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Cincinnati Chamber of Commerce 1/12/90 [OA 8309]
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Cincinnati Chamber of Commerce 1/12/90 [OA 8309]
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Speech Backup Chronological Files
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This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
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Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Speech File Backup Files
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Chron File, 1989-1993
OA/ID Number:
13700
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13700-007
Folder Title:
Cincinnati Chamber of Commerce 1/12/90 [OA 8309]
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G
26
19
5
6
George Bush for President
FOR IMMEDIATE RELEASE
CONTACT: ALIXE GLEN
Tuesday, April 26, 1988
(202) 842-1988
EXCERPTS OF REMARKS FOR
VICE PRESIDENT GEORGE BUSH
OHIO ASSOCIATION OF BROADCASTERS
CINCINNATI, OHIO
where he TUESDAY, learned how APRIL touthpaste 26, 1988 is put in the tube.
I spent part of the morning at Procter & Gamble's R&D
facility What an impressive operation that is. It's a textbook
example of something I've thought about for a long time the
importance of quality.
I believe that quality is the answer to the challenge we
face from our foreign competitors. Jim Houghton, the chairman of
Corning Glass, is one of the most outspoken proponents of this
philosophy. And once you hear his definition, you'll understand
why. His definition of quality is this: "Understand the
customer's requirements and meet them 100 percent of the time."
That's a tough standard, but you've got to admit: If you
meet it, you're going to be successful.
Providing what the customer wants -- that's the driving
force that defines free enterprise. The customer is king. In
your business, you know that better than most -- you live with
ratings every day. When the customer has 10 or 20 or 40 channels
to choose from, the competition is ferocious.
But our economic system is built on competition, and it
works because the surest way to succeed is to produce the best
value for the customer.
Procter & Gamble grew to be the giant that it is because it
understood this principle sooner than anyone else in its field.
Its market testing is legendary, and its R&D efforts, as I saw
today, are state-of-the-art. It believes in the quality motto:
"Understand the customer's requirements and meet them 100 percent
of the time."
Quality is important not just to compete in the export
market -- quality is important to compete right here at home.
Each of us will buy more American products when we shop if each
of us, when we work, make those products the best in the world.
You can see the quest for quality right here in Ohio.
to
no
tough
educ.
rements who we are
733 15TH STREET N.W., SUITE 800, WASHINGTON, D.C. 20005
TELEPHONE: (202) 842-1988
Paid for by George Bush for President
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MAY 4 '88 15:18 OVP PRESS OFC WASH DC
PAGE. 07
2
Here in Cincinnati, the General Electric plant makes the
best jet engines in the world -- and you don't have to take my
word for it, that's right out of Fortune magazine. In Akron,
-
state-of-the-art work is being done in the area of polymers,
which are used to make plastics and other synthetic products.
And up in Cleveland is the world-renowned Cleveland Clinic.
You wouldn't think the quality motto would apply to health care,
but that's exactly what they strive for: "Understand the
customer's requirements and meet them 100 percent of the time."
The battle we've been having with our foreign competitors
has had a profound effect on American business and industry. The
quest for quality is just one example. We've also seen new
attention to cost control, to lean management, and to marketing
abroad. And the lower dollar is finally kicking in.
The result: Exports are up dramatically. Real exports last
year increased 17 percent. We've strengthened our position as
the world's largest exporter of manufactured goods. Next year
the U.S. share of the world market is projected to be 50 percent
larger than that of West Germany or Japan.
A lot of people talk about the decline of American industry.
Transition would be a better word. The fact of the matter is
that we are in the midst of an industrial revival in this
country. Let me cite a few facts:
Between 1974 and 1984, large companies eliminated nearly a
million and a half factory jobs, but at the same time, 41,000 new
companies created almost as many new industrial jobs.
We're in the midst of the longest peacetime expansion ever
-- more than 15 1/2 million new jobs. The Europeans call it "the
American miracle" -- and with good reason: That's more jobs
created in the last five years than Europe and Japan have created
in the last 20 years.
And don't believe the myth that those jobs are bad jobs.
Nearly two-thirds of them are in the higher-paying skilled
occupations, and over 90 percent of them are full-time.
To maintain that strong economy, we've got to get the
federal budget deficit down, and we've got to do it by holding
the line on spending.
Some people on the other side say, "Raise taxes." Well,
I've been in government a long time, and I've seen what happens
when the government raises a dollar in revenues: Congress spends
a dollar fifty.
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PAGE. 08
3
I've yet to have anyone walk up to me and say, "Mr. Vice
President, we're not taxed enough. I hope you'll be the
President to raise my taxes." I will not raise the taxes of the
working men and women of this country.
The answer to the deficit is for the President to make the
tough calls and take the heat. That's what a President is there
for -- to lead. And that's why I want the same tool that 43
governors have -- the line-item veto.
Ultimately, though, what we do in Washington will have less
impact on our competitiveness abroad than what our people do
every day in their jobs.
That's one reason I've been stressing education. Better
schools will mean better American workers, and better workers
will mean better and more competitive American products -- and if
we've learned one thing from our foreign competitors, it is this:
Quality sells itself.
At Ford they say, "Quality is Job One." Well, if I may
borrow a phrase from General Motors, "What's good for Ford is
good for the country."
Let me conclude with a story told by Jim Houghton, the
Corning chairman who believes so strongly in quality. It seems
there was a fellow named John Jelliff who ran a silk-screening
machine in one of the Corning plants. He didn't think it worked
very well:
"So John -- who's got a high school education -- decided to
do something about it. He went out and started tinkering in his
basement.
"And then John went to his managers, who were all busy
preaching the gospel of quality. And he said something like, 'If
you really believe in what you're saying, you'll let me make my
own machine.'
"Well, they hemmed and they hawed and scratched their heads,
but in the end, they said yes. They offered some help in the
form of nuts and bolts and a minor part or two.
"Sure enough, some time later, here came John, lugging this
contraption in through the parking lot.
"John set up his machine. And, wonder of wonders, it was a
better machine. It took 45 percent less time to set up. What's
more, it increased production by 40 percent."
Houghton concludes, "These people are our competitive
advantage."
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38987;# 9
MAY 4 '88 15:19 OVP PRESS OFC WASH DC
PAGE. 09
4
In the years ahead, we will face a powerful challenge from
abroad -- unprecedented economic competition -- but in Chinese
the characters for challenge can also be read as opportunity.
The answer to this challenge -- to this opportunity -- is
right here at home, in our hearts and in our heads -- in our
people.
Let's remember who we are. We're the United States of
America. We spanned a continent with railroads and highways and
jet planes; we put a man on the Moon. We're the greatest country
-- the freest, fairest, most productive country -- that has ever
existed on the face of the Earth.
Let's remember what made our free enterprise system such a
mighty engine of prosperity -- our determination to succeed, our
pride in what we produce, our ingenuity and flexibility and
openness to change.
The answer we seek for the problems of the '90s -- for the
problems of the 21st century -- the answer is quite clear. It
lies within ourselves. It is the spirit of America.
Thank you very much.
# # # #
McNally/Simon
January 5, 1989
90
Draft One (B:OHIO)
PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE
HYATT REGENCY BALLROOM, CINCINNATI
FRIDAY, JAN. 12, 1990, 1:30 P.M.
[[ACKNOWLEDGEMENTS]]
We're pleased to be back here in Cincinnati. Actually, I
was hoping to get out here for Opening Day for the Reds. But
they tell me I'm three months too early. Same problem I ran into
on Pearl Harbor Day.
It is fitting that, in the days leading up to the State of
the Union Address, we should meet again in Cincinnati. The last
Vschednle
11/4/88 time I visited was in November 1988, in the final days of the
6/24/88
Presidential campaign. And earlier, Cincinnati was one of my
7/12/88
last stops before the convention in New Orleans.
On the trip before that, in April 1988, we spent part of one
4/27/88
stet
morning at Proctor and Gamble's R & D facility. They taught me a
LA
Times
trick every President wants to know: How to put toothpaste back
into the tube.
up
schedule
All in all I came here four times during the Presidential
campaign. I talked of America's future and of future
generations. I talked of certain principles. Told you I was
ready to make the tough calls -- to use the veto where principle
was involved -- and to take the heat.
And today I've come back to Cincinnati to tell you I'm ready
to make good on that pledge.
2
On the day I took office, I put my hand out to Congress, to
the Democratic majority, and reminded us all that the American
people did not send us to Washington to bicker.
We sent proposals to Congress on the big three, the three
C's: Capital gains. Clean Air. Combatting crime.
Responsible proposals. Carefully thought out. Based on
principle.
Now a year has passed. A new year has begun. And it's time
-- it's past time -- for Congress to tend to this unfinished
business.
America wants it done right.
America wants it done responsibly.
And America wants it done now.
We are always willing to listen to ideas and alternatives.
But we are not willing to compromise our principles.
Compromise our principles -- and there's not going to be a
fight. But there is going to be a veto.
Today free market ideas are taking hold around the world. A
world no longer on the brink of war. A world on the brink of the
greatest expansion of free trade ever seen.
Bryd
Against this backdrop, a majority in both Houses of Congress
Hollingsworth
has called for a tax cut on capital gains. We need this infusion
of new venture capital to keep America competitive, to fuel our
continuing economic boom.
3
As the world turns to freer markets, this is no time to
become wishy-washy about where America stands. The jury is no
longer out. Markets work. Government controls don't.
And since the debate has all but ended on this issue,
perhaps our most die-hard ideologues can now turn their attention
to a question that deeply divides America to this day: Is it
Texas or Cincinnati that produces the world's best chili?
Of course
this also is a question to be decided by the
market.
The economic challenge of the 90's is to make markets work
better. And one of the best ways a government can do that is to
do what people around the world are asking their governments to
do: Get out of the way!
It works. Here at home, we remain in the midst of the
BBA
12/11/89
longest peacetime economic expansion in our nation's history, an
P.
expansion that has created an astonishing 20 million new jobs
since 1982. That's as many as the total number of jobs in the
BLS
central Midwest -- as many jobs as there are in Ohio, Kentucky,
see
file
Indiana, Michigan, Illinois and Wisconsin, combined.
It's not due to the genius of Washington. It's the genius
of places like Cincinnati -- the Ohio River valley -- and the
solid American values that have flourished here and helped
inspire the world.
A world that is watching. A world that is ready.
Because from Central America to Central Europe, one reason
that free ideas and free trade are on the march is because middle
4
America has never lost sight of the principles that continue to
make this country a beacon of hope and opportunity.
The headlines tell of other nations buying American. That's
good news -- not bad. We've been urging our own people to "Buy
American" for years. They are all investing in the greatest job-
creating machine of the 20th century. The most stable economy on
earth.
And just as the world's people are voting with their feet,
so the world's investors are voting with their pocketbooks. And
the results are in: America is the choice.
And so, we don't have to look elsewhere to know what works.
If you want to follow the smart money advice of the 1990's, go to
where the Japanese are going. Look at what Europeans, East and
West, are looking at. Look at the U.S.A. Look at what the rest
of the world calls "the American miracle."
Employment
You saw it happen here in Cincinnati U.S.A., "The Blue Chip
+
" where 150,000 more people are at work than were working
BLS
six years ago.
10/89 765,456
11/83
585,000
Cincinnati produced its American miracle the old-fashioned
way, the American way. It's an old tradition here. When he
Cin.
Engainer
first opened his slaughterhouse in 1810, Richard Fosdick was
see
warned that meat couldn't be cured in Cincinnati's climate. But
file
he didn't know that it couldn't be done. He continued his
experiments until he discovered the rock-salt process for curing
meat -- and made this city the principal hog market of the world.
5
Renewing our emphasis on innovation is one of the ways
modern Cincinnati has prospered. You've also built a diverse
economic base. Stripped away corporate fat. Renewed our
America
emphasis on quality
General Electric makes the best jet
engines in the world.
just ask the boths at GE.
Vera Hartman
regain
ITA
Steps like these have helped strengthen our position as the
377-4211
world's largest exporter. of manufactured goods. And just last
AP
week it was announced that November's orders to U.S. factories
1-5-90
commine Dept.
for manufactured goods rose to the second highest level ever.
Cincinnati has also maintained high worker productivity, and
worked to educate and train our people for the 21st century.
In fact, on this matter of education, it seems there is
something special going on here in Cincinnati.
3
Two years ago business, educational, and community leaders
CYC
here came together to take on a mighty task: reduce the numbers
513-
621
of students at risk -- the staggering 40 percent dropout rate in
0033 public schools.
The result was the Cincinnati Youth Collaborative -- an
intensive people-to-people "mentoring" program that many of you
see
file
are supporting, a program that has already seen some early
success.
It has America talking. Your Governor visited one of the
CYE
participating classrooms at McKinley before coming out to the
513-
Education Summit I hosted in Virginia last fall. And later this
621-
earlier today had
0033
afternoon I will have an opportunity to see the programs at Taft
High School firsthand.
6
These are far-sighted efforts. Gutsy. Innovative. Sure to
make a difference in the lives they touch. And ultimately, these
are the kind of efforts that will determine how America fares in
the competitive, free-trade world of the 1990's.
VP
speek
In 1988, I called on Cincinnati to "remember who we are
--
4-26-88the freest, fairest, most productive country that has ever
existed on the face of the earth.
The way of the future is free people. The way of the future
is free trade. And free people and free trade is what America is
all about.
of course, it's not enough that trade be "free."
It's also got to be fair.
And it's not enough to tear down the Berlin Wall.
We've also got to tear down the tariffs and other barriers
to American trade.
game is afoot, a game in which a Cincinnati
can now fly non-stop to London and Frankfurt -- any
day of the week.
If the rules are fair and the same for everybody -- we can
play this game. It's called competition. We invented it. We
won it before. And we're going to win it again.
To flourish -- to triumph -- we need to boost savings and
investments. Cutting the capital gains tax would be a good
start.
Leg. affairs
There are other matters that require urgent attention when
X
7092 Congress gets back later this month. Our Clean Air Act proposals
7
recognize that in the emerging global economy, environmental
destruction knows no borders -- and that a healthy economy
requires a healthy environment.
And a kinder, gentler environment also means a society where
every man, woman and child can live and prosper in an environment
free from fear. That means freedom from crime, and especially
the increasingly violent crime that's been spawned by drug abuse
and trafficking. On our anti-crime package as well, it's time
for Congress to act.
There is much to be done in the months ahead. But as a new
year begins, Americans should also pause to take some pride in
what we have accomplished together. Let me suggest two areas.
More than anything else, a kinder, gentler nation is one in
Bura Ec. Report A
which everyone who wants a job, has a job. And today America has
reached
lowest unemployment rate since 1972 -- and Ohio has its
highest employment in history.
1973
Ohio
7844
peaked Sept. 89
Empl4-2689
For more Chan 40 years, three generations of Americans have
stood steadfast in a world often filled with challenge, rebuke
and even insult. Firm in our belief in America's might and in
America's destiny as leader of the free world, our spirit did not
falter, our troops did not flinch.
And today, after the watershed events of 1989, the free
world we're leading is growing bigger all the time.
In the past month we saw democracy restored to the brave
people of Panama. We saw a cruel dictator brought before the bar
8
of justice. And we saw a proud people weep with gratitude over
the courage of American soldiers.
And somehow, it seems heal more than a coincidence. Because in
we
Fish +
that same month, it was announced that the Bald Eagle -- the
Wildlife
service
American Eagle -- may soon be coming off the endangered species
Public affairs
list.
Ladies and gentlemen -- America is back. And this time,
America is back to stay.
Thank you. God bless you. And God bless Cincinnati!
#
#
#
JAN 05 '90 14:59 GR CINCINNATI CHAMBER OF COMMERC
P.2
Greater Cincinnati
Chamber of Commerce
TO: Bob Simon/Carolyn Cawley
Speechwriting
Persons on dais at the Greater Cincinnati Chamber of Commerce
speech by President Bush:
Joe
intro. PDTUS
Joseph H. Head, Jr., Immediate Past Chairman of the Greater
Cincinnati Chamber of Commerce; Managing Partner, Graydon,
Head & Ritchey Rob Portman's old boss
John G. Smale, Co-chairman of the Cincinnati Business Committee;
Chairman of the Executive Committee of the Board of Directors,
The Procter & Gamble Company
Hon. Charles Luken, Mayor, City of Cincinnati
Bob tabt II
(To be named Jan. 10), President, Hamilton County Board of
Commissioners
John P. Williams Jr., President, Greater Cincinnati Chamber of
Commerce
Ronald R. Roberts, Executive Director, Cincinnati Business
Committee
Jim Scott, Master of Ceremonies; on-air personality, WLW Radio
Bill
Tom
Cong. Gradison +1 Luken
Joe Morgan ?
1500 in andience
Gordo - X1511
300 Carew Tower 441 Vine Street Cincinnati, Ohio 45202-2812 513/579-3100
3171
Roger Ruhl
MANAGING
the back pockets scratched chair backs, the
close to the campfire, which heated the rivet.
attention to details-as they always have.
paint on the hood of a car, and anything else
In the whooping war dance that followed,
What is different today is that the pursuit of
the wearer sat on. The back-pocket rivets
Haas the president met Haas the customer. A
quality, whether in planes, pacemakers, per-
were removed, but despite occasional com-
week later the board of directors abolished
cales, or pianos, is no longer voluntary. If U.S.
plaints from cowboys, the crotch rivet re-
the copper crotch rivet by unanimous vote.
industry expects to win still more customers
mained. In the late 1930s, Walter Haas Sr., the
As the copper rivet anecdote suggests, the
and market share, it has no choice but to im-
company president, went on a fly-fishing trip
achievement and preservation of product ex-
prove its products. For the customer, quality
wearing a pair of 501s. One night he squatted
cellence take common sense, diligence, and
is irresistible. For industry, it is essential.
100 Products That America Makes Best
Magnetic resonance imaging scanners
General Electric
Marlboro cigarettes Philip Morris
All-electric plastics injection-molding machine
Data parallel supercomputers Thinking Machines
Cincinnati Milacron
Mass spectrometers Finnigan
Digital plotters Hewlett-Packard
Aluminum foil Reynolds Metals
Men's ready-to-wear suits Oxxford Clothes
Dishwashers General Electric
Atomic clock Frequency Electronics, Hewlett-Packard
Micro-precision machine and measuring tools
Distributed database management technology
Moore Special Tool
Ball point pens A.T. Cross
Tandem Computers
Microprocessors: Motorola 68000 family,
Balloon and laser angioplasty catheters
Ditch Witch trenchers Charles Machine Works
Intel 80X86 family Motorola, Intel
C.R. Bard, Eli Lilly, Trimedyne
Drugs: Capoten and Vasotec Squibb, Merck
Microwavable food in shelf-stable
Bamboo fly-fishing rods Walt Carpenter
Dustbuster Plus hand-held cordless vacuum cleaners
packaging: Impromptu, Top Shelf
Bed sheets and towels Burlington Industries, Dan River,
Black & Decker
General Foods, Geo. A. Hormel & Continental Can
Dundee Mills, Fieldcrest Cannon, J.P. Stevens, Springs
Electrodeposition primers PPG Industries
Microwave ovens Litton Industries
Industries, West Point-Pepperell
Electrohydraulic servo valves Moog
Minicomputers
Biotech drugs: t-PA Genentech
F-16 jet fighters General Dynamics
Digital Equipment, Hewlett-Packard, IBM
Bobcat skid-steer loaders Melroe
Fast food: hamburgers McDonald's
Minisupercomputers
Boots and hunting shoes Timberland,
L.L. Bean
Financial, engineering, and scientific hand-held
Alliant Computer Systems, Convex Computer
calculators Hewlett-Packard
Multimeters Hewlett-Packard, John Fluke Mfg.
501 jeans Levi Strauss
Offshore drilling equipment Cameron Iron Works
Flashlights Mag Instrument
Oscilloscopes Tektronix
Flutes Wm: S. Haynes
Pacemakers Medtronic
FM two-way radios Motorola
Paper towels Procter & Gamble, Scott Paper
Frequency and time interval analyzers Hewlett-Packard
Personal computer applications software
Fur coats Peter Dion, Goldin-Feldman, Ben Kahn, Maximilian,
Lotus Development, Microsoft, WordPerfect
Louis Milona
Personal computers Apple Computer
Glass fiber for communications Coming Glass Works
Pianos Steinway & Sons
Gore-Tex waterproof breathable fabric W.L. Gore
Post-it note pads 3M,
Handbags Coach Leatherware
Powerboats
Brain electrical activity mapping system
Nicolet Instrument
Hay and forage equipment Ford New Holland
Cigarette Racing Team, Donzi Marine
Camera film (color) Eastman Kodak
Heating controls Honeywell
Pressure transmitters for industrial
Heavy earthmoving equipment Caterpillar
process plants Rosemount
Central office switching equipment AT&T
Ice cream and sorbet New York Fruit Ice
Row-crop planters Case IH
Charcoal briquettes Kingsford Products
Charge couple device image sensor Eastman Kodak
Industrial and commercial floor sweepers
Scotch S-VHS videotape 3M
and scrubbers Tennant
Scotchcal drag reduction tape 3M
Clothes dryers Whirlpool
Instant camera films Polaroid
Sheet and strip stainless steel Allegheny Ludlum
Combines Case IH, Deere
Integrated voice and data communications systems
Soft drinks Coca-Cola
Computer operating systems software:
(T-1 multiplexers) Network Equipment Technologies
Stationery Crane
MS-DOS, Unix, VM, VMS
Microsoft, AT&T, IBM, Digital Equipment
Intelsat VI satellite Hughes Aircraft
Stereo loudspeakers International Jensen,
Copiers Eastman Kodak, Xerox
Ion chromatographs Dionex
Allison Acoustics, Infinity Systems
Jazz music
Sunglass lenses Coming Glass Works
Cotton denim Cone Mills
Cruising sailboats, 37 feet and under
Jet aircraft: 747 family of planes Boeing
Supercomputers Cray Research
Pacific Seacraft
Jet engines General Electric
Symbion J-7 and Thoratec artificial hearts
Crystal Steuben Glass
Keviar fiber Du Pont
Symbion, Thoratec Medical
Loader/backhoe Case IH
Tampax Tambrands
Locomotives General Electric
Technical workstations Apollo, Silicon Graphics, Sun
Teflon Du Pont
Longwall mining systems Joy Technologies
Telephone sets AT&T
Lycra spandex fiber Du Pont
Thermos vacuum containers Halsey Taylor/Thermos
Thin film hard disks Komag, Seagate Technology
Tillage equipment Krause Plow
Kodacolor
Tractors, 100 hp and over Deere
Washing machines Maytag, Whirlpool
Gold 100
USAT
12/18/89
NFL: WEEK 16
Sharpen your pencils.
NFL
HOUSTON
NEW ENGLAND
It's the last weekend of the NFL's
1989 record: 9-6-0
1989 record: 5-10-0
regular season and time to sort out
7
at Minnesota
38 27
at N.Y. Jets
24
34
at San Diego
27 10.
Miami
24
the 10 playoff finalists for the Super
1989 TEAM
41
Buffalo
47, OT 3.
Seattle
24
39
Bowl XXIV title.
Miami
7 10.
at Buffalo
31
13.
at New England
23 23
Houston
13
Included on this page are the offi-
SCHEDULES
33.
at Chicago
28 15
at Atlanta
16
27
Pittsburgh
0 20.
at San Francisco
37
cial NFL playoff tiebreakers and
17
at Cleveland
28 23
at Indianapolis
20
35
Detroit
31 26,
N.Y. Jets
27
game-by-game results of the 17 con-
AMERICAN
26.
Cincinnati
24 24
New Orleans
28
23
L.A. Raiders
7 33
Buffalo
24
tenders so you can figure out every-
CONFERENCE
0.
at Kansas City
34 21
at L.A. Raiders
24
23.
at Pittsburgh.
16 22
Indianapolis
16
thing yourself. Standings, 9C
20.
Tampa Bay
17 10.
at Miami
31
All times Eastern
7.
at Cincinnati
61 10.
at Pittsburgh
28
Dec. 23
BUFFALO
Cleveland, 8 Dec. 24
L.A. Rams, 1
Playoff possibilities
1989 record: 8-7-0
INDIANAPOLIS
N.Y.JETS
27
at Miami
24 1989 record: 8-7-0
1989 record: 4-11-0
Seventeen of 28 NFL teams remain in con-
14.
Denver
28
24.
San Francisco
30 24.
New England
27
47
at Houston
41, OT 17
at L.A. Rams
31 24
tention for the Super Bowl XXIV title going
at Cleveland
38
31
New England
10
13
Atlanta
9 40.
at Miami
33
into the final weekend of the regular season.
14.
at Indianapolis
37 17
at N.Y. Jets
10 10.
Indianapolis
17
23
L.A. Rams
20 37
Buffalo
14 7
L.A. Raiders
14
Clinching possibilities:
34
N.Y. Jets,
3
3.
at Denver
14 14.
at New Orleans.
29
31
Miami
17 23
at Cincinnati
12 3.
at Buffalo
34
AFC EAST
28.
at Atlanta
30 20
New England
23 10.
San Francisco
23
30
Indianapolis
7 13
at Miami
19 27
at New England
26
Buffalo: Can clinch division title with vic-
24.
at New England
33
7
at Buffalo
30 23.
Miami
31
24
Cincinnati
7 27
N.Y. Jets
10 10.
at Indianapolis
27
tory at New York Jets (would win tiebreaker
16.
at Seattle
17 10
San Diego
6 27
Atlanta
7
19.
New Orleans
22
with Miami based on two-game sweep; would
16.
at New England
22 20.
at San Diego
17
10.
at San Francisco
21
23
Cleveland.
17 0.
Pittsburgh.
13
win tiebreaker with Indianapolis based on bet-
Dec. 23
at N.Y. Jets, 12:30
42.
Miami
13 14.
at L.A. Rams
38
Dec. 24
ter division record; would win three-way tie-
at New Orleans, Dec. 23
Buffalo, 12:30
CINCINNATI
breaker based on better record in games
KANSAS CITY
1989 record: 8-7-0
PITTSBURGH
among the three teams). If Buffalo loses, it can
14.
at Chicago
17 1989 record: 7-7-1
1989 record: 8-7-0
41
Pittsburgh
10 20.
at Denver
34 0.
Cleveland
still win the division if Indianapolis and Miami
51
21
Cleveland.
14 24.
L.A. Raiders
19 10.
at Cincinnati
41
lose; it can be a wild card if Indianapolis, Kan-
21
at Kansas City
17
6.
at San Diego
21 27
Minnesota
14
26.
at Pittsburgh
16 17
Cincinnati.
21 23
at Detroit
3
sas City, Cincinnati, Pittsburgh, the Los Ange-
13.
Miami
20 20
at Seattle
16 16
Cincinnati
26
les Raiders and Seattle all lose.
12.
Indianapolis
23 14.
at L.A. Raiders.
20 17
at Cleveland
7
56.
Tampa Bay
23 36.
Dallas
28 0.
at Houston
27
Miami: Can clinch division title with vic-
7
at L.A. Raiders.
28 17
at Pittsburgh
23 23
Kansas City
17
24.
at Houston
26 20.
Seattle
10 7
at Denver
34
tory at home against Kansas City, plus losses
42.
Detroit
7 13
Denver
16 0.
Chicago
20
7
at Buffalo
24 10.
at Cleveland
10 20.
by Buffalo and Indianapolis. For a wild card, it
San Diego.
17
21
at Cleveland
0 34.
Houston.
0 34
at Miami
14
must beat Kansas City and will need losses by
17
Seattle
24 26
Miami
21 16.
Houston
23
61
Houston.
7 21
at Green Bay
3 13.
at N.Y. Jets
0
Indianapolis, Pittsburgh and Cleveland.
Dec. 25
at Minnesota, 9 13.
San Diego
20 28.
New England
10
Dec. 24
at Miami, 1 Dec. 24
Indianapolis: Can clinch division title
at Tampa Bay, 1
CLEVELAND
with victory at New Orleans, plus loss by Buf-
L.A. RAIDERS
1989 record: 8-6-1
SAN DIEGO
falo. Can clinch a wild card with a victory; be
51.
at Pittsburgh
0 1989 record: 8-7-0
1989 record: 5-10-0
38,
N.Y. Jets
24 40.
San Diego
14
14.
eliminated with a loss.
at L.A. Raiders
40
14.
at Cincinnati.
21 19.
at Kansas City
24 27
Houston
34
16.
Denver
13 21
at Denver
31 21
Kansas City
6
AFC CENTRAL
10.
at Miami
13 20.
Seattle
24 24
at Phoenix
13
7
Pittsburgh
17 14.
at N.Y. Jets
7 10.
at Denver
16
Houston: Clinches division title with
27
Chicago
17 20.
Kansas City
14 16.
Seattle
17
28.
Houston
17
7
at Philadelphia
10 13.
N.Y. Giants
20
home victory against Cleveland. If Houston
42.
at Tampa Bay
31 37
Washington
24 7
at Seattle
10
17.
loses, it will be a wild card with one loss by
at Seattle
7 28.
Cincinnati
7 20.
Philadelphia
17
10.
Kansas City
10 12
at San Diego
14 14.
L.A. Raiders
12
Buffalo, Cincinnati or Indianapolis.
10.
at Detroit
13
7
at Houston
23 17
at Pittsburgh
20
0.
Cincinnati
21 24.
New England
21 6.
at Indianapolis
10
Cleveland: Clinches division title by win-
17.
at Indianapolis
23 16.
Denver
13 17
N.Y. Jets
20
23
Minnesota
17, OT 16
Phoenix
ning at Houston. For Cleveland to be a wild
14 21
at Washington
26
Dec. 23
at Houston, 8 17
at Seattle
23 20.
at Kansas City
13
card if it loses, only one of the following teams
Dec. 24
at N.Y. Giants, 1 Dec. 24
Denver, 4
can win: Buffalo, Indianapolis, Cincinnati,
DENVER
MIAMI
SEATTLE
Pittsburgh and the Los Angeles Raiders.
1989 record: 11-4-0
1989 record: 8-7-0
1989 record: 7-8-0
34.
Kansas City
20 24.
Buffalo
27
7
Cincinnati: Cannot win division title. To get
at Philadelphia
31
28.
at Buffalo
14 24
at New England
10 24.
Phoenix
34
31
L.A. Raiders
a wild card, it will need a victory at Minnesota.
21 33
N.Y. Jets
40 24.
13.
at Cleveland
16
at New England
3
7
at Houston
39 24.
at L.A. Raiders
20
Under one scenario, it also will need losses by
16.
San Diego.
10 13.
Cleveland
10 16.
Kansas City
20
14.
Indianapolis
3 20
at Cincinnati
two of the following four teams: Buffalo, Mi-
13 17
21 23.
at San Diego.
16
24
at Seattle
Green Bay
20 21.
Denver
24
ami, Indianapolis or the Los Angeles Raiders.
24
Philadelphia
28 17
at Buffalo
31 10.
San Diego
7
34
Pittsburgh
7 19.
Indianapolis
13 10.
If three of those four win, it will need a victory
16
at Kansas City
at Kansas City
20
13 31
at N.Y. Jets
23 7
Cleveland
17
14
by Pittsburgh or a loss by Houston to get into a
at Washington
10 17
at Dallas
14 3.
41
at N.Y. Giants
15
Seattle
14 14.
Pittsburgh
34 14.
at Denver
41
tiebreaking equation that would come down to
13
at L.A. Raiders
16 21
at Kansas City
26 17,
Buffalo
7
16
N.Y. Giants
14 31
net points in conference games a depart-
New England
10 24.
at Cincinnati
37
17
at Phoenix
0 13.
at Indianapolis
42 23.
L.A. Raiders
17
ment in which Cincinnati has a 68-point edge
Dec. 24
at San Diego, 4 Dec. 24
Kansas City, 1 Dec. 23
Washington, 4
after Sunday's 61-7 victory.
NATIONAL
GREEN BAY
PHILADELPHIA
Pittsburgh: Cannot win division title.
Must win at Tampa Bay to have a chance at a
CONFERENCE
1989 record: 9-6-0
1989 record: 10-5-0
21
Tampa Bay
23 31
Seattle
7
35
New Orleans
34 42
wild card. If Cleveland beats Houston, the Los
at Washington
37
38.
at L.A. Rams
41 28.
San Francisco
ATLANTA
38
Angeles Raiders. Cincinnati and Indiananolis
23
Atlanta at Milw.
21
13
THE WHITE HOUSE
WASHINGTON
January, 8, 1989
MEMORANDUM FOR THE CHIEF OF STAFF
BOBBIE KILBERG
DAVID BATES
SICHAN SIV
ANDREW CARD
PATTY PRESOCK
JAMES CICCONI
LINDA CASEY
DAVID DEMAREST
WILLIAM KRISTOL
MARLIN FITZWATER
TIMOTHY MCBRIDE
BOYDEN GRAY
ROSE ZAMARIA
FRED MCCLURE
PAUL BATEMAN
BONNIE NEWMAN
DAVID VALDEZ
ROGER PORTER
BILLY DALE
SIG ROGICH
JAY ALLISON
BRENT SCOWCROFT
JOHN HERRICK
CHASE UNTERMEYER
LAURIE FIRESTONE
SUSAN PORTER ROSE
PEGGY SWIFT
ED ROGERS
JEAN LAMB
JOE HAGIN
DEB ANDERSON
JIM WRAY
USSS/PPD OPS
CHRISS WINSTON
WHCA AUDIO/VISUAL
WHCA OPERATIONS
MEDICAL UNIT
PRESIDENTIAL
DOCUMENTS
THROUGH:
SIG ROGICH
ASSISTANT TO THE PRESIDENT FOR
PUBLIC AFFAIRS AND INITIATIVES
FROM:
JOHN G. KELLER, JR. JGK.
DEPUTY ASSISTANT TO THE PRESIDENT AND
DIRECTOR OF PRESIDENTIAL ADVANCE
SUBJECT:
TRIP OF THE PRESIDENT TO CINCINNATI, OHIO ON
JANUARY 12, 1990
For your use and planning purposes, the attached is a preliminary
outline schedule for the Trip of the President to Cincinnati,
Ohio. Please keep in mind that the following information has not
been finally approved and is subject to change.
Attachments
PRELIMINARY OUTLINE SCHEDULE
Friday, January 12, 1990
GUEST AND STAFF INSTRUCTIONS:
9:40 am
Vans depart West Basement
en route Andrews Air Force Base
Distinguished Visitors Lounge.
10:10 am
Those with own transportation
should arrive Andrews Air Force
Base Distinguished Visitors
Lounge at this time.
10:25 am
MARINE ONE departs White House en route Andrews
Air Force Base.
(Flying Time: 10 Minutes)
10:35 am
MARINE ONE arrives Andrews Air Force Base.
10:40 am
AIR FORCE ONE departs Andrews Air Force Base en
route Cincinnati, Ohio.
(Flying Time: 1 Hour 15 Minutes)
(Time Change: None)
(Interchange: TBD)
11:55 am
AIR FORCE ONE arrives Greater Cincinnati Airport.
12:00 pm
MARINE ONE departs Greater Cincinnati Airport en
route Union Station Landing Zone.
(Flying Time: 15 Minutes)
12:15 pm
MARINE ONE arrives Union Station Landing Zone.
12:20 pm
MOTORCADE departs Union Station Landing Zone en
route Taft High School.
(Drive Time: 10 Minutes)
12:30 pm
MOTORCADE arrives Taft High School.
*
BRIEFING ON CINCINNATI YOUTH
COLLABORATIVE AND LUNCHEON
- Photo Opportunity at Beginning
(12:35 pm - 12:55 pm)
*
DISCUSSION WITH MENTOR GROUP
- Press Pool
(1:00 pm - 1:30 pm)
*
TAFT HIGH SCHOOL STUDENT ASSEMBLY
- Open Press
( (1:35 35 pm - 1:50 pm)
2:05 pm
MOTORCADE departs Taft High School en route
Hyatt Hotel.
(Drive Time: 10 Minutes)
2:15 pm
MOTORCADE arrives Hyatt Hotel.
*
STAFF PHOTO
- Official Photographer Only
(2:20 pm - 2:35 pm)
*
ADDRESS CINCINNATI CHAMBER OF COMMERCE
- Open Press
(2:40 pm - 3:05 pm)
3:15 pm
MOTORCADE departs Hyatt Hotel en route
Union Station Landing Zone.
(Drive Time: 10 Minutes)
3:25 pm
MOTORCADE arrives Landing Zone.
3:30 pm
MARINE ONE departs Union Station Landing Zone en
route Greater Cincinnati Airport.
(Flying Time: 15 Minutes)
3:45 pm
MARINE ONE arrives Greater Cincinnati Airport.
3:50 pm
AIR FORCE ONE departs Cincinnati, Ohio en route
Andrews Air Force Base.
(Flying Time: 1 Hour 5 Minutes)
(Time Change: None)
(Interchange: TBD)
4:55 pm
AIR FORCE ONE arrives Andrews Air Force Base.
5:00 pm
MARINE ONE departs Andrews Air Force Base en
route Camp David.
(Flying Time: 35 Minutes)
5:35 pm
MARINE ONE arrives Camp David.
JOBS
THE CINCINNATI ENQUIRER
SATURDAY, SEPTEMBER, 23, 1989
Cincinnati It's Blue
®
BUSINESS
Cincinnati drives Ohio job growth
One in four new jobs created here; reinforces area as 'hot spot'
BY DICK KIMMINS
John P. Williams Jr., president
ilton and adjacent Ohio counties,
The growth in the local manu-
following summer vacations and
Gannett News Service
of the Greater Cincinnati Cham-
total employment in metropolitan
facturing sector is more lucrative
model changeover layoffs, report-
COLUMBUS, Ohio - Nearly
ber of Commerce, said he was
Cincinnati rose to 736,800 last
to the area's economy. The state
ed the state.
one out of four new jobs created
pleased by the report but not
August. That is 31,700 more
measurers not only total job ex-
in Ohio between August, 1988,
really surprised. "It's exciting
working men and women in the
pansion, but wage and salary
and August, 1989, was created in
and it's reinforcing," he said,
area than there was in August
scales as well.
The growth in non-manufac-
metropolitan Cincinnati, the Ohio
citing the area's economic
1988.
Manufacturing wages aver-
turing employment to a record
Bureau of Employment Services
growth in all sectors.
Most of the annual job growth
aged $502 a week in August
3.69 million men and women was
reported Friday.
"When you look at the eight
measured by the state in metro-
while retail trade workers aver-
due to continued expansion in the
northeastern states (of the Mid-
politan Cincinnati has been in the
aged weekly wages of $174. Re-
service sector and the end of a
According to the regular
west), Cincinnati has been shown
service sector, where 9,700 new
tail wages have increased 2.9%
monthly survey of 10,000 busi-
labor dispute in the coal mining
to have the second most-diverse
jobs have been created in the
from August, 1988, while aver-
nesses conducted by the state
industry.
economy. Chicago is first; Cincin-
period by hotels, business serv-
agency, there were 4.8 million
age manufacturing wages have
nati second. Diversity plays to
ices, recreation centers and hos-
increased 5.4%.
Ohioans employed last August, an
growth."
pitals.
Most of the growth statewide
The fastest rate of growth
increase of 127,000 jobs, or
"From a development point-
Retail stores added 8,200 em-
between July and August this
between August a year ago and
2.7%, from the same period a
of-view, Cincinnati is one of the
ployees and manufacturing com-
year, an increase of 20,000 jobs
last August was in the construc-
year earlier.
two hot spots in the state, along
panies added 3,300 workers,
across Ohio, was related primari-
tion trades. Total employment in
The August report set a re-
with Columbus."
while construction trades count-
ly to automobile production as
that sector grew 8% in the peri-
cord for total Ohio employment.
In a companion study of Ham-
ed 3,500 more employees.
workers returned to their plants
od.
like
America
Ohio
Cincinnati It's Blue
Labor Market
THE BLUE CHIP CAMPAIGN FOR ECONOMIC DEVELOPMENT
A program for the eight-county region of Southwestern Obio, Northern Kentucky, and Southeastern Indiana
High productivity, low labor
turnover, and few work stoppages
characterize the 894,500 people in
the workforce in this region of 1.7
million.
The Greater Cincinnati Region
is ranked one of the ten most
diversified economies in the U.S.
Employment has experienced
significant gains in the last 15 years.
Colleges, universities, technical
schools and vocational schools help
to provide the diversity of skilled
workers needed to support business
growth.
The University of Cincinnati
graduates 600 engineering students
each year, and the Cincinnati
Technical College graduates 600-700
students each year with 99% job
placement.
Thirty-five area school districts
participate in the Great Oaks
Total Labor Force
Vocational School Program, which
1988
1987
1986
1985
1984
provides education for 3,000
Total Civilian Labor Force
894,500
873,100
855,400
836,200
819,700
Employed
847,300
820,300
798,400
773,300
750,800
eleventh and twelfth grade students.
Unemployed
5.7%
6.3%
7.1%
8.1%
8.7%
Great Oaks Adult Education Program
The above figures are for the 8-county Consolidated Metropolitan Statistical Area.
trained 70,000 adults in cooperation
Source: Ohio Bureau of Employment Services
with local business and industry.
In addition, an outstanding
This excellent availability of both
network of high schools, including
skilled and semi-skilled workers
Employment-Cincinnati PSMA*
one of the nation's premier alternative
makes Greater Cincinnati a natural
school programs, graduates high
for manufacturing, distribution and
GOVERNMENT (12.6%)
CONSTRUCTION (4.5%)
caliber students into the workforce.
warehousing.
MFG (20.7%)
SERVICES
Cincinnati vs. United States
(25.1%)
Comparative Analysis of Labor Force Productivity
TRANS & PUB UTIL
+25.2%
$46.83)
(5.4%)
$45.00
Greater Cincinnati's worker productivity
is high. A comparison of manufacturing
$40.00
industries in the Greater Cincinnati area
versus the U.S. indicates the value
FIN,INS & RL EST
Cincinnati
added per production worker man-hour
(6.0%)
WHLSALE & RETAIL
$35.00
(25.7%)
exceeds the nation's performance by
$30.00
over 25%. It's like getting two free hours
1988
1987
1986
+23.1%
of output every day.
1985
Non-agricultural
700,200
677,700
650,800
628,100
$25.00
United States
Manufacturing
144,500
146,000
147,700
147,100
Sources: Census of Manufacture, U.S. Department of
Services
175,800
168,000
155,900
147,100
$20.00
Commerce, Bureau of Census, 1972, 1977, 1982.
Wholesale/Retail
179,600
170,800
164,400
159,300
+26.4%
*Cincinnati PMSA includes Hamilton, Warren and Clermont Counties in
$15.00
Ohio; Boone, Campbell and Kenton Counties in Kentucky; and
Dearborn County in Indiana
$10.00
Source: Ohio Bureau of Employment Services
1972
1977
1982
Labor Factors
Approximately 17% of the U.S.
areas. Regional information
workforce is unionized and this
published by The Bureau of National
figure applies to the workforce in
Affairs (BNA) indicates that currently
Greater Cincinnati.
the North Central Region of the U.S.
Work stoppages/strikes and
(which includes Greater Cincinnati)
absenteeism/turnover rates are no
has lower work stoppage rates than
longer published for metropolitan
the Northeast, South and West. (1988).
Major Employers
General Electric-
Aircraft Engine Business Group
17,600
Cincinnati Public Schools
5,500
Procter & Gamble Co.
13,400
Hamilton County
5,205
University of Cincinnati.
11,013
Cincinnati Milacron Inc.
5,000
U.S. Government
10,302
U.S. Postal Service
4,698
Kroger Co.
10,000
Cincinnati Gas & Electric Co
4,600
City of Cincinnati
6,879
Bethesda Hospital.
4,300
Armco, Inc
6,000
Cincinnati Bell Telephone Co
4,100
Entry Wage Rates
Unskilled
$3.35- 5.85
Maintenance Mechanic
$10.03
Semiskilled
4.00- 7.00
Precision Assembler Bench
8.41
Skilled
5.00-12.50
Electronic Assembler
5.81
Secretary
6.25
Welder, Arc
6.15
Machinist
6.91
Drafter, Mechanical
5.83
Material Handler
7.34
Drafter, Electrical
7.53
General Laborer
6.80
Electronic Technician
8.96
Note: Job orders that have been filled through the local Ohio Bureau of Employment
Services 6/87-6/88 in Hamilton, Clermont and Warren Counties. No fewer than 10
placements. Average wage calculated by totalling hourly wage rates of all placements for
specific job and dividing by number of placements. Source: Ohio Bureau of Employment Services
Comparative Wage Index
(U.S. Average = 100)
All Industries
Office
Data
Skilled
Unskilled
Area
Clerical
Process.
Mainten.
Plant
Atlanta
100
102
99
90
Chicago
101
100
108
120
Cincinnati
98
93
98
102
Cleveland
97
94
104
108
Detroit
113
104
111
132
Kansas City
98
93
101
98
Louisville
93
92
104
103
Minneapolis
95
96
106
110
Portland
101
97
104
107
St. Louis
95
97
103
101
Source: U.S. Department of Labor-1987
Greater Cincinnati Chamber of Commerce
120 West Fifth Street, Suite 300 . Cincinnati, Ohio 45202-2785
(After July 1, 1989: 300 Carew Tower
441 Vine Street
Cincinnati, Ohio 45202-2812)
Telephone: 513/579-3100 FAX: 513/579-3102
©Copyright 1989, Greater Cincinnati Chamber of Commerce
(AP 5/89) Printed in U.S.A.
Cincinnati
Transportation
THE BLUE CHIP CAMPAIGN FOR ECONOMIC DEVELOPMENT
A program for the eight-county region of Southwestern Obio, Northern Kentucky, and Southeastern Indiana
Greater Cincinnati is one of the most
strategically located metropolitan
regions for manufacturers and other
businesses in the United States.
Consider this:
Within 300 miles of Cincinnati is:
19% of the nation's population
17% of the nation's manufacturing
establishments
25% of the nation's value added by
manufacturing
Within 600 miles of Cincinnati is:
62% of the nation's population
65% of the nation's purchasing
power
65% of the nation's manufacturing
establishments
71% of the nation's value added by
manufacturing
Air, highway, river and rail
transportation all combine to give
Greater Cincinnati ready access to all
an annual growth rate of about 10%.
for international connections of any
of the factors mentioned above.
The airport is one of five major
city in the U.S.
hubs for Delta Air Lines and the
Twelve major national and regional
Air Transportation
home base for Comair, the "Delta
airlines provide Cincinnati with 660
The Greater Cincinnati International
Connection."
daily and weekday arrivals and
Airport is located just 15 minutes
Delta's present nonstop Cincinnati-
departures with nonstop service to
from downtown Cincinnati. It is
to-London and Cincinnati-to-
70 U.S. cities and Toronto.
one of the nation's fastest growing
Frankfurt flights (beginning June,
Three cargo air carriers-
airports, servicing over eight million
1989) have helped make Cincinnati
DHL (with Cincinnati as one of its
passengers in 1988, and experiencing
one of the most convenient points
two national hubs), Evergreen
16
International and Wright
International Express-provide
service to 52,000 markets in 183
countries with door-to-door delivery.
Warren
The airport is currently
Butler Co.
Hamilton Co.
undergoing a period of expansion,
Forest Park
with $70 million of airport
Dearborn Co.
Tri County
Warren Co.
Clermont Co.
Blue Ash
construction completed in 1987 and
Montgomery
1-275
$95 million in construction in 1988.
Cross County
Indiana
0140
Kenwood
A new 10,000 foot north-south
I-74
1-275
runway is under construction and
scheduled for completion in 1990.
Mid- Town
32
The Interstate System
Downtown
Hamilton
Cincinnati
Three interstate expressway
1-275
Ohio
Downtown
Lunken
N.Ky
Airport
Ave.
Kentucky
systems-1-75, I-71 and I-74-link
Greater
Ohio
Cincinnati
Cincinnati with the rest of the
Int'l
Airport
Campbell Co
Co. Clermont
1-275
nation. I-275 and I-471 are the
region's interstate connectors.
27
These interstates are home to
Campbelly 8
1-71
Greater Cincinnati's 60 interstate
Boone
Kenton So
Campbell
motor freight carriers who provide
service to markets in all the
mainland states. Twenty major
second-day service.
hump yard is considered one of
markets receive one-day service from
The U.S. Post Office Bulk Mail
the most modern and efficient
the carriers, with another 30 getting
Distribution Center in Cincinnati,
classification facilities, blending rail
one of 12 regional facilities in the
and motor transportation into an
nation, enables mail to be delivered
intermodal network with service to
overnight to most areas of the U.S.
the U.S. and abroad.
Its location in Greater Cincinnati
attests to the region's strength as a
River Transportation
major distribution center.
More than 175 million tons of cargo
are transported annually by Ohio
Railroads
River barges. Greater Cincinnati is
The Greater Cincinnati area is served
home to two major barge and
by three major railroad systems-the
towing companies.
CSX Corporation, the Norfolk South-
Additionally, more than 30 out-of-
ern Corp., and Conrail. In addition,
town barge lines link Cincinnati with
the Indiana and Ohio Railroad
the nation.
provides service in Southeastern
Ten public river terminals located
Indiana and Southwestern Ohio.
along the 30 miles of the Port of
More than 110 freight trains arrive
Cincinnati shoreline provide ware-
and depart Cincinnati railroad yards
housing, open storage, land tanks,
daily. The Chessie System's $71
silos, cranes, and fleeting.
million Queensgate computerized
Greater Cincinnati Chamber of Commerce
120 West Fifth Street, Suite 300 . Cincinnati, Ohio 45202-2785
(After July 1, 1989: 300 Carew Tower 441 Vine Street
Cincinnati, Ohio 45202-2812)
Telephone: 513/579-3100 FAX: 513/579-3102
©Copyright 1989, Greater Cincinnati Chamber of Commerce
(AP 5/89) Printed in U.S.A.
Bicentennial flashback
the
INNOVATION
A sketch from an 1860 Harper's Weekly shows the cooling and
drying portion of hog butchering in Cincinnati. The magazine
described this as "A familiar scene in 'Porkopolis.'
City reigned as 'Porkopolis'
Historical Society
BY RONNIE AGNEW
name to Bloody Run.
The Cincinnati Enquirer
When Nicholas Longworth
Throughout most of the 1800s,
donated land adjacent to the city
Cincinnati had quite a reputation as
for Eden Park, the slaughterhouses
the nation's largest meat-packing
packed up and moved to Brighton
city. And packers' ledgers were
and the Mill Creek Vailey, to be
bursting with plenty of profits.
closer to the canal and the
it dow know
So successful was the meat
stockyards.
packing industry here that the city
During the 1832-33 season,
was given the nickname
85,000 hogs were packed in
"Porkopolis" by banker George
Cincinnati plants, and by 1850,
Jones in his letters to London
Cincinnati was the principal hog
correspondents.
market of the world. Brighton
Richard Fosdick, who opened a
became the focal point of the hog
slaughterhouse in 1810, was given
industry.
credit for the boom in the industry.
In some years, more than
the
After being warned that pork and
500,000 hogs were slaughtered,
beef couldn't be cured in
and Cincinnati's hams routinely
Cincinnati's climate, he continued
were the main course at
his experiments and eventually
fashionable hotels, resorts, wealthy
discovered the rock-salt process
homes - even at the White
for curing meat.
House.
In 1815, only five years after
At the height of the meat
the opening of the city's first
packing industry, hogs ran in the
packing house, Cincinnati was
streets.
exporting about $50,000 worth of
When Cincinnati was the
meat, 95% of it pork.
world's center of packing trade, it
By 1826, many packers were
had several hundred
clustered along Deer Creek (now
slaughterhouses.
Eggleston Avenue) and processing
The decline of the local industry
houses were scattered all over the
was gradual. Not until 1885 did
city. The first slaughterhouses
Chicago's meat production surpass
were in the valley between Mount
that of Cincinnati.
Auburn and Walnut Hills along
After Chicago took over in the
Deer Creek. The packing houses
1880s, the local industry fell to
dumped their offal into the creek,
$10 million, the lowest figure in 50
causing residents to change its
years.
The
grounder
Heritage Foundation
No.
704
The Heritage Foundation
214 Massachusetts Avenue N.E. Washington, D.C. 20002 (202)546-4400
The Thomas A. Roe Institute for Economic Policy Studies
WHITE HOUSE LIBRARY
May 2, 1989
AND
JUN
RESEARCH CENTER
CAPITAL GAINS TAXATION:
THE EVIDENCE CALLS FOR A REDUCTION
WHITE 12 RESEARCH HOUSE 9 13 RATHS NN CENTER BRARY
89.
By Ronald Utt
John M. Olin Fellow
INTRODUCTION
How to tax capital gains remains one of the most controversial issues
confronting economic policy makers. Though a number of countries, like the
Republic of Korea, do not tax capital gains at all, the United States approach
has been a roller coaster. In the mid-1970s, for example, capital gains were
taxed as high as 35 percent; this top rate was cut to 28 percent in 1978 and cut
further to 20 percent by the 1981 Reagan tax reduction. Then the pendulum
swung abruptly, and surprisingly, back in the comprehensive overhaul of the
tax code in 1986. As a result, capital gains today are taxed at the same rate as
ordinary income. This rightly alarms many economists because a high capital
gains tax discourages investment, savings, and entrepreneurial risk-taking.
Without these, the U.S. will become economically less competitive in the
world.
Bipartisan Support. The Bush Administration, too, is alarmed by the
economic disincentives spurred by today's high tax on capital gains. To
remedy this, George Bush is proposing to reduce the maximum tax on certain
capital gains from the current 33 percent to 15 percent. This call for a lower
rate on capital gains is echoed in Congress, where nearly a dozen capital
gains rate reduction bills have been introduced by Republicans and
Democrats. These proposals have bipartisan support. Yet the prospect of
capital gains rate reductions has generated intense opposition from a variety
of sources - notably organized labor.
Note: Nothing written here is to be construed as necessarily reflecting the views of The Heritage Foundation or as an
attempt to aid or hinder the passage of any bill before Congress.
Opponents of capital gains rate reductions attempt to build their case on
three arguments:
1) Equity and Fairness - Capital gains preferences, critics say, favor the
wealthy by providing a disproportionate share of the benefits to upper
income taxpayers.
2) Cost - A capital gains tax rate reduction is said to increase the federal
deficit because it will reduce tax revenues.
3) Effectiveness - A lower capital gains rate, critics argue, will have little
affect on the decisions of individuals to invest or engage in entrepreneurial
activity.
Each of these criticisms is challenged by supporters of capital gains tax
reductions. They marshall an extensive collection of facts and research to
demonstrate that the opponents' positions either are exaggerated or simply
untrue. In particular, the two capital gains tax rate increases and the two tax
decreases since 1969 provide solid evidence how individuals, businesses, and
markets respond to such changes. What the last two decades reveal is that
investors, businesses and venture capital markets are sensitive to changes in
the capital gains tax rate. The data show that when rates are raised, venture
funding slows or declines; conversely, when rates are cut, the venture capital
market spurts.
Many opponents of the tax cut will concede that the cut will create
economically useful incentives, but they worry about the ostensible loss of tax
revenues. Studies reveal, however, that these concerns are unwarranted.
Detailed econometric studies of the record since World War II indicate that
capital gains tax rate cuts actually generate tax revenues by encouraging
individuals to invest in taxable assets, unlock realized and taxable gains and
redeploy capital efficiently - generating taxable income.
Evenly Spread Gains. The evidence also indicates that the fairness
concerns are misplaced. When income is properly measured, the data reveal
that capital gains realizations are spread rather evenly throughout different
income levels and do not accrue only to the rich. Indeed, households earning
less than $20,000 accounted for more than a quarter of all capital gains
reported by taxpayers in 1985.
Lawmakers considering legislation to reduce taxes on capital gains should
examine this evidence carefully. Critics of tax cut proposals will level charges
that a cut would be bad for the economy and the budget, and unfair to
moderate and low-income taxpayers. Yet the data refute them, suggesting
strongly that a cut would boost the economy while spreading tax benefits to
all major income groups.
WHY TAXING CAPITAL TROUBLES MANY ECONOMISTS
The debate over the wisdom of cutting taxes on capital gains begins with
the very idea of whether the realized appreciation of any capital asset should
2
be taxed. Many economists contend that such gains should not be taxed at all
because they reflect either inflation or the market's assessment that a
company's (or asset's) future earnings will be higher.
Inflation Penalty. If the gain is in part due to inflation, then a capital gains
tax serves to confiscate existing wealth accumulated from past income that
already has been taxed at least once. Moreover, the tax, or penalty for
inflation, is imposed only when the asset is converted-from one form to
another, thereby discouraging capital mobility and the efficient allocation of
scarce resources.
This inflation penalty is not trivial. Under circumstances similar to those
occurring in the 1970s and early 1980s, it could lead to very high implicit tax
rates. For example, under current law, an investment providing a real return
of 5 percent in an economy with 8 percent inflation would be subject to an
effective tax rate of 57.5 percent on real earnings if sold after five years.
1
Economic columnist Warren Brookes noted that a 1970 investment in stock
that was sold in 1988 would pay an effective tax rate of 339 percent on the net
real gain because the rate of inflation over the period was almost as great as
the appreciation in the stock market. 2
Triple Taxation. When the gains reflect the market's reevaluation of the
company's future profit potential, then the taxation of such gains, when
realized, constitutes the triple taxation of income from capital: first when it is
earned by the corporation and paid in corporate income tax; next when paid
out as dividends and taxed at the shareholder's personal rate; and a third time
when the gains are realized through the sale of the shares.
The tax code in the past has attempted to compensate for market
reevaluation by providing special treatment for capital gains. For example:
residential housing, which represents the single biggest investment for most
households, is largely free of capital gains tax as long as the proceeds from
the sale are reinvested in another residence, or if they represent a one time
cashing out of the investment close to retirement. Similarly, professional
investors in income-producing real estate are able to avoid capital gains taxes
through a technique known as a "tax free exchange of property.
Investments in financial assets, however, have never been permitted this
privilege, although the capital gains exclusion, which was an integral part of
the tax code until 1987, reflected an inadequate attempt to do so.
Absent appropriate tax exclusions, the gauntlet of taxation faced by
investors discriminates against capital income, discourages savings and
investment, and harms U.S. international competitiveness by raising the cost
of capital for Americans relative to that of foreign competitors, many of
1 James M. Poterba, "Venture Capital and Capital Gains Taxation," National Bureau of Economic Research
Working Paper No. 2832, January 1989, p. 17.
2 Warren Brookes, "Fairness, Envy and Capital Gains," The Washington Times, March 14, 1989.
3 This process allows certain investors to postpone the taxation of capital gains in real estate by immediately
reinvesting the proceeds of the sale in another income-producing property.
3
whom fully exempt capital gains from income taxes. In fact, Belgium, Italy,
Japan, The Netherlands, Hong Kong, Malaysia, Singapore, South Korea and
Taiwan exempt all capital gains from income taxation, while long-term (six
months) capital gains in Germany are exempt. Meanwhile, effective capital
tax rates in the U.S. have been increasing. The January 1989 Economic Report
of the President calculates that the effective tax rates on investment in
equipment due to the Tax Reform Act of 1986 quadrupled from 10 percent to
39.6 percent.
effect on competiteveness ?
THE IMPACT OF CAPITAL TAXATION ON INVESTMENT DECISIONS
Advocates of a reduced tax rate or an exclusion for capital gains contend
that these changes would increase savings and investment by decreasing the
cost of capital to a firm and increasing the return on investment to the
investor. At present, the gauntlet of corporate income taxes, the taxation of
capital gains, and personal income taxes creates a large gap between what
business earns on an investment and what the individual shareholders
ultimately receive. This gap often is referred to as the "tax wedge." Reduced
tax rates would encourage individuals to acquire a financial asset by raising
the after tax rate of return on the asset. Such rate reductions would make
investments in new and growing firms relatively attractive because most
benefits of such investments would be in the form of capital appreciation
rather than income paid in taxable dividends.
For the firm, a lower capital gains rate would reduce the effective cost of
capital and encourage the acquisition of productive assets. For the new and
growing firm, with limited income but unlimited promise, a lower rate or
capital gains exclusion would encourage investors to take risks by offering the
opportunity for a potentially higher reward.
What the Data Reveal
Several studies and surveys on the affect of capital gains rates on the
willingness of investors to acquire shares in new firms support the view that
rate reductions have stimulated venture capital market growth. Although
some analysts challenge this, arguing that a substantial portion of venture
funding comes from non-taxed sources such as pension funds, the surveys and
studies do not support this and instead indicate that the individual investor is
an important participant in the venture capital market.
In a 1988 study by economists John Freear of the University of New
Hampshire and William Wetzel of Babson College, questionnaires were sent
to the chief executive officers of 1,073 technology-based ventures founded in
4
New England between 1975 and 1986. 4 The results from the 284 firms
responding indicate:
1) More new technology-based firms raise equity-type capital from private
individuals than from any other outside source, including venture capital
firms.
5
2) Private individuals are the primary source of outside equity-type capital
for new technology-based firms when total funds raised each time the firm
goes to the financial market is under $1 million.
3) Private individuals tend to invest earlier in the life of a new
technology-based firm than do 7 other outside sources of equity type capital,
including venture-type 6 funds.
Significantly, an analysis of the ebb and flow of venture capital over time
indicates that there is a close correlation between the availability of such
funds and changes in the capital gains tax rate. Table 1, which presents the
trend in Initial Public Offerings (IPOs) as one measure of venture capital
raised in organized securities markets, illustrates the sensitivity of new
offerings by firms going public to the capital gains tax rate. 8
Soaring Capital. As the table indicates, when rates increased between 1969
and 1978, initial public offerings declined significantly, from an annual
average of nearly $2 billion between 1969 and 1972 to an average of just $225
million between 1975 and 1978. But following the major rate reductions in
1979 and again in 1982, the capital raised through IPOs soared, stalling at a
plateau beginning in 1986-1987 when the rate was raised from 20 percent to
28 percent under the 1986 Tax Reform Act. Since then the amount raised has
declined slightly and likely will continue this trend through 1989.
Table 2 illustrates the same connection between capital formation and
capital gains tax rates using figures from the venture capital market. As in
the case of IPOs, the venture capital market has expanded when capital gains
tax rates are cut, and has declined or stagnated when rates are increased.
4 John Freear and William E. Wetzel, "Equity Financing for New Technology-Based Firms," paper prepared for
the Babson Entrepreneurship Research Conference, Calgary, Alberta, May 1988.
5 Equity-type investments are those that provide a share of the ownership to the investor and a right to
participate in the profits.
6 "Venture-type" funds are professional investment companies that specialize in investing in promising new
companies.
7 The authors' hypothesis that total equity type capital raised by these firms from private individuals exceeds
the total capital raised from other outside sources, including venture capital funds, was not validated by the
study. Indeed, the study found that the firms in the sample raised five times more capital from the funds than
they did from individuals. Although many of these funds are tax-exempt, many of their investors are not, and the
profits and gains of these funds are passed on to the investors who are taxed as individuals or corporations
according to whether the earnings were ordinary income or capital gain.
8 IPOs refer to new capital issued through initial public stock offerings of corporation. This capital flows largely
to relatively young rapidly growing companies.
9 Venture capital here refers to funds raised by companies that specialize in investing in the shares of new
businesses.
5
Opponents of capital gains tax relief argue that such correlations merely
are coincidence, not causation. They contend that the growth in the venture
capital market really reflects the development and commercialization of new
n, Italy,
technologies, or the general improvement in equity markets that occurred
orea and
during the same period.
rm (six
: capital
Table 1
nic Report
New Capital Raised Through Initial Public Stock Offerings (IPOs)
n
percent to
Capital Gains
Number of IPOs
Dollars Raised
Tax Rate
(billions)
ONS
27.50%
1,026
$2.61
28.91
358
0.78
ntend
29.82
391
1.66
ing the
30.50
568
2.72
e
30.91
100
0.33
tion of
31.55
15
0.05
what
;
31.81
15
0.27
educed
33.49
34
0.23
aising
33.77
40
0.15
ake
34.13
45
0.25
st
25.97
81
0.51
ion
26.67
237
1.40
24.81
448
3.22
st of
V and
20.00
222
1.45
or
20.00
884
12.62
ing the
20.00
354
3.9
20.00
362
8.6
20.00
719
22.4
28.00
541
24.2
28.00
280
23.4
that
oing Public: The IPO Reporter (Philadelphia, Pennsylvania) and the U.S. Treasury.
gh
Yet such alternative explanations of the correlation are not, of course,
re
necessarily independent of capital gains tax rates, because changes in the
ys and
capital gains tax rates have a direct influence on these other factors by
tor is
improving the incentives in the market and encouraging individuals to invest
in shares. Lower capital gains tax rates increase the incentive to invest, and
this increased demand for assets raises the price of financial assets, such as
sent
common stocks. Similarly, when investor interest is increased in securities
ed in
offering capital gains potential, new and growing firms capable of providing
such potential will be encouraged to bring their shares to market.
Comparative observations by M.I.T. economist James Poterba in his recent
6
study for the National Bureau of Economic Research offer some support for
this view. According to Poterba:
In the decade between 1976 and 1986, the stock of
commitments to the U.S. venture capital industry rose at a
compound annual rate of 17.1%. Measured in constant
dollars, the pool of venture capital funds in 1986 was 4.85
times as large as the pool one decade earlier. In Canada, by
comparison, the annual growth rate of venture funds was
only 5.7%, so that in 1986 the pool of funds was 1.75 times
as large as in 1976. While international comparisons are
difficult because of problems in controlling for institutional
differences, the finding that venture capital investment
grew more rapidly in the United States, the country that
reduced its capital gains tax rate, is further supporting
evidence for a potential link between capital gains taxation
and venture capital. 10
Elsewhere in his study, Poterba presents additional information to
underscore this relationship.
Since the Tax Reform Act of 1986, which raised individual
capital gains tax rates from 20% to 28% (or in some cases
33%) venture funding has been stable. Total revenue
commitments increased six percent between 1986 and 1987,
and preliminary 1988 data suggest that this level has at least
been maintained through 1988. The recent growth of
venture capital investment in other nations, however,
suggests that the post-1986 U.S. performance may reflect a
negative effect of tax reform. In the U.K., the flow of
venture capital commitments nearly doubled between 1986
and 1987. In Canada, venture funding rose even more
dramatically, from $209 to $800 million. While the growth
of venture capital in Canada and Britain may in part reflect
the maturation of their venture capital industries, they
provide a useful contrast to the recent U.S. experience.
11
THE IMPACT OF CAPITAL GAINS TAXES ON TAX REVENUES
Although the evidence strongly indicates that lower capital gains rates
encourage individuals to fund risky ventures, many policy makers still
question whether the benefits are worth the potential losses in tax revenues
due to a lower tax rate on capital gains. Skeptics also believe that a lower rate
of taxation bestows disproportionately greater benefits on higher income
individuals than on moderate income Americans.
10 Poterba, op. cit., pp. 4-5.
11 Ibid., pp. 2-4.
7
Table 2
Supply of Venture Capital Financing, 1969-1987
Year
Net New Commitments to Venture
Maximum Personal Tax Rate
Capital Firms
on Capital Gains
(billions)
(percent)
1969
$ 505.7
27.50
1970
271.8
28.91
1971
251.8
29.82
1972
156.9
30.50
1973
133.2
30.91
1974
124.2
31.55
1975
19.8
31.81
1976
93.3
33.49
1977
68.2
33.77
1978
978.1
34.13
1979
449.2
25.97
1980
961.4
26.67
1981
1,627.8
24.81
1982
2,118.6
20.0
1983
5,097.7
20.0
1984
4,590.0
20.0
1985
3,502.3
20.0
1986
4,650.1
20.0
1987
4,900.0
28.0
1988
28.0
Source: Column 1, Venture Economics, Venture Capital Yearbook 1988, p. 17. Entries as presented in 1987
dollars, deflated using the GNP deflator. Column 2, U.S. Treasury.
Proponents of a lower capital gains rate counter that, contrary to the
intuitively plausible proposition that rate cuts reduce revenues, experience
demonstrates just the opposite: every instance of a capital gains rate cut has
been followed immediately by a significant increase in capital gains
realizations (net capital gains proceeds received from the sale of assets and
reported to the Internal Revenue Service) and by higher taxes paid on those
gains. By lowering the tax cost of selling assets, and thereby increasing the
after-tax yield on such assets relative to other sources, lower capital gains tax
rates can lead to greater capital gains realizations and increased total tax
payments by the owners of those assets.
Stimulating Investment. Lower capital gains rates, experience shows, also
increase the attractiveness of such assets relative to other sources of income
or consumption. This encourages more purchases of such assets, which bids
up their prices, leading to higher realizations of capital gain when the assets
are sold - both because there are more investors now holding such assets and
because the increased demand raises their price and profits. Again, this'rise
8
in value and volume can mean higher tax payments even at a lower tax rate.
And to the extent that such tax rate reductions stimulate more investment,
business formations and entrepreneurial activity, then general income tax
revenues also would rise.
What the Data Reveal
As Table 3 indicates, the rate cuts of both 1979 and 1982 were followed by
large increases in reported capital gains and by increases in capital gains tax
payments. Conversely, the tax rate increase enacted in 1969 was followed by
declining realizations and lower capital gains tax revenues. Indeed, the $5.9
billion of capital gains revenues received in 1968 was not exceeded until
1976.
Some opponents of a cut in capital gains tax do admit that a rate reduction
does boost immediate tax yields, but then they argue that the observed
increase merely reflects a change in the timing of realizations that would
ultimately occur at higher tax rates. Today's tax gains from a cut, they
contend, simply would be at the expense of higher tax payments in the future
under current rates.
Complex, Arcane Research. The primary focus of the debate over the
capital gains tax is the predicted effect on tax revenues. As the debate has
become more intense, the economic research on the subject has become
more extensive and systematic, but unfortunately also more complex and
arcane. Nonetheless, a review of the most recent studies suggests that the
weight of evidence is shifting in favor of those analysts who argue that
revenues will not decline if rates are cut.
A 1987 review of the academic literature by Harvard economist Lawrence
B. Lindsey concludes that it is extremely unlikely that the capital gains tax
increase 12 in the Tax Reform Act of 1986 will produce any additional tax
revenue.
Most likely, he says, it will produce less revenue than the much
lower tax rates of the old law.
Seeking the Best Rate. According to Lindsey, all but one of the academic
studies he reviewed predict 1987-1991 revenue losses in the range of $27 to
$105 billion when compared with what would have occurred under prior law.
Lindsey notes that these same academic studies imply that the capital gains
tax rate that would yield the most revenue lies in the range of 9 percent to 21
percent. This finding has led most of the sponsors of a rate cut to settle on a
15 percent rate.
12 Lawrence B. Lindsey, Capital Gains Taxes Under the Tax Reform Act of 1986: Revenue Estimates Under
Various Assumptions (Cambridge, Mass.: National Bureau of Economic Research, 1987.
9
Table 3
Capital Gains Realizations and Tax Revenues
1954-1985
Year
Capital Gains
Tax Revenue
Marginal Tax Rate
Realizations
(billions of $)
(percent)
(billions of $)
1954
7.157
1.010
25.00
1955
9.881
1.465
25.00
1956
9.683
1.402
25.00
1957
8.110
1.115
25.00
1958
9.440
1.309
25.00
1959
13.137
1.920
25.00
1960
11.747
1.687
25.00
1961
16.001
2.481
25.00
1962
13.451
1.954
25.00
1963
14.579
2.143
25.00
1964
17.431
2.482
25.00
1965
21.484
3.003
25.00
1966
21.348
2.905
25.00
1967
27.535
4.112
25.00
1968
35.607
5.943
26.87
1969
31.439
5.275
27.50
1970
20.848
3.161
28.91
1971
28.341
4.350
29.82
1972
35.869
5.708
30.50
1973
35.757
5.366
30.91
1974
30.217
4.253
31.55
1975
30.903
4.534
31.81
1976
39.492
6.621
33.49
1977
45.337
8.104
33.77
1978
50.526
9.104
34.13
1979
73.443
11.669
25.97
1980
74.582
12.459
26.67
1981
80.938
12.684
24.81
1982
90.153
12.900
20.00
1983
119.118
18.468
20.00
1984
138.658
21.534
20.00
1985
168.570
24.495
20.00
Source: U.S. Treasury.
10
A 1988 study by the 13 Congressional Budget Office (CBO) disputes this
reasoning,
however.
Although the study found changes in tax rates on
capital gains produce a significant change in the behavior of investors, it
would not be sufficient to generate higher revenues from lowering the tax
rate on capital gains to 15 percent. But the authors of the study note the
crucial caveat that their statistical estimates are sufficiently imprecise that a
conclusion that lower rates will raise revenues cannot be ruled out.
The revenue impact debate currently centers on an updated study recently
completed by the U.S. Treasury. 14 The original Treasury study, completed in
1985, concluded that:
The available statistical evidence shows that the reduction
in tax rates on capital gains in the 1978 Act caused a
substantial increase in revenue from capital gains taxes in
the first year after the tax cut, and in the long run either
increased or only slightly decreased 15 the annual Federal
revenue from capital gains taxes.
Source of Debate. The 1985 study came essentially to the same conclusion
regarding the 1981 capital gains tax rate cuts, but the reluctance of tax critics
to accept the broad conclusions of the 1985 study led the Treasury to update
its findings. The 1988 report concludes:
When we extend the original Treasury specifications
through 1985, the results imply that the 1978 act produced
large and continuing direct revenue gains. Extension of the
sample and correction of the flaw in the Treasury report's
measurement of inflationary GNP dramatically reduce the
estimated losses from the 1981 changes. Finally,
substitution of clearly superior regression specifications
taken from the 1988 CBO study yields the conclusion that
both acts were significantly revenue enhancing.
16
These results immediately were challenged by the opponents, and that
challenge was met just as quickly by the authors. 17 As Joseph Minarik, a critic
of the Treasury studies, observes in his most recent critique, "The battle over
capital gains taxation will probably last as long as we own our income tax. 18
And so the battle continues, but with the weight of evidence growing in favor
13 "How Capital Gains Rates Affect Revenues: The Historical Evidence." The Congressional Budget Office,
March 1988.
14 Michael R. Darby, Robert Gillingham, and John S. Greenlees, "The Direct Revenue Effects of Capital Gains
Taxation: A Reconsideration of the Time Series Evidence," U.S. Treasury, Research Paper No. 8801, May 1988.
15 "Report to Congress on the Capital Gains Tax Rate Reductions of 1978", U.S. Treasury Dept., September
1985.
16 Darby, et al., op. cit., pp. 2-3.
17 Joseph Minarik, "The New Treasury Capital Gains Study: What is in the Black Box?" Tax Notes, June 20,
1988; and Michael R. Darby, Robert Gillingham, and John S. Greenlees, "The Black Box Revealed: Reply to
Minarik," Tax Notes, July 25, 1988.
18 Minarik, op. cit., p. 1471.
11
of the proposition that a capital gains tax rate cut will not lose revenue, and
may even gain some.
TAX REVENUES AND FAIRNESS: WHO WINS?
Closely related to the issue of revenues is that of fairness - who would
receive the benefit of a rate reduction and how would this change their tax
obligations. Few myths are as enduring as the belief that reductions in the
capital gains tax rate shift the tax burden from the rich to the poor.
Opponents of capital gains rate cuts assert that the rich would receive a
disproportionate share of the capital gains realizations and most of the
benefits. By their definitions, the critics note that the wealthiest two percent
of the population receive more than a quarter of their annual income in the
form of capital gains and that nearly 75 percent of all capital gains
realizations are received by taxpayers with incomes over $100,000, while 45
percent of such gains go to those with incomes in excess of $500,000. One
such critic notes that Bush's proposal would "save" the richest taxpayers at
least 19 $25,000 a year but save only $20 for most of those earning $60,000 or
less.
Supporters of the rate cut respond that such tax rate reductions actually
would increase tax payments from the wealthy because it would induce them
to shift their wealth from tax shelters to taxable investments and to "unlock"
gains that were not realized because of high taxes. The evidence supports this
view. Past rate cuts have led to substantial increases in capital gains
realizations and tax payments, and that an increased share of these tax
payments comes from upper-bracket taxpayers. Table 4 demonstrates this.
Table 4
Adjusted Gross
Taxes Paid on Capital Gains
Percentage Increase
Income
($ thousands)
1980
1984
1980-1984
$0-20,000
422,097
574,917
36
20,000-75,000
1,847,440
2,543,912
37
75,000-200,000
1,915,221
3,478,397
82
200,000-500,000
1,443,513
3,405,787
136
500,000 +
2,363,446
9,598,114
306
Source: Estimated by the Office of Tax Policy, U.S. Chamber of Commerce using Statistics of Income, Internal
Revenue Service
As the table indicates, the tax payments by the richest segment increased
more than eight times that of the lowest income group. Critics may contend
that the rise in revenues merely reflects the improving stock market over the
period, and that the largest single source of capital gains realizations are from
the sales of common stock. But such a contention simply is not supported by
19 Robert S. McIntyre, Statement before the Senate Finance Committee, March 14, 1989.
12
the facts. Over the period covered in the table, the New York Stock Exchange
Composite Index rose by just 36 percent compared with the 306 percent
increase in tax payments by the richest income group. Revenue increases of
this magnitude reflect increased unlocking of gains, proportionately more
investment in taxable assets, and greater mobility of capital.
Table 4 also demonstrates that the cut in taxes actually shifted the tax
burden toward the richest groups, in contrast to the popular wisdom.
Between 1980 and 1984, the share of capital gains taxes paid by taxpayers
earning $20,000 or less declined from 5.3 percent to 2.9 percent, while the
share from taxpayers reporting incomes of $500,000 or more rose from 29.6
to 48.6 percent of all taxes paid on capital gains.
While Table 4 and analysis demonstrate the extent to which capital gains
rate reductions lead to proportionately greater tax payments by the higher
income households, such aggregate data as presented in Table 4, actually
overstate the extent to which capital gains realizations are experienced by the
wealthier households. In fact, capital gains realizations tend to be spread
rather evenly throughout the income distribution when the income
who
distribution is defined to include only "recurring" income - that is, reported
income less capital gains realizations.
The guy his t dry
Important Distinction. This distinction in the measurement of income is
important. For many individuals, capital gains realizations are infrequent
retires Fla.
occurrences and reflect a unique one-time event that makes the taxpayer
appear rich by pushing him into the higher income brackets. Realized capital
up
gains tend often to be such non-recurring events as: the sale of a small
as should in
business upon retirement; an elderly widow liquidating her husband's
accumulated investments; the sale of stock to buy a house or pay for a child's
college tuition; or the liquidation of an investment portfolio in anticipation of
an economic downturn. When aggregated with other income, these give the
the
Robin
appearance of being received almost exclusively by the very rich.
Leach but isn't find
Table 5 shows the relationship of capital gains realizations to levels of
income net of capital gains. With this correction, it can be seen that realized
going to interesting
capital gains actually are distributed rather evenly throughout the income
distribution. More than a quarter of realizations were experienced by
households earning $20,000 or less, and households earning less than $75,000
received more than half of realized capital gains. Thus, in stark contrast to the
for
the
Richmons!
claims of the critics, a capital gains rate reduction would provide significant
benefits to all income levels, not just to the affluent.
of
THE PROPOSALS BEFORE CONGRESS
Nearly a dozen proposals to reduce the rate have been introduced in this
Congress. The proposals differ widely in coverage, holding period, rate
reduction, complexity and economic impact. To evaluate rival measures,
lawmakers need to judge them against a set of base criteria. Among the most
important of these:
13
1) Tax Rates
Since a key goal of a tax cut must be to stimulate the greatest volume of
investment with the minimum revenue loss to the Treasury, preference
should be given to those proposals that cut the tax rate as deeply as possible
while still leaving it within Professor Lindsey's estimated revenue maximizing
range of 9 to 21 percent. With 15 percent as the mid-point of this range,
proposals which include rate cuts to 15 percent or less should be preferred.
Bush's proposal, with rates ranging between 0 and 15 percent, and H.R. 461
and H.R. 499, with flat rates of 15 percent, lead the list. S. 171 with its
implied top rate of 16.5 percent is close to this group of leading measures.
Table 5
Distribution of Capital Gains by Recurring Income: 1985
Income
Capital Gains
Percent of
Group
(billions of $))
All Gains
(thousands
of $)
Under $10
$35.30
20.79
10-20
8.90
5.24
20-30
10.70
6.30
30-40
10.10
5.95
40-50
11.10
6.54
50-75
17.50
10.31
75-100
12.50
7.36
100-150
13.10
7.71
150-200
8.70
5.12
Over 200
41.90
24.68
Total
169.80
100.00
Source: Internal Revenue Service, 1985 Individual Tax Model File, Public Use Sample.
2) Holding Period
In principle there should be no required holding period before an asset
becomes eligible for taxation as a capital gain instead of as ordinary income.
Required holding periods serve no useful economic purpose and probably
distort investment patterns in a counterproductive direction. In practice,
however, the tax code has made a distinction between short-term and
long-term capital gains, with the preferential rates being applied to the latter
as a disincentive to speculation. Qualifying periods have varied from a low of
three months to as long as a year. Currently the qualifying period is six
months.
Alleged Failing. A popular, though unverified, notion holds that many of
America's competitive problems stem from the "shortsightedness" of its
business managers. The lengthy holding periods in several of the proposals
represent a peculiar, though ineffective, way of curing this alleged failing. In
fact, few other industrialized countries, including the "far-sighted" Japanese,
make such a distinction.
14
The many capital gains proposals now under consideration contain
required holding periods ranging from none in H.R. 461, one year for H.R.
499 and S.171, and four years for S.348. Inasmuch as all of these proposals
seek to encourage entrepreneurial start-ups, the lengthy holding period could
discourage such investments. Even a one-year required holding period might
be too long. With the average postwar business cycle averaging five years, the
four and five year holding periods required by several of the proposals could
shift needed investment away from new firms in favor of mature companies.
3) Coverage
In an effort to target the tax incentive to preferred forms of economic
activity, each of the legislative proposals would limit the preference to certain
types of investments. For instance, S.171 covers only common stock, S.348
covers newly issued common stock in firms with less than $100 million paid in
capital, while the Bush plan covers all common stocks as well as bonds, land
and non-depreciable real property. S.551, H.R. 461 and H.R. 499 are the
most inclusive in coverage, with the latter two proposals including virtually all
assets. Excluded from many plans are "collectibles" and depreciable real
estate such as office building and apartment complexes. Owner-occupied
housing also is excluded, but existing preferences in the tax code serve
effectively to shelter realized capital gains on houses.
As with the holding period, the exclusion of certain types of assets distorts
investment decisions and leads to an inefficient allocation of capital
resources. Bonds are held by investors for their potential capital gain as well
as interest income. Precluding them from capital gains taxation could raise
bond interest rates relative to the return on equities and penalize those firms
dependent upon debt for capital. This interest rate burden would fall more
heavily upon the mature and troubled industries with limited access to equity
markets. It also could lead to immediate wealth losses for individuals and
institutions (such as pension funds) with bonds in their portfolios.
Favoring New Ventures. S. 348 would extend the capital gains tax
preference only to the newly issued shares of businesses with paid in capital
of less than $100 million, to target assistance to new and growing small
businesses. But although new ventures play a vital role in a dynamic
economy, there is no particularly good economic reason to assist them at the
expense of their larger competitors. Such discrimination could lead to serious
distortions, misallocating capital throughout the economy and encouraging
costly and unproductive corporate restructurings to take advantage of the tax
rate reduction on special classes of shares.
Proposals such as S. 348 also would create complexities among new and
existing shareholders of eligible companies and these complexities and
uncertainties could offset in whole or in part the benefits of the more
favorable capital gains treatment. Growing companies generally issue their
shares in increments over their first several years of existence as the need for
capital arises and as they become better established in the market. Because
newly issued shares would under S. 348 be sold with the one time capital
gains tax preference, existing shares - which now would sell without the
15
preference - would decline in value in secondary trading whenever a new
offering is announced. This added uncertainty, combined with the required
four year holding period and relatively high capital gains tax rate, suggest that
S. 348 would provide very limited incentives to investors, and thus would do
little to assist new firms in raising capital.
CONCLUSION
The evidence accumulated since World War II makes a powerful case in
favor of a substantial reduction in the capital gains tax rate. Whether the issue
is encouraging savings and investment, fairness, or revenues, the data and the
studies demonstrate that concerns expressed by critics of a cut are either
unwarranted or exaggerated.
Increasing Economic Well-Being. In response to this evidence, the White
House and many members of Congress from both political parties have
developed proposals and introduced legislation to rectify the mistakes made
in the treatment of capital gains by the Tax Reform Act of 1986. While some
of these proposals are better than others, collectively they represent a
growing appreciation by public officials that low tax rates make important
contributions to America's economic well-being. This trend should be
encouraged and Congress and the White House should work together to craft
legislation to apply a lower tax rate to a broad definition of financial and
tangible assets.
All Heritage Foundation papers are now available electronically to subscribers of the "NEXIS
on line data retrieval service. The Heritage Foundation's Reports (HFRPTS) can be found in the
OMNI, CURRNT, NWLTRS, and GVT group files of the NEXIS library and in the GOVT and
OMNI group files of the GOVNWS library.
16
McNally/Simon
January 9, 1990
Draft Four (B:OHIO)
PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE
HYATT REGENCY BALLROOM, CINCINNATI
FRIDAY, JAN. 12, 1990, 1:30 P.M.
[[ACKNOWLEDGEMENTS]]
We're pleased to be back in Cincinnati. Actually, I was
hoping to get out here for the Reds' Opening Day. But they tell
me I'm three months too early. Same problem I ran into on Pearl
Harbor Day.
It is fitting that, in the days leading up to the State of
the Union Address, we should meet again in Cincinnati. The last
VP
schedule time I visited was in November 1988, in the final days of the
11/4/88
6/24/88
Presidential campaign. And earlier, Cincinnati was one of my
7/12/88 last stops before the convention in New Orleans.
LA
Times On the trip before that we spent a morning at Proctor and
4/27/88 Gamble's R & D facility. They taught me a trick every President
wants to know: How to put toothpaste back into the tube.
schedule
All in all I came here four times during the Presidential
campaign. I talked of America's future, and of future
generations. I talked of certain principles. Told you I was
ready to make the tough calls -- to use the veto where principle
was involved -- and to take the heat. And today I've come back
to Cincinnati to tell you I'm ready to make good on that pledge.
Because up on Capitol Hill some important business has gone
unfinished, promises have gone unfulfilled.
We sent responsible proposals to Congress on the Big Four --
the Four C's: Capital gains. America's Children. Clean Air.
2
And Combatting crime.
In some cases, that business has gone unattended for the
better part of a year. And the Four C's have become MIA's --
Missing In Action in the jungles of Capitol Hill.
The clock is running. Time and patience are running out.
America wants it done right.
America wants it done responsibly.
And America wants it done now.
And if it's not done right -- it will be sent back.
That doesn't mean a fight. But it does mean a veto.
And I'm also prepared to use the Presidential Veto to hold
the line against free spending.
We've seen a lot of exhilarating changes in recent months.
A world no longer on the brink of war but on the brink of peace.
But being on the brink isn't the same as being over the top.
Some think all the answers to this year's problems can be
found in the latest Washington craze -- this hypothetical
windfall they're calling the "peace dividend." That's like the
next-of-kin who spend the inheritance before the will is read.\\
At best it's wishful thinking. At worst it's reckless and
irresponsible.
We like what's happening in Central Europe. But just as it
would have been impossible -- six months ago -- to predict those
thunderous changes, it's impossible today to know what will
unfold in the next six months -- let alone the next six years.
But in this world of change, one thing is certain: America
3
must be ready. America must be strong. And a strong America
means not only a strong economy. It also means a strong defense.
And if proof of that were ever needed -- we saw it last
month in the courage of our troops in Panama.
The "peace dividend," if there is a dividend, is not like
money in the bank. It is more like an inheritance. A bonus that
may come. Something to be hopeful about. But a long ways from
having cash in hand. And like an inheritance, it is a special
gift, a legacy not only of prosperity but also security, earned
by the hard work and sacrifice of those who came before.
of course, whenever an inheritance looms there are those
eager to rush out and squander it -- to buy new things, to spend,
spend, spend -- spending money they don't yet have. Then the
bills start coming. And what was promised as a bonus becomes a
burden. In Washington, that burden comes in the form of an
announcement. They'll say: "It's Time to Raise Your Taxes."
That's not going to happen. Because most Americans know
that when found money does come along, the first thing to do is
pay off your debts. Reduce the deficit.
Reducing the deficit isn't just a good idea. It's what the
American people want. And it's the law.
The new budget must meet Gramm-Rudman requirements. It must
reduce barriers to economic growth. It must keep interest rates
low. Because the best anti-poverty program is a good job. And
the best jobs program is a sound economy.
A sound economy is a competitive economy. And to keep
4
America competitive, to fuel our continuing boom, we also need an
Holling
Hollingswood
Baid
infusion of new venture capital. That's why we need what a
majority in both Houses of Congress has already voted for: A tax
cut on capital gains.
As the world turns to freer markets, this is no time to
become wishy-washy about where America stands. The jury is no
longer out. Markets work. Government controls don't.
And since the debate has all but ended on this issue,
perhaps our most die-hard ideologues can now turn their attention
to the real question that divides America: Is it Texas or
Cincinnati that produces the world's best chili? III of course
this also is a question to be decided by the market.
The economic challenge of the 90's is to make markets work
better. And one of the best ways a government can do that is to
do what people around the world are asking their governments to
do: Get out of the way!
BBA
It works. Here at home, we're in the midst of the longest
12/11/89
peacetime economic expansion in our nation's history, an 86-month
expansion that has created an astonishing 20 million new jobs
since 1982.
That's due to the genius of places like Cincinnati -- the
Ohio River valley -- and the solid American values that have
flourished here and inspired the world from Central Europe to
Central America.
The whole world is watching. And the whole world is ready.
The headlines tell of other nations buying American. That's
5
good news -- not bad. We've been urging our own people to "Buy
American" for years -- to invest in the greatest job-creating
machine of the 20th century.
And it's no surprise the world's investors are following
suit. The results are in: America is the choice.
We don't have to look elsewhere to know what works. If you
want to follow the smart money advice of the 1990's, go to where
the Japanese or the Europeans are going. Look at the U.S.A.
Look at what the rest of the world calls "the American miracle."
10/89 BLS 765,456
You saw it happen here in Cincinnati U.S.A., "The Blue Chip
City," where 150,000 more people are at work than were working
11/83 585,000
six years ago. Cincinnati produced its miracle the old-fashioned
way -- the American way. It's an old tradition here. When he
Cin.
first opened his slaughterhouse in 1810, Richard Fosdick was
Engaines
warned that meat couldn't be cured in Cincinnati's climate. But
see
he didn't know that it couldn't be done. He continued his
file
experiments until he discovered the rock-salt process for curing
meat -- and made this city the principal hog market of the world.
Renewing our emphasis on innovation is one of the ways
modern Cincinnati has prospered. You've also built a diverse
economic base. Stripped away corporate fat. Renewed our
3-28-88
emphasis on quality -- Fortune says Cincinnati makes some of the
p.
54
best jet engines in the world.
Ultimately, these are the kind of efforts that will
determine how America fares in the competitive, free-trade world
of the 1990's. The way of the future is free people. The way of
6
the future is free trade. And free people and free trade is what
America is all about.
of course, it's not enough that trade be "free."
It's also got to be fair.
And it's not enough to tear down the Berlin Wall.
We've also got to tear down the tariffs and other barriers
to American trade.
800-241-4141
A global game is afoot, a game in which a Cincinnati
businessman can now fly non-stop to London and Frankfurt -- any
day of the week.
If the rules are fair and the same for everybody -- we can
play this game. It's called "competition." We invented it. We
won it before. And we're going to win it again.
Winning in the competitive 90's will take more than
investing in products. We must also invest in people. That
means offering every American child an education second to none.
Our "Educational Excellence Act" remains one of the
priorities of my Administration -- sent to Congress almost nine
months ago. It calls for choice, flexibility, and
accountability. And it's time Congress accounts for its inaction
on this pressing issue.
You in Cincinnati have acted, working to educate and train
our people for the 21st century. Three years ago business,
CYC
educational, and community leaders here came together to take on
513-
621-0053 a mighty task: reduce the numbers of students at risk -- the
staggering 40 percent dropout rate in public schools.
7
The result was the Cincinnati Youth Collaborative -- an
intensive people-to-people "mentoring" program that many of you
CYC
support, and that has already seen some early success.
It has America talking. Your Governor visited one of the
participating classrooms at McKinley before coming out to the
Education Summit I hosted in Virginia last fall. And earlier
today I had an opportunity to see the programs at Taft High
School firsthand.
There are other matters that require urgent attention when
Congress gets back later this month. Our Clean Air Act proposals
recognize that in the emerging global economy, environmental
destruction knows no borders -- and that a healthy economy
requires a healthy environment.
And a kinder, gentler environment also means a society where
every man, woman and child can live and prosper in an environment
free from fear. That means freedom from crime, and especially
the increasingly violent crime that's been spawned by drug abuse
and trafficking. On our anti-crime package as well, it's time
for Congress to act. 11
There is much to be done in the months ahead. But as a new
year begins, Americans should also pause to take some pride in
what we have accomplished together. Let me suggest two areas.
At home, more than anything else, a kinder, gentler nation
Ec. Report of Pres.
B-39is one in which everyone who wants a job, has a job. And today
Table 1989 note = 5.3%
America has the lowest unemployment rate since 1973 -- and Ohio
one Beneau has reached its highest employment level in history.
of 614-644-2689 Empl. services
8
Abroad, for more than 40 years, three generations of
Americans have stood steadfast in a world often filled with
challenge, rebuke and even insult. Firm in our belief in
America's might and in America's destiny as leader of the free
world, our spirit did not falter, our troops did not flinch.
And today, after the watershed events of 1989, the free
world we're leading is growing bigger all the time.
In the past month we saw democracy restored to the brave
people of Panama. We saw the powerful brought before the bar of
justice. And we saw a proud people weep with gratitude over the
sacrifice of American soldiers.
Fish
4
US
And somehow, it seems more than a coincidence. Because in
service
that same month, we hear that the Bald Eagle -- the American
Pablic
affairs
Eagle -- may soon come off the endangered species list.
Ladies and gentlemen -- America is back. And this time,
America is back to stay.
Thank you. God bless you. And God bless Cincinnati!
#
#
#
Final
FRIDAY, JANUARY 12, 1990
The Cincinnati Post
Space
Cincinnati h ils the chief
lab
President visits Taft High,
saved
touts 'four C's' in speech
Shuttle crew
Post staff report
water said.
Air Force One landed on
grabs probe
Making his first presidential
schedule at 11:55 a.m. at Greater
visit to Cincinnati, President
Cincinnati International Airport.
Associated Press
Bush sat down at lunch to dis-
The smiling and waving Bush
cuss an innovative educational
was greeted by a host of local
CAPE CANAVERAL
program at Taft High School be-
dignitaries and five school chil-
Fla. Columbia's astro
fore delivering a speech on his
dren who won a science contest.
nauts salvaged valuable
unfinished agenda to the Greater
Cincinnati Chamber of Com-
One of the science contest
space laboratory today,
winners, Erin Johnstone, 11, of
snaring it with a 50 foot ro
merce.
bot arm and saving it from
Taylor Mill (Ky:) Elementary
Bush arrived at the West End
a fiery doom in the atmo
School, presented Bush with a
school to be briefed about the
school T-shirt and a PTA mem-
sphere.
Cincinnati Youth Collaborative
bership card.
We have LDEF com
and its work with students.
Bush then boarded a helicop-
mander Dan Brandenstein
In his speech to 1,500 busi-
ter Marine One - for a brief
reported.
ness executives at the Hyatt Re-
flight to Union Terminal, where
Congratulations on a
gency Hotel, downtown, Bush
the helicopter, accompanied by
job well done, Mission
was expected to press for his
four others, landed in a horse-
Control replied. "You've
four legislative drive - a cap-
shoe shaped corral of U.S. Postal
made several scientists
ital gains tax cut, a child care tax
Service trailers. Two police offi-
quite happy DEF is final
credit, clean air legislation and
cers, one with a rifle and the
ly coming home.
tougher laws to combat crime.
other with a pair of binoculars,
The astronauts made the
White House spokesman Mar-
stood atop the trailers.
dramatic rescue when they
lin Fitzwater said Bush was not
The presidential motorcade
steered Columbia alongside
slated to unveil any new initia-
drove east on Ezzard Charles
the bus sized Long Dura
tives, saving those for his State>
Drive to Taft High School, where
tion Exposure Facility and
of the Union message Jan. 31.
Bush arrived at 12:16 p.m. and
mission specialist Bonnie
Before that speech to a joint
entered the school amidst heavy
Dunbar reached out and
session of Congress, Bush is try
security
grabbed it with the wire
ing- to highlight what Congress
Students watched from win-
fingers of the spaceship's
still has on its plate from last
dows as the armored limousines
mechanical arm.
year "The last thing we want
is
pulled up to the school Among
Capture was made
for the public to forget our com
miles above the Earth as
mitment to those issues," Fitz
Please see BUSH, 8A
the two spacecraft racedin
formation at more than
17,400 mph
BUSH
In
While Brandenstein held
the shuttle steady, Dunbar
CINCINNATI
used a television camera on
the end of the robot to
Our education president' The education community is giving
guide the fingers to a grap
President Bush mixed reviews so far as he enters his second year in
pling device on the side of
the White House. A sampling of opinions. Page 8A,
the satellite
Columbia was not in po
The greeters It's not by accident that certain people get to meet
sition to show the actual
and greet the president when he arrives. A look at who decides, why:
capture on TV.
Page 8A.
Photocopy-Preservation
The retrieval ended a ce
The protesters Among the president's greeters: protest signs
lestial chase that began
by Femald residents will remind Bush that the federal
with Columbia's launch on
government owes them $78 million. Page 8A.
Tuesday and covered 1.3
Historic event
When Bush visits Taft High School Friday he'll
million miles during which
be the first president in more than 73 years to visit a Cincinnati public
the astronauts circled the
school. Page 8A
globe 50 times.
ROB CLARK JR./The Cincinnati Post
contest sponsored by the Cincinnati section of the
'One of ours' - A Butler County firm can say 'He's riding in one of
For more details, please
President Bush, arriving today at Greater Cincinnati
ours' as the president's entourage rolls into the city, Page 6B.
see Page 2A.
International Airport, clasps the hand of Yolande Chan
American Chemical Society. Yolande attends Monroe
of Hamilton, Ohio, one of five children who won a
Elementary School.
with Reagan to register her con-
ENDO NES MAX
chairman Joseph Head, who also
"If this was a political visit,
cerns about his tax reform pro-
Maximum control for the most challenging game play
$19.99
is a prominent Hamilton County
we would hope to be able to ar-
posals. She got two minutes.
ever. Rapid Turbo Fire, high-tech styling and 360
degreeswiveling cycloid control Excitement with
Babbage's Price for
the touch of a button.
Nintendo
Taft class whipping up
Nintendo
Bush
List Price.
$24.95
less than a normal Friday.
English teacher Charlotte
BABBAGE'S
meal fit for a president
From Page 1A
Verwold said attendance was
THE ADVENTURES OF
down today because "kids ex-
those greeting Bush were Cincin-
BAYOU BILLY
(pressed a fear to me that some-
$39.55
By Michael D. Clark
nati Reds President Marge
You're ragin* Cajun the tailof aswamp rat. Fromwrestlin'
corned beef), fruit and cheese
thing might happen (to Bush)
gators in muddy marshes to chasin' through the streets of
Post staff reporter
Schott and Reds pitcher Tom
Babbage's Price for
trays, with dessert of punch
and they didn't want to be near
New Orleans, you're up against it all
Nintendo
and cookies.
Browning.
Today, the nation's chief exec-
utive meets Taft High School's
"They said they didn't want
Bush then sat down in a class-
KONAMI
List
Price
$43.95
Freshman Lamyla Williams
anything special. They said that
room for a lunch of sandwiches
said, "It's scary, very scary. A lot
BABBAGE'S
chef executive.
peanut butter sandwiches or bo-
and cookies to discuss the mis-
of people want to harm the pres-
"I've never cooked for a presi-
logna would be fine," said Ms.
sion and success of the Cincin-
ident." Several students she
QUICKEN
dent before," said Marian Harp-
Harper, "Our principal told
nati Youth Collaborative
knows stayed home today, she
through which business commu-
Quicken
Quicken saves you hours of time and effort by automating
$35.97
er, instructor for Taft's food
them we don't eat that, so we
said.
personal and small business finances!
service catering class. "I've nev-
can't give it to you."
nity volunteers and others work
Babbage's Price for Apple Version 1.0.
Many Taft classes focused in
$39.96
Babbage's Price for
er even seen one before."
The White House, however,
with the school's 975 students -
Babbage's Price for Macintosh Version 1.5. $47.96
IBM and IBM 3.5"
part this week on Bush's visit to
Ms. Harper, now in her 28th
did put in a last minute order for
79 percent of whom are black -
the school, with the study skills
Intuit
Version 3.0
year as an employee of the Cin-
to improve and enrich their edu-
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the president's favorite - mo-
cation.
class this morning seeing how
cinnati Public Schools, gets her
cha ice cream.
many words could be formed out
BABBAGE'S
chance today when she and her
"We're making homemade
Bush had lunch with U.S.
of the letters in "President
food-service students prepare
Rep. Willis Gradison, R-Cincin-
NES ADVANTAGE
mocha ice cream," Ms. Harper
George Bush."
and deliver lunch to President
said.
nati; U.S. Rep. Thomas Luken,
Just touch of a button and you have repeat firing power. Slow
Freshman Simone Edwards
D-Cincinnati; Cincinnati Public
down the action with the exclusive slow motion control.
$39.99
Bush. A Covington native Ms.
For security reasons, a mem-
Schools Supt. Dr. Lee Etta Pow-
completed the exercise by find-
Experience the professional feel of real arcade play.
Harper has lived in Cincinnati
Babbage's Price for
for the last 40 years. Her four
ber of the White House advance
ell; Procter & Gamble Co. Presi-
ing words like "sister, post, vest,
Nintendo
team will oversee the students as
children have all graduated from
dent John Pepper, a co-chairman
set and pressure."
Nintendo
List Price
$49.95
Cincinnati Public Schools.
they prepare Bush's food, said
of the Cincinnati Youth Collabo-
Students received a flyer tell-
Ms. Harper.
rative; Sister Jean Patrice Har-
ing them they would be moved
BABBAGE'S
The 62-year-old, Golf Manor
"They (the advance team)
rington, collaborative executive
the auditorium shortly after
resident, said the menu will fea-
said I'd have to taste everything
director; Cincinnati Board of Ed-
12:30 p.m. and would pass
ture meat and cheese sand-
I make," she said. "I don't know
ucation President Virginia Grif-
through a magnetic screening
wiches (roast beef, turkey, ham,
if they were kidding."
fin; and school board vice
device.
president Charles Hughes.
Students were told to leave
He then was scheduled to
their \belongings in classrooms
meet in the school library with
that would be locked behind
Youth press on Bush beat
10 students and their Cincinnati
them.
Youth Collaborative mentors for
Post staff report
30 minutes before addressing a
decorum are the order of the
Babbage's
TM
"Good behavior and proper
The students will be chap-
student assembly for 10 minutes
aday," the flyer said.
eroned by Jene Galvin, head
in the auditorium.
Two students from the new
of the school, and who has
Outside the school across
America's Software Headquarters
High School for Communica-
Bush also met with students
been in the press corps for
Ezzard Charles Drive, a dozen
tion Professions at the
involved in other collaborative
other presidential events.
demonstrators carried signs pro-
Hughes Alternative Center
programs.
testing the Bush administra-
"They're very excited. This
had press passes to cover
The library was decorated
is a big deal for them," Galvin
tion's policies on housing and El
President Bush's speech to-
said.
with magazine covers featuring
Salvador. "Dollars for housing,
Cincinnati
Dayton
day at the Hyatt Regency.
Bush, who was to sit on a stool
Kentucky
not for war," the protestors
Nanci's work will be shown
Kenwood Towne Center
next to Taft Principal Orlando
chanted when Bush arrived.
Salem Mall
Florence Mall
Nanci McKitric, 10th grade,
to fellow students on VCRs
(513) 891-5521
Henderson.
(513) 837-6096
(606) 283-5522
was assigned to do a televi-
and will also be offered to the
The school was surrounded
Prior to Bush's arrival, Taft
Northgate Mall
sion news package. Jeremy
Warner Cable access channel.
with metal barricades and a blue
High School students seemed
(513) 741-2977
Begley, 9th grade, was as-
awning and blue carpet were
Jeremy's story will be dis-
subdued and apprehensive about
signed to write a news story.
placed at the entrance of the
tributed among students.
his visit. Attendance today was
high school for the presidential
listed at 68 percent - 2 percent
arrival.
ine
minim
gan.10,
1470
Whirlwind visit from Bush
President
talks war,
cash, chili
Photecopv-Preservation
BY HOWARD WILKINSON
The Cincinnati Enquirer
In a four-hour visit Friday to Cincin-
nati, President Bush offered high
school stu-
dents the
promise of
the future, a
Inside
slain soldier's
family the
Arrival/A-4:
sympathy of
Notebook/A-4
the nation
Cincinnatians
and congres-
on staff/A-4
sional Demo-
Man : on the
crats the
street/A-4
threat of a
Legislative
fight.
agenda/A-5
Bush was
Bush's visit to
in Cincinnati
Taft/A-6,7
to recognize
Comp lete
citywide ef
texts/A-5.6
forts to re-
duce the
number of
school dropouts and go before a receptive
audience organized by the Greater Cincin-
nati Chamber of Commerce to pitch his
legislative agenda.
During the day he:
Told about 1,000 students at Taft
High School, in the West End, "If you stay
in school, you'll find that / the key to
success is right under your hat
Your
The Cincinnati Enquirer/Gary Landers
dreams are within your reach. May every
President Bush acknowledges a standing ovation while addressing some 1,000 students at Taft High School in West End. He wasin town for about four hours.
single one of them come true.
Met privately at the Hyatt Regency
Hotel, downtown, with the family of Army
Education praised,
Pfc. James Markwell, a Ranger medic
from Sharonville killed by gunfire in the
Panama invasion.
Warned in his principal speech to
but no funds likely
about 1,500 at the Hyatt Regency that
congressional Democrats should not count
on possible military savings from reduced
BY KRISTA RAMSEY
teers in collaborative programs.
world tensions going into domestic pro-
The Cincinnati Enquirer
Later, he briefly addressed Taft
grams.
Calling Cincinnati's private sector ef-
1,000 students in a pep rally like assem-
Lightened his messages with the
forts to improve education "the epitome
bly, warning against drug use and urging
promise that when the nation's economic
students to take a more active role in
problems are solved, "perhaps our most
of my 1,000 points of light," President
their own education.
die-hard ideologues can turn their atten-
Bush used a. Friday visit, to Taft High
tion to the real question that divides
School to draw national attention to local
In a question-and-answer session with
America: Is it Texas or Cincinnati that
programs and to drum up support for
students, Bush called for a return to
produces the world's best chili?"
school volunteerism.
traditional values and the strengthening of
At Taft, Bush traded questions and
But the president, whose September
the family as a means to improve educa-
answers with 10 Taft students involved
tion.
summit on education gave school reform a
with the Cincinnati Youth Collaborative, a
high profile, offered no hope of increased
He predicted the federal share of total
business-schools partnership aimed at re-
federal funds for education.
funding for education would remain steady
ducing dropout levels. Bush praised the
At Taft, Bush was briefed on efforts of
at 7%, promising increases only for Head
collaborative as being "a model for the
the Cincinnati Youth Collaborative, a
Start programs for disadvantaged 4- and
kind of educational excellence I'd like to
group of, civic, school and corporate lead-
5-year-olds.
The Cincinnati Enquirer/Gary Landers
see sweep this country."
ers pledged to improve local education,
In answer to students' questions, Bush
Vickie Williams, a:10th-grader at Taft High, left, presents a plaque to President
But in response to students' questions,
and met with 25 students and adult volun-
(Please see SCHOOLS, Page A-4)
Bush on behalf of the Cincinnati Youth Collaborative and Excel Mentor Program.
(Please see BUSH, Page A-4)
INDEX
DeCourcy responsive;
Shuttle grabs
Four sections
149th year, No. 279
Copyright, 1990
condition stabilized
orbiting lab
The Cincinnati Enquirer
Nation/World
Nation
A-3
Doctors say he grasps simple questions
for trip home
World
A-8, A-12
Health/science
A-9
BY ELIZABETH NEUS
12:41 a.m. crash on Inter-
BY JOHN J. GLISCH
The Cincinnati Enquirer
state 275 in Kentucky, just
Orlando Sentinel
Tempo
Hamilton County Com-
over the Ohio River.
CAPE CANAVERAL, FLA.
It
Photocopy-Preservation
Advice
B-2
missioner Joseph M. De-
Witnesses told police
has a few tears and dings in it but
Radio/TV,
B-6-7
Courcy's condition has sta-
that DeCourcy, 44, of An-
otherwise looks good as new.
Comics
B-11
bilized, and his life is no
derson Township, was driv-
The Long Duration-Exposure Facil-
Metro
longer threatened by inju-
ing the wrong way on the
ity, an orbiting laboratory nearly de-
Howard
C-1
ries he suffered in an auto-
highway and collided with a
stroyed after almost six years in space,
Lottery
C-2
mobile crash Jan. 5.
car driven by Larry Money,
was plucked from its fatal trajectory
Obituaries
C-4
At a brief press confer-
42, of Groesbeck.
Friday by space shuttle Columbia.
ence called Friday to dispel
Money was in fair condi-
Sports
The five astronauts aboard Colum-
rumors that DeCourcy was
tion Friday at St. Luke Hos-
bia ended a three-day, 1.3 million mile
Scoreboard
D-2
near death, his doctors at
Joseph M. DeCourcy
pital East in Fort Thomas,
Digest
D-3
chase around the world by stretching
University Hospital said he
Ky., and was moved out of
Classified
D-7-14
the shuttle's robot arm to capture the
had emerged from a coma and is able to
the hospital's intensive care unit
orbiting science platform, completing
Business
respond to simple questions by shaking
Thursday.
NASA's first space-salvage job in more
Portfolio
C-5
his head or blinking. His condition was
Although DeCourcy was conscious
than five years.
NYSE
C-6
still critical.
and his condition stable, his prognosis
"Houston, we have LDEF," shuttle
Mutual funds
C-8
"But it's difficult to say a patient like
was still in question.
commander Dan Brandenstein report-
The Associated Press
Photocopy-Preservation
A-4 THE CINCINNATI ENQUIRER Saturday, January 13, 1990
F
The Presidentin Cincinnati
A handshake,
Bush
CONTINUED FROM PAGE A-1
Bush offered little hope of addition-
al federal funds for education, be-
hug and smiles
yond a promise of national expan-
sion of programs for 4- and
5-year-olds identified as being in
danger of eventually dropping out
greet president
of school.
Bush delivered his speech to
students in a spruced-up auditori-
um that rang with rousing cheers
BY DAVE BEASLEY
Monroe Elemen-
when he entered.
The Cincinnati Enquirer
tary School,
Jeff Scheper
Hamilton. "I was
Defending defense
got a thank
excited when I
you" and a big
shook hands with
A short motorcade trip took him
hug from the
him."
on to the Hyatt Regency, where he
president of the
Bush, bare-
called the year-end U.S. invasion of
United States
headed and but-
Panama a "superb, beautifully co-
ordinated effort."
when he handed
toning his top
It proved, the president said,
him an envelope
coat, came
"America's need for a ready and
full of letters
quickly down the
steps from Air
effective defense force,"
from classmates
Force One, fol-
Bush's speech at the Hyatt was
at Blessed Sacra-
lowed by U.S.
interrupted by applause leight
ment School in
times.
Fort Mitchell.
Rep. Willis D
Jeff was one of
Gradison, R-Cin-
five excited 11-
cinnati. They
Sorry, spendthrifts
year-olds who
were met by the
The president used the speech
had won the
children, their
to send a message to congressional
chance to shake
parents. and
Democrats who want to take the
hands with Presi-
teachers.
savings from proposed defense
dent Bush when
"He said it
budget cuts and distribute the bil-
he arrived at
was an honor to
lions to social programs: Don't
Greater Cincin-
meet us," said
count on it.
nati International
Erin Johnstone of
"Whenever a potential inheri-
Airport Friday.
Taylor Mill (Ky.)
tance looms, there are those eager
Their names
School.
to rush out and squander it - to
were drawn from
"It was very,
buy new things, to spend, spend,
among 1,500 stu-
special," to Car-
spend," Bush said. "That's not
dents who had
rie Laflen of Mil-
The Cincinnati Enquirer/Gary Landers
going to happen because most
given correct an-
ford Main Ele-
President Bush boards a helicopter as he prepares to leave Union Terminal to return to
Americans know we not only must
swers in a con-
The Associated Press/Rob Burns
mentary School.
Greater Cincinnati International Airport and then back to Washington.
maintain our defenses, but still
"I told him it was
the
deficit
test sponsored by Yolande Chan of Hamilton
"I told him it was
Greater Cincinnati international Airport and then back to Washington.
maintain our defenses, but still
the Cincinnati thought President Bush looked
cold but the peo-
must reduce the deficit."
Section of the different in person than on TV.
ple of Cincinnati
American Chemi-
wanted to give
School secured for Bush visit
cal Society.
him a warm welcome."
Grieving for Pfc. Markwell
"I was real excited when he
Richard J. Sunberg said more
THE CINCINNATI ENQUIRER
asked me if I was one of the
than 3,500 students entered the
But at the Bush's speech at
The private meeting with Mark-
winners," Jeff said.
chemical society's contest to ex-
When a U.S. president visits a
Notebook
the Hyatt Regency Hotel, when
well's family was emotional, said
"He was pretty nice, but Mr.
Bush asked Gradison and Luken
both White House spokesman Mar-
plain how a miniature toy car
high school, classroom rules
Bush looked different than he does
changes colors when it is sub-
bend to fit. the situation.
to stand up in the audience and
lin Fitzwater and Markwell's step-
on TV." said Yolande Chan of
merged in hot or cold water.
ers was typical cafeteria fare
be recognized, Luken had left the
father, Bill Rouse.
One whole wing of student
cold sandwiches, chips and fruit,
"We talked about Jim and our
room.
lockers, classrooms and offices
the menu included mocha ice
loss," Rouse said. "He was very
were emptied and sealed off for
cream, the president's favor-
'Well, we've got the family
concerned that we were OK, it was
Schools
day-care programs for the children
Bush's visit to Taft High School.
ite.
represented here anyway," Bush
a very emotional meeting."
of teen-age mothers.
"I am concerned that the mag-
Teacher Pam Fields said that,
said, pointing to Cincinnati May-
CONTINUED FROM PAGE A-1
since Christmas, Secret Service
initude of the problems facing in-
U.S. Rep. Thomas A. Luken, a
or Charles Luken, the congress-
Rouse, and Markwell's mother,
agents had been familiar faces in
man's son.
Cincinnati Democrat, went eight
sister and brother met with Bush
held out no hope for more money
ner-city youth today are far great-
hallways.
er than any programs we have in
years during Ronald Reagan's
The president told the Great-
for about 15 minutes.
for college aid or tutorial pro-
grams, describing the federal role
place to address them," Harring
presidency waiting for the phone
er Cincinnati Chamber of Com-
"After you talk with him for a
Each of the school's 1,000
in' education as "properly pro-
ton said.
to ring with a White House invi-
merce audience he was "glad to
few minutes you forget that he's
students was sent through a met-
scribed."
al detector before entering the
tation to fly home with the presi-
be in Cincinnati for a non-politi-
the president, except for all the
Despite receiving no promises
dent.
cal
Earlier, local education leaders
of specific assistance, local leaders
trip
it's the first one I've
Secret, Service agents standing
auditorium for the Bush speech.
around," said Rouse.
who praised the visit for helping to
said the visit raised their hopes.
Even school officials and local
It never happened.
had in a long time."
Bush, traveling with Southwest
motivate inner-city youth, had
"The president sent a powerful
dignitaries were "swept" by Se-
But George Bush invited Luk-
The last four Bush trips to the
Ohio Congressmen Willis Gradison
asked for specific federal help.
message today,' said Lee Etta
cret Service agents to make sure
en to come along Friday, with
Queen City were during his pres-
and Thomas A. Luken, left Greater
Sister, Jean Patrice Harrington,
Powell, Cincinnati school superin-
they carried no concealed weap-
Cincinnati's Republican con-
idential campaign. They proved
Cincinnati International Airport for
executive director of the Cincinnati
tendent. "By, coming to an inner
ons.
gressman, Willis Gradison.
to be profitable: The Indian Hill-
Washington on Air Force One
Photocopy-Preservation
Youth Collaborative, called on
city school and an inner city neigh
There seems to be a little
Madeira ZIP code was one of
about 3:45 p.m.
Bush to fund preschool programs
borhood, he delivered a big mes-
While the president's lunch
more bipartisan spirit in this ad-
Bush's biggest sources of cam-
for 3-year-olds who are too young
sage about the importance of edu-
with local civic and school lead-
ministration, Luken said.
paign funds.
Reporter Krista Ramsey con-
for Head Start and to expand
cation.
tributed to this story.
Presidential trip was a homecoming
Cincinnatians working in White House take flak all the way home
BY JANE PRENDERGAST
corporate and international law at the
"I know his family and a lot of his
The Cincinnati Enquirer
Cincinnati law firm of Graydon, Head &
friends,' Hagin said. "I know the way he
When you work for the president of the
Ritchey, is the No. 2 man in the legislative
likes to do things.
United States, and he headed for your
affairs office, helping to supervise 10
But, he conceded, "I do have to be the
hometown, you get teased.
lobbyists as they work to sell the presi-
bad guy, in that I have to say no to an
A lot.
dent's programs on Capitol Hill.
awful lot of people. But I get to be the
"It was good-natured, but the others
The current priorities are: getting the
good guy, too - in times like (Friday)
were really giving us flak on the way
Clean Air Act reauthorized; passing child-
here at Taft."
here," said Joseph Hagin Jr., George
care legislation, and moving on Bush's
The hectic schedule he keeps is great
Bush's appointments secretary. "They all
crime package, which is part of his overall
for his diet, however. Hagin returned to
knew that Rob (Robert Portman) and I
drug program.
Cincinnati Friday with about 75 fewer
came from Cincinnati."
"I'm learning a lot, a whole lot," Port-
pounds than he took to Washington.
The two former Cincinnatians talked
man said. "It's an opportunity I'm glad I
Hagin and Portman both said Washing-
about their Washington jobs and lives
didn't pass up."
ton is great professionally, but they envi-
Friday outside Taft High School, while
For Hagin, the biggest surprise in his
sion returning to Cincinnati.
their boss spoke to students inside.
job was the number of hours he and other
"I miss Cincinnati a lot," said Portman.
"It was funny," Hagin said. "We sched-
staff members work. He is responsible for
"I miss the city and all the friends I have
ule trips like this all the time, but I
whittling requests for Bush's attention -
back here. And I would like to get back
checked and double-checked everything
his office receives 700 to 1,000 weekly -
into law full-time in the future."
Presidential trip was a homecoming
Cincinnatians working in White House take- flak all the way home
BY JANE PRENDERGAST
corporate and international law at the
"I know his family and a lot of his
The Cincinnati Enquirer
Cincinnati law firm of Graydon, Head &
friends," Hagin said. "I know the way he
When you work for the president of the
Ritchey, is the No. 2 man in the legislative
likes to do things.
United States, and he's headed for your
affairs office, helping to supervise 10
But, he conceded, "I do have to be the
hometown, you get teased.
lobbyists as they work to sell the presi-
bad guy, in that I have to say no to an
A lot
dent's programs on Capitol Hill.
awful lot of people. But I get to be the
"It was good-natured, but the others
The current priorities are: getting the
good guy, too - in times like (Friday)
were really giving us flak on the way
Clean Air Act reauthorized; passing child-
here at Taft."
here," said Joseph Hagin Jr., George
care legislation, and moving on Bush's
The hectic schedule he keeps is great
Bush's appointments secretary. "They all
crime package, which is part of his overall
for his diet, however. Hagin returned to
knew. that Rob (Robert Portman) and I
drug program.
Cincinnati Friday with about 75 fewer
came from Cincinnati.
"I'm learning a lot, a whole lot," Port-
pounds than he took to Washington.
The two former Cincinnatians talked
man said. "It's an opportunity I'm glad I
Hagin and Portman both said Washing-
Photocopy-Preservation
about their Washington jobs and lives
didn't pass up.'
ton is great professionally, but they envi-
Friday outside Taft High School, while
For Hagin, the biggest surprise in his
sion returning to Cincinnati.
their boss spoke to students inside.
job was the number of hours he and other
"I miss Cincinnati a lot, said Portman.
"It was funny," Hagin said. "We sched-
staff members work. He is responsible for
"I miss the city and all the friends I have
ule trips like this all the time, but I
whittling requests for Bush's attention -
back here. And I would like to get back
checked and double checked everything
his office receives 700 to 1,000 weekly -
into law full-time in the future."
for this one. I wanted to make extra
to a manageable number that fits with the
Hagin, who worked for Federated De-
The Cincinnati Enquirer/John Curtey
certain that everything was going to go
president's priorities.
partment Stores Inc. and was an executive
White House aides and former Cincinnatians Joseph Hagin Jr., léft, and Robert
well here."
It helps, he said, that he has been.
at Chiquita Brands, expects to return "at
Portman both say Washington is good professionally, but they miss Cincinnati.
Portman, 34, formerly a specialist in
associated with Bush for almost 11 years.
some point, and probably permanently."
"V
"
ery good. Very
t was great: I
"I
thought it was a
t was very
thought it
"It
was all positive.
uplifting. I noticed he
guess (I most liked)
great speech. He hit
upbeat and positive.
covered a lot of
Everything he said
said General Electric
all of his
every point we
He talked about jobs
ground. I think he
was enthusiastic and
makes good engines
complimentary
wanted to hear about
and supporting our
lent a lot of insight. A
Cincinnati came out
and the country
remarks he made
- the economy,
youth. And, he spoke
fair amount of
looking like the fine
needs a good
about Cincinnati."
Panama."
very highly of the
humor; light and
city it is."
defense.
Cincinnati Youth
entertaining."
Collaborative."
Dorsey Jones, 50, Anderson
F
Saturday, January 13, 1990 THE CINCINNATI ENQUIRER A-5
The President in Cincinnati
President George Bush
Photocopy-Preservation
The Cincinnati Enquirer/Jim Callaway
President Bush makes a point Friday in his speech to the Greater Cincinnati Chamber of Commerce. Listening, from left, are Robert A. Taft II, Jim Scott, John Smale and Joe Head.
'America must be readv: America must be strong'
This is the text of President Bush's speech to the
Greater Cincinnati Chamber of Commerce Friday
afternoon.
I
t is fitting that, in the days leading up to the State
of the Union Address, we should meet again in
Cincinnati. The last time I visited was in
November, 1988, in the final days of the presidential
campaign. And earlier, Cincinnati was one of my last
stops before the convention in New Orleans. On the
trip before that we spent a morning at Procter and
Gamble's R&D facility. They taught me a lesson there
that's valuable to any politician: how to get the
toothpaste back in the tube.
All in all, I came here four times during the
presidential campaign I talked of America's future,
and of future generations. I talked of certain
principles. Told you I was ready to make the tough
calls - and to take the heat. And today I've come
back to Cincinnati totell you I'm ready to make good
on that pledge
Because up on Capitol Hill some important business
remains unfinished, promises have gone unfulfilled.
We sent responsible proposals to Congress in four
of America's most critical areas: capital gains,
America's children, clean air and combatting crime.
The Cincinnati En
In some cases, our proposals have been under
consideration with Congress for the better part of a
Mayor Charles Luken, center, and Chamber President John Williams, right, greet E
year. And these four issues are bogged down in the
jungles of Capitol Hill.
The clock is running. America's patience is running
Bush ready to confront Cong
out.
BY HOWARD WILKINSON
America wants it done right.
possible future inheritance."
America wants it done responsibly.
The Cincinnati Enquirer
Defense savings, Bush said, will
And America wants it done now.
What 1,500 Cincinnatians heard from President
the federal government's efforts
These four initiatives represent only part of the
Bush Friday in a Hyatt Regency Hotel ballroom
massive federal deficit.
way in which the events of 1989 will affect the coming
may be a shorthand version of his upcoming State
"Reducing the deficit isn't just
year. We've seen a lot of exhilarating changes in
of the Union address.
Bush said. "It's what the America
recent months that offer new hope for world peace.
Minus the references to Cincinnati chili and the
And it's the law.'
We like what's happening in Central Europe. But
Reds, that is.
Cincinnati City Councilman David
just as it would have been impossible six months ago
If Bush's 20-minute talk to the city's business
the Democrats in the audience for B
to predict those thunderous changes, it's impossible
and government leaders was a mini-State of the
the Greater Cincinnati Chamber of C
today to know what will unfold in the next six months
Union speech, some congressional Democrats may
that message does not square with
- let alone the next six years.
not like what they hear in the House chamber Jan.
publicized "commitment" to social
But in this world of change, one thing is certain:
30.
education and the environment.
America must be ready. America must be strong. And
Bush's talk was sparse on details, but long on
a strong America means not only a strong economy. It
how he plans to get his own way in this session of
"It's all very well for the presider
also means a strong defense - a ready and highly
Congress.
High School and talk about a cc
effective defense force.
The president made it clear that the billions to
education, but where's the action?"
And if proof of that were ever needed - we saw it
be saved in defense budget cuts in coming years
Bush's message seemed to be We
last month in the courage of our troops in Panama
should not be spread out to help fund social
the chamber audience. His speech W
I welcome the dynamic changes in Eastern Europe.
programs, as some congressional leaders have
by: applause eight times - althous
I strongly support Mr. Gorbachev's perestroika -
suggested.
biggest rounds were for presidential
and his commitment to peaceful change and openness
What is being packaged as a dividend is not
Cincinnati chili and newly elected B:
- but this is not a time when we should naively cut
money in the bank,' Bush said. "It is more like a
Famer Joe Morgan.
the muscle out of our defense posture.
Yet, some think all the answers to this year's
That's why we need what a majority in both houses of
century.
problems can be found by spending what they are
Congress has already voted for: a tax cut on capital
And it's no surprise the world's inv
calling in Washington a "peace dividend." That's like
gains.
following suit. The results are in: Ame
the next-of-kin who spend the inheritance before the
As the world turns to freer markets, this is not
choice.
will is read.
time to become wishy-washy about where America
We don't have to look elsewhere to
Unfortunately, what is being packaged as a
stands. The jury is no longer out. Markets work.
works. If you want to follow the smart
"dividend, "is not money in the bank. It.is more like a
Government controls don't
of the 1990s, go to where the Japanes
possible future inheritance. A legacy that will enable
And since the debate has all but ended on this
Europeans are going. Look at the U.S.
us to pass on a better world to our children. And like
issue, perhaps our most die-hard ideologues can now
the rest of the world calls "the Americ
an inheritance, it'is a special gift, a legacy not only of
turn their attention to the real question that divides
You saw it happen here in Cincinnat
prosperity but also security, earned by the hard work
America: Is it Texas or Cincinnati that produces the
Blue Chip City," where 150,000 more
and sacrifice of those who came before.
world's best chili? Of course this also is a question to
work than were working six years ago.
Of course, whenever a potential inheritance looms
be decided by the market
produced its miracle the old-fashioned
there are those eager to rush out and squander it
The economic challenge of the 90s is to make
American way. It's an old tradition her
to buy new things, to spend, spend, spend - spending
markets work better. And one of the best ways a
first opened his slaughterhouse in 1810
funds they don't yet have. Then the bills start coming.
government can do that is to do what people around
Fosdick was warned that meat couldn't
And the inheritance may not. And what was promised
the world are asking their governments to do: Get out
Cincinnati's climate. But he didn't know
as a bonus becomes a burden. In Washington, that
of the way, Less regulation, fewer mandated
couldn't be done. He continued his exp
burden comes in the form of a new spending program.
programs from Washington that tie the hands of our
he discovered the rock-salt process for
That's not going to happen. Because most
health-care providers, our educators, and so many
- and made this city the principal hog
mericans know we not only must maintain our
others as well.
world.
efenses, but still must reduce the deficit.
It works. Here at home, we in the midst of the
Renewing our emphasis on innovatic
Reducing the deficit isn't justa good idea: It's what
longest peacetime economic expansion in our nation's
ways modern Cincinnati has prospered.
e American people want. And it's the law.
history, an 86-month expansion that has created an
built a diverse economic base. Stripped
The way to reduce the deficit is to restrain
astonishing 20 million new jobs since 1982.
corporate fat. Renewed our emphasis o
ending growth and continue economic growth. It's
That's due to the genius of places like Cincinnati
Fortune says Cincinnati makes some of
it the time, as some like to say, to raise your taxes.
and the solid American values that have flourished
engines in the world.
The new budget must meet Gramm-Rudman
here and inspired the world from Central Europe to
Ultimately, these are the kind of effo
quirements. It must reduce barriers to economic
Central America.
determine how America fares in the con
wth. It must keep interest rates low. Because the
The whole world is watching. And the whole world
free-trade world of the 1990s. The way
t anti-poverty program is a good job. And the best
is ready.
is free people. The way of the future is f
program is a sound economy.
The headlines tell of other nations buying America:
And free people and free trade is what A
sound economy is a competitive economy. And to
That's good news - not bad. We've been urging our
about.
America competitive, to fuel our continuing
own people to "Buy American" for years - to invest
Of course, it's not enough that trade 1
m, we also need an infusion of new venture capital.
in the greatest job-creating machine of the 20th
It's also got to be fair.
Photocopy-Preservation
an
Our Educational Excellence Act" remains a
priority of my administration - sent to Congress
almost nine months ago. It calls for choice, flexibility,
and accountability. The time for study is past and the
time for action is now.
You in Cincinnati have acted, working to educate
and train our people for the 21st century. Three years
ago, business, educational and community leaders
here came together to take on a mighty task: reduce
The Cincinnati Enquirer/Jim Callaway
the numbers of students at risk - the staggering
$ Luken, center, and Chamber President John Williams, right, greet Bush
40% dropout rate in Cincinnati's public schools.
The result was the Cincinnati Youth Collaborative
ready to confront Congress
- an intensive people-to-people "mentoring"
program that many of you support, and that has
already seen some early success.
WILKINSON
possible future inheritance."
It has América talking. Your governor visited one
quirer
Defense savings, Bush said, will become part of
of the participating classrooms at McKinley Preschool
Cincinnatians heard from President
the federal government's efforts to reduce the
before coming out to the Education Summit I hosted
a Hyatt Regency Hotel ballroom
massive federal deficit.
in Virginia last fall. And earlier today I had an
hand version of his upcoming State
"Reducing the deficit isn't just a good idea,"
opportunity to see the tremendous programs at Taft
dress.
Bush said. It's what the American people want.
High School first-hand.
ferences to Cincinnati chili and the
And it's the law.
There are other matters that require urgent
Cincinnati City Councilman David Mann, one of
attention when Congress gets back later this month.
-minute talk to the city's business
Our Clean Air Act proposals recognize that in the
t leaders was a mini-State of the
the Democrats in the audience for Bush's speech to
the Greater Cincinnati Chamber of Commerce, said
emerging global economy, environmental destruction
ome congressional Democrats may
ey hear in the House chamber Jan.
that message does not square with Bush's highly
knows no borders, and that a healthy economy goes
hand-in-hand with a healthy environment.
publicized "commitment' to social issues, such as
education and the environment.
And a kinder, gentler environment also means a
was sparse on details, but long on
society where every man, woman and child can live
) get his own way in this session of
"It's all very well for the president to go to Taft
and prosper in an environment free from fear. That
High School and talk about a commitment to
means freedom from crime, and especially the
it made it clear that the billions to
education, but where's the action?" Mann asked.
increasingly violent crime that's been spawned by
fense budget cuts in coming years
Bush's message seemed to be well-received by
drug abuse and trafficking. On our anti-crime package
spread out to help fund social
the chamber audience. His speech was interrupted
as well, it's time for Congress to act.
some congressional leaders have
by applause eight times - although two of the
There is much to be done in the months ahead. But
biggest rounds were for presidential references to
as a new year begins, Americans should also pause to
ing packaged as a dividend is not
Cincinnati chili and newly elected Baseball Hall of
take some pride in what we have accomplished
ank,' Bush said. "It is more like a
Famer Joe Morgan
together. Let me suggest two areas.
At home, more than anything else, a kinder,
d what a majority in both houses of
century.
gentler nation is one in which everyone who wants a
dy voted for: a tax cut on capital
And it's no surprise the world's investors are
job, has a job. And today America has the lowest
following suit. The results are in: America is the
unemployment rate since 1973 - and Ohio has
rns to freer markets, this is not
choice.
reached is highest employment level in history.
shy-washy about where America
We don't have to look elsewhere to know what
Abroad, for more than 40 years, three generations
no longer out. Markets work.
works. If you want to follow the smart-money advice
of Americans have stood steadfast in an often hostile
ols don't.
of the 1990s, go to where the Japanese or the
and tumultuous world. Firm in our belief in America's
ebate has all but ended on this
Europeans are going. Look at the U.S.A. Look at what
destiny as leader of the free world, our spirit did not
most die-hard ideologues can now
the rest of the world calls "the American miracle.
falter, our troops did not flinch.
1 to the real question that divides
You saw it happen here in Cincinnati, U.S.A., "the
And today, after the watershed events of 1989, the
as or Cincinnati that produces the
Blue Chip City," where 150,000 more people are at
free world we're leading is growing bigger all the
Of course this also is a question to
work than were working six years ago. Cincinnati
time.
narket.
produced its miracle the old-fashioned way - the
hallenge of the '90s is to make
American way. It's an old tradition here. When he
In the past month, we saw democracy restored to
er. And one of the best ways a
first opened his slaughterhouse in 1810, Richard
the brave people of Panama. We saw the powerful
) that is to do what people around
Fosdick was warned that meat couldn't be cured in
brought before the bar of justice. And we took pride in
ig their governments to do: Get out
Cincinnati's climate. But he didn't know that it
the skill, courage and sacrifice of American soldiers.
egulation, fewer mandated
couldn't be done. He continued his experiments until
The Panamanian operation was conducted by
shington that tie the hands of our
he discovered the rock-salt process for curing meat
highly trained troops - the best trained troops in the
ers, our educators, and so many
- and made this city the principal hog market of the
world. But it is not simply training, it is patriotism and
world.
dedication. I went to two hospitals in San Antonio
at home, we're in the midst of the
Renewing our emphasis on innovation is one of the
(Texas) and talked to some of our wounded. I will
economic expansion in our nation's
ways modern Cincinnati has prospered. You've also
never, ever forget their spirit. One severely wounded
th expansion that has created an
built a diverse economic base. Stripped away
kid said to me: 'My only regret is I'm here - not
ion new jobs since 1982.
corporate fat. Renewed our emphasis on quality.
there with the others.'
e genius of places like Cincinnati
Fortune says Cincinnati makes some of the best jet
Pride in America has never been higher. And
rican values that have flourished
engines in the world.
somehow, it seems more than a coincidence: In the
he world from Central Europe to
Ultimately, these are the kind of efforts that will
same month, we hear that the bald eagle - the
determine how America fares in the competitive,
American eagle - may soon come off the
d is watching. And the whole world
free-trade world of the 1990s. The way of the future
endangered-species list. No matter what you've
is free people. The way of the future is free trade.
heard, I love my job.
ell of other nations buying America.
And free people and free trade is what America is all
When I see the exciting things going on in the
- not bad. We've been urging our
about
world, I know things are moving our way and I am
y American" for years - to invest
Of course, it's not enough that trade be "free."
proud to be at the helm.
creating machine of the 20th
It's also got to be fair.
God bless you and God bless America.
Photocopy-Preservation
The President
in
Cincinnati
Youth program hailed as 'point of light'
This is a text of President Bush's remarks to the
you raise their horizons to the stars. You give them
Taft High School student assembly.
the promise of a future bright with possibility.
T
aft High School and the city of Cincinnati are
I hope the adults here today are just the first of
showing the rest of the country what's possible
what will soon be thousands like you, helping the
when students and people in a community
young people of our community.
strive for excellence together.
You've got students, parents, schools, business and
One young woman here, Loretta Englemon,
religious groups, all united in a great enterprise: the
recently said, 'I know what I want out of life. I know
Cincinnati Youth Collaborative. It's a partnership that
where I'm going.' Every student here at Taft is at a
builds brighter futures - every day - one student at
point in life when there are a lot of choices to be
Photocopy-Preservation
a time.
made. Important choices.
I'd like to recognize a very special person, who's
And if life is the sum of the choices you make,
brought the CYC to life - a local heroine - Sister
whatever challenges you're facing, you understand
Jean Harrington. And let me offer congratulations and
that drugs only make them harder to handle. You
best wishes to the man who's taking over - Mr. John
already know how drugs destroy lives - a few of you
Bryant.
have seen it happen. Maybe you lost a friend.
You know, you've got something truly unique going
on here. On Jan. 29, I understand that every television
Or maybe you see or hear about drug dealers
station in Greater Cincinnati - all six broadcasting
making big money. But in the drug trade there are no:
companies and two cable channels - will be launching
The Cincinnati Enquirer/John Curley
benefits. No security. And no retirementiplan.
a two-hour program called a Future-Thon.
The presidential limousine arrives at Taft High School
Friday.
Sure, people have different ideas about success.
It's like a telethon for the schools of Cincinnati -
Some think it's measured by what's parked in your
but Futuré-Thon is asking for something more
precious than money. It's asking people to volunteer
driveway, or what's hanging in your closet. But real
their talents and their time to be role models - to
success is something else.
help Cincinnati students get the future they deserve.
An educated man or woman gains so much more.
And the kids of Cincinnati deserve the best.
With just a pen or a pencil, and a desire to learn, there
If you've ever thought school was a waste of time,
are no limits to success.
you ought to think about talking to one of the students
in the CYC. They'll tell you better than I can, what
Maybe it has to do with finding your talents. Using
this program means,
them to reach your fullest potential, whatever path
It means scholarships that add up to more than a
you choose. Working to make a difference for yourself
quarter of a million dollars. It means skills you can
- and those around you.
count on, and take to a job the day after you graduate
It means classes for collège entrance exams, that have
If you stay in school, you'll find that the key to
sent scores up by 25%. A new child care center,
success is right under your hat. And if you keep
opening next fall. And training in computers, for every
struggling to live up to your own expectations, you'll
student who goes to Taft.
find the strength to succeed deep in your heart.
But it offers something even more important.
Because with every friendship you build with a CYC
That's why I'm pleased to announce today that the
mentor - and with every hour you spend with a tutor
Cincinnati Youth Collaborative is the 40th White
- you're gaining more than skills.
House Daily 'Point Of Light.' On behalf of the Nation,
You're gathering power. Purpose. A friendship you
thank you for showing that from now on in America,
can count on. And once you have that, you can never
John E. Pepper
any definition of a successful life must include serving
be stopped - never denied the potential that's yours,
President/Bush
others.
and the success that's waiting for you.
Let me offer special thanks to those adults who are
You go to a great school - in a wonderful town
serving as CYC mentors. Every adult in America can
in the greatest Nation on the face of the earth.
gain SO much, by developing a special relationship with
The Cincinnati Enquirer/Gary Landers
a young person. When you lift the spirits of the young,
Your dreams are within your reach. May every
President Bush shares lunch with John Pepper, president of Procter & Gamble Co.
single one of them come true.
in the greatest Nation on the face of the earth.
The Cincinnati Enquirer/Gary Landers
Your dreams are within your reach. May every
sident of Procter & Gamble Co.
single one of them come true.
fer/Gary Landers
ike
es
nts
is a compo-
i Youth Col-
tive effort of
cials and ed-
: students to
the teen-ag-
in the men-
seemed to
S.
you've got
?" he asked
ckett of his
rt.
ve always
t together,"
drawing a
ish.
I 1,000 Taft
ed students
as "what's
way or hang-
but as be-
adult.
lando Hen-
his visit will
ge there is
re willing to
Iman Peter
1 the nearly
Taft today
Monday -
V how much
The Cincinnati Enquirer/Gary Landers
do."
Bush with Taft Principal Orlando Henderson and Sister Jean Patrice Harrington,
executive director of Cincinnati Youth Collaborative.
Photocopy-Preservation
Let me offer special thanks to those adults who are
serving as CYC mentors. Every adult in America can
gain so much, by developing a special relationship with
The
a young person. When you lift the spirits of the young,
President Bush shares lunch with John Pepper, president of Procter & Gamble
you've got somebody who cares?"
Taft student Anthony Crockett, right, with his mentor, John Lambert. Bush asked Crockett, "Do you feel like
The Cincinnati Enquirer/Gary Landers
Cheers, chuckles
from Taft students
BY KRISTA RAMSEY
ance. The program is a compo-
The Cincinnati Enquirer
nent of the Cincinnati Youth Col-
Taft High School students
laborative, a cooperative effort of
laughed at President Bush's
business leaders, officials and ed-
jokes, called his answers to their
ucators to encourage students to
finish school.
questions sincere and gave him a
standing, cheering ovation when
Bush pummeled the teen-ag-
he ended his visit Friday.
ers with questions on the men-
"He came across as being
toring program. He seemed to
friendly and really caring," said
relish honest answers.
17-year-old Michael Blanchard,
Do you feel like you've got
one of 10 students to meet with
somebody who cares?" he asked
Bush for a question-and-answer
senior Anthony Crockett of his
session during his two-hour visit.
mentor, John Lambert.
"I knew he was kind of friend-
Yeah, but I've always
ly, but when he's in the same
thought I had my act together,"
returned Crockett, drawing a
room joking with you and asking
hearty laugh from Bush.
you specific questions, you felt
you really mattered."
In a message to all 1,000 Taft
students, Bush urged students
Tenth-grader Vickie Williams,
not to view success as "what's
smiling, said, "He told me he
parked in your driveway or hang-
didn't want to put me on the spot
with questions, but he did.
ing in your closet," but as be-
I
coming an educated adult.
liked it that he didn't talk down
Taft Principal Orlando Hen-
to us.
derson said, "I think his visit will
Initially sober-faced and visi-
put out the message there is
The Cincinnati Enquirer/Gary Landers
bly tense, the students soon were
hope if the students are willing to
Vickie Williams smiles as she asks
at ease with the president, who
work."
Bush a question during his visit at Taft.
answered questions directly and
Cincinnati Councilman Peter
"I liked it that he didn't talk down to
asked many of his own.
Strauss, said, "From the nearly
us," she said.
Of special interest to Bush
100% attendance at Taft today
was the school's mentoring pro-
to whatever it is Monday -
gram, which matches students to
that's how we'll know how much
adult volunteers for career guid-
Bush with
work we still have to do."
executive C
Photocopy-Preservation
Photocopy-Preservation
F
Saturday, January 13, 1990 THE CINCINNATI ENQUIRER
A-7
The President in Cincinnati
MR
ESIDEN
THE
The Cincinnati Enquirer/Gary Landers
President Bush trades questions and answers Friday with Taft High School students and their mentors involved in the Cincinnati Youth Collaborative program.
The Cincinnati Enquirer/Gary Landers
Students talk with Bush after their mid-morning session with him in the Taft library.
Good writing biv notats.
its of Walter of matty"
aritice
The Cincinnati Enquirer/Gary Landers
Sister Jean Patrice Harrington, executive director, Cincinnati Youth Collaborative, introduces Bush at Taft. Behind from left, are
Virginia Griffin, school board president; David Phillips, collaborative deputy director; and Charles Hughes, school board vice president.
Photocopy-Preservation
The Cincinnati Enquirer/John Curley
Cincinnati Reds president and chief executive officer Marge
Schott escorted by unsigned Reds pitcher Tom Browning arrive
for Bush's speech at Taft.
*
WELCOME
PRESIDENT
*
the
BUSH
The Cincinnati Enquirer/Gary Landers
notats
FORMADAL
The Cincinnati Enquirer/Gary Landers
Bush enters the Taft High School library flanked by
Secret Servicemen.
The Cincinnati Enquirer/Gary Landers
troduces Bush at Taft. Behind from left, are
and Charles Hughes, school board vice president.
Photocopy-Preservation