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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual
collections.
Collection: President, Office of the: Presidential
Briefing Papers: Records, 1981-1989
Folder Title: 01/20/1982 (Case File: 056759)
(2)
Box: 12
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library
inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at:
[email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
A
THE WHITE HOUSE
WASHINGTON
January 18, 1982
INTERVIEW WITH THE LOS ANGELES TIMES
DATE: Wednesday, January 20, 1982
PLACE: Oval Office
TIME: 10:30 p.m. (30 minutes)
FROM: Larry Speakes Peter Roussel
PR
In PURPOSE
This interview will be used in connection with a 5 part series
The Los Angeles Times is running on "How Ronald Reagan has
Changed America."
II. BACKGROUND
Questions would revolve around the impact the President believes
he has had SO far on this Nation, and the impact he hopes to
have before he leaves the presidency.
III PARTICIPANTS
The President
Jack Nelson Washington Bureau Chief
George Skelton, White House correspondent
IV. PRESS PLAN
Bernie Boston, photographer for The Los Angeles Times, will
take pictures the first few minutes of the interview.
V. SEQUENCE OF EVENTS
After brief introductions and photographs, the interview will
proceed.
Attachments: Parts I and II of the series
LOS ANGELES TIMES, 1/17
New Broom Sweeps
Uneasily for Reagan
By ROBERT SHOGAN and GAYLORD SHAW, Times Staff Writers
WASHINGTON-During the first triumphant spring of Ronald Reagan's
presidency. his longtime aide, Lyn Nofziger. was analyzing the reasons for
Reagan's success. Someone mentioned the impact on public opinion of the
attempt on Reagan's life: "How much did it help to get shot and recover?"
One Year Estimate
"Well," Nofziger replied. "It sure
beats the hell out of getting shot
and not recovering."
A year ago. Ronald Reagan as-
For a while last year. it seemed
sumed the presidency with the
that everything that happened.
promise of 8 "New Beginning for
even tragic violence. worked to
America. Now the White House
Reagan's advantage. The combina-
proclaims a "Reegan Revolution"
tion of his Irish luck. polished non-
is under way. But is it? What is
chalance and keen political instincts
Reagan's. impact on government.
made the new President seem in-
politics and people?
vincible.
Two months ago. two dozen
Times reporters in Washington,
'Its Course Was Set'
Sacramento, Los Angeles and
He cowed Congress and curbed
elsewhere set out to find the an-
the bureaucracy. He cut tens of bil-
swers.
lions of dollars from the budget and
Articles today present an over-
hundreds of billions more in taxes.
view of Reagan's first year and 88-
And as the first year of his steward-
sess his impact on government
ship drew to a close, the White
services and natural resources.
House proudly proclaimed: "The
Monday: His impact on Califor-
Reagan revolution (is) under way;
nia and on a Los Angeles suburb,
its course (is) set."
on welfare and the arts.-
Revolutions are easier said than
Tuesday: Politics. foreign policy
done. however. For all of his eye-
and national security.
catching achievements, Reagan has
not yet wrought-or even sought-
a sweeping and fundamental trans-
Reagan slowed the growth of
formation of the country or its
government-but did not stop it.
government. His Administration
The needs of the economically dis-
has not abdicated responsibility for
tressed and the conflicting demands
tending to the major needs of Amer-
of a multitude of interest groups still
ican society. Nor has it dismantled
impose their claims on the federal
the basic machinery established
budget and the nation's resources.
over the last five decades to meet
"Cut, cap and block." is the way
these obligations.
Sen: David F. Durenberger
President Held Responsible
R-Minn.) sums up the first session
It is still the President, for in-
of the 97th Congress. which Reagan
stance. that most Americans hold
manipulated so brilliantly. The
responsible for successful manage-
strategy was to reduce the increase
ment of the economy. And it is still
-to achieve a stalemate with the
to Washington that people look for
thousands of overextended good in-
such basics as protecting the en-
tentions of the last decade."
vironment and sustaining the poor
No Cat "in Absolute Terms'
and disadvantaged.
The Reagan economic program
Because of the profound changes
"slows down the growth of govern-
he did not seek. and perhaps could
ment in terms of both spending and
not have achieved. Reagan now
the amount of money government
confronts many of the same dilem-
takes from private individuals," said
mas-over spending and taxing, in-
John Albertine, president of the
flation and recession-that haunted
American Business Conference. a
his predecessors. And he is likely to
coalition of 100 high-growth com-
face increasing difficulty in fulfill-
panies. and a staunch proponent of
ing the expectations of broad gains
Reaganomics. "But the Reagan Ad-
with few pains kindled by his daz-
ministration so far has not persuad-
zling beginning.
Continued from First Page
ed Congress to reduce the size of government in abso-
Major Changes Under Way
lute terms"
Reagan concentrated mainly on shifting some re-
The Reagan cutbacks have also meant the sudden
sponsibilities-from the public sector to the private,
disappearance or erosion of services that Americans
from Washington to the states and cities-and on alter-
have long taken for granted. Major changes are under
ing priorities-from social programs to the Pentagon.
way in how the government deals with outbreaks of
Measured against these goals, Reagan's record could
disease, natural disasters and hazards in consumer pro-
hardly-1 faulted. He and his aides displayed a skill in
ducts. foods and drugs.
bandling Congress not seen here since President Lyn-
Many Americans welcome government cutbacks,
don B. Johnson's heyday.
convinced that they can take care of themselves with-
They went out of their way to flatter balky lawmak-
out Uncle Sam. "If I get sick, I can just go to my doctor
ers and to impress them-even to the extent of shifting
for a shot." an Atlanta woman said. Others were not so
the headquarters of the President's lobbying staff from
sure. "I suspect the money 'saved' will be dwarfed by
the remote precincts of the Old Executive Office Build-
excess health care dollars spent on diseases we didn't
ing to the White House itself. under the same roof with
prevent." said Dr. Bruce Dan. a former government
the President.
epidemiologist.
It was a little thing. but "In this town." said veteran
-The Administration launched processes that could
lobbyist Tom Korologos. "images mean a lot."
have a sharp impact on the federal stewardship of na-
With the help of such gestures. Reagan pulled in the
tural resources.
spending reins dramatically. "But measured against the
-Beyond the federal level. cities and states are be-
promise of a new age," Durenberger said. "we have only
ginning to feel the impact of a reduction in the flow of
made small steps toward a new beginning."
dollars from Washirigton. And most city councils and
state legislatures are reducing work forces and cutting
Going Gets Slower, Tougher
services instead of raising state or local taxes to offset
And the going is likely to be slower and tougher from
the loss of federal revenue.
now on Norman J. Ornstein, an American Enterprise
This means that Republican governors, mayors and
Institute specialist in congressional relations. sees more
congressional candidates could be on the spot this elec-
change ahead, in "a Reaganesque direction." But he
tion year as they try to defend themselves against
added, "We can expect fewer signs of a Reagan revolu-
Democratic attacks on Reagan's policies.
tion' and more of the guerrilla warfare that typifies
-Reagan vowed to be tough with America's enemies
American polities and policy-making."
and to repair alltances with friends. but he generally has
One reason for the sobering outlook is Reagan's own
moved more cautiously than his campaign rhetoric sig=
declining public standing. Personal approval of the
inaled
President. which peaked after the assassination attempt
He also promised to rebuild the nation's military
last March and which helped push his tax and budget
might and he pushed through huge increases in defense
cuts through Congress. has been skidding as projected
spending for a reborn B-1 bomber and a bigger Navy,
budget deficits and actual unemployment rates have
though his plans for deploying the MX missile system
soared.
were clouded by confusion and resistance from Con-
In December. Reagan's rating in the Gallup Poll fell to
gress.
49%. the lowest score for any elected President at the
By any standard and in nearly every sector. Reagan
end of his first year since Gallup started polling in the
has moved the country further in the direction he want-
1930s.
ed to go than any President since Johnson And if times
Whatever happens in the next three years. Reagan's
were good, the public would probably not look too
performance in 1981 will long be remembered for its im-
closely at any philosophical compromises Reagan may
pact on many fronts:
feel compelled to make in the future.
-Changes in the tax laws created a whole new cate-
But times are not good. Casting a shadow that threa-
gory of citizens: the winners. Besides the first taste of a
tens to blanket the future is the performance of the
three-year. 25% cut in personal income taxes, millions
of Americans found that they could benefit from tax-ex-
economy-which helped elect Reagan but which so far
empt savings certificates and tax-deferred individual
has failed to behave according to his game plan.
retirement accounts.
The President argues. not implausibly. that his eco-
And businesses got billions of dollars worth of new
nomic policies deserve more time for a fair test. And
breaks on depreciation and tax credits.
Administration officials, noting the substantial drop in
-Budget cutting also created losers: Welfare benefits
the inflation rate from year-ago levels. say Reagan's
were eliminated for hundreds of thousands of people.
record is already encouraging.
especially among the working poor. New restrictions
The economy will rebound from the-current recession
were imposed on Medicare and Medicaid (Medi-Cal in
during the coming spring, Administration economists
California). Moves were made to curb food stamps and
predict. If they are right. then the President may well
free school lunches.
get some of the time he is asking for.
And many middle-class families found that the low-
Even an upswing in the business cycle may not erase
interest government loans they had counted on to send
the fundamental difficulty. however: The public still ex-
their children to college could no longer be taken for
pects a lot from government. and the cost of meeting
granted.
that expectation has become steadily harder to reconcile
-Reagan's promise to "get the government off the
with calls for less spending, smaller deficits and less
backs of the American people" translated into a sub-
government.
stantial slowing of the growth in federal regulations.
One of the elements that was not changed is the
The number of pages in the Federal Register. for in-
government's responsibility for helping those when
stance, fell by one-third.
Reagan has described as "the truly needy."
"We will continue to fulfill the obligations that sprin
from our national conscience." Reagan declared in pre
senting his economic recovery program to Congress las
February. "Those who. through no fault of their own
must depend on the rest of us-the poverty-stricker
the disabled. the elderly. all those with true need-ca
rest assured that the social safety net of programs the
depend on are exempt from any cuts."
But critics have contended that Reagan's version O
the safety net has some holes in it. Yet last year's budg
et cuts "barely laid a glove on the core programs of th
Great Society, let alone of the New Deal." said Rudolp
G. Penner. chief economist of the Office of Managemen
and Budget in the Gerald R Ford Administration.
The vast entitlement programs-Social Security
Medicare and Medicaid, welfare and veterans' benefits
which account for nearly half of all federal expenditure
-remain basically in place.
"They (the Reagan Administration) began tempering
the existing form of government. the existing system of
entitlements and the like." said Richard Holwill, vice
president of the Heritage Foundation. a conser vative
think tank that has helped to shape some Reagan poli-
cies.
Reagan's performance thus far. like the record of oth-
er Presidents. is at least as much a reflection of political
and economic circumstances as his own strengths and
inclinations.
The economic devastation of the Great Depression
created the opportunity for Franklin D. Roosevelt's
New Deal just as Johnson's landslide victory over Bar-
ry M. Goldwater. combining with the moral momentum
of the civil rights movement and a period of economic
prosperity. made possible the Great Society:
Deadlocks with Congress
But Johnson's tenure ended with a sour note amid the
national turmoit over Vietnam And subsequent pres-
idencies were marked by deadlocks between the chief
executive and lawmakers epitomized by the frustration
and apparent ineffectiveness of Jimmy Carter.
Reagan's advisers concluded early on that Carter
wasted his energies and dissipated the initial good will
granted every new President by his failure to establish
clear priorities for his programs. The Reagan team was
determined to avoid that pitfall Aided by an electoral
college landslide. public eagerness for forceful leader-
ship and a demoralized Democratic opposition. Reagar
set his policy sights on the economy from the first anc
never strayed.
The result was a series of smashing victories. each O:
which contributed to the next. But to gain these suc
cesses and sustain his legislative momentum. Reagar
paid a price.
He made some compromises, notably on the tax bill
that resulted in bigger and brcader deficits than antici
pated in the Administration's economic models.
And. preoccupied with the budget and tax-cut fight
on Capitol Hill. the Administration botched one crucia
long-term issue: Social Security financing. Reagan'
proposal for cuts in some future benefits. issued withou
warning or consultation. drew a chorus of indignan
protest from Democrats and cold stares from many Re
publicans.
The upshot was that Reagan had to scrap his proposa
and turn the thorny questions surrounding the futur
fiscal soundness of the Social Security system over to
supposedly nonpartism task force. But the issue is like
ly to return to plaguethe President this year.
And so will divisive public controversies in the en
vironmental and social arenas. where the Administra
tion managed to avnd full-scale public confrontation
in 1981.
Differences Pasred Over
By cutting back n existing regulations. for instance.
the Administrationhas demonstrated its willingness to
Critics argue at Reaganomics have inconsistency
sacrifice some envronmental standards for the sake of
built into it Waer Heller. chief economic adviser to
economic efficiency. But major battles loom this year
Presidents JohnF® Kennedy and Johnson, inveighs
over proposed ameidments in the Clean Air Act.
against what healls the conflicting forces of supply-
side economics.monetarist economics, expectationist
About-Face on "x Issue
economics, budge-balancing economics and a little bit
Also. some of Feagan's conservative supporters are
of Keynesian ecaomics.
growing increasingly impatient about such items on
They papere over those differences at the begin-
their own agenda as abortion and school busing. The
ning. but they are bound to come out."
Administration my have placated some of these con-
The proof ofhe inadequacy of Reaganomics in the
servatives by its ecent reversal of the longtime policy
view of its crits is the current recession, which has
denying tax-exenpt status to private schools that prac-
pushed the uneployment rate to 8.9% and left mil-
tice racial discrimnation.
lion people outif work. The White House blames the
But the bitter pblic protests against the switch from
slump on the pácies of past administrations. But wher-
civil rights supporters served as a reminder to the
ever the blame.es. Reagan may be forced to adjust to it
White House of just how sensitive such social issues are
by modifying is economic plan by calling for new
and forced the Pesident to make a partial about-face.
taxes, as some Thite House advisers urge.
He called for derial of the tax-exempt status through
Some analystbelieve that the President is caught in
legislation ratherthan by administrative action. as in
a trap shaped 1 his own glowing rhetoric about. the
the past.
economic futureDuring his campaign, Reagan castigat-
Foreign policy and national defense have also demon-
ed Carter for wring Americans of sacrifices to come.
strated the difficuties offimplementing changes. The
And through thafirst months of his presidency, Reagan
President's frustrition over the oppression in Poland.
made aimost nosention of hardship.
the disagreementswith the United States' North Atlan-
Not until Serember did the President speak of "a
tic Treaty Organization alies and Israel and the wran-
period of difficul and painful readjustment." He added.
gling among top acviser: within the Administration. are
"I know that wee asking for sacrifices from virtually
reminiscent of the probems for which Reagan sharpiy
all of you, but the is no alternative."
criticized Carter during he campaign.
"This recessio was coming." Holwill said. "Every.
Reagan did succeed i pushing through a hefty budg-
body knew it we coming. But they (the Reagan Ad-
et boost for the Pentagn. as he promised. and has taken
ministration) ledhe public to believe it would not ap-
a hard rhetorical line gainst the Soviet Union But the
pear. By trying) say there's no pain, they've created
President has yet to eablish the order of battle for the
the mechanism + a backlash from the public."
strategic weaponry h has said the United States needs
Some observes believe that the time may be right for
to close the "windowf vulnerability" with the Soviets.
the President deliver a "blood, sweat and tears"
In the long run. hwever. the judgment of history-
speech, in whiche could rally the citizenry to bear the
and of the electora:-on the Reagan Administration
pains required techieve economic recovery.
will depend on the ocome of the economic policies that
Others contei that more than rhetoric is needed.
he has made the conerstone of his presidency. Right
They say the sicalled Reagan revolution has overly
now. the prospects em chancy.
accentuated negive aspects of the past and has over-
So far. so good, what Reagan's conservative admi-
looked the needx a positive credo for the future
rers say. "We are eased with the trend." said the Her-
"Through theampaign and over the last year. the
itage Foundation' Holwill. "We are pleased with the
vision we have ten given might be called 'federal fol-
assault on spends. the assault on taxes. And we're
lies." Sen. Dureberger complained. "The agenda has
pleased with monary policy."
been shaped in eaction to the accumulated errors of a
political epoch. hat won't do any more. What we need
is a positive they of government. a precise blueprint
for federal policand purpose."
In his Inaugral Address. Reagan declared. "In this
present crisis, overnment is not the solution to our
problem: government is the problem." Now after a year
of running thagovernment. he faces the challenge of
persuading theitizenry that he himself has not become
just another pa of the problem.
LOS ANGELES TIMES, 1/18
Impact on Gardena
Reagan Era:
Lost Hopes,
New Fears
By RON HARRIS
Lea
and MARITA HERNANDEZ.
Times Staff Writers
Behind the look-alike-apartment
The small. one-story apartments
facades. families quietly wrestle
are clustered on Vermont Avenue.
with a new set of realities and fears
at the edge of Gardena. just north of
-rising prices, layoffs. loss of food
the flashing lights of the city's card
stamps. welfare and medi-Cal. ris-
clubs and within earshot of the con-
ing college tuition and possible cuts
stant drone of the Harbor Freeway.
in Social Security
In the apartment courtyards. un-
From the postman at 18313 S.
der the shade of huge olive trees
Vermont to the retiree at 13339
filled with noisy starlings. the res-
nearly everyone's reeingTh pres-
idents-young and old, black. Mexi-
can and white-stop occasionally
Second in a series on the impact
and chat.
of President Reagan's first year.
On Saturday mornings. elderly
Other stories on Pages 3 and 12.
tenants work in their tiny vegetable
Tuesday: Politics. foreign policy
gardens. cultivating strawberries.
and national security.
broccoli. lettuce and tomatoes.
while young mothers gather the
sure as the waves of the new federal
wash-from the backyard clothes-
under wash up against their lives.
lines and the men tinker with the
For some; the changes have
engines of troublesome clunkers.
seeped in slowly, requiring small.
Lawns Trimmed Weekly
though uncomfortable, adjustments
The lawns and hedges are neatly
-canceled vacations. fewer nights
manicured. thanks to the grounds
out, more chicken and less beef.
crew that arrives every Tuesday
For others. the changes have
without fail. adding to a sense of or-
come crashing in. dashing hopes
der and stability. Only the build-
and creating despair as the loss of
ings' badly peeling pink and mint
jobs and government benefits forces
green paint. a few torn screens and
families to choose among health
the sagging white picket fences be-
care. clothes and food because there
tray the neighborhood's fading vi.
is not enough money to pay for all
tality.
three.
The solidly working-class neigh-
The mood in some households has
borhood sandwiched between 132nd
turned to anxiety; in others. there is
and 134th streets on Vermont re-
fear. But in all there is a sense of
flects much of Gardena, a middle-
uneasiness as they watch the city's
income community of 45,000 south
delicate fabric grow taut.
of Los Angeles, just as Gardena
Knock on most any: door, and
might reflect Rockford, III or Laur-
there is a story.
inburg. N.C. or suburban Kansas
At 13329½ S. Vermont, Inez Pitt
City.
had just finished putting away the
But. in this placid pool. the "Rea-
dishes from the evening meal. Her
gan revolution." accompanied by a
daughter, Kimberly. 11. lay sprawl-
worsening recession. has landed
ed on the living room floor. doing
like a rock. sending ripples of un-
school work.
certainty through the pond.
Please see GARDENA. Page 3
Continued from First Page
"I cannot survive on what they give me now." Pitt
half-shouted from the kitchen. "and now they're talk-
inglewood
ing about cutting me back more. but food prices keep
going up."
Pitt came to California two years ago in search of a
Hswthorne
GARDENA
job. She did not find one and ended up on welfare. Frus-
Segundo
trated. she is ready to return to the harsh winters of
Chicago if it means a job.
"Tm not a freeloader." she insisted. sitting behind a
SAN DIEGE
Compton
tattered Bible that marks her favorite spot at the kitch-
ARTESIA FWY.
en table. "I want to work. I feel I'm known there and I
FWY
can find my-way, but I can't even save the money to
Torrance
PACIFIC
Pitt's fear of cuts in her assistance won't materialize,
HARBOR FWY.
BEACH
go."
OCEAN
Carson
at least not this year. Under budget guidelines. it is per-
sons like Earline Austin-"the working poor" who are
LONG
targeted for the cuts.
Lomits
Long
Beach
Austin. 28, a slender woman with weary brown eyes.
had been receiving about $200 a month. as a welfare
supplement to the $700 she takes home as a clerical
worker at Daniel Freeman Hospital in Inglewood. to
San
take care of her-10-year-old daughter.
Pedro
Now she faces the new year without it.
"It was already hard. This will just put me into more
of a financial bind." said Austin, just home from the last
shift of her 50-hour week. "There's nowhere left to cut
Los Angeles Times
corners. I can't even buy groceries the way I need to
anymore."
tunate. In July, Stinnett will receive her master's de-
In addition. she lost Medi-Cal and. thus. she will forgo
gree and expects to begin teaching for the Los Angeles
a brain scan her doctor says she needs to determine the
school system. saying goodby to government assistance.
cause of persistent head pains. "I can't afford it." she
"I will be really glad is be off it but. had the cuts come
just spent $700 on a car that keeps breaking down. her
any sooner. I would feel trapped." she said. 1 would
daughter's child-care fee looms and there are a dozen
have been stuck in some land of low-paying job. ended
other expenses that Austin does not know how she will
up being frustrated and bored and maybe gone crazy."
meet.
From her tight budget. Stinnett will lose $50. a mea-
There is desperation in her voice: "I can't afford to put
ger sum compared to Austin. But Mary Morris. director
anything aside for an emergency. I don't even know
of the Los Angeles County Public Social Services office
what savings is, what a checking account is
that serves Gardena. maintains that. for a mother strug-
And sometimes there is anger. "I feel this way: I take
gling in today's economy. even that IS significant.
my butt to work every day. I pull overtime and I look
"If your boss said I'm going to pay you $50 less. you
and see these women have babies after babies and not
would have problems because that was $50 you counted
trying to do a damn thing for themselves. I think it's so
on." Morris explained. "Maybe for some people that was
unfair. really unfair. because it's my taxes anyway. It's
their gardening fee DUL when you get down to people at
part of my money that I'm getting back from them."
the level that we serve. that's milk. that's bread. that's
Kathy Stinnett. a young working mother of two. also
butter.
lost her weifare benefits. but she is one of the more for-
Morris' office sliced 800 working mothers completely
off supplemental welfare under the federal Omnibus-
"I got into-this place because I didn't have to pay a
"Some people call it ominous"-Act. Morris said. More
first and last month's rent." she recalled. plucking an-
are expected to lose their benefits in April and even
other cigarette from her pack. "Everywhere I went.
more in August.
they wanted $1,000. Technically, for the amount of
What hurts these working mothers most is the loss or
money I'm getting, my rent should be $110. but you
lack of subsidized child care. a necessity for any work-
don't have a choice.
ing parent. Current costs at a private nursery school
"I can't get anybody in here to share the rent. because
average $200 a month per child. A mother of two with
whatever they paid me, the government would deduct
take-home pay of $800 a month can hardly afford to pay
from my general relief. They've got me living on what
$400 for child care. Morris said.
these politicians get for one month for postage stamps."
As working mothers are eliminated from federal
Leslie tried to get into federally subsidized housing.
assistance. many have turned to Gardena's state-subsi-
but the waiting list was so long that the Los Angeles
dized child-care program for help. But director Pam
County Housing Authority wouldn't even take her
Brady said the program's 54 siots have long been filled.
name.
and new applicants are merely added to the ever-grow-
For the elderly in the community, like Mary Winters.
ing waiting list
Janet Cleveland. 23. has been on the list for nearly a
year:
Waiting time for reasonably priced
Since the birth of her 10-month-oid son. Cleveland.
an insurance claims processor. has had a hard time
housing can be as long as 3 years.
making ends meet on the $700 a month she brings home.
She pays $160 a month for child care and $215 as her
share of the rent for the three-bedroom house she
shares with two other women. An additional $60 goes
82. affordable housing on a limited income is the No. 1
concern.
for gas and $84 for lunch at work. That totals $519.
which leaves only $181 to pay for food. clothing. laun-
Winters. a retired factory worker who received about
dry. doctor and hospital bills for her and her child.
$450 a month in Social Security and old-age assistance.
was forced to share her $375-a-month. two-bedroom
So. Cleveland looked for assistance.
apartment to make ends meet
never needed the government programs until now.
"I couldn't handle it alone." she said. "And I'm not
But by the time I heard about them. they were already
moving in with my kids. They have a hard enough time
cutting them out" she said.
as it is."
Welfare May Be Better Than Work
The housing situation here is very tight." said Hay-
Financially strapped. like other single mothers strug-
wood Fong. director of Gardena's community develop=
gling to survive in today's economy. Cleveland said she
ment department. "If you were to take the condomini-
has thought that it might be better for her and her child
ums and the three-bedroom houses. which most people
if she went totally on welfare.
can't afford. off the list of available rental space. you
was thinking it would be almost cheaper. almost
would be virtually down to zero."
easier." she said. "When I was on disability after my son
The original 1981 federal allocation of subsidized
was born I was getting less money. but I was better off."
housing for low-income residents and the elderly in
At 13431 S. Vermont. Joy Leslie. 62 eased over to the
Gardena community was cut last June by 90 units to
television set and turned down the volume.
336, said Karen Barrett of the U.S. Department of Hous-
"It was lousy before and it's still lousy." said Leslie. as
ing and Urban Development. Compounding the prob-
she picpped back into her overstuffed chair. "I don't
lem. Gardena must share funds to subsidize those units
have enough to cover my expenses. so I'm in hock up to
with 12 surrounding cities.
my you-know-what."
Thus, Gardena residents such as 85-year-old Rose
Leslie receives $228 a month in general county relief.
Hunt. who must move before May, when her trailer
up $2 from last year. "We got a big raise." she said dry-
park shuts down. are justifiably frightened at the pros-
pect of not finding another home they can afford.
ly.
Although she said she is disabled. Leslie has been un-
Waiting List Is 3 Years Long
able to obtain Supplemental Security Income "And I'm
She and her daughter have looked at numerous
too young for Social Security." she said.
apartments and trailer parks in Cardena and in nearby
So. with her meager stipend and S60 in food stamps.
Carson. "But. honey, you can't find anything." Hunt
she must pay $210 rent plus utilities and other living ex-
said. "I went to one place and they said the waiting list
penses.
was three years long."
$2 a Day for Food 'Is Rough'
Hunt's neighbors considered taking their plight to the
I've already cut to the bone. but I've had to cut back
Legal Aid Foundation for assistance. but because of cuts
even further." she said. "I'm a hefty woman and squee-
in the budget of the federal Legal Services Corp the of
zing by on $2 a day for food is rough. My doctor says I
fice in Venice that formerly served Gardena closed its
should eat high protein. You go out and buy high-
doors in October.
protein food. you're talking about steaks and things like
When more than 30 elderly persons and other low
that I go out and buy a lot of starch because it will go
income tenants at the Palms Trailer Park on South
further. I know Tm defeating my own purpose. but I'm
Broadway got word that their trailer park was closing.
not going to starve."
they did go to Legal Aid for help. But. because of in-
Leslie moved into the neighborhood 18 months ago.
creased caseload and reduced staff. Legal Aid turned
when the home she was renting was soid out from under
them down.
her.
Faced with 25% in budget cuts. Legal Aid. which
provides free legal assistance to those who cannot af-
ford it. shut down four of its seven offices in Los An-
geles County and cut 40% of its staff.
Legal Aid's caseload has increased, calls have dou-
bled. and many whites who formerly were reluctant to
use the service are now trickling into the office. But Le-
gal Aid spokesmen said that, county-wide. they will
turn away at least 8,000 more people than they did last
year. taking only emergency cases.
So. residents at the Palms Trailer Park went to court
without an attorney.
"We desperately needed some representation," ten-
ant Robert Glenn said. "If we had had some honest-to-
goodness legal help. at least we would have known our
rights instead of just sitting here. left to our own devices
to stumble in the dark."
Another ripple from the "Reagan revolution" threa-
tens to capsize Gardena's federally funded day-care
program for the elderly, in which about 35 frail and
handicapped old people who might otherwise be in rest
homes are cared for during the day.
This year's budget was slashed by 60% to $13,000. All
federally funding ends in July. City officials and com-
JOE KENNEDY / Los Angeles Times
munity organizations are trying to persuade local busi-
Lizzie Grandberry and her husband look to move up
nesses to keep the center alive through donations. but
in life but feel taxes and inflation push them down.
lew are responding.
The elderly pay $1 a day for meals. Equivalent care
unique. The human services department lessen
would cost them $20 a day. program director Marilyn
the impact."
Rafkin said. "and I know they can't afford iL"
But Frank Benest. director of the human services de-
Elsa Post. 85. cannot. Elsa, who met and married Fred
partment, said his organization is having difficulty hold-
Post at the center. said she dreads the thought of being
ing the line because more and more residents are turn-
forced into a nursing home.
ing to his office as other assistance dries up.
'We're a big-happy family here." she said. Before
"We're not talking about cuts to one area," he said.
coming to the program. Post visited a few nursing
"It's all over. When you're talking about federal cuts in
homes. "I didn't like them. When you're down. those
food stamps. aid to mothers. child care. training jobs.
places are just going to get you down further. To me it's
and combine that with reduced state aid and inflation.
just a place to die."
you're talking about all these forces coming together at
For Leona Snider and her mother. Laura Harris. 86.
one time to reduce community services and support. It
the program has been a godsend.
has a great impact."
Snider. who was forced to quit her job at Hughes Air-
The-agency is still funded at $500.000 a year by the
craft to stay home with her ailing mother. cutting the
city government, which. though it has felt little from
family's income by half. said her mother is more alert
the federal cuts. is concerned that future cuts may be
and active. And it has also helped her
deeper.
"We're being more cautious this year than last."
Blood Pressure Has Gone Down
Keith Bennett. city finance director. said. "Right now
Since she has been in the program. "the doctor says
we're dragging our heels a little bit on filling vacancies
my blood pressure has gone down from 194 to 168." she
within the city."
said. And my mother enjoys it so much. It would be a
The city's card clubs. six establishments that supply
shame if they ended the program."
one-fifth of Gardena's $20-million operating budget. in-
At the center. Robert Williams. 18. a Comprehensive
Employment and Training Act worker hired with city
sulate the city to some extent against slumping federal
funds that survived federal cuts. chatted with a group of
and state support
elderly persons as he passed out exercise materials.
Although the economy is down and people have less
"I'm lucky. if it hadn't for CETA. I probably wouldn't
disposable income. business is up at the clubs-an indi-
have a job right now. A lot of people don't want to give a
cator of bad times. managers say.
young person a chance." said Williams. the last person
"I don't know why, but people gambie more when
hired under the local CETA program. which was cut by
times are hard." John Anthony. manager of the Eldora-
75% On CETA I'm learning a lot about my own seif-
do Club. said. "We're seeing more people and new faces.
discipline. and all the things that it takes to hold a job-
Perhaps they do it to make more with what little they
getting to work on time and working with people."
have. to stretch it Maybe they just want to get away
from their lives.
Aside from cuts in youth employment. federal cuts in
the city's CETA program eliminated 20 public-service
The Eugene Garmans live at 13405 S. Vermont. Gar-
jobs and 60% of its on-the-job-training positions. Said
man. 51. a machinist at a Los Angeles computer disc
CETA. director Frank Bartilet: "We're trying to run a
manufacturing firm. had just recently returned to work
race and they've cut our legs off at the hip."
after being laid off for five months.
Unlike most surrounding communities hit by the
Because he was unable to find work in the interim. he-
"Reagan revolution." Gardena has a city human ser-
and his wife depieted their savings and lost their apart-
vices department. which provides an added safety net to
ment. Garman's wife stayed with friends while Garman.
deai with problems in the community
an Air Force veteran. siept wherever he could.
"The extent to which a community will feel the effect
"It was rough. awful rough." said Garman through his
of these budget cuts is in direct relation to the kinds of
wairus-like mustache. "We're just starting to get on our
feet a little bil. but we're still in the hole."
support services that exist in the area." Morris of the
County's Puniic Social Services office said. "Gardena IS
Reached His Breaking Point
Only 30% of workers at Garman's plant returned to
"He started taking It out on me." she said. "It's gotten
work. But there was no callback at other plants.
to the stage where he might really end up hurting me."
few doors down, Felipe Magana and his family sat
She called the city's human services department for
in the middle of the living room floor. surrounded by
help. but the staff could offer little. The seven shelters
to which they referred battered women were filled.
packed boxes. They would depart for Mexico the next
morning. Magana. with two years at Honeywell Inc. was
"Shelter for battered women is tight even in good
times." Gene Painter of human services said. "It's ai-
among the nearly 500 workers laid off by the company.
most impossible now."
one of Gardena's two largest employers.
Adding to her family's problems. she said. her child
Unable to find work for nearly eight months and
has dropped from the subsidized school lunch program
powerless to cut through red-tape for unemployment
under new federal guidelines that have lowered the in-
benefits, Magana had reached his breaking point.
come ceiling for eligibility. eliminating free lunches for
"In the 10 years that I've been here, I've never col-
some children and requiring others to pay.
lected anything (in government assistance), and now
Even worse. the cost. of the regular lunch has jumped
they won't give it to me." Magana said bitterly. "Jobs
to 75 cents. which means a heavy expense for many
are getting scarcer. and everything is more and more
childen who last year paid 20 cents for a subsidized
expensive
"It just isn't worth it anymore. At least in Mexico you
have your family to help you OUL Before. if you didn't
'Even when you're working they
have money you could go to the (county) clinics, and
they would let you pay in installments. Now they won't
may close the plant permanently.
even treat you unless you have the money in hand."
Budget-tightening measures at the county health fa-
cility in Lawndale. which serves Gardena residents.
lunch. For a mother of three. that means sqeezing OLIL
have included a $20-a-visit fee for prenatal and well-
an additional $33 or so each month from an already ught
baby care. Most recently. the facility lost its five social
budget.
workers. who assisted in child abuse cases and general
As the prices have risen. many children are bringing
counseling.
their lunch to school while others do without. said Joan
And as new federal budget cuts loom on the horizon:
Jefferson: principal of 186th St. Elementary School.
Dr. Philip Kani. a county health officer. is worried about
Lunch participation at her school. and county too.
adequate funding for the center's tuberculosis preven-
is down 30% she said.
tion program. particularly in light of recent increases in
One street west of the Vermont apartments. tract
the incidence of TB throughout Los Angeles County.
homes with two-car garages. reflect the city's solidly
At the Gardena Free Clinic. which complements the
middle-income nature. Here-there are homeowners
Lawndale facility's family-planning program. the num-
who keep Gardena's median income at $16,000 year
ber of patients has doubled in the last SIX months. over-
about $3,000 higher than the rest of Los Angeles Coun-
taxing its limited facilities. To cope with the increase
ty
caseload, which workers at the clinic say may be due to:
Ron Bullocks. 20, a. machinist, lives there with his
the increasing cost of private medical care. the facility:
mother. brother. wife and child. He breathes easier after
has been forced to ask for a minimum donation of $5 a
surviving a layoff at his factory that idled 40 workers
visit and the cost of medicine.
He had thought about leaving to work for Hughes Air
As the economy has slumped under "Reaganomics:"
craft. but he is uneasy about making the move.
layoffs have hit hard in the Gardena area.
"I had a lot of friends who were getting jobs at Gener-
AL Honeywell. where home heating and air-condi-
al Motors, he said. They kept telling me to come on
tioning parts are manufactured. layoffs reflected a
over. they're paying $10 an hour. They were hiring like
siowdown in the housing industry. Slumping auto sales
crazy. Then. SIX weeks later. they laid everybody off.
forced Garrett Automotive Parts Co. to lay off 400
Three houses away on 133rd Street, Jim Eaiy. a Gen-c
workers. Other area. industries-American Standard
eral Motors employee for 21 years, remembers the lay.
Inc., Hi-Shear Corp., Martin Marietta Corp.. Reynolds
off of 1.600 workers at the plant in nearby South Gate.
Aluminum Co.-have joined the ranks of firms releasing
Ealy briefly joined their ranks, as the plant closed for
workers.
a week. He returns to work today. but the piant will
Florence Foreman of the state Employment Develop
close again for two weeks in early February.
ment Office reported that unemployment in the area is
"Even when you're working, you don't know how.
rising. and some companies. such as Water & Wood
long you'll be working, said Ealy. who moved with his
Corp. in Gardena. have reduced working hours for 181
wife, Nancy, to their comfortable two-bedroom home in.
employees to avoid layoffs.
Gardena SIX years ago. "We have to be very careful with
Staff Cut at Jobs Agency
our money. We really- don't buy a lot of things. They
may just close the plant up permanently. Then what do
As layoffs increase. the ability of Foreman's staff to
you do?"
find work for the jobless has diminished. Federal cuts to
Although revenues at the card clubs are up. Garde-
her department have reduced her staff. and new cuts-
na's businesses generally have felt the pinch.
are threatened this month.
Under the new CULS. the 15 positions in employment
"Everybody is just kind of holding tight." Anita E
development will be reduced by 50%. and the remam:
Bell. manager of the Gardena Valley Chamber of Com-
ing three positions in a job development program for
merce, said.
welfare recipients also will be reduced. Earlier cuts
"Holding tight" is becoming much more difficult for
forced Foreman to discontinue use of all part-time
real estate/broker Joe Finzell When SIX agents le!! has
ployees.
Please see GARDENA. Page 14
For some. like one 31-year-old Gardena mother. lay-
offs and financial strain have turned to violence. When
and
the woman's husband was unable to find work after lay4
offs at an electronics firm. he became depressed-and
Continued from 13th Page
For the most part. Gardena residents are digging in.
Gardena office because of the slumping market. he
skittish about setting a new course in the middle of the
closed the business and moved the remaining staff to
changing tide. There are few among them who say that
Redondo Beach.
they are better off now than a year ago.
To keep what's left afloat. he has borrowed money to
At 13313 S. Vermont. the furniture tells of better
subsidize salaries.
times. Walls lined with contemporary graphics comple-
A few blocks east of the Vermont apartments. Mary
ment the rich oak tables and tweed sofas. Lizzie Grand-
Link rocked quietly in a chair in her small. one-bed-
berry. 37. and her husband. Ronald. 38. a postal worker.
room apartment. In 1979. Link made a bundle selling
squeezed into the smaller apartment recently when
real estate and rewarded herself with a Mercedez-Benz.
they could no longer afford to pay a $450 a month for a
"I was rolling," she recalled with a laugh. "I was liv-
modest two-bedroom house. their first effort to move
ing good."
into a nicer neighborhood
Housing Market at Standstill
She has been looking for a job. but with no success.
Hoping to make even more money, she took off from
"Instead of getting ahead. we're steadily going down
real estate to get her broker's license. But, when she re-
and going down." she lamented. "My husband gets a pay
turned. the housing market was at a standstill and she
raise and we don't seeit-taxes and inflation eat it up."
could not make a living.
Sometimes she talks to relatives in Missouri But
Now, the Mercedes is all that is left of her high times.
there is no good news from home.
After waiting tables. working in bars. parking cars.
"They'v been laid off from Chevrolet and the steel
painting walls and shampooing rugs to get by, Link
plants." she said. "They're calling me about moving
landed a job at a Culver City mortgage firm.
here. but I say. hey. don't you dare. I can't even find a
"But I may not be there much longer." she said. "My
job and things for us are at a standstill. I don't know
boss told me two months ago that I was subject to being
what we're going to do. I guess for now we're stuck
laid off because the housing industry is so bad and that I
here."
should look for another job."
Just down the street from the Vermont apartments.
past the Eldorado Card Club, middle-income families
emoyed an infrequent night out at the Gardena Bowl.
"You'd think a guy making $34,000 a year wouldn't be
doing too badly," said Tom Tsuhako. 45, a mechanic for
Western Airlines. "At least that's what I thought. But I
feel it. it's hurting-food. entertainment. I used to buy
clothes that you take to the cleaners. Now it's all wash-
and-wear."
At nearby California State University at Dominguez
Hills. Janet Waters of the school's financial aid office
said federal cuts in student aid coupled with increasing.
tuition will probably result in low-and middle-income
students' taking longer to work their way through
school. Others may drop out
los Angeles Times
cutbacks in state spending have made Gov.
bie to defeat. and another GOP governor, Lee
imes A.-Thompson, left;leng-considered a pos-
Dreyfus of Wisconsin, says the states have cut to
bie Republican presidential contender, vulnera-
the point of pain-but without having any ether.
Reagan's Long Coattails May Lead
Fellow Republicans on Bumpy Ride
By RUDY ABRAMSON and LARRY GREEN, Times Staff Writers
WASHINGTON-Six days before he was elected
might lead to Republican control of the House with the
President of the United States, Ronald Reagan wound
1982 elections, now watch anxiously for economic re-
up his debate against Jimmy Carter with some solemn
covery.
advice for voters still struggling to choose between the
Some Democrats who appeared vulnerable a year ago
two.
now seem headed for reelection to Congress. Incumbent
"I think when you make that decision," he said, "it
Republican governers running for reelection this year
might be well if you ask yourself. are you better off than
tread a slippery course of maintaing loyalty to their
you were four years ago? Is it easier for you to go and
President while trying to remain distance from his eco-
buy things in the stores than it was four years ago? Is
nomic problems.
there more, or less, unemployment in the country than
A national survey by the Los Angeles Times Poil two
there was four years ago?"
weeks ago showed the major party realignment Repub-
The questions, as candidate Reagan knew, already
lican leaders had hoped for has not yet materialized.
were on the minds of millions of Americans, and they
In fact, among the 1,509 persons interviewed by The
contributed heavily to an electoral landslide that some
Times Poll. 59% of those who expressed a preference
analysts perceived as the beginning of a fundamental
for one of the two parties supported the Democrats and
realignment of American politics.
41% the Republicans-the exact split the Democrats at-
A year after he took office, the Reagan refrain is in
tained in the popular vote during their last big congres-
the air again, but now the tone is derisive, and the
sional election triumph in 1974, a year of Watergate
voices being raised are those of Democrats already pro-
scandal and recession.
nouncing Reagan economics a colossal failure that, in
But Republicans who see Reagan's election as a his-
retrospect, will make the 1980 election a fluke instead of
toric event in American politics are not ready to aban-
a permanent shift of the political landscape.
don the dream of expanding their gains this year. The
Democratic National Committee Chairman Charles T.
President's program has not had time to work, they say.
Manatt even suggests that Democrats could rebound the
Moreover, there still is time for the economy to begin
way they did in 1958. in Dwight D. Eisenhower's second
moving out of the doldrums before the election.
term. when economic recession helped them gain 13
Republican pollster Robert Teeter said it will be an-
Senate seats, 47 House seats and 5 governorships.
other two to four months before it will be possible to
"The terms of the debate have already been set,"
discern the political impact of the Reagan Administra-
Manatt said. "The political issue of mismanagement of
tion's economic course. Despite unhappiness over infla-
the economy is getting bigger and bigger and bigger."
tion. unemployment and high interest rates, he said,
Popularity Off 20 Points
"There is great underlying support for the President's
major goal, for the general direction of the economic
For all his success in pushing his tax and budget cuts
program."
through Congress, polls show that Reagan already has
problems with the electorate-reflected in a 20-point
Economy Poses Key Issue
slide in his Gallup approval rating over the last few
"Reaganomics," he said, is widely perceived as a sim-
months.
ple matter of cutting government spending and balanc-
Reagan's 49% approval rating, a record low for a
ing the budget, and at least for now the public believes
modern President after one year, was "due in consider-
the course Reagan has set should be continued. But, he
able measure to growing pessimism regarding the econ-
added, if there is no recovery by midyear, the economy
omy," the poll concluded.
will become a devastating problem for Republican can-
If the recession lingers through the year, if interest
didates.
rates begin to climb again, and if unemployment re-
D. Garth Taylor, an assistant professor of political
mains rampant, even the most faithful apostles of Rea-
science at the University of Chicago and a research as-
gan economics concede that 1982 could be disastrous for
sociate of the National Opinion Research Center. de-
GOP strategists. who believed
scribes the public support for Reagan's economic initia-
Continued from 9th Page
summer and fall will determine whether he goes to the
tives as far more durable than practicing Democrats be-
Senate or home to Tennessee. "If it doesn't improve, if it
lieve.
gets worse, Robin Beard will be defeated," he said. "If it
"People are really interested in understanding a lot of
turns around, I'll win hands down."
ideas that are behind this new set of budget priorities,"
Whatever the course of the economy, Democrats'
he said in an interview. "I can't think of any reasonable
chances of recovering control of the senate-where Re-
systematic challenge that can be mounted to this thing:
publicans now have a 52-47 edge, with one independent
I think the Democratic programs are still pretty unsys-
-are slim. Twenty Democratic seats are up or-reelec-
tematic and still pretty much discredited.
tion this year, compared with only 12 Republicans and
"We're in a time where it's not just policies that are
the independent.
changing. There is some new set of ideas that are on the
In three states where the Reagan budget cuts and the
agenda, and people are waiting to see how they will,
economies tend to be strong issues-Indiana, Missouri
work.
I don't know that this will still be-the attitude
and Pennsylvania-Senate Republicans maintain that
a year from now, and I don't know what kind of circum-
GOP incumbents appear to be in position to be reelected:
stance it would take to build up a lot of frustration, but
But Democratic strategists believe Republican Sens. S.
people would have to be convinced that things are
I Hayakawa of California and Lowell P. Wéicker Jr. of
worse now than they would have been under some oth-
Connecticut are ripe for defeat, and that they have a
er administration."
good chance of replacing Sens. David F. Durenberger of
Republicans running for office this year are not so de-
Minnesota and John H. Chaffee of Rhode Island.
tached and academic, however.
"I think now that it is very possible that we will
'Campaigning Like Purgatory'
maintain our strength in the Senate. and perhaps gain a
seat or two," Democratic chief Manatt said.
Rep. Robin L. Beard (R-Tenn.), who is trying to-un-
Meanwhile Anh Lewis. the Democratic National
seat freshman Democratic Sen. James R. Sasser. is find-
Committee's political director. said the House "has more
ing campaigning through a recession more than a little
vulnerable Republicans than Democrats." She and oth-
frustrating. "It is very hard to discuss Reaganomics
ers at the committee now consider Republican chances
now." he said. "The economic mess we're in is not a re-
of capturing the House remote. especially because the
sult of Reaganomics. The program is not in place yet-it
formation of new congressional districts reflecting the
hasn't had a chance to work-but we're suffering from
1980 census makes it appear that Republicans will gain
40 years of careless, irresponsible deficit spending.
no more than five seats. rather than the 17 they once
"Campaigning now is like being in purgatory. I can't
expected.
promise a guy who is losing his job that things are going
As candidates for the House and Senate begin the
to be better in six months, but I don't know what else to
long march November, state legislatures across
say."
the country are going back to work. trying to fathom for
Beard said he has no doubt that the economy next
the first time the real impact the massive budget cuts
will have on state governments and residents.
"I try to work within the President's bottom-line budg-
More than half the states in the country already were
et.
I've given the President a list of things he and
in deep financial trouble before the Administration be-
his Administration can do for the Midwest and Illinois
gan the budget cuts now being passed along to-them.
that won't cost a lot of money but will be important to
Many already had begun the politically excruciating
us."
process of cutting services and raising taxes, and in re-
But another Republican governor. Lee S. Dreyfus of
cent months the word has gone out from one statehouse
Wisconsin, remarked after a meeting with Reagan that
after another that state governments will not come up
"we've cut almost as far as we can cut. Our purpose was
with appropriations to make up for the federal cuts.
to tell him the depth of the pain. We are not talking
The pinch is just beginning, but it is already painful.
about capping teeth; we're talking about root-canal
In Minnesota, there is a $768 million deficit, and stu-
work, and we've run out of anesthetics."
dents have been demonstrating against sharp tuition in-
The economic and political problems have reached far
creases. In Michigan. the state government is broke, and
beyond the decaying inner cities of the North and Mid-
Gov. William G. Milliken. who has been in office 13
west and reached even into the Sun Belt, presumably
years, has announced he will not seek reelection in
the land of the future and a region where the Republi-
November. In Ohio. the state has put through the big-
can Party must root if the Reagan election victory is to
gest tax increase in its history and has cut its budget by
be a watershed.
$260 million. In Indiana, a special legislative session has
In Tennessee the next round of Labor Department
been called to deal with an expected deficit of $9 million.
statistics is expected to show an unemployment rate
When recessions have hit in the past, states have
above 10%. the highest since statistics have been kept.
helped stabilize the economy by continuing their own
In some counties, the jobless level is nearly three times
spending, but now states themselves are cutting back.
that. Next month the Tennessee Valley Authority is ex-
For the first time since the Great Depression. the public
pected to stop construction on three nuclear power
sector is participating in the downturn.
plants, throwing at least 3,000 more workers out of jobs.
We Fight a Little Harder'
(Rep. Beard. the Senate candidate. has seen his
There is not much agreement on what political conse-
brothers-in-law laid off at a Ford Mord Co. plant in
quences will flow from the state-by-state retrench-
Nashville and watched his businessman brother increa-
ment, although officials of the Democratic National
singly squeezed by high interest rates.)
Committee see the economic woes in states such as
Michigan and Ohio as creating disillusionment with Re-
Several days ago, Bobby Lannon, a Lebanon. Tenn..
publican governors there. They even believe Democrats
real estate broker. gave a visiting House subcommittee
are rapidly improving their chances to defeat Illinois
his view of the economy in the state. "Help in the last
Republican Gov. James R. Thompson. long considered
quarter of '82. won't mean anything to us," he said. "be-
presidential timber.
cause we won't be here. 1 have friends who are desper-
Like most other Republican governors, Thompson
ate. There is going to be mayhem. bankruptcy and sui-
has kept the faith with Reaganomics.
cide. That is a reality."
"What we do is go down to Washington and fight a
Some mass-transit systems in Tennessee have drasti-
little harder for the money that's left," Thompson said.
Please see REAGAN, Page 12
REAGAN: Coattails May Give GOP Bumpy Ride
Continued from 11th Page
ill. mentally retarded." Wherter said. "It is bound to
cally cut services. Medicaid benefits have been slashed.
have a political effect."
highways and bridges urgently need repair. state pri-
Tennessee has become unusually dependent upon
sons are so crowded they may be taken over by a feder-
money from the federal government because it has one
al court. and the state still ranks near the bottom in the
of the lowest tax rates in the country. And in Alexan-
salaries it pays its teachers.
der's judgment. voters in the state today prefer more
Three years ago. Tennessee elected Lamar Alexan-
cuts in state services rather than an increase in taxes.
der. a young lawyer and one-time aide to Sen. Howard
Not a voice has been raised in the Legislature to in-
H. Baker Jr. (R-Tenn.). as its first Republican governor
crease state revenues this year. A coalition formed to
since Reconstruction. This year state Republicans
press for adoption of a state income tax has decided to
hoped to take Tennessee permanently into the GOP
wait until after the 1982 election.
camp by reelecting Alexander and also defeating Sasser.
The major economic measure before the Legislature
the Democratic senator.
this session will be a bill permitting local governments
But the Reagan economic program has not helped
to increase taxes.
either Republican candidate.
"So far." said state Rep. John Bragg. chairman of the
"Gov. Alexander is popular. but he IS beatable be-
House Finance Committee. "Reagan has been able to do
cause he will have to carry the burden of Reagánomics
all these things and get all of the credit and none of the
on his shoulders." said Tennessee. House Speaker Ned
blame.
Ray Wherter, a Democrat. "The Reagan economic
"A lot of people are going to suffer now, and I look for
program is hemorrhaging in Tennessee.
a great deal of uniting among people." he added. "This is
"Just in the last 60 days. it has started to affect work-
like the Vietnam War. Only the poor and the deprived
ing people. farmers. small business people. merchants.
are fighting. The opinion makers didn't fight in that
really deserving needy people. elderly, sick. mentaily
war. and they aren't fighting in this one."
10
Part /Tuesday, January 19, 1982
tos Angeles Times
Hardship of Program Starting to Produce
Some Positive Effects, Analysis Shows
By JOHN F. LAWRENCE. Times Economic Affairs Editor
Much has been written about the
tax revenue as income and profits
And some of those benefits are
winners and losers from the Reagan
grew.
showing up now: Inflation has fallen
Administration program to cut taxes
What the Reagan plan did not
below the double-digit level.
and the growth of government. And
foresee was what economists like to
Workers in a number of indus-
with the nation well into a reces-
call "the painful period of adjust-
tries, faced with loss of their jobs.
sion. the losers appear to be in the
ment." the period before the pro-
have begun to modify wage de-
majority.
gram has a chance to work. It is the
mands.
The big question for the Adminis-
period in which the economy con-
tration is how quickly the economy
tinues along with its same old prob-
Diet for the Bleated
will rebound. easing at least some of
lems. perhaps worsened by the im-
Perhaps most significantly, the
the hardship and focusing attention
mediate effects of some of the Ad-
most severe-cost-reduction pro-
on some of the long-term benefits
ministration's moves.
grams are being instituted in indus-
that even some Reagan critics agree
Contributing to Recession
tries that have been among the
are possible from the program.
most. bloated with expenses and
There is no question that the
Although much of it has evapor-
with the highest wage levels.
ated now, last spring and summer
government cutbacks are contri-
buting to the recession at the
Among these are steel. autos and
the Reagan plan had broad support.
airlines. Whatever hardships the
moment. But another contributor is
Many economists. businessmen and
an agency on which the President
Reagan program is causing, it at
others realized then that the nation
least can be said that the pain is be
had been on a consumption binge.
has relied to fight inflation in the
short term-the Federal Reserve
ginning to produce something post-
with consumers and governments-
tive.
federal. state and local-all taking
Board. The Fed-fearing inflation
Richard Rahn. chief economist
part in the spree. The result was
could get much worse if the econo-
for the U.S. Chamber of Commerce.
severe upward pressure on prices
my picked up steam too quickly-
has been among those to remain op-
and wages. In four years, the aver-
clamped severe restraints on the
timistic through the bleak economic
age worker had lost 15% of his pur-
supply of money flowing to the eco-
news of recent weeks. "The bad
nomic system. Interest rates soared
chasing power.
news has driven out the good," he
and recession began as more and
Head-On Attack
told a Times reporter last month.
more consumers were forced out of
What Rahn and others still be-
In simple terms, the Reagan plan
the housing and auto markets, and
hind the Reagan program are fore-
was to end this spree with a head-
corporations began to reassess their
casting is an upturn in the economy
on attack. Taxes would be reduced
plans.
fairly quickly. made possible by the
in such a way as to stimulate indivi-
Recessions invariably create
hardship. People are thrown out of
drop in the inflation rate and the
dual savings and corporate invest-
work. and those on the fringes of
hope that the Fed therefore can let
ment. A higher savings rate would
interest rates slide downward.
mean a somewhat slower growth in
the work force who can find work in
the rate of consumption. for a time.
good times have a much tougher
Broaden Ranks of Winners
But ultimately. through corporate
time.
Such an upturn. with more stable
investment would come an econom-
Recessions also are supposed to
prices, would begin to broaden the
ic boom without severe inflation.
produce some benefits-if the hard-
ranks of the winners from the Rea-
And that, in time. would even build
ships do not become overwhelming.
gan plan. The work force would re-
gain some of its lost spending pow-
The risk is that the economy will
challenge. proponents of the Rea-
er.
follow a perverse course. The re-
gan plan agree. But they argue that
That would put the Reagan Ad-
cession might become so severe
the alternative-striking with the
ministration and the rest of the na-
that the program will have to be
old policy of ever-expanding
tion in a better position to address
abandoned in favor of massive new
domestic spending-would be
the hardships of those individuals
government assistance. Or the up-
worse. Although conceding that it
who have lost out directly in the
turn might come so soon that infla-
may not work as quickly or as pain-
federal cutbacks. And there would
tion will resume, putting the nation
lessly as they had hoped, they argue
be a much larger group realizing
back where it was.
that their approach offers the best
benefits.
Coping with those risks will be a
chance of ultimate success.
Some Nations Prefer Reagan's
Foreign Policy to That of Carter
Moscow Shares Responsibility
By FRANCIS B. KENT. Times Staff Writer
Although Moscow publicly blames Washington for
In the early months of Ronald-Reagan's presidency.
the deterioration in relations, a process that began long
there were complaints in many-foreign capitals about
before Reagan moved into the White House, diplomats
the apparent lack of any foreign policy in Washington.
in Moscow point out that the responsibility must be
Now that the outlines of a Reagan foreign policy are
shared by Moscow.
slowly becoming clear, there are still complaints, but
The Soviets, one Western-diplomat said, "are seeing
there are expressions of approval as well.
the many-sided effects of their own actions."
For reasons that generally involve their own inter-
He cited the Soviet military occupation of Afghanis-
ests. some foreign governments now judge the Reagan
tan, which began in December, 1979, the Kremlin's
Administration's performance in international affairs to
pressure on Poland to stem the spread of democratic re-
be an improvement over the Carter Administration's.
forms, the continued Soviet use of Cuban and East Eu-
Some give it lower marks, and some continue to find it
ropean troops to support Marxist regimes and rebellions
ambiguous and-confusing.
in Africa and elsewhere and the accelerating Soviet
And. in some parts of the world. what is perceived to
military buildup.
be the absence of a enunciated American foreign
In the months ahead, the Reagan Administration's re-
policy is regarded as something of & blessing.
lations with the Kremlin will hinge to a great extent on
"You have been more ambiguous during the past year
whether the two really get down to serious negotiations
on arms control.
than at any time in recent history the foreign minister
It is this same issue that has had -and will continue
of a Persian Gulf country told a Times reporter not long
to have-much to do with how Washington gets along
ago. "But from our point of view the ambiguity has been
with its allies in Europe.
useful. We have had much more freedom of maneuver
Until Reagan's Nov. 18 speech, officials in Western
since Reagan took office than we enjoyed during the
Europe were confused about American foreign policy.
Carter years or in the Ford and Nixon years."
But they tended to blame not Reagan $0 much as the
Qvershadowing the entire question at the moment is
men around him and what they perceived to be an ab-
Washington's reaction to events in Poland and how this
sence of cooperation among the State Department, the
will affect East West relations as a whole.
Defense Department and the National Security Council.
But, even before the situation in Poland became criti-
'Sheeting From the Hip'
cale foreign officials were paying close attention to the
new government in Washington, watching for moves-
West Europeans saw Washington. one official said, as
a speech. a chance remark, a decision on trade, the ap-
a "lone cowboy shooting from the hip." They were puz-
pointment of a new ambassador- might signal a
zied by Secretary of State Alexander M. Haig Jr's
new direction in American foreign policy.
preoccupation with Central America as the focal point
To an extent unparalleled elsewhere. the Kremlin has
of Soviet meddling and by his interpretation of events in
the Middle East as an East- West confrontation rather
waxed hot and cold in its attitude toward Reagan, at
than a product of local instability.
least at the beginning. Months before Reagan's election
Morever, many Europeans were not at all impressed
in November, 1980, the controlled Soviet press was
with the men Reagan was sending to Western Europe
characterizing him as "even more sinister" than Pres-
as ambassadora. One official said the quality of the new
ident Jimmy Carter, whom the Soviets had come to
ambassadors was "generally indifferent "and that many
loathe.
more were "amiable businessmen not likely to make
Later, at least some of the persons in the Kremlin saw
much of an intellectual contribution to trans-Attantic
in Washington what they said could be interpreted as
understanding."
signs of encouragement. But since Reagan's first news
But there was at least one exception. The appoint-
conference as President, when he said the Soviet lead-
ment of former Federal Reserve Board Chairman Ar-
ers would "lie, cheat or commit any crime" to promote
thur F. Burns as ambassador to Bonn was widely ap-
the advance of communism, the voices of moderation in
plauded, in the press as well as in official circles.
Moscow have been drowned out by a harsh official line.
As early as May, 1981, Leonid: Zamyatin, the chief
Despite the early doubts. Western Europe reacted po-
spokesman for the Soviet Communist Party, laid down
sitively to Reagan's Nov. 18 proposal to reduce the level
what has become a consistent theme of Soviet propa-
of nuclear weapons. A number of the countries of West-
ganda, saying on Soviet television:
ern Europe, notably West Germany, have had to deal
"The (Reagan) Administration considers confronta-
with increasing domestic opposition to a North Atlantic
tion against the Soviet Union in economic, political and
Treaty Organization project, which originated while
other fields to be its main foreign policy concept.
Jimmy Carter was President, to deploy a new genera-
The United States has opted for military supremacy
tion of missiles.
over the Soviet Union
(and) is discarding the policy
The Europeans have been anything but unified in
of peaceful coexistence, the policy of detente.
their view of the Reagan Administration, and this was
reflected in their reaction to his imposition of sanctions
Since then, there has been nothing to suggest a thaw.
against the Soviet Union after the crackdown in Poland.
Soviet reaction to Reagan's proposal for mutual and far-
A spokesman for the West German government
reaching arms reductions, set out in a speech Nov. 18.
promptly expressed doubt about the extent of Soviet in-
was far from enthusiastic. A "propaganda ploy," the So-
volvement, although Chancellor Helmut Schmidt con-
viet news agency Tass called it.
ceded later, in Washington, that Mosco would have to
And when Reagan imposed sanctions on the Soviet
Union for what he said was Moscow's role in the milita-
Warsaw. bear heavy responsibility for what had happened in
ry crackdown on Poland, the Soviets denounced the
move as "blackmail," an attempt to return to the worst
davs of the cold war.
goverment
rushed
to
join
Wash-
ington with sanctions of its own. The Danish foreign
Their attitude was expressed violently not long ago in
minister, Kjel Olesen, said flatly that he thought the
the bombing of an American cultural center in Maseru,
United States had moved hastily.
the capital of Lesotho.
A year ago, it seemed that the United States' tradi-
An exception is Zimbabwe, which until last year was
tional special relationship with Britain would become
named Rhodesia and was ruled by whites. An aide to
even warmer. An observer in Paris, referring to Rea-
Prime Minister Robert Mugabe said that the new black
gan's supply-side economics and the monetarist prac-
government finds no fault with Reagan policies in Afri-
tices of Prime Minister Margaret Thatcher, said they
ca and is pleased that Reagan has continued foreign aid
"were made for each other."
at the previous level.
But the relationship has cooled. This unexpected turn
In East Asia, Reagan's government may not have
of events is said to be due in part to differenes between
spelled out any broad policy goals but it has taken speci-
fic steps on sensitive issues-and has stirred up trouble
Haig and the British foreign secretary, Lord Carrington,
at virtually every. step.
who, as a European source put it, "simply seem to rub
each other the wrong way."
Relations With China Delicate
On the other hand, and to the surprise of some people,
Relations with China have been delicate from the
the new government in Paris, which includes a Socialist
first. Peking was displeased when Reagan promised. be-
president and Communists in the Cabinet, has lined up
fore his election, to upgrade U.S. ties with the Nationa-
behind Reagan on important defense matters, although
list Chinese government on Taiwan. When the Reagan
it does not hesitate to sting the Americans in other areas
Administration last year considered supplying ad-
-Central America, for one
vanced warplanes to the Nationalists, the Peking
Slowly, the image of Washington as a "lone cowboy"
government objected bitterly. And Peking was only
is fading out in Europe. The Reagan Administration, an
slightly mollified when the President ultimately decided
official in Bonn said, "has finally begun to listen."
to provide less sophisticated aircraft.
In the Middle East, Israeli officials have complained,
What is seen in Peking as Reagan's ambivalence, his
along with others, about what is sometimes seen as dis-
perception of two Chinas, has made relations with Pek-
array in Reagan's foreign policy. Israelis were jolted by
ing shaky. and the outcome is far from certain.
the Reagan government's sharp reaction to their bomb-
In Tokyo, Reagan's retention of Mike Mansfield as
ing last summer of Iraq's nuclear reactor and to what
ambassador was regarded as a positive step. The former
amounted to Israeli annexation last Dec. 12 of the Golan
leader of the Democratic majority in the Senate was re-
Heights. an area taken from Syria in the Arab-Israeh
garded as one of Carter's best ambassadorial appoint-
war of 1967
ments.
Opposition to Arming Saudis
Mansfield has been particularly adroit, Tokyo's
Israeli complaints have had to do largely with Wash-
view as well as Washington's in handling differences
ington's willingness to supply arms to Saudi Arabia.
over Japanese auto exports, which were resolved with
Still, many Israelts concede that they have not been
the adoption of "voluntary" restraints. Also, though
treated badly by the Reagan Administration.
with seeming reluctance, the Japanese have moved to
increase their military spending, but not to the extent
"In recent memory," a senior Israeli official said not
that Washington would like.
long ago, "there hasn't been a President who has been
as reassuring, as positive and as friendly as Reagan. At a
Friction Over Trade Deficit
time of severe budget cutting. our foreign aid has been
And the huge deficit in U.S. trade with Japan con-
maintained. Bilaterally, we are getting from the Reagan
tinues to cause friction between the ro-governments.
Administration what we need."
Experienced diplomats fear that the problem will get
In the Arab World, the Reagan Administration ap-
pears to have made little impact. Relations with Wash-
Please see POLICY, Page 10
ington continue to be more or less what they were be-
fore Reagan: Those-governments that were pro-Soviet
are still pro-Soviet; those that were pro-American are
still pro-American.
White South Africans, in and out of government.
have approved of Reagan's policies, particularly his em-
phasis on anti-communism. They even appear to be
moving in harmony with his Administration's views to-
ward a settlement in Namibia, or South-West Africa.
the old German colony that has been administered by
South Africa under a now-invalid mandate from the
League of Nations.
S.Africa "Takes Comfort From Reagan
Peter Vale. director of research for the unofficial
South African Institute of International Affairs, said
that the South African government "Is taking great
comfort from Reagan"
"His policy is sharp contrast to the policy of Car-
ter." Vale continued. "There is a general feeling that
Reagan understands South Africa and its problems."
Black Africans generally take à different view. Most
of them resent the relaxed American attitude toward
In East Asia, the U.S. has taken
specific steps on sensitive issues
-and has stirred up trouble
at virtually every step of the way.
POLICY: Reagan Record in International Affairs
Continued from 9th Page
The military governments are relieved that they ap-
worse and that it will affect American policy through-
parently have heard the last of the human rights lec-
out the region.
3
tures that were the hallmark of Carter's policy in Latin
Closer to home, Reagan has in some ways been more
America.
successful. His policy in Central America has been at
But not all is well in the hemisphere. U.S. relations
odds with Mexico's, which is traditionally sympathetic
with Canada, which historically have been up on day
to revolutionary movements. Yet Reagan and President
and down the next, are in decline.
Jose Lopez Portillo get along well.
The most troublesome issues are Canada's attempts to
"We have come to understand each other." a senior
take complete control of the oil industry there. displac-
Mexican official said. "We have come to respect each
other and we have come to disagree
without strain-
This article was prepared with the assistance of
ing our friendly relations."
In Central America itself. Washington's relations are
Times reporters around the world.
in a state of flux, shifting with the revolutionary current
moving north out of Nicaragua and threatening, in va-,
ing American interests in the process. and what the
rying degrees, El Salvador, Honduras and Guatemaia.
Canadians see as American reluctance to do anything
In South America. most governments-elected
about Industrial pollution in Canada caused by indus-
governments and military regimes alike-look with fa-
tries across the border.
vor on Reagan's Washington, though for different rea-
However, Reagan is not seen by Canadians as the real
sons.
villain in all this. Canadians tend to blame Congress.
Venezuela and Colombia, both with presidents freely
And: despite the personality differences between Rea-
chosen. approve of Reagan's tough attitude toward Cu-
gan and Prime Minister Pierre Elliott Trudeau, who has
ba's Fidel Castro. and both are pleased by the prospect
been described as an intellectual elitist, personal rela-
of getting more military aid from Washington.
tions between the two men are said to be very good.
B
(Bakshian)
January 19, 1982
PRESIDENTIAL REMARKS TO EXECUTIVE APPOINTEES:
JANUARY 20, 1982
Thank you all very much. I've been looking forward to
this meeting for a very important reason. We in this room
share a special bond. We came to Washington not to get a job,
but to do a job -- to get this great Nation of ours back on
track after too many years of misdirection and mismanagement.
We came here under the banner of "A New Beginning" and we
have made a new beginning for our country and the people we
serve. But, as the poet Longfellow pointed out, great as the
art of beginning is, the art of ending is even greater. We
still have a long way to go -- a lot to do before we can
achieve all that we hope for the America of today and the
America we will pass on to our children.
One year ago, on a clear, crisp January day, I took the
oath of office and delivered my first address as President to
the American people. In it I said that the
=
ills we
suffer have come upon us over several decades. They will not
go away in days, weeks, or months, but they will go away. They
will go away because we as Americans have the capacity now, as
we've had in the past, to do whatever needs to be done to
preserve this last and greatest bastion of freedom."
I am glad to see that this quote was chosen as the motto
for today's program because I believe it sums up not only the
resolve of each of us in this room, but also the basic faith
and commitment of the American people. And, after all, what
Page 2
are we but their trustees, the pledged guardians of their
values, their beliefs, and their aspirations?
No one has succeeded in putting it better than Henry Clay
who said that "Government is a trust, and the officers of the
government are trustees; and both the trust and the trustees
are created for the benefit of the people."
Unfortunately, in growing too big and too greedy for
power, the Federal Government in the recent past lost sight of
this vital point. It is up to us to redress the balance. It
is up to us to begin the long, hard process of making
Government once more the servant rather than the master of a
proud and independent people.
We have made an impressive start. In this first year of
our trusteeship we have built a competent, dedicated executive
team. We have laid the foundations for economic recovery and
national renewal. We have begun to cut back the runaway growth
in big government spending and regulation. Inflation and
interest rates are down. A program that will mean more jobs
and more opportunity for all Americans is now in place. And we
have begun to restore confidence in America at home and respect
for America abroad.
We had promised to do all these things. But making
promises is easy; the real test is that, thanks to the
outstanding efforts of the team represented here today, we have
kept these promises, and many others as well. In fact, it says
something good about the job all of you have done in your
agencies and departments that, only 1 year into this
Page 3
Administration, we have been able to compile a record of
major promises kept to the American people, and that we are
well on our way to keeping more. [hold up booklet] Many of
you will see copies of this book. It's a sort of catalogue of
our track record to date and it's called, "Promises: A
Progress Report." It's not as thick as the Federal Register,
even after we trimmed it down, but it is an impressive list of
achievements -- and this Administration could not have made
them without the faith, commitment, and hard work of every man
and woman here today.
We also could not have made them without the sustained
support of the American people -- the people we serve as
trustees. I am sure that all of you were heartened, as I was,
by the latest New York Times/CBS poll. It showed an
overwhelming 60 percent majority of the people believe that our
program for economic recovery will benefit the Nation -- will
build a stronger, more prosperous America. The American people
haven't been led astray by the peddlers of pessimism and
despair. They understand that the damage of decades of waste,
mismanagement, inflation and economic decay will not vanish
overnight. And I suspect they've also noticed that quite a few
of the people shedding crocodile tears over our current
economic plight and taking pot shots at our recovery program
are the very people who led us into this swamp in the first
place.
Speaking of swamps, I want to urge you all not to get
bogged down in Potomac Fever. Don't let the Washington
Page 4
whirl -- or the Washington morass -- let you lose sight of why
you came here and what it is we're trying to do. I know it
isn't always easy. As the old saying goes, when you're up to
your armpits in alligators, it's sometimes hard to remember
that you're here to drain the swamp.
But that is why you're here and I'm here -- to cut back on
waste and mismanagement; to eliminate unnecessary, restrictive
regulations that make it harder for the American economy to
compete and harder for American workers to find jobs; to drain
the swamp of over-taxation, over-regulation, and runaway
inflation that has dangerously eroded our free way of life.
I believe our first year of trusteeship has demonstrated
our good faith to the people we serve. It was their faith, in
turn, their support and confidence, that got the recovery
program through the Congress. It is their support and
confidence that will see that program through to success.
In the meantime, it is up to each of us, through our
conduct and commitment, to continue to justify their confidence
in us as their trustees.
I believe we can and will. The evidence keeps cropping up
in the most surprising places. Sometimes the most convincing
endorsements come from the competition. Just last week, on a
visit to the Department of Transportation, Drew Lewis told me
that he had been deeply impressed by something said to him by a
ranking majority member of the House of Representatives -- a
man who is not exactly a leading member of the Ronald Reagan
fan club. I won't mention any names -- it might get him into
Page 5
hot water with Tip O'Neill -- but what this veteran Congressman
said to Drew Lewis was that it was nice to finally have
leadership in the White House that actually did in office what
it said it was going to do when running for office.
I take that as the supreme compliment coming from the
other side of the aisle. But I don't take it as a personal
compliment. I take it as a compliment to an Administration
team, government-wide, that puts principle first; a team that
came to Washington to serve America rather than serve itself.
I take it as a justification for the pride I feel in your
talent and commitment as individuals and, even more, as
dedicated team players.
But any coach worth his salt knows that it's not the
season that just ended that counts; it's the season that's just
beginning. As a team, we are about to launch our second
season, and it's going to be a grueling one.
To keep our recovery program working --- to get an ailing
America back on its feet and running again -- is going to take
a massive team effort. Each of you in your departments and
agencies will have to work even harder to root out waste, fraud
and mismanagement. Each of you will have to work even harder
to see that every tax dollar that is spent is spent wisely and
well. And each of you must use every fiber of your experience
and imagination to come up with better, more efficient ways of
getting the necessary work of government done.
There may have been a time when America could afford to
let things slide, a time when second best would do. Well, if
Page 6
there ever was such a time, it has long since past. Today, and
throughout the year ahead, only your best -- only our best --
will be good enough.
Great results have never been achieved without great
effort. What we have undertaken is nothing less than the
rebirth of a nation -- the revival of the independence, the
vitality and the resourcefulness that tamed a savage wilderness
and converted thirteen small, struggling colonies into what
Abraham Lincoln called the "last, best hope of earth."
Lincoln also reminded us that "we cannot escape history. "
In his Second Annual Message to the Congress, 120 years ago, he
issued a warning that still holds true today. "We of this
Congress and this administration will be remembered in spite of
ourselves," Lincoln said. The "trial through which we pass
will light us down in honor or dishonor to the last
generation."
In this second year of our Administration, America, and
American leadership, again face many tests. At stake in
Lincoln's day was the survival of the American Nation. At
stake today is its revival -- assuring that the Nation and
ideals Lincoln saved, and each subsequent generation of
Americans has worked to preserve, will take on fresh life and
hope for those who come after US.
This is an exciting time to be alive, an exciting time to
serve in Washington. It's a time of both challenge and
reaffirmation. Each of us has been put here for a purpose. We
must redress past errors, errors that have already cost the
Page 7
people we serve far too much in economic stagnation,
joblessness, crippling taxes and inflation.
It isn't going to be easy; nothing really worth achieving
ever is. But this is an opuimistic Nation and I am an
optimistic person. If I wasn't, I never would have left my
ranch to come here in the first place. I am confident that, if
we all do our best today and in the months ahead, we can turn
things around. We can make today's government -- and today's
America -- a model for generations to come.
That is our trust. That is why we are here. And that is
why I want to thank each of you for all that you have done and
will do to make America great again.
I'm counting on you, and so are the American people.
C
THE WHITE HOUSE
WASHINGTON
January 19, 1982
MEETING WITH CHARLES WICK, ROBERT GRAY AND CHARLES HAGEL
DATE:
Wednesday, January 20, 1982
LOCATION: Oval Office
TIME:
1:55 p.m. (10 minutes)
FROM:
Dave Fischer DCF
I.
PURPOSE
To present you with a book of photographs, commemorating
the Inaugural Satellite Balls held around the country on
January 20, 1981.
II.
BACKGROUND
Charles Wick and Bob Gray were co-Chairmen on the 1981
Inaugural Committee while Charles Hagel was directly
responsible for the Satellite Balls.
III. PARTICIPANTS
Charles Wick
Robert Gray
Charles Hagel
Dave Fischer
IV.
PRESS PLAN
White House photographers only
V.
SEQUENCE OF EVENTS
Dave Fischer will escort group into Oval Office.
D
THE WHITE HOUSE
WASHINGTON
BRIEFING MEMORANDUM FOR THE PRESIDENT
SUBJECT: ECONOMIC PROGRAM MEETING
Wednesday, January 20, 1982
2:00 p.m. (60 minutes)
The Cabinet Room
FROM:
RICHARD G. DARMAN
CRAIG L. FULLER
E.
I.
PURPOSE
The purpose of the meeting is to brief you on further
work re the Federalism initiative and outstanding
economic program issues. In order to prepare budget
materials, and to do appropriate consultation and
briefing, it will be necessary to have your decisions
by Thursday morning.
II. SEQUENCE OF EVENTS
A paper that will serve as the basis of discussion
will be distributed in the meeting.
III. PARTICIPANTS
The President
The Vice President
Edwin Meese III
James A. Baker III
Michael K. Deaver
Martin Anderson
Richard G. Darman
Kenneth M. Duberstein
Craig L. Fuller
David R. Gergen
Murray L. Weidenbaum
Richard S. Williamson
E
SCHEDULE TO BE DISTRIBUTED IN THE MORNING
(Maseng/AB)
January 19, 1982
BRIEF REMARKS: FIRST INAUGURAL ANNIVERSARY EVENT
JANUARY 20, 1982
Nancy and I are delighted to be here with you tonight --
your efforts did much to bring this Administration into
being. We thank you for what you have done in the past, and
for the dreams you are unafraid to live today.
This is a very impressive gathering. When I walked in
I thought I'd stumbled onto the movie set of "High Society."
But beneath the surface glitter lies a deeper resolve. We
have come in our finest to recognize another turning point,
to set this evening apart, to unite behind a cause we
believe will bring prosperity to all Americans.
We have achieved a lot in the year that has passed,
including historic cuts in the budget, taxes and size of
Government. But tonight we are here to renew our commitment
for the long road still ahead.
The toughest years of this Administration are still
before us. The days of sensational, quick victories are
mostly behind. Our struggle is settling into the trenches.
We must move from the glamour of initial commitment to the
grit of the long haul.
I am as resolved today as I was a year ago to restore
incentive through individual tax cuts, to reduce spending
and to return as much power and authority to the States and
localities as is permitted by the Constitution. At the same
time we will do a better job of meeting basic Federal
responsibilities -- such as keeping America strong enough to
remain free. No one has convinced me that these goals can't
Page 2
be achieved together. In fact, I don't think any can be
achieved alone.
There are those who have resisted us in this from the
beginning, but many of these people believe in very little.
How can they have faith in the American people? Their sense
of right and wrong depends largely on circumstance. How can
they accept a philosophy based on morality?
The loudest cries of pain have come from Washington,
the very people who for decades have led the raid on America's
resources, from those who have had a hand in creating our
present problems. They say today's recession is proof our
policies don't work. The only thing this recession proves
is that what they have done hasn't worked and never will.
We must get control of the budget monster, get control of
our economy, and get control of our own lives and our own
destinies.
If we do nothing else in this Administration, we're
going to convince this City that the power, the money and
the responsibility of this country begins and ends with the
people and not with some cinderblock building in Washington,
D.C.
The American people have not lost faith in our cause.
An independent poll recently asked them if the recession
hurts. "Yes," they said. Is the economy under control?
"No," they said. In light of this, should the Administration
continue its economic policies -- policies based on faith,
incentive and growth? The answer was a resounding "Yes."
Page 3
The American people know what 49ers quarterback Joe
Montana found out the hard way. When he was making the
transition from college to pro, there were those who thought
him too thin. So Joe ate pizzas and drank milkshakes at two
in the morning, thinking the extra weight would be like
extra padding. As it turned out, he got the padding, but it
was in all the wrong places.
Joe Montana found out that short cuts don't always get
you where you want to go. Detours are rarely the road to
excellence and excess never leads to strength.
What the American people are calling for is a return to
our first, sound principles: the system of self-government
and free enterprise that made us great in the first place.
Our efforts are beginning to make a difference, but I
am not satisfied.
Inflation has dropped to single digits for the first
time in 3 years -- but it is not low enough. Interest rates
are far below their once-dizzying heights, but not far
enough. Regulations have been cut by more than a third --
but there is much more to be done. Last year's tax and
budget cuts were the largest in history, but they only
reduced increases already built into the system.
Our plate is still full. Reducing inflation, interest
rates and unemployment by cutting taxes, budgets and regulations
is part of my dream to restore accountability in Government.
Forcing Americans to accept the dictates of faceless bureaucrats
in Washington instead of confronting elected representatives
Page 4
in their city hall has to be one of the more serious mistakes
of this century.
City halls, county seats and State legislatures are the
very laboratories of democracy, and yet in past years we
have closed our eyes to their findings. By removing the
possiblity of resolving our problems where they occur, too
many of us have turned our backs on the genius of our system.
Too many of us stopped believing in our ability to govern
ourselves.
Through our program of block grants we have returned
much of the decision-making to State and local governments.
But, again, it is not enough. I will not rest until we can
return resources as well as responsibilities to the levels
of government closest to the people.
The American people have sent the hand-wringers in
Washington a message: They believe in our programs because
they believe in themselves. As Woodrow Wilson said, America
is not a mere body of traders; it is a body of free men and
women. Our greatness is built upon our freedom. It is
moral, not material. We have a great ardor for gain; but we
have a deep passion for the rights of man.
We will suffer no more delusions that these sentiments
are found only along the banks of the Potomac. It is the
common bond of all who love freedom. In the words of Lech
Walesa, "There will always be a glow within us."
On the outskirts of Gdansk this Christmas, there was a
sign with eight foot tall letters plastered on a wall near
the Lenin shipyards. It read "Countrymen. Save freedom. "
Page 5
That is the challenge I leave with you tonight. I
thank you for all you have done, but I ask you for even
more. In this celebration tonight, let us renew our commitment.
In this decade our country calls not for our sacrifice, but
for our resolve.
Thank you very much.
REVISED
TAB B
Wednesday, January 20, 1982
Reagan Administration
Executive Forum
1 23456789 10 11 12 13 14 15 16 17 18 19
Podium
1. The Vice President
2. Secretary of State Alexander M. Haig, Jr.
3. Secretary of the Treasury Donald T. Regan
4. Secretary of Defense Casper W. Weinberger
5. Attorney General William French Smith
6. Secretary of the Interior James G. Watt
7. Secretary of Agriculture John R. Block
8. Secretary of Labor Raymond J. Donovan
9. Secretary of Health and Human Services Richard Schweiker
10. Secretary of Housing and Urban Development Samuel R. Pierce, Jr.
11. Secretary of Transportation Andrew L. Lewis
12. Secretary of Energy James B. Edwards
13. Secretary of Education Terrel H. Bell
14. Counsellor Edwin Meese III
15. Director of Office of Management and Budget David Stockman
16. Director of Central Intelligence Agency William J. Casey
17. Ambassador to the United Nations Jeane J. Kirkpatrick
18. United States Special Trade Representative William E. Brock
19. Chief of Staff James A. Baker III