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Holland America Wafer Co. 7/27/92 [OA 7577]
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Holland America Wafer Co. 7/27/92 [OA 7577]
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MARKER
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:
13823
Folder ID Number:
13823-004
Folder Title:
Holland America Wafer Co. 7/27/92 [OA 7577]
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26
22
6
6
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:01AM ;
4562983-
2024566218:# 2
(Provost/Ferguson/Grossman)
July 23, 1992
MICHIGAN
Draft One: 7:00 AM
PRESIDENTIAL REMARKS: DUTCH TWINS PLANT
WYOMING, MICHIGAN
JULY 27, 1992
12:00 PM
Thank you and good afternoon everyone.
(Acknowledgments)
Americans may not realize it when they reach for cereal on
the shelves, but our food industry provides more food for less,
than any other nation.
This company is one reason we are the world's leader. So
I'm pleased to announce that Stu and John Vander Heide have
recruited me for a national crusade. Starting today ... I will
not only argue passionately that broccoli's benefits are
overblown ... but that sugar wafers should be one of the four
essential ingredients in a healthy diet. 11
I'm told that this company was the originator of something
called: "The Survival Biscuit." It was one of the tokens of the
Cold War -- a bit of nourishment to fill your stomach as you
huddled somewhere in a bomb shelter, in case the unthinkable
became tragically real.
While it may not be great for survival biscuit sales, the
Cold War is, thankfully, over. Survival biscuits have gone the
way of the doomsday clock, "Failsafe" movies, and "duck and cover
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:01AM ;
4562983-
2024566218:# 3
2
drills." Today, America is safer than before. Safer than we
were a decade ago. Safer than we were a year ago. Safer than we
were just a few weeks ago, when I sat down with Boris Yeltsin and
agreed to eliminate some of the world's most dangerous nuclear
weapons.
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
economy. How to make our families more like the Waltons, and a
little bit less like the Simpsons. And how to take back our
streets from the crack dealers and the criminals.
This election year, we are told, is about how we can change
to meet these challenges. But this election is not just about
-
change, because change has a flip side. It's called trust. When
you get down to it, this election will be like every other. When
you go into that voting booth and pull the curtain behind you:
"trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or asking how we should stand up to a
bully halfway around the world. The American people need to know
that the man who answers that phone has the experience, the
seasoning, to do the right thing.
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:02AM ;
4562983-
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3
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is more even
than that. I'm a Texan -- raised my children there, built my
business there. I believe our heartbeat can be felt in places
like Wyoming, Michigan
...
not Washington, D.C. And so I state
my claim in a simple philosophy: to lead a great nation you must
first trust the people you lead.
If you look at almost every important issue we face ... you
see a clear choice -- a choice between those who put their faith
in average Americans --- and those who put their faith in
government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is --- "who
will care for the kids while we're working?" A few years ago,
Washington wanted to help, but their idea was to rock the cradle
with the heavy hand of bureaucracy. All the plans boiled down to
creating some new kind of government apparatus, like a Pentagon
for child care.
I fought for a different approach and won. Our landmark
legislation allows parents -- not the government -- to decide
whether your children are cared for in school, a relative's home,
or church.
When it comes to raising children, I say: why not trust the
people?
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:02AM ;
4562983-
2024566218:# 5
4
What about our education system? To renew America we must
renew our schools, we all know this, but money alone won't do it.
We already spend more money per student than almost any other
country; and our kids still rank near the bottom in crucial
subjects like math and science. Again: a lot of ideas floating
around, most of them to pump more tax money into the same system.
I say try something different. Open up schools to
competition, and trust you to decide whether you want your kids
to learn in a public school, a private school or religious
school.
When it comes to education, again I say: "why not trust the
people?"
What about government regulation? Sure, some of it is
necessary, even essential. But if you believe that there is a
government solution to every problem, an alphabet agency for
every issue, than you look at regulation not as a necessary evil,
but as a necessary way to reign in people's evil tendencies. The
results can be crazy, as this story proves.
The time had come recently for a government agency to
update it's rules on hard hats. That's right: hard hats. And
someone in that agency stumbled upon a potential national crisis
--- workers being infected from putting someone else's hard hat
on their head. The alarms went off. The bureaucratic blood
boiled. One small fact was overlooked. There wasn't a single
documented case, anywhere in the United States, of anyone getting
infected from wearing someone else's hard hat.
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:03AM ;
4562983-
2024566218;# 6
5
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
disinfected before one worker passed it to another. Estimated
cost to business: $13 million a year. Measurable benefit:
slightly less than zero.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
the books, and said: we think America can survive, without hard
hat regulation.
But can you imagine what might have happened, if these
enterprising regulators had made their way into the vast,
unregulated territory of lunch pails and thermos bottles?//
Some believe the solution to our problems is more government
-
regulation. I take a different view. I've put a moratorium on
new federal regulation, to give businesses like this one room to
breathe, and grow and create jobs. It's a matter of trust ... of
putting people ahead of government.
And when it comes to the most pressing issue of this
election year -- revving up our economy -- forgetting this idea
is not just a nuisance; it can be downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete ... now that everyone is playing our
game? Despite all the criticism you've heard lately, keep in
mind a few facts. We are the largest economy in the world.
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:03AM ;
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6
Inflation -- the Jesse James who robs the middle class of dreams
-- has been put safely behind bars. The last time interest rates
stayed this low, the Brady Bunch "wasn't weren't even on television.
Despite all the stories about our problems, our workers are still
the most productive in the world -- more productive than the
English, the Germans, the Japanese.
But while our economy is growing, it must grow faster. The
question is: How? The other side suggests a simple two-part
solution. First, raise government spending! And then: raise
taxes!
Now as you evaluate their idea, keep this in mind. Here in
Michigan, you already work 128 days just to pay your taxes --
before you earn a single dime to spend on your family. Does
anyone want to go for 129?//
All this talk of spending and taxes causes me to wonder
...
if the other side is a little hard of hearing. Abraham Lincoln
spoke of government "of the people, by the people. for the
people. " But they seem to keep saying ... of the government. by
the government and for the government.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense, comprehensive plan to get
this economy moving faster, righ now. The plan includes tax
initiatives to encourage businesses to hire new workers and
breaks for young families who want to buy a first home. Half a
million jobs would have been created, if Congress had acted right
away.
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:04AM ;
4562983-
2024566218;# 8
7
But they didn't. Instead, Congress sent back what you
might call an "ant-trust" program. New government spending, and
^
new taxes.
So I sent their plan back. I'm still waiting
...
almost 200
days later. This economic recovery plan is being held hostage
and the ransom note reads -- "wait till after the election."
Today I say to the Congress and the Senate especially, release
the economy, approve this jobs program, and put America back to
work ... now. / /
You see
... it all comes down to a question of trust. I
trust you to spend and save your money more wisely than any
budget planner in Washington.
You'll say, this is common sense, and I agree. But there's
a certain type of person attracted to government for whom the
word "trust" has a strange meaning. Most of them have spent
their lives in government, and don't have much experience in the
real world.
They say they want to ... "put people first." But if you
look real close at what they're proposing
...
the people they put
first are all on a government payroll. 11
A leader of a free people must understand that government
can not only help, it can hinder. He must have the confidence to
say: "I trust you. I trust the people.
And ultimately, you must decide who you trust -- who has
the experience - the ideals and ideas -- to find that delicate
balance.
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:04AM ;
4562983-
2024566218;# 9
8
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be people whose only
enthusiasm is for government -- who measure progress by programs
enacted and special interests satisfied.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you, and God bless the United States
of America.
#
FACT CHECK COPY
(Provost/Ferguson/Grossman)
July 23, 1992
MICHIGAN
Draft One: 7:00 AM
Holland American wafer Co.
PRESIDENTIAL REMARKS: DUTCH TWINS PLANT
WYOMING, MICHIGAN
JULY 27, 1992
12:00 PM
Thank you and good afternoon everyone.
(Acknowledgments)
Americans may not realize it when they reach for cereal on
the supermarket shelves
but our food industry
...
provides
more food for less
...
than any other nation.
Holland America
Dutch Twins is one reason we are a world leader. So I'm
Stu &
E
Vander She
ve
pleased to announce that John Vander Heide has recruited me for a
(616)243-
Vafeide
national crusade. Starting today
...
I will not only argue
passionately that broccoli's benefits are overblown
...
but that
(sugar wafers) should be one of the four essential ingredients in
0191
a healthy diet. //
This factory is a symbol of the dramatic changes that have
occurred around the world.
John tells me that this company was the originator of
something called ... "The Survival Biscuit." It was one of the
tokens of the Cold War -- a bit of nourishment to fill your
stomach as you huddled somewhere in a bomb shelter, in case the
unthinkable became tragically real.
2
While it may not be great for survival biscuit sales
the
Cold War is, thankfully, over. Survival biscuits have gone the
way of the doomsday clock, "Failsafe" movies, bomb shelters, and
"duck and cover drills. Today
America is safer than before.
Safer than we were a decade ago. Safer than we were a year ago.
July
more than a
Safer than we were just a few months ago
when I sat down with
June 17
Boris Yeltsin and eliminated nuclear weapons.
signing
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
economy. How to make our families more like the Waltons than the
Simpsons. And how to take back our streets from the crack
dealers and the criminals.
This election year
we are told
is about how we can
change to meet these challenges. But this election is not just
about change, because change has a flip side. It's called trust.
When you get down to it, this election will be like every other
in history. When you go into that voting booth and pull the
curtain behind you: "trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or the invasion of an ally halfway around
the world. The American people need to know that the man who
3
answers the phone has the experience, the seasoning, to do the
right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is more even
than that. I'm a Texan -- raised my children there, built my
business. I see America as an endless tapestry of people,
families and communities. Our heartbeat can be felt in places
like Wyoming
...
not Washington. And so I believe in a simple
philosophy: to lead a great nation you must first trust the
people you lead.
If you look at almost every important issue we face
...
you
see a clear choice in philosophy
a choice between those who
put their faith in average Americans
...
and those who put their
faith in government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is
...
"who
will care for the kids while we're working?" A few years ago
Washington wanted to help
...
but the idea was to rock the
cradle with the heavy hand of the bureaucracy. All the plans
boiled down to creating some new kind of government apparatus
...
like a Pentagon for child care.
I fought for a different approach
...
and
won.
Our landmark
legislation allows parents
not the government
to decide
whether your children are cared for in a school
a relative's
home
or in church.
April 1991 18,
332 more on oup in 1991 than we did
Not Iduce
in 1981 - in real constant dollars
pg.35
Strategy
That we've seen a 33%
When it comes to raising children
I say: trust the
parents.
What about our education system? To renew America we must
we all know this
1965-
Dohn
DOE
renew our schools
but money alone won't
do it. Over the past twenty-five years, education spending has
1990
more than doubled avall
increased xx; while achievement scores have dropped by
remained virtually Hat.
you
Elema
See
Again: a lot of ideas floating around, most of them to pump more
me
1
tax money into the same system.
I say try something different. Open up schools to
competition
and trust you to decide whether you want your
kids to learn in a public school, a private school or religious
school.
When it comes to education
again I say: "trust the
parents. "
One more example: health care. We have the finest quality
HHS
health four care in the world -- but costs are through the roof.
Thirty-seven million Americans
a population larger than the
Pop of CA
state of California
are without coverage today, and millions
more are worried about losing the coverage they have.
in 11992 million
We have to change the system. Some propose versions of
socialized medicine
letting the federal government play
doctor.
I say
take a different way. Give tax credits so people
without coverage can buy it
and tax incentives so that small
businesses can pool their resources and cover more of their
5
people. // When it comes to deciding what doctor? What hospital?
I say
...
trust the people to choose.
In every case, it's a matter of trust -- trusting Americans
to make their own choices.
And when it comes to the most
pressing issue of this election year -- revving up our economy -
- forgetting this idea is not just a nuisance; it can be
downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete
now that everyone is playing our
game? I know we can. Keep in mind
we are the largest
economy in the world. Inflation
the Willie Sutton who robs
the middle class of dreams
has been put safely behind bars. Boskin
The last time interest rates were stayed this low
the Brady Bunch
hadny started Rikuns
utah
wasn't even on television Despite all the stories about our
problems
...
our workers are still the most productive in the
world -- more productive than the English, the Germans, the
Japanese.
But while our economy is growing
...
it must grow faster.
The question is: how do we do it? The other side suggests a
simple two-part solution. First, jack up government spending!
And then: raise taxes!
Now as you evaluate their idea, keep this in mind. Here in
Michigan, whether you like it or not, you already work 128 days
just to pay your taxes -- before you earn a single dime to spend
6
on your family. I don't think I have to ask -- does anyone want
to go for 129?
All this talk of spending and taxes causes me to wonder
...
if the other side is a little hard of hearing. The Constitution
says we want government "of the people, by the people, for the
people. " But they keep wanting to say
...
government of the
people, by the people, on the people.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense plan to jumpstart the
economy, help us over the bumps in the road.
I wanted to free up the energies of our entrepreneurs with
I wanted
Johns
tax cuts; to give a $5,000 break to young couples trying to buy
their first home. Here in Michigan, that $5,000 would have been
of
10
the
equal to XX months of mortgage payments.
Gov.
If they had passed it when I asked them to
we could have
Darman
Effice
created 500,000 jobs.
wpost Business Sect FI
Boskin
So I sent my plan up to Capitol Hill. And I probably don't
have to tell you what I got back: a raft of new spending and --
you guessed it -- new taxes.
I sent their plan back. I told them to try again. And I'm
still waiting. And I'm beginning to get the distinct impression
that the only way to get rid of the deadlock in Washington
is to clean a little deadwood in Congress.
Send me a new Congress that will work with me
...
and I'll
get this economy moving faster than Desmond Howard.
7
It all comes down to a question of trust. I trust you to
spend and save your money more wisely than any budget planner in
Washington.
Fortunately, I've been able to do some things on my own to
try and jump start the economy. Earlier this year, I announced a
moratorium on federal regulations -- to untangle the red tape
San 28 sorn
that ties so many businesses in knots.
Is it necessary? Listen to this story.
The time had come recently for a government agency to update
it's rules on hard hats. That's right: hard hats. And someone
in that agency stumbled upon a potential national crisis ---
John Morell OMB
workers being infected from hard hats. The alarms went off. The
bureaucratic blood boiled. One small fact was overlooked. There
wasn't a single documented case, anywhere in the United States,
x6880
of anyone getting infected from a hard hat.
7340
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
disinfected before one worker passed it to another. Estimated
cost to business: $60 million a year. Measurable benefit:
slightly less than zero.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
the books, and said: we think America can survive
without
hard hat regulation.
13 million
eyeafasses, gloves
8
But can you imagine what might have happened
...
if these
enterprising regulator guys had made their way into the vast,
territory of lunch pails and thermos bottles?
You'll say this is all common sense, and I agree. But
there's a certain type of person attracted to government for whom
the word "trust" has a strange meaning. Most of them have spent
their lives in government, and don't have much experience in the
real world.
They say they want to
"put people first. " But if you
look closely
the people they put first are all on a
government payroll.
A trustworthy leader of a free people must have the
confidence to say: "I trust you." I trust the people.
The point is not to let people fend for themselves.
Americans are a generous people; and we will never shirk our
responsibilities. But help must be offered with an eye to
government's power not only to help but to hinder.
And you must decide who you trust -- who has the
experience, the ideals and ideas -- to find that delicate
balance.
It must be someone who understands the essential fact of
American prosperity -- no government ever created a single job
(although it did keep Johnny Carson around for 30 years.)
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
9
from Harvard, or a gaggle of social scientists from a Washington
think tank.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you.
#
#
Richard Porten-UP hardhats has
wise Outlook
Best selling card
Rarest Card
most valuable
New claims for
Washington Post Staff Writer
percent OI the STOCK in the combined missue com-
unemployment benefits
pany, but will have no seats on its board of direc-
n
French electronics firm Thomson-CSF yester-
jumped an unexpectedly sharp
tors, no role in the company's management and
day conceded defeat in its effort to break into the
19,000 in the latest week, the
no assurance of the strategic alliance that Thom-
ly
U.S. defense industry and will settle for a passive
son had hoped would increase its presence in the
N
government said, showing
10 percent interest in a Dallas missile company
U.S. defense market.
persistent weakness in the
er
the government said had too much sensitive mili-
"It's a long way from where we started, but
th
labor market.
tary technology to fall under foreign control.
considering the pressures, it is about as good as
Weirton Steel said it will
Under the terms of a revised agreement, New
we are gong to get," a Thomson-CSF official said
L'
reduce its work force of 6,800
York-based Loral Corp. would buy 90 percent of
yesterday. Among those pressures is a $20 mil-
H
by 25 percent over the next
LTV Corp.'s missile division, adding it to its own,
lion deposit that Thomson-CSF would forfeit if it
th
five years as part of a plan to
much smaller missile business in Newport Beach,
does not complete a successful purchase of the
re
keep it competitive and
Calif. The combined operations, to be consolidat-
aerospace division over the next several weeks.
th
ed at LTV's facility in Texas, would have $1.3
ensure its long-term viability.
The proposed purchases by Loral and Thom-
billion in sales and nearly 10,000 employees.
son-CSF must be approved by a federal bank-
be
More news items, Page 2
Bernard Schwartz, Loral's chairman, said
ruptcy court in Manhattan, which has been over-
va
White House
BUDGET DEFICIT PRESENT AND FUTURE
Clinton
IN BILLIONS OF DOLLARS
Budget Update
$400
Spot-Check F
Rips Congress
300
By Brett D. Fr
Washington Post Sta
Bentsen: Review
200
NEW YORK, July 2
A Political Report
ness executives have tr
ported Republican pre
dates, many of those V
100
Ross Perot say they
By Steven Mufson
ward the Democratic
Washington Post Staff Writer
dates, Gov. Bill Clinto
Top Bush administration econom-
0
Gore, rather than to Pr
ic aides yesterday seized on a usually
'88
'89
'90
'91
'92
'93
'94
'95
'96
'97
'98
Interviews with 12
dry midyear update of budget as-
Estimates
porters of Perot found
sumptions to blast Congress for fail-
SOURCE: Office of Management & Budget
toward Clinton, two 1
ing to adopt the president's budget
THE WASHINGTON POST
two inclined to vote for
proposals. Democrats accused the
Darman said, "Congressional inac-
president of recycling the same
blame Congress for his failed leader-
of the two leaning tow:
flawed economic plan.
tion has made the deficit very much
ship. His economic motto is clear:
to give or raise money f
worse than it would have been had
"If the president's full program
blame and more of the same."
er. Most of the 12 sup
the president's program been enact-
1988.
had been adopted in 1989, we
ed." Though the mid-session budget
For the current fiscal year, OMB
The executives and
wouldn't have had the recession,"
review is usually about 50 pages
said the refusal of Congress to ap-
also said that many of tl
said Richard G. Darman, director of
long, this year it ran over 400 pages,
propriate $46.8 billion in new money
acquaintances who had
the Office of Management and Budg-
repeating word-for-word entire sec-
for the bailout of failed savings and
ot were leaning toward
et, who said he was simply deliver-
tions of the president's February
loan institutions will make the deficit
ing the "facts." Michael J. Boskin,
budget proposal.
somewhat smaller than the adminis-
chairman of the President's Council
Sen. Lloyd Bentsen (D-Tex.),
tration predicted in February. Dar-
of Economic Advisers, said that the
chairman of the Senate Finance
man said that the 1992 deficit would
economy would have generated an-
Committee, responded by saying
be $333.5 billion, $66.2 billion less
Bush Ba
other half-million jobs this year if
that Darman's mid-session review
than the original forecast but still
Congress had passed the president's
was "not an economic report. It's a
the biggest deficit in the nation's his-
plan.
political report." Bentsen said Demo-
tory.
By Frank Swc
At a press conference at the
crats in Congress had not acted on
The reduction in this year's deficit
Washington Post Staff
White House, Darman delivered a
the administration's plan because it
will make future deficits bigger. The
The Bush administra
five-minute attack against Congress,
was "a budget buster papered over
deficit forecast by OMB for fiscal
with organized labor
summing up by saying: "In a single
with accounting gimmicks."
year 1994 was raised by $62 billion
Court battle over the ri
sentence: The Congress has failed to
Democratic presidential nominee
to $274.2 billion.
deliver. There is much posturing
ments from city halls
Bill Clinton issued a statement call-
Despite Darman's verbal assault
about interests in economic growth,
House to effectively bar
ing the OMB review "more of the
on Congress, the mid-session review
investment in the future, crime re-
tractors from bidding on
same trickle-down economics from
indicates that even if Congress
duction, health reform and deficit
lars worth of public COI
the White House. Instead of a seri-
adopts the president's economic pro-
control. But when it comes to con-
jects.
ous and constructive plan for eco-
posals, the deficit problem would re-
structive congressional action, on a
In a case that echoe
nomic change, the president has re-
main. OMB's new estimates show
scale of 0 to 10, the total is closer to
1988 presidential elect
cycled his old and meager tax
that budget deficits are expected to
zero."
and the controversy OVE
package and sought once again to
See BUDGET, F2, Col. 1
of Boston Harbor, the
-Congress
The mid-session review listed "op-
CONSTRUCTION, From F1
ministration brief "a very
tions," most of them taken from pro-
as big a deal on this [union
posals by Panetta, the Heritage
eliminate any cost advantage a non-
for ABC."
BUDGET, From F1
Foundation or the Congressional
union contractor might have in com-
petitive bidding.
The Supreme Court is
rise sharply again at the end of the
Budget Office.
In the past, the administration has
In response to the administration's
hear oral arguments this
decade.
gone out of its way to avoid the ap-
stand, the Association of Builders and
case, Building and Cc
Assuming passage of the presi-
Contractors, which represents major
Trades Council of the I
dent's plan, OMB raised its budget
pearance of endorsing those propos-
nonunion construction companies, an-
District v. Associated B
deficit estimates to $236.7 billion for
als. Testimony given by Darman
1997, and to $273.4 billion for 1998.
earlier this year discussed those
nounced yesterday that it was with-
Contractors of Massachu
caps with the disclaimer that "specif-
holding its planned endorsement of
Island, and is expected to
The increases are driven by expec-
President Bush for reelection.
ing early next year.
ic options included are illustrative"
ted increases in spending for Medi-
and added that "inclusion of a partic-
"I want the president to know that
care, Medicaid and Social Security.
ular option here does not necessarily
ABC and its 16,000 member firms
While the administration was
imply support for such an option-
cannot support an individual who has
blasting Congress, Rep. Leon Panet-
and should not be construed to imply
turned his back on the principles of
ta (D-Calif.) unveiled a plan to elimi-
support-by the administration.
free enterprise," ABC President Ste-
'92 INFINIT
nate the deficit over five years by
ven Westra said in a prepared state-
cutting spending and raising taxes
Even if the cap were put in place,
ment. He said the association would be
by a total of $750 billion. The pro-
however, the budget would still not
contacting "a substantial number of
posal goes far beyond anything ad-
be balanced according to the OMB
nonmember firms and industry
vanced by the White House.
forecast. Darman included a line that
groups" about the administration's ac-
Darman has argued that the ad-
balances the budget with such a cap,
tion, which he said was "indefensible."
ministration can tackle the budget
but he could only do so by using
The brief was filed little more than
deficit without raising taxes and
more optimistic economic assump-
24 hours after Westra and Joe Ivey,
$37.9
without touching-or taxing-So-
tions of economic growth of 4 per-
ABC president-elect, met at the White
cial Security benefits. Yesterday, he
cent in 1993 and 1994, and 3.2 per-
House with Boyden Gray, the presi-
cent in 1995 and 1996.
dent's chief counsel, in an eleventh-
again insisted that the deficit could
Those forecasts have not been en-
hour effort to get the administration to
ONLY 36 MO
be eliminated if Congress capped in-
dorsed by the president's Council of
change its position. Charles Hawkins,
creases in certain spending catego-
ries to the rate of increase in the
Economic Advisers. The CEA Chair-
ABC's legislative director, said Gray
population. The cap would cover
man Boskin's latest forecasts, issued
told the two men he did not think he
$499
yesterday as part of the mid-session
could get the solicitor general to
programs such as Medicare, Medic-
Four Door Sedan, ABS
review, are for 3 percent growth
change his position.
aid and other expenditures that in-
Driver's Air Bag. Leat
from 1993 through 1995, and 2.9
In its brief, the administration ar-
Conditioning, Power S
crease without new congressional
authorizations.
percent in 1996.
gues that federal labor law does not
Stereo System, Security
preclude such agreements and that
Year 70,000 Mile W
Boskin also said that for the re-
But while the administration has
Sunroof & More
mainder of this year, the economy
Congress did not intend to place re-
discussed such a spending cap, it has
Leases based on 36 month, dosed end lease. A lec
would not change dramatically. He
strictions on local government powers.
freight of $400, processing fee of $125 & $2000 CO.
never formally proposed legislation.
The solicitor general asked the Su-
trade due at lease inception. Total of payments SI
said that the economy would grow
miles per year allowance, 15c per mile over allow.
Nor has the administration explained
2.7 percent in 1992 and that unem-
preme Court to overturn a ruling by
pre-determined rate of $24,420 of leose end. Sub
Lease payment indudes Va. person
what measures would be needed to
ployment would drop slightly, but
the First Circuit Court of Appeals that
Doss not include Md or DC use tax.
bring those programs within those
still remain around 7.3 percent by
the National Labor Relations Act does
spending limits.
the end of the year.
not allow governments to require that
ROSENTI
contractors adhere to union standards.
Vicki Bor, an attorney representing
N
F
N
the unions in the case, called the ad-
8527 Leesburg
Tysons Corner, Vi
Buffett's Company Acquires
(703) 556-6
Stake in General Dynamics
ALFA ROMEO
SPECIAL CLEARANCE PRICE
DYNAMICS, From F1
piggybacks on Buffett's investments.
This is a 1991 ALFA ROMEO 164
actions with shareholders, Anders
Buffett's Berkshire Hathway
increased the company's quarterly
Corp. is a publicly traded company
Anti Lock Brakes
dividends and recently completed a
that operates more like a mutual
Driver's Side Airbag
fund.
buyback of 30 percent of the compa-
Bosch Fuel-Injection
ny's outstanding stock.
In addition to General Dynamics,
3 liter V-6 Engine
it has significant stakes in a number
3 year or 36,000 mil
General Dynamics' stock, which
of other Washington area compa-
ALFA ROMEO
$24,495
was trading as low as $24 in early
nies, including the Federal National
Assurance Program
1991, has tripled in value since.
Mortgage Association, Geico Corp.,
*Taxes, tags and Freight additional. Expiration 7/31/92
Fitzgerald's Colonial
provides you with
This hard-nosed emphasis on en-
1 at this price, Stock #8769
everytime yours is in for
The Washington Post Co. and USAir
and gives you 10 year.unll
hancing shareholder value is precise-
mileage buyer protection
Group Inc., making Buffett perhaps
FITZGERALD
ly what Buffett looks for in making
the most powerful investor in the lo-
his investments, according to Mi-
cal economy.
COLONIAL ALI
chael Lamb of Wealth Monitors Inc.,
Berkshire Hathaway shares yes-
11411 Rockville Pike
a private research firm that often
terday closed unchanged at $9,100.
Rockville, MD
(301) 881-4
MEMORANDUM FOR ANDY FERGUSON
FROM:
JAG
SUBJECT:
AVERAGE MICHIGAN MORTGAGE PAYMENTS
John Nevas on Gov. Engler's staff has given me the following
information:
The average price of a Michigan home is $90,000. The
mortgage is therefore $75,000. The monthly payment would be
$550. Therefore, our proposed $5,000 first time homebuyers
tax credit would cover 9 or 10 months of mortgage payments.
17 July 1992
MEMORANDUM FOR STEVE PROVOST
CHRISTINA MARTIN
FROM:
JEANNIE BUNTON JB
SUBJECT:
FACT CHECK CHANGES [UTAH]
DNC PLATFORM: Paula Nowlankowski, dir of research at RNC [202-
863-8018] said "can neither deny or confirm that the final DNC
Platform as approved at convention has God in it. She said the
Dems did reject referencing God in the platform during the
hearing process. See attached Washington Times article.
[p. 8 staffed version]
David O. McKay quote should read:
"No other success can compensate for failure in the home."
We found that he said it, can't confirm when -- he was president
of the Church of Jesus Christ of Latter Day Saints 1953-1970.
[p. 10 staffed version]
Those of you at BYU
...
are here to be [delete specific reference
to summer school program because that is the motto for the entire
university, not just the summer school program].
MISC.
The Brady Bunch went off the air in 1973 / re-runs started in
1976-77. So factually we're ok with that one.
J
ACKS: we need to mention the BYU faculty -- according to advance
there will be some faculty in audience -- 24 people on DAIS.
Richard Harrington will be at event according to advance, as well
as Lt. Gov. Val Oveson, and Gov. Bangerter.
Sen. Garn is retiring this year. Sen. Hatch is not.
Agree with Gray to drop "WordPerf" ref. acc >mplish the same
point without mentioning them specifically -- especially since
there are other computer company headquarters in the Utah Valley
-- this way we don't offend anyone.
"Rise and Shout" is the chorsu to the BYU fight song: Rise and
Shout -- the Cougars are out -- and on the trail to glory --
would prob. get a favorable response from students in audience
#####
(Provost/Ferguson/Grossman)
July 23, 1992
MICHIGAN
Draft Two
PRESIDENTIAL REMARKS: HOLLAND AMERICAN WAFER CO.
WYOMING, MICHIGAN
JULY 27, 1992
12:00 PM
Thank you and good afternoon everyone.
(Acknowledgments)
Americans may not realize it when they reach for cereal on
the shelves, but our food industry provides more food for less
than any other nation.
This company is one reason we are the world's leader. So
I'm pleased to announce that Stu and John Vander Heide have
recruited me for a national crusade. Starting today
...
I will
not. only argue passionately that broccoli's benefits are
overblown
but that sugar wafers should be one of the four
essential ingredients in a healthy diet. //
This factory is a symbol of change
changes that have
occurred around the world.
I'm told that your company was the originator of something
called: "The Survival Biscuit." It was one of the tokens of the
Cold War -- a bit of nourishment to fill your stomach as you
huddled somewhere in a bomb shelter, in case the unthinkable
became tragically real.
While it may not be great for survival biscuit sales, the
Cold War is, thankfully, over. Survival biscuits have gone the
way of the doomsday clock, "Failsafe" movies, bomb shelters, and
"duck and cover drills." Today, America is safer than before.
2
Safer than we were a decade ago. Safer than we were a year ago.
Safer than we were just a few weeks ago, when I sat down with
Boris Yeltsin and agreed to eliminate some of the world's most
dangerous nuclear weapons.
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
economy. How to make our families more like the Waltons, and
less like the Simpsons. And how to take back our streets from
the crack dealers and the criminals.
This election year, we are told, is about how we can change
to meet these challenges. But this election is not just about
change, because change has a flip side. It's called trust. When
you get down to it, this election will be like every other. When
you go into that voting booth and pull the curtain behind you:
"trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or the invasion of an ally halfway around
the world. The American people need to know that the man who
answers that phone has the experience, the seasoning, to do the
right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is more even
3
than that. I'm a Texan -- raised my children there, built my
business there. I, see America as an endless tapestry of people,
families and communities. Our heartbeat can be felt in places
like Wyoming, Michigan not Washington, D.C. And so I believe
in a simple philosophy: to lead a great nation you must first
trust the people you lead.
If you look at almost every important issue we face
you
see a clear choice -- a choice between those who put their faith
in average Americans --- and those who put their faith in
government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is --- "who
will care for the kids while we're working?" A few years ago,
Washington wanted to help, but their idea was to rock the cradle
with the heavy hand of bureaucracy. All the plans boiled down to
creating some new kind of government apparatus, like a Pentagon
for child care.
I fought for a different approach
and won. Our landmark
legislation allows parents -- not the government -- to decide
whether your children are cared for in school, a relative's home,
or church.
When it comes to raising children, I say: why not trust the
people?
What about our education system? To renew America we must
renew our schools, we all know this, but money alone won't do it.
4
We already spend more money per student than almost any other
country; and our kids still rank near the bottom in crucial
subjects like math and science. Again: a lot of ideas floating
around, most of them to pump more tax money into the same system.
I say try something different. Open up schools to
competition, and trust you to decide whether you want your kids
to learn in a public school, a private school or religious
school.
When it comes to education, again I say: "why not trust the
people?"
One other example: health care. We have the finest quality
health care in the world -- but costs are through the roof.
Thirty-four million Americans, a population larger than the state
of California, are without coverage today, and millions more are
worried about losing the coverage they have.
We have to change the system. Some propose versions of
socialized medicine -- letting the federal government play
doctor.
I say, take a different way, and I've put forth a plan to
bring health costs down. It will give tax credits so people
without coverage can buy it, and incentives so that small
businesses can pool their resources and cover more of their
employees. 11
When it comes to deciding, What doctor? What hospital? I
say: why not trust the people?
5
What about government regulation? Sure, some of it is
necessary, even essential. But if you believe that there is a
government solution to every problem, an alphabet agency for
every issue, than you look at regulation not as a necessary evil,
but as a necessary way to reign in people's evil tendencies. The
results can be crazy, as this story proves.
The time had come recently for a government agency to update
its rules on hard hats. That's right: hard hats. And someone in
that agency stumbled upon a potential national crisis ---
workers
being infected from hard hats. The alarms went off. The
bureaucratic blood boiled. One small fact was overlooked. There
wasn't a single documented case, anywhere in the United States,
of anyone getting infected wearing someone else's hard hat.
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
disinfected before one worker passed it to another. Estimated
cost to business: $13 million a year. Measurable benefit:
slightly less than zero.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
the books, and said: we think America can survive, without hard
hat regulation.
But can you imagine what might have happened, if these
enterprising regulators had made their way into the vast,
unregulated territory of lunch pails and thermos bottles?//
6
Some believe the solution to our problems is more government
regulation. I take a different view. I've put a moratorium on
new federal regulations, to give businesses like this one room to
breathe, and grow and create jobs.
In child care, education, health care and regulation, it's a
matter of trust --- trusting Americans to make their own choices.
And when it comes to the most pressing issue of this
election year -- revving up our economy -- forgetting this idea
is not just a nuisance; it can be downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete
now that everyone is playing our
game? I know we can. Despite all the criticism you've heard
lately, keep in mind a few facts. We are the largest economy in
the world. Inflation, the Willie Sutton who robs the middle
class of dreams, has been put safely behind bars. The last time
interest rates stayed this low, the Brady Bunch hadn't even
started re-runs yet. Despite all the stories about our problems,
our workers are still the most productive in the world -- more
productive than the English, the Germans, the Japanese.
But while our economy is growing, it must grow faster. The
question is: how do we do it? The other side suggests a simple
two-part solution. First, jack up government spending! And
then: raise taxes!
7
Now as you evaluate their idea, keep this in mind. Here in
Michigan, whether you like it or not, you already work 128 days
just to pay your taxes -- before you earn a single dime to spend
on your family. I don't think I have to ask -- does anyone want
to go for 129?//
All this talk of spending and taxes causes me to wonder
if the other side is a little hard of hearing. Abraham Lincoln
spoke of government "of the people, by the people, for the
people.' But they seem to keep saying
of the government, by
the government, and for the government.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense, comprehensive plan to get
this economy moving faster, now
The first sound of a strong economy is usually the sound of
hammers pounding away at new homesites. So I proposed tax
incentives to build new homes, and a $5,000 break for families
who want to buy their first one. Here in Michigan, that would
have equalled nine months of mortgage payments on the average
house.
I understand that private enterprise is the horse that pulls
our wagon -- no government program ever created a real job,
((although government did keep Johnny Carson in business for 30
years)) So I proposed incentives for businesses to grow and
hire. It's estimated the incentives would have spurred the
creation of at least half a million jobs
...
if they had been
approved when I proposed them.
8
But they weren't approved. Instead, Congress sent back
what you might call an "anti-trust" program. New government
spending, and new taxes.
So I sent their plan back. I told them to try again. And
I'm still waiting. But I need your help. Write Congress, tell
them you want to get this economy moving again. Tell them you
don't want to get the impression, that the only way to get rid of
the deadlock in Washington, is by cleaning out a little deadwood
in Congress. //
You see
it all comes down to a question of trust. I
trust you to spend and save your money more wisely than any
budget planner in Washington.
This is common sense, and I agree. But there's a certain
type of person attracted to government for whom the word "trust"
has a strange meaning. Most of them have spent their lives in
government, and don't have much experience in the real world.
They say they want to
"put people first. "
But
if
you
look closely at what they're advocating
...
the people they put
first are all on a government payroll.
A leader of a free people must understand that government
can not only help, it can hinder. He must have the confidence to
say: "I trust you. " I trust the people. //
And ultimately, you must decide who you trust -- who has
the experience -- the ideals and ideas -- to find that delicate
balance.
9
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
from Harvard, or a gaggle of social scientists from a Washington
think tank.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you, and God bless the United States
of America.
#
#
To MICHELLE
To
Michele
Date
Time 11:16
Date
Time 11:35
WHILE YOU WERE OUT
M John Yahner
WHILE YOU WERE OUT
M
John yahner
of
401 3383 3000 401 3383 3000
of
Phone
Phone
401-3383
Area Code
Number
Extension
Area Code
Number
Extension
TELEPHONED
PLEASE CALL
TELEPHONED
PLEASE CALL
x
CALLED TO SEE YOU
WILL CALL AGAIN
CALLED TO SEE YOU
WILL CALL AGAIN
WANTS TO SEE YOU
URGENT
WANTS TO SEE YOU
URGENT
RETURNED YOUR CALL
Message RETURNED He has YOUR your CALL stats
Message
CK
Operator
Operator
AMPAD
AMPAD
EFFICIENCY®
23-023 CARBONLESS
EFFICIENCY®
23-023 CARBONLESS
I
City/State:
Gond Rapids
Event: Holland Amer. Wafer
Date: 7-22-92
OFFICE OF PRESIDENTIAL ADVANCE Event Date 7-27
CONTACT SHEET
Name
Office
Phone Number
Presidential Advance Office
202/456-7565
Presidential Advance Fax Number
202/456-2820
Peg Hayeling Presidential Advance 2021456-7565
John Herrick
BOBBY CARR
REPRESENTL NTL
OFC 614 4594500
JON NWNN COMMITEMAN t 616 4584867
DanEsterline Kent County Republican Comm. 616-459-0141
Colleen Pero Michigan Bush-Quayle (517)337-1992 (202) 456-7750
ED WALTERS SPEECHWRITING - WH
Fax (202) 456-6218
Jice HANSON Regional Palitical Director B-Q'92 far 202-336-7145 202-336-7178 243-0191
Stuart VanderHeich H.A Water (616) 243-0015 842-9669
Dennis McCarthy
U.S.S.S.
616-456-2276
PAUL D. IRVING
U.S.S.S.
(616) 456-2276
John M. Horne
Presidential Advance
(202) 456 - 7565 243-0191 -280-2224
THOMAS N. HURRINGH HA. WAFER
846-3232
Russell J. CANCellA Military Aide
(202) 395-1747
ANNE Mincy
Presidential Advance
202/456-7565
Tom Musseluhite
U.S. Secret Service
616-456-2276 OR AMWA
JOHN "RUSTY" SCHORSCH
Melitary Aide
(202) 395-1747
MARK BARNETTE
WH Couns AGENCY-OPS
(202)395-4040
Jim GAMM
USSS
616-456-2276
RANDALL HORN
WH Communications Agency
(tate)
AMWAY 774-2000 GRAND Hotel
ADVANCE HOTEL:
AMWAY GRAND PLAZA HOTEL (616) 774-2000.
07/23/92 18:25 414 733 9220
PAPER VALLEY
1
001
2012
PAPER VALLEY HOTEL
& CONFERENCE CENTER
Your Center Of Attention
P.O. Box 8000, 333 West College Avenue, Appleton, Wisconsin 54913 414/733-8000
Toll Free In Wisconsin: (800) 242-3499
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FACSIMILE TRANSMISSION
Total Pages Including This Cover Letter:
10
ATTENTION: Michelle Nix of Ed Walters
FAX NUMBER: 202 456-6218
SPECIAL INSTRUCTIONS: Please call Me at 414 733-
8000 Room 2012 with my questions.
SENT BY: Craig Bergstrom W.H. Press Adv.
If this transmission is scrambled or incomplete, please call
The Paper Valley Hotel and Conference Center at (414) 733-8000.
WISCONSIN'S LIFELONG LEARNING AND WORKFORCE TRAINING STRATEGIES
INTRODUCTION
Wisconsin is one of the few states to implement a comprehensive
plan to improve the quality of its workforce. Drawing on the
recommendations of several commissions and lessons learned from
our toughest international competitors, Wisconsin has emerged as
the leader in developing workforce training strategies as the
state revolutionizes the way young people are prepared for the
world of work.
Wisconsin is currently in the midst of a major overhaul of its
K-12 and adult education systems. Chief among the reforms are
youth apprenticeship and tech-prep programs modeled after
elements of Germany's highly-praised worker training system.
These reforms will expand opportunities for the non-college bound
and provide Wisconsin employers with the skilled workforce needed
to compete in the high-tech world of tomorrow.
In addition, through the efforts of Governor Tommy G. Thompson,
Superintendent of Public Instruction Dr. Herbert J. Grover, the
state's major education associations and key legislators,
Wisconsin has recently enacted legislation which sets the state
on an ambitious path toward systemic education reform and
realization of the national education goals. Included in this
legislation are initiatives implementing statewide education
goals, a comprehensive student assessment system, site-based
management, and the development of a statewide uniform student
transcript.
A key segment of this education reform package is the
comprehensive statewide performance-based student assessment
system. By 1996, Wisconsin students will participate in a third
grade reading test, fourth and eighth grade skills and competency
tests, and a tenth grade gateway assessment. These will be
statewide standardized tests.
BACKGROUND
While the world is becoming smaller, more competitive and more
complex, American young people emerge from school equipped with
skills needed thirty years ago. They currently receive
insufficient job training and career education and are competent
only in the most basic academic skills. While other nations have
sophisticated job training systems and hold all their students to
high achievement standards, Americans pay inadequate attention to
non-college bound students and rank at the bottom of
international academic achievement tests. Since the end of World
War II, expanding access to higher education has been the
principle goal of public education. Therefore, non-college bound
students have been provided with a weak curriculum and almost no
002
PAPER VALLEY
9220 733 110
18:26
07/23/92
preparation for life after high school. Furthermore, clear
performance standards have not been articulated for either the
college bound or non-college bound, and methods of assessing
academic performance have been avoided.
For their part, employers have found it increasingly difficult to
find enough skilled workers to meet their needs as a result of
these trends. While their international competitors draw on a
pool of highly trained workers, American firms lack the personnel
to remain competitive or expand. Already the American economy is
showing the effects: high trade deficits, low productivity
growth and flat earnings.
Another troubling sign for the economy is the amount of remedial
instruction and training which businesses and post-secondary
institutions must provide. Approximately 19 percent of
Wisconsin's VTAE system's 409,000 students are enrolled in some
type of remedial course, at a cost of roughly $51 million. Of
freshmen entering the University of Wisconsin System in the fall
of 1990, 10 percent needed remedial instruction in English and 20
percent required remediation in mathematics. In addition,
roughly one-third of workers entering Wisconsin's carpentry
apprenticeship program perform unsatisfactorily on a test of
basic math skills. While Wisconsin's elementary, secondary and
post-secondary educational institutions rank near the top when
compared to other states, we cannot be satisfied with that
ranking when we know that international competitors are
surpassing these standards.
Responding to these realities, Wisconsin has launched major
initiatives to keep its industries competitive and provide its
citizens with rewarding, high-wage jobs. A rare coalition of
policymakers, educators, and business and labor leaders has been
working together to implement reforms to improve the quality of
Wisconsin's workforce. Following the recommendations of national
reports, the Weigell and Haney commissions, and the State
Superintendent of Public Instruction Dr. Herbert J. Grover's
School-to-Work Initiative, the state will introduce three
distinct educational options at the high school level: college
prep, tech prep, and youth apprenticeship. The Youth
Apprenticeship Program is patterned after Germany's highly-touted
system of worker training which provides classroom training
coupled with work-based education.
All students will also be required to take a tenth grade "gateway
assessment", the results of which will help them plan future
education and training options. For their last two years of high
school, students will be able to choose either a college prep
program or a youth apprenticeship program. The latter will
involve a combination of technical training, either at their high
school or a technical college, and actual work-based experience.
Students entering this program will earn not only a high school
diploma, but also a youth apprenticeship certificate of
competency in a specific technical area.
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STATE COMMISSION AND TASKFORCE RECOMMENDATIONS
COMMISSION ON SCHOOLS FOR THE 21ST CENTURY
Governor Thompson charged this commission with identifying a new
design for education in Wisconsin for the 21st century. The
commission was chaired by Ody J. Fish. Findings were issued in
December, 1990.
Recommendations:
1.
The success of Wisconsin schools will be measured by
performance outcomes, and all schools will improve
their performance.
2.
All children will come to school ready to learn.
3.
Parents will be fully involved in the educational
process.
4.
Quality education will be enhanced through community
partnerships.
5.
Wisconsin teachers will have the resources, preparation
and encouragement to teach successfully in a results-
oriented environment.
6.
The learning environment will provide maximum
opportunity for student success.
7.
School financing policies will be fair and adequate.
GOVERNOR'S COMMISSION FOR A QUALITY WORKFORCE
Governor Thompson charged this commission with assessing the
skill needs of employers and developing strategies to ensure that
employers enter the 21st century with the workforce they need to
compete globally. Commission membership emphasized employer
participation and was chaired by Carl Weigell. Findings were
issued in April, 1991.
Recommendations:
1.
More Wisconsin employers must adopt new technology and
methods of organizing work. To support this effort,
technical colleges must facilitate employer leadership
and participation in worker training and re-training.
2.
Technical colleges must upgrade occupational education
to meet the growing needs of employers.
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3.
Wisconsin's employers and workers, in partnership with
the state's technical colleges, must re-skill the
existing workforce for a more competitive economy.
4.
Technical colleges must work with business and
industry across the state to improve access to
training.
5.
Wisconsin's system of public education must adopt
outcome-oriented, competency-based educational
objectives throughout the primary and secondary
grades.
6.
Educators, the business community, and state policy
makers must establish attainment of Certificate of
Initial Mastery as a prerequisite for eligibility for
employment or training opportunities for high school
students.
7.
Technical colleges and high schools must substantially
improve alternative educational programs for students
at risk of dropping out of high school and for adults
in need of high school instruction.
8.
High school curricula must be redesigned to prepare
non-university bound students for technical careers.
9.
Educators and counselors in high schools must work
with employers to improve the transition from school
to work for students entering the workforce directly.
10.
Educators and counselors in primary and secondary
schools must improve career education for all students
throughout their educational experience.
TASK FORCE ON IMPLEMENTING OCCUPATIONAL OPTIONS FOR YOUTH
The task force was a joint effort of the Wisconsin Department of
Public Instruction and the Wisconsin Board of Vocational,
Technical and Adult Education, and was funded by the Vocational
Studies Center (University of Wisconsin - Madison). The task
force was charged with identifying youth issues related to
occupational preparation. Membership on the task force was
broad, consisting of leaders from the business, labor and
education communities, and was chaired by James S. Haney.
Findings were issued in March, 1991.
Recommendations:
1. Ensure that all students in Wisconsin who demonstrate
competence in mastering a set of essential learner
outcomes have the "right". to enroll in a comprehensive
Tech-Prep program, which includes school-supervised,
work-based learning experiences.
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2. Revise and strengthen the Education for Employment
Standard for all students in K-12, so that the skills,
knowledge and attitudes taught will serve as a
foundation for Tech-Prep options in the 11th and 12th
grades and post-secondary technical education.
3. Support a 10th grade performance-based gateway
assessment as recommended by the Commission on Schools
for the 21st Century.
4. Implement in all school districts and VTAE districts by
the 1995-96 school year, Tech-Prep program options
consisting of the two years of secondary school
preceding graduation and up to two years of
post-secondary technical education, or continuation in
a formal work-based learning program.
5. Encourage business, labor and employer associations to
take active leadership roles in developing Tech-Prep
programs and work-based learning at the local level.
6. Provide state-level leadership in addressing
certification issues and implementing a professional
development system which supports the implementation of
the Wisconsin Tech-Prep initiative.
7. Assure that each local district administrator, VTAE
district director and their respective local boards
take leadership roles in forming new consortium
relationships to implement Tech-Prep options.
8. Structure a regional curriculum development process
which assures that each high school and technical
college will develop appropriate core courses and
establish dual credit and advanced standing options.
9. Encourage WBVTAE and DPI to align all currently
available education and employment training funds and
to seek additional public and private funds to fully
implement TECH-PREP in Wisconsin.
STATE LEGISLATION
Wisconsin Act 39 - enacted on August 8, 1991.
TENTH GRADE GATEWAY ASSESSMENT
Provides funding to the Department of Public Instruction for
the development of a tenth grade gateway assessment. The
assessment is to be available by the 1995-96 school year.
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The assessment will be multidisciplinary, incorporating core
competencies such as reading, writing, computation and
science. The assessment will also be performance-based,
including the assessment of problem solving skills,
analytical skills and critical reasoning skills.
The assessment will allow the comparison of pupil
performance among school districts and measure student
accomplishment.
POST-SECONDARY ENROLLMENT OPTIONS
Permits juniors and seniors in high school to attend an
institution of higher education for the purpose of taking
one or more courses for either high school or post-secondary
credit.
Funding is provided to reimburse low-income families for
whom transportation costs may present an obstacle to
attending post-secondary institutions.
TECH-PREP OPTIONS
Requires all school districts in the state to establish a
tech-prep program in each high school in the district.
Tech-prep programs are to be designed to allow high school
pupils the opportunity to gain advanced standing in
vocational technical college associate degree programs (two
year degrees).
Provides for collaboration between the K-12 system and the
vocational technical colleges in the preparation and
delivery of tech-prep programs.
Provides for the development of regional tech-prep councils
to oversee the development and on-going coordination of
tech-prep programs locally.
YOUTH APPRENTICESHIP PROGRAMS
Creates a Youth Apprenticeship Program in the Wisconsin
Department of Industry, Labor and Human Relations, and
requires the agency to cooperate with the Department of
Public Instruction and the Wisconsin Board of Vocational,
Technical and Adult Education to develop the program and
maintain it statewide. A twelve-member Youth Apprenticeship
Advisory Council is also created to advise and assist in the
design and development of the program.
Local youth apprenticeship programs will be designed by a
consortium of local partners, including high schools,
technical colleges, employers, labor organizations, the
state's apprenticeship agency and parents and students. The
consortium must build on, and integrate with, ongoing or
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developing curricula in the schools which meet district and
state high school graduation standards. At the same time,
all programs must include the following core elements:
1. Prerequisite completion of career awareness/exploration
and/or Education for Employment with a career
counseling component and satisfactory performance on
the Tenth Grade Gateway Assessment.
2. Structured, sequenced classroom instruction linking
academic and work-based learning.
3. Work-based learning that follows a systematic schedule
of identified work activities.
4. Classroom instruction and work-based learning are
competency-based.
5. Classroom instruction and work-based learning are
integrated.
6. On-the-job training is provided by a skilled mentor.
7. On-the-job training is in a skilled occupational area.
8. Program graduates receive a state certificate of
academic and occupational proficiency.
9. Those who complete the program receive a high school
diploma.
10. The certificate of proficiency translates into
eligibility for work experience credit in a
traditional apprenticeship, advanced standing or
credit in a technical college program and/or
facilitated entry into a four-year college program.
EDUCATION FOR EMPLOYMENT STANDARDS
The education for employment standard requires all school
districts to provide pupils access to an education for
employment program. The program requires approval by the
State Superintendent of Public Instruction. The purpose of
the programs is to prepare elementary and secondary pupils
for employment, to foster cooperation between business and
industry and public schools and to establish a role for
public schools in the economic development of Wisconsin
communities. Education for employment programs are open to
all students K-12 and include program elements such as;
instruction in basic skills in general and vocational
curricula, school supervised work experience, career
exploration and instruction in employability skills.
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Wisconsin Act 269 - enacted on April 29, 1992
EDUCATION GOALS
Directs the establishment of a fifteen-member state-level
goals council to coordinate the statewide goals discussion
process and the development of a state educational vision.
The goals council will review proposals generated through
local and regional discussions and make recommendations to
the legislature on statutory changes related to statewide
educational goals by September 1, 1993.
STUDENT ASSESSMENT
Establishes 8th and 10th grade concept and knowledge exams
beginning in the 1992-93 academic year. Directs the State
Superintendent of Public Instruction to report to the
Legislature by January 1, 1994 regarding a plan for
implementing a student assessment program by 1996-97 which
is consistent with the statewide education goals.
THE EXECUTIVE CABINET FOR A QUALITY WORKFORCE
Wisconsin's lifelong learning and workforce training strategies
are coordinated by the Executive Cabinet for a Quality Workforce,
established through an executive order signed by Governor Tommy
G. Thompson on September 3, 1991. The Executive Cabinet is
comprised of state agency heads, as well as state leaders in
education, business and labor. Their primary task is to
implement the previously mentioned state legislation and task
force recommendations, The Executive Cabinet fosters close
cooperation between government, educators, business and labor,
and allows for a coordinated, comprehensive approach to the
state's workforce training needs.
The Executive Cabinet has proved to be an effective way to
coordinate the efforts of several state and local government
agencies and private sector groups. By the end of its first
year, the Cabinet will have established youth apprenticeship
programs for the printing and metalworking industries, charted a
plan for revamping counseling services, and developed initiatives
for the special workforce needs of the Milwaukee area.
Implementation groups appointed by the Executive Cabinet are in
the process of establishing apprenticeship programs in the
printing and metalworking industries. The Printing
Implementation Group issued its report to the Executive Cabinet
in April, 1992 and printing apprenticeships will be in place for
the 1992-93 school year.
In addition, the Executive Cabinet has also appointed a
Counseling Implementation Group to improve the quality of
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information and guidance regarding employment and training
options provided to students and workers. For a multi-tracked
training system to work well, students and parents must be given
detailed, up-to-date information about training and career
opportunities and labor market conditions. The counseling group
will recommend by September, 1992, a system to deliver this
information to students and guide them in selecting future
education and career pathways. This new system could exist
inside or outside the public school system. The group will
closely examine the highly-praised German system of career
counseling centers for ideas.
BARRIERS/CHALLENGES ENCOUNTERED
It is always difficult to change long established ways of doing
business. In enacting these school-to-work reforms, inertia,
complacency and resistance from those with a stake in the status
quo have been encountered. Thus, it was essential that the
entity which coordinates the state's activity consist of
individuals with the authority to work through these barriers.
In Wisconsin, the Executive Cabinet for a Quality Workforce
discharges this responsibility. Coordinating numerous government
agencies and private groups, all with different priorities and
interests, has been challenging.
There are also deep-seated notions that must be overcome
regarding vocational training. Since World War II, our goal has
been to expand access to higher education. Those who do not wish
or are not equipped to go on to college have been given a weak
curriculum and little guidance about life after school. As a
result, vocational training has become less attractive, less
rigorous and less connected to obtaining a rewarding, well-paying
job after school.
Finally, the public must be informed of the new training options
as they are implemented. Along with explaining the mechanics of
the programs, the advantages of selecting these options in terms
of future employment must also be conveyed.
Despite these barriers, a remarkable consensus has emerged in
Wisconsin regarding the need to improve the state's workforce.
Wisconsin's efforts are an excellent example of the close
cooperation which must exist between government, educators,
business and labor. Such cooperation has been responsible for
the substantial progress already made, and is essential to
ensuring the ultimate success of Wisconsin's initiatives.
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(Ferguson/Grossman)
July 23, 1992
MICHIGAN
Draft One: 11:00 AM
PRESIDENTIAL REMARKS: DUTCH TWINS PLANT
WYOMING, MICHIGAN
JULY 27, 1992
what's for
XX:00 PM
Sugar wafors
(Acknowledgments)
I want to thank you for the warm reception and your kind
hospitality. I was fascinated to discover, talking with John
Vander Heide, that Dutch Twins was the originator of the
"Survival Biscuit." I'm sure a lot of you aren't old enough to
remember that. It was one of the tokens of the Cold War -- a bit
of nourishment to keep you well as you huddled somewhere in a
shelter, in case the unthinkable became tragically real.
Hearing about the survival biscuit reminds me of how far
we've come in the past three years. The biscuit is now a relic,
part of the past -- along with the doomsday clock, "Failsafe"
movies, bomb shelters, duck and cover drills. America -- her
courage and strength -- have changed the world.
You may have heard a rumor to the effect that this is an
election year. Change is in the air, because the country that
changed the world can at last turn her undivided attention to
herself, the pressing problems of education, and keeping America
on the cutting edge of economic competitiveness.
So this election year is about change -- but not only about
change, because change has another dimension, a flipside. It's
called trust. When you get down to it, for all the punditry and
pontificating, this election year is, in the most important way,
2
like every other: when voters go into that voting booth and pull
the curtain behind them, they will vote for the candidate who has
the kind of character they can trust.
And that's the way it should be. Sometimes, in the White
House late at night, the phone rings. Sometimes it's a young
aide double-checking the next day's schedule. Other times, it's
something else -- a coup in a powerful country, the invasion of
an ally halfway around the world. The American people need to
know that the man who picks up the phone has the experience, the
seasoning, to do the right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is more even
than that. I'm a Texan -- raised my children there, built my
business there -- and in those years I learned that leadership
involves something else: the leader of a great nation must learn
to trust the people.
That's what these momentous, world-wide changes have been
about. A new generation of leaders, from Moscow to Managua, have
learned that the people themselves -- not the government -- must
be trusted to make those most important decisions in their lives.
This is the purely American idea that has changed the world.
And it's the one issue that puts a campaign into sharp focus.
Not just: Who do the American people trust? But: Who trusts the
American people?
3
Not everybody does. For three and a half years, I've come
up against them --- folks who think government, not the people,
should make the big choices.
Let me tell you what I mean. Start with the basics -- home
and family.
When I took office, I pledged to help those who needed help
with child care. There were a lot of ideas floating around about
how to do this -- and almost every one of them involved creating
some brave new child-care bureaucracy run from Washington,
dictating what kind of care your children could recieve. I said:
Trust the people. Americans themselves can make these decisions.
We won that fight. Our landmark child care bill let's you, not
the government, choose who cares for your kids.
Exaction
Education -- everyone knows we need to change American
education. Over the last XX years, education spending has
moterfer
increased xx; achievement scores are half what they were. Again:
a lot of ideas floating around, most of them to pump more tax
money into a system that has failed utterly. I've said let's try
something revolutionary. Let's trust the people -- open up the
education system to competition. Let's trust parents to choose
their children's schools.
Another example: health care. We've got the finest quality
health care in the world -- bar none -- but costs are through the
roof. 37 million Americans are without coverage, and millions
more are worried about losing the coverage they have.
4
Some people see this problem and propose increasing the
government's control over health care -- socialized medicine,
putting the same people who run the post office in charge of our
hospitals and doctor's offices. With my comprehensive health
care proposal, I've said: Let's try something new. Let's trust
the people. Increase access to care, control costs, and, just as
important, preserve the quality of care and the right of people
to choose who gives them health care.
In every case, it's a matter of trust -- trusting Americans
to make their own choices. The people we're up against seem to
have forgotten the most American proposition of all: the
government works for the people, not the other way around.
And when it comes to the most pressing issue of this
election year -- revving up our economy -- forgetting this idea
is not only a nuisance; it can be downright dangerous.
Especially right now. The revolutions of the last few years
herald a new era of global economic competition, with free
markets from Siberia to Santiago.
Our country, with two hundred years of free enterprise under
its belt, is uniquely placed to take advantage of these great
global challenges. We are the largest, most prosperous economy
the world has ever seen. The American worker is the most
productive in the world -- 30 percent more productive than his
Japanese counterpart. His purchasing power is the highest in the
world. Our industrial base is the largest. Our science and
technology is the envy of all our competitors.
5
The transition to this new world of open economic markets
isn't easy -- for us, or for our competitors. {Japanese stock
market down 30 percent.] Too many Americans have given half
their lives to a company, only to wonder whether the next mail
will bring a pink slip. Too many have worked to send their kids
through college, only to find that graduates can't get a good
job.
But some people look on hard times and have a strange
reaction. They say the economic solution must involve two things
above all others: First, let's increase government spending!
And then: Let's raise taxes! Sometimes it seems every problem is
just an excuse to take the noble phrase, "government of, by, and
for the people" and add a new clause: "government on the people."
Now most economists would tell you this is just plain crazy.
Here in Michigan, whether you like it or not, you already work
128 days just to pay your taxes -- before you earn a single dime
to spend on your kids. Only a sadist would want to increase that
burden.
But -- and this is the strange part -- if you look at it
from another perspective, their perspective, the talk of big
spending and higher taxes makes a certain kind of sense. They
honestly believe that with all their access to the latest
econometric data, their infintely subtle charts and graphs and
out-year projections -- they honestly think that they can spend
money more wisely, more efficiently, than the people who earn it.
6
They're hard to dissuade. I'll give you an example. In
January I proposed a common sense plan to jumpstart the economy,
help us over the bumps in the road. I wanted to free up the
creative energies of our entrepreneurs with tax cuts; to give a
$5,000 break to young couples trying to buy their first home.
Here in Michigan, that $5,000 would have been equal to XX months
of mortgage payments on the average new home.
So I sent my plan up to Capitol Hill. And I probably don't
have to tell you what I got back: a whole raft of new spending
and -- you guessed it -- a huge tax increase.
I said: Forget it. I sent their plan back.
It's a question of trust. I trust you to spend and save
your money more wisely than any budget planner in Washington.
Fortunately, I've been able to do some things to free up the
economy on my own. Earlier this year, I announced a moratorium
on new federal regulations -- to get frivolous regulations off
the backs of business.
Now, every regulation is done with the best of intentions.
And of course, the federal government has tremendous
responsibilities in the area of health and safety and the
environment -- those responsibilities are also a matter of trust,
and I will never betray that trust.
But good intentions don't justify the micromanaging of
American workers and American business from Washington. I'll
tell you a story.
7
It's the kind of thing that can only happen in Washington.
The time had come for a government agency to update it's rules on
hardhats. That's right: hard hats. And someone in that agency
decided that infected hard hats had come to be a problem -- even
though there wasn't a single documented case, anywhere in the
United States, of anyone getting infected from a hard hat.
That didn't deter the bureaucrat. So with the best of
Richard
intentions, the rule was written: every hard hat must be
disinfected before one worker passed it to another. Estimated
cost to business: $60 million a year. Measurable benefit: none.
Luckily, this story has a happy ending, but only because we
were there to give it one. My White House competitiveness
council caught the regulation before it hit the books, and said:
We don't think so.
The rule never hit the books.
I hate to think what the [micromanagers] would do if they
ever got a free hand -- into the vast, unregulated territory of
lunch pails and thermos bottles.
You'll say this is all common sense, and I agree. But
there's a certain type of person attracted to government service
for whom the word "trust" has a strange meaning. Most of them
have spent their lives in government, and don't have much
experience in the real world. You'll hear it most often in the
phrase: "Trust me": Trust me to choose your kids' schools, trust
me to choose your doctor, trust me to regulate your child's
daycare, trust me to tell when to clean your hard hat.
8
But a trustworthy leader of a free people must have the
confidence use the word this way: "I trust you. "
The point is not to let people fend for themselves.
Americans are a generous people; and we will never shirk our
responsibilities to help those who need help. [Youth
Apprenticeship Act] But help must be offered with an eye to
government's power not only to help but to hinder.
And you must decide who you trust -- who has the
experience, the philosophical moorings -- to find that delicate
balance.
It must be someone who understands the essential fact of
American prosperity -- that the most powerful economy in the
history of the world wasn't fashioned around a conference table
in Washington, where experts gabbled and bureaucrats scribbled.
It was determined right here -- right here -- on the shop floor
and in the board room and in the research lab, where free men and
women weighed the odds, made the decisions, and took the risks.
Yes, America will change, just as it has changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
from Harvard, or a gaggle of social scientists from a Washington
think tank. The answers won't come from the bureaucratic warrens
inside the Beltway, and heaven knows they won't come from a
committee room on Capitol Hill.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
9
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product line. It's going to be the computer hacker working in a
lonely garage, the merit scholar from South Central L.A., the
entrepreneur with a future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you.
# #
(Ferguson/Grossman)
July 23, 1992
MICHIGAN
Draft One: 11:00 AM
PRESIDENTIAL REMARKS: DUTCH TWINS PLANT
WYOMING, MICHIGAN
JULY 27, 1992
XX:00 PM
Noon
Thank you and good afternoon everyone.
(Acknowledgments)
Americans may not realize it when they reach for cereal on
the supermarket shelves
but our food industry
...
provides
more food for less
than any other nation.
Dutch Twins is one reason we are a world leader. So I'm
pleased to announce that John Vander Heide has recruited me for a
national crusade. Starting today
...
I will not only argue
passionately that broccolli's benefits are overblown
but that
(sugar wafers) should be one of the four essential ingredients in
a healthy diet. //
This factory is a symbol of the dramatic changes that have
occurred around the world.
John tells me that this company was the originator of
something called
"The Survival Biscuit. " It was one of the
tokens of the Cold War -- a bit of nourishment to fill your
stomach as you huddled somewhere in a bomb shelter, in case the
unthinkable became tragically real.
2
While it may not be great for survival biscuit sales
the Cold War is, thankfully, over. Survival biscuits have gone
the way of the doomsday clock, "Failsafe" movies, bomb shelters,
and "duck and cover drills.' Today
America is safer than
before. Safer than we were a decade ago. Safer than we were a
year ago. Safer than we were just a few months ago
when I
sat down with Boris Yeltsin and eliminated nuclear weapons.
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
economy. How to make our families more like the Waltons than the
Simpsons. And how to take back our streets from the crack
dealers and the criminals.
This election year
we are told
is about how we can
change to meet these challenges. But this election is not just
about change, because change has a flip side. It's called trust.
When you get down to it, this election will be like every other
in history. When you go into that voting booth and pull the
curtain behind you: "trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or the invasion of an ally halfway around
the world. The American people need to know that the man who
3
answers the phone has the experience, the seasoning, to do the
right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is more even
than that. I'm a Texan -- raised my children there, built my
business. I see America as an endless tapestry of people,
families and communities. Our heartbeat can be felt in places
like Wyoming
not Washington. And so I believe in a simple
philosophy: to lead a great nation you must first trust the
people you lead.
If you look at almost every important issue we face
you
see a clear choice in philosophy
a choice between those who
put their faith in average Americans
and those who put their
faith in government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is
"who
will care for the kids while we're working?" A few years ago
Washington wanted to help
but the idea was to rock the
cradle with the heavy hand of the bureaucracy. All the plan
boiled down to creating some new kind of government apparatus
like a Pentagon for child care.
I fought for a different approach
and won.
Our landmark
legislation allows parents
not the government
to decide
)
whether your children are cared for in a school
a relative at
home
or in church.
4
When it comes to raising children
I say: trust the
parents.
What about our education system? To renew America we must
renew our schools
we all know this
but money alone won't
do it. Over the past twenty-five years, education spending has
increased xx; while achievement scores have dropped by
Again: a lot of ideas floating around, most of them to pump more
tax money into the same system.
I say try something different. Open up schools to
competition
and trust you to decide whether you want your
kids to learn in a public school, a private school or religious
school.
When it comes to education
again I say: "trust the
parents. II
One more example: health care. We have the finest quality
health care in the world -- but costs are through the roof.
Thirty-seven million Americans
a population larger than the
state of California
are without coverage today, and millions
more are worried about losing the coverage they have.
We have to change the system. Some propose versions of
socialized medicine
letting the federal government play
doctor.
I say
take a different way. Give tax credits so people
without coverage can buy it
and tax incentives so that small
businesses can pool their resources and cover more of their
E.
it
5
people. // When A comes to deciding what doctor? what hospital? I
say
trust the people to choose.
In every case, it's a matter of trust -- trusting Americans
to make their own choices. And when it comes to the most
pressing issue of this election year -- revying our up economy --
forgetting this idea is not just a nuisance; it can be downright
dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete
now that everyone is playing our
game? I know we can. Keep in mind
we are the largest
economy in the world. Inflation
the Willie Sutton who robs
the middle class of dreams
has been put safely behind bars.
The last time interest rates were this low
the Brady Bunch
wasn't even on television. Despite all the stories about our
problems
our workers are still the most productive in the
world -- more productive than the English, the Germans, the
Japanese.
But while our economy is growing
it must grow faster.
The question is: how do we do it? The other side suggests a
simple two-part solution. First, jack up government spending!
And then: raise taxes!
6
Now as you evaluate their idea, keep this in mind. Here in
Michigan, whether you like it or not, you already work 128 days
just to pay your taxes -- before you earn a single dime to spend
on your family. I don't think I have to ask who does anyone want
to go for 129?
All this talk of spending and taxes causes me to wonder
if the other side is a little hard of hearing. The Constitution
says we want government "of the people, by the people, for the
people. But they keep wanting to say
...
government of the
people, by the people, on the people.
They're hard to dissuade. I'll give you an example. In
January I proposed a common-sense plan to jumpstart the economy,
help us over the bumps in the road. I wanted to free up the
energies of our entrepreneurs with tax cuts; to give a $5,000
break to young couples trying to buy their first home. Here in
Michigan, that $5,000 would have been equal to XX months of
mortgage payments.
So I sent my plan up to Capitol Hill. And I probably don't
have to tell you what I got back: a raft of new spending and --
you guessed it -- new taxes.
I sent their plan back.
It's a question of trust. I trust you to spend and save
your money more wisely than any budget planner in Washington.
Fortunately, I've been able to do some things on my own to
try and jump start the economy. Earlier this year, I announced a
7
moratorium on federal regulations -- to untangle the red tape
that ties so many businesses in knots.
Is it necessary? Listen to this story.
The time had come recently for a government agency to update
it's rules on hardhats. That's right: hard hats. And someone in
that agency stumbled upon a potential national crisis --- workers
being infected from hardhats. The alarms went off. The
bureaucratic blood boiled. One small fact that overlooked.
There wasn't a single documented case, anywhere in the United
States, of anyone getting infected from a hard hat.
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
disinfected before one worker passed it to another. Estimated
cost to business: $60 million a year. Measurable benefit:
slightly less.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
the books, and said: we think America can survive
without
hardhat regulation.
But can you imagine what might have happened
...
if these
enterprising regulator guys had made their way into the vast,
territory of lunch pails and thermos bottles?
You'll say this is all common sense, and I agree. But
there's a certain type of person attracted to government for whom
the word "trust" has a strange meaning. Most of them have spent
8
their lives in government, and don't have much experience in the
real world.
They say they want to
"put people first. " But if you
look closely
...
the people they put first are all on a
government payroll.
A trustworthy leader of a free people must have the
confidence to say: "I trust you." I trust the people.
The point is not to let people fend for themselves.
Americans are a generous people; and we will never shirk our
responsibilities. But help must be offered with an eye to
government's power not only to help but to hinder.
And you must decide who you trust -- who has the
experience, the ideals and ideas -- to find that delicate
balance.
It must be someone who understands the essential fact of
American prosperity keep no government ever created a single job
2
(although it did Johnny Carson around for 30 years.)
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
from Harvard, or a gaggle of social scientists from a Washington
think tank.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
9
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you.
#
#
(Provost/Ferguson/Grossman)
July 23, 1992
MICHIGAN
Draft One: 7:00 AM
PRESIDENTIAL REMARKS: DUTCH TWINS PLANT
WYOMING, MICHIGAN
JULY 27, 1992
12:00 PM
Thank you and good afternoon everyone.
(Acknowledgments)
Americans may not realize it when they reach for cereal on
the supermarket shelves
...
but our food industry
...
provides
more food for less
...
than any other nation.
Dutch Twins is one reason we are a world leader. So I'm
pleased to announce that John Vander Heide has recruited me for a
national crusade. Starting today
...
I will not only argue
passionately that broccoli's benefits are overblown
...
but that
(sugar wafers) should be one of the four essential ingredients in
a healthy diet. //
This factory is a symbol of the dramatic changes that have
occurred around the world.
John tells me that this company was the originator of
something called
...
"The Survival Biscuit. " It was one of the
tokens of the Cold War -- a bit of nourishment to fill your
stomach as you huddled somewhere in a bomb shelter, in case the
unthinkable became tragically real.
2
While it may not be great for survival biscuit sales
the
Cold War is, thankfully, over. Survival biscuits have gone the
way of the doomsday clock, "Failsafe" movies, bomb shelters, and
"duck and cover drills. " Today
America is safer than before.
Safer than we were a decade ago. Safer than we were a year ago.
Safer than we were just a few months ago
when I sat down with
Boris Yeltsin and eliminated nuclear weapons.
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
economy. How to make our families more like the Waltons than the
Simpsons. And how to take back our streets from the crack
dealers and the criminals.
This election year
we are told
is about how we can
change to meet these challenges. But this election is not just
about change, because change has a flip side. It's called trust.
When you get down to it, this election will be like every other
in history. When you go into that voting booth and pull the
curtain behind you: "trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or the invasion of an ally halfway around
the world. The American people need to know that the man who
3
answers the phone has the experience, the seasoning, to do the
right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is more even
than that. I'm a Texan -- raised my children there, built my
business. I see America as an endless tapestry of people,
families and communities. Our heartbeat can be felt in places
like Wyoming
not Washington. And so I believe in a simple
philosophy: to lead a great nation you must first trust the
people you lead.
If you look at almost every important issue we face
you
see a clear choice in philosophy
a choice between those who
put their faith in average Americans
and those who put their
faith in government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is
"who
will care for the kids while we're working?" A few years ago
Washington wanted to help
but the idea was to rock the
cradle with the heavy hand of the bureaucracy. All the plans
boiled down to creating some new kind of government apparatus
like a Pentagon for child care.
I fought for a different approach
and won.
Our
landmark
legislation allows parents
not the government
to decide
whether your children are cared for in a school
a relative's
home
or in church.
4
When it comes to raising children
...
I say: trust the
parents.
What about our education system? To renew America we must
renew our schools
we all know this
but money alone won't
do it. Over the past twenty-five years, education spending has
increased xx; while achievement scores have dropped by ---.
Again: a lot of ideas floating around, most of them to pump more
tax money into the same system.
I say try something different. Open up schools to
competition
and trust you to decide whether you want your
kids to learn in a public school, a private school or religious
school.
When it comes to education
again I say: "trust the
parents. "
One more example: health care. We have the finest quality
health care in the world -- but costs are through the roof.
Thirty-seven million Americans
a population larger than the
state of California
are without coverage today, and millions
more are worried about losing the coverage they have.
We have to change the system. Some propose versions of
socialized medicine
...
letting the federal government play
doctor.
I say
take a different way. Give tax credits so people
without coverage can buy it
and tax incentives so that small
businesses can pool their resources and cover more of their
5
people. // When it comes to deciding what doctor? What hospital?
I say
trust the people to choose.
In every case, it's a matter of trust -- trusting Americans
to make their own choices.
And when it comes to the most
pressing issue of this election year -- revving up our economy -
- forgetting this idea is not just a nuisance; it can be
downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete
now that everyone is playing our
game? I know we can. Keep in mind
we are the largest
economy in the world. Inflation
the Willie Sutton who robs
the middle class of dreams
has been put safely behind bars.
The last time interest rates were this low
the Brady Bunch
wasn't even on television. Despite all the stories about our
problems
our workers are still the most productive in the
world -- more productive than the English, the Germans, the
Japanese.
But while our economy is growing
it must grow faster.
The question is: how do we do it? The other side suggests a
simple two-part solution. First, jack up government spending!
And then: raise taxes!
Now as you evaluate their idea, keep this in mind. Here in
Michigan, whether you like it or not, you already work 128 days
just to pay your taxes -- before you earn a single dime to spend
6
on your family. I don't think I have to ask -- does anyone want
to go for 129?
All this talk of spending and taxes causes me to wonder
...
if the other side is a little hard of hearing. The Constitution
says we want government "of the people, by the people, for the
people. " But they keep wanting to say
...
government of the
people, by the people, on the people.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense plan to jumpstart the
economy, help us over the bumps in the road.
I wanted to free up the energies of our entrepreneurs with
tax cuts; to give a $5,000 break to young couples trying to buy
their first home. Here in Michigan, that $5,000 would have been
equal to XX months of mortgage payments.
If they had passed it when I asked them to
we could have
created 500,000 jobs.
So I sent my plan up to Capitol Hill. And I probably don't
have to tell you what I got back: a raft of new spending and --
you guessed it -- new taxes.
I sent their plan back. I told them to try again. And I'm
still waiting. And I'm beginning to get the distinct impression
that the only way to get rid of the deadlock in Washington
is to clean a little deadwood in Congress.
Send me a new Congress that will work with me
...
and I'll
get this economy moving faster than Desmond Howard.
7
It all comes down to a question of trust. I trust you to
spend and save your money more wisely than any budget planner in
Washington.
Fortunately, I've been able to do some things on my own to
try and jump start the economy. Earlier this year, I announced a
moratorium on federal regulations -- to untangle the red tape
that ties so many businesses in knots.
Is it necessary? Listen to this story.
The time had come recently for a government agency to update
it's rules on hard hats. That's right: hard hats. And someone
in that agency stumbled upon a potential national crisis ---
workers being infected from hard hats. The alarms went off. The
bureaucratic blood boiled. One small fact was overlooked. There
wasn't a single documented case, anywhere in the United States,
of anyone getting infected from a hard hat.
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
disinfected before one worker passed it to another. Estimated
cost to business: $60 million a year. Measurable benefit:
slightly less.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
the books, and said: we think America can survive
without
hard hat regulation.
8.
But can you imagine what might have happened
if these
enterprising regulator guys had made their way into the vast,
territory of lunch pails and thermos bottles?
You'll say this is all common sense, and I agree. But
there's a certain type of person attracted to government for whom
the word "trust" has a strange meaning. Most of them have spent
their lives in government, and don't have much experience in the
real world.
They say they want to
"put people first. " But if you
look closely
the people they put first are all on a
government payroll.
A trustworthy leader of a free people must have the
confidence to say: "I trust you." I trust the people.
The point is not to let people fend for themselves.
Americans are a generous people; and we will never shirk our
responsibilities. But help must be offered with an eye to
government's power not only to help but to hinder.
And you must decide who you trust -- who has the
experience, the ideals and ideas -- to find that delicate
balance.
It must be someone who understands the essential fact of
American prosperity -- no government ever created a single job
(although it did keep Johnny Carson around for 30 years.)
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
9
from Harvard, or a gaggle of social scientists from a Washington
think tank.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you.
# #
July 23, 1992
MEMORANDUM FOR ANDY FERGUSON,
FROM:
MICHELE NIX
MN
SUBJECT:
PREADVANCE INFO
WISCONSIN
POTUS will speak at approx. 2 p.m. to an audience of 700
employees. Governor Thompson will probably introduce him.
Approx. 9-16 kids between the ages of 15-18 years old will be at
the event. They are participating in the kick-off of this
Apprenticeship program. They will spend 3 days on the floor and
2 days in the classroom. He will do a brief tour of the kids
work stations before his speech.
Outlook has produced George Bush baseball cards and will present
him with an uncut sheet of the cards at the event. The cards
show him at age 3, 10, as a flight crew member, in a cockpit,
with his family in Texas, as a young Congressman, as Veep, at KP,
as a grandpa, as a "leader," and a few others. Ed suggested
POTUS could say, "Oh, know, I hope they don't have my college
stats on there" or some such remark.
This event was supposed to be in Appleton but Banta dissed POTUS
because they didn't want to kick off the program when he came --
so they moved it to Neenah, WI, home of Outlook.
MICHIGAN
Ed is pretty sure the sugar wafers are just referred to as Dutch
Twins (Assorted Sugar Wafers). I'll check tomorrow.
POTUS will speak at noon in front of 600 people (employees and
community business leaders). He will speak in the new wing,
which is still empty, but being readied for use. The old factory
part of the factory will be visible behind him. The company is
experiencing growth and is very excited about the new wing.
POTUS will tour the plant, make his way to the middle of the
plant floor, have lunch with the workers and then speak. He will
probably be introduced by the Gov.
The sugar wafer people told ED: People here do not understand
how Congress works, how POTUS works with Congress, why it is so
hard for the President to get anything accomplished. The guy Ed
talked to suggested the President tell them how government works.
"We're plain, simple folk."
JOKE IDEA: This plant makes other things -- like granola (which
POTUS eats every day) ; they also make lo-fat granola (Ed
suggested: "Maybe my opponent should try some of that!" Hee
Hee.)
Also, the site is bigtime on the Greenbay Packers; Vince Lombardi
is their hero.
Douglice
WISC
10pg Apprenticeship p
Superintendent of
DR Herbut Grown Public Instruct
is a Democrats
Geogram working w/Republican
This Brogranhigh skill
Has trained then
high wage jobs
Chicken pluckers
"This program trains kids for
Clinton's plan trains them to
high skill, highwage johs.
be chickengluckers."
PAGE
2
1ST STORY of Level 1 printed in FULL format.
Copyright 1990 Federal Information Systems Corporation
Federal News Service
MARCH 15, 1990, THURSDAY
SECTION: COMMERCE & TRADE
LENGTH: 3885 words
HEADLINE: CB
EX-IM BANK CONFERENCE FOR
EXPORTERS AND COMMERCIAL BANKERS
SPEAKER: MICHAEL BOSKIN
CHAIRMAN, COUNCIL OF ECONOMIC ADVISORS
RE: ECONOMICS IN A CHANGING GLOBAL ENVIRONMENT
MODERATOR: JOHN MACOMBER, CHAIRMAN
EXPORT-IMPORT BANK
CAPITAL HILTON
KEYWORD:
EX-IM BANK CONF.-03/15/90 BOSKIN
BODY:
MR. BOSKIN: Thanks for that gracious introduction, John. I'll try not to
disappoint you with speaking too much economics in my remarks. I'll try to keep
them in English as well. Because we're getting started a hair late I'll even
dispense with the usual economics joke that I do when I address an audience such
as this. I don't think the subject of our economy, the changeing global economy
and recent events warrant a joke at this stage.
I want to do three things quickly so we can have an opportunity to take a few
questions before the hour is up. First I want to talk a little bit about where
the economy is, where it's likely to go. Second, I want to speak a little bit
about the administration's overall economic policy principles and policy goals.
Third, I want to share with you a perspective on the world economy, some
opportunities and challenges ahead.
I think the first place to start is to remind ourselves of a few basic facts
which seem to get lost in the discussion, including a lot of negative
discussion, about where the economy is and where its been going. The United
States economy is the largest, strongest, most productive economy in the world.
With less than 5 percent of the world's population we've produced 26 percent of
the world GNP. We're more than 2-1/2 times larger than the second largest
economy in the world, which is Japan. Our standing of living, our GNP per
capita is one-third higher than that, say, in West Germany or Japan or the other
so-called advanced economies we tend to compare ourselves with.
The economy has had a remarkable economic expansion. 87 months of economic
expansion, a peacetime record in the entire history of the United States. To be
honest the data only go back to 1854. We don't have data from colonial times to
1854. There are some people who say that because an expansion is long it must
end soon, that the economy will run out of gas, run out of steam or have a crash
landing.
Well, I'm getting a little tired of these transportation analogies. I can say
absolutely without doubt, every study by every economist of all stripes and
persuasions leads me to conclude that economic expansions do not come with
preset expiration dates. There is no need for an economic expansion to end,
this one in particular, any time soon. It didn't run out of gas when it hit
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the length of the second longest expansion. It can and we do expect it to
continue for some time to come.
The expansion has been remarkable. We've created 21.6 million jobs since the
expansion began at the end of 1982. That's more jobs than were created in all
of Western Europe, Canada and Japan in the same period with their much larger
combined population. GNP is up 32 percent, after adjusting for inflation, and
personal income after taxes and inflation around 30 percent. All that
tremendous economic achievement is attributed to the vitality, dynamism and
flexibility of our economy, which has been buffeted in the '80s, obviously, by
some major economic events -- large swings in the dollar in the mid-'80s,
tremendous technological changes and challenges from abroad.
Let's spend one minute talking about what happened in the last year. In 1989,
real GNP grew about two and a half percent, not as robust as the extremely rapid
rate in '87 and '88 -- solid performance, weak at the end of the year, as we had
been predicting. We had been predicting that late '89, early '90 would be the
slowest time for the economy, and that as 1990 progressed the economy would
improve. I'll come back to that in a second.
We added two and a half million jobs in 1989. This group in particular will
appreciate the fact that exports rose to a record level, $625 billion in 1989,
and the US once again became the world's number one exporter, a title we had
lost, hopefully only temporarily to West Germany.
The unemployment rate today, and indeed on average for all of us 1989, 5.3
percent, is the lowest since 1973, and that prosperity has been spread widely.
The unemployment rate for blacks and teenagers is the lowest since the early
1970s; for Hispanics since we began keeping separate records on Hispanics; for
women, for adult women, the lowest since 1969, and for the first time since
World War II for the last several years, the unemployment rate for adult women
in the United States has been relatively undistinguishable for that for adult
men, whereas previously the unemployment rate for women had been substantially
higher. That's a strong economy continuing its progress.
The economy, however, has slowed some late '89 and early '90, particularly the
industrial sector of the economy. We all know, for example, about automobiles.
As I said, we believe that will reverse itself and the economy will progress as
the year continues. But we cannot take continued economic growth for granted.
And we cannot be complacent about our role as a world leader, whether that's in
exports or in any other arena. That is why the administration places achieving
the highest sustainable rate of economic growth as its number one domestic
priority. Economic growth sounds like an abstraction, right? What does a high,
solid rate of continued economic growth mean? It means improved living standards
for our population, employment opportunities not only for new entrants to the
labor force, but for people seeking upward economic and social mobility, a
better legacy of prosperity to our children, the ability to uplift those most in
need, and the maintenance of American leadership in the world.
The administration has fashioned a growth agenda. That growth agenda follows
from our basic economic principles. We believe that the true engine of economic
growth must remain the private sector of the economy. And while there is an
appropriate role for government to play, setting a proper playing field, rules
of the game, and in some cases, financial support. And we need to make sure we
have a healthy environment in which the private sector of our economy can
prosper and compete.
We support a monetary policy which not only sustains economic growth but
predictably controls inflation. It's a milestone in this very long, solid,
important, record-breaking economic expansion that inflation has not
accelerated. It has remained steady in the 4 to 4.5 percent range. That's the
first economic expansion since World War II where inflation did not accelerate
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federal government borrowing, and our level of investment.
These impediments we face abroad, unfair competition, are things we should be
working hard to remove even it we had a trade surplus. But we'd be kidding
ourselves if we thought that dealing with those problems alone is going to make
a large difference to our overall trade balance. That we're going to have to do
at home by reducing the budget deficit, by increasing our own productivity, by
improving our education system and 50 on.
Let me say a word or two more about the government's role and then take a few
questions. We believe that our economy has opportunities and challenges, and we
don't want to remain complacent. Sometimes that means more federal spending, as
in R&D, sometimes it means a tax change, attack on the deficit, trade policy
vigorously enforced. But the federal government sometimes has a role in dealing
with national problems in ways other than just more federal spending, and
education is a very important component of that, a very good example.
The United States spends more per capita -- per pupil rather, per pupil on K
through 12 elementary and secondary education than any advanced economy in the
world except Switzerland. And what do we get out? Not nearly enough. The
president, with the nation's governors, has forged, for the first time, a set of
national education performance goals released recently in Washington. So that
by the year 2000 we have revamped our education system and we're getting the
performance, the output, the quality future labor force we need. Because we
won't be able to remain competitive in the twenty-first century, to be a world
leader and a great nation and an economic power with a second class,
ill-equipped labor force. And in the increase in the interdependent world
economy, we're going to increasingly need workers with greater skills, and
workers with the skills to adapt to change throughout their lifetime.
It's of fundamental importance. It is primarily a state and local
responsibility. It's also primarily where the funding comes from and will
continue to come from, but through a partnership with the governors, we can
galvanize every student, every teacher, every principal, every school board,
every mayor, every governor to revamp our education system through flexibility,
through choice, through accountability to focus on the performance of our
students as they work their way through the school system and come out.
I'll say a word about regulatory policy and conclude with a remark about changes
in the world and throw it open to questions. In regulatory policy, our goal is
to avoid unnecessary regulation, deregulate where economically and socially
desirable; for example, last year natural gas at the wellhead.
But where regulation is necessary, for example in the environment, we mean to do
50 in a way that sensibly balances the gains, in this case a healthier
environment, with the cost, the need for a strong, robust economy, and do 50
with mechanisms that allow workers and firms a maximum of flexibility to achieve
performance goals in the way that disrupts them the least, minimizes the cost to
rate-payers if it's utilities, the disruption of lost jobs if it's the auto
industry adjusting and so on. We have good examples of that that we have
pushed, and we are prevailing on in many measures in the new clean air proposals
working their way through Congress.
Let me finally conclude with a word about the remarkable changes in the world.
In Central America, in Central and Eastern Europe freedom is rising up. We've
seen the Berlin Wall come down. We've seen country after country in a matter of
months move toward, if not yet democratic capitalism, pluralism and democracy in
market reforms and more market-oriented economies.
I have a particularly personal side to that. Eighteen months ago I was a
professor at Stanford, as John told you, teaching principles of economics to
freshmen, explaining why centrally-planned economies don't work. Now I find
myself doing the same thing to foreign ministers and finance ministers and
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prime ministers from Central and Eastern European economies.
We live in remarkable times, and there are tremendous opportunities for
Americans. If EC-92 goes properly, we'll have tremendous opportunities for
American business in Europe, working in one market rather than 12 separate ones.
And we're carefully monitoring that to make sure that in the final resolution as
they complete the second half of the directives they not only are free
internally, but they are outwardly, externally open-minded, not closing their
borders. We have opportunities in Eastern Europe. We have opportunities in our
own hemisphere for new and expanded markets in an era where once again expanded
world trade will lead world economic growth. The single greatest contribution
to the economic growth of the entire world, since World War II, has been the
development of an open rule base for liberal trading system, the reduction in
tariffs in the Kennedy and Tokyo rounds of the GATT, and so on. We need to
strengthen our resolve to do that, and we can live in a world where it's not a
zero sum game, where despite fierce competiton from our trading partners, the
entire world can benefit from expanded trade and expanded economic growth.
So when I look forward to the 1990s, it's with optimism, it's with hope, it's
with the notion that these are opportunities much more than threats. And I'll
leave you with that. I wish you good luck on all of your achievements, all of
your opportunities and all of your business. I know with John Macomber and the
Ex-Im Bank that you guys would be doing a terrific job in competing and leading
throughout the world. Let me leave it at that and take a few questions. Thank
you all very much for your attention. (Applause.)
I couldn't have been so clear or 50 opaque that there are no questions.
MR. MACOMBER: Oh, don't worry, don't worry. Right in front.
MR. BOSKIN: Yes, sir.
Q (Off mike.)
MR. BOSKIN: The question is, could I elaborate on our basic trade imbalances
being macroeconomic in character?
If a country saves less than it invests, or produces less than it consumes, it
has to make up the difference by importing from abroad, and will therefore wind
up financing it by inflows of foreign capital. So, our basic trade, our basic
multilateral trade problem is that we don't save enough, we -- the government
borrows too much, personal savings too low, relative to our rate of investment,
relative to other economies. I think, to give some parameters to this, I
remember Congressman Gephardt in the 1988 election campaign saying that he
thought unfair practices amounted to 10 or 15 percent of our trade problem.
There are various studies that would put it in that ballpark, or a little lower,
or something.
But again, even if we had a trade surplus we ought to be dealing with unfair
practices. Unfair practice is something we should do away with, we should level
the playing field even if the United States were running a trade surplus.
Another way to think about that is, you guys have been in the export business
for a long time. Do you think, I mean, there were barriers prior to 1981 when
we were -- when we ran surplusses. The huge increase in our trade deficit
cannot -- between '81 and '87, cannot plausibly be explained by a -- a
quadrupling or a hundred fold increase in those kinds of barriers; and the
substantial -- although not enough -- improvement since then can't be explained
by those barriers falling all over. So if that puts it in perspective, maybe
that's a simple way of explaining it. Yes, sir?
Q (Off mike.)
MR. BOSKIN: The question is: Given recent events in Eastern Europe, what do I
think of the current level of funding the administration has asked for, some of
which we received -- some new funds we were asking for.
First of all, you have to understand that we are working not only ourselves,
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Federal News Service, MARCH 15, 1990
as the expansion progressed.
We've had a productivity rebound part way from the abysmal performance of the
'70s to the headier days of the '50s and '60s. Fiscal policy: we must not
mislead ourselves. Too many people seem to me have become complacent about the
budget deficit. They argue that because we have not had an economic apocalypse,
a horrible bout of inflation, or a collapse of the economy, that large budget
deficits can be sustained for an indefinite period of time, perhaps by borrowing
from abroad, which puts severe pressure on our external balance, including our
trade. I don't buy that view, and neither does the President.
We must continue to make steady progress to reducing the budget deficit. We
must change our attitudes. The federal government must no longer continue to
be, year after year, a chronic borrower draining the nation's scarce supply of
saving, driving up the cost of capital and impairing our nation's
competitiveness, dampening investment and retarding economic growth. Reducing
the budget deficit is the surest way to raise the nation's saving rate, so that
Americans finance a larger investment in the United States and abroad.
It's not just the size of the budget deficit that matters, though. It's what
you spend it on and how you raise the revenue. And we have some important
principles we've laid out there, too. We have a record high level of spending
proposed for research and development, doubling the budget of the National
Science Foundation by 1993 -- new advances in space, superconducting
supercollider and elsewhere.
The federal government must play a role in supporting the basic research and
development that has broad societal benefits that no single firm would have in
its own self-interest the incentive to undertake, because the returns are so
broad, the private firm cannot appropriate them. We want to tilt spending more
toward investment in our future, and less toward consumption today.
We believe it's important that we restructure our tax system. The gains in the
1980s of establishing the principle of a broad tax base with very low tax rates
is one we whole-heartedly endorse and support and intend to maintain. We
believe with respect to capital formation we've got some problems. We believe
it is desirable to spur entrepreneurial activity, to expand investment and
risk-taking, to expand job creation, new industries, new technologies, to
restore a capital gains tax differential.
We believe it is essential, if America is going to compete in technology-driven-
industries, that we make the R&D tax credit permanent. R&D is a long-term
investment process, and it's very difficult to count on a tax credit which is
voted on year after year about whether it will be renewed. We have a new family
saving plan to encourage saving for pre-retirement objectives, which we'd like
to see Congress move on as well. That's fiscal policy.
In trade policy we have severe trade frictions with a variety of countries.
Japan has been the one that has been most in the news of late for a variety of
reasons. It is the second largest economy in the world. Those are important
problems. We must remember our basic goal, however. I'll come back to those
problems in a second. Our goal is to lead the world to freer and fairer trade.
We want a level playing field of open markets, not closed markets. We're not
going to remain competitive and become more competitive by refusing to compete.
Our primary goal through the Uruguay Round of the GATT is to bring 15 areas not
well covered that cause problems for the rule-based trading system and for many
-- for our exporters into that rule-based trading system by protecting
intellectual property, agriculture and other areas. 15 of them.
It's important to understand, however, that our basic trade problems, our
external imbalance, our trade deficit, our current account deficit is primarily
a macroeconomic phenomenon reflecting an imbalance between how much Americans
save, including the amount of it drained away by the government sector through
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27 Weekly Comp. Pres. Doc. 1773
right into the communities itself. And that isn't a function of money.
We're spending more per capita on kids than almost any other country in the
world, and we still rank 13th in math and science. So our education goals
that include things like ready to learn, that means more for Head Start, which
we can help at the Federal level - more in math and science. "You're never too
old to learn" is one of the goals. And we're talking there, of course, about
adult education. All of these goals can be implemented without seriously
raising taxes, raising taxes at all, or seriously increasing spending for a
specific program.
So my answer to you is we will continue. We will be
it. She spends almost all her time out there, extracurricular time,
helping people, inspiring people to read, teaching parents to read to their
kids. The Federal Government can't do that.
So we've got a good education program. Whoever sent the question up,
Frank, you're right on target that we've got to do better. But I believe we
can, and I believe this is one area that we're on the way to radical
TM
TM
TM
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REFUSE
DOCK
(IFF)
LUNCH ROOM
OVEN ROOM
MACH
CONF.
####
STOR
MEZZANINE PLAN
(ABOVE TOILET ROOMS)
PLANT
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16
32
:
HOLLAND AMERICAN WAFER COMPANY
WYOMING,
MICHIGAN
WRAP & PACKAGING
OFFICE
MENS LOCKERS
MENS T.
WOMENS
WOMENS LOCKERS
WAREHOUSE
CHOCOLATE ROC
16162430759
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009 P16
JUL 22 '92 18:17
Date:
July 22, 1992
Page 1 of 2
To:
Jennifer Grossman
From:
Stuart Vander Heide
HOLLAND AMERICAN WAFER COMPANY
FAX (616) 243-0342
3300 Roger B. Chaffee Memorial Dr., S.E.
Grand Rapids, Michigan 49548-2367
Telephone (616) 243-0191
MESSAGE:
Following is additional information on Holland American Wafer Company, one of its
associates, and our discretionary bonus program.
More information will follow.
If you have any questions, please feel free to contact Stuart Vander Heide or Tim Mabie
at (616) 243-0191.
Thank you!
Tom Huizingh
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Holland American Wafer Company is a growing family of 370 associates. Our success is based
in our people, the American worker. That our associates are hard-working and quality minded
is a given. What sets us apart as an organization is the American values we all embrace. These
values include kindness, commitment, and a strong sense of family.
Michael Miller has been an associate at Holland American Wafer Company for 13 years. His
Mother, Rachel Miller, retired from the company in February of 1992 after 40 years of service.
Approximately four years ago, Mike was diagnosed with Multiple Sclerosis. As a father of
three and the primary wage earner in his family, Mike has bravely battled this dreadful disease
to maintain a perfect attendance record for the past three years. In December of 1990 when
Mike's health was at a low point and it became a struggle just to get. out of bed, our associates
organized a food and dollar drive amongst his co-workers and presented Mike and his family
with a heartfelt and generous Christmas gift. It is typical of the support our associates can draw
from the company and their co-workers.
Holland American Wafer Company works to perpetrate a sense of family and teamwork. It is
truly a case where we are all in this together, and we share equally in the struggles and the
successes. The company maintains a quarterly bonus program that percentage wise is paid on
an equal basis to all associates. The bonus is based on company performance and profitability,
and through the hard work of our associates it has become a steady, reliable benefit.
It is through the work ethic and craftmanship of our associates that we have been able to create
100 new jobs over the past year and are looking to add 75-100 more in the coming year. For
Holland American Wafer Company the future offers us a challenge that we know we can meet.
16162430759
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009 P01
JUL 22 '92 17:59
Date:
July 22, 1992
Page 1 of 9
To:
Jennifer Grossman
From:
Stuart Vander Heide
HOLLAND AMERICAN WAFER COMPANY
FAX (616) 243-0342
3300 Roger B. Chaffee Memorial Dr., S.E.
Grand Rapids, Michigan 49548-2367
Telephone (616) 243-0191
MESSAGE:
Following this cover sheet is an informational summary of Holland American Wafer
Company, along with a 1979 "Snack Food" article on our company.
We are working on information on special interest items regarding our associates, as well
as information regarding our unusual discretionary bonus plan and our attendance
recognition and award program. This information will follow shortly.
Thank you!
16162430759
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JUL 22 '92 18:00
HOLLAND AMERICAN WAFER COMPANY
I.
COMPANY HISTORY:
Holland American Wafer Company was started in 1919 and shortly thereafter
moved to 1823 S. Division for a period of 58 years. During that period, there
was a number of land purchases and building additions which enabled it to grow
to 35,000 square feet on two stories. Its continued growth resulted in the need
for a move to a larger location. In 1978, Holland American Wafer moved to
3300 Roger B. Chaffee Memorial Drive into a new 76,000 square foot building
on 10 acres of land. In 1984, the company added 25,000 more square feet, one
half of which is new production area and the other half is warehousing space.
The addition supported increased production capacity and entry into cereal bar
production. In 1991, seven more loading docks were installed along with cereal
production capabilities. During the summer of 1992 we are building a 35,100
square foot addition to our 101,000 square foot plant.
The company markets its products throughout the United States with better than
85% of its sales going to places outside of Michigan.
II.
CORPORATE PHILOSOPHY:
The goal of Holland American Wafer Company is to grow through technical
superiority in the baking of sugar wafers, cereal bars, cereal and other related
foods. We seek to fill the needs and desires of consumers in their purchase of
food products. We feel that this field of endeavor offers a good rate of return on
invested capital if these goals are diligently pursued and the day-to-day
management of the business is effectively executed. Our goal of maximizing the
return on invested capital co-exists with the goal to return dividends via a
company wide discretionary bonus program that rewards human effort. Human
effort is essential in the support of capital employed. These goals can only exist
when they are in harmony with the goals of the society in which we live,
particularly society's goals pertaining to food safety.
The baking of sugar wafers requires special machinery and this has been the long-
time expertise of our company. In the pursuit of making more and better wafer
products, our company moved to its new location in 1978, and since that time,
has had the best environment in which to make wafer products that exists
anywhere in the world today. This environment includes temperature and relative
humidity controls in the food production areas. This environment led our
company into cereal bar manufacturing, and later, cereal manufacturing.
Additionally, we have licensing agreements in the Netherlands and Canada for the
manufacture of cereal bars.
16162430759
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009 P03
JUL 22 '92 18:00
III.
PRODUCTS MANUFACTURED BY HOLLAND AMERICAN WAFER
COMPANY:
A.
Wafer Products:
We continue to grow in the cookie market by our manufacture of sugar
wafers and wafer products. We make products under our own label
(Dutch Twins), private label (for grocery chains) and contract
manufacturing (for some of the largest cookie marketers).
B.
Cereal Bars:
The cereal bar market has had ups and downs and a great deal of
turbulence since the early eighties. We maintain a presence in the market
with our label "Nutra Break", a small amount of private label, and two
products under a contract manufacturing agreement. The technology we
have learned and the contacts we have made have developed two new
sales potentials:
1.
Licensing agreements
2.
Cereal manufacturing
C.
Cereal:
The cereal part of our business resulted from our good performance in
contract manufacturing and because we have equipment that is particularly
well suited for specialized cereal products. We have developed another
important asset in our move into cereal production. The speed of project
completion of new and state-of-the-art processing technology is an
accomplishment of our people!
16162430759
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JUL 22 '92 18:01
snack
food
HBJ
HARCOURT BRACE JOVANOVICH PUBLICATIONS
PROCESSING/PACKAGING/MARKETING
$ ollan American new plant n
IS on
Pain
and
expanding
ckey
1-
16162430759
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009 P05
JUL 22 '92 18:02
HOLLAND AMERICAN'S NEW
PLANT COMES ON STREAM;
MORE CAPACITY PLANNED
After only a few months since start-up, Grand Rapids, Mich., sugar wafer producer is
planning additional capacity
By Jerry Hess, Editor
Holland American Wafer Co.'s new
home is as bright and cheery on the
inside as its earth-tone brick facade is
attractive on the outside.
What's more important, the $2
million facility ($3 million counting
equipment) provides the Grand
Rapids, Mich., firm's young manage-
ment team, John Vander Heide, Jr.,
president, and Stuart Vander Heide,
executive vp, the production capacity
and flexibility needed to satisfy ever-
changing marketing demands.
Production of sugar wafers, the
firm's only product, has increased
about a third since start up early last
fall. An additional two ovens will be
installed sometime this year or 1980 to
bring total production up another
100% over production at its former
facility. Current annual production is
measured at about 15,000 tons.
Located in a new industrial park in
southeast Grand Rapids, it is the only
plant in the U.S. with a continuous
wafer production system. (Most pro-
duce wafers on sheets from plate
John Vander Heide, Jr., left, and brother, Stuart, are shown in the production
ovens.)
area of their new plant. Behind them is the cooling tunnel of the firm's new
Visitors to the plant, especially
chocolate enrober.
children on tours, are delighted with
the Willy Wonka Chocolate Factory-
like effect achieved by the bright
cartoon-style murals which adorn the
walls of the production area. They are
also impressed with the modernistic
decor of the office and administrative
areas. These feature the concept of the
open office environment championed
by some leading office design man-
ufacturers who headquarter in the
predominantly Dutch Michigan city.
All of this is a dream come true for
John Vander Heide, Sr., patriarch of
the 60-year-old family business and
respected biscuit industry dean, who
serves as chairman of the board. He
currently takes a less active role in
business matters, and is enjoying
An artist's rendering of the new plant. Snow was so deep in Grand Rapids
that a suitable outside view of the plant was not obtainable.
16162430759
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009 P06
JUL 22 '92 18:04
Holland American is the sole U.S. manufacturer using
a European-style continuous wafer system.
Florida's sunshine to escape Michi-
consumption by 40%. This is ac-
roof features 4-in styrofoam covered
gan's harsh winter while recuperating
complished by the installation of
with a rubber membrane. Over this,
from recent surgery. (Snowfall in
radiant and convection burners and
stones hold the membrane in place.
Grand Rapids had exceeded 80 in. by
use of modern electronic controls
The loosely-laid system makes it easy
mid-January.) Nevertheless, his opin-
which ensure more efficient combus-
to add additional insulation at a later
ions are still sought on important
tion.
date if desired.
decisions.
The building is believed to be the
The 76,000 sq ft structure (71,000
Energy conservation
best insulated manufacturing facility
for manufacturing, etc. and 5000 for
in Western Michigan, according to the
offices) was designed with the ulti-
Holland American's new baking facil-
Vander Heides. The concrete wall
mate goal of reclaiming all the heat
ity incorporates a redesign of its
panels are like a sandwich with a
from the firm's ovens. Consumption of
burner system to reduce natural gas
2½-in. styrofoam on the inside. The
gas for space heating is now lower
15
The Dutch Twins brand of sugar wafers marketed by
Holland American. It also produces a substantial amount
of private label wafers.
The firm's cafeteria which overlooks the production area.
Carol Lowry, sales service manager, in her office. Office
furniture was designed by Herman Miller, Zeeland, Mich.
Tim Molefyt, left, purchasing agent, and Bill Dreuke,
shipping supervisor, confer in front of the 100,000-lb bulk
chocolate tank, manufactured by Blommer Machinery
Co., Chicago.
16162430759
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009 P07
JUL 22 '92 18:05
than at the former facility in spite of
department, where both batter for the
batter and creme mixers, and related
the fact that it is three times as large
wafers and creme for the fillings are
auxiliary equipment. Holland Ameri-
in cubic feet. This is achieved by the
prepared. This equipment was de-
can Wafer grinds its own powdered
location of the ovens next to the boiler
signed and built by the Fred Pfennig
sugar from granulated, as do most
and equipment room.
Co., Columbus, Ohio, represented by
bulk users of powdered sugar. The
New and the old
Jim Tiefenthaler of Tiefenthaler
latter equipment is manufactured by
Machinery Co., Milwaukee.
W.J. Fitzpatrick Co., Chicago. A new
Exercising typical Dutch frugality,
The system consists of bulk tanks
100,000-lb chocolate bulk tank was
Holland American Wafer is using a
(125,000 lb) for corn sugar (dextrose),
supplied by Blommer Machinery,
mixture of the new, the old and the
flour and sugar, blending tanks (sugar
Chicago, and a new chocolate enrober
retrofitted in its plant. Most of the new
and dextrose), blowers, flour sifters,
was purchased from Richard Frisse
equipment is found in the mixing
use bins, weigh hoppers above the
Co., represented by Werner Lehara,
Flour equipment was supplied by Fred D. Pfennig Co.,
Bulk sugar equipment at Holland American was supplied
Columbus, Ohio; mixers by Norman Machinery Co.
by Pfennig, represented by Tiefenthaler Machinery Co.,
Discussing the production schedule are Guy Heintzelman,
Milwaukee.
assistant plant manager, and Leona Fields, batter mixer.
Don DeRoad, plant manager, adjusts the speed of the
Several of Holland American's continuous wafer lines
continuous wafers emerging from the over room.
are shown.
009 P08
JUL 22 '92 18:07
16162430759
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Sugar wafer equipment has been adapted by Holland American
to fit its own special requirements.
Inc., Grand Rapids.
mixture is then blown pneumatically
on how this procedure could be auto-
The creme filling mixers (J.H. Day)
to the weigh hoppers above each of the
mated in a straight-through opera-
were transferred from the former
filling mixers. At that point, these
tion. But for now they want to make
location along with one of the old
ingredients are in a closed-loop sys-
sure their present operation is run-
batter mixers (Norman Machinery
tem, with the ingredients flowing from
ning smoothly.
Co.) In addition, a new batter mixer
the holding tank to the different weigh
Because the production of sugar
(Norman) was purchased SO both
hoppers and back again.
wafers is such a specialized procedure,
plants could be operated.
The ovens serving each of the lines
Holland-American often has had to
Holland-American Wafer currently
produce a continuous stream of wafer
adapt commercial equipment. par-
is running four oven lines, plus a plate
sheets (24 hours a day.) One forms the
ticularly ovens, to its own require-
oven for the waffle-style sugar wafers.
top of the wafer sandwich and the
ments.
Three of the four lines have two ovens
other the bottom. After the bottom
"It's been necessary," points out
to the line and the fourth one has
sheet is spread with creme filling, the
John Vander Heide, Jr., "because
three. The latter system is one that
top sheet converges with it to form the
we've seen a need for improvement. So
was obtained from a leading confec-
sandwich. They are cut in 11-in and
we've contacted different people, dis-
tionery manufacturer when it phased
12-in. lengths and fed into a wafer
cussed the problem with them and
out of wafer production. This machine
wirecut machine, then packed off in
have re-engineered different parts of
was completely rebuilt by Holland
glassine-lined boxes.
the equipment so that we believe it is
American's engineering department
Holland American Wafer has a total
better than originally designed."
to suit its requirements. All of the
of seven wrappers in its packaging
ovens are originally from the Euro-
department. Most packaging consists
Marketing flexibility
pean continent where the continuous
of cellophane overwrapped plastic
The Vander Heides strongly believe
wafer baking concept was pioneered.
trays. Strawberry, vanilla and choco-
their new plant ultimately will give
late flavors are generally combined in
them maximum flexibility and defi-
Wafer production
various size assortments for
nite marketing advantages as they
Here is the step-by-step wafer produc-
maximum eye and flavor appeal.
look into what they feel sure is a future
tion process at Holland American:
While this is advantageous from a
with strong potential.
Sugar and dextrose are first pre-
marketing standpoint, it does necessi-
"It gives the incentive to be con-
blended and then transferred to the
tate packing off in boxes and later
stantly on the lookout for where new
sugar grinder, moving from there by
manual placement into plastic trays.
products or new markets might be
vacuum to the holding (use) bin. The
The Vander Heides have some ideas
developed," says John "This might
The cooling tunnel for chocolate enrobed products was supplied by Richard Frisse Co., West Germany, represented by
Werner Lehara of Grand Rapids. The colorful murals on the walls of the production room were drawn by a sister of
the building designer.
009 P09
JUL 22 '92 18:09
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encompass a lot of different things. We
"The real difference in wafer baking
"We believe it produces a better,
want to make sure we keep as flexible
as compared with other types of cookie
more consistent product than is possi-
as possible in our operation to find out
baking," explains John, "is that you
ble with another type of oven. That's
where that has to be.
are baking something between hot
not to say that the others don't make a
"Flexibility-that's been one of our
metal surfaces rather than in a hot
good product. But being able to com-
key words all along, even in dealing
chamber. It's an entirely different
pare the two we believe, for all the
with sugar wafer products them-
process. Therefore, a person who
different reasons we find important,
selves," he adds. "We offer different
knows how to bake a good chocolate
that this system consistently does a
sizes, several different flavor combi-
chip cookie, for example, may not be
better and more efficient job,"
nations or whatever is necessary to fit
familiar with how to make a good
the type of market we're trying to sell.
sugar wafer shell, and vice versa.
Still expanding
For example, biscuit distributors may
There is a certain degree of science to
Due to expanding production, Holland
have needs for a certain size or retail
wafer baking, but the challenge comes
American Wafer is already planning
price that may be totally different
from knowing your own equipment,
an expansion of its bulk handling
from some of the other businesses. But
tailor-making a formula for your bat-
equipment. This planned expansion
we don't feel we can, in our position,
ter that fits your equipment best and
will double the capacity of its mixing
try to standardize on just a couple of
having the trained personnel who
department. A new bulk tank and
items and say, "That's it.' We want to
know their equipment and who know
sugar pulverizer will be installed this
have the flexibility to move with the
what changes might have to be made
year.
markets."
to counteract for minor variations that
And now, while its engineering
The wafer challenge
might occur. So it's a different state of
department is busily building two
the art than what you would find in
more ovens practically from scratch, it
Producing a good sugar wafer presents
managing the average cookie produc-
could be said that its commitment has
an exciting challenge, in the Vander
tion plant."
reached full flower. Who's to say that
Heides' view. A key is to produce one
Holland American's commitment to
Holland American won't be bursting
that is crisp and tender, and resists
a continuous production process-
the seams again for additional produc-
picking up moisture. For this reason,
compared with a sheet-type system
tion capacity once its current expan-
the new facility is both humidity and
prevalent in other plants-was made
sion is completed? Growth seems to be
temperature controlled. Making a
by the firm after years of experimenta-
a way of life for these industrious
creme filling which has good "eatabil-
tion and development, John points
sugar wafer bakers from Grand
ity" also is important, they emphasize.
out.
Rapids.
Mike Van Gorp, chocolate machine operator, checks the
console of the chocolate enrober.
A view of the shipping department.
16162430759
HAWEXEC
009 P10
JUL 22 '92 18:11
snack food
HARCOURT BRACE JOVANOVICH PUBLICATIONS
PROCESSING/PACKAGING/MARKETING
John S. Vander Heide Sr
Team Player Extraordinary
B&CMA Tech Conference report
16162430759
HAWEXEC
009 P11
JUL 22 '92 18:11
JOHN S. VANDER HEIDE,
TEAM PLAYER
EXTRAORDINARY
A member of the National Basketball Hall of Fame, today's chairman of
the Holland-American Wafer Co. found the fast-breaking game excellent
training for subsequent leadership roles in B&CMA and government
By Harold Scales, Managing Editor
John S, Vander Heide, Sr., elder
statesman of the biscuit and cracker
industry, has in his own quiet way
lived a many-splendored life, replete
with honors. To some extent the dis-
tinctions that have come to him across
his 71 years are reflected by the varia-
tions in the way his many friends and
acquaintances address him: Jan, John,
Jack, Van, Lefty
"If I can't recall a face at first, I
can just about tell where the person is
from by the way I'm addressed," ex-
plains this soft-spoken chairman of
the Holland-American Wafer Co.,
Grand Rapids, Mich. "I was born in
Grand Haven, about 30 miles west of
here. My baptismal name is Jan. That's
the Dutch way of spelling John, It's
pronounced yon.
"But if someone calls me John, I
can just about figure he or she knew
me from the time 1 spent in govern-
ment. If they call me Jack, it just
about means they're from Grand Rap-
ids, and perhaps my Calvin College
days here. Earlier, I had gone to high
school in New Jersey, where I Was
sometimes known as Van. Or Lefty."
The Lefty came from his southpaw
pitching days OR his high school base-
ball team. Two teammates-the
Knothe brothers-went on to the big
leagues. Vander Heide (pronounced
as if it was spelled Hide) found a bet-
ter way to sports immortality. He was
elected to the National Basketball
Hall of Fame by reason of the fact he
was a key member of the winningest
high school basketball teams in all of
sports annals. This was the Passaic
Wonder Teams which never lost a
game during his years there and some
time before and after-running up a
still unequalled win streak of 159
Holland-American, for which he
served as chief executive officer from
16162430759
HAWEXEC
009 P12
JUL 22 '92 18:12
'He is respected and trusted by all members of the biscuit
and cracker industry
II days, endorses that appraisal:
"John Vander Heide is an individual
who has been-totally dedicated to
the welfare of the cookie and cracker
industry," Creed says. "He has worked
in a statesman-like way all across the
years to further its interests.
"He is respected and trusted by all
members of the industry-is the
epitome of all that's good."
Youngest B&CMA director
A member of B&CMA since 1940,
when the organization was beset by
numerous* problems, Vander Heide's
leadership qualities seem to have been
quickly recognized by his peers in
larger companies. He became the
youngest man ever elected to its board
of directors up to that time. Ulti-
mately he served three terms as its
president (1953-54-55 and 1965). He
also served two terms as president of
the Independent Biscuit Manufac-
turers Assn. (1952-53), which shortly
thereafter merged into B&CMA. He
is generally credited with being an
important mediator in the merger of
the Biscuit Bakers Institute into
John S. Vander Heide, Sr., center. chairman of the board of Holland-American
Wafer Co., with the firm's two other top executives, his sons. That's John, its
B&CMA, ultimately making the latter
president, at left, and Stuart, executive vice president.
a true "one voice" for the industry.
Vander Heide is also known to the
B&CMA as the principal behind its
1943 until recently, is the leading
the U.S. Dept. of Commerce Busi-
educational work, notably its cor-
sugar wafer manufacturer in the
ness & Defense Services. And another
respondence course. He suggested and
United States. A family-owned opera-
is a citation by a National Director
pushed for such a course shortly after
tion, it employs about 160 people--
of Emergency Planning.
he became a member. This is memor-
chiefly in production. It is managed
And then there are lots of photos.
ialized by the Vander Heide award,
by his two sons. John, Jr., is its presi-
One shows Vander Heide with a
which annually goes to the person
dent, Stuart, its executive vice presi-
group of key officials of the Eisen-
who makes the best grade in the
dent.
hower years. Another shows him with
previous year's correspondence work.
"Either John, who has a master's
the then Vice President Nixon. There's
Until very recent years he made this
degree in marketing, or Stuart who
an autographed photo of Allen Dulles,
presentation himself. Now the award
has a master's in financing, is com-
former chief of the Central Intelligence
is bestowed by son Stuart, who is
pletely capable of running the com-
Agency. And an autographed formal
chairman of the B&CMA's educa-
pany well," the older man assures
photo of Queen Juliana and Prince
tional committee. (See page 40.)
you. "So I only get down to the office
Bernhard of the Netherlands
At
But John S. Vander Heide's most
for a few hours most days."
the other end of the spectrum, there
salient niche in history would seem
His is the largest in the executive
is a photo of Vander Heide with
to be his role as the first general
suite of offices in one corner of the
Phyllis Diller. And another with Ed
chairman of the nation's executive
big white painted plant located just
Sullivan. Still another shows his two
reserves, a responsibility he held for
a few blocks south of the heart of
daughters, Barbara and Joan, with
two years. Alternately, he can be re-
downtown Grand Rapids. His office
Captain Kangaroo.
membered as the man who probably
is very. different than the quiet lairs
The sort of "tip-of-the iceberg"
must take most of the credit (or
of most board chairmen-the walls
glimpse of his past afforded by the
blame) for launching the survival
being decorated with extraordinary
office walls suggests he is a truly
biscuit. (Much in the news recently as
memorabilia.
extraordinary man. Draw him into
it is being phased out of bomb shelters
There are; for example, several
reminiscing and the impression grows
across the nation. See page 13.)
plaques, such as the one from the
that his life is one of the strongest
"The government found out in the
Biscuit and Cracker Manufacturers
endorsements of the maxim that "We
Korean War that it could not easily
Assn. recognizing him as a lifelong
ourselves the better serve by serving
get executive calibre people to come
member. Another testifies that he is
others best."
to Washington to serve," Vander
a member of the U.S. National De-
Joseph Creed, executive vice presi-
Heide says in explaining how he was
fense Reserve emeritus. Still another
dent of the B&CMA, who has known
pulled into the bureaucratic flood
is a certificate of service award from
Vander Heide since early World War
tides of Washington. "They didn't
16162430759
HAWEXEC
009 P13
JUL 22 '92 18:13
respond like they did for the War
ing like you never saw before," as
Co.; Frank J. Delaney, 3r., president
Production Board in 1941, when
one observer noted. President Eisen-
of the Biscuit & Cracker Manufac-
there were many unemployed--in-
hower declared, according to the of-
turers Assn.; and Ralph Morris,
cluding all kinds of highly qualified
ficial minutes, that it had. not cost
Standard Brands, Inc.
people."
the government one cent, for which
The U.S. Dept. of Agriculture also
-with partiality and parsimony-he
quickly became interested. (Those
National food director
expressed his "grateful thanks."
were the days of cΓop surpluses and
The executive reserve idea faded
the USDA saw part of its role as
He recalls that it was in 157, in
into history only about two years ago
being the alleviation of world hunger).
the Eisenhower years, that he first
was asked to serve his country. The
(1974.) It simply became outmoded
The chain of events led to Nabisco
Dept. of Defense was endeavoring
by the general recognition that any
developing a high protein biscuit
which looked and tasted like a graham
to prepare itself against any food
next major war is likely to be "all-
out-nuclear," against which recovery
cracker. New York City decided it
scarcity contingency, and was looking
for a national food director to see
planning becomes largely meaning-
would be an ideal emergency food
that supplies remained adequate.
Friends in the biscuit and cracker in-
dustry had suggested that Vander
Heide was a first-rate choice. Al-
though he regards himself as some-
what a-political, he felt he had to
serve.
"I had been too young (12) to serve
in the First World War and too old
(nearly 37) with too many respon-
sibilities to serve in the Second," he
explains. 'I felt I had to say yes."
The position had some serious
drawbacks. It was a WOC position-
without compensation. And he was
expected to operate out of Washing-
ton, D.C. Vander Heide agreed to
serve for six months if he could just
spend two days a week in the nation's
Capital. However, his tour of duty
extended far beyond his original com-
mitment.
This came about because Congress
decided that national defense con-
Holland-American specializes in sugar wafers. Much of its volume Is private label.
siderations called for organization of
an Executive's Reserve-men who
less, Vander Heide explains. More
for stocking its bomb shelters with,
could run the nation should the cen-
about this a little later.
And so the national survival biscuit
tral government (Washington, D.C.)
During the time that he was a
program which was ultimately to cost
be devastated by nuclear attack from
Washington insider, Vander Heide
the United States about $70 million
enemy bombers.
became convinced that the United
was launched.
To get the Executive Reserves idea
States should take the lead in promot-
to become a reality in the Business
ing a high protein biscuit (cookie)
Why survival biscuit didn't
and Defense Service Administration
for underdeveloped nations.
"It wasn't money wasted," Vander
of the Dept. of Commerce (where
"I called a meeting in New York
Heide says today. "You've got to re-
he was serving as National Food Di-
City," he recalls. "I was surprised at
call the atmosphere of those days. It
rector), Vander Heide planned a na-
my own nerve. "But I was encour-
was a time when atomic war seemed
tional meeting of its former WOCs.
aged by several others in the industry.
inevitable. The national government
The program that he drew up so im-
And the UNICEF (United Nations
was advocating bomb shelters. I know
pressed Secretary of Commerce Sin-
Children's Fund) branch of the United
a lot of people that built bomb shelters
clair Weeks, under which the BDSA
Nations was interested
next to their homes." (Among his
served, that he showed it to President
Those present from UNICEF in-
earlier public service roles, Vander
Eisenhower. The President was also
cluded Maurice Pate, the executive
Heide served-by respective appoint-
greatly impressed, suggesting that such
director, Dr. Harold Humphrey, its
ments of Governor Swainson and
a meeting include WOCs of all cabinet
food technologist, and Dr. D. Sabin.
Governor Romney-as director of
departments.
Among others attending were Dr. C.
Emergency Planning for the State of
G. King, The Nutrition Foundation;
Michigan.)
Executive reserves chairman
Dr. W. H. Sebreli, Jr., director, Nu-
That anxiety filled era, so strange
Vander Heide found himself gen-
trition Sciences, Columbia University;
now in retrospect, was suddenly and
eral chairman of the resultant giant
W. W. Paddon, Sunshine Biscuits; L.
paradoxically terminated when Russia
gathering of many of the nation's very
S. Bickmore, president; Nabisco; Dr.
launched its first sputnik.
best minds. It was, in short, "a meet-
Russell M. Shultz, National Biscuit
"I was in Washington when it went
16162430759
HAWEXEC
009 P14
JUL 22 '92 18:15
happen. The to the
board were those of a leader and visionary'
over," he recalls. "I just happened to
tion town of Dutch roots. He had
an acoustical dome at the performing
be waiting to see the head of emer-
learned they were visiting Washing-
hall; a highly successful Van Cliburn
gency planning. He was in a meeting.
ton, D.C. It occurred to him to send
concert (which was risky because of
Neither he nor anyone in the meeting
the queen a telegram inviting her to
the high fees demanded by the young
had any real 'answer' to give the
Grand Rapids might work magic. It
virtuoso)
press
did. Almost immediately she tele-
Vander Heide's tendency to be so
Sputnik, he explains, foreshadowed
gramed her acceptance. It. all snow-
amazingly unselfish of his time (and
that the Russians would be able to
balled and state department officials
money) seems to stem, in part, from
hit any part of the United States with
of both countries took over the event.
the influences of his earliest years.
a hydrogen warhead. Organizing a
(Being a good team player, that was
His father was a minister in the
defense against this kind of threat was
okay with him.)
Christian (Dutch) Reformed Church.
just not possible. The only defense
As for the more real kind of magic,
A member of a family of four young-
was a good offense-the deterrent of
Vander Heide was an amateur ma-
sters, two sisters and a younger
similar delivery capability.
gician for years. Ultimately he had
brother) he recalls nine of his earliest
Vander Heide recalls seeing film
so many requests to perform at vari-
years being spent in Chicago where
of Defense Dept. atomic explosions
ous functions-which required he
his father pastored a flock. Then there
which made him realize what the
spend much time perfecting his acts
was the move east-and the memor-
effects of this kind of warfare would
-that he finally had to give it all up.
able experience of becoming a mem-
be.
Today he performs only for his grand-
ber of the Passaic, NJ. High School
"A hydrogen bomb would make a
children.
Basketball Wonder Teams.
crater 10 to 15 miles across," he re-
A big percentage of his outside
calls. "But thermal waves would burn
time for several years was also de-
Blood, sweat and wins
everything for a radius of 40 or 50
voted to the Grand Rapids symphony
The teams were mentored by
miles, Then there would be fallout.
orchestra. He served six years (two
"Prof." Blood, a veteran coach who
And
separate three-year terms) as its presi-
appeared to be far in advance of his
The concept of survival had be-
dent.
time.
come meaningless.
"As a president, he was simply
"He believed in short passes. The
Community leader
marvelous," one board member says
least possible dribbling. And never
today. "He made things happen. The
pass the ball unless the receiver was
Vander Heide has been as active
ideas that he brought to the board
really open," Vander Heide recalls.
in community affairs at Grand Rapids
were those of a leader and visionary.
Although he was only 6-1, Vander
as he has been in other areas of his
He brought out the best in the people
Heide Was usually the center for the
life. He is credited with being an
around him. He's a master at getting
team unless it was against an opponent
early leader of the Christian School
people together and working with
with whom he had trouble in getting
System there and initiating an organ-
them in a very supportive way."
the tip-off. In this case, a taller boy
ization to promote music in it. Today
She recalls that ticket sales reached
would play the center spot. Vander
the system is estimated to educate
a new high during his presidency.
Heide, being left handed, would
about one-fifth of the city's grade
Among several innovations Vander
"twist around" to left forward.
school children.
Heide fostered the idea of a paid
"You learned all the tricks of the
He has been a lifelong member of
concert master. This became a trend
trade," he adds, of those distant days
the Christian Reformed denomina-
so that today the symphony has a
etched in chromacolor on his memory:
tion, serving it in many areas of re-
conductor in residence and 17 paid
"You learned how to quickly gauge
sponsibility.
first chair musicians in an orchestra
how high the referee would throw the
It Was Vander Heide who arranged
of 80. It is rated as among the very
ball. You weren't allowed to tip the
for a visit by Queen Juliana and
best in the United States.) Other in-
ball until it reached the peak of the
Prince Bernhard of the Netherlands
novations during his terms, she re-
throw. But by much practice you
to Grand Rapids in 1952-a very
calls, was establishment of a youth
time yourself to tap it just before it
big event in this 300,000-plus popula-
orchestra; getting the city to install
hit the top.
This photo is one of
many which recall
Vander Heide's years
in Washington. That's
him on the left, with
top officials of the
Eisenhower years,
16162430759
HAWEXEC
009 P15
JUL 22 '92 18:16
He did an awful lot of jumping,
since those were the days of a jump
players, chiefly resulted in the recog-
might accept him, since his father was
after every basket.
nition that the win streak record that
an alumnus.
As the unbeatable team drew in-
had held for more than 50 years was
Calvin was indeed glad to welcome
creasing national attention, some
never likely to be equalled; The City
him to its classes late. But he found
of Passaic put up $10,000 to help
sports writers began to scoff. They
its brand of basketball at times seemed
underwrite the induction expenses in-
said that if it were to play a really
like slow motion. Still the toughness
cluding bus fare up to Springfield,
tough opponent outside its area for
of pre-med courses and the lateness
Mass., which is headquarters for the
its 100th win-streak game, it would
National Basketball Hall of Fame.
of his start Were challenging enough.
be snapped. Coach Blood thereupon
Vander Heide recalls it all as an ex-
Nonetheless, he did okay with pre-
invited sportswriters of the four
med for three years.
ceedingly memorable reunion time.
metropolitan New York newspapers
But then there was this chemistry
Oddly and tragically, several of those
to pick the team they felt could best
class, where he had met a girl named
who participated with him in the event
do this, from anywhere. The team of
Ann Heyboer. Ann's father owned a
died shortly after this late-coming
St. Mary High School, Odenburg,
highlight in their lives.
sugar wafer company. He asked young
N.Y., was the choice. Vander Heide
Vander Heide if he would represent
recalls that Passaic won by an almost
Fate sends him home
the company as a salesman on the
lopsided score: 58 to 39.
East Coast, during his summer vaca-
Vander Heide had to have an ap-
But the Hall of Fame induction of
tion. The resultant highly successful
pendicitis operation the fall he was
all the players of the Wonder Teams
sales experience made Vander Heide
to enter college. By the time he re-
realize that the business world was
didn't take place until June 1974.
covered, it was too late to enroll in
The efforts of one of the team mem-
where he belonged.
the big Eastern schools. Never one
bers, a Col. John Roosma who had
As many who know him from
to accept delays, it occurred to him
his long years of service on behalf of
later been one of West Point's great
that Calvin College at Grand Rapids
B&CMA will agree.
The story of sugar wafers
communion and friendship. By the mystical 14th Century.
wafers were tonsidered healing agents were kept in
homes to ward off evil spirits
were
carried
on
long.
and the taste of # teal like
journeys to insure safety were even buried with the
waters made with honey."
dead to assure future well-being! The tasteless, unleavened
EXODUS 16:31
wafer had become almost omni-presenti I
If wasn't until 1803 that the modern sugar wafer made its
appearance - at the great Faris Exposition. The "new
cookie" was an instant success. And no wonder. It was 99
delicate as the wafer the church had been serving for cen-
turies. But It was sweet
"like wafers made with honey."
All Europe was eastatic with the new taste sensation. In
the Netherlands. it became 8 traditional treat at family
gatherings, particularly christenings. in Sweden, It became
The story of sugar waters is really the fascinating legend of how a
popular at funerais for reasons known only to the
Swedeat (Sugar wafers still are the lergest selling cookie in
biblical delicary became a favorite international cookie, You'll enjoy
Europe accounting for 25% of all cookies eaten by Euro-
reading about "the world's oldest cookie" and of its strange travels from
peanal)
jewish to Carbolic to Protestant churches
from
ice
cream
pariors
to
Naturally. it didn't take long for news of the new cookie
households on three continents!
to travel aeross the Atlantic. And. in typical fashion, Amer.
icen businessmen of the 1900's promptly found another
Over 6000 years ago, the forerunner of today's sugar wafer made its
way to serve sugar wafers: with ice cream at a corner
dramatic debut in biblical history. It was described 08 Manna - sent by
parlor. This pleasing tests combination remains on Amer-
God to the sweet-craved Israelites as they wandered in the wilderness.
ican institution: from coast-to-coast Ene restaurants, hotels
The Book of Exodus says. "The taste of It (Manna) was like wafers made
and airlines continue to serve sugst waters with Ice cream.
with honey." Previous to the "Menna Miracle" the Israelites, who were
Once introduced to the scrumptious teste of sugar wafers.
on exodus from Egypt, had baked 0 testeless type of wafer using un-
American housewives flocked to their kitchens to bake the
leavened dough.
new cookie. But then, as now, the results were disappoint.
Understandably, the delightfully sweet Menne left 8 lesting impression
Ing. For. because of its unusual consistency and baldng
OR the taste buds and religious life - of the Isrnelites. Samples of
techniques. the sugar wafer remains one of the very few
Manna were kept in their sacred tabernacle while man-made wafers
cookies which mother can not duplicate. So, down to the
became an important part of their everyday life and of their ecelesiastical
carner store she trouped. And virtually every store" sold
ceremonies. Levitieus mentions "unleavened wafors anointed with oil"
them. Boop-poo-de-del The sugar wafer craze W08 onl
as acceptable meal-offerings (Chap. 2. VS. 4.) Even today, Orthodox Jews
And the craze never quil. Today sugar wafers are one of
celebrate the "Feast of Unleavened Bread" more commonly known as
the fastest selling cookies in the supermarket
a
favorite
the "Fassover."
of American families.
With this food form so important to the liturgy of the Jewish Church. it
The following pages show how this famous and legendary
is easy to understand the transition by which unleavened wafers of the
cookle is prepared in the kitchens of America's
Passover became prominent in the Last Supper of the early Christian
oldest and largest sole manufacturer of
Church, and, later in the Eucharist of the Roman Catholic church as well
sugar wafers and creme wafer sticks.
as in the Communion of Protestant English Episcopal, Lutheran and
Scottlah churches.
All agrtz of quaint legends surround the unleavened wafer in Its travels
through the historical Dark Ages, Middle Ages and Repaissance Period.
OR remnent of this is still evident: some 5c 4
Already in the 8th Century It W&S common practice to place 4 wafer
10c, variety and department stores have
under the alter slab of 3 newly consecrated church. In the 10th Century
retuined their cockie counters and continue
distant churches would often exchange unleavened wafers as & sign of
to disponse bulk sugar wafers from caddies.
Reproduced is the story of sugar wafers "from the pages of the Bible to supermarket shelves" as written six years ago by
Jan (John) S. Vander Heide in a promotional bulletin used by the company.
ED
1)
Sugar capital of the free world, factory called "Dutch
Twins" (Grand Rapids -- Wyoming, MI). Noon, eating lunch
there first with workers. 15 telepr. Contact Stu
Vanderheide, Pres. of Holland American Wafer Co. (616/243-
0015)
--co founded 1919 by Stu's grandfather. Wafers, lattice top
with sugar filling. Also make Kellog's low-fat granola
cereal (POTUS eats granola every morning). Also package
wafers for grocery stores.
joke about grandkids
600 mostly factory workers, also local business
--also contact: Colleen Paro (Mich BQ) 517/337-1992
2) Appleton, Wisconsin: Banta Company (?) Jim Milslagale, vp
for human resources. ****NOT CONFIRMED****
JULY 21, 1992
MEMORANDUM FOR STEVE PROVOST
FROM
ANDY FERGUSON
SUBJECT
MICHIGAN ECONOMIC SPEECH
To give intellectual context to the President's programs --
not only in economics but in other areas as well -- I propose we
employ the idea of trust. The logic might go as follows.
Twelve years of Republican leadership have changed the
world, and now we can change America -- hence the theme of this
election year. Change has a flipside: Trust. The American
people will choose a leader they trust to lead change. They will
choose the President, we think, because he has the character that
people trust. But there's another reason: He trusts them, and
his policies prove it.
On issue after issue, the President believes that the
American people can be trusted to make the important decisions
that affect their lives. He believes that parents, not
government, should choose their children's schools -- that
parents, not the government, should determine who cares for their
children. Ditto health care: the principle that underlies his
comprehensive program is choice -- because he believes Americans
are intelligent enough to make those decisions themselves.
And when LA went up in flames, the liberal answer was to
goose the old failed, authoritarian programs for the inner city.
George Bush suggested returning decision-making power to the
people themselves -- through homeownership, welfare reform, and
incentives for private job creation -- because he trusts them.
After all, they're Americans.
In each area, his programs stand in sharp contrast to those
of his opponent, who wants most of these decisions to remain
firmly in the hands of government planners. Nowhere is the
contrast sharper than in economic policy.
Tax increases, after all, are grounded in the assumption
that the government knows better than you how to spend your
money. (This also applies to high government spending.)
Excessive regulations, the same thing: George Bush trusts
businessmen to run their businesses -- ie, make money for their
shareholders and create jobs for their communities -- without
government micromanagement. The capital gains tax cut is
predicated on the belief that businessmen must take risks -- and
should in fact be encouraged to do so. He likewise rejects the
rationale of industrial policy: he trusts the market (that is,
the conglomeration of decisions freely made by consumers and
producers) to allocate resources productively and efficiently.
George Bush's belief in the intelligence and good sense of
the American people is not only compatible with self-government
and free enterprise -- it is self-government and free enterprise.
America's prosperity wasn't hatched around a conference table in
Washington; it was determined on the shop floor, in the
boardroom, in the research lab, where free men and women made the
decisions and took the risks. Like his opponent, George Bush
wants to change America; unlike his opponent, he wants to change
America according to the principles that made us the most
prosperous nation in history.
The foregoing, written in haste, is not a speech outline, just an
intellectual framework. But it allows us to hit several targets
at once -- social engineering, high regulation, big spending, tax
increases -- and it places George Bush squarely on the side of
the people, over against the taxers and spenders.
It's interesting to note, by the by, that we hear
continually that Democrats at last understand the importance of
free enterprise. Well, sort of. According to speaker after
speaker in Madison Square Garden, Democrats now like free
enterprise not because it's rooted in freedom, but because it
creates massive amounts of wealth to finance their
redistributionist schemes. I don't think that's what Adam Smith
had in mind.
822
10333
REGULATIONS
Facts:
In 1990, regulations cost the economy at least $185 billion
or $1,700 for every taxpayer. The government generated more
than 5.3 billion hours of paperwork -- enough to keep 2
million people busy doing nothing but filling out forms.
In recent times more than 2,000 regulations have come out of
Washington every year -- taking up about 53,000 pages of fine
print in a book called the Code of Federal Regulations.
"Regulations do impose real economic costs. For example,
compliance with the Clean Air Act Amendments of 1990 has been
estimated to cost roughly $25 billion per year. That assumes
the most cost-effective implementation strategy -- some
estimates go up as high as $40-$50 billion."
"According to a recent Rochester Institute study, the total
annual cost of federal regulations is over $400-$500 billion.
Federal regulations end up costing each family over $4200 per
year; by the year 2000, the costs are projected to rise to
over $4600 per year. "
- from remarks by David MacIntosh
before Environmental Law
Section, Indiana State Bar
"We deregulated airlines, trucking, railroad, telephone
service, oil prices, and natural gas. The result is American
consumers are $100 billion richer each year.
"18 million new jobs were created -- a quarter million new
jobs a month, every month, for 68 consecutive months."
- From talking points of the
Vice President
before the 10th Anniversary
meeting of the Council
for National Policy
Arguments:
"Every business transaction, every unneeded government
regulation (created by lawyers that disguise themselves as
Senators, Congressmen, and government officials) causes
businesspeople like myself to spend hours and days of our time
in totally unproductive areas. This inhibits the growth of
the business and invariably, these expenses add to the cost
of goods that are produced."
- Letter to the Vice President
from a Midwestern publisher
"Who pays for regulatory excesses? The American worker pays,
when he or she loses his or her job because regulations force
factories to shut down or move overseas. Farmers pay when
their land is effectively taken out of use through excessive
regulations. The consumer pays, when he or she has to pay
higher prices for a product -- or when there are fewer
products to choose from. Small businesses pay, when they are
forced to shut down from excessive compliance costs to
regulations and endless filing requirements."
Three premises of the Competitiveness Council:
"First, the a free market and a competitive economy are the
best allies of the American people. Our economy is what made
us a world leader, and it's a strong economy that will keep
America at the forefront of a rapidly changing global market.
"Second, we believe that when there are market failures, there
is a proper role for government policies to protect the public
interest. In the area of the environment, this means strong
environmental protection. This Administration has a strong
record and has been pursuing a sound and balanced
environmental protection policy. As the EPA Administrator
Reilly noted in his April 30 National Press Club speech, 'By
the traditional measures by which Administrations are judged
on the environment -- budget support, vigor of enforcement,
and new initiatives -- President Bush and the environment both
have fared well.'
"Third,
the less regulation -- the less government
intrusion into people's lives -- the better. This means that
those industries and markets which are competitive should be
deregulated. Where no acceptable levels of competition exist,
the Administration is committed to regulating in the least
intrusive manner to correct market failure. Moreover, when it
appears that some regulatory strictures are necessary, we try
to develop them in ways that are compatible with the
imperatives of Federalism, the protection of individual
liberty and traditional values, and are least disruptive of
existing markets and most cost-effective."
- from remarks by David MacIntosh
before Environmental Law
Section, Indiana State Bar
Administration Position:
Many Federal regulations have a disproportionately negative
impact on small business.
The President has asked all major Federal regulatory
agencies to examine their exisiting regulations and weed
out or modify those that impose an undue economic burden
on small business.
For example, to increase access to capital for small
businesses, the SEC has announced proposals to reduce,
and in some cases eliminate, the public disclosure
requirments for small companies that issue stock.
- from The Bush Administration
Record, briefing book on
Administration policies
Personal Anecdotes:
Spoke with businessman in Toledo, Ohio who spends 95% of his
investment budget on meeting environment and safety standards
(Michael Rufner; Sun Refining and Marketing)
Also from meeting with Rufner: British Petroleum (BP) was
fined $2500 when they submitted an evacuation plan that did
not account for prevailing winds.
THE WALL STREET JOURNAL WEDNESDAY, FEBRUARY 5, 1992
Economic Rights: Guild Cuts Off Gornrows
JUDGE STANLEY SPORKING Hes he
ington. "We re talking about hair-braid
try was the purpose of Washington cos-
Mr. Boltck, who works at the
got a lot of cosmetologists against [him]?
ing." Still, there's a possible prison term.
metology board. The Congressional Record
for Justice in Washington, already
?
Is that what fighting you
"If I'm supposed to go to jail for operating
of 1938 quotes an owner of a small salon
victory against? d'competitive
LIB DIN ABDUL UQD Only
a salon without a license, he said with a
who opposed the board as "sponsored by
laws.
In
presented
and villains were dis-
the board, or The Board of Cosmetol
laugh acknowledging the absurdity of the
the owners of the remaining number of ex-
who
ilain was missing. How
ogy
clusive and high-priced beauty shops" who
fill
thought, "I'll deal with that.' He could
stands
to
be
son, who presided when
CLINT BOLICK: com-
also do for discriminatory regulations what
"hope to limit or control competition."
1905
rem
barred
que Act of 1909 placed a
prised by law exclusively Hologists
Rosa Parks did for segregated buses.
A report by the District of Columbia bar
stands.
John
Pratt
68%
tax" on corporate in-
who practice in this TAB
Mr. Uqdah and his wife, Pamela Far-
association in 1985 said the city's "fcosme-
L violated the POWER Protection Clause
venue Act of 1913 (the
JUDGE SPORKIN: Some world we live
rell, specialize in cornrows and braids,
tologists are grossly overregulated," with
cause other vendors weren't similarly
I Amendment did not
in
tax at a rate of 2% as
Someone trying to make a living and-
which they call "an integral part of our Af-
rules that create "a significant barrier to
ited. "A court would be shrinking
rican culture." Customers pay' $85 to
entry into the profession." The study noted
most basic duty if It abstained from
it instead levied a nor-
$1,000. The firm sells videos and style-
that rules require certain equipment for
an analysis of the legislation's articulate
1% and an additional
Rule of Law
books, has a toll-free phone number for
objective and the method the
on the income of indi-
questions about children's hair, employs
Constitutional Colf?
legislature employed to
r it well.
By L. Gordon Crovitz
eight and grosses about $500,000 a year.
that objective, Judge Pratt
DONALD C. ALEXANDER
Ms. Farrell has trained some 250 braiders,
Judge Sporkin might find the
to
several of whom are now competitors.
cosmetology board has more will
it's like Russia, isn't it?
The problem is that it takes $5,000 and
with blocking competitors
early two decades of
MR. BOLICK: It's like Russia used to
nine months of study to get a beautician's
with protecting consumers
affer-Curve stalwarts,
be.
license, but the cosmetology board's rules
Mr. Uqdah could got
ely fathered the term
have little to do with Cornrow's business.
from higher courts Mr.
nics" has been con-
This court hearing last month is part of
ard, Herb!
the, battle. for economic rights under the
The beautician exam Includes finger
wrote a book in 1987 setting
Constitution, which Mr. Uqdah hopes will
waves, which were popular in the 1930s,
litigation strategy for
CHARLES A. PARKER
stop regulators from closing down his hair-
and pin curls from the 1950s, but nothing
civil rights, if Changing
braiding salon: It says comething about the
about braiding.
He got a letter of praise from
times that MM Ugdah, a black nationalist
Mr. Uqdah says his shop doesn't use
tice Thomas. then chairman
ous piece might have
the Captain Scuttled
capitalist. has as his lawyer Mr. Bolick a
chemicals or other potentially dangerous
Equal Employment 0 pc
lawver whose mentor and youn-
materials or techniques. Yet lawyers for
Commission where Mr. Bolict
For my own part,
gen son's godfathez is Justice Clarence
the regulators say it is "beyond peradven
worked. Justice Thomas wroten
to It as the Demo
sion Act of 1990 The
Thomas
ture that these regulations are for the nub-
the book makes the philos
LLC benefit in terms of public health, wel-
connection between civil
the day ceased all
Federal Distric Court Judge Sporkin
fare and safety
the natural law He
publican Party, as I
blocked E cease and desist order against
Make that somewhere this side of
Equally important, but more
minate the Republi
Mr. Under bending more court arguments
adventure. The tendency of people in
schools with wer than 25 students ("four
nificant because of Its rarity, is the
today. At Issue is a 1938 law passed by
trades to use licensing laws to block com-
shamped bowls, 10 stoves, six dryers, three
pelling relationship
between
one else seems to
Congress to create Board of Cosmetol-
betition goes back to the medieval gullds.
blowers" while larger, more established
rights and economic liberty
ogy for Weshington DD, to license beau-
Here, the five members of the cosmetology
schools have no such requirements.
Justice Thomas also had some
GEORGE M. RYAN
ticlans. and Lounh's Cornrows 3. Co has
board are all owners Off other salons
All this may make the case against Mr.
ing comments during his confir
been under regulatory attack by the COS
There's a conflict or interest, Mr. Ugdah
Uqdah seem absurd, but the law makes
hearing about the suspect history
metology board salon started in
says. These salon owners on the board
these process or equal protection
pational licenses. Laws that did not
First
1980. Regulators fined Cornrown + 000 and
don't understand what we do here; but they
hard to win 10 "only" an economic right is
my grandfather to enjoy the fruits
ordere. it to close unless Mr. Undah CAME
our Jan 3 name one
know we re a threat. He noted the irony
at stake. In legal jargon.Judges now de-
labor, Justice Thomas said, were so not
billes with cosmetolom regulations.
osure: New Hamp
of occupational licensing laws, Wused
cree that economic rights are not "funda-
erful and so arbitrary that he liter.
rats' Boon as the
'We're not talking about gene splicing
against blacks during Jim Crow, now being
mental" and that economic regulations
had to get a drink before he went
Кселе, N.H. is no
or test tube bables or something compli-
used by a primarily black board against &
need only have a "rational relationship" to
censing bureau in Savannah to get
ad wrong. The fact
cated here," Mr. Ucdah explained in his
salon specializing in African hair styles:
a lestitmate goal. Still, there's nothing le-
cense he needed to drive his oil THE
didate chose to do
shop, part of his home in northwest Wash
There's good evidence that barring en-
gitimate about barring competition.
Some things haven't changed
ampaigning in the
ene is a reflection
1. not Its overall
; hurt by the na-
ith the rest of the
rgetic people and
are enabling the
7/16/102
A Politician's Dream Is a Businessman's Nightmare
WALL 06/01/92
Wisdom too often never comes, and so
would have made me a better U.S. senator
tecting our customers from fire hazards,
these injuries, not every misstep is the
In short, "one-size-fits-all" rules for
one ought not to reject it merely because it
and a more understanding presidential
etc. While I never have doubted the worthi-
fault of someone else. Not every such
business ignore the reality of the market-
comes late.-Justice Felix Frankfurter
contender.
ness of any of these goals, the concept that
incident should be viewed as a lawsuit
place. And setting thresholds for regula-
Today we are much closer to a general
most often eludes legislators is: "Can we
instead of an unfortunate accident. And
tory guidelines at artificial levels-e.g.. 50
It's been 11 years since I left the
acknowledgment that government must
make consumers pay the higher prices for
while the business owner may prevail in
employees or more,- $500,000 in sales-
U.S. Senate: after serving 24 years in high
encourage business, to expand and grow.
the increased operating costs that accom-
the end, the endless exposure to frivolous
takes no account of other realities, such as
public office. After leaving a career in
Bill Clinton, Paul Tsongas, Bob Kerrey and
pany public regulation and government
claims and high legal fees is frightening.
profit margins, labor intensive VS. capital
politics, I devoted much of my time to
reporting requirements with reams of red
Our Connecticut hotel, along with many
intensive businesses, and local market
public lectures that took me into every
tape." It is a simple concern that is
others, went bankrupt for a variety of rea-
economics.
state in the union and much of Europe,
Manager's Journal
nonetheless often ignored by legislators.
sons, the general economy in the North-
The problem we face as legislators is:
Asia. the Middle East and Latin America.
For example, the papers today are
east being a significant cause. But that
Where do we set the bar so that it is not too
In 1988. I invested most of the earnings
By George-McGovern
filled with stories about businesses drop-
reason masks the variety of other chal-
high to clear? I don't have the answer. I do
from this lecture circuit acquiring the
ping health coverage for employees. We
lenges we faced that drive operating costs
know that we need to start raising these
leasehold on Connecticut's Stratford Inn.
provided a substantial package for our
and financing charges beyond what a
questions more often.
Hotels. inns and restaurants have always
others have, I believe, changed the debate
staff at the Stratford Inn. However, were
small business can handle.
held a special fascination for me. The
of our party. We intuitively know that to
we operating today. those costs would
It is clear that some businesses have
Mr. McGovern, the 1972 Democratic pres
Stratford Inn promised the realization of a
create job opportunities we need entrepre-
exceed $150,000 a year for health care on
products that can be priced at almost any
idential candidate, is president of the Mid
longtime dream to own a combination
neurs who will risk their capital against an
top of salaries and other benefits There
level. The price of raw materials (e.g.
dle Eastern Policy Council in Washington.
hotel. restaurant and public conference
expected payoff. Too often, however, pub-
would have been no reasonable way for us
steel and glass) and life saving drugs and
facility - complete with an experienced
lic policy does not consider whether we are
to absorb or pass on these costs.
medical care are not easily substituted by
manager and staff.
choking off those opportunities
Some of the escalation In the cost of
consumers. It is only competition or anti-
In retrospect. I wish I had known more
My own business perspective has been
health care is attributed to patients suing
trust that tempers price increases. Con-
about the hazards and difficulties of such a
limited to that small hotel and restaurant
doctors. While one cannot assess the merit
sumers may delay purchases, but they
business, especially during a recession of
in Stratford, Conn., with an especially
of all these claims, I've also witnessed
have little choice when faced with higher
the kind that hit New England just as I was
difficult lease and a severe recession. But
firsthand the explosion in blame-shifting
prices.
acquiring the inn's 43-year leasehold. I
my business associates and I also lived
and scapegoating for every negative expe-
In services, however, consumers do
also wish that during the years I was in
with federal, state and local rules that
rience in life.
have a choice when faced with higher
public office, I had had this firsthand
were all passed with the objective of
Today. despite bankruptcy, we are still
prices. You may have to stay in a hotel
experience about the difficulties business
helping employees, protecting the environ-
dealing with litigation from Individuals
while on vacation. but you can stay fewer
people face every day. That knowledge
ment, raising tax dollars for schools, pro-
who fell in or near our restaurant. Despite
days. You can eat in restaurants fewer
times per month, or forgo a number of
services from car washes to shoeshines.
Every such decision eventually results in
job losses for someone. And often these are
the people without the skills to help them-
selves - the people I've spent a. lifetime
trying to help.
I received a letter from a farmer in Wooster, OH. His farm
is being threatened by those who would rather see his
property a wetland, than the productive farmland that
he has cultivated into during his 50 years of farming.
He makes a pretty good point when he says that:
The letter reads: "I think we need to preserve the natural
wetlands we have, but I am sure not in favor of taking
prime farmland and creating or making new wetlands
Instead of having all this wetland for future
generations, we need to preserve the farmland we have
in order to feed them. We lose hundreds of thousands
of acres every year. II
Agriculture is America's #1 industry. Let's try to take
care of them.
TALKING POINTS FOR PRESS BRIEFING
Statement of the Problem:
Congress is passing more and more legislation mandating
regulations which will impose more and more burdens on the
economy.
Paul Craig Roberts has said that this is a regulatory
recession.
The burden of these regulations on American workers,
consumers, and small businesses is enormous. Federal
regulators cost our country up to $400 billion dollars
every year. That adds up to $4300 per American
household.
A May 1991 study completed by the City of Columbus, OH
shows the cost of compliance to Federal Environmental
Regulations -- alone -- to be $1 billion over the next
10 years. That's $900 per household in Columbus. The
entire city budget for Columbus last year was $591
million.
Anecdotes
I have received hundreds of letters from all over the
nation. And believe me, Americans are furious over this
new form of tax that is being needlessly imposed upon them.
Wetlands. I received a letter from Bob Priest, a
farmer in Wooster, OH. He is 59 years old and farmed
all his life on land that has been in his family for
over 70 years. Overnight Federal regulators came in
and told his family they have to give up virtually the
entire farm to become a wetland sanctuary. And they
are only going to get paid a quarter of what it is
worth. (see letter)
Davis-Bacon. I received a letter from a small business man
who runs an ambulance service in Bedford, New York. He bid
on a Federal contract to provide ambulance service to a
local VA hospital. Because of the Davis-Bacon requirements
(that he pay inflated wages) he estimates that the cost of
his service will jump from $198 per call to over $6800 per
call. (See letter)
Endangered Species Act (Spotted Owls). Last January I
visited a logging town in Anderson, California. There
Nadine Bailey told me about finding her husband in the
kitchen crying late one night --he said he couldn't take
laying off any more people from their small business. Her
husband was a strong man, who had been through much --
including fatal accidents with colleagues -- but she'd never
seen him this upset. She described a small business in a
small town where the people he was laying off were boyhood
friends, neighbors, and even family.
EPA vs. the Tooth Fairy. Not long ago the EPA declared
that extracted baby teeth were "hazardous waste" and
therefore couldn't be returned by dentists. We've
changed this -- now kids can take home healthy teeth.
(See article)
Red Tape for Truck Drivers. One red tape nightmare just
came to my attention this week. Under a law passed several
years ago, truck drivers are now required to obtain special
"commercial drivers licenses". Now, a nationally uniform
license is a good thing, it gets bad drivers off the road.
But I understand it has caused a horrific back-up at many
state DMV's. I hear many drivers have been waiting in line
for days to get their paperwork complete. These are mostly
small businessmen who need to be out on the road making a
living -- not waiting in a government office. Now that I'm
aware of it, I will talk to Secretary Andrew Card of the
Department of Transportation, to see what can we can do to
help.
What is the solution?
Republicans have been advocating a three pronged economic
policy for years.
1. Lower taxes and spending
2. Low interest rates and stable monetary policy
3. Deregulation
We are having trouble getting Congress to cooperate on
reducing taxing and spending. However, we are capable of
accomplishing much in the area of regulatory relief.
The President announced in his State of the Union Speech a
90-day moratorium and review of federal regulations.
Although the 90-day moratorium and review is only 2/3 of the
way over, it has already been very successful.
[Point to OIRA Charts]
Chart 1 - The average number of core regulations being
published in the Federal Register is down from a weekly
average of 51 regs per week in 1991 to 23 regs last week.
Chart 2 - The number of significant rules being reviewed by
OMB has dropped from an average of 45/week in 1991 to about
25/week during the moratorium.
1/27/92
AD
General Office:
FLAV-O-RICH, INC.
10140 Linn Station Road
Subsidiary of Dairymen, Inc.
Louisville, Kentucky 40223
(502) 426-6455
please call you
January 20, 1992
4,
us
to use
The Honorable Dan Quayle
want
com companies panis
Vice President of the United States
Chairman of Council on Competitiveness
Old Executive Office Building
this
17th and Pennsylvania Avenue N.W.
Washington, D.C. 20500
name
Dear Mr. Chairman:
In my twenty (20) year professional career as an Engineer, I have
served in various positions in both high and low profit industries.
the I have often thought that the drafting and enforcement of of
the laws governing numerous aspects of business lend themselves many to
ventures. the United responsible point undermining States that corporate I is prevents think not of only the citizens, this entry not entire is free and especially the "free" but often cost the of requires enterprise pendulum doing true business in exiting often system. swings business in these to To
the Environmental Regulations. I believe that we should be the governed area to of
we live in and educates the rest of us, however, it seems that
point that prevents those irresponsible from ruining the world
are law governed to the extremes as opposed to the moderate. Although we
Regulation/Enforcement to which no reasonableness factor
generally recognizes intent, there are areas of Environmental
applied. I believe this is a fear factor in regulators in is
effort to try to be fair and not personally liable themselves or an
jeopardize their employment.
represent the above:
There are two (2) good examples that in my opinion philosophically
Our country did itself a great disservice in the handling of
that environmental consultants, and the media, we generated beast
asbestos. Between the lawmakers, the environmentalists, the
gobbled up industry and tax payer monies (and continues a
Honorable Dan Quayle
January 20, 1992
Page 2
to do so) and expended energies that could have been much more
productive. The data did not support the response originally
based on medical histories of John Mansville employees. On
October 18, 1991, the U.S. Court of Appeals for the Fifth
Circuit ruled that E.P.A. did not gather substantial evidence
to support its rule and that it failed to consider less
burdensome alternatives to a ban. I recently read that the
chances of having asbestos related cancer had the same odds as
being struck by lightening.
Additionally, our reaction to PCB was less than productive.
Many maintenance personnel worked in PCB up to their elbows
for their entire careers and found the extremes in handling
the product to be preposterous. This is not to say that
regulations should not have been written to prevent further
contamination of our food chain, however, the method was knee
jerk rather than practicable. I am not aware of a human
cancerous death associated with PCB.
The handling of underground storage tanks (U.S.T.'s) does not seem
to be as misdirected as the previous examples, however, the
financial and energy requirement has been burdensome to some
companies and fatal to others. While industry is struggling with
compliance to the regulations, it's the Environmental Consulting
Industry that is gaining monetarily and in political clout.
With the above as an introduction, I have two requests:
The first is that your Council look at the rationale behind
including the Dairy Industry with those proposed to be
required to perform storm water runoff plans and sampling. It
would be my suggestion that industries impending the greatest
risk to storm water pollution be required to meet the
regulations prior to a blanket requirement. I suspect the
Dairy Industry poses little threat as compared to other
industries. Certainly the Dairy Industry is struggling
financially and we could better apply our energies. What is
the problem, who is generating the problem, and do the
proposed solutions meet the reasonableness criteria?
The second area that I would like the Council to consider is
the enforcement of regulations governing sewerage treatment.
Honorable Dan Quayle
January 20, 1992
Page 3
Generally speaking, the main constituent of dairy waste that
causes problems with Public Owned Treatment Works is
Biological Oxygen Demand (BOD), howêver, we are constantly
defending other requirements of ordinances mainly due to a
lack of understanding and flexibility on the part of
regulators. We need relief in this area through the
application of a reasonableness factor.
Thanks for your time in reading this letter and any consideration
for the above requests.
Sincerely,
Herald Clark
Gerald T. Clark, P.E.
Vice President
Operations Services
GTC/s
CC: Dr. Steve G. Conerly, Ph. D.
Chief Executive Officer
Flav-O-Rich, Inc.
Reprinted from THE WALL STREET JOURNAL.
TUESDAY, FEBRUARY 4, 1992
© 1992 Dow Jones & Company, Inc. All Rights Reserved.
So You Want to Get Your Roof Fixed
By RICHARD ROSENOW
Suppose you own a roofing business,
OSHA's action level. You can't do this, of
course, until the 10-day EPA notification
at a temperature above 212 degrees, so
and one morning you get a call from your
that your crew won't have to wait two or
period has passed.
neighbor, whose garage roof is leaking. He
Once you begin any repair work, you
three hours at your neighbor's home for
tells you that the roof is asphalt-based, and
will have to "adequately wet" the materi-
the asphalt to heat, you must:
you agree to send a repair crew to try to
als. EPA defines this as "thoroughly pene-
Mark the side of your roofing kettle
fix it. In order to fully comply with federal
regulations that are in effect today, you
trating" the asbestos-containing material,
with a sticker that says "HOT" in capital
letters;
would have to:
which is an interesting concept for a wa-
terproof material like asphalt. EPA also
complete shipping papers before the
First examine the roof to determine
stipulates that there be no "visible emis-
truck leaves your yard;
whether asbestos is present. There is a
sions" on the job, even if you can demon-
have emergency response procedures
good chance that an asphalt roof will at
developed in the event the kettle should
least include asbestos-containing base
strate that the emissions contain no as-
bestos fibers.
turn over en route to your neighbor's
flashings and cements; if they do, Environ-
home;
mental Protection Agency regulations will
You will then have to vacuum the dust
apply, and Occupational Safety and Health
generated by any "cutting" that you do,
be sure that your driver has been drug-
put it in double bags, and take it to an
tested, and has a commercial driver's li-
Agency regulations may apply.
cense;
approved landfill.
It is very likely that you won't know
You will also be responsible for prohib-
be sure that the driver completes his
from a visual examination whether as-
bestos is present. In that case, you will
iting smoking on the job site, and are sub-
log sheets for the day, and stops 25 miles
have to cut a sample from the roof, and
ject to fine if one of your employees lights
after he leaves your yard to see if the load
has shifted;
up.
patch it to avoid leaks at the point of the
You will probably wonder why your
be sure that your kettle has a hazard-
sample cut. You will then send the sample,
neighbor will be asked to absorb all of the
ous material placard, in addition to the
after you have bagged it properly, to an
"HOT" sticker mentioned above.
accredited laboratory, and delay your re-
costs associated with these steps, since
hundreds of test samples have shown no
Because your vehicle is being driven
pair work until the sample is analyzed. (In
asbestos exposures above acceptable limits
for work-related matters, you must be sure
some states, only a certified abatement
in roofing operations.
that the driver wears his seat belt, and has
contractor is allowed to make this test
You must ensure that your crew is
received driver training. If he does not
cut.)
trained about any hazardous materials
wear his seat belt, you, of course, will be
If you discover that asbestos is con-
fined.
tained in the roof, you must:
that they may encounter. (These will in-
Notify the owner (your neighbor) in
clude the gasoline you use to power the
Assuming you have met other OSHA
writing;
pump on your roofing kettle.) You will also
safety standards, and are satisfied you will
have to be sure that copies of the appropri-
be in compliance with local and state regu-
notify the EPA Regional Office (10 days
ate Material Safety Data Sheets are pres-
lations, it is now safe for you to begin.
prior to beginning work, which will mean
ent at the work site, and that all containers
Your most dangerous act, however, is yet
your neighbor's roof will continue to
are properly labeled.
to come: presenting your neighbor with his
leak);
Your crew must also be thoroughly
bill, and explaining why your costs have
be sure that at least one person on your
trained in handling these materials. This
increased so dramatically in the three
repair crew is trained to satisfy EPA re-
quirements;
will be determined not by what steps you
years since these regulations have been
conduct air monitoring on the job, once
have taken to train them, but by what your
promulgated.
you are able to start work, to determine
employees tell the OSHA inspector who
asks them what they have been taught.
Mr. Rosenow is president of the Na-
whether emissions of asbestos will exceed
Because you are transporting asphalt
tional Roofing Contractors Association in
Rosemont. Ill.
DOW JONES REPRINTS SERVICE
(609)
520-4328
P.O. BOX 300
DO
NOT
MARK
PRINCETON, N.J. 08543-0300
REPRINTS
REPRODUCTIONS
NOT
PERMITTED
March 24, 1992
MEMORANDUM FOR AL & DAVID
FROM:
JOHN COHRSSEN
SUBJECT: "MILLIONS OF LIVES, BILLIONS OF DOLLARS"
SAVINGS IN LIVES
FDA's Position
The FDA staff have refused to estimate the number of lives that
could be saved by shortened drug approval times. The staff
claims that it is hard to estimate how many patients have not
benefitted from experimental or new drugs. Furthermore, FDA
staff also believe that any FDA confirmation that lives would be
saved is an admission that FDA is killing people by slow
approvals.
Our Estimate
We estimated that "millions of lives" would be saved over a
period of 25 years. For a total of one to two million lives
saved, 40,000 to 80,000 deaths would need to be prevented each
year. Given that 750 new drugs are expected to be approved over
the course of the next 25 years, and that each would be approved
in 3.75 years less that it now takes, these savings in lives
appeared reasonable. Working backwards, each more rapid approval
of a new drug would prevent, on average, 1,000 to 3,000 deaths
that would otherwise occur because of the unavailability of the
new drug. Many more lives will be saved by new drugs treating
major causes of death. Data from Sam Kazman of the Competitive
Enterprise Institute present examples of how deaths were
prevented by the approval of two new drugs.
The 1988 approval of misprostol was the first drug to
prevent certain gastric ulcers caused by aspirin and
other nonsteroidal anti-inflammatory drugs. Estimated
annual deaths were 10,000-20,000. of these 8,000-
15,000 are now saved by this drug each year.
In 1987 FDA approved the drug streptokinase--the first
drug which could be intravenously administered to
reopen the blocked coronary arteries of heart attack
victims. of approximately 700,000 heat attack patients
hospitalized each year, 9% die in hospital and thus,
streptokinase could save 11,000 lives each year; each
year saved in the approval time would save 11,000
lives.
SAVINGS IN DOLLARS
The "billions of dollars" was derived from Tuft University's
Center for Drug Development that estimated a total cost of $231
million for each new drug that receives FDA approval. For each
approved new drug, a 1.5 year saving in FDA approval time alone
will save an estimated $28.5 million on average for each new drug
or 12.3% of the total cost. With accelerated approval drugs, the
total savings would be increase on average to $60 million or 26%
of the current cost.
In the US roughly 30 new drugs are approved each year. Depending
on whether these drugs fall into accelerated approval or not, the
savings per year range from at least $755 million per year to as
much as $1,800 million.
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
April 29, 1992
FACT SHEET ON THE PRESIDENT'S REGULATORY REFORM INITIATIVE
In a Rose Garden speech, the President today gave a report
on the regulatory reform initiative he launched in his State of
the Union address. He also outlined several additional steps to
reduce the regulatory burdens that are ultimately borne by every
American consumer and worker.
The President observed that excessive and misguided
regulatory requirements "impose hidden taxes and costs on
society" and often have unintended, pernicious consequences. For
example, when Congress tries to legislate the fuel efficiency of
our cars, "highway fatalities can increase and American auto
workers can lose jobs.
Three months ago, the President took decisive action to
reduce these hidden taxes. He asked the major federal regulatory
agencies to set aside a 90-day period to evaluate existing
regulations and programs and to accelerate initiatives that will
create jobs and economic growth. He also imposed à moratorium on
new regulations that could unnecessarily hamper economic growth.
As described in detail below, the President's reform
initiative, under the guidance of the Council on Competitiveness,
has already produced a substantial reduction in the burden of
federal regulation. As shown in the attached table, the
Administration's best estimate is that the reforms it has
completed or set in motion since January 28 will ultimately save
American consumers and workers roughly $15 to $20 billion per
year (although the savings could be as high as $22 billion or as
low as $10 billion) That amounts to between $225 and $300 per
year for the average American family. These actions will also
increase the amount of available credit by approximately $15
billion, making home ownership more affordable and providing the
financing necessary for further business expansion and job
creation.
As the President emphasized, this is "just a down payment on
savings to come."
1. Additional Steps Announced By The President To Reduce
Regulatory Burdens. To ensure that the entire federal government
continues to give highest priority to regulatory reform, the
President took the following steps:
Expedited Timetable For Implementing Additional Reforms.
During the 90-day review, Federal regulators identified
hundreds of rules to be modified or repealed in the near
future. The President announced that he has asked
regulatory agencies to implement these and other reforms
identified during the review period on an expedited
schedule.
-- Specifically, the President asked that actions not
requiring additional public comment be completed by
August 1, 1992, and that, wherever possible, actions
requiring public comment be finalized by September 1,
1992.
-- Each agency will submit an updated report on these
activities to the President on September 1, 1992.
Extension of The Regulatory Moratorium. The President also
announced that, in order to ensure that adequate resources
continue to be devoted to the regulatory reform initiative,
the moratorium will be extended by 120 days. He again
emphasized that the moratorium does not cover regulations
needed to protect against imminent threats to human health
or safety. He also requested that all federal agencies
prepare a thorough cost-benefit analysis of each major rule
issued during the moratorium period.
Better Cost-Benefit Analysis of Legislative Proposals.
Finally, the President directed federal agencies to estimate
the likely costs and benefits of legislative proposals under
active consideration by Congress or to be proposed by the
agency. The Office of Management and Budget, in
consultation with the Council of Economic Advisors, will
provide technical guidance on the preparation of these
estimates.
2. Impact Of The President's Initiative Thus Far.
Discussing the success of the 90-day review, the President noted
that every agency asked to participate in the initiative has
already taken concrete steps to reduce regulatory impediments to
economic growth. Indeed, federal agencies took more than 200
separate actions. Following are some of the most significant
reforms completed or initiated during the 90-day review:
o
Accelerating Approval of New Drugs. The FDA recently
announced important reforms that will reduce by as much as
four years the overall time it takes to develop breakthrough
drugs. These actions, which are the culmination of efforts
begun by then-Vice President Bush's Task Force on Regulatory
Relief, will ultimately save millions of lives as well as
billions of dollars.
- 2 -
I
As a result of these reforms, patients will have
earlier access to drugs to treat diseases such as
cancer, AIDS, Alzheimer's disease, depression, and
cystic fibrosis.
-- Under a pilot program, these reforms made it possible
for the AIDS drug DDI to receive FDA approval in only
six months.
Protecting Workers' Rights. The President signed an
Executive order requiring Federal contractors to inform
employees of their rights under the Supreme Court's Beck
decision.
--
This action will help ensure that nonunion employees
are not forced, through mandatory union dues, to
support political causes with which they disagree.
Between two and three million of the 19 million workers
represented by unions are not union members, but must
pay compulsory fees.
-- An employee who elects to exercise his or her Beck
rights would receive a refund of approximately $400 per
year. This annual refund amounts to about a week's
wages for workers represented by unions.
Reducing Regulatory Burdens On Biotechnology. The U.S. is
the world leader in high-tech biotechnology -- the use of
biological processes to make products with living organisms.
Until recently, this innovative new technology was singled
out for increased regulatory oversight, despite a scientific
consensus that it poses no inherent risk.
-- Under a new policy developed by the President's Council
on Competitiveness, federal regulators will exercise
oversight only when a specific product poses an
unreasonable risk.
-- With the help of this new policy, the U.S.
biotechnology industry is expected to grow from a $4
billion to a $50 billion a year industry by the year
2000, providing innovative products for American
consumers and new jobs for thousands of American
workers.
Reducing Food Prices. Labeling costs are part of the price
of foods all Americans buy. To reduce these costs and
provide needed flexibility, the Department of Agriculture
will implement an exemption from labelling requirements for
small businesses. To ease the transition to new labeling
standards, the USDA is also extending the implementation
period for another year.
- 3 -
Reducing Financing Costs. Financing costs are a significant
part of the price of almost all goods and services. The
Administration has taken several actions to reduce these
costs.
-- The Office of Thrift Supervision issued a rule
permitting nationwide branching by the Nation's 2,000-
plus savings associations. This change will foster
safe, sound operations and will result in savings to
borrowers and lenders of up to $1.5 billion dollars
annually. For a typical family taking out a $100,000
30-year loan on a new home, for example, these changes
could translate into a $180 reduction in annual
mortgage payments.
-- The four Federal agencies that regulate banks and
thrifts -- the Federal Reserve Board, the Federal
Deposit Insurance Corporation, the Comptroller of the
Currency and the Office of Thrift Supervision -- have
agreed to apply uniform policies and procedures in
supervising banks and thrifts. This change, which
builds on proposals made by the Task Force on
Regulatory Relief in 1985, will eliminate unnecessary
compliance costs incurred by financial services
institutions.
-- By clarifying that lenders are ordinarily not liable
for environmental damage done by their borrowers, EPA
removed a significant barrier to lending that will
increase credit availability.
Helping Small Businesses Raise Capital. Small businesses
account for more than two-thirds of new jobs. The
Securities and Exchange Commission has taken a number of
actions to eliminate barriers to investment in small
businesses, thereby facilitating business expansion and
increased employment.
-- The SEC issued a proposed regulation to increase from
$500,000 to $1 million the amount that a small business
can raise through stock offerings without registering
with federal authorities.
-- Also, the SEC has made it possible for thousands of
small businesses to use streamlined registration forms.
If used by one-quarter of eligible businesses, up to
$18 billion could be raised in initial public offerings
under one of these new forms. Such businesses could
thereby save more than $180 million on legal and
accounting fees.
- 4 -
--
The SEC has also published an interpretation that would
allow mutual funds to invest a greater percentage of
their assets in the securities of small businesses,
further increasing the capital available to this
dynamic part of our economy.
Reducing Transportation Costs.
--- Shipping costs for consumer goods account for about 8
percent of the average family's budget. To reduce
these costs, and to eliminate unnecessary regulatory
burdens of some 52,000 small trucking companies, the
Interstate Commerce Commission initiated a proceeding
to abolish a regulation requiring motor carriers to
keep a unique set of "regulatory" accounting books in
addition to standard financial and tax records. The
ICC also initiated a proceeding to spare motor carriers
from having to obtain a registration stamp for each of
their vehicles from each state in which they operate.
--
To reduce air travel costs, the Department of
Transportation has implemented its "open skies" policy,
which provides open access to U.S. markets for all
European countries willing to permit U.S. air carriers
free access to their markets. Increased competition
will lead to lower fares and increased spending in the
U.S. by foreign visitors.
Implementing The National Energy Strategy. The Federal
Energy Regulatory Commission has taken several steps to
achieve important objectives of the National Energy
Strategy.
-- It adopted a major natural gas pipeline restructuring
rule that will promote competition in the gas industry
and increase the use of this clean fuel. The FERC's
reforms in the natural gas pipeline industry will
eventually reduce utility bills for the 50 million
households that heat with natural gas.
--
It issued a proposal to allow "incentive regulation"
for interstate natural gas pipelines, oil pipelines and
electric utilities. This new policy will give these
companies a greater incentive to innovate and to
economize on operating costs.
--
It has also issued a proposed rule removing regulatory
barriers to the sale of natural gas as a fuel for use
in motor vehicles.
- 5 -
Meeting Environmental Goals In A Cost-Effective Manner.
--
The Administration has developed several innovative,
market-based approaches to reduce the costs of meeting
the Clean Air Act's stringent standards. One such
initiative, known as "Cash for Clunkers," will help
businesses meet the tough standards of the Act by
giving them emission reduction credits if they take
older, high-polluting automobiles off the road.
--- The Commodity Futures Trading Commission has
contributed to these efforts by implementing expedited
procedures for approving new futures contracts. One of
the first contracts approved under these new procedures
was a futures contract in sulfur dioxide allowances.
This new investment vehicle will significantly reduce
the costs to utilities of complying with Clean Air Act
standards, thereby ultimately reducing consumers'
utility bills.
Creating More Competitive Communications Markets.
-- The Federal Communications Commission took steps to
allow competition among international communications
satellite systems. Its actions will lead to lower
prices for the more than one billion phone calls made
each year between the U.S. and other countries.
-- In an effort to strengthen the rapidly changing
broadcast business, the FCC increased from 12 to 30 the
maximum number of FM and AM radio stations that can be
owned by a single owner, and for the first time will
allow ownership of more than one AM or FM station in a
market.
Clarifying Antitrust Guidelines. The Department of Justice
and the Federal Trade Commission announced a unified
antitrust enforcement policy for the more than 1000 mergers
and acquisitions reviewed by these two agencies each year.
--
Where stiff international competition already exists,
the new guidelines will make it easier for American
companies to achieve the economic clout they need to
compete effectively in the global marketplace.
-- A common policy will provide greater certainty about
the standards to be applied in enforcing the antitrust
laws, as well as a more reasoned analysis of the
competitive effects of mergers.
- 6 -
Reducing Barriers to Exports of American Goods. The
Department of Commerce has eased a variety of outdated
export regulations that limited the ability of American
businesses to export goods such as computers and
semiconductors. These actions will eliminate licensing
requirements for 2000 to 3000 transactions annually, thereby
facilitating some $2 to $3 billion of exports.
# # #
- 7 -
Estimated Annual Cost Savings from Actions Announced by
Agencies During the 90-Day Regulatory Reform Initiative
Cost Savings
Agency or Department
($ millions)
Department of Agriculture
79¹
Department of Commerce
2
Commodity Futures Trading Commission
5-8
Department of Defense
10-20
Department of Energy
1-20
Equal Employment Opportunity Commission
3
Environmental Protection Agency
897-3342
Federal Communications Commission
258
Federal Energy Regulatory Commission
2600-5900
Federal Maritime Commission
147
Department of Health and Human Services
1600-2700
Department of Housing and Urban Development
100-170
Department of the Interior
63
Interstate Commerce Commission
851-3301
Department of Labor
1884-3084
Nuclear Regulatory Commission
6
Department of Transportation
121-1200
Department of the Treasury
1554
Total
10,181-21,857+ 2
Best Estimate: $15-20 billion
1 Does not include $330 million of one-time savings.
2 Many of these agencies announced additional initiatives for
which cost savings estimates are not yet available. Although
these measures will reduce costs to consumers and businesses, for
the purposes of this table, they are currently carried at zero.
In addition, a number of agencies, including the Securities and
Exchange Commission, the Federal Deposit Insurance Corporation,
the Federal Reserve Board, Federal Trade Commission, the
Department of Justice, and the Department of Education, announced
initiatives for which cost savings estimates are not available.
5/12/92
SOME EXAMPLES OF THE IMPACTS OF STRINGENT
FEDERAL ENVIRONMENTAL REGULATIONS ON CITIES
Columbus. Ohio: Last year the City of Columbus conducted a study which found that
during the next ten years the cost to the City for complying just with current federal
environmental mandates will rise from S62 million annually to $136 million annually.
The entire City budget for 1991 was $591 million. The City attributed a large portion
of the costs to regulation of perceived" risks based on "conservative" risk assessments
that are not based on sound science.
Contact: Mike Pompili. Assistant Health Commissioner: 614/645-8191
San Diego: EPA is forcing the City to make $1.5 billion worth of improvements in its
water treatment system in order to reduce levels of dissolved oxygen in effluent that
is discharged into deep ocean waters. City officials assert that environmental
benefits would be non-existent or de minimis.
Contact: Roger Fronfeider. Deputy City Manager: 619/236-7223
Anchorage: EPA is requiring the City to remove at least thirty percent of the organic
content of the water it treats. Because the City's water was so clean to begin with,
it had to persuade fish processors to dump fish guts into the water so it could then
remove organic content and meet EPA's requirements. In another example. while
improving a road a City contractor encountered some oil soaked soil. EPA required
the City to remove the soil and dispose of it at a hazardous waste site. This cost the
City roughly $370.000 and wiped out its road budget for the year. and the City
asserts that there was no environmental benefit.
Contact: Paula Easley, Mayor's Office: 907/343-4431
Lewiston, Maine: EPA requirements for drinking water could force the city to spend
$17 million on additional drinking water filtration in order to reduce turbidity and
pollution from waterfowl during one or two weeks of the fall migration period. City
officials feel they would be getting no significant health protection improvement from
the filtration, while they really need to spend the money replacing the City's old,
rusted water pipes.
Contact: Bob Mulready, City Administrator: 207/784-2951
Los Angeles: Despite the regulatory moratorium and review, EPA is attempting to
promulgate a rule that would dictate numeric water quality criteria for toxics in
seventeen States. Los Angeles and numerous other cities and public entities in those
Environmental Rules
Indiana Town Illustrates the Effects
Are a Major Expense
For Small Businesses
Of Proliferating Anti-Pollution Laws
By JOAN E. RIGDON
of laws has allowed many small busi-
Continued From Page B1
Staff Reporter of THE WALL STREET JOURNAL
nesses to become big polluters. The Natu-
outside specialists. Richard Cox Jr., presi-
BLOOMINGTON, Ind. - Paul Myers is
ral Resources Defense Council says it may
dent of Camden Tanning Corp. in Camden,
still shaking his head over "fugitive dust."
be safer to live next door to a chemical
Maine, says the latest puzzles are the rules
He says he recently scrapped plans to set
plant in the country than in towns, where
governing hazardous-waste disposal.
up an asphalt business on the outskirts of
people sleep, eat and work close to chemi-
"Where does it go?" he wonders. "How
Bloomington because an inspector ruled
cal-based businesses such as dry cleaners
much do we send in? We're not engineers,
that his trucks might spew dust from the
and car painters. Small businesses arela
SO we try and do the best we can. You
unpaved land onto adjoining real estate.
"significant contributer" to cancer-caus:
can't fight 'em."
Neighbors invoked a state law defining
ing pollution, says Debbie Sheiman, an air-
Mr. Cox says his company, which
any visible dust that crosses a property
pollution specialist for the council.
tans leather on contract for manufac-
line as air-polluting fugitive dust.
In recent years, environmental regula-
turers, spends about one-third of its fixed
Rather than help pay for new roads,
tions have proliferated at all levels of
overhead on environmental items. "Our
Mr. Myers found another site. Regulators
government. Without these regulations,
biggest problem is the paper work. If they
"listened to a bunch of emotional people
"the environment's going to get SO bad that
require a study, we have to hire somebody.
who didn't know what they were talking
it just won't be worth living in," says
That could be $30,000," he says.
about," he complains.
Bloomington environmental commission
Bo Brasfield, co-owner of B&M Tractor
He isn't alone. A look at Bloomington-
member Kevin Komiscarik.
Parts Inc. in Taylor. Texas, says complex
a town of 90,000, including Indiana Univer-
But developer Earl Cooper derides
new rules on disposing of tires and waste
sity's student body of some 30,000 - shows
some local statutes, such as one requiring
oil are counterproductive. "You have less
how the growth of environmental regula-
property owners to prevent erosion by
liability if you go out in the middle of the
tion can lead to a wide range of problems
placing bales of hay around any soil dug
night and dump it in a ditch. They've cre-
and irritations for business owners.
from the ground. Regulations "really keep
ated a monster." he says.
Changing Times
getting more absurd." he says. For a time,
In the past three years, Mr. Bras-
he ignored an ordinance against burning
field says he has spent about 25% of
Time was, builders in Bloomington
trash but ended his rebellion after being
his working hours, and B&M has spent
burned lumber scraps out in the open,
told the next violation could bring a fine of
$68,000, or about 3% of sales, to comply with
farmers sprayed their crops without pre-
environmental rules. "That doesn't leave
cautions and garbage trucks dumped
up to $10,000.
you just a whole lot," he says.
everything from paint cans to asbestos
Abusing a Loophole
Mr. Anderson's adventure in digging
tiles into landfills.
Some scrap burners find a way around
up his storage tanks reads like an environ-
In towns across the country, a lack
the ordinance by abusing a loophole that
allows for an occasional outdoor flame.
mental soap opera. Like many states,
Michigan has tried to ease the pain of
"Every day but a hot day you're allowed to
days and make an average $1,000 each."
excavation by setting up a trust fund to pay
build a fire to keep your hands warm,"
The state blames its own budget prob-
for all but $10,000 of owners' removal costs.
says developer Rodney Young.
lems. and resulting administrative-staff
The fund. which totaled $41.6 million last
Other business owners think they have
shortages. for much of the delay. "We had
April 30, is financed by a fee on whole-
cause for complaint. David Himm. man-
no idea of the scope of the problem we were
sale sales of gas and oil.
ager of Bloomington's Fell Iron & Metal
dealing with." says Amy Carter. acting
To remain eligible for reimbursement,
scrap yard. says he still has trouble getting
coordinator of Michigan's effort to remove
a tank owner has to follow a strict time-
bank loans because more than a quarter of
the defective tanks.
table, spending money at each step. But
a century ago the previous owners recy-
The state has identified 7.000 prob-
the reimbursement pipeline is clogged.
cled material contaminated with toxic po-
lem tanks; SO far. 2,700 of them are
Mr. Anderson, for instance. says he still
lychloryl biphenyls, or PCBs. Since then.
listed as reimbursable under the 1988 pro-
hasn't seen a penny from the trust fund.
his scrap yard has been cleaned up by the
gram. "We're backed up. and we admit
Among the expenses he says he has
Environmental Protection Agency.
it." Ms. Carter says. "When you have 1,000
incurred since 1990: $500 for registering his
Under federal law, banks can be held
reports on your desk. and it takes a day
tanks with the state: $375 to purchase a
liable for environmental cleanup costs
and a half to read one, you have panic.'
state-required surety bond: $1.100 to test
incurred by their customers. The threat of
And frustration. "I don't know how long
the contents of the tanks before excava-
environmental litigation "scares the living
this saga is going to last," Mr. Anderson
tion: $25,000 to dig up the tanks: $73,000 to
hell out of lenders,' says Richard Haynes.
sighs.
fill the holes; and roughly $12,000 in
president of Bloomington's Workingmens
He has plenty of company. "It's pretty
consulting fees.
Savings Bank. As a result, Mr. Himm says
typical. and he's not done yet,' Ms. Burton
he has had to use his home as collateral for
State law stipulates reimbursment for
says. Indeed he isn't. True, the five tanks
business loans and ask his family for
approved expenses within 90 days. But
are gone from his property, cut up and sold
Sarah Burton, the private consultant su-
financial help.
for scrap metal. And the oily dirt has been
Unable to sell or expand his business.
pervising Dreisbach Buick's tank-removal
removed to a landfill.
Mr. Himm is bitter. "Fifteen years from
project, says payment typically takes
But now comes Phase II. Mr. An-
now. they could say iron filings have
"nine months to a year. easily.' Mean-
derson's consultant says the state will
while, she adds, "You have to keep forking
contaminated the ground." he says. If that
undoubtedly order the car dealer to sink
happens. he wonders. "am I going to lose
out money to stay eligible."
from four to 10 shallow wells around the
my home?"
Dreisbach Buick isn't on the ropes. Mr.
perimeter of the old tank storage area to
Anderson says business has "dramatically
establish if oily water remains in the soil
improved" from last year. But he is angry
and. if SO. to see how far it has seeped.
over a program that requires him to spend
This means hiring a drill rig. mon-
Spanish Inflation Rate Rises
large sums with no apparent payoff to his
itoring the well and, perhaps. captur-
MADRID-Spain's underlying inflation
company or to the public. "It's terribly
ing the water and removing the pollu-
rate. a measure of consumer prices, ex-
inefficient. and it's a criminal use of capi-
tants. "A nice Phase II investigation
cluding food and energy. rose 0.3% in May
tal.' he says. "I could take that money and
with a report." Ms. Burton says. "We're
from April. the National Statistics In-
buy 10 used cars and turn those cars in 60
talking $25.000
stitute said.
OMB's Logic: Less Protection Saves Lives
and the United Auto Workers
"I'm not on my own. I do what I'm
union. He cited research asserting
told to do," MacRae said. He said the
POST
that every $7.5 million in additional
analysis requested in his letter to the
Letter Blocking Health Standards for 6 Million Workers Shocks Officials at Labor Dept.
regulatory expenditures may result
Labor Department was "certainly
MARCH 17, 1992
in an additional death from lowered
something that's worthy of all [re-
The letter has caused an uproar
worker income. Because the pro-
gulatory] agencies to take note of."
By Frank Swoboda
in the Labor Department, where
moratorium on new federal regu-
letter, it should publish a proposal in
posed OSHA regulations would add
MacRae said that if OSHA was so
Washington Post Staff Writer
officials warn it could have an im-
lations. It also coincides with an
the Federal Register and let all the
an estimated $163 million in annual
concerned about further delay, it
The Office of Management and
pact on all federal regulatory agen-
announcement by President Bush
regulatory agencies comment on it.
employer costs, MacRae argued in
would have completed standards for
Budget has blocked new health
cies. "If this is the new approach
during a campaign trip to Detroit
James B. MacRae Jr., acting ad-
his letter, the new rules could re-
the three industries years ago, short-
standards for more than 6 million
OMB is going to take, it's not going
last week that the auto industry
ministrator of OMB's Office of Infor-
sult in an additional 22 deaths. Be-
ly after the general industry stan-
to just affect OSHA," a Labor De-
would not have to build cars that
mation and Regulatory Affairs,
cause OSHA estimates the new reg-
dards became final. "As far as I'm
workers in the construction, mar-
itime and agricultural industries on
partment source said.
would keep gasoline fumes from
wrote: "The positive effect of wealth
ulations would save 8 to 13 lives a
concerned, it is a valid consideration
the theory that less protection may
OMB officials said yesterday the
escaping during refueling.
on health has been established both
year, MacRae reasoned, there
and we're awaiting a reply from the
save more lives than adding regu-
letter represents OMB policy and
A senior department official said
theoretically and empirically. Richer
would be a net increase of 8 to 14
Department of Labor," MacRae said.
latory costs to employers.
would apply to all federal regulatory
OMB has put Labor Secretary Lynn
workers on average buy more leisure
deaths a year.
The novel theory, outlined in a
agencies.
Martin in an "incredibly awkward
time, more nutritious food, more
MacRae's letter came as a com-
letter from OMB to the Labor De-
Peg Seminario, director of health
position." Any showdown with OMB
preventive health care and smoke
plete surprise to top managers at the
partment last week, argues that
and safety for the AFL-CIO, called
is apt to be a major, public test of
and drink less than poorer workers.
Labor Department. "It came totally
the OMB position "really looney."
how much clout Martin has with
"Government regulations often
added regulatory costs could force
out of the blue," a senior official said.
She said the "analysis they' ask-
Bush. Martin, a 10-year veteran of
have significant impact on the in-
an employer to either lower wages
Other department sources used
ing for sort of comes out of thin air
Congress, often has traded on her
come and wealth of workers. To the
words such as "bizarre" and "ridic-
or cut employment. If this happens,
and is not required by law. This
close ties to the president in dealing
extent that firms cannot pass on
ulous" to describe the MacRae let-
OMB asserts, it could have a nega-
goes well beyond anything required
with department issues. "This is
regulatory compliance cost in-
tive impact on workers' health be-
ter. "I've never seen anything like it
and it would be impossible to do."
going to be hot," a department
creases to consumers, firms will
cause, it says, higher-paid workers
from OMB," said a source. "The
The OMB directive comes as the
source said.
absorb these costs by cutting wages
tend to take better care of them-
majority of the people who looked
White House has declared a 90-day
OMB last Friday refused a formal
and by reducing employment."
selves and if they can no longer af-
at it in the department were abso-
department request to withdraw the
Therefore, MacRae wrote, "OSHA
ford to do so, more may be killed
lutely shocked."
than saved.
letter: Yesterday, under Martin's
should estimate whether the possible
What worries policymakers at the
direction, the department was draft-
effect of compliance costs on work-
At issue are standards proposed
Labor Department is the fact that
ing a reply to OMB. It questions
ers' health will outweigh the health
by the Labor Department's Occu-
MacRae, a career civil servant who
OMB's legal authority to force
improvements that may result from
pational Safety and Health Admin-
has been acting head of his division
OSHA to weigh safety benefits
decreased exposure to the regulated
istration to set permissible expo-
for nearly four years, has the last say
against economic risks for federal
substances." He said he was sending
sure limits (PELs) for more than
on most federal regulations. "He is
health standards. The Supreme
the proposed draft regulations back
1,000 substances used in the three
essentially the final word," said a de-
Court ruled in 1981 in a case involv-
to the Labor Department for further
industries. The standards, which
partment source. Department offi-
ing cotton dust standards that cost-
analysis "to compare the health ef-
cials said that under normal circum-
were approved nearly four years
benefit analysis was illegal in deter-
fects of these income changes to the
ago for all other industries, are de-
stances, negotiations between OSHA
mining health standards.
health benefits that OSHA attributes
and OMB are conducted at a lower
signed to protect workers from ex-
The draft, being circulated in the
to reduced exposure."
cessive exposure to hazardous sub-
staff level, with MacRae hearing any
department, also suggests that if
In requesting the analysis,
stances in the workplace.
appeals when there is disagreement.
OMB wants to create a new policy
MacRae cited a recent federal ap-
OMB said it would not consider,
This time, a department source said,
such as the one outlined in the OSHA
peals court case involving OSHA
the proposed regulations until the
"there were no phone calls from the
department completes an analysis
OMB staff and suddenly there's a
showing whether the new rules
letter. There's no indication why
would have an adverse effect on
anything like this happened."
wages and employment levels in the
In an interview yesterday,
affected industries. Departmental
MacRae said "the letter stands by
sources predict such a study could
itself" and represents OMB policy.
take several years and still would be
inconclusive.
REMARKS BY DAVID MCINTOSH
EXECUTIVE DIRECTOR,
PRESIDENT'S COUNCIL ON COMPETITIVENESS
TO THE FORT WAYNE CHAMBER OF COMMERCE
JULY 22, 1992
Good afternoon. First, I'd like to thank the Chamber of
Commerce on behalf of Vice President Quayle and the Council on
Competitiveness for inviting me back to Indiana. It is my
privilege to share with you what's on the agenda for the
President's Council on Competitiveness.
It's good to be here in Indiana for two reasons. First of
all, it's great to be in the Midwest. I grew up in a small town
just 30 minutes North of here, Kendallville. So I appreciate the
value of being raised a Hoosier. As the Vice President puts it,
the people are nicer, they work harder, and there's nothing
better than true, midwestern family values.
In Indiana, we are particularly fortunate to have strong
political leadership. Our Senators, Richard Lugar and Dan Coats
have made a commitment to the people of Indiana to protect and
promote family values. They are working to get our economy
growing again -- without putting a burden of new taxes on the
working men and women of the Hoosier State. Senator Dan Coats
has been a strong supporter of the Vice President's efforts to
rid our legal system of excessive legislation. He has co-
sponsored our reform legislation and supports product liability
reform and medical malpractice reform. Let me say this,
Indiana's Senators have been an enormous help to President Bush
and Vice President Quayle.
The second reason that I'm glad to be here, is quite
frankly, that I'm not in Washington.
There has been a lot of criticism leveled at Washington
politicians lately. The American people no longer think that
unelected Washington bureaucrats know what is best for the
nation. Let me tell you -- the American people are right.
Across the country we have seen a resurgence of the "throw
the bums out" attitude. It has been growing steadily in reaction
to, among other things, run away budget deficits, congressional
check bouncing, wasteful spending, unauthorized "perks", and the
inability to pass meaningful reform legislation.
President Bush has taken decisive steps to fundamentally
reform the way things are done in Washington.
He has submitted legislation to end special privileges for
Congress. It is time that civil rights laws that protect
against age, race, sex and disability discrimination apply
to Congress just like the rest of the country.
He has proposed limiting the terms of Members of Congress to
12 years. He has submitted a growth package that would
reduce capital gains and other taxes and stimulate economic
growth in our country once again. He supports a balanced
budget amendment.
And, he has implemented a moratorium on new regulations
since his State of the Union Address in January. He
directed the Council on Competitiveness to continue efforts
he initiated in the Reagan Administration as Chairman of the
Task Force on Regulatory Review to reform the regulatory
process and remove excessive red tape and burdensome
regulation.
Two Views for the Future
Today, America stands at a threshold that will determine the
course our country is to take into the next century. Americans
will choose between two competing views of how our society should
be organized.
On the one hand, President Bush and Vice President Quayle
have strongly articulated the belief in a free market system--a
system that promotes individual liberty and freedom for all, that
provides economic opportunity and the promise of well-being for
everyone who is willing to work and try to succeed, and an
economy where competition brings out the best in all of us. This
competition will continue to spur America on to be the best
country in all the world.
On the other hand, we see the shopworn ideas of central
planning and social engineering being repackaged as a new
covenant founded on big government. The purveyors of this false
covenant promise something to everyone, but fail to mention that
the American people will be left to pay the tab. This Trojan
Horse is meant to disguise the outdated ideas of environmental
extremists, self-appointed consumer advocates, and liberal
special interest groups and their allies who man the
bureaucracies back in Washington.
But, Trojan Horse or not, these conflicting world views are
not new. They were explained by Churchill in his last speech on
the hustings:
"Among our socialist friends there is great
confusion about private enterprise. Some see it as a
predatory tiger to be shot. Others see a COW to be
2
milked. Only a handful see it for what it really is--
the strong and willing horse that pulls the whole cart
along."
These two world views can best be distinguished by their basic
premises. The Council on Competitiveness uses four fundamental
principles in implementing our assignment from Vice President
Quayle.
First, a free market and a competitive economy are the best
allies of the American people. Our economy is what made America
a world leader, and it is a strong economy that will keep America
at the forefront of a rapidly changing global market. Second,
there are some times when free markets do not work completely.
Individuals can impose costs upon their neighbors such as the
pollution that may be sent into the air on one man's property and
land onto his neighbor's. In these cases, it may be appropriate
for the government to take action to prevent this harm.
However, a third principle is mindful of the fact that, in
most cases, government regulation is costly and unnecessary. The
less regulation, the less government intrusion into people's
lives, the better.
Fourth, the protection of private property is absolutely
critical to the success of the free-market system. The principle
of private property is one of the fundamental American values
that is essential to our free market, capitalist system. Today
Eastern Europe and Russia are throwing off their communist
systems and adopting notions of private property and free
markets. It is ironic that here is the United States we have
seen an ever accelerating trend toward taking away private
property rights by federal regulation.
The Constitution protects private property rights and says
that landowners must be paid just compensation when the
government takes their property. It used to be a landowner knew
when the government was doing that, because it parked tanks on
the land or took and built a runway for an airport. When the
government did this, they paid the fair value of the land.
Today, government regulations are not quite so obvious.
Regulators come in and say, "You can't use your land for this,
you can't use your land for that, " or in some cases, "You can't
use your land at all, but it's still yours, so we don't have to
pay you the money. Well, if you can't use your property, it's
as bad as having tanks parked on it or a runway built over it.
Now the Supreme Court in Lucas and other decisions has recognized
that the landowner does indeed have a constitutional right to
compensation for regulatory takings. Perhaps Wayne Shotey, a
farmer from Syracuse, Indiana described the problem best when he
asked,
3
"If government can control any of our lands that are
privately owned, what keeps them from controlling all?
What happens to private property rights?"
Let us contrast these four principles with the fundamental
principles of the opponents of the Council on Competitiveness.
Probably the best source for these principles can be found in a
recent book published by Senator Al Gore entitled Earth in the
Balance: Ecology and the Human Spirit.
The guiding principles of those who oppose the Council on
Competitiveness stand in direct contrast to the principles we
follow.
First, they unabashedly stand for central government
planning as opposed to the use of market forces. Free markets
stand as a threat to the central planners because they cannot
control them. America needs to fully implement command-and-
control, top-down decision-making. Government regulation is the
preferred option, not the alternative of last resort. And there
is no place for property rights.
History has provided us with a clear lesson of the failures
of the command and control policies in the former Soviet Union
and Eastern Europe. Indeed, history has shown that these
countries are not only the worst economic systems in the world,
but also have inflicted the most harm to their environment of any
countries on the Earth. It is obvious to all of us that the
great experiment in communism has failed miserably. The great
experiment in central planning and international bureaucracy has
failed miserably. It is no wonder, then, that the proponents of
these ideas are now forced to use a Trojan Horse of promised
moderation in order to have any hope of foisting them upon the
American people.
Second, they call, both explicitly and implicitly, for the
abdication of democratic lawmaking in favor of multinational
treaties. They prefer global bureaucracies, which have no checks
and balances, and are not accountable to the people. To them, the
"Europeanization" of our society is necessary so that all
nations follow the same rules and standards. (And these rules
are designed to rig the system so that America pays most of the
bill-- as much as $100 billion, and is placed at a competitive
disadvantage.) Only unelected bureaucrats are capable of
understanding the problem, and hence able to devise solutions.
Third, they believe that the United States must abandon
rational, science-based, decision-making in the promulgation of
environmental regulation. Disaster is too imminent to employ
benefit-cost analysis. We must sacrifice our very livelihoods to
combat even speculative problems. The costs of regulation must
4
be high to punish us for our past greed.
Fourth, they blame America first -- the American people are
the problem. Let me quote to you from one of the most surprising
passages of Al Gore's book:
"Again we must not forget the lessons of World War II. The
Resistance slowed the advance of fascism and scored
important victories, but fascism continued its relentless
march to domination until the rest of the world finally
awoke and made the defeat of fascism its central organizing
principle from 1941 through 1945. But too many ignored the
early warnings
The world is once again at a critical juncture. A
relentless advance is again claiming victims throughout the
world, and again courageous men and women are standing in
the path of destruction and calling upon the rest of the
world to help stop the invasions. But this time we are
invading ourselves and attacking the ecological system of
which we are a part. "
They have met the enemy -- and it's the American worker who toils
in a steel mill, the American farmer, and the American small
businessman.
The differences that these two approaches will have on the
average American's life can be seen in the key reforms for which
President Bush has turned to the Council on Competitiveness,
chaired by Vice President Quayle, to implement.
Civil Justice Reform
First, we need to reform our civil justice system. As Vice
President Quayle asked the American Bar Association, "Does
America really need 70% of the worlds lawyers?" Often the
lawyers earn 50% or more of the amount paid out in lawsuits. We
have proposed over 50 reforms to eliminate incentives for lawyers
to file frivolous and excessive lawsuits.
Our reforms will:
Free up people from the heavy load of excessive
litigation. It stops innovation, shuts down community
projects, and ultimately costs consumers.
Speed up justice for legitimate claims, by unclogging
courts of abusive lawsuits.
End the abuse of junk science.
5
Regulatory Relief
The second major reform the President has tasked the Council
on Competitiveness with is stopping excessive regulations.
The burden of excessive Federal regulations on American
citizens is enormous. One study shows they cost us $400 billion
per year -- that's $4,300 per household each year.
Often times, we see regulations that are just plain stupid.
They are counterproductive, they don't work, they impose needless
headaches and costs on the little guy out there in the real
world. And when we see these stupid regulations, we go back to
the bureaucrats in Washington and ask them -- "WHY?"
Let me share with you a few choice examples of some of the
stupid regulations we see.
Flooding Balcony rule. We call one of them the "flooding
balcony" regulation. Anybody who has been involved in
construction of apartment buildings knows that when you build a
balcony so that the tenants can go out and enjoy the fresh air,
you put it about an inch or two lower than the doorway. One of
the well-meaning laws we have in Washington is to ensure that the
handicapped can have access to buildings.
As the regulators were drawing up the regulations to enforce
this act, they realized that someone in a wheelchair would have
difficulty getting out onto the balcony. They decided to require
that the balconies be raised level with the doorways. This seems
like a good idea. But, when we showed it to people who know
about building apartments, they came back to us and said, "You
really don't want to do this. The first day it rains,
everybody's living room will be flooded." So we went back and
told the regulators and said, "This is one we don't need.'
The Dangers of Showering. Another one of my favorites is an
EPA draft study that came across my desk the other day about the
inherent dangers of taking showers. It turns out that, because
we put chlorine in our water to make it safe, minute amounts of
this substance are released when you take a shower. Now before
anyone did a reality check, this discovery sent off alarm bells
that showers may be hazardous to your health. But fortunately
when we looked into it further, we found out it was safe to
shower after all.
EPA V. the Tooth Fairy. Not long ago the Environmental
Protection Agency declared that extracted baby teeth were
considered "hazardous waste" and therefore couldn't be returned
by dentists. So much for the Tooth Fairy. They have changed
this -- now kids can take home healthy teeth to put under their
beds at night.
6
CAFE. One of the most frustrating examples of stupid
regulations are fuel efficiency standards. In the name of a good
cause--saving energy and more fuel efficient cars -- Congress has
created something called the "Corporate Average Fuel Efficiency"
the CAFE standard -- not a new fast food chain.
The consumer doesn't really benefit, because the net effect
of this regulation is that consumers are forced to drive smaller
cars. Studies have shown that these smaller cars lead to more
traffic fatalities and more injuries on our highways. In Indiana
alone, this legislation will lead to 22-24 more highway
fatalities annually. The Competitiveness Council has lead the
charge against efforts by Senator Gore and his cohorts on Capital
Hill to make these CAFE regulations even higher. So here we have
another example where someone back in Washington thinks he knows
what's best for the American family when it comes to buying a
car.
Who pays for these regulatory excesses?
American workers, farmers, consumers, small business and,
ultimately, the taxpayers pay for these excesses.
O.
The American workers pay, when they lose their jobs
because regulations force factories to shut down or
move overseas.
For example, another problem with the CAFE rules is the
effect that these standards have on U.S. auto companies. They
put Ford, G.M., and Chrysler at a disadvantage vis a vis their
foreign competitors. of course, this means that American workers
here in Indiana, lose their jobs. In fact, because of one
provision in this regulation, U.S. companies are encouraged to
buy foreign auto parts in order to avoid the regulatory burden.
I know from personal experience just how important the auto
parts industry is to economic growth in communities like your
own. When I was a young man, working my way through college, I
had a summer job at the Kendallville Foundry. We stoked the
cupola, poured the cast iron, and produced the castings that
eventually became parts for automobiles manufactured in Detroit.
For me, this was a summer job to help pay for college. But for
many of my colleagues, the men who worked in that foundry, this
job was their livelihood. It allowed them to put bread on the
table for their families; buy clothing for their children; and,
if they worked hard and saved, perhaps one day help pay for their
children to go to college as well. The thought that these jobs
would be sent overseas because of federal regulation dreamed up
by some uncaring bureaucrat in Washington is unconscionable.
What do the proponents of central planning say about CAFE
7
regulation? Al Gore, states unequivocally:
"The government must establish higher mileage requirements
for all cars and trucks sold in the United States."
He is co-sponsor of the bill to raise the current average from
27.5 mpg to over 40 mpg even though one government study shows
that increasing the standard just one mile per gallon would cost
100,000 automobile jobs. To him, the blind pursuit of higher
CAFE goals is far more important than the jobs of the workers in
foundries like the one at which I worked in Kendallville.
Farmers pay when their land is effectively taken out of
use through excessive regulations.
Under the Vice President's leadership, the Council is
examining proposed changes in the wetlands delineation manual.
Last summer we developed a consensus recommendation, which helped
put the "wet" back in the wetlands. The Council's consensus
proposal struck an important balance -- reaffirming the
President's goal of "no net loss" of environmentally important
wetlands, while allowing for legitimate land use and ensuring the
protection of constitutional private property rights.
For example, Delbert Graft, a farmer from Avilla, Indiana,
was involved in a three year legal dispute, forced to spend $4000
in legal fees, and was forced to make numerous trips to
Indianapolis and even Washington. Ultimately, his 7.9 acres of
land which were originally worth $15.8 thousand were devalued to
$0.0.
What do the environmental extremists have to say to the
American farmer? Al Gore says, "[T]he productivity of some of
our best land is being steadily damaged by those who have no
qualms about maximizing short-term gains at the expense of long-
term sustainable use." According to Gore, the government knows
better than the individual farmer what is in the public interest.
President Bush and the Council on Competitiveness, on the
other hand, much prefer entrusting the land to the farmer who has
the most incentive to protect the environment on the farm for
himself and for his children in future years. The farmer or the
bureaucrat in Washington?
O
The consumers pay, when they have to pay higher prices
for a product -- or when there are fewer products from
which to choose.
Let me give you an example of one of the Competitiveness
Council's initiatives that will help consumers: improving
8
America's drug approval process. While other modern industrial
countries have agencies similar to the FDA, most of them approve
drugs faster than we do -- and they are doing it without
compromising their standards for safety, efficacy, and quality.
It takes us an average of 9.75 years to develop a new drug--
Europe and Japan can to the same in 5-6 years. That leads
reasonable minds to believe that America can do better, if the
bureaucracy would get out of the way and allow doctors to give
safe and effective drugs to patents.
We estimate that we will save millions of lives, and
billions of dollars, if we adopt 11 specific reforms that Vice
President Quayle announced last fall to speed up this process.
Already a new treatment for AIDS has been approved under this
system of accelerated approval. These reforms will speed up new
advances to combat cancer, alzheimer, cystic fibrosis, and many
other life threatening diseases.
What do the social engineers have to say on this subject? I
am sure they want to speed up lifesaving therapies. However,
when faced with the trade off between developing therapies that
save peoples' lives or not cutting down trees, it's not so clear.
A recent example is the drug taxol that is derived from the bark
of the yew tree. Al Gore questions whether it would be
appropriate to cut down these trees, even if it is the only way
to make a supply of this drug. To him, the trade-off of three
trees for a human life is an ambiguous one. To President Bush
and Vice President Quayle, it is clear that when it comes to
approving safe, effective drugs to treat cancer, AIDS and other
life-threatening diseases, if we can do better, we must do
better.
O
Small businesses pay, when they are forced to shut down
or locate overseas by excessive compliances costs to
regulations, and endless redtape.
This last year, the Council reviewed new regulations
implementing the Clean Air Act. One of these regulations
established a broad new requirement that businesses obtain
permits from state and local authorities and the EPA in
Washington. Many of you may have read about this in the
newspaper, especially since so many in the environmental movement
were claiming that we were creating a loophole in the Clean Air
Act.
Well, as Paul Harvey says, "let me tell you the rest of the
story. " The regulation that the Council reviewed doesn't allow
one additional pound of pollution to be emitted into the air
beyond what Congress provided in the Clean Air Act. Rather, it
eliminates unnecessary paperwork and excessive litigation by
streamlining the requirements for businesses to obtain permits.
9
Perhaps more importantly, it exempts many of the small businesses
-- such as dry cleaners, printers, small machine shops and others
who only had de minimis levels of emissions. They will be spared
the huge paperwork requirements and a permitting process that
could have held them up for 18 months at a time.
During the review of the permitting regulations, the Vice
President received a letter from a Senator on behalf of Intel
Corporation, one of the few remaining American computer chip
manufacturers. Intel expressed concern that, if the original
plan for this permitting regulation went into effect and greater
flexibility were not built into the regulation, they would not be
able to afford to build a new computer chip plant here in
America. This new plant would be one of the cleanest
manufacturing facilities of all time. (It has to be, since any
minute dust or other particulate would disrupt the delicate
manufacturing of this new generation of computer chips.)
Yet excessive regulation threatened to force the company to
move this new facility overseas to compete in the world market
place. With it would go several thousand American jobs at one of
the most environmentally clean facilities ever to be built. So,
we at the Council on Competitiveness said let the free market
operate. Reduce red tape and excessive regulation, and all
America will benefit the economy and protect the environment.
What do the advocates of central planning say? They would
be suspicious of such market choices and want the government to
choose whether or not these new technologies should be built.
This lengthy process of review and approval by bureaucrats back
in Washington would have ensured that the American company could
not compete in the world marketplace, and therefore, by
necessity, would have to build its manufacturing facility
overseas.
Finally, the taxpayer, pays the bill when local
governments are heavily regulated.
Last May the City of Columbus, Ohio submitted a report that
outlined the costs of compliance with Federal environmental
regulations. Not all Federal regulations, just environmental
regulations. Over the next ten years, the city estimates that
they will cost over $1 billion. That's over $900 per household
in Columbus. And the Columbus experience is not unique. I
venture to say that cities such as Ft. Wayne, Elkhart, and South
Bend will soon be confronted with similar expenses.
That's also $1 billion dollars that could be used to provide
shelter for the homeless or day care services for the poor.
I submit, as does the City's report, that many of those
10
regulations are not necessary. Many of them are not going to
have any real impact on the environment -- but they will have a
definate financial impact on the towns that are forced to pay for
them. With the Federal government asking so much, it is no
wonder that many States that in the past could easily balance
their budgets -- now have to struggle to do SO.
What do the bearers of the Trojan Horse have to offer the
American taxpayer? Once again, a page from Senator Gore's book
sheds light on their true agenda. He advocates that the best
policy in this area is one that imposes huge new carbon taxes on
all Americans. He supports legislation by Henry Waxman that
would place a tax of $100 per metric ton of carbon emissions.
According to a recent study by the CONSAD Research Corp, carbon
taxes of the sort Mr. Gore supports could destroy more than
600,000 American jobs. Another study, conducted by the
Department of Energy, found that such a tax would result in an
increase of 26 cents per gallon of gasoline at the pump.
Clearly something must be done to stem the tide of more
regulations. The President's Council on Competitiveness is here
to help the American people regain their freedom and be more
competitive at home and abroad.
The Moratorium on New Regulations. The Council is also
coordinating the moratorium on new regulation, which President
Bush established in his State of the Union speech. President
Bush called on all the agencies to conduct a thorough review of
their programs. He asked them to eliminate needless, burdensome
regulations and accelerate programs which promote economic
growth.
Let me share with you a few highlights of these deregulatory
initiatives.
Economic Impact of First 90 Days of President Bushes Initiatives.
The Administration estimates that the reforms that it
completed in the first 90 days of the moratorium will ultimately
save American consumers and workers $15 to $20 billion per year.
This translates into a savings of between $225 and $300 per year
for the average family. These actions will also increase the
amount of available credit by approximately $15 billion, making
home ownership more affordable and providing the financing
necessary for further business expansion and job creation. For a
typical family taking out a $100,000 thirty-year loan pm a new
home, for example, these changes could translate into a $180
reduction in annual mortgage payments.
Reducing Costs for Small Businesses. The SEC has taken a
11
number of actions to eliminate barriers to investment in small
businesses. Among many other initiatives, the SEC proposed a
regulation to increase from $500,000 to $1 million the amount
that small businesses can raise through stock offerings without
registering with federal regulators.
The IRS imposes approximately $1 trillion on the private
sector each year in the form of administrative costs. In an
effort to reduce these costs, the IRS "Simplified the Payroll Tax
Deposit System. " Presently, many employers must make payroll tax
deposits as often as twice a week, usually on different days of
the week, and the deposit requirements may change substantially
within the same quarter. These changes will not only reduce
costs, but they will reduce the number of penalties by up to 20%.
These are just a few highlights of the Administration's
activities. As President Bush said when he extended the
Moratorium, "This is just a downpayment on savings to come."
Congressional Efforts to Stop Regulatory Relief
In light of these recent successes, you might think that
Capitol Hill would respond with a near-unanimous outpouring of
support. Think again, the reaction has been just the opposite.
For example, the day the Vice President announced the drug
approval reforms, we got a letter from three senior Committee
Chairman asking us to hold back.
Now there are efforts on the Hill to put a stop to President
Bush's plan to cut back excessive regulation. Despite the fact
that 83% of Americans believe that we have too many unnecessary
and costly regulations, many of our elected representatives want
to handicap the President's regulatory reform efforts in a purely
political move to stir up trouble in an election year.
Democrats on the Hill have proposed legislation that would
zero out $86,000 in funding for the Council. How ironic -- the
one place Congress wants to cut spending is for the entity
within the White House that the President has given the
assignment to cut back excessive regulatory burdens.
Such a bill is clearly unconstitutional. The President and
the Vice President are the only elected officials in Washington
who represent the entire American People. It is their duty to
review regulations to make sure they are in the public interest.
Even more ironic is the fact that many members of Congress
have written to the Vice President on behalf of their
constituents complaining about excessive regulations. These
Congressmen and women claim to be pro-worker, pro-business, and
pro-consumer when they go home to their districts. Then they
turn around and vote against the Council on Competitiveness --
12
the chief advocate against bureaucracy and redtape -- when they
get back to Washington.
I am sometimes asked how much of a difference can the
Council make Let me relate something that happened to me not
long ago, which made me conclude that our efforts are worth it.
When the Council was considering what to do to speed up the
drug approval process, we heard from patient groups representing
the victims of cancer and other diseases. One young lady, named
Susan Tomlinson, represented the Cystic Fibrosis Foundation. She
came in and told us about the need to speed up new therapies to
treat this life-threatening disease. She said that if we could
only speed up the government approval process, therapies that
were in the pipeline could offer hope for tens of thousands of
Americans who suffer from cystic fibrosis. Then she explained
that the average age to which a victim of cystic fibrosis can
expect to live is 28 years. She herself was 28 years old. She
has cystic fibrosis.
You could have heard a pin drop in the meeting with the
Council on Competitiveness. Here was a brave, young woman
telling the Vice President of the United States and many members
of the President's Cabinet that some of the reforms they were
considering were the only hope that she, and others like her,
have.
A few months ago, I ran into this young lady and asked her
how she was doing. She smiled at me and said things were just
great. Since the Council meeting, she has been able to take a
new treatment that helps clear away the mucous from her lungs and
literally offers her a new breath of life. She is on her way to
completing law school and expects many years of normal, happy
life.
It is events such as this that make every minute of my job
worthwhile. And Suzanne is just one example of the people who
are affected by the Council on Competitiveness effort.
Let me say to the people in Indiana -- the workers, the
farmers, the consumers, the small businessmen -- who are looking
to the Competitiveness Council to stand up and say, "stop!" to
the federal regulators. We will fight on. President Bush and
Vice President Quayle have only begun the war on excessive,
burdensome, and bureaucratic federal regulations. We will stand
up to those in Congress who want to protect special interests.
We will stand up against those who want to pile more and more
regulations onto the back of American workers and American
consumers. And to quote President Bush, we will draw a line in
the sand and say, "This will not stand.
Thank you and God Bless you.
13
This draft forwarded to President.
(Provost/Ferguson/Grossman)
July 23, 1992
MICHIGAN
Draft Two
PRESIDENTIAL REMARKS: HOLLAND AMERICAN WAFER CO.
WYOMING, MICHIGAN
JULY 27, 1992
12:00 PM
Thank you and good afternoon everyone.
(Acknowledgments)
Americans may not realize it when they reach for cereal on
the shelves, but our food industry provides more food for less
than any other nation.
This company is one reason we are the world's leader. So
I'm pleased to announce that Stu and John Vander Heide have
recruited me for a national crusade. Starting today
I will
not only argue passionately that broccoli's benefits are
overblown
but that sugar wafers should be one of the four
essential ingredients in a healthy diet.//
This factory is a symbol of change
...
changes that have
occurred around the world.
I'm told that your company was the originator of something
called: "The Survival Biscuit." It was one of the tokens of the
Cold War -- a bit of nourishment to fill your stomach as you
huddled somewhere in a bomb shelter, in case the unthinkable
became tragically real.
While it may not be great for survival biscuit sales, the
Cold War is, thankfully, over. Survival biscuits have gone the
way of the doomsday clock, "Failsafe" movies, bomb shelters, and
"duck and cover drills." Today, America is safer than before.
2
Safer than we were a decade ago. Safer than we were a year ago.
Safer than we were just a few weeks ago, when I sat down with
Boris Yeltsin and agreed to eliminate some of the world's most
dangerous nuclear weapons.
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
economy. How to make our families more like the Waltons, and
less like the Simpsons. And how to take back our streets from
the crack dealers and the criminals.
This election year, we are told, is about how we can change
to meet these challenges. But this election is not just about
change, because change has a flip side. It's called trust. When
you get down to it, this election will be like every other. When
you go into that voting booth and pull the curtain behind you:
"trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or the invasion of an ally halfway around
the world. The American people need to know that the man who
answers that phone has the experience, the seasoning, to do the
right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is more even
3
than that. I'm a Texan -- raised my children there, built my
business there. I see America as an endless tapestry of people,
families and communities. Our heartbeat can be felt in places
like Wyoming, Michigan
not Washington, D.C. And so I believe
in a simple philosophy: to lead a great nation you must first
trust the people you lead.
If you look at almost every important issue we face
you
see a clear choice -- a choice between those who put their faith
in average Americans --- and those who put their faith in
government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is --- "who
will care for the kids while we're working?" A few years ago,
Washington wanted to help, but their idea was to rock the cradle
with the heavy hand of bureaucracy. All the plans boiled down to
creating some new kind of government apparatus, like a Pentagon
for child care.
I fought for a different approach
and won. Our landmark
legislation allows parents -- not the government -- to decide
whether your children are cared for in school, a relative's home,
or church.
When it comes to raising children, I say: why not trust the
people?
What about our education system? To renew America we must
renew our schools, we all know this, but money alone won't do it.
4
We already spend more money per student than almost any other
country; and our kids still rank near the bottom in crucial
subjects like math and science. Again: a lot of ideas floating
around, most of them to pump more tax money into the same system.
I say try something different. Open up schools to
competition, and trust you to decide whether you want your kids
to learn in a public school, a private school or religious
school.
When it comes to education, again I say: "why not trust the
people?"
One other example: health care. We have the finest quality
health care in the world -- but costs are through the roof.
Thirty-four million Americans, a population larger than the state
of California, are without coverage today, and millions more are
worried about losing the coverage they have.
We have to change the system. Some propose versions of
socialized medicine -- letting the federal government play
doctor.
I say, take a different way, and I've put forth a plan to
bring health costs down. It will give tax credits so people
without coverage can buy it, and incentives so that small
businesses can pool their resources and cover more of their
employees.//
When it comes to deciding, What doctor? What hospital? I
say: why not trust the people?
5
What about government regulation? Sure, some of it is
necessary, even essential. But if you believe that there is a
government solution to every problem, an alphabet agency for
every issue, than you look at regulation not as a necessary evil,
but as a necessary way to reign in people's evil tendencies. The
results can be crazy, as this story proves.
The time had come recently for a government agency to update
its rules on hard hats. That's right: hard hats. And someone in
that agency stumbled upon a potential national crisis workers
being infected from hard hats. The alarms went off. The
bureaucratic blood boiled. One small fact was overlooked. There
wasn't a single documented case, anywhere in the United States,
of anyone getting infected wearing someone else's hard hat.
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
disinfected before one worker passed it to another. Estimated
cost to business: $13 million a year. Measurable benefit:
slightly less than zero.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
the books, and said: we think America can survive, without hard
hat regulation.
But can you imagine what might have happened, if these
enterprising regulators had made their way into the vast,
unregulated territory of lunch pails and thermos bottles?//
6
Some believe the solution to our problems is more government
regulation. I take a different view. I've put a moratorium on
new federal regulations, to give businesses like this one room to
breathe, and grow and create jobs.
In child care, education, health care and regulation, it's a
matter of trust --- trusting Americans to make their own choices.
And when it comes to the most pressing issue of this
election year -- revving up our economy -- forgetting this idea
is not just a nuisance; it can be downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete
now that everyone is playing our
game? I know we can. Despite all the criticism you've heard
lately, keep in mind a few facts. We are the largest economy in
the world. Inflation, the Willie Sutton who robs the middle
class of dreams, has been put safely behind bars. The last time
interest rates stayed this low, the Brady Bunch hadn't even
started re-runs yet. Despite all the stories about our problems,
our workers are still the most productive in the world -- more
productive than the English, the Germans, the Japanese.
But while our economy is growing, it must grow faster. The
question is: how do we do it? The other side suggests a simple
two-part solution. First, jack up government spending! And
then: raise taxes!
7
Now as you evaluate their idea, keep this in mind. Here in
Michigan, whether you like it or not, you already work 128 days
just to pay your taxes -- before you earn a single dime to spend
on your family. I don't think I have to ask -- does anyone want
to go for 129?//
All this talk of spending and taxes causes me to wonder
if the other side is a little hard of hearing. Abraham Lincoln
spoke of government "of the people, by the people, for the
people." But they seem to keep saying
...
of the government, by
the government, and for the government.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense, comprehensive plan to get
this economy moving faster, now
The first sound of a strong economy is usually the sound of
hammers pounding away at new homesites. So I proposed tax
incentives to build new homes, and a $5,000 break for families
who want to buy their first one. Here in Michigan, that would
have equalled nine months of mortgage payments on the average
house.
I understand that private enterprise is the horse that pulls
our wagon -- no government program ever created a real job,
((although government did keep Johnny Carson in business for 30
years) ) So I proposed incentives for businesses to grow and
hire. It's estimated the incentives would have spurred the
creation of at least half a million jobs
...
if they had been
approved when I proposed them.
8
But they weren't approved. Instead, Congress sent back
what you might call an "anti-trust" program. New government
spending, and new taxes.
So I sent their plan back. I told them to try again. And
I'm still waiting. But I need your help. Write Congress, tell
them you want to get this economy moving again. Tell them you
don't want to get the impression, that the only way to get rid of
the deadlock in Washington, is by cleaning out a little deadwood
in Congress. //
You see
it all comes down to a question of trust. I
trust you to spend and save your money more wisely than any
budget planner in Washington.
This is common sense, and I agree. But there's a certain
type of person attracted to government for whom the word "trust"
has a strange meaning. Most of them have spent their lives in
government, and don't have much experience in the real world.
They say they want to
"put people first." But if you
look closely at what they're advocating
the people they put
first are all on a government payroll.
A leader of a free people must understand that government
can not only help, it can hinder. He must have the confidence to
say: "I trust you. I trust the people. //
And ultimately, you must decide who you trust -- who has
the experience -- the ideals and ideas -- to find that delicate
balance.
9
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
from Harvard, or a gaggle of social scientists from a Washington
think tank.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you, and God bless the United States
of America.
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