that mind-set?!
The government bureacracy is going to tell my doctor how to treat me,
and if he strays out of those guidelines look out for the lawyers!
The governement can't even deliver a letter much less a baby.
2) The President has to push the basic difference between the parties
during the third debate: Namely, praise Clinton's performance during
the 2nd debate: he had an answer for every problem, a government answer
for every problem, a government program for every problem, a new government
bureacracy for every problem. So does every socialist state. We stand
for limited government. Thats the difference.
3) A good example of government vs the individual is choice in education.
Look at the attached article on NYC school manuals.
First graders are to be taught alternative life styles.
The teachers' manual tells how to teach kids to seduce each other without
embarrassment.
The manual tells the kids they have a right to have sex with anyone they
please. That's directly contrary to the Ten Commandments but if a teacher
taught that in a public school, a lawyer form the ACLU would be there
with a subpoena the next day. Thats why parents have to be given the
choice of school systems rather than a school bureacracy. Governor Clinton's
program would deny that choice to parents.
4) Note the phrase in the article that religious and other leaders opposed
to distributing condoms to grade school kids "have their heads in the
sand:"
That is the same phrase Gore used repeatedly debating Quayle. That must
be a slogan of the ultra liberals. Again, what the parents want is not
important in Clinton's program.
David F. Born
Senior Vice President
Investment Officer
Butcher & Singer
Park Place, Suite 100
10 West Streetsboro Street
Akron (216) 650-1177
Hudson, Ohio 44236
Cleveland (216) 656-3466
(800) 777-1176
Fax (216) 650-2495
Member New York Stock Exchange
A division of Wheat, First Securities, Inc.,
WSJ Oct
A18
REVIEW & OUTLOOK
The Parents Rebel-II
Starting at 10 this morning, crowds
stamp of official approval on early sex-
of parents and other concerned citi-
ual activity, while saying compara-
zens will be gathering in front of New
tively little about abstinence - the one
York City's Board of Education head-
sure way of preventing AIDS.
quarters in Brooklyn. This army, ex-
The condom pushers and advanced
pected to be large, will be forming up
sex education activists argue that op-
to protest the program created by
ponents such as Dr. Impellizeri or the
especially the parents
Board of Education bureaucrats and
Rev. Michel Faulkner of New York's
AIDS activists, introducing condom
Calvary Baptist Church have their
use to schoolchildren. The parents also
Gore's favorite phrase
heads in the sand."
will have something to say about the
Rev. Faulkner replies: "Those of
so-called Children of the Rainbow cur-
us who don't think its a foregone con-
riculum, whose teachers guide
clusion that children can't control
stresses the desirability of instructing
themselves, those of us who fought for
first-graders on sexual life styles.
the emphasis on abstinence, rather
We reported on the early phase of
than on condoms, are attacked as 'reli-
this movement last month ("The Par-
gious. That's quite a charge today."
ents Rebel," Sept. 8). Then, mostly
He adds that "the vast majority of peo-
black and Hispanic parents protested
ple fighting for the emphasis on absti-
these programs in
nence are parents.
front of New
The mind-set of the visionaries
York's City Hall
finds perfect expression in another
in
Manhattan.
section of the health department's
The movement is
pamphlet, which tells students they
something of an
on
have the right to decide whether to
embarrassment
have sex and who to have it with."
to cosmopolitan
Reading this, it's not hard to see why
liberalism, but it
reading and math scores don't im-
looks as if it's
prove much, or why if you ask students
growing
What
where Europe is, they may tell you it's
the parents are
the capital of Spain, or possibly in
protesting is the
Cleveland. What with the distribution
schools' attempt Rev. Michel Faulkner
of sex liberation manifestoes, class-
to hijack what belongs to them - the
room demonstrations of proper con-
spiritual, sexual and social education
dom use and lessons on gender bias
of their children.
and alternate life styles it's not hard to
As New York goes, a spokesman for
see why there's little room left for
school Chancellor Joseph Fernandez
writing, spelling or geography.
tells us, SO goes the nation. School pro-
A recent report in the Washington
grams similar to those in New York,
Post, describing the AIDS prevention
flying under the banner of AIDS pre-
vention, have been established in Phil-
program in the District's schools,
adelphia, Washington D.C., Chicago,
quotes Caitlin Ryan, chief of the Dis-
Washington State and other regions.
trict's Agency for HIV/AIDS, on how
By now 30 school systems have
much effort goes into getting condoms
adopted the New York model.
that appeal to high school students.
This means, for one thing, that
They are trying new brands all the
children in many places may soon be
time, she explained, and they have or-
dered "some Afrocentric brands. It
getting educational pamphlets such as
the one put out by the N.Y.C. Health
has packaging that is attractive to the
Department and distributed in some
African-American population."
New York City schools, illustrating
Advocates for restoring sanity,
ways that students can go about se-
such as protest organizer, Delores Ayl-
ducing one another without being
ing, the Rev. Faulkner and all those
troubled by embarrassment over the
parents who will be gathered in front
issue of condoms. The cool technique,
of New York's Board of Ed. building
this manual tells students, is to start
today, have decided to fight for the
with ploys such as, "Getting down
minds and hearts of the young. She did
with you is great. It could be even bet-
not, said Bobbie Merritt, a minority
ter if we used rubbers. How about try-
mother, go through the struggles of be-
ing the red ones tonight?"
ing a single parent and putting her
Board of Education member Dr.
daughter through college SO that she
Irene Impellizeri says that so-called
could live to see her grandchild being
AIDS prevention teaching like this
taught about condoms and oral and
sells students the line that teen-age
anal sex, in grade school.
sex is inevitable, and that using a con-
She speaks, like the parents gath-
dom is "responsible." Dr. Impellizeri,
ering in Brooklyn today, for the
who has conducted an heroic cam-
healthier quarters of our society - the
paign against the AIDS education pro-
sort on which civilizations depend.
gram, argues that it implicitly puts the
Their rebellion is a heartening sign.
David Born
1
P.O. Box 205
AKRON, PM OH 443
Hudson OH 44236
16 OCT
1992
USA
Jomes Baker
C/o White House
Washington D.C. 20500
S.H. Bud Scott
13185 Brighton Road
10/14/92
Brighton, Colorado 80601
(303) 659-0800
suggestion
Jim Baker
Assist. to The President
NCN
Dear Mr. Baker
As a Life Long Republican, I certainly hope
that George Bush wins!!
A few suggestions:
/. AlwaRefer to The Democrats as The Liboralistic
Loft wind
2. Place the blame for our problems - It has
been caused by years of years of Run-a-way Tax
of Spend policies by the Liberalistic Leftwing - This
has caused our terrible deficit of unbalanced budget.
?. Stress The basic philosophical difference between
the Liberalistic Left wind of The Republicans.
4. More of more government seldom solves
5. Explain The reason for The tay increase.
The problems. It just creates bigger problems.
6. Leta have more press releases about Clintons
adulterous practices
Dood Luck of god Bless you!
Budshott
JOHN W. EARLE
9574 LORENZO ST
WESTERN
LAGRANGE CA 95329 19PM
UNION MAILGRAM®
TM
UNITED STATES
POSTAL SERVICE
1-003378S293 10/19/92 ICS IPMRNCZ CSP WHSA
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puggestions
HON. JAMES BAKER
PRESIDENTIAL ADVISOR, WHITE HOUSE
WASHINGTON DC 20500
MRN
TO HELP GEORGE BUSH'S REELECTION, WHY NOT APPOINT ROSS PEROT ECONOMIC
CZAR?
TO SOLVE THE BIG CITY POLICE PROBLEM AND THE TROOP CUTBACK
UNEMPLOYMENT PROBLEM- THE BIG CITIES NEED MORE POLICE AND THE ARMED
FORCES HAVE TO CUT THEIR RANKS IN THE BUDGET CUT. USE SOME OF THE
MONEY SAVED IN THE CUTBACK TO PAY FOR AND TRAIN EX-MILITARY MEN TO
HANDLE THE BIG CITY POLICE WORK. SET UP TRAINING CENTERS RUN BY THE
NATIONAL POLICE ACADEMY. GRADUATES ARE ASSIGNED TO THE BIG CITIES TO
FILL IN AND ARE PAID FOR BY THIS FUND FOR A SPECIFIED LENGTH OF TIME.
GRADUATES MAY WANT TO JOIN THE ARMED FORCES RESERVE CORPS.
JOHN W. EARLE
20:38 EST
MGMCOMP
MGM CS (10/89)
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Mr. James Baker t Staff
The White House
1600 Pennsylvania Avenue
MBN
Washington, D.C. 20000
October 13, 1992
Dear Sir:
I am writing to you as a very concerned citizen.
If you or someone on your staff sees this letter before
Election Day, I would like you, in the strongest possible
terms, to come down forcefully on Mr. Clinton and Mr. Gore
and the rest of the Democratic Machine.
I have all the love and respect for the President
and believe that he is the greatest President that we have
ever had. However, he is losing this election, because he
is not coming down hard on Clinton/Gore. It seems to me
that he is afraid of offending anyone.
If you think back to 1988, He did'nt show any force
and he almost lost the election, when he became tough,
the tables were turned in his favor.
One thing I can't understand is why does the Press
still crucify the Vice President regarding the draft,
but when it comes to Clinton, they don't give a damn!
What gives???
Please do all you can to save this election! We can't
afford President Clinton. Please expose him for the rapist
that he is!!!!
Sincerely,
Steven janick
MEN
10-16-92
MR. BAKer,
I AM A very concerned citizen IN
ANdrews TeXAS.
I wrote A Letter to The President
back IN December or SANUARY ANd
stressed heavily ThAt he should get More
MessAges out to The Public About the
condition OF The economy or tell
The AMERICAN People he hAd developed
A heAlth Problem ANd decided to
NOT Seek A second term.
I believe the President WAS 50
POPULAr A Fter The Desert storm WAr
ThAt he thought NO OPPONENT would
be A Threat to his re-election
but NOW I AM sure ThAt he KNOWS
ThAT Bill Clinton IS A serious
Threat to NOT ONLY his re-election
but Also to AMericA.
I have AlWAYS tried to reAd the
News PAPers, the WALL street Sournal,
U.S. News of world reports ANd MANY
other Publications to Try to STAY
INFOrmed.
MY WIFE does NOT reAd that Much
ANd she told Me ThAT she would
Never Fote For George Bush because
he hAd did All The Things For All
The rest OF The world ANd Let
The UNIted STATES SUFFer.
After MR. PeroT got IN The rAce, dropped
OUT OF The FACE TheN re-entered The
FACE, MY WIFE told Me she could
NOT vote For Ross Perot.
MY WIFe ANd I were both FAISED
WP being Democrats, but believe we
Should Vôte For The Person ANd
have both voted For The Republican
Presidents For The LAST 20 Years or More,
but This IS The First Year ThAt I have
hAd ANY Problem with her supporting
MY Views.
I have brought This UP so ThAT
MAYbe you CAN UNderstANd WhAt
I Think IT will TAKe to get
President Bush re-elected.
I ThiNK IF he does NOT show A
Substantial gAIN IN The Polls AFTer
The Next debate ThAt he MUST
get These MessAges out to the
voters before NO vember the third,
The Threat OF COMMUNISM ANd NUCleAr
WAr WAS the biggest Threat to AMericA
so we SeNT MR BAKer ANd other experts
to help, Then CAMe SANDAM Hussien
who would try to control All OF The 01/
ANd build UP A NUCLEAR ANd CheMICAL
threat to the world, so SINCE
he WAS The Number oNe Threat to
The world, AgAiN MR BAKer ANd
his TeAM were used to help IN solving
THAT ProbleM.
NOW The biggest Threat to AMERICA
IS Bill Clinton ANd The DeMocrAts
IN congress, so MR BAKer ANd his
TeAM have been Pulled IN to AgAiN
hANdle The Number one Problem.
AS SOON AS we Cross This hurdle
we WILL go to work ON the economy
ANd AgAIN we will wse MR BAKERAND
his teAM ON The Number ONE Problem.
Then LAIN ThAT IF A Threat broke
out IN A Foreign COUNTRY AgAIN ThAT
experts would be Moved AgAIN IN the
direction OF the NUMber ONe Problem.
MR Bush hAs beeN blAMed For MANY
things ThAt Are NOT his FAULT, but
I AM NOT sure ThAt The Average
Voter IS INFOrMed eNough to
WNderstand iT.
MR Bush Needs to exPlAIN Why he
IS For A CAPITAL GAINS TAX CUT
ANd Then Vetos The bill because it
Also CONTAINS A TAX INCrease For
the WeALthY, The Public does NOT
UNderStANd A LINE Item Veto,
I Think The President Needs to bring
IN Front OF The Voters some bill
he did NOT Like IN The SAME bill
ThAT hAd Things he Liked ANd things
ANd exPlAIN why he could NOT support
IT, or Like When he raised TAXES to
get support ON something else.
I Think The President Needs to eXPlAIN
why he did NOT support The FAMILY
LeAve PlAN. I KNOW we don't Need the
FederAL GoverNMeNT to tell A COMPANY
That it hAs to do ANYThing, FAMILY
LeAve, heAlth CAre PLANS, ANd other
Fringe benefits Are PArt OF A
beNeFiT PACKAge Just Like SOMANY SICK
days with PAY or A VACATION PIAN, ANd
should be OPTIONAL ANd create COMPETITION
From oNe COMPANY to ANd ther, but MR
because MR Bush IS stressing FAMILY VALUES,
clinton IS USINg IT AgAINST MR Bush
The President Needs to go INTO detail
About something Like The FAMILY LeAVe,
IF you hAd A FAMILY LeAve PLAN ThAT
WAS MANd tory by The FederAL GoverNMent
but it exempt SMALL BUSINESS with
Less Than 200 eMPloYees.
Why 200 ? why NOT 150? IF you bAd
205 eMPloyees do you LAY OFF 5 so
you don't come under The Regulation?
Why NOT Form ANoTher COMPANY ANd
hAve 150 eMPloyees IN eAch ANd NOT
300 IN ONe,
WhAt About The eMPloyee who would
WANT LeAve to be with his grandson
because he hAs beeN TAISING him, or
his stepdAughter who hAS No ONe
else?
I KNOW these things should Not be
hANdled by the FederAL Government
but I AM NOT sure ThAt the
Average voter is well enough INFOrmed,
I Think The President MUST come down
very hArd ON why we CAN NOT hAve
A LiberAL congress ANd A DeMOCRAT
PresideNT ANd survive 4 YeArs,
I ThiNK The Public WANTS A work
Program to rePlAce The WellFAre
Program. I Think the Public Needs to be told
ThAt MR Bush will do whatever IS
right For AMericA by USING WhAT People
ANd Power IS AVAILAble to him, but
SOME voters do NOT UNder stand why he
CAN SeNd troops to IrAg with OUT the support
From congress but CAN Not hANdle domestic
ITEMS because OF CONgressoNAL INterFerence,
I do NOT believe ThAT supporting FAMILY
VALUES ANd bringing UP Character
issues AgAINST Clinton will WIN
This election.
The President MUST exPlAINhis
Role IN government his PAST
PerForMANce, which IS great, his
PLANS For The Future, including change
IN etc, elected Personnel, term LIMITATIONS,
Then A strong COMMITMENT to cut
The SAlArles or reduce the Number
OF Government eMPloYees would be
A good show toward economic recovery.
I ThiNK he ProbAbLY Needs to Firm WP
his POSITION ANd support For DAN QUAYLE
who has MAtured greatly IN The PAST 4
YeArs ANd ALSO gAiNed A great AMOUNT
OF respect From his V.P. debate.
MR BAKer IF you CAN use ANY of This
to help IN The re-election OF President
Bush, IT would PleAse Me very Much.
I AM deeply concerned ANd you
have MY support
I AM sorry I do NOT hAve
A secre TARY to type This Forme.
I hope you CAN reAd IT ANd Please
don't Let The President Let UP NOW.
SINCERLY
Ja. (Jess) Hyatt
J.A. (Jess) Hyatt
The Whis
1192
The The Home
1792
P.O. Box 1902
Andrews, Texas
79714
WIDLAND, PM: It 197
1992
16 OCT
LYUSA
29USA
1972
MLDCR
Mr. James Baker
1600 Penn. Ave.
Washington, D.C.
20000-525
suggestions pus gestions
Adlai E. Stevenson High School
1980 Lafayette Avenue
Bronx, New York 10473
(718) 918-2700
His Excellency James A. Baker
Nun
NRN
White House Chief of Staff
The White House
1600 Pennsylvania Avenue
Washington, D.C. 20500
Dear Mr. Baker:
THE RACIAL CRISIS MUST BE RESOLVED IMMEDIATELY IN ORDER TO ACHIEVE AN
OVERWHELMING VICTORY IN NOVEMBER FOR PRESIDENT BUSH. AT THE SAME TIME,
THE ECONOMIC CRISIS WILL GREATLY IMPROVE.
Mr. Chief of Staff, I call on you to recruit the services of a dynamic
American, Mrs. Christina North. Because of this great lady, black
youngsters went off drugs cold turkey and unexploited whites and non-
whites support her.
Did you receive my letter of three weeks ago? Apparently not. Mrs.
North sent the enclosure to the Montel Williams and Faith Daniels shows.
The Faith Daniels Show (NBC) contacted Mrs. North about appearing on
October 12.
Mr. Baker, my sincere gut feeling is that Mrs. North is President Bush'
last great hope for victory in November and that without the formidable
intellect and storehouse of original ideas that she has ready to employ,
then Mr. Bush truly will be dead in the water and it need not be that
way.
You may reach Mrs. North at: (718) 784-7705. Her Address:
41-06 12th Street
Long Island City, New York 11101
Sanch Sincerely cotton
STOP HOLLERING DISCRIMINATION
Kenneth Cotton
ENTREPRENEURS/PROFESSIONAL - WHITE or BLUE COLLAR
Teacher of Social Studies
FOR PEBATE
YOUR SELF-ESTEEM & CONFIDENCE HAS ACQUIRED
YOUR PRESENT SUCCESS
TONIGHT
ENHANCE YOUR PRESENT ACHIEVEMENT WITH GRADUATION
OF 10% OR 25% OF PERSONAL DIGNITY YOU NOW LACK
TO CEASE REJECTION OR EXCLUSION
"CORPORATIONS - BUSINESSES IMPROVE PRODUCTIVITY -
EMPLOYEE RELATIONS EN MASSE."
"GUARANTEED" RESULTS IN 3 MONTHS
FULL EQUALITY IS A PHONE CALL AWAY
(718) 784-7705
M-F 9:00am - 4:00pm
R.NC.24278806
preggestins
Oct pupport 19, 1992
Mr. James Baker
Chief of Staff
The White House
1600 Pennsylvania Ave, N.W.
Washington, D.C. 20500
MeN
Dear Mr. Baker,
I am writing to you as a strong supporter of the President. I
have been watching the campaign very closely and am naturally
concerned with the trend thus far.
I make no claim here of any political expertise, and you may not
welcome any more unsolicited advice regarding the campaign, but I
feel compelled to throw my "two-bits" in, if you will allow me.
I want to pass along some thoughts - a summary really - some of
mine, some of others, of the kind of things I would like to hear
the President say.
In talking with people about the campaign, I find that those who
support the Clinton/Gore ticket never really address the issues.
They are emotional in their support rather than logical or
rational. They always repeat the phrases/sound bites of the
democrats (and the media, who are unabashed in their support of
the democrats), and do not want to be drawn into a discussion of
the facts. The Perot supporters seem to fall into two groups,
one logical/rational, the other emotional.
I believe the President must go back to the basics and set out
the real records in a forceful, straightforward way. There is
nothing to be gained in discussing character issues. The
Clinton/Gore supporters, and some of the Perot supporters, are
dealing in emotion and have come to accept the flawed characters.
No amount of logic is going to sway them in this area.
I believe the best approach is to let Clinton/Gore be defeated by
their records, and the President can win on his. Clinton/Gore
represent the truely failed philosophy of socialism and their
records show them to be far out liberals in moderate packaging.
I will list some of the slogans/soundbites used against the
President, and the kind of response I would like to hear from the
President.
Slogans: "The President can't run on his record, so he is
attacking me personally/A failed presidency/He hasn't done
anything in the last four years/Failed economic policy/Trickle
down economics has failed/Worst recession since the Great
Depression."
The Record:
The "Reagan/Bush/Quayle" record (in quotes because this is what
the democrats call it) is one of unqualified success.
In international affairs: haven't done very much besides winning
a cold war that had dogged the country since the end of World War
II, won a couple of little hot wars too. Oversaw the breakup of
the Soviet Union and the turn to democracy there, as well as in
more than thirty other countries around the world (including
Nicaragua by the way). Brought the world back from the brink of
thermonuclear war - in essence, ironically making the world safe
for domestic politics once again! It is no small wonder the
democrats and the media do not want to talk about world politics.
They just dismiss all of these incredible accomplishments as
inevitable, ancient history, having no bearing on the future.
In domestic affairs:
The last twelve years have produced the longest, strongest
peacetime expansion of the U.S. economy of any period in our
history. Even factoring in the worldwide recessions that have
occurred, the Reagan and Bush Administrations have produced more
than 20 million new jobs, good jobs. The unemployment rate today
is too high, but it is not very different than it was in 1980.
This is remarkable since the number of workers has increased by
the millions over these last twelve years. This means that
millions more Americans are working today, even with the
unemployment rate as it is! The other major measurements of the
economy are shining: interest rates and inflation are at
historic lows, half what they were at the end of the Carter
Adminstration! "Trickle Down Economics" is not the invention of
the Reagan/Bush Administrations. It is a derogatory term
invented by the democrats to describe our position that you have
to be supportive of capital formation in order to have
capitalism; that you have to be supportive of entrepeneurship and
small business if you want new jobs to be created (because that's
where most of the jobs are created); and that if you overregulate
and overtax, you will destroy jobs. The logic of these concepts
remains elusive to the ruling democrats in the congress, and the
democrat presidential candidates as well. (with thanks to Jack
Kemp).
Slogan: "You can't trust Bush on taxes/Broke the Read-My-Lips
promise.
The Record: The President was misled by the democrat
congressional leadership ("lied to" would be more accurate) that
they would produce spending cuts if he would sign their tax
increase. His mistake, and he freely admits it was a mistake,
was trusting these people and taking their word. It turns out
their word was no better than their personal checks. The fact is
the President has vetoed, or threatened to veto, many (at least
thirty-something) tax increase bills the congress has initiated,
many times hidden within other legislation the President wanted.
This charge is particularly ironic when it comes from none other
than Senator Al Gore, who is himself one of the power kingpins in
that same democrat-controlled congress, and was a staunch
supporter of that tax increase, as well as virtually every other
tax increase! The record is clear: for the last four years, the
President's veto has been the only thing standing between the
insatiable appetite for new taxes in the democrat-controlled
congress and the working family's pockets.
Slogan: "Gridlock between the White House and the congress"
The Record: This one is absolutely true! But there is good news
and bad news here. First the bad news: the gridlock that comes
from the congress's lack of motivation to pass any of the
President's domestic programs. Ross Perot said during the
debates that there are plenty of smart people in Washington, and
plenty of good ideas laying around not getting done. He's right
on the money. Many of these smart people work for the President
and they have put those good ideas into legislative proposals and
sent them over to the congress. The congressional leadership
promptly deposited them in the capital dumpster. The democrat-
controlled congress has had absolutely no interest in a
recovering economy in this election campaign. Not only have they
been eyeing the White House job, they are also trying to get
themselves reelected in the process. Having the economy
floundering and holding the administration responsible for it was
their only hope of success. They have tried to turn the voter's
anger with incumbents toward the President, and in large measure
have succeeded. The American people must know that the powers in
the congress have been holding the economy as a hostage for this
election for nearly the entire four years of the Bush
Administration! Now for the good news about the gridlock: It
represents all that's good about a balanced government and the
doctrine of separation of powers. As I said earlier, the
president's repeated use of the veto has protected the working
Americans from the overregulating, overtaxing congress. This
alone qualifies as major success for the President in domestic
affairs. We would never have this sort of protection under
Clinton/Gore. The gridlock is certainly a problem because of the
domestic agenda, but our proposal for eliminating it is quite
different from the one the democrats propose.
In summary, the "record the President can't run" on has been an
unequalled success. It simply cannot be dismissed with a catchy
slogan. It's no wonder the Clinton/Gore ticket can't see the
President's record for what it is. One need only look to the
records of the democratic challengers to see why they are so
easily confused as to what constitutes a good record. Governor
Clinton has been in office in Arkansas for nearly twelve years.
During his tenure, his state remains in the bottom five of all
the states in every single measurement of economics and education
that exist. He claims this as a record of success, citing how
bad everything was when he took over. If things were so bad,
doesn't that mean there was greater opportunity for improvement?
The only statistic that is dramatically up in Arkansas is taxes.
The people of Arkansas are even now pushing a referendum to roll
back some of the repressive taxes they have suffered under
Governor Clinton's regime (and he didn't just sign these, he
initiated them). Governor Clinton's record in Arkansas is one of
dismal failure. The whole country certainly doesn't need or want
the same thing that has happened in Arkansas! Senator Gore's
extreme liberal record in the senate is equally dismal. He is
one of the biggest liberals in the congress; part of the democrat
leadership of that congress; and one of the biggest proponents of
tax-and-spend big government, and environmental extremism in the
country. Both of these men shy away from their liberal politics
and dress up in moderate clothing in order to dupe the voters.
Fortunately for us, their records are public and they cannot go
back and change them. They should also not be allowed to qualify
them in any way, or dismiss them as "the indiscretions of youth."
Their program is not new, it is the same as Carter, Mondale, and
Dukakis, only at much higher levels of tax-and-spend (even though
the democrats decided at their convention they would renounce
"taxing-and-spending" in favor of "making the rich pay their fair
share and investing in infrastructure"). As has been said by so
many, the only "change" this represents is the precious little
working Americans will have left in their pockets when Clinton
and Gore get through with them.
So what do Clinton and Gore offer the American people? Slick
rhetoric and hackneyed ideas. Through their announced agenda of
radical cuts in defense and environmental extremism they will
make a bad unemployment situation much worse. This would be
particularly ironic since they point to unemployment as the main
failure of the Bush Administration.
To the people of Southern California, and others around the
country in the defense industry, defense related industries, and
the military: many of you are mad at George Bush because so many
of you have lost your jobs, and with it - your dignity - during
the worldwide recession and the cutbacks we've made in defense.
Many of you are supporting Clinton/Gore as an expression of your
anger. Well, just take a look at the person next to you, that
will probably be the next one to lose their job if Clinton and
Gore are elected because they've promised to cut at least another
$60 billion out of defense.
To those of you in the Pacific Northwest, and those in the home
construction and related trades and industries all over the
country: Millions more of you will lose your jobs under Clinton
and Gore when they virtually shut down the logging industry in
the name of envrironmentalism. I believe that the American
people are also part of the environment and also deserve
protecting! By the way, what do you think would happen to the
price of a new home under Clinton and Gore?
And to those of you angry Americans in the Great Heartland, in
the automobile industry, and all the other industries that
support the auto industry. Millions more of you will also lose
jobs when Clinton and Gore put in the 45 mile-per-gallon
requirement for new cars. This is no way to deal with
unemployment. You ask the democrats what's going to become of
all these people they' throw out of work - they answer simply
that they 11 just retrain them all to high paying jobs. Just
where are these high paying jobs now?, I'd bet the people who are
unemployed right now would like to have a shot at these jobs.
That Clinton and Gore have zero foreign policy experience goes
almost without saying. International affairs is an issue the
democratic campaign has gone to great lengths to avoid
altogether. They want you to think the world is now a safe place
and we can ignore it. Nothing is further from the truth. There
are several wars ongoing right now and wars are very
unpredictable things. Our national defense is the first and
foremost priority of this President, and it must and will remain
so without any apology or qualification from me. One thing you
can be most assured of: we will continue to be tested, challenged
around the world; there are many more crises ahead of us in the
international scene. Don't let anyone ever convince you that
foreign policy can ever be a non-issue in a presidential
campaign!
On the domestic side, hiring Clinton and Gore to fix our economy,
health care, and education, would be like trying to put out a
fire with gasoline. These guys would dramatically increase
unemployment by drastically cutting defense and shutting down
whole industries in the name of environmentalisn. At the very
same time they would increase government spending by over $150
billion. They say the defense cut and increasing taxes on the
richest Americans will pay for all this. You could gut the
defense budget and tax the wealthiest Americans to the hilt and
not make a dent in that kind of spending. The truth is they will
increase taxes on those who pay nearly all taxes now - the
working middle class of the country. What they can't collect in
new taxes, they will borrow and add to the deficit. The result
would be increased unemployment, increased inflation, and
increased interest rates. In short, the Clinton/Gore plan would
spell economic disaster that would top even the Carter years.
Many Americans are angry, and rightly SO. They see government in
gridlock and so much that needs doing. We see these same things.
The difference is we see the needed changes on the other end of
Pennsylvania Avenue. You see, the congress has everything to do
with federal regulations and taxes, which are the government's
tools for dealing with the domestic issues. They say our
programs and ideas are failures, but how can they know this if
they haven't even tried them. We know their programs are
failures, we see it each day, virtually all the programs congress
has created over the years are not producing the desired results
- we are simply not getting our money's worth.
So you see "change" is not the democrat issue at all, it is our
issue. It's time we all thought in the national interest in all
our national offices. It's time to turn away from politics as
usual where we all expect and appreciate our congressmen and
senators grabbing as much as they can for us in Washington, and
bringing it back to us to buy our votes. Now we have to realize
that everything they bring us has to come from someone else, from
other taxpayers, or even from our own children in the case of the
debt. It's time for you to take a real hard look at your
congressional and senatorial candidates. And remember,
congressional term limits aren't intended to protect you from
your congressmen and senators, they're intended to protect you
from the other guy's! For example, as wonderful as the people of
the Spokane, Washington area are, it just doesn't make sense for
the people of any one congressional district to be able to
control the legislative agenda of the country.
We not only proudly ask you for your continued trust in us to
lead this nation for the next four years, we are asking you to go
on down your ballot and clean out the deadbeats in the congress.
Elect or reelect only those congressmen and senators that are
working for the right changes and in the national interest, (and
you know exactly who they are), and yes, many of them are the
more junior democrats who are just as frustrated and fed up with
the old guard leadership in that congress as we are. We don't
need a republican or a democrat congress, we just need a congress
that will work in the best interests of all the American people.
We have the plans and programs to get the country back where we
want it. If our plans weren't any good, the democrat-controlled
congress wouldn't have resisted passing them so strongly. It is
true that our attention was previously focused on the cold war,
and not on domestic programs (even though we still managed some
success there too), I can't imagine the American people wanting
it any other way. Now that we have been successful in putting
the cold war behind us, give us the chance to finish the job.
Send us back for another term, and give us the new congress and
the mandate to make this country even greater than it is.
I hope some of this proves useful to you, it certainly makes me
feel better to write it. I apologize for the roughness of this,
but I didn't want to delay it with extensive editing, since time
is of the essence.
Barry EGra
BARRY E. GRAMM
809 Magnolia Shores Drive
Niceville, FL 32578
James A. (Jim) Mack
2471 Snow Mountain Drive
Sandy, Utah 84093
(801) 943-7509
October 18, 1992
aboutun
Mr. James Baker
% The White House
NRN
1600 Pennsylvania Avenue
Washington, D.C. 20050
Dear Mr. Baker:
Enclosed please find a copy of Keay Davidson's column "Science
Update" on the subject of abortion and my response to him. My
response was not to win the $50.00 prize, but to appraise him of
what science does know about abortion.
The video "The Silent Scream" graphically shows the pain,
suffering, and death of the fetus during the actual abortion. I
could spend many words to explain this video; however reviewing
the video will only require 30 minutes of your time. The video
is available through American Portrait Films; 1695 W. Crescent
Street, Suite 500; Anaheim, CA 92801; Phone (714) 535 2189.
Dr. Yury Verlinsky Ph.D.; Reproductive and Medical Genetics;
Illinois Masonic Medical Center; Chicago, IL 60657; was the
Chairman of the "First International Symposium on Preimplantation
Genetics" and I believe one of the outstanding scientists in this
field.
I believe that most Americans are indifferent about abortion
because they believe as Mr. Davidson believes about the embryo
"It is a cluster of cells, no more "human" than a clump of
algae.'
If the Republican Party could run this video as an explanation of
why the Republican Party has such a strong position against
abortion in its platform, the result would be the election of
more Republican Candidates. This video changed a Doctor of
Obstetrics and Gynecology who had performed more than 10,000
abortions, and a Ultrasound Technician who was a Feminist and
Pro-abortionist into Anti-abortionists. It can also turn
American Voters from voting for those who propose unrestrictive
abortion rights. Pro-choice stops at the moment of conception!
Sincerel yours
Jim Mack
Enclosures:
Science and Medicine Desk
SCIENCE
UPDATES
FACTOID: Charles Richter,
the earthquake expert for
CRYSTAL BALL: A mathe-
whom the Richter Scale is
matical equation forecasts
named, was an enthusiastic
Bill Clinton will be elected
nudist
president. That's not too sur-
prising, given George Bush's
in-the-cellar ratings. Still, the
RANT OF THE WEEK: I
social scientist's dream is to
would like to inform both po-
find ever-slicker ways to re-
litical parties that there is ab-
state the obvious, and one
solutely no, I
can't deny that Yale statisti-
repeat no,
cian Edward R. Tufte has
scientific evi-
found a slick way to foresee
dence that an
embryo can
think or feel.
It is a cluster
of cells, no
E
Keay
more "human" than a clump
Davidson
of algae. Talk of its possess-
ing a "soul" is pointless, as
there is no scientific evidence,
The Science Guy
period, that "souls" exist; we
behave and think the way we
it: Bush is in deep doo-doo.
do because we're sophisticat-
Tufte designed an election-
ed neurological machines, not
predicting equation based on
because we possess some di-
historical data from past cam-
vine immaterial "spark."
paigns, particularly the state
Hence future generations will
of the economy and an incum
view the anti-abortion move-
bent's approval ratings. His
ment with the same òpen-
conclusion: Bush is out. Abso-
mouthed horror with which
lutely. Finis. It's all there in
we view the Salem witch tri-
the equation.
als.
However, Tufte also has
There. I've said it. Now
bad news for Clinton: No past
what do you think? Send us
Yale graduate (specifically,
your response to the question.
William Howard Taft and
"What light, if any, does sci-
Gerald Ford) held the U.S.
ence shed on the abortion de-
presidency more than one
bate? We'll print portions of
term. Both Bush and Clinton
the best responses. The best-
are Yale alumni. Uh-oh:
written, most cogently argued
By the way, if you re into
reply (regardless of opinion)
statistics, Tufte is your man
wins $50. Mail 'em to Keay
Despite its formidable title,
Davidson, c/o San Francisco
his book The Visual Display
Examiner, 110 Fifth St., San
of Quantitative Information
Francisco, CA 94103. Warn
(1983, Graphics Press, Chesh-
ing: Deadline is Sept. 30.
ire, Conn.) is the best popular
commentary on statistics
since that all time classic
How to Lie With Statistics
Tufte 197 page book in
cludes hilarious examples of
how mass media manipulate
statistics, charts and graphics
(e.g. an old Soviet chart that
wildly exaggerated workers
output, or a Wall Street ana
lyst's chart that "proved a
link between stock prices and
fluctuations in solar radia
tion)
WHAT SCIENCE KNOWS ABOUT ABORTION
JIM MACK
SEPTEMBER 26, 1992
1
2
WHAT SCIENCE KNOWS ABOUT ABORTION
As reported in the "Journal of In Vitro Fertilization and Embryo
Transfer", In Vitro scientists have the capability to determine
the gender of single human cells with 100% accuracy using the
Polymerase Chain Reaction (PCR)¹ method. Using the same PCR
methods they are able to determine genetic diseases in single
human cells prior to implantation². Immediately after conception
the single cell has all of the genes, chromosomes, and DNA
program to determine that persons development for the rest of
that person's life.
In contradiction to those that state that the fetus does not any
feelings at that stage of development, the ultrasound pictures of
an actual abortion on a 12 week old fetus recorded on video tape
and entitled "The Silent Scream"³ shows that as the unborn child
attempts to escape the abortionist's suction curette, her motion
becomes desperately agitated and her heart rate doubles. When
the curette grabs the fetus and begins to tear the child apart
the baby's mouth opens in a silent scream.
The soul is the principal of life, feeling, thought and action in
a person. It is not a single attribute, but all of the spiritual
attributes of mankind. The word spiritual is used in distinction
to the corporeal or physical attributes of mankind. Each person
has different mixes of these attribute. The most important is
3
WHAT SCIENCE KNOWS ABOUT ABORTION (cont.)
life! These attributes can be good or bad. They include life,
anger, honesty, hate, compassion, etc. One cannot measure these
attributes by themselves, for instance an ounce of life or
honesty; but the affect the attribute has on each person is
apparent by the resulting action of that attribute. You can
determine the difference between life and death in a person or
you can identify a honest person or an angry persons by that
person's actions.
The living sperm is a living organism, as is the egg. If the egg
is not fertilized, it is expelled and dies. When a sperm and egg
unite a human being is conceived. That human being will continue
to grow physically and spiritually until it dies. During its
life span the average person will grow from a single cell to an
embryo, fetus, baby, toddler, child, teen, young person, mature
person, middle age person, and finally a senior person. At each
stage of development it is a human being. Induced abortion is
the killing of a living, feeling human person.
BIBLIOGRAPHY
1. "Journal of In Vitro Fertilization and Embryo Transfer", 1991
August; Volume 8, No. 4; Pages 225 to 229; "Reliability of Gender
Determination Using the Polymerase Chain Reaction (PCR) for Single
Cells".
2. "Journal of In Vitro Fertilization and Embryo Transfer"; 1990
August; Volume 7, No. 4; "Abstracts of the First International
Symposium on Preimplantation Genetics" several papers.
3. "The Silent Scream"; American Portrait Films; 1695 W. Crescent
Avenue, Suite 500; Anaheim, CA 92801; Phone (714) 535-2189.
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Label 11.B (April 1990)
Mr. James Baker
Men
23 October 1992
The White House
Washington D.C.
puggestime
Mr. Baker,
Please review the enclosed. JR. suggests you are on the
right track or he is spreading your gospel. (page 31)
Either way, what is missing is the theme:
GET THE FEDS OFF OUR BACK AND OUT OF OUR POCKETS /
REDUCED FEDERAL GOVERNMENT ***** COST.
I believe the programs suggested by the administration can
be said to follow that theme, except for the medical cost
problem. Why not call for COUNTY HOSPITALS? History is
repeating. Yes it requires Fed money to the County, but in
the long run, far less then a bureaucratic organization in
the Federal government.
Your "family value" theme. Read James Michaels (page 54)
Finally, the U.S. Tax Burden chart. (Sorry about the dark
copy) The New Deal and tax increases in the 1940s, if the
same approach is taken to correct the debt - I can't
imagine the international consequences.
OR is the whole economic, moral, ethics picture part of the
Kondratieff's wave?
What can I say, "good luck?"
Sincerely,
Einar Einar R. Jenstrom
1553 Mockingbird Dr.
Murray, KY 42071
Articles by: John Ashbery
0
Saul Bellow
Henry Louis Gates Jr
Alfred Kazin
Peggy Noonan
Dick Schaap
.
Simon Schama
September FiveiDollars
75th ANNIVERSARY ISSUE
yes Tee
30 bad
ANIMAL
to
RIGHT RIGHTS DOWN TO BEAR BANCHE BOMB ARMS
NUKES
AGEISM
SPF
SPICIES
FROM
ED
CAME
ENDANGER
FREEDOM
EUROCEN
R/C
SPEE the THE SNEW
0 43933 08317
7
Forbes
SEPTEMBER 14. 1992 VOLUME 150 NUMBER 6
Main
75TH ANNIVERSARY ISSUE
A De-Moralized Society?
120
How Was It Then?
196
Oh, Our Aching Angst
47
By Gertrude Himmelfarb
Compiled by Michael Schuman
By James W. Michaels
There is nothing fanciful about our
Take a look at the race relations,
Americans live better than any other
fears and grievances.
economics and women's rights of an
people on the globe-so why do we
earlier era.
feel so depressed?
Two Nations
Both Black
132
By Henry Louis Gates Jr.
Convenience-Of-Living
218
You'd Cry Too
58
For black America, these are the worst
By Nina Munk
By Peggy Noonan
of times-and the best of times.
How can a price index compare an
We are the first generations of man
electric stove to a wood stove?
that expected to find happiness here
Cry, The Beloved Country
140
on earth, and our search for it has
By Alfred Kazin
The Top Industrials Of 1917
232
caused such-unhappiness.
Political authority is discredited, civic
By Peter Newcomb
violence is on a mass scale, education
Some would have made you rich.
The Space To Chase Rainbows
72
is a catastrophe, as we drift toward an
By John Updike
irreversible mediocrity.
Shake-Up
236
American plenty, to taste right, needs
By Pablo Galarza
a seasoning of idealism.
Feelgood America:
For corporations, life at the top is
A Tragicomedy In Four Scenes 160
more turbulent than before. Why?
So Much Of The Joy Is Gone
86
By Simon Schama
By Dick Schaap
Yes, friends, the era of couch potato
A Brief History Of Stock Fads 253
"The owners screwed the players for
democracy is at hand.
By Jean Sherman Chatzky
100 years. We've been screwing them
Cigars, aviation, pyramids, uranium,
for 5. We've got 95 more years."
An Awakened Conscience
176
bowling. All nifty in their day.
By Paul Johnson
Too Much To Think About
98
Americans know that debt accumula-
Just The Facts
271
By Saul Bellow
tion is wrong. As individuals they feel
By Robert Rosenstein with Riva Atlas
Can it be we are tired of whatever it is
powerless to do anything. As collec-
A statistical slide show comparing
that we in fact arc, and we now want
tive voters they are divided.
America with other countries and
to rise above all tiresome differences?
with its own past.
A Last Word From A Poet
193
Contradictions Of Capitalism
110
By John Ashbery
Cussedly Independent
318
By James Q. Wilson
The decline of the West.
By Laura Jereski
The three reasons for our problem:
A portfolio of contrarianism and inde-
prosperity, freedom and democracy.
pendent thinking over 75 years.
Forbes
September 14, 1992
3
"With all thy getting get understanding"
Fact and Comment
By Malcolm S. Forbes Jr., Editor-in-Chief
MADNESS
A SERIOUS ECONOMIC and financial crisis is brewing. The
free-fall. It took massive government action to stem it.
culprit is Germany's Bundesbank, which has raised real
What are the Germans up to? Their stock answer:
interest rates to levels not seen since the Great Depression.
fighting inflation. But the Bundesbank is making a fatal
Because Europe's currencies are tied to the deutsche mark,
mistake by failing to distinguish between rising prices that
their economies are also being battered. The dollar, too,
result from supply and demand in the marketplace and
is being hit hard. Unless Germany eases up soon, the
those that come from the traditional debasing of one's
Federal Reserve may feel forced to boost rates here to
currency. Germany's price rises are a result of massive
prevent a wholesale exodus from dollar assets. That, of
government spending in East Germany combined with
course, would damage our fragile economy.
imposing rigid economic and wage regulations on the
An accomplice to the Bundesbank lunacy is Japan, whose
former communist state.
monetary policy is also too tight. Japanese financial institu-
Bush, Baker and Brady had better quickly work hard to
tions are in serious straits because of real estate and stock
get the Germans (and the Japanese) to back down.
market crashes. Yet in the face of this weakness, a govern-
Otherwise, we will get the equivalent of the Mexican debt
ment tax advisory commission seriously suggested boost-
crisis of 1982 or the stock market crash of 1987. Some-
ing capital gains taxes to 50%, precipitating a stock market
thing is going to break soon.
BUSH WILL WIN BY A LANDSLIDE
if he pounds away at the themes he so effectively present-
excess of half a trillion dollars, by far the largest such
ed in his acceptance speech: lower taxes, free trade, family
increase in history.
values, and trust and experience. He must also veto the
Bush's program will make him one of our great reform
Clintonesque bills Congress will be sending him.
presidents. Allowing taxpayers to devote 10% of their
Bush raised taxes once and admits it was a big mistake,
payments for reduction of the national debt will overhaul
while his opponent raised taxes repeatedly in Arkansas
both government finances and operations. Políticos
and proposes tax boosts in this campaign. To reach his
would be forced to privatize numerous government ser-
deficit goals, Clinton would have to raise exactions in
vices and projects, enormously benefiting the nation.
DAN QUAYLE
WHAT ARE night show hosts to do now? The Vice President
has been the catalyst for many Administration reform
wonderfully punctured their Quayle caricatures. Ameri-
proposals. Remarkably, he hasn't let relentless ridicule,
cans finally got to see the real man: able, bright, person-
criticism embitter him. Most remaining doubters will be
able, knowledgeable, energetic, self-deprecating. Quayle
converted when the Vice President debates Senator Gore.
SOUND MONEY AND OTHER SOUND PRINCIPLES FOR A SOUND WORLD
Speech given by Malcolm S. Forbes Jr. at the CATO Institute's 1992 Monetary Conference
THOUGH CIRCUMSTANCES and times change, the basic
And, of course, free trade. They sound very simple,
principles of economic progress do not. There's no
but, unfortunately, when you see the policies-or lack
mystery about them. They involve sound money, low
of them-that we seem to be pursuing, even these
taxes, property rights, making it easy for businesses to
simple principles seem to go by the boards.
be set up and, once they are, not harassing them with
The thing a country needs first is real, sound money.
excessive regulation and bureaucratic interference.
(continued on p. 546)
Forbes
September 14, 1992
31
THIS ISSUE
is physically the largest by far in FORBES magazine's 75-year
In the magazine business (and more so with newspa-
history. More exciting for you, it is also our best editorially.
pers) you quickly learn that your prose is perishable and
It deals with the salient question of our time in a way that
quickly forgotten. So please pardon my pride when I say
makes the answers and insights absolutely fascinating and
that Editor Jim Michaels and his crew have outdone
educational. Your perceptions of the present, and of the
themselves putting together a masterpiece that will be
past and future, will be remarkably enriched and altered.
referred to again and again for many, many years to come.
AMERICA WON'T BE MOODY FOR LONG
WE ARE IN a golden age. Like most such eras, the luster
universities; culture and individualism will flower.
will be more apparent to historians than to those who
But don't get too carried away. Utopia is for the next
live through it.
life, not this one. We face ferocious fights on value issues.
If12 years ago a pundit had prophesied what has actually
We are already seeing this with abortion. Political pas-
played out over the past 12 years, he would have been
sions will also be aroused in other areas: child rearing, sex,
pilloried for puffing too much of what Governor Clinton
crime, welfare, schools, individual responsibility for indi-
claims he didn't inhale. No one then would have believed
vidual acts. The media and cultural "elites" ain't seen
that we were on the eve of our longest peacetime expan-
nothin' yet.
sion, where our growth alone would be greater than the
We are also about to witness a great spiritual revival.
size of the entire German economy; that the U.S. would
One impetus: aging baby boomers looking for greater
best Japan in the critical technology areas of computers,
meaning in their lives. Another: realization that fast-
software, digital screens and fiber optics; that inflation
paced technological changes make a sound, moral com-
would drop from 15% to 3%; that interest rates would fall
pass imperative to responding responsibly to these mir-
from a high of 21.5% to 6%; that around 20 million new
acles. Fire gives us heat. It also gave us Auschwitz.
jobs would be created, including a record number of high-
This revival won't be entirely religious. Senator
paying ones; that we would surpass Japan and Germany in
Gore's bestselling book touts environmentalism less as a
exports; that our share of worldwide manu-
series of problems to be practically solved
facturing output would go up for the first
RUN 1
than as something spiritual, transcenden-
time in 40 years; that this expansion would be
tal: Economies are expanding at the ex-
followed not by depression but by a mild
pense of pillaging Mother Earth, ultimately
recession; that overseas Poland, Hungary,
threatening life itself. Ironically, Gore's
Czechoslovakia, Romania and Bulgaria
the-end-is-coming environmentalism comes
would throw off communist regimes with no
just at the time that our relative dependence
reaction from Moscow; that Germany would
on raw materials-oil, copper, iron-is
reunite under a democratic government and
Soon, a strand of fiber will
eroding. More and more the raw material
remain in NATO; that Moscow would with-
handle all Mother's Day calls.
for wealth is information; fiber optics are
draw in humiliation from Afghanistan; that
our railroads and highways; software, our
the Soviet Union itself would cease to exist, breaking up
oil; human innovation, our gold.
into 15 pieces relatively peacefully; that we would fight a
Possible downers? Communism has lost, but democra-
ground war against a formidably armed Mideast foe and
cy has not won. Yet many are tempted to turn their backs
win within 100 hours; and that, finally, after all of this, the
on the world and retreat into 1920s-style isolationism.
American people would be in a funk.
Russia begs for our guidance in making the transition to
We are suffering the social equivalent of postpartum
free markets and democracy, and we respond by telling
blues, a feeling exacerbated by a downbeat media.
Russia to take its problems to the IMF. If we flub our
We have had down moods before: the 1890s, the early
enormous opportunities, we can easily create conditions
1930s, the late 1960s, the late 1970s. But while we no
dangerous to our own safety, just as we did in the
longer have unshakable faith in progress, we remain a
Twenties and Thirties.
"can-do" people. Our optimism will reassert itself.
Another downer: idiotic economic policies such as
Our golden age will be symbolized by the microchip; it
those being practiced by Germany and proposed here at
is extending the reach of the human brain the way
home by protectionists.
machines extended the reach of human muscle during the
Progress doesn't come without price. Take the auto-
Industrial Revolution. The way we live, the way we do
mobile. It has given millions of people unprecedented
business, will be enormously, beneficially transformed. In
individualism and mobility, fabulously raising our stan-
2017, when we celebrate FORBES' 100th anniversary, our
dard of living. But more Americans have died on our
standard of living will be infinitely richer, more varied
highways than in all our wars.
than it is today.
Can we contine to adjust to the disruptions of prog-
Politically, we are on the eve of a new Progressive Era
gress? We will. But many fearful, unfulfilled people will
of reform: free markets for health care finance; choice of
fight à la Al Gore to hobble scientific research and
schools; a flat tax; term limits for Congress; rationality
development and destroy entrepreneurial capitalism.
again in our legal system; sound money and private,
If we could see the future, we would be absolutely
portable pensions (including Social Security). Thanks to
astonished. As we make it happen, we will be much less
fiber optics and interactive TV, our homes will become
impressed. History hasn't stopped and never will.
32
Forbes
September 14, 1992
75
Oh,
our
aching
angst
Americans live better than any other people on the globe-
so why do we feel so depressed? Since economists can't or won't answer
questions like this, FORBES turned to eleven of our best writers and scholars.
By James W. Michaels
When you're my age you don't have to ask: Are Americans
really materially better off than they were in the recent past?
Those of us born in the 1920s and with vivid memories of
the Depression simply know how much better things are
today. The improvement is implicit in almost our every
memory, every experience.
Even for comfortable middle-class people life was much
more difficult and insecure in the 1920s than it is today. Ifhe
Forbes
September 14, 1992
47
75
Angst
Tennessee Valley Authority
Rural poverty?
In the 1930s this
was fortunate enough to have central heating
which was just as well because there were few
was one of the
(less than one-third of the population in 1920
pensions beyond what the gold watch might
more prosperous
did), middle-class Dad had to pull himself from
bring at a pawnshop.
small farms In its
bed at 4 a.m. on cold winter mornings to
I'm not talking about the 19th century. I'm
Tennessee
unbank the furnace and shovel coal; if he over-
describing the first three or four decades in our
neighborhood. It
slept, the pipes froze. But he usually didn't have
own century. Unless they blow their money and
lacked electric-
to rake leaves or shovel snow. Not in the 1930s.
energy on booze or drugs, the American poor
ity, but an old
That was done by shabby, humble men who
have more physical comforts today than the
flivver engine
knocked at the back door mornings, asking for a
average American did when FORBES first ap-
powered a crude
warm meal in return for doing chores.
peared 75 years ago.
washing ma-
In 1921, when this magazine was four years
We've come a long way, and although the rate
chine, making life
old, the typical American workweek was 60
of improvement has slowed lately, our economy
a trifle easler for
hours, and many people worked longer. The
put on an amazing performance in this century.
the lady of the
most common American household appliance
So amazing that almost every U.S. consulate has
house.
was a woman, who worked a lot more than 60
a waiting list for immigration visas.
hours in her home. Leisure-time industries
Yet just last week on television I watched a
scarcely existed because few people had leisure.
sweating Bill Clinton harangue a midwestern
For more than half the population, the family
audience. Work with me to change America, the
toilet was a hole in the backyard with a shack
candidate shouted, punching the air, Kennedy-
built over it. In those shacks, Scott Paper prod-
like, with his fist. That cliché produced the
ucts competed with difficulty against old Sears
expected cheers and waving of banners. Cut
and Montgomery Ward catalogs; real toilet
now to a local living room where a TV reporter
paper was a luxury.
interviews a well-dressed middle-aged woman.
Senior citizens? We called them old folks, and
What did she think of the speech? "I liked it,"
they were old in their 50s; if they were lucky, one
she said. "God knows we need change in this
of their kids had a spare room for them, maybe in
country."
the attic. Life expectancy was about 54 years,
Change from what to what? The lady didn't
48
Forbes
September 14, 1992
75
Angst
say and the newscaster didn't even think to ask;
ing of the justified discontent of the responsible
everyone just assumes the country is in rotten
citizen who discovers that economic and materi-
shape. Where do they get their certainty? From
al goods are no compensation for social and
the mass media that keep telling them that the
moral ills."
economy is a mess, America is a mess.
Some of the essayists conclude that pessimism
Peggy Noonan got it right in the essay that
is justified and that we are in grave risk of going
follows in this issue: "It is writers-journalists,
to hell. Harvard historian Simon Schama writes:
screenwriters, novelists, newswriters-we turn
"More housing starts, a little leap in the 'con-
to more than anyone to tell us exactly how our
sumer confidence' ratings, or a pickup in auto
country is doing, and they are precisely the last
sales may signal some sort of return to short-
people who would accurately point out that in
term cheerfulness, but these indices say nothing
the long tape of history this is a pretty good few
about the deep systemic sicknesses that may in
inches.
the end determine that the American Century
But where do the media mandarins get their
will have lasted, in fact, for just 50 years.
feeling that these are bad inches on history's
"It's an old joke in our family that the
tape? From writers and academicians, of course.
Schamas have an uncanny knack for following
Especially from writers and academicians who
collapsing empires. A century and a half ago we
have a low opinion of capitalism and of Ameri-
were subjects of the Ottoman Empire; then, as
can popular culture. The media machine turns
that disintegrated, took ourselves off to Habs-
this highbrow griping into sound bites and data
burg Vienna; thence, in my parents' generation,
bites and feeds them to the masses.
to Edwardian Britain. And here I am."
To mark this magazine's 75th anniversary,
It may be that the Schama family will have to
the editors wanted to look behind the sour
flee once more. But it's well to remember that
moroseness of the media and seek more pro-
this is a country where the intellectuals have
found explanations for the prevailing angst.
almost always felt cut off and unhappy. Just
At the start we decided: no economists.
because people write well doesn't mean they can
They have nothing to tell us about the real
predict well or even accurately judge the pres-
reasons for America's turn-of-the-millennium
ent. Saul Bellow, the great novelist (page 98),
discontent. So, starting on page 58, eleven of
dismisses a lot of the current doom-saying with
America's best writers and scholars give their
these words:
noneconomic explanations for the blue funk
"When I was young the great pundits were
oppressing Americans.
personalities like H.G. Wells or George Bernard
Each essay is an attempt by the author to
Shaw or Havelock Ellis or Romain Rolland. We
answer our question: Why do Americans feel so
respectfully read what they had to say about
bad when they've got it so good?
communism, fascism, peace, eugenics, sex. I
Varied as the answers are, there is a fairly
recall these celebrities unsentimentally. Wells,
common thread. It isn't the national debt or the
Shaw and Romain Rolland brought punditry
unemployment rate or the current recession that
into disrepute. The last of the world-class men-
bothers the nation's thinkers. It's not an eco-
tal giants was Jean-Paul Sartre, one of whose
nomic mess that they see. It's a moral mess, a
contributions to world peace was to exhort the
cultural mess. While the media natter about a
oppressed of the Third World to slaughter
need for economic change, these serious intel-
whites indiscriminately.
lectuals worry about our psyches. Can the hu-
"Lincoln Steffens, playing the punditin Russia
man race stand prosperity? Is the American
after the Revolution, said, 'I have been over into
experiment in freedom and equal opportunity
the future, and it works.' Some secret wisdom! As
morally bankrupt?
a horseplayer he would have lost his shirt."
Reading the essays that follow isn't a comfort-
So, before you lose your shirt and your faith in
able experience for one who believes deeply in
the country, read the essays that follow and
this country and its values. Without exception
decide for yourself what is behind the American
these brainy Americans (and one Brit) see us in a
angst-amidst-abundance. I personally like what
moral crisis. But without exception they lift the
political scientist James Q. Wilson (page 110)
level of discourse above that found in the papers
writes: "Cheer up, Americans. You are right to
and on the tube, where we are punished hourly
be grumpy, but there is no system for governing
with mindless keening about distribution of
a large, free and complex society such as ours
wealth, the greed of the rich and the rights and
that is likely to do much better or make you less
wrongs suffered by this minority and that alleg-
grumpy. If you don't believe it, travel."
edly oppressed group. It isn't the economic
And when you get back from Sweden and
system that needs fixing, most of our essayists
Japan, Germany and Cuba and hear our politi-
say. It's our value system. As historian Gertrude
clans and our ideamongers shouting about
Himmelfarb (page 120) puts it: "I am not
changing America, ask them: Change it to what?
talking about
psychobabble.
I am talk-
At what cost?
54
Forbes
September 14, 1992
75
$30
RATIO SCALE
Tennessee Valiey Authority
27
24
U.S. output
21
per man-hour
18
(CONSTANT 1992 DOLLARS)
NONFARM
15
12
9
FARM
HIME
6
100
GPP PER
few
ight
90
80
I'm
70
our
and
60
3
oor
50
the
40
ap-
30
nte
20
my
Productivity continued to
10
ury.
trend upward in the 1980s,
has
Brazil
though less steeply than
China
in the 1950s or 1960s. The
France
a
driving force is capital-
Italy
combines, computers,
Japan
human capital in the form
of training.
United Mexico Kingdom
West Germany
United States
Sources: Bureau of Labor Statistics, OECD
1917 1920
1930
1940
1950
1960
1970
1980
1990
$50
$THOUSANDS (RATIO SCALE)
45
ADJUSTED TO REFLECT CHANGES IN FAMILY SIZE
AND REVISED ESTIMATES OF HOUSING COSTS
40
35
ADJUSTED
FOR INFLATION
30
25
U.S. median
family income
(CONSTANT 1992 DOLLARS)
20
EXTRA LARGE
STOP:SHOP FreshGra
From 1947 to 1972, family
income doubled. Did the
growth halt after that?
Only if incomes are adjust-
ed by the Consumer Price
Index in the usual fashion
(red line). But there's an-
other way of looking at the
same data. The yellow
15
line, adapted from the
American Enterprise Insti-
tute's Illustrated Guide to
the American Economy,
tracks real family income
with a modified price in-
dex. It makes a further up-
ward adjustment to offset
the effect of the decline in
family size. By this mea-
sure, the 1980s were still a
Sources: Congressional Budget Office: Department of Labor; American Enterprise Institute; Fortes
period of income growth.
10
1947
1950
1960
1970
1980
1990
75
25%
Groupy area associated
U.S. tax burden
(FEDERAL, STATE AND
LOCAL TAX REVENUES
AS PERCENT OF GDP*)
20
Two world wars and the
creation of the income tax
brought on a huge in-
crease in Americans' tax
burden. But it hasn't got-
ten much heavier in the past
two decades, and it's
lighter than the burdens
overseas. International
comparisons are for 1989.
15
few
40%
fight
10
35
TAX PERCENT BURDEN (FEDERAL ONLY)
I'm
30
our
and
25
poor
the
20
ap-
15
rate
10
pmy
5
has
5
Chile
lapan
a
tern
South Korea Sweden
the
United Kingdom
the
West Germany
at
ner
United States
un.
*Gross national product used before 1960. gross domestic product thereafter.
Sources: Bureau of the Census; UNDP; Forbes
0
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
14%
32%
28
EXPORTS EXPORTS AND IMPORTS*
24
IMPORTS
(PERCENT
OF
GOP)
20
16
12
8
4
Brazile
Indonesia
10
Marking States
EXPORTS
8
6
IMPORTS
4
U.S. exports
The trade deficit has been narrowing
recently. Good news, perhaps. But
and imports
is it the important news? The more
important trend may be that trade
is of growing consequence to both
(AS PERCENT OF GDP)
producers and consumers here.
2
*For latest available year (1987 to 1991), depending on country.
Does not include receipts on assets abroad,
Sources: U.S. Department of Commerce; International Monetary Fund; Forbes
0
2000
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
Forbes M September 14, 1992
53
75
You'd cry
too if it
happened
to you
"
We have lost the old knowledge that
happiness is overrated-that, in a way,
life is overrated. Our ancestors believed in
two worlds, and understood this to be the
solitary, poor, nasty, brutish and short one.
We are the first generations of man that
actually expected to find happiness
here on carth, and our search for it
has caused such-unhappiness "
By Peggy Noonan
n his lifetime he had seen America risc
Peggy Noonan,
I
and rise and rise, some sort of golden
a former CBS news
legend to her own people, some sort rise
writer for Dan Rather,
of impossible fantasy to others
and rise and rise-and then
the
is best known as a
speechwriter for
golden legend crumbled, overnight
Ronald Reagan and
the fall began, the heart went out of it, a too
George Bush.
complacent and uncaring people awoke to find
She shared her
themselves naked with the winds of the world
howling around their cars
A universal quilt
bohind-the-sconos
observations In her
enstronded all who participated in those
bestselling book,
times
Now there was a ume of uneasuress
What I Saw at the
when all thinking men fretted and worried
DIE
Revolution.
desperately about how tocatch and how 10
Peggy Noonan
night's cold terror, about what it would be
like if America couldn't catch up, if history
should have decided once and for all that
America should never again be permitted to
get ahead.
Well, so much for Camelot.
When Allen Drury wrote those words-they
set the scene for his classic political novel, Advise
and Consent-he was trying to capture the
mood of America in 1959, as the peaceful and
composed Eisenhower cra receded, John Ken-
nedy geared up for the presidency and the go-go
Sixties waited to be born. We remember those
days as innocent and hopeful; Drury recorded
them as anxious and depressed. Which demon-
strates a small but not insignificant point: It is
writers-journalists, screenwriters, novelists,
newswriters-we turn to more than anyone to
tell us exactly how our country is doing, and
they are precisely the last people who would
accurately point out that in the long tape of
history this is a pretty good few inches.
There are many reasons for this-catching
and tagging whatever angst is floating around is
their job-but the biggest is simple. Writers
always see their time as marked by pain because
it always is. Children die. People lose their
homes. Life is sad. To declare the relative happi-
ness of your era is to sound stupid and uncaring,
as if you don't know people are suffering, when
people always are.
I am inclined toward the long view. The life of
people on earth is obviously better now than it
has ever been-certainly much better than it was
500 years ago when people beat each other with
cats. This may sound silly but now and then
when I read old fairy tales and see an illustration
of a hunchbacked hag with no teeth and bumps
on her nose who lives by herself in the forest, I
think: People looked like that once. They lived
like that. There were no doctors, no phones, and
people lived in the dark in a hole in a tree. It was
terrible. It's much better now.
But we are not happier. I believe we are just
cleaner, more attractive sad people than we used
to be.
There are serious reasons members of my gener-
ation in particular are feeling a high level of
anxiety and unhappiness these days, but first a
word about how we "know" this: the polls.
I used to like polls because I like VOX pop, and
polls seemed a good way to get a broad sam-
pling. But now I think the VOX has popped-the
voice has cracked from too many command
performances. Polls are contributing to a
strange new volatility in public opinion.
A year ago, at the conclusion of the Gulf war,
George Bush's approval ratings were at nearly
90%. As I write, they are 30%. This is a huge
drop, and in a way a meaningless one. President
60
1-1
Peggy Noonan
Bush didn't deserve 90% support for having
Jersey office of a phone company, you have
successfully executed a hundred-hour ground
reason to fear you'll never be hired back into
war; Abe Lincoln deserved a 90% for preserving
that or any white-collar job, because employ-
the nation. Bush didn't deserve 30% support
ment now is connected less to boom and bust
because the economy is in recession; John Ad-
than to changing realities, often changing tech-
ams deserved a 30% for the Alien and Sedition
nologies, in the marketplace. The telephone
laws. It is all so exaggerated.
company doesn't need you anymore.
The dramatic rises and drops are fueled in part
You are a boomer, and obscurely oppressed.
by mass media and their famous steady drum-
But there is nothing obscure about your predica-
beat of what's not working, from an increase in
ment. So many people are relying on you! You and
reported child abuse to a
your wife waited to have children, and now they're
fall in savings. When this
8 and 10 and you're 48-too late to start over, to
People who take their pulse
tendency is not prompted
jeopardize the $75,000 a year you earn. And if you
too often are likely to make
by ideology it is legitimate:
tried, you would lose your medical coverage.
it race. Nations that use
Good news isn't news. But
Your mother and father are going to live
the volatility is also driven
longer than parents have ever lived and will
polls as daily temperature
by the polls themselves.
depend on you to take care of them as they (as
readings inevitably give
People think they have to
you, at night, imagine it) slide from mild senility
inauthentic readings,
have an answer when they
to full dementia. Your children will have a
and wind up not reassured
are questioned by pollsters,
longer adolescence, and expect you to put them
and they think it has to be
through college just as mom and dad are enter-
but demoralized.
"intelligent" and "not na-
ing a home.
ive." This has the effect of
Your biggest personal asset is your house,
hardening opinions that
which has lost value. You have a hefty mortgage,
haven't even been formed yet. Poll questions do
your pension fund is underfunded, you don't
not invite subtlety of response. This dispels
think your social security benefits are secure and
ambiguity, when a lot of thoughts and opinions
you do not trust the banks.
are ambiguous.
The last may be the most serious in terms of
And we are polled too often. We are constant-
how people feel. In the years since the Depres-
ly having our temperature taken, like a hypo-
sion we have been able to trust that the institu-
chondriac who is looking for the reassurance
tions we put our savings into would be there
that no man can have, i.e., that he will not die.
tomorrow and pay us interest. We don't know
I once knew a man who was so neurotically
that anymore; most of us are afraid that all of a
fearful about his physical well-being that in the
sudden a major bank, strained from its own
middle of conversations he would quietly put his
feckless investments to middle-aged mall build-
hand to his wrist. He was taking his pulse. When
ers who make political contributions, will fold,
I was seven or eight years old, I became anxious
taking the other banks with it.
that I would stop breathing unless I remem-
We wonder, "in the small hours of the night's
bered every few seconds to inhale. This mania
cold terror," if there is another depression and
was exhausting. At night, on the verge of sleep, I
the banks fail, how will I and my family live?
would come awake in a panic, gulping for air.
How will we buy food and gas and pay for
People who take their pulse too often are
electricity? We don't know how to grow things!
likely to make it race; people obsessed with
What will we cat if it all collapses?
breathing are likely to stop. Nations that use
polls as daily temperature readings inevitably
I think the essential daily predicament of mod-
give inauthentic readings, and wind up not
ern, intelligent, early-middle-age Americans-
reassured but demoralized.
the boomers, the basketball in the python-is
this: There is no margin for error anymore.
There are reasons for our discontent. Each era
Everything has to continue as it is for us to
has its distinguishing characteristics; each time a
continue with the comfort we have. And we do
big barrel of malaise rolls down the hill there are
not believe that everything will continue as it is.
specific and discrete facts rolling around inside.
It is embarrassing to live in the most comfort-
Here are some of ours:
able time in the history of man and not be happy.
Once in America if you lost your job-if you
We all have so much!
were laid off from the assembly line at Ford, for
Think of the set of "The Honeymooners."
instance-you had reason to believe you'd be
What did Ralph and Alice have in 1955? A
rehired. Business cycles, boom and bust-soon-
small rented apartment with a table, two
er or later they'd call you back. There was a
chairs, a bureau, a picture on a faded wall. The
certain security in the insecurity. Now it's differ-
set designer was spoofing the average.
ent. Now if you're laid off from your job as the
Think of the set of 'Family Ties": the couch-
number two guy in public affairs at the main
es, the lamps, the VCRS, the color TVS. There is
Forbes
64
September 14, 1992
art on the walls. The children had expensive
put here to be happy. But the knowledge of his
orthodontia.
unhappiness does not gnaw. Everyone is unhap-
You will say, one show was about the working
py, or rather everyone has a boring job, a
class, the other the middle class. But that's the
marriage that's turned to disinterest, a life that's
point: The average couple was working class
turned to sameness. And because he does not
then and is middle class now.
expect to be happy the knowledge of his unhap-
We have so much more than mom and dad
piness does not weigh on him. He looks perhaps
that we can't help but feel defensive about
to other, more eternal forms of comfort.
feeling so bad, and paying off our charge cards
Somewhere in the Seventies, or the Sixties, we
and
so late, and being found in the den surfing from
started expecting to be happy, and changed our
channel to channel at 3 a.m., staring back at
lives (left town, left families, switched jobs) if we
to
Brian Lamb's eyes.
were not. And society strained and cracked in
And there's this: We know that we suffer-
the storm.
and we get no credit for it! Sometimes we feel
I think we have lost the old knowledge that
the bitterness of the generation that fought
happiness is overrated-that, in a way, life is
World War I, but we cannot write our memoirs
overrated. We have lost, somehow, a sense of
and say "good-bye to all that," cannot tell
mystery-about us, our purpose, our meaning,
stories of how our boots rotted in the mud,
our role. Our ancestors believed in two worlds,
cannot deflect the neighborhood praise and be
and understood this to be the solitary, poor,
modest as we lean against the bar. They don't
nasty, brutish and short one. We are the first
know we're brave. They don't know we fight in
generations of man that actually expected to
trenches too.
find happiness here on earth, and our search for
I find myself thinking of Auden's words about
it has caused such-unhappiness. The reason: If
the average man in 1939, as darkness gathered
you do not believe in another, higher world, if
over Europe-the "sensual man-in-the-street,"
you believe only in the flat material world
barely aware of his emptiness, who promised
around you, if you believe that this is your only
that he will be "true to the wife," that some day
chance at happiness-if that is what you believe,
he will be happy and good.
then you are not disappointed when the world
Auden called his era the "age of anxiety." I
does not give you a good measure of its riches,
think what was at the heart of the dread in those
you are despairing.
days, just a few years into modern times, was that
In a Catholic childhood in America, you were
we could tell we were beginning to lose God-
once given, as the answer to the big questions: It
banishing him from the scene, from our con-
is a mystery. As I grew older I was impatient with
sciousness, losing the assumption that he was
this answer. Now I am probably as old, intellec-
part of the daily drama, or its maker. And it is a
tually, as I am going to get, and more and more I
terrible thing when people lose God. Life is
think: It is a mystery. I am more comfortable
difficult and people are afraid, and to be without
with this now; it seems the
God is to lose man's great source of consolation
only rational and scientific
In a Catholic childhood
and coherence. There is a phrase I once heard or
answer.
made up that I think of when I think about what
My generation, faced as
America you were once given,
people with deep faith must get from God: the
it grew with a choice be-
in answer to the big questions:
love that assuages all.
tween religious belief or ex-
I don't think it is unconnected to the boom-
It is a mystery. As I grew older
istential despair, chose
ers' predicament that as a country we were
marijuana. Now we are in
I was impatient with this
losing God just as they were being born.
our cabernet stage. (Jung
answer. Now I am probably
At the same time, a huge revolution in human
wrote in a letter that he saw
as old, intellectually, as I am
expectation was beginning to shape our lives,
a connection between spir-
the salient feature of which is the expectation of
its and The Spirit; some-
going to get, and more and
happiness.
times when I go into a
more I think: It is a mystery.
church and see how mod-
It is 1956 in the suburbs, in the summer. A man
ern Catholics sometimes close their eyes and put
comes home from work, parks the car, slouches up
their hands out, palms up, as if to get more of
the driveway. His white shirt clings softly to his
God on them, it reminds me of how kids in
back. He bends for the paper, surveys the lawn,
college used to cup their hands delicately
waves to a neighbor. From the house comes his son,
around the smoke of the pipe, and help it waft
freckled, ten. He jumps on his father; they twirl on
toward them.) Is it possible that our next step is
the lawn. Another day done. Now water the lawn,
a deep turning to faith, and worship? Is it
eat fish cakes, watch some TV, go to bed, do it all
starting now with tentative, New Age steps?
again tomorrow.
It is a commonplace to note that we have little
faith in our institutions, no faith in Congress, in
Is he happy? No. Why should he be? We weren't
the White House, little faith in what used to be
Forbes
September 14, 1992
65
Peggy
Noonan
called the establishment-big business, big me-
think Washington is a whorehouse and every
dia, the Church. But there's a sort of schizoid
four years they get a chance to elect a new piano
quality in this. We have contempt for the media,
player. They would rather burn the whorehouse
but we have respect for newscasters and colum-
down. They figured Perot for an affable man
nists. When we meet them we're impressed and
with a torch. They looked at him and saw a hand
admiring. We respect priests and rabbis and
grenade with a bad haircut.
doctors. But we are cynical about what they're
Finally, another thing has changed in our
part of.
lifetimes: People don't have faith in America's
It's also famously true that we hate Congress
future anymore.
and keep reelecting our congressmen. I don't
I don't know many people aged 35 to 50 who
know how to reconcile this. Sometimes I think
don't have a sense that they were born into a
there is a tinny, braying quality to our cynicism.
healthier country, and that they have seen the
We are like a city man in a Dreiser novel, quick
culture deteriorate before their eyes.
with a wink that shows we know the real low-
We tell pollsters we are concerned about
down, the real dope. This kind of cynicism
"leadership" and "America's prospects in a
seems
to
me a dodge. When you don't
changing world," but a lot of this is a reflection
believe, you don't have to take part, invest,
of a boomer secret: We all know the imperfect
become part of. Skepticism is healthy, and an
America we were born into was a better country
appropriate attitude toward those who wield
than the one we live in now, i.e., the one we are
power. But cynicism is corrosive and self-cor-
increasingly responsible for.
rupting. Everyone at the top is a moral zero, I'll
You don't have to look far for the fraying of
be a moral zero too.
the social fabric. Crime, the schools, the courts.
Watch Channel 35 in New York and see your
But our cynicism is also earned. Our establish-
culture. See men and women, homo- and het-
ments have failed us. I imagine an unspoken
ero-, dressed in black leather, masturbating each
dialogue with a congressman in Washington:
other and simulating sadomasochistic ritual.
Voter: "Do what is right!"
Realize this is pumped into everyone's living
Politician: "But you'll kill me!"
room, including your own, where your 8-year-
Voter: "Maybe, but do it anyway! I hired you
old is flipping channels. Then talk to a pollster.
to go to Congress to make hard decisions to help
You too will declare you are pessimistic about
our country. Take your term, do it, and go
your country's future; you too will say we are on
home. Kill yourself!"
the wrong track.
Politician: "But I have seniority and expertise
Remember your boomer childhood in the
and I'm up to speed on the
towns and suburbs. You had physical security.
The voters think ashington is
issues. Replace me and it'll
You were safe. It is a cliché to say it, but it can't
be six years before he knows
be said enough: We didn't lock the doors at
a whorehouse and every four
what I know."
night in the old America. We slept with the
years they get a chance to elect
Voter: "Well maybe we
windows open! The cities were better. A man
a new piano player. They
don't want him to know
and woman falling in love could stroll the parks
would rather burn the
what you know. Maybe we
of a city at 2 a.m. Douglas Edwards, the venera-
want someone dumb
ble newscaster, once told me about what he
whorehouse down. They looked
enough not to know what's
called the best time. He sat back in the news-
at Perot and saw a hand
impossible and brave
room one afternoon in the late Seventies, in the
grenade with a bad haircut.
enough to want to do
middle of the creation of the current world, and
what's right."
said, "New York in the Fifties-there was noth-
Politician: "But I love
ing like it, it was clean and it was peaceful. You
this job.'
could walk the streets!" He stopped, and
Voter: "But we never intended Congress to
laughed at celebrating with such emotion what
be a career. We meant it to be a pain in the neck,
should be commonplace.
like jury duty. And maybe I won't kill you.
You know what else I bet he thought, though
Maybe I'll respect you. Take a chance!"
he didn't say it. It was a more human world in
that it was a sexier world, because sex was still a
The biggest scandal of the modern era, and the
story. Each high school senior class had exactly
one that will prove to have most changed our
one girl who got pregnant and one guy who was
politics, is the S&L scandal, in which certain
the father, and it was the town's annual scandal.
members of both parties colluded to give their
Either she went somewhere and had the baby
campaign contributors what they wanted at the
and put it up for adoption, or she brought it
expense of innocent taxpayers who will pay the
home as a new baby sister, or the couple got
bill, in billions, for generations.
married and the town topic changed. It was a
Watergate pales, Teapot Dome pales. It is
stricter, tougher society, but its bruising sanc-
what was behind the rise of Perot. The voters
tions came from ancient wisdom.
68
Forbes
September 14, 1992
We have all had a moment when all of a
children what America is and
sudden we looked around and thought: The
has been. When we talk
We have recused ourselves from
world is changing, I am seeing it change. This is
about immigration, pro or
world we never made
for me the moment when the new America
con, there is, I think, an
began: I was at a graduation ceremony at a
unspoken anxicty: Wc are
our attention to the arts, and
public high school in New Jersey. It was 1971 or
not inculcating in America's
entertainment, to watching and
1972. One by one a stream of black-robed
new immigrants-as some-
supporting them, because they
students walked across the stage and received
one inculcated in our grand-
are the only places we can
their diplomas. And a pretty young girl with red
and great-grandparents-
hair, big under her graduation gown, walked up
the facts of American history
imagine progress. And we
to receive hers. The auditorium stood and ap-
and why America deserves to
turn to money, hoping that it
plauded. I looked at my sister. "She's going to
be loved. And imperfect as it
will keep us safe.
have a baby."
is, and as we are, we boomers
The girl was eight months pregnant and had
love our country.
had the courage to go through with her preg-
In our cities we teach not the principles that
nancy and take her finals and finish school
made our country-the words of the Founding
despite society's disapproval.
Fathers, the moral force that led us to endure five
years of horror to free slaves, a space program that
But: Society wasn't disapproving. It was ap-
expanded the frontiers of human knowledge, the
plauding. Applause is a right and generous
free market of ideas and commerce and expres-
response for a young girl with grit and heart.
sion that yielded miracles like a car in every
And yet, in the sound of that applause I heard a
garage, and mass-produced housing. We are
wall falling, a thousand-year wall, a wall of
lucky in that the central fact of our country is both
sanctions that said: We as a society do not
inspiring and true: America is the place formed of
approve of teenaged unwed motherhood be-
the institutionalization of miracles. Which made
cause it is not good for the child, not good for
it something new in the history of man, some-
the mother, and not good for us.
thing-better.
D.B.D.
The old America had a delicate sense of the
We do not teach this as a society and we teach
difference between the general ("We disap-
it insufficiently in our schools. We are more
prove") and the particular ("Let's go help
inclined to teach that Columbus' encounter
monds.
her"). We had the moral self-confidence to
with the Americas produced, most significantly,
sustain the paradox, to sustain the distance
the spreading of venereal disease to their inno-
between "official" disapproval and "unofficial"
cent indigenous peoples.
succor. The old America would not have ap-
We teach the culture of resentment, of griev-
plauded the girl in the big graduation gown, but
ance, of victimization. Our children are told by
some of its individuals would have helped her
our media and our leaders that we are a racist
not only materially but with some measure of
nation in which minorities are and will be
emotional support. We don't so much anymore.
actively discriminated against.
For all our tolerance and talk we don't show
If we are demoralized we have, at least in this,
much love to what used to be called girls in
demoralized ourselves. We are certainly demor-
trouble. As we've gotten more open-minded
alizing our children, and giving them a darker
we've gotten more closed-hearted.
sense of their future than is warranted.
Message to society: What you applaud, you
encourage. And: Watch out what you celebrate.
2. It's odd to accuse boomers of reticence, but I
(This section was written before Dan Quayle
think we have been reticent, at least in this:
and Murphy Brown, about which one might say
When we talk about the difficulties of our lives
he said a right thing in the wrong way and was
and how our country has changed we become
the wrong man to say it. Quayle is-not a stupid
embarrassed and feel
dotty. Like someone's
man, but his expressions reveal a certain tropism
old aunt rocking on the porch and talking about
toward the banal. This is a problem with some
the good old days. And so most of us keep quiet,
Republican men. There is a kind of heavy-
raise our children as best we can, go to the
handed dorkishness in their approach that leaves
cocktail party, eat our cake, go to work and take
them unable to persuasively address questions
the vacation.
requiring delicacy; they always sound judgmen-
We have removed ourselves from leadership,
tal when they mean to show concern.)
we professional white-collar boomers. We have
Two final thoughts.
recused ourselves from a world we never made.
1. We might all feel better if we took personally
We turn our attention to the arts, and entertain-
the constitutional injunction to "preserve and
nient, to watching and supporting them or
protect."
contributing to them, because they are the only
Every parent in America knows that we're not
places we can imagine progress. And to money,
doing a very good job of communicating to our
hoping that it will keep us safe.
Forbes
September 14, 1992
69
Nikolai Kondratieff's Wave Is Running a Bit Behind Schedule (We Hope)
In the 1920s, Soviet economist Nikolai Kondratieff identified what he believed to be a
boom, it is dismissed by many modern economists as a statistical absurdity. So, they
long-term cycle governing economic activity. Based on studies of such factors as wages
aren't worried that the wave now suggests the West is heading toward another
and commodity prices in 19th century Britain, France and America, he espoused the
economic crisis.
theory that capitalist economies expand and contract in cycles of 50 to 60 years.
As for Kondratieff, he was branded a counterrevolutionary because his waves were
The idealized wave below is often used as a simplified portrayal of Kondratieff's
inconsistent with the Marxist belief that capitalism would self-destruct. The economist
theory. The crests and troughs represent relative highs and lows in economic activity.
was imprisoned in a Siberian labor camp where, according to Aleksandr Solzhenitsyn.
Although the long wave uncannily pretraced the Great Depression and the post-war
he "became mentally ill and died."
Economic
Economic
Strength
Weakness
1790
1800
1810
1820
1850
1850
1870
1880
1890
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
183
1840
his Junes Baher
0 October12, 1992
The white House
Dear me Boher,
ghaineN
The federal government subsidges,
to some extent, housing for low
income people the Federal guarnment
also, through Medicare and
medicaid helpspoy health costs.
Perhips the present cruld,
and employ ment by issuring
in effect subsidye job fraining
vouches to low income unemployed
people which might enable
them to oftain positions not
otherwise available Either after -
Comher has had speake joe truning,
or without such for Karnery,
the government could pay am
englayer through a voucher
system, for further) truning
of a worker and part of a
employ ment wages for a certain
length of from In many cases
workers would be removed from
werfare dependency
It may will be that, in
general, such initially
subsidged and trained worker
would ultimately be able to
fund employ ment in the
Marhetplace, without subsidy,
based on acquired skills
and experience
Employers would have the
advantage of being also to
free going which they able might
not otherwise be
to afford to fill
I would appreciate hearing
from you whether you thank
such aprogram might be
world while
60 Morrow Ruenue Hory truly yours.
Scardale NY
Kulind H Fernings
10593
RICHARD H FEINSINGEN
also, doyou thank that restoring the
interest would help the economy ?
deductibility of credit Card purchase
Rechard H Jeinsonger
29
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4332
ner Janes Baher 1992
Clief Staff
The White House
Washington
DC.
suggestions
Taylor, Thomas & Lord
Investment Bankers
MRN
VENTURE CAPITAL PUBLIC FINANCING
6543)U.S. ONE S.
VNV. PALM/BEACH. FLORIDA 33408
17 October 92
(407) 840-0950 567-7103
James A. Baker III
Chief of Staff
The White House
Washington, DC
Re: A "Hail Mary" bomb to win the game
in the few remaining days
Dear Mr. Baker:
It is clear that Mr. Bush needs to deliver a knock-out punch in
the final debate if he is to bere-elected and if you, as I hope,
are going to be the candidate for president in 1996.
Let me suggest that Mr. Bush equate Governor's Clinton's program
with Socialism. It calls for the government to pay an increasingly
larger role in the lives of all Americans.
There is a growing tendency is America to look to the government
to solve all our problems --whether social or commercial. The age
old fight in America has been between those who want the government
to shape their lives and those who want the government to leave them
along SO they can work out their own destiny. This is the essential
difference between the Democratic Party, which wants to run the lives
of the people and the Republican Party which champions individualism,
initiative, and self-reliance. (Should be the tenor of Mr. Bush theme).
All over the world, Mr Bush can point out, centralized, socialist
governments have failed and their peoples crying out for more free-
dom from oppressive government regulations, requirements, and more
and more taxes (Sweden, for example).
This charge of Socialism will be powerful in influencing voters. Mr.
Bush should then offer a positive economic program calling for
accebrated depreciation on automobiles (to four years) which are
made in the U.S. jusitifying this on basis that a $15,000 U.S. car
brings in about $5000 in taxes, whereas an import pays only about$400.
And U.S. car makers pay $1800 a car in health benefits. Mr. Bush
can say he simply wants to level the playing field. Also, real
estate construction can be revitalized by accelerating depreciation
on commercial buildings and rental properties to 20 years (vs present
40 years). And machine tools made in the U.S. should have acce krated
depreciation. (This will save Pennsylania and New England)
This is a hasty letter, but am positive the charge of Socialism will
save the election for Mr Bush. Your speech writing staff should be
able to develop this theme with persuasive examples.
RETAIL Robert E. Taylor
Cordially,
P.O. Box 650253
Vero Beach, FL 32965
President
P.S. Excuse hasty letter knocked out at home op Saturday.
TAYLOR, THOMAS & LORD
640 U.S. 0 ne South
Vero Beach, FL 32962
James A. Baker 3rd. - Chief of Staff
The White House
1600 Pennsylvania Avenue
Washington, DC 20505
Urgent: Re Tuesday night debate.
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
02. Fax Cover
From: Wayne Howard to James Baker
10/19/92
(b)(6)
Sheet
Re: The Economy is Reacting to a "Paradigm Shift"
[Redaction of personal information] (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Chief of Staff to the President, Office of the
Series:
Baker, James A. III
Subseries:
Public Correspondence Files
WHORM Cat.:
File Location:
[Public Correspondence, Oct 1992] [7]
Date Closed:
8/21/2001
OA/ID Number:
93011-002
FOIA/SYS Case #:
2000-0715-F
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
SUITE SUCCESS
No.
2149601309 Oct 19,92 16:04 P.01
FAX COVER SHEET
Wayne Howard
NRN
1407 Chesterton Drive
Richardson, Texas 75080
(214) 480-0726 FAX (214) 960-1309
Work (214) 386-6765, or 423-9119
Pages; (Including cover sheet) (2)
DATE: 10/19/92
TO: JAMES BAKER
FAX #: (202) 456-2461
RE-ELECTION CHAIRMAN, THE WHITE HOUSE
WASHINGTON, DC
SUBJECT: THE ECONOMY IS REACTING TO A "PARADIGM SHIFT"
From : Wayne Howard
But this experience also afforded me the opportunity to explore
and understand the real factors that have brought about this low
period in our economy, and I do mean low period, because I have
also discovered that this is also a period of great opportunity!
The American people are looking for "CHANGE". The President needs
to present himself as the ARCHITECH OF POSITIVE CHANGE FOR
OPPORTUNITY and state the following facts about the economy in
terms the average American will understand:
1. The U.S. economy is part of a "GLOBAL ECONOMIC ORDER".
2. A "PARADIGM SHIFT" in the global economy is underway and is
occurring across virtually all industry sectors, i,e, AUTO,
ELECTRONICS, CONSUMER PRODUCTS and COMPUTER SYSTEMS.
3. The massive outs in employment by corporations like IBM, GM,
and others are being made to become more competitive in a
GLOBAL MARKET that has matured to the point where U.S.
Corporations have, for the first time, serious competitors and
enormous opportunities for growth in world markets.
* Improved U.S. products are already appearing to meet the
challenge; Compare a U.S. Auto of today with one from only a
few years ago and you will see dramatic change in quality,
safety and driver investment protection.
*
COMPAQ Computers restructured their corporation and their
products and today they are "Production Bound". They cannot
meet the increased customer demand for their new products!
SUITE SUCCESS
No.
2149601309 Oct 19,92 16:05 P.02
CHANGE CONTINUED
......
4. Business leaders like John Soully, Chairman & CEO of APPLE
COMPUTERS, a partner in a new alliance with IBM and MOTOROLA
to jointly develop new technology recently stated,
"A wonderful collision will occur between Computers, Home Electronics,
Telecommunications and Publishing that will create tremendous
opportunities and a market in excess of $3 TRILLION."
5. New technology will create new jobs and opportunities for
Americans in new companies that emerge to meet these demands.
6. The Bush/Reagan era has made this kind of opportunity possible
by stabilizing the world, creating an environment for open
global markets and encouraging cooperation between trading
partners. A recent export report used Illinois as an example
of Free Trade with Mexico and showed exports from that state
alone exceeded $2 Billion annually which translates to jobs!
these $ Trillion Dollar Export Markets.
The U.S. economy is now strategically positioned to exploit
The President needs to STAND UP, SPEAK UP AND TAKE THE REAL FACTS
TO THE PEOPLE and GIVE BILL CLINTON HELL ON HIS OWN RECORD!
10-19-1992 09:53PM FROM SAL-SON HQ
TO
12024562461
P.01
Fax From Leonard C. Pflanz, Jr. of 41 Briggs Street in Pacific
Grove, CA (408) 375-5475 to James Baker (202)456-2461
James Baker, Chief of Staff
The Whitehouse
NRN
1600 Pennsylvania Ave.
Washington, D.C.
Re: Vetting Clinton's Actions in Moscow and Elsewhere
Dear Mr. Baker:
This is important. Still, I apologize that this faxed letter
is so long: Exigency doesn't permit me the luxury of brevity.
It seems pretty clear to me that a Presidential candidate
should be vetted¹ when evidence arises that he or she might
be a security risk. The need to vet future leaders of this
country who represent risks to national security is not
simply a matter of federal law: the President has implicit
and explicit security obligations rooted in the Constitution.
From what I have learned from Bob Dornan and elsewhere, it is
clear that Governor Clinton has not come clean with either
the press or the American people on his anti-Vietnam War and
anti-American activities, both here in this country (e.g., at
Martha's Vineyard) and outside of this country. As a
conscientious objector at that time who refused induction and
fully expected to spend a long term in prison, I still feel
that aspects of his anti-Vietnam and anti-American war
activities outside (and possibly those inside) this country
were security violations and even possibly traitorous.
Additionally, there can be little doubt that Bill Clinton was
inducted into the armed forces and that, is it were not for
his ability to dissimulate and manipulate the system, he
would have gone into one of the branches of the military or
to jail. All of this becomes an issue in light of the
position that Governor Clinton may end up being elected to.
Certainly, these clandestine anti-war actions, as well as
close friendships at that time with known anti-Vietnam War
types such as Tom Hayden, make him a security risk. Indeed,
in my opinion, what little is known about him ipso facto
disqualifies him for even the lowest of security clearances,
much less access to the 'football' and a knowledge of secret
1 When today I called the S.F. FBI and got the agent on duty as strange thing happened. I
explained in a vague, general way what I was doing and ask whether or not there was any
law that prohibited the gov't from vetting if candidate for federal office, she did not
understand me at first because she had never heard of the verb yet. I guess it's a neologism
that comes from an older use of the verb referring to a medical or veterinarian
examination.
10-19-1992 09:54PM FROM SAL-SON HQ
TO
12024562461
P.02
JIM BAKER FAX FR. PFLANZ AT WHITEHOUSE: (202) 456-2461
2
projects and options, plus access to intelligence of a secure
nature.
At the present time, it is clear that the American people are
in no position to make a decision about these matters because
they have no information upon which to make any sort of
rational decision, nor are the media able and willing to
pursue these issues. In short, the American people are
congenitally out of the loop on this one, if nothing is done
by the Executive Branch in whom the bulk of the power of
protecting national security resides.
I am confident that you and the President have considered
some of the known or suspected Clinton national security
negatives. These negatives include repeated lying, stone-
walling, adultery, draft dodging, misappropriating
scholarship funds, security-risk acquaintances, possible
contacts with enemy agents complete with the existence of
documentation, including movies, that could be used to
blackmail and manipulate him, should he become President.
Still, precious little has been yet made by either the media
or those supporting the President of the extant details of
the heavy character baggage carried by Clinton. And,
unsurprisingly, to mask what are real and damning allegations
to my mind, attempts to bring these negatives to light have
resulted in from Clinton, et.al. the clarion calls of
"McCarthyism" and "pitifulness" rather than coming up with
truthful answers.
I am, therefore, writing this long letter because I hope
against hope that there is no failure in The Executive to
insist on receiving the following:
1. From the KGB and GRU and any other appropriate agency
within Russia and CIS, any compromising documents they have
on Bill Clinton as to whom he met with in the USSR as well as
what he said and did on his extended, dead-of-winter vacation
at the height of the Vietnam war in Moscow and elsewhere in
the USSR. His vacation story is just not convincing for a
number of reasons that cold warriors like Bob Dornan and
Brent Scowcroft can doubtless argue. For one thing, until
April of 1969, only "affinity groups," according to my
source, were allowed to travel there, though Clinton, we are
told, travelled there alone (as you know, Bob Dornan and Co.
werc locked up in Moscow the week before Clinton got there).
And, frankly, I find it difficult to believe that the semi-
priapic Clinton did not encounter a peace "sparrow" or two or
three or four on his irenic ornithological explorations
there-providing sexpots for compromising films, etc., is
S.T.O.P. for the KGB. That he only vacationed there and did
Fax From Pflanz to James Baker (202)456-2461
10-19-1992 09:55PM FROM SAL-SON HQ
TO
12024562461
P.03
JIM BAKER FAX FR. PFLANZ AT WHITEHOUSE: (202) 456-2461
3
not meet and plan with KGB-fronted and -funded "peace
organizations," like the World Peace Organization or their
agents, is just out of character with what seems to be, from
all the evidence, a young Bill Clinton's preoccupation with
extricating the U.S. from Vietnam at any cost.2 I also think
a number of these issues should be raised in a systematic and
dogged way by responsible parties within and without the Bush
Administration, particularly in the absence of cooperation
from the Russians and CISies.
2. Which peace groups did Clinton have contact with in
England and who were his contacts within those groups? And
what was his role in which demonstrations? Etc? These
questions need answers, not just from Clinton and his past
peace associates but from British gov't records, if extant.
Agents of Communist gov'ts and British anti-American groups
could well have provided him with extra-money to go on his
peace trips and the names of people to contact in his travels
in Western and Eastern Europe, in addition to names on whom
to make contact with in the Soviet Union.
3. How many countries did he travel to and what were their
names in this 40-day extra-curricular vacation for peace in
Western and Eastern Europe? Who were his contacts there and
how did he find them? Were these contacts allied with any
communist or anti-American powers or groups? Can there be any
doubt in light of the power and access that Governor Clinton
may have that the United States gov't has a Constitutional
national security obligation to ask these foreign powers for
copies of their Clinton files? The East European countries
that the peripatetic presidential candidate dallied in
include Czechoslovakia, but may also include a number of
other behind-the-iron-curtain nations.
4. And what went on here? The FBI should, using the
polygraph, interrogate Clinton and Hillary, not to mention
his past and current associates as to his anti-war
activities, travels, and contacts, since he, despite being a
Presidential nominee, is a prima faciae security risk,
according to the public information available on him, some of
which even he has confirmed. Indeed, he continues to surround
himself with guys like "economist" David Ifshen (sic?), who
are indubitable security risks. Ifshen, during the Vietnam
War, traveled to Hanoi and on radio there told American
soldiers to lay down their arms and in other indirect ways
This contradicts young Bill Clinton's attempts to become an officer in
various branches of the service (he failed the physical on each
occasion) prior to wangling illegally and reprehensibly out of his ROTC
appointment. These are the actions of an anti-Vietnam War opportunist
concerned with maintaining his "political viability" and elitist
prerogatives whilst ignoring his duties to conscience and country at
minimum.
Fax From Pflanz to James Baker (202)456-2461
10-19-1992 09:55PM FROM SAL-SON HQ
TO
12024562461
P.04
JIM BAKER FAX FR. PFLANZ AT WHITEHOUSE: (202) 456-2461
4
cost the lives of American servicemen. It is even possible
that Ifshen was or is a Soviet or East European agent. The
same possibility holds true for Clinton. We just don't know.
In conclusion, I encourage you and President Bush to pursue
these security issues with great energy-and quickly-because
anyone who has aided and abetted the enemy in wartime and
lies about it, and who would, it appears, be unable to get a
minimal security clearance as a result, is hardly a qualified
candidate for the land's highest office. Governor Clinton's
lying, stonewalling, as well as tight lips on this whole time
period, signal that he has done things against his own
country which he is not proud of, which are, in all
likelihood, treasonous, and which are at loast disqualifying.
Moreover, it is against the national security interest to
have a blackmailable leader. To have a Burgiss or ex-Burgiss-
type running this country would be a security disaster, Mr.
Baker.
As a lover of this land, if you have not already brought each
and every one of these issues before President Bush, I exhort
you Lo do so in the strongest way and to urge the President
to pursue through the legal channels available to him the
avenues of vetting that I and others have brought to your
attention-not as a matter of mere partisan politics but
because it's the President's Constitutional obligation to
explore fully the likelihood that Governor Clinton has been
and continues to be a national security threat. One last
point, if my proposed thorough vetting of Governor Clinton
requires it, consider this letter a specific accusation
naming Governor Clinton as being a risk to the security of
the United States of America and, at the same time, consider
it a demand for such an investigation.
Yours sincerely,
Leonard C. Pflanz, Jr., concerned citizen.
Fax From Pflanz to James Baker (202)456-2461
TOTAL P.04
RCV BY:Xerox Telecopier 7020 10-20-92 :11:52AM :
CCITT G3->
:# 1
Robb Austin
2500 Virginia Avenue, N.W.
(202) 333-5130
Suite 1105 South
Washington, D.C. 20037
NAN
TO: Jim Baker
Chief of Staff
FR: Robb Austin
RE: Sunday Talk Shows
DATE: October 19, 1992
I hope you're reconsidering my earlier memos regarding the
President appearing on Sunday network talk shows.
Early in the campaign, the 'softball' talk shows worked for
Clinton and Perot. It was new and different, and the people tuned
in.
With two weeks to go, the President can strike "new ground" by
appearing on the network Sunday talk shows, and a good case can be
made that these appearances will HELP his election chances.
With the debates complete, the President MUST press his issues
in a credible format, and the network talk shows offer the best
opportunity.
It is also absolutely necessary for CLINTON to appear as well.
He will NOT stand up well, and at this stage of the game Clinton
knows there's alot to lose in being questioned by Sam Donaldson and
George will.
Ask yourself one question. Does Clinton want to appear on
Sunday talk shows. Of course not. Why? Because he winning!
One last piece of advice. DON'T include Perot -- I don't
think you'll have to worry about him on this one -- but believe me
-- he's hurting you.
CC: Charlie Black
RCV BY:Xerox Telecopier 7020 10-20-92 12:06PM i
COITT G3-
1# 3
OF $103 MILLION DOLLARS. THE GUTS OF THIS MAN IS AMAZING.
and he has waged SALMOST SINGLEHANDEDLY a legal battle for
his release. HIS CRIME??? HE INVENTED A FALE/SAKE TAMPER/PROOF
CONTAINER that makes every thing else subject TAM/Son to CRIMINAL
NEGLIGEMCE, INCLUDING THE COKE COLA COMPANY CAPS which subjects
them to enormous lawsuite. HUMMER HAS PROVED HIS INMOCENTS IN
APPEALS in THE U.S. DISTRICT COURT for THE DISTRICT OF COLUMMBIAL.
COPY OF SAME IS ENCLOSED F OR YOUR LAWYERS TO REVIEW ON ANY AND ALL
actionss you might want to take
4 SUBIE BAY WAS GIVEN BACK TO THE PHILUPINES PEOPLE ON A'DEAL
-
THROUGH THE 'REAGON STATE DEPARTMENT THAT JAMES BAKER HAS
JUST COMPLETED WITH OR WITHOUT THE FULL KNOWLEGE OF PRSIDENT
GEORGE BUSH
TME DEAL INVOLVES THE 12 (BULLION) IN $BILLION GOLD OF THE
that THE JAPANESES BURIED DURING ONE OF THEIR SORTIES
into the WORLD WAR 11 CHINA MAINLANDS raids IN EXCHANVGE FOR
SUBIC BAY WHICH COST US ABOUT 50 BILLION TO BUILD (OR MOORE )
ASK BAKER ABOUT THE SAME ITEM, AND MAYBE YOU WILL GET AN IDEA
of the corruption and TAX SPENDING CONGRRESSIONAL HABITS that
has created the 4 $4. trillion dollar piublic debt that will
risE: to $5.5 in fiVe years ACCORDING TO GBO
I advocate A 'SURPLUS BUDGET AMENDEMT'NOT A "BALANCED BIDGET AMENDMWNT
"
I TOO AGREE TO TAXTHE GASOLINE FOR THE PEOPLE THAT USE SAME INDIS-
CREMINATLY, NOT THE HARD WORKING MA N THAT HAS TO TRAVEL FOREVER TO GET
work on alow income in the first place GIVE HIM A VOUCGHER TO GET TO
work back nad forht.
I ESPOUSE A NATIONAL INDENDENEE PARTY ) COPY OF LETTERS IN ATTASHED
form
I ESPOUSE RAISING THE AGE TO RETIRE TO 67 ( if it turns out to
be too much of a hardship then on a case by case bsis .let that person
have a brake. WHEN YOU IMPLIMENT SAME THAT YEAR LET THE PERSON
that can not wait take a 70 % 61 year of age retirement .on his SS/.
OF COURSE THERE IS CONVEVATION THAT CAN BRING THE NATIONAL DEBT
FIGURE DOWN.
I am available at your becon call , and appreciate what you are
doing for our comutry//
A FELLOW AMERICAN < AND I BELIEVE A PATRIOT LIKE YOU)
SEMPER FIDELY
Inc Run
JACK PAPPAS/ BOX 20231/ ALMEANDRIA. VA. 22320-1231/ (703)
ALL INTERIORS
TEL No.
2023332221 Oct 20.92 7:02 P.01
IIA
ALL INTERIORS, INC.
1511 Wisconsin Ave. " Washington, D.C. 20007 . (202) 333-2220
FACSIMILE TRANSMITTAL COVER SHEET
October 19, 1992
3
Date:
Number of Pages
(including cover page)
To:
White House
Attention:
The Honorable James Baker
Fax Number: 202-456-2461
From:
Kambiz Shekarian
Re:
Transmitted from fax Number:
Message:
If there is a problem with this transmittal, please call us immediately
at 202/333-2220
ALL INTERIORS
TEL No.
2023332221 Oct 20.92 7:02 P.02
6434 Wishbone Terrace
Cabin John, MD 20818
NRN
October 19, 1992
The Honorable James Baker, III
Via Fax to 202-456-2461
Chief of Staff
White House
Dear Sir:
I hope the letter I sent to you by fax yesterday didn't end up in the waste basket
without any attention. As you well know, time is running out for anything and anybody
that has anything to do with the coming election.
I think the best thing to do is to find an opportunity and make it possible for
President Bush to lay down his economic plan in front of the nation and clearly explain
how he wants to carry it out and where he plans to take America for the year 2000.
I heard you are supposed to have a press conference to talk about President
Bush's economic plan. I hate to say that this won't do any good-it may even cause a
negative reaction. That is not to say that you are not good and capable; it just does not
make sense to people for you to try to explain instead of him.
On the other hand, I believe that if the Republican Party is able to buy TV time
for two or three times for 30 to 45 minutes without any interruption, just like Ross Perot,
on one or two networks in prime time, that would give President Bush a great
opportunity to talk directly to the nation. You and another popular Republican face you
trust (such as Jack Kemp) could appear with him on the program and lay down
everything on the table with charts, documents, projections, and actual numbers.
President Bush can tell the nation what is really going on, what he wants to do, and
where he wants to take this country, all in language all average Americans can
understand. I am suggesting one of these presentations must be on the last night of the
campaign, so that President Bush would have the last word.
Mr. Baker, I strongly believe that President Bush owes these explanations to his
supporters, the American people, and a big portion of the world that depends on him
and him presidency; and you, I, and all Republicans and supporters owe it to President
Bush to pay for it one way or the other. It is extremely important and imperative for
him to be able to be relaxed and comfortable to talk to the nation without any
interruption.
We are at the end of the twentieth century. The power of television for
communication is undeniable. You should take advantage of this tool as much as is
possible and use it against the opposition. I think President Bush must have this
ALL INTERIORS
TEL No.
2023332221 Oct 20,92 7:03 P.03
opportunity to tell the American people all he wants, or even something you know that
we don't know. He must win this election at any cost, even if he has to use his
opposition's tools. Use their tools against them--how about that?
I hope you will seriously think about this idea and consider any option for victory.
As you know, "There is no substitution for victory."
Respectfully,
Von Kambiz Shekarian
OCT 20 '92 08:33 ALVIN F. KIMEL
804 460 4460
TO:
52 P01
Alvin F. Kimel
3556 SHORE DRIVE, VIRGINIA BEACH. VA 23455
To: James Baker
MON (804) 460-4460
Urgent
Following is a copy of the
Fax l have sent to
George Bush, Richard
Bond and Rush Lembrugh
ae
OCT 20 '92 08: 33 ALVIN F. KIMEL
804 460 4460
TO:
52 P02
Alvin F. Kimel
19 October 1992
3566 SHORE DRIVE, VIRGINIA BEACH, VA 23455
(804) 450-4460
The President
The White House
Washington, D.C.
Dear mr. President:
The odder are overwhelming that your
sad point is the good aed Republicant
defeat for reelection in abvious. The
Party will begsing down with you,
as well as ets values regarding
morals, individual incentives, free
Choice for school, religious freedom,
and the list goes and
years, I learned that if things to be were made.
Having been in business for over forty
not working, a change had
Leh me give you one suggestion that
the insiden say must happen, as you
know, is called Sea Changes It well
revitalize your campaign and bring
victory to you and all of used.
ask my dear friend, Daw quayle,
to step down and replace him
(1)
OCT 20 '92 08:34 ALVIN F. KIMEL
804 460 4460
TO:
52 P03
with Ross Perat as Vise President,
with the full responsibilities of the
economy recovery and rebuilding of
our capital bass. also, in would
be his jet to fight its throught
Congress and, if necessary, use the
White House as his pulpit to informe
the public of what is happening, and
of Course, with your five support.
t know this is tough for you to dese
with, as well as in would be for
Ross Perat, however, let's make the
phrase "What's good for the country,",
meaningful. Plus, in would keep
Clinton and the Democrate out of
the White House and save the
two -perty system.
CC: James Baker
Richard Bond
Sincerely,
alvin F. Rimel
-2-
10/20/02
08.10
202 371 0000
AmerFreodomCoaln
J
001/002
AMERICAN
American Freedom Coalition
FREEDOM
COALITION
800 K Street, NW, Suite 830
Washington, D.C. 20001
(202) 371-0303
FAX: (202)371-0909
FAX COVER SHEET
DATE: 10/19/92
TO:
gim
Baker
COMPANY:
BUSINESS PHONE:
FAX PHONE:
202-456-2461
FROM:
Gary Jarmin
# OF PAGES TO FOLLOW: 2
SPECIAL INSTRUCTIONS:
10/20/92 08:19
202 371 0909
AmerFreedomCoaln
X
002/002
NPN
Ode to Bill Clinton
He was a charming master of deceit
Dodging the draft with his feet
Clearly lying, while Americans were dying
He protected his viability
for White House nobility.
At Oxford he did as he pleases
Took no exams nor finished his thesis
Inspired by McSorley, he protested old Glory
To Uncle Sam he did not bow
On to Oslo, On to Moscow!
Learning nothing except not to inhale
He cast his fortunes towards Yale
Was a lousy bet, for Hillary he met
She was only one lover
He needed always another.
But the marriage would not die
Hillary forgave his wandering eye
Gratefully he foresaw, now in Arkansas
The Gov was finally empowered
for many to be deFlowered.
But this should be forgotten as the past
The media now reminds us at last
Shame on the right, for being "McCarthyite"
To grouse, about this louse
occupying the nation's White House.
Gary L. Jarmin
KESHER COMPUTERS, USA TEL:919-859-1216
Oct 19.92 21:09 No.002 P.01
NRN
FAX Transmission
From:
Amnon Nissan
Kesher Computers
Questions?
Call 919-859-0360
Div. Of Nissan Inc.
To:
JAMES BAKER
5421 Wayne Street
Company: -HITE HOUSE
Raleigh, North Carolina, 27606
Date:
10-19-92
Time:
15:31
(Including this one) / pages
Message:
Shalom Y'all !!!
SIR.
I WOULD LIKE FOR SOMEONE FROM your office, TO
CALL ME AT 919-859-0360, of LEAVE ME D VOICE
NUMBER WHERE I CAN CALL you. I THINK I. HAVE
A FEW POINTS THAT COULD HELP THE PRESIDENT'S
ARGUMENT ON WHY FOREIGN ACTIVITIES folicy WERE so IMPORTANT
DURING H15 LAST FOUR YEARS. I WISH IT COULD BE
DONE BEFORE TODAY'S DEBATE, BUT NO ONE CAN SAY
I DIDN'T TRY
YOURS
AMNON NISSAN
P.S. If 1 COVED GFT you ON THE PHONE, 11 1-166 HELP.
Oct.20 '02 7:37
1234 GHOUGACOIAN
TCL 6104273517
P.1
NRN
THE HONORABLE JOSEPH GHOUGASSIAN, Ph.D., J.D.
Ambassador of the United States of America
FAX MESSAGE
TO:
Secretary James Baker VII Chief of Staff
white House
FROM:
DATE: October 16, 1992
NUMBER OF PAGES
2
INCLUDING COVER:
MESSAGE:
FYI.
We are behind the President
all the way
Regards,
Joe
please report any problems to
(619)476-7847 fax(619)427-3517
Dot.
20
'92
7:38
1234 GHOUGASSINN
TEL 6194273517-
P.
2
the Diego
Tuesday
Union- Tribune.
Scutti County
October 20. 1002
Would Clinton have botched the gulf war?
By JOEEPH BHOUGASSIAN
F
or some time now, I have been cu.
rious about the position of Bill
Clinton on the Peraian Gulf War.
Not that the state of the economy is un-
I'M
THE
important. But, the post-Cold War
CANDIDATE OF
world is still revaged by unsolved con-
CHANGE!
fhets. And only the president of the
United States has the constitutional
powers to conduct foreign affairs and to
be communder-to-chief of the armed
forces.
Clinton made some startling state-
ments on the war.
Two days before the allies launched
the air strikes against Iraq, Clinton told
the Associated Press that he was in fa-
VAP of the sanctions against Iraq instead
of waging war: He stated: "I agree with
the arguments of the people in the ml.
nority on the resulution - that we
should give sanctions more time and
DOG GORRELL
maybe even explore as full-scale embar-
,80 - before we 80 to was."
rity, his lack of knowledge of the issues,
without 4 clear mandate from the U.N.
Yet, once Desurt Storm was won in
a weak will and a desire to please ev-
Security Council, to pursus the war in-
flying colors, he contradicted his prior
erybody and be anything to anybody.
side Iraq. because that would have been
statement and opted for war over same*
Clinton is not the only master in flip-
the only way to remove Seddam and
tions. During the NBC News Demn-
flopping on the subject of handling Sad-
the hundreds of members of the Bas-
cratic Party presidential debate, he de-
dam Hussein. His running mate, Sen. AI
thist regime, several diplomatic fisacos
clared: "I think we all ought at least to
Gore, has shown B similar penchant.
would have resulted:
admit that the president was right to
During the war, on Jan. 30, 1991,
Our allies in Desert Storm would
kick Saddam Hussein out of Kuwait,
Gore said: "We are not accking the sur-
have been up in arms against our Lone
and if hc hadn't. he would still be there
render of Iraq. Any effort to expand our
Ranger-style venture.
today, he'd be threatening Saudi Are-
objectives RO as to include the military
The power vacuum created by the
bis, and the sanctions never would have
conquest of Iraq would certainly blow
absence of a strong leader inside Iraq
worked."
spart the care of international consen-
would have invited Iran to invade, an-
An ardent Clinton supporter may ar-
sus upon which all else depends. The
nex or infiltrate southern Ireq, and Tun
gue that a candidate has the right to
removal of Iraql forces from Kuwsit is
key would have invaded or annoxed the
change his mind. My reply is that in di-
enough to warrant a suspension of com-
territories of the Iraql Kurds, lest they
plomacy and in a situation of imminent
hat operations. That is clear."
band with the Turkish Kurde.
armed conflict. the president does not
Gure further stated: "Our objective,
The solidarity among the allied
have the luxury to waver or be equivo-
whether or not Saddam Husscin sur-
forces would have vanished. Most nota-
cal. In diplomacy and military crials,
vives, should be to ensure that Iraq re-
bly, the Arab and Muslim armies would
time in of the essence; Graness and
mains incapable of a serious offensive
have aevered tice with the U.S. forces.
consistency are required traits to ade.
military threat to its asighbors."
A distabilization of Iraq would have
quately perform the job of president.
Gore was correct in his interpreta-
destabilized the region.
After all, human lives are at stake.
tion of the intent of the U.N. Security
U.S. soldiers would have fought
Clinton is master of circular arguing
Council war resolutions. The United
longer and suffered serious Inssea.
and using sophisms or false arguments
Nations did not authorize the allied
It is neither good diplomacy nor good
with the conscious intent to deceive.
forces to expand the war inside Iraq or
judgment on the part of the command-
For instance, he has said: "I guess I
to remove Saddam from power.
er-in-chief to solve a conflict by creat-
would have voted with the majority if it
However, with Lime, Gore has re-
ing new and larger conflicts. Yet, this
was a close vote. But 1 agree with the
versed his position and claimed: The
would have been the natural outcome
arguments the minority made."
administration made, what is in my
had Clinton and Gure occupied the
Which way is it? In 3 real-life situs-
view. a big mistake in the final stages of
White House.
tion of conflict, it would not be advis-
the conflict by choosing to allow Sad-
Clinton's own words confirm what
able to engage lo rhetoric. Yet, Clintop
dam Hussain to remain in power,"
one Arkansas newspaper editorialized
argued in favor of both sides of the is.
Gore's revised call did not end with
about its homegrown boy: "Those seek-
AUE.
climinating Saddam alone. He asid hun-
ing Bill Clinton's unwavering support
What makes a politician Dip-Nop on
dreds of others making up the Barthist
for a crucial decision on war or peace
an issue of vital national intercat like
party also should have been eliminated.
need only meet one requirements First
how to handle Saddam's invasion of Ku-
"We made a tragic mistake
to
leave
will the war. Then he'll come through
wait? 1 believe that under the logical
the Basthiat regime in power there." he
100 percent. William Jefferson Clinton
cophistries lie Clinton's sense of insecu-
said,
in not units to desert a causedo itshour
Gore's statements are, at heat, naive
of victory."
CKOUGASSIAN, a San Diego resident, was
in world affairs, and insensitive to the
I know how Provident Bush handled
US. ambassacion to Qatar from 1885 to late
realities of Middle East politics. If the
the gulf war. Would we be better off to-
1989.
administration had decided on its own.
day If Clinton had been at the beim?
RCV BY:Xerox Telecopier 7020 :10-20-92 :11:44AM ;
CCITT 03->
;# 1
Sun 18 Oct 1992 11:46:39
Van CORTLANDT RESOURCES Company
Page 1/3
FRANK C. BURGER
MEN
MR. JAMES A. BAKER III
10/20/91
CHIEF OF STAFF
THE WHITE HOUSE, W.D.C.
DEAR MR. SECRETARY:
OK BOSS, YOUR GOOD FRIEND AND OUR PRESIDENT DID WELL, HE EVEN
SNUCK IN THE "PRODUCTIVITY IS UP" POINT. ALSO, THE RHETORIC
ABOUT ANTI- "TRICKLE DOWN" GOVERNMENT EFFECTIVELY COUNTERED
THE INEVITABLE AMTI SUPPLY SIDE BUSINESS, (WHICH EVAPORATED
BY 1984 ANYWAY).
THE KEY POINT NOW IS THAT THE PRESIDENT CONVINCE US'NS TO
VOTE FOR RATHER THAN AGAINST: FOR HIM, NOT AGAINST GOV.
CLINTON. VOTING FOR THE PRESIDENT REQUIRES THAT WE RECOGNIZE
THAT HE RECOGNIZES NOT ONLY THAT TIMES ARE TOUGH, BUT THAT
THE BELTWAY HAS FAILED US, THAT WE NEED SYSTEMIC CHANGE, A
NEW MODEL DESIGN, A "NEW PARADIGM" (WHAT A SPELLING).
FOR THE "SWINGERS"- THE UNDECIDEDS, THE EISENHOWER/MIXON/
REAGAN" DEMOCRATS, FOR SHELL-SHOCKED "YUPPIES", AND FOR THOSE
WHO WILL COME OUT TO VOTE IN FEAR OF THE FUTURE- WHOM I
BELIEVE WILL DETERMINE THIS OUTCOME, THE PRESIDENT DOES NOW
HAVE A RATIONALE TO DEFINE & DELIMEATE.
I- THE MISSION. STRUCTURAL CHANGE.
IT IS FOR THE PRESIDENT TO ESTABLISH THE POINT THAT WE ARE
ENTERING A NEW ETHOS, PARADIGM, OR, "SYSTEM FOR THE 21st
CENTURY" AND THAT HE HAS THE AGENDA TO LEAD US THRU THIS
PERIOD OF TRANSITION.
THIS IS AN HISTORICALLY DISTINCT PERIOD, REQUIRING FULL
RECOGNIITION AND UNDERSTANDING: NOT ONLY THAT THE COLD WAR OF
SUPERPOWERS IS OVER, THAT WE ARE NO LONGER THE DOMINANT
ECONOMIC POWER, BUT IN A PEER RELATIONSHIP, AND THAT
TECHNOLOGY HAS, AND WILL CONTINUE TO ACCELERATE THE SHRINKING
OF THE GLOBE - WITH IMPLICATIONS FOR INCREASED ECONOMIC
COMPETITION AND CULTURAL HOMOGEMEITY.
THIS IS TRUE NOT BECAUSE I SAY SO, BUT BECAUSE WARREN
RUDMAN, PAUL TSONGOS, PETE PETERSON, FELIX ROHAYTON, A HOST
OF BUSINESS LEADERS AND A GAGGLE OF ECONOMISTS KNOW IT TO BE
SO. MORE IMPORTANTLY, SO DOES THE COUNTRY.
IT IS TRUE THAT THE BELTWAY HAS FAILED US BECAUSE OF THE
RECORD, OF THE FACTS. IT WAS EVIDENT IN THE DISGRACEFUL
BUDGET DEADLOCK OF AUGUST 1990: A SICK CAMEL WAS DRAWN WHEN A
THOROUGHBRED RACEHORSE WAS NEEDED. THE SEEDS OF THE GLOBAL
CONTRACTION WERE ALREADY EVIDENT.
THE MAIN NEED IS FOR STRATEGIC THINKING, AND TO SET AN AGENDA
FOR SYSTEMIC CHANGE THAT THE AMERICAN PEOPLE CAN UNDERSTAND
AND WORK TOWARD. IN SHORT, TO DEMONSTRATE THAT "GEORGE GETS
IT!" DEMONSTRATE THAT THE PRESIDENT IS NOT MIRED IN AM OLDER,
POST W.W. II GENERATIONAL PERSPECTIVE, THAT HE IS COMMITTED
1975 Commerce St., POB 424, Yorktown Hts N.Y 10598
Tel: 914-737-3621
Fax: 914-737-7835
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FRANK C. BURGER
TO A FORWARD LOOKING AGENDA, NOT MERELY OFFERING REASONS TO
VOTE AGAINST THE OTHER SIDE(S).
1- ROSS PEROT'S PERSPECTIVE IS ANDY JACKSON, ANTI-TAMMANY
HALL, GEORGE WALLACE AND HUEY LONG WRAPPED IN ONE. THE
BELTWAY HAS FAILED US: THE SITUATION IS CRITICAL, WE NEED
SYSTEMIC CHANGE AND THE OLD "SWAMPY BOTTOM" WON'T GET IT
DONE.
2- GOV. CLINTON MESSAGE IS GENERATIONAL: "GEORGE DOESN'T GET
IT", BECAUSE HE CAN'T SEE "IT". PERSPECTIVE, GENERATIONAL
PERSPECTIVE: SYNTHESIS.
3- THE PRESIDENT IS THE RIGHT MAN PERSONAALY, IF - IF HE
COMMUNICATES THAT HE IS WITH IT. TANGIBLY WITH IT. IT IS
NOT ENOUGH TO POINT THE FINGER AT A REACTIONARY
POLITICIZED CONGRESS- IT SURE HELPS THOUGH.
II- DYNAMIC LEADERSHIP.
THE NEED IS NOT ONLY TO CUT THE COST OF GOVERNMENT, BUT TO
MAKE IT WORK EFFECTIVELY, INCLUDING RESULTS-ORIENTED REPORT
CARDS. NEVER MIND JUST PASSING LEGISLATION, BUT WHAT ARE THE
REAL WORLD CONSEQUENCES OF LEGISLATION. LYNDON JOHNSON GOT A
TON OF LEGISLATION APSSED, "BUT WHAT WERE THE RESULTS?"
WE NEED NEW SYSTEMS, NEW MODALITIES. THE CONGRESSIONAL POST
OFFICE WAS A SYMPTOM. THE BELTWAY IS A FEUDAL CASTLE, A
BYZANTINE LABYRINTH. CHANGE IT! SIMPLIFY IT. "WOULD ANY GOUP
OF MINDS TODAY- SHORT OF LSD ADDICTS_ DESIGN OUR CURRENBT TAX
CODE. INDEED, "IS THERE A SINGLE ROOM THAT CAN HOLD IT?" IT
WAS SUPPOSED TO HAVE BEEN SIMPLIFIED IN 1986.
WHAT SHOULD BE DONE? WE ALL KNOW THE PROBLEMS.
A- LESTER THUROW OF MIT HAS A CLEAR, PRAGMATIC DEFENSIBLE &
SENSIBLE TAX SYSTEM. IT IS THOROUGHLY OUTLINED IN HIS NEW
BOOK. IT IS TOTALLY NON-POLITICAL; USE IT
B- ZERO BASED BUDGETING, CIRCA 1981: "WHAT HAPPENED TO IT?"
THE BEAUTY OF THIS MANAGEMENT TOOL IS THAT IT REQUIRES
REGULAR EXAMINATION AND JUSTIFICATION OF EXPENDITURES
AGAINST PRAGMATIC STANDARDS. THIS DISCIPLINE NEEDS TO BE
INCULCATED IN THE LEGISLATIVE BRANCH AS WELL AS THE
DEFENSE DEPARTMENT.
C- W.D.C. DOESN'T "GIVE" ANYTHING TO US'NS, IT MERELY
RECYCLES, AND MOST INEFFICIENTLY WHAT IT TAKES. THE
STANDARD TEST SHOULD BE A REAL WORLD RESULTS ORIENTED
TEST.
D- FOCUS ON REALLOCATING, NOT CUTTING. IN THIS MANNER WE
CREATE JOBS, RATHER THAN ELIMINATING THEM. OUR ONLY REAL
WEALTH LIES IN OUR ECONOMIC VIABILITY.
TAKE THIS LEADERSHIP CHALLENGE, IT'S THERE FOR THE
DEFINITION.
MOST RESPECTFULLY,
FRANK C. BURGER
1975 Commerce St., POB 424, Yorktown Hts N.Y 10598
Tel: 914-737-3621
Fax: 914-737-7835
page 1 of 2
PHONE (609) 822-0234
NON puggestion
FREDERICK FRISCH, JR., M.D., F.A.C.S.
7 SOUTH DUDLEY AVENUE
VENTNOR, NEW JERSEY 08406
11 OCTUBER 1992
Dear James Baker, III
I don't claim to be a speech-writer, but do claim to be a
SUGGESTION MAKER. My only claim to any fame is a few thoughts
4 and 8 years ago to Ronald Reagan for which I received a personal
answer.
Ronald Reagan became noted for "there you go again".
We need a cathy phrase. Think about "How do you know that"!
Accent one of the four words each time that changes the meaning
and the impact. Use of such properly and frequently can disturb
and annoy Clinton. His composure began to disintegrate tonight.
You remember the moment his face began to become somewhat ruddy
This counts greatly.
Others might be "are you thinking" and "be sincere".
President Bush must not be too polite more powerful at times.
You know more than anyone regarding phrasing and timing. Let's
do it!
Let's explain Deficit Spending give the main reason and
repeat it often. The Democrats built it up. Mention the cost per
day and per hour. This hits home better. Being specific at times
is adventageous. Clinton speaks in generalities say it!He speaks
of plans. What are they? In at least 3 instances he endorsed what
our President had already said.
Emphasize support for former "Russian countries". We
already do it. Stress importance of stability there to ensure
our domestic economic stability. This is the age of instantaneous
communication. Stress more our Foreign Policy and the importance
of our actions in the Persian Gulf and Central America.
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
03. Letter
From: Frederick Frisch, Jr., M.D. to James Baker
10/11/92
(b)(6)
Re: Suggestion Maker
[Redaction of personal information] (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Chief of Staff to the President, Office of the
Series:
Baker, James A. III
Subseries:
Public Correspondence Files
WHORM Cat.:
File Location:
[Public Correspondence, Oct 1992] [7]
Date Closed:
8/21/2001
OA/ID Number:
93011-002
FOIA/SYS Case #:
2000-0715-F
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA)
P-2 Relating to the appointment to Federal office I(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a-clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
page two
PHONE (609) 822-0234
FREDERICK FRISCH, JR.. M.D., F.A.C.S.
7 SOUTH DUDLEY AVENUE
VENTNOR, NEW JERSEY 08406
Iran would welcome Clinton with his uncertainty and vasillation.
Unemployment. REmind people that in the 30's it was reliably
reported that at least 3 million would not work anyway anytime.
Now there at least 7 million who would'nt or could'nt. This must
be treated delicately and with feeling. Emphasize our retraing
programs and detail how to obtain them now. Clinton speaks of
ago. Does "middle class" refer to all below $200,000.00?
I wonder who is "middle class". Health insurance is determined
by actuarial tables and not the companies alone. Eager lawyers
are much to blame. Too many have gotten the idea they can sue
for any incident and they do. TRUST is still a great thing.
Who can trust inexperienced Clinton to know when and if and how.
Arkansas? Stress that certainly one can find 17,000 jobs when
the economic situation is so miserable to begin with. Certainly
the only way to go is UP when you are near the BOTTOM!
Personal ives and past performance are a very impotant part of
choosing the most capable person.
I did not intend to be SO long. Herbert once told me in
a personal interview that one's important message can be stated
in 15 minutes after that it's just so much verbiage. I work at
the polls and am a republican Committeeman. Let's work and pray!
Sincerely,
copy
Fredenich Frisch, Jr., MD.
SOUTH JUNGEY. 13 PM OCT 080 MU
MLDCR 07
USA 29
1392
Honorable James Baker, III
The White House
Washington, D.C.
20,000
IMPORTANT DEBATES!