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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Backup Files Subseries: Chron File, 1989-1993 OA/ID Number: 13831 Folder ID Number: 13831-006 Folder Title: Agenda for American Renewal--Detroit Economic Club 9/10/92 [OA 7580] [4] Stack: Row: Section: Shelf: Position: G 26 22 7 7 THE WASHINGTON POST George F. Will And the Changing Electorate Trollope's political novels-have been called strong government are decreasingly plausible. ideal reading for a lazy Labor Day weekend Furthermore, long recessions and slow because if a breeze blows over a few pages growth increase individual anxiety and de- while you nap, never mind, plunge back in. crease social solidarity, thereby weakening The narrative moves at such a measured pace society's support for collective actions. that nothing much will have been missed. This On the other hand, aspects of both econom- presidential campaign may now be like that. ic vigor and its absence can help Democrats. lies Its themes are clear. The boom of the 1980s was unsettling to ou- A Democrat more liberal than he wants to many people. While the U.S. economy added it. seem, and a Republican less conservative than 19 million net new jobs, Fortune 500 corpora- so he wants to seem, are leading parties whose tions shrank by 4 million jobs and from 58 differences have narrowed and whose ranges percent of industrial output to 42 percent. age of politically possible policies are narrow. Rapid change generates stress, and thus gen- ude Liberalism developed when liberty was erates supporters for a liberal party that lost threatened by the forces of order-state or equates any social distress with "victimization" ave church. Today people feel more threatened by and a failure of government to enforce "fair- disorder. Modern American liberalism devel- ness." oped to redress a perceived imbalance be- The Bush recession was especially>unset- not tween anemic government and the surging tling, for three reasons. First, it came after power of entities and forces in industrial that the long-92-month-Reagan expansion, on which had convinced people that business um- why The Aspects of both flied economic vigor and its be ew. absence can help ews SS. Democrats." gin- me- cycles are products of government mistakes egin BUST that government should know how to avoid. Second, Bush's recession came at the end of a lish, low-saving decade, when people felt particu- Is- larly vulnerable. Third, it came when the eath white-collar component of the work force was larger than ever. The recession involved much eigh pruning of middle-management jobs, so articu- ead- late and assertive components of the elector- that ate (including journalists) were anxious. cam- 80 The weakening of social solidarity, the ero- rger sion of confidence in government and the of a 84 increase in anxiety have made the issue of taxation paramount. During the Second World too War an Irving Berlin lyric was: 88 not You see those bombers in the sky? the Rockefeller helped to build them. So did I. In war, Americans were shoulder-to-shoul- BY MARLETTE FOR NEW YORK NEWSDAY der. Today they are throwing elbows, espe- cially about taxation. society. Now that (since last October) govern- The issue of taxation arose among English- ment jobs outnumber manufacturing jobs in speaking (sort of) people 1,000 years ago America, an insufficiency of government is not under King Ethelred the Unready, in connec- seen as the problem. tion with the Danegeld, an annual tax for the The Democratic Party's change of mind- defense of the realm-actually, to pay tribute its movement toward the center-reflects to the marauding Danes. Today George the recognition that it cannot win the presidency Implausible is promising a tax cut that Con- by changing the composition of the electorate. gress will not deliver, to be balanced by light- That is, it cannot win by mobilizing nonvoters spending cuts his own party will not counte- icials among the poor and minorities. Political scien- nance. Clinton promises to build a New Jerusa- tion. tist Ruy Teixeira of the Brookings Institution lem by squeezing millionaires until they Slow calculates that if turnouts by blacks, Hispanics squeak. riter and poor whites had each been 20 percent But considering that a hefty $4 trillion will offi- higher in every state Bush won in 1988, be spent on private consumption this year, it is don't Dukakis still would have lost by 102 electoral odd for conservatives to argue that any tax votes. increase Congress is apt to impose on individ- the Over the last 30 years America's political uals will radically reshape the economy. It is hitted center has shifted, to the disadvantage of equally implausible for liberals to say that agen- Democrats. Watergate and Vietnam caused an Clinton's policy (management efficiencies, World erosion of confidence in government. The government spending to increase growth and les, It internationalization of economic life has weak- never a discouraging word for the middle class the ened the power of governments. The mobility that has most of America's money) will alter ation- of money and büsinesses inhibits governments the deficit that paralyzes and disgraces gov- and a because wealth can flee currencies threatened ernment. hough by inflation or jurisdictions where growth is So if you nap for now, you will have no St be slow or government is meddlesome. trouble picking up the thread of this year's ation. So parties whose promises depend on by-now familiar political narrative. U.N. Licism 1637 svill ed by or the tions. d the y ade a upon peace- $ vote for any bright GOP presidential prospect, What is most notable about Wilson, erious on was able to but it now seems doubtful he can other than his persistence. is that he of survive MONDAY, SEPTEMBER 7. 1992 A27 Rowland Evans and Robert Novak The Gang of Five's Test Cloistered with one another for Clinton's will be unacceptable. That two weeks, the new crew brought means talking more about Clinton's into the White House from the State economic blueprint for the future and Department by James A. Baker III is much, much less about how many about to emerge from seclusion and times he raised taxes as governor of reveal its plan for extending George Arkansas. It also means a veto, not a Bush's presidency. signature, for the Democratic-craft- "Guarded" is the best description ed tax bill to be passed by Congress for the style of Baker and his four this month. associates-inevitably labeled the Aides at both the White House and Gang of Five by colleagues. They the Bush-Quayle campaign were have told anxious Republican politi- cheered Aug. 24 by the arrival of cians to be patient for a few more Baker and his associates-Robert days, that a new face for the failing Zoellick, Margaret Tutwiler, Dennis Bush campaign will be revealed after Ross and Janet Mullins. It was pro- Labor Day. Specifically, they were claimed as a new beginning after urged to watch carefully for the pres- seven months of drift and indecision ident's speech Thursday to the De- under Chief of Staff Sam Skinner. troit Economic Club. But joy quickly faded. The Gang of This is not only a test for the Gang Five spent its time talking to itself. of Five but may be the last chance The only non-member admitted to its for President Bush to show he can deliberations was Budget Director Richard Darman, the longtime Baker lieutenant who surely is not a favor- The joy caused by ite at campaign headquarters. As this select group huddled nearly non-stop Baker's arrival from 7 a.m. to past 10 p.m., aides got through to Zoellick or Ross for a quickly faded. stray 30 seconds on the phone and to Baker not at all. take advantage of inherent economic The change in atmospherics was policy differences separating him heartening. The fine hand of Jimmy from Gov. Bill Clinton. He has failed Baker was seen in the president earlier tests this year: his State of doing things he does not at all enjoy: the Union address and his Houston turning up in Florida for Hurricane convention speech. He-and Bak- Andrew instead of Kennebunkport er-also flunked last week when the for speed golf and addressing the president permitted career lawyers nation for five minutes to appeal for at the Justice Department to over- aid to the storm's victims. rule him on indexing the capital gains But what Bush needs now is not tax. kindlier atmospherics but meatier With two months left before the policy. The first performance of the election, the truth is clear to all but new team was anything but reassur- the most addled Bush enthusiasts ing. Both Baker and Zoellick wanted who insist the president is so beloved the president to order the Treasury he will win a second term. The drea- to index capital gains taxes for infla- ry last two years of domestic policy tion no matter what Congress said. and especially the useless last seven But the White House announced months, if continued, guarantee a Thursday evening it would abide by Democratic victory. the debatable judgment of Justice The performance of the president Department lawyers that this could and his campaign has been so not be done. wretched that clear-headed support- This display of presidential weak- ers wonder why Clinton's margin is ness can only be excused on grounds not 2-to-1 instead of just 12 to 15 that Baker was trying to clear the points. Their answer is that the last decks for the post-Labor Day push. two decades have built up an irreduc- There is at least a sense derived by ible base of public support for low- the few who have talked at length to tax, small-government policies, even the Gang of Five that they know if they are inconstantly pursued. everything the campaign has done so To exploit this advantage, Bush far has been a total waste and that has been told what he must do: the world begins anew this week- Convince voters his second term will maybe in Detroit Thursday: be better than his first and that © 1992. Creators Syndicate Inc. THE OFFICE OF THE VICE PRESIDENT THE h 14 WASHINGTON, DC Pass: : Total contribution to canvidates 1979-80: $ 60. 7 million Total 1987-88- $159.7 million Total to Congressional candidates, 1979-80; $37.4 million Total 1987-88:5107. 7 mil, source; Fedual Election (Itatistical Atstraction Camm, SENT BY:Xerox Telecopier 7021 ; 9- 6-92 ; 1:06PM ; 201-> 94562464;# 2 AC OF FEDERAL PACs: 1992 ALMANAC OF FEDERAL PACs: 1992 Page 561 Table A: Total PAC receipts, expenditures and contributions th: 1974-1990 A-1 All PACs Non- Coop. Corp. Total connected exactve we stock A-2 Corporate PACs A-3 Labor PACs 608 A-4 Trade/Membership/Heaith PACs 1,146 A-5 Non-connected PACs 162 12 24 1,653 A-6 Cooperative PACs 384 42 56 2,551 A.7 Corporation without stock PACs 723 47 103 3,371 1,053 52 130 4,009 Number Receipts Expenditures Contriburions 1,077 56 151 4,157 1,115 59 138 4,268 Table A-1: All PACs 1,062 59 136 4,172 1977-78 1,653 80,500,000 77,800,000 35,100,000 1979.80 2,551 137,728,528 131,153,384 55,217,291 1981-82 3,371 199,452,356 190,173,539 83,620,190 1983-84 4,009 288,690,535 266,822,476 106,826,887 1985-86 4,157 353,429,266 339,954,146 139,770,157 1987-88 4,268 384,617,093 364,201,275 159,243,241 1989.90 4,172 372,357,602 358,088,777 159,312,728 Table A-2: Corporate PACs 1977-78 785 17,700,000 15,300,000 9,800,000 1979-80 1,206 33,879,272 31,417,630 19,182,122 1981-82 1,469 47,117,168 43,273,223 27,528,000 -92 figures 1983-84 1,682 66,331,047 59,194,066 39,008,465 1985-86 1,744 81,960,209 79,277,456 49,551,157 1987-88 1,816 96,917,153 89,852,158 56,155,259 1989-90 1,795 106,310,888 100,842,124 58,184,210 Table A-3: Labor PACs 93 1977-78 217 19,800,000 18,900,000 10,300,000 to 1979-80 297 25,677,031 25,099,848 13,211,725 1981-82 380 37,473,996 34,813,107 20,288,604 1983-84 394 51,116,628 47,544,022 26,164,349 Maydl. unto. 1985-86 384 65,310,945 57,881,815 31,012,420 1987-88 354 78,509,139 74,071,575 35,495.780 1989.90 346 88,975,012 84.642.941 34,779,569 get on 191-92 Tub. figures. 91 TOTAL 52.4 MILLION Banbara Blackburn 2135 NRCC - Mattemeyer? 546-0317 Dan McKivergan RNC csot-6Lh 863-8666 SENT BY:Xerox Telecopier 7021 9- 6-92 1:07PM 201- 94582464 3 Page 569 ALMANAC OF FEDERAL PACS: 1992 ANAC OF FEDERAL PACs: 1992 Senate House Table C: Overall PAC contributions 723,579 104,110.240 to Democratic and Republican candidates 1,928,118 32,404,982 7,686,772 27,197,181 C.1 All PACs 1,791,701 29,070,667 Co2 Corporate PACs 8,341,491 11,532,249 C-5 Labor PACs 691,507 1,980,743 C-4 Trade/Membership/Health PACs 1,283,990 1,924,418 C-5 Non-connected PACs C-6 Cooperative PACs 8,775,383 110,419.564 C-7 Corporation without stock PACA 21,950,26N 36,190,880 6,756,238 27,990,262 Number Democrate Republicans 11,702,295 32,666,343 6,177,427 9,071,644 Table C: Overall PAC contributions to Democrats and Republicans 677,390 2,285,070 1,211,965 2,215,365 Table C-1: All PACs 1,653 19,700,000 15,300,000 1977.78 1979-80 2,551 28,895,741 26,221,794 1981-82 3,371 45,414,812 38,183,268 61,327,984 45,475,403 1983-84 4,009 4,157 78,905,307 60,908,368 1985.86 4,268 98,426,757 60,803,335 1987-88 4,172 98,388,456 60,839,880 1989.90 Table C-2: Corporate PACs 1977-78 785 3,600,000 6,100,000 1,206 6,873,811 12,292,711 1979-80 1,469 9,408,109 18,118,991 1981.H2 13,981,313 22,233,025 1983-84 1,682 1985.86 1,744 19,293,883 30,268,086 1,816 26,444,826 29,709,757 1987-88 30,603.795 1989.90 1,795 27,579,380 Table C-31 Labor PACs 9,700,000 600,000 1977-78 217 1979.80 297 12,360,099 838,226 19,193,680 1,094,374 1981-82 380 394 23,797,941 1,315,028 1983-84 1985.86 384 28,706,168 2,330.417 1987-88 354 32,749,837 2,741,243 316 32,331,500 2,385.362 1989-90 SENT BY:Xerox Telecopier 7021 g- 6-92 1:07PM ; 201- 94582484:# 4 ALMANAC OF FEDERAL PACH 1992 Page 565 Table B: Overall PAC contributions to Senate and House candidates B.1 All PACs. B-2 Corporate PACs B.3 Labor PACs B-4 Trade/Membership/Health PACs B-5 Non-connected PACs B.6 Cooperative PACs B-7 Corporation without stock PACs Number Senate House Table E-11 All PACs 1977-78 1,653 10,100,000 24,900,000 1979-80 2,551 17,334,656 37,882,726 1981-82 3,371 22,559,498 61,060,692 1983-84 4,009 29,668,014 75,662,076 1985.86 4,157 30,149,386 89,620,771 1987-88 4,268 51,723,579 104,110,240 1989.90 4,172 48,775,583 110,419,564 Table B-2: Corporate PACs 1977.78 785 3,600,000 6,100,000 1979-80 1,206 6,929,972 12,252,150 1981-82 1,469 8,604,780 18,923,220 1983-84 1,682 14,260,807 24,004,408 1985-86 1,744 21,721,324 27,829,833 1987-88 1,816 21,928,118 32,404,982 1989-90 1,795 21,950,268 36,190,880 Table B-3: Labor PACs 1977.78 217 2,800,000 7,400,000 1979-80 207 3,820,919 9,390,806 1981-82 380 4,899,277 15,389,327 1983-84 394 5,580,536 20,290,131 1985-86 384 7,908,118 23,104,302 1987-88 354 7,686,772 27,197,181 1989.90 346 0,756,238 27,990,262 28 weekly Compilation of Presidential Documents 822 May 9 / Administration of George Bush, 1992 Administration of George Bush, 1992 / May 11 823 by turning public housing tenants into home- Message to the Senate Returning owners. Without Approval the Congressional or public subsidies, or fails to eliminate spe- 80 percent of the spending limit, the partici- cial interest PACs. pating candidate may spend without limit At every turn during my time in Los Ange- Campaign Spending Limit and les, I heard people talking about the prin- Election Reform Act of 1992 Further, as I have previously stated, I am and receive unlimited Federal matching ciples that guide these initiatives: personal opposed to different rules for the House and funds. The subsidies provided for in S. 3 May 9, 1992 Senate on matters of ethics and election re- could amount to well over 100 million dollars responsibility, opportunity, ownership, inde- pendence, dignity. form. In several key respects, S. 3 contains every election cycle, yet the Act is silent on To the Senate of the United States: I can already hear some of the critics out I am returning herewith without my ap- separate rules for House and Senate can- how these generous Government subsidies there. They'll say, "Well, you've proposed all proval S. 3, the "Congressional Campaign didates, with no apparent justification other would be financed. It seems inevitable that this before." That's true. They're right. But Spending Limit and Election Reform Act of than political expediency. they would be paid for by the American tax- now it's time to act on these proposals, time 1992." The current campaign finance system S. 3 no longer contains the provision that payer. I understand why Members of Con- to try something new. My first order of busi- the Senate passed last year abolishing all gress would be reluctant to ask taxpayers di- is seriously flawed. For 3 years I have called PACs. Although that provision was overbroad rectly to subsidize their reelection cam- ness now that I am back in Washington is on the Congress to overhaul our campaign to build a bipartisan effort in support of im- finance system in order to reduce the influ- in banning issue-oriented PACs unconnected paigns, but given the significant costs of S. mediate action on this agenda. ence of special interests, to restore the influ- to special interests, S. 3 would not eliminate 3, its failure to address the funding question So far I have spoken about what Govern- any PACs. Instead, the Act provides only a is irresponsible. ence of individuals and political parties, and reduced limit on individual PAC con- Our Nation needs campaign finance laws ment can do. Now let me talk about what to reduce the unfair advantages of incum- tributions to Senate candidates and no that place the interests of individual citizens society must do because Government alone bency. S. 3 would not accomplish any of cannot create the scale and energy needed change in the status quo in the House. More- and political parties above special interests, these objectives. In addition to perpetuating to transform the lives of people in need. All over, the limit on aggregate PAC con- and that provide a level playing field between the corrupting influence of special interests tributions to House candidates to one-third challengers and incumbents. What we do not over America, people have already found the and the imbalance between challengers and answers for themselves, and they're taking incumbents, S. 3 would limit political speech of the spending limit, $200,000, is not likely need is a taxpayer-financed incumbent pro- action to make things better. You can find protected by the First Amendment and inevi- to diminish the heavy reliance of Members tection plan. For these reasons, I am vetoing them everywhere, even in south central L.A. tably lead to a raid on the Treasury to pay on PAC contributions. The average amount S.3. I met a man there named Lou Dantzler, a for the Act's elaborate scheme of public sub- a Member of Congress raised from PACs in George Bush bear of a man who runs the Challengers Boys sidies. the last election cycle was $209,000. The White House, and Girls Club. He started it out in the back In 1989, I proposed comprehensive cam- The spending limits for both House and paign finance reform legislation to reduce Senate candidates will most likely hurt chal- May 9, 1992. of an old pickup truck with a group of kids who wanted to get off the streets. And today, the influence of special interests and the lengers more than incumbents, especially be- across from a burned-out block in south cause S. 3 does little to reduce the advantages powers of incumbency. My proposal would central L.A., the Boys and Girls Club stands abolish political action committees (PACs) of incumbency. Inexplicably, there is no par- unscarred. No, it wasn't a miracle that the subsidized by corporations, unions, and trade allel House provision to the sensible Senate Remarks on Maternal and Infant building was left standing. The real miracle provision restricting the use of the frank in Health Care associations. It would protect statutorily the is what goes on inside. It's a place kids can political rights of American workers, imple- an election year. In the last election cycle, May 11, 1992 the amount incumbent House Members go to get the concern and the love they need, menting the Supreme Court's decision in a place where people care. Communications Workers V. Beck. It would spent on franked mail was three times the Thank you, Lou, thank you, Secretary Sul- That's why guaranteeing a hopeful future curtail leadership PACs. It would virtually total amount spent by all House challengers. livan, and welcome, everyone. Let me just for the children of our cities is about a lot prohibit the practice of bundling. It would The system of public benefits, designed to pay a special thanks to Senator Dale Bump- more than rebuilding burned-out buildings. require the full disclosure of all soft money induce candidates to agree to abide by the ers and to Congressman Tom Bliley, who It's about building a new American commu- spending limits, is unlikely in many cases to have been spearheading many of our prenatal expenditures by political parties and by cor- overcome the inherent favors of incumbency. and immunization initiatives on Capitol Hill. nity. porations and unions. It would restrict the This I know: We have the strength and taxpayer-financed franking privileges enjoyed S. 3 contains several unconstitutional pro- They are true leaders for this cause, and spirit in our Government, in our commu- by incumbents. It would prevent incumbents visions, although none more serious than the we're delighted to see you all here today. nities, and in ourselves to transform America aggregate spending limits. In Buckley v. Also to Jim Mason, our Assistant Secretary from amassing campaign war chests from ex- into the Nation we have dreamed of for gen- cess campaign funds from previous elections. Valeo, the Supreme Court ruled that to be for Health; Bill Roper from Atlanta, doing erations. These are all significant reforms, and I am constitutional, spending limits must be vol- a superb job as our Director at CDC. And Thank you for listening. And may God untary. There is nothing "voluntary" about a warm welcome to representatives of the encouraged that S. 3 includes a few of them, bless the United States of America. the spending limits in this Act. The penalties Advertising Council and to all the very spe- albeit with some differences. If the Congress in S. 3 for candidates who choose not to abide cial mothers and children who are with us is serious about enacting campaign finance Note: The President spoke at 9:03 a.m. from reform, it should pass legislation along the by the spending limits or to accept Treasury today. the Oval Office at the White House. His re- lines I proposed in 1989, and I will sign it funds are punitive-unlike the Presidential Yesterday, on Mother's Day, millions of marks were broadcast live on nationwide immediately. However, I cannot accept legis- campaign system-as well as costly to the tax- Americans took time to appreciate the mir- lation, like S. 3, that contains spending limits payer. For example, if a nonparticipating acle of motherhood. We thank the mothers radio. House candidate spends just one dollar over who brought us into this world, who taught ID: SEP 04'92 11:39 No.005 P.06 Page 5 Health Care Reform for Small Businesses O Over the past two years, 83% of small businesses have seen their health care costs increase. President Bush realizes that small businesses have been at a competitive disadvantage in the insurance marketplace and has pledged to reform the current health care system. The President's plan can reduce the cost of health coverage for small business without costly government mandates or higher taxes. -- Health Insurance Networks: Until now, small businesses have been at a competitive disadvantage in the insurance marketplace. The President's Comprehensive Health Reform Program encourages small businesses to form Health Insurance Networks (HINs) These HINs will allow small businesses to pool their purchasing power, enabling them to purchase low cost, high quality health insurance. The President's proposal also exempts insurance sold through IIINs (as well as that sold outside of HINs) from costly state-imposed mandates and excessive state premium taxes. -- 100% Deduction: Self-employed persons would be permitted to deduct 100% of their insurance costs (as a regular business expense) from their taxable income. Insurance Credit Certificates: Small business employees and their families with low to moderate incomes and not receiving employer provided health insurance would receive insurance credit certificates or tax deductions of up to $1,250 for individuals, $2,500 for 2-person families, and $3,750 for larger families, making insurance affordable. The President's plan ensures that states will develop packages of basic benefits, and will guarantee that similar businesses buying similar insurance policies pay comparable premiums, regardless of how sick their employees are. No longer will small employers find that one sick employee or one employee with a sick child will make insurance unaffordable or unavailable. The President strongly opposes play-or-pay and Canadian- style health plans that would penalize small businesses and bring with them the rationing of services, new intrusive government bureaucracies. -more- ID: SEP 04'92 11:39 No.005 P.07 Page 6 -- A survey conducted by the National Federation of Independent Business showed that 93 percent of small- business owners oppose government mandating that employers purchase health insurance for their employees. In fact, if these employers were forced to pay as much as $150 a month per employee for health coverage, more than one-fourth would opt to close their doors. Another one-fourth would remain open but lay off some employees. O Bill Clinton's play-or-pay health plan would require $80 billion in new taxes. -- In addition, the minimum of a 7 percent payroll tax that a play-or-pay health plan requires could result in a pay cut of $1,680 a year for the average 30-year old male high school graduate, currently earning $24,000 a year in wages, and a pay cut of $1,260 a year for the average 30 year old male high school dropout, currently earning $18,000 a year in wages. RE: CRIME SECTION 703-425-3460 (h) From Paul McNulty, Asst. Sec. for Policy & Communications Many Kate Grant, Special Asst. to the AG 22% decrease is wrong 22.7% crime rate increase from 1981-91 (UCR) from press release (DOJ) accompanying new UCR#S Shouldn use NCVS #S reported: door-to-door survey whereas UCR is crimes reported, and what law en forcement officials say we should use. in 1960s and 70s crime rate was 150% (avg.) in 1980s- to day crimerate is 30% (avg.) we have slowed the rate of growth of crime RE: INFRASTRUCTURE SECTION From Kate Moore; Asst. Secretary of DOT (re budget) 366-9191 according to 5/92 CBO report (which studies the President's budget), 6% is correct. It is actually 6. 37% PAGE 5 18TH STORY of Level 1 printed in FULL format. Copyright 1992 U.S. Newswire, Inc. U.S. Newswire August 28, 1992 SECTION: NATIONAL DESK LENGTH: 1560 words HEADLINE: Barr Statement on FBI's 1991 Uniform Crime Report CONTACT: Frank Shults of the U.S. Department of Justice, 202-514-2007 DATELINE: WASHINGTON, Aug. 30 KEYWORD: bc-fbi-crime-report BODY: Attorney General William P. Barr today released the following statement regarding the Federal Bureau of Investigation's (FBI) announcement of the 1991 violent crime statistics. The FBI indicated that the rate of reported violent crime increased by 3.6 percent between 1990 and 1991. Attorney General Barr said: While the rate of violent crime in 1991 was unacceptably high, the increases in the crime rate over the last 10 years are significantly lower than in the previous two decades. FBI reports tell us that the violent crime rate increased by 126 percent between 1960 and 1970 and by 64 percent between 1970 and 1980, but only by 22.7 percent between 1980 and 1990. The experience of the last 30 years makes clear that the imprisonment of chronic violent offenders has a dramatic positive effect on the amount of violent crime. In the 1960s and early 1970s, incarceration rates fell and crime rates skyrocketed. By contrast, when incarceration rates increased substantially in the 1980s, the rate of increase of crime was substantially reduced. Much of the recent increase is a result of the juvenilization of violent crime, according to the FBI's statistics. This trend clearly shows that we must enact wholesale reform of the juvenile justice system 50 that for the vast majority of juvenile offenders, their first brush with the law is their last, and that the small group of chronic, hardened, youthful offenders are incapacitated for extended periods. The long-term solution to the problem of juvenile crime falls largely outside of the law enforcement system. It requires strengthening those basic institutions -- the family, schools, religious institutions, and community groups - that are responsible for instilling values and creating law-abiding citizens. There are two facts that hold true in the world of violent crime. First, a disproportionate amount of violent crime is committed by a relatively small group of chronic, violent offenders. This small segment of society commits a staggering number of crimes --- well over 100 per year. Second, prosecutors and police officers must be given the tools necessary to identify and incarcerate this hard core group of repeat offenders. All too often, law enforcement's hard work is undermined by a "revolving door justice" LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 6 U.S. Newswire, August 28, 1992 system that puts career criminals back on the street before they have served their entire sentence. The Bush administration has a four-point agenda for fighting violent crime. The four points are: 1) expanding resources to give law enforcement the tools it needs to fight the war against violent crime and drugs (federal law enforcement resources have increased by 60 percent over the last three years); 2) reform of the federal and state criminal justice systems; 3) high impact operations that target the most dangerous criminals through cooperative efforts with state and local law enforcement; and 4) integration of law enforcement with efforts to socially and economically revitalize the communities hardest hit by crime (Weed and Seed). With regard to the second prong of reform, in the 1980s, federal law enforcement officers began to get the tools they needed to fight violent crime. Pretrial detention of dangerous defendants, adoption of sentencing guidelines, and construction of sufficient prison space helped keep violent offenders off the streets. The Department of Justice recently released "Combating Violent Crime: 24 Recommendations to Strengthen Criminal Justice." It is a blueprint for fighting crime at the state and local level. Developed in conjunction with state and local law enforcement, prosecutors and victims groups, the report highlights both the success of tough law enforcement and the continuing need for reform of the criminal justice system. Taken together, these 24 recommendations will be effective tools in our effort to further reduce violent crime. Citizens must take an active role in the push for criminal justice reform. To assist them, the report includes a "Citizen's Checklist" of questions that should be posed to state and local leaders regarding local governments' criminal justice system. The checklist will allow citizens to rate their state's criminal justice system as well as their elected representatives' efforts to ensure that police officers and prosecutors have the tools they need to fight violent crime. Overall, 95 percent of violent crime is handled at the state and local level. It is there where we must focus our attention. Only through the combined support of state and local elected officials and community leaders can we implement the important recommendations put forth in the violent crime report. The 24 recommendations contained in the report are divided into six groups: establishing pretrial detention for dangerous defendants; providing effective deterrence and punishment of adult offenders; providing effective deterrence and punishment of juvenile offenders; providing efficient trial, appeal, and collateral attack procedures; providing for effective prevention and detection of crime; and providing adequate protection for victim's rights. The report includes specific recommendations to: * Protect the community by providing statutory and, if necessary, state constitutional authority for pretrial detention of dangerous defendants; * Adopt truth in sentencing by restricting parole practices and increasing time actually served by violent offenders; LEXIS:NEXIS® LEXIS·NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 7 U.S. Newswire, August 28, 1992 * Adopt mandatary minimum penalties for gun offenders, armed career criminals, and habitual violent offenders; and * Provide sufficient prison and detention capacity to support the criminal justice system. Single copies of the report, "Combating Violent Crime: 24 Recommendations to Strengthen Criminal Justice," (NCJ-137713) may be obtained from the Bureau of Justice Statistics Clearinghouse, Box 6000, Rockville, Md. 20850. The toll-free telephone number is 800-732-3277. TM TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Recyclable 4.769 4.8 15,8 in 1993 From National Crime Victinication Rape 32 5% Survey Robb J 23,7 Assault 18,3 Theft V 25% Just But UCR FBI Uniform Cume Report out 7 murder 3 Rape a 17.4 Rob 9 5.4 ass 7 49.6 Theft 9 2,8 Best not to use either these at all, Bobucttolli UCR office per 100,000 inhabitants Crimex nate 1981 324 } #of offenses 3444 rate of increase rape- - 36 per 100,000 inhabitants rob - 258.7 rape- 18% ass- 289.7 robbery 5.4% theft larguy - 3,139.7 assault - 49.5% ala theft/larceny- 28% 1991 per 100K # of offenses rape- - 42.3 not - 272.7 ass - 433.3 theft lancery - 3,228.8 09-07-92 03:09PM FROM OST BUDGET/PROGRAMS TO 94566218 P001/008 U.S. Department of 400 Seventh St., S.W. Transportation Washington, D.C. 20590 Office or the secretary of Transportation OFFICE OF BUDGET 9/7 TELECOPIER COVER SHEET Date Time Number of pages (including this page) To: Caroe aarhus From: KATE Moore FAX Phone: ( ) 456-6218 Phone: ( ) 366-9191 Subject: Background: more data re Federal infrashure 5 Rending Action: Info Only - Responds to your request Response requested by Other The number for this PITNEY BOWES 7000 is 366-9654. If you have any problems, please call 366-4594. Thank you for your help. Moving America New Directions, New Opportunities 09-07-92 03:09PM FROM OST BUDGET/PROGRAMS TO 94566218 P002/008 CBO PAPERS TRENDS IN PUBLIC INFRASTRUCTURE OUTLAYS AND THE PRESIDENT'S PROPOSALS FOR INFRASTRUCTURE SPENDING IN 1993 May 1992 CONGRESSIONAL BUDGET OFFICE SECOND AND D STREETS, S.W. WASHINGTON, D.C. 20515 09-07-92 03:09PM FROM OST BUDGET/PROGRAMS TO 94566218 P003/008 ASSISTANT SECRETARY OF TRANSPORTATION WASHINGTON, D.C. 20590 CBO - P357 Toth Federal Spending Cnominal #) 1989 34,493 1980 36727 +6,4% 1991 38,294 + 4,3% 19925 41,095 +7,3% 41,095 = +19,1%rs'89- 19,1÷3= " =3= 6,37 0 to Kymorre 9/7/92 3 pm ( NOT NOT rate) 09-07-92 03:09PM FROM OST BUDGET/PROGRAMS TO 94566218 P004/008 TRENDS IN PUBLIC INFRASTRUCTURE OUTLAYS 18 Budget authority for highways in the CBO baseline is about $0.5 billion more than the amount authorized by the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). Most of this added budget authority is for highway demonstration projects that were included in the 1992 Department of Transportation Appropriations Act but were not authorized by ISTEA. The President's budget calls for an increase in highway outlays, from $16.4 billion in 1992 to $17.6 billion in 1993. Highway outlays under the President's budget would be $0.3 billion less than baseline spending levels, and $0.6 billion less than if obligations equaled the level provided by ISTEA in that year. TABLE 4. FEDERAL OUTLAYS FOR INFRASTRUCTURE, 1991-1993 (In millions of nominal dollars) President's Difference Between Budget CBO President's Proposal Type of Actual Estimated Proposal Baseline and Baseline Infrastructure 1991 1992 for 1993 1993 Amount Percentage All Types 38,294 41,095 42,508 43,645 -1,136 -2.6 Highways 14,862 16,410 17,580 17,828 -248 -1.4 Transit 3,912 3,799 3,455 3,823 -368 -9.6 Rail 807 871 638 1,034 -396 -38.3 Aviation 8,184 8,907 9,807 9,692 115 1.2 Water Transportation and Resources 7,514 8,006 7,865 8,104 -239 -2.9 Water Supply and Wastewater Treatment 3,015 3,103 3,163 3,164 0 0 SOURCE: Congressional Budget Office. 09-07-92 03:09PM FROM OST BUDGET/PROGRAMS TO 94566218 P005/008 TRENDS IN PUBLIC INFRASTRUCTURE OUTLAYS 28 SOURCES FOR FEDERAL SPENDING DATA Most of the data for 1980 to the present have simply been assembled from an Office of Management and Budget (OMB) data base that divides federal spending into the categories described above. The OMB data sort spending into the appropriate categories at the subaccount level. In a few instances, these data conflict with those shown in various parts of the budget. In those cases, the data from the budget were used. The data for years before 1980 come primarily from unpublished OMB historical data and from the budget for various years. OMB's historical data show federal spending for individual budget accounts broken down into grant and nongrant spending. By definition, grant outlays are indirect spending; nongrant outlays can be either direct or indirect. The historical data do not separate outlays into capital and noncapital expenditures. The data on capital expenditures were taken from the budget, in particular the "Historical Tables," the "Special Analyses," and the "Appendix" for various years. Because of apparent inconsistencies in the principal data sources, spending data for both the aviation and the rail categories were taken from the federal budget's appendix and classified by type of spending on an account-by-account basis. CAVEATS ABOUT THE FEDERAL DATA The federal spending data include all programs whose primary purpose is to provide infrastructure services. During the 1970s and early 1980s, however, a significant fraction of total federal infrastructure outlays were channeled through programs that included public works investment as only one of many purposes. These multipurpose programs included General Revenue Sharing, Community Development Block Grants, the Economic Development Administration, the Appalachian Regional Commission, the Model Cities program, and others. Not much information exists on the extent to which these programs supported infrastructure services of different types. TABLE A-2. TOTAL FEDERAL SPENDING FOR INFRASTRUCTURE 1956-1991 (In millions of nominal dollars) 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 03:06PM 09-07-20 All Categories 2,161 2,508 3,200 4,823 5,324 5,361 5,641 6,113 6,786 7,411 7,532 7,733 Capital 1,338 1,680 2,493 3,697 4,066 3,969 4,307 4,619 5,242 5,629 5,712 5,805 Other 823 828 707 1,125 1,258 1,391 1,335 1,494 1,544 1,782 1,821 1,928 Highways 776 995 1,528 2,630 2,973 2,645 2,848 3,093 3,710 4,096 4,044 4,069 Capital 729 950 1,511 2,601 2,927 2,610 2,789 3,026 3,641 4,016 3,998 4,000 JSO FROM Other 47 45 17 29 46 35 59 66 69 81 46 70 Mass Transit 0 0 0 0 0 0 1 4 6 12 21 45 Capital 0 0 0 0 0 0 0 2 5 11 16 42 Other 0 0 0 0 0 0 1 2 1 1 5 3 Rail 8 11 14 13 10 11 26 12 15 29 26 41 Capital 0 0 0 0 0 0 0 0 0 0 0 0 Other 8 11 14 13 10 11 26 12 15 29 26 41 Aviation 180 220 316 497 571 72A 818 851 882 941 961 1,042 Capital 27 45 % 164 170 218 221 185 169 153 119 127 Other 153 175 220 333 401 506 598 666 713 788 842 915 Water Transport 420 365 392 436 508 569 617 655 646 717 695 749 Capital 37 66 113 56 57 104 181 151 138 144 153 175 94566218 OL Other 383 299 279 380 451 465 435 504 508 573 541 574 Water Resources" 777 916 931 1,211 1,222 1,368 1,290 1,447 1,460 1,546 1,704 1,685 Capital 545 616 754 840 872 993 1,074 1,203 1,223 1,235 1,344 1,360 Other 232 299 177 371 350 374 216 244 238 310 360 325 Water Supply 0 0 0 0 0 0 0 0 0 0 0 13 Capital 0 0 0 0 0 0 0 0 0 0 0 13 Other 0 0 0 0 0 0 0 0 0 0 0 0 Sewage Treatment 0 3 19 36 40 44 42 52 66 70 82 89 P006/008 Capital 0 3 19 36 40 44 42 52 66 70 82 89 Other 0 0 0 0 0 0 0 0 0 0 0 0 (Continued) 33 TABLE A-2 CONTINUED 1968 1969 1970 1971 1972 1973 1974 1975 1976 TQᵇ 1977 1978 03:06PM 06-20-60 All Categories 8,159 8,358 8,824 10,427 10,916 12,011 13,191 15,780 19,477 5,241 22,208 22,870 Capital 6,017 6,006 6,138 7,104 7,464 8,111 9,158 10,644 13,473 3,767 15,577 15,436 Other 2,142 2,353 2,686 3,324 3,453 3,900 4,033 5,135 6,003 1,474 6,631 7,434 Highways 4,298 4,286 4,542 4,869 4,915 5,004 4,806 5,058 6,712 1,807 6,395 6,393 Capital 4,153 4,140 4,332 4,62t 4,645 4,748 4,480 4,692 6,319 1,671 6,071 5,943 Other 145 146 210 248 270 257 326 366 393 136 325 449 Mass Transit 69 148 124 212 316 491 590 1,106 1,492 339 2,000 2,177 Capital 66 141 119 187 259 358 503 864 946 265 1,307 1,358 Other 3 7 5 25 57 133 87 242 546 74 693 819 Rail 28 29 30 119 152 187 243 929 1,460 211 1,895 1,938 FROM OST BUDGET/PROGRAMS Capital 0 0 0 0 0 0 47 205 568 27 931 848 Other 28 29 30 119 152 187 196 724 891 184 964 1,090 Aviation 1,084 1,206 1,408 1,807 1,908 2,159 2,216 2,387 2,531 578 2,786 3,243 Capital 135 187 196 225 340 565 467 533 495 79 559 810 Other 949 1,019 1,212 1,582 1,568 1,595 1,749 1,854 2,036 499 2,227 2,433 Water Transport 841 857 895 1,027 1,094 1,211 1,316 1,430 1,542 415 1,741 1,787 Capital 214 190 167 199 218 276 332 338 303 73 330 363 TO 94566218 Other 627 667 729 828 876 934 984 1,092 1,238 342 1,411 1,424 Water Resources 1,644 1,591 1,514 1,768 1,948 2,221 2,200 2,608 2,742 804 3,213 3,431 Capital 1,253 1,106 1,013 1,247 1,419 1,427 1,510 1,751 1,843 565 2,201 2,212 Other 391 485 501 521 530 794 691 857 899 239 1,012 1,219 Water Supply 55 81 101 110 127 35 173 211 370 109 422 465 Capital 55 81 101 110 127 35 173 211 370 109 422 465 Other 0 0 0 0 0 0 0 0 0 0 0 0 Sewage Treatment 141 162 210 515 456 703 1,647 2,051 2,628 978 3,757 3,437 Capital 141 P007/008 162 210 515 456 703 1,647 2,051 2,628 978 3,757 3,437 Other 0 0 0 0 0 0 0 0 0 0 0 0 (Continued 34 TABLE A-2 CONTINUED 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 All Categories 26,057 30,989 32,486 29,451 29,023 31,132 33,643 35,931 32,856 34,135 34,493 36,727 38,294 Capital 18,163 21,890 20,712 19,476 19,496 21,339 23,666 26,364 23,051 24,010 23,714 25,732 26,785 Other 03:06PM 7,895 9,099 11,774 9,975 9,528 9,794 9,977 9,566 9,805 10,125 10,779 10,995 11,509 Highways 7,583 9,639 9,514 8,284 9,208 10,811 13,110 14,420 12,969 14,237 13,731 14,584 14,862 Capital 7,089 9,087 8,927 7,803 8,784 10,384 12,683 13,967 12,434 13,704 13,224 13,993 14,267 Other 495 552 587 482 425 427 427 453 535 533 507 590 596 Mass Transit 2,542 3,307 3,914 3,930 3,759 3,811 3,427 3,399 3,353 3,315 3,593 3,830 3,912 Capital 1,700 2,038 2,593 2,588 2,782 3,113 2,420 2,729 2,551 2,395 2,667 3,142 3,218 Other 842 1,269 1,321 1,341 976 698 1,007 670 802 920 927 688 694 Rail 2,059 2,405 3,715 2,154 1,342 1,558 1,072 908 829 598 623 558 807 Capital 1,155 1,246 451 521 426 433 336 136 148 0 -6 -48 228 FROM OST BUDGET/PROGRAMS Other 904 1,158 3,265 1,633 916 1,125 736 772 681 598 629 606 579 Aviation 3,355 3,723 3,814 3,526 4,000 4,415 4,895 5,287 5,520 5,897 6,622 7,234 8,184 Capital 802 907 807 698 831 1,048 1,291 1,665 1,841 1,976 2,256 2,572 3,094 Other 2,554 2,815 3,007 2,828 3,169 3,368 3,604 3,622 3,679 3,921 4,366 4,661 5,090 Water Transpon 1,969 2,229 2,38L 2,687 2,969 3,010 3,201 3,964 3,461 3,111 2,916 3,151 3,148 Capital 372 512 455 486 613 543 749 1,660 843 430 126 271 265 Other 1,597 1,717 1,926 2,201 2,356 2,468 2,452 2,305 2,617 2,681 2,790 2,880 2,882 94566218 OJ Water Resources 3,853 4,223 4,132 3,948 3,904 4,070 4,122 4,041 3,783 4,034 4,271 4,401 4,366 Capital 2,350 2,634 2,463 2,457 2,218 2,363 2,371 2,296 2,292 2,561 2,710 2,833 2,697 Other 1,503 1,588 1,669 1,490 1,686 1,708 1,751 1,745 1,491 1,473 1,561 1,568 1,669 Water Supply 610 729 738 758 558 541 596 520 14 278 252 441 407 Capital 610 729 738 758 558 541 596 520 14 278 252 441 407 Other 0 0 0 0 0 0 0 0 0 0 0 0 0 Sewage Treatment 4,085 4,736 4,279 4,164 3,283 2,914 3,220 3,392 2,928 2,664 2,485 2,528 2,608 Capital 4,085 4,736 4,279 4,164 3,283 2,914 3,220 3,392 2,928 2,664 2,485 2,528 2,608 Other 0 0 0 0 0 0 0 0 0 0 0 0 0 P008/008 SOURCE: Congressional Budget Office. a. Navigation outlays by the Army Corps of Engineers are included in water resources, not in water transport. b. Transition quarter. 35 09-07-92 12:52PM FROM OST BUDGET/PROGRAMS TO 94566218 P001/005 U.S. Department of 400 Seventh SI., S.W. Transportation Washington, D.C. 20590 Office of the Secretary of Transportation OFFICE OF BUDGET TELECOPIER COVER SHEET Date 5 Time Number of pages (including this page) To: Carre Aarnus From: MJackson Phone: ( ) Phone: ( ) 366-1103 Subject: Background: Bt data - - Action: Info Only . Responds to your request X Response requested by Other The number for this PITNEY BOWES 7000 is 366-9654. If you have any problems, please call 366-4594. Thank you for your help. Moving America New Directions, New Opportunities 09-07-92 12:52PM FROM OST BUDGET/PROGRAMS TO 94566218 P002/005 CBO PAPERS TRENDS IN PUBLIC INFRASTRUCTURE OUTLAYS AND THE PRESIDENTS ROPOSALS FOR INFRASTRUCTURE SPENDING IN 1993 May 1992 CONGRESSIONAL BI DGET OFFICE 09-07-92 12:52PM FROM OST BUDGET/PROGRAMS TO 94566218 P003/005 TRENDS IN PUBLIC INFRASTRUCTURE OUTLAYS 3 TABLE 1. PUBLIC SPENDING FOR INFRASTRUCTURE, 1956-1989 (In millions of 1990 dollars) Year Total Federal State and Locala 1956 65,723 11,265 54,458 1957 68,608 12,231 56,378 1958 69,899 14,266 55,632 1959 77,226 21,092 56,134 1960 77,027 23,322 53,705 1961 81,523 23,514 58,009 1962 82,746 24,151 58,596 1963 86,933 25,386 61,547 1964 88,600 27,737 60,863 1965 91,833 29,725 62,108 1966 94,507 29,377 65,130 1967 95,952 29,172 66,779 1968 96,747 29,701 67,046 1969 97,973 28,870 69,102 1970 96,925 28,308 68,617 1971 100,972 30,931 70,041 1972 104,338 30,844 73,494 1973 104,360 32,979 71,382 1974 102,610 33,050 69,560 1975 105,712 33,859 71,852 1976 106,481 39,421 67,060 1977 107,418 42,348 65,070 1978 107,918 40,453 67,465 1979 113,614 41,531 72,083 1980 117,104 44,128 72.976 1981 117,928 42,647 75,281 1982 113,516 36,900 76,616 1983 115,373 35,228 80,145 1984 119,222 37,381 81,841 1985 124,656 38,436 86,220 1986 131,838 39,967 91,871 1987 136,902 36,037 100,866 1988 140,468 36,524 103,944 1989 142,493 35,499 106,994 SOURCE: Congressional Budget Office. a. State and local outlays net of federal grants and loans. 09-07-92 12:52PM FROM OST BUDGET/PROGRAMS TO 94566218 P004/005 29. PHYSICAL CAPITAL PRESENTATION Part Three-41 Table 29-5. DETAIL OF FEDERAL CAPITAL OUTLAYS BY DEFENSE AND NONDEFENSE (in millions of dollars) 1001 actual 1992 estimate 1993 estimate CAPITAL OUTLAYS: NATIONAL DEFENSE: Major public physical capital: Construction and rehabilitation: Military construction 2,972 3,688 5,064 Family housing 402 505 702 Atomic energy defense activities and other 1,282 1,231 1,284 Subtotal, construction and rehabilitation 4,856 5,402 7,050 Acquisition of major equipment: Procurement 82,058 74,358 68,898 Atomic energy defense activities and other 617 741 617 Subtotal, acquisition of major equipment 82,676 75,097 69,514 Subtotal, major public physical capital 87,331 60,499 76,565 Other capital outlays: Conduct of research and development Defense military 35,330 37,525 39,529 Atomic energy and other 6.339 7,097 6,698 Subtotal, defense research and development 41,669 44,622 46,228 Other outlays 517 443 160 Subtotal, other capital outlays 42,186 45,065 46,388 Subtotal, national defense capital outlays 129,517 125,583 122,953 NONDEFENSE: Major public physical capital: Construction and rehabilitation: Highways 14,214 15,752 16,894 Mass transportation 3,218 3,150 2,878 Rail transportation 48 141 201 e Air transportation 1,598 1,629 1,854 B Water transportation 135 138 122 d Community development block grants 2,976 3,125 3,339 Other community and regional development 939 1,060 1,002 Pollution control and abatement 3,494 3,384 3,401 Water resources 2,640 2,567 2,322 Other natural resources and environment 1,008 1,241 1,359 Energy 2,304 2,658 3,562 Veterans hospitals and other health 916 1,195 1,292 Postal Service 1,277 1,777 780 Federal buildings fund 500 874 1,345 Other programs 1,397 1,866 2,309 Subtotal, construction and rehabilitation d 38,684 40,555 42.659 d Acquisition of major equipment: Air transportation 1,579 1,838 2,099 Other transportation 486 411 320 Space flight, research, and supporting activities 1,841 1,680 1,431 General science and basic research 170 204 279 Veterans medical care 449 541 550 Postal Service 85 519 1,286 General supply fund 346 418 401 Other 523 527 735 Subtotal, acquisition of major equipment 5.479 6,138 7,080 Other physical assets (grants) 603 591 $41 Subtotal, major public physical capital 42,745 47,282 50,379 Other capital outlays: Other physical assets (direct) 4,855 6,005 6,161 Conduct of research and development General acience, space, and technology: NASA 6,277 6,383 6,751 National Science Foundation 1,631 1,840 2,056 Other general science 834 952 1,250 Subtotal, general science, space. technology 8,741 9,154 10,057 Energy 2,501 3,072 3,231 Transportation: Department of Transportation 333 407 455 09-07-92 12:52PM FROM OST BUDGET/PROGRAMS TO 94566218 P005/005 YEAR F41992 Pres Budget PHYSICAL CAPITAL PRESENTATION Part Six-21 sis, He Table XVIII-3. DETAIL OF FEDERAL CAPITAL OUTLAYS BY DEFENSE uction Table XVIII-3. DETAIL OF FEDERAL CAPITAL OUTLAYS BY DEFENSE AND NONDEPENSE AND NONDEFENSE-Continued trants (in millions of dollars) physic (in millions of dollars) ued on 1990 actual 1991 estimate 1992 estimate 1990 actual 1991 estimate 1992 estimate chang OUTLAYS: to @ Other 1,293 1,761 2,094 MITIONAL DEFENSE: y gran Major public physical capital: Subtotal, acquisition of major stimat Construction and rehabilitation: equipment 5,165 6,613 7,160 utlays Military construction 4,575 4,019 4,020 Other physical assets (grants) 585 587 641 Family housing 607 490 440 Atomic energy defense activities Subtotal, major public physical and other 1,268 1,745 2,669 capital 40,745 44,345 47,227 I on Subtotal, construction and reha- Other capital outlays: bilitation ys. Th 6,451 6,255 7,129 Other physical assets (direct) 3,676 6,524 8,057 Conduct of research and IWB Acquisition of major equipment: development: Procurement aye, a 80,858 79,098 74,300 General science, space, and or St Atomic energy defense activities technology: and other 545 682 908 NASA I capit 5,624 8,158 6,859 Subtotal, acquisition of major National Science Foundation 1.520 1,702 1,936 equipment 81,403 Other general science 784 79,779 897 75,208 1,076 Subtotal, major public physical Subtotal, general science, capital 87,854 86,034 space, technology 7,927 8.757 82,337 9,872 Other capital outlays: Energy 2,342 2,435 2,813 Conduct of research and Transportation: development Department of Transportation 272 365 407 NASA Defense military 701 38,247 36,363 816 908 38,655 Atomic energy and other 2,831 2,785 2,919 Subtotal,transportation 973 1,181 1,315 Subtotal. defense research and Health: development 41,078 39,148 41,574 National Institutes of Health 7,092 7,320 7,736 All other health Other outlays 555 1,162 1,408 356 1,528 383 Subtotal, health Subtotal, other capital outlays 8,253 8,728 2 41,634 39,504 9,264 41,957 Agriculture Subtotal, national defense capital 937 987 1,022 3 Natural resources and environment outlays 1,220 1,376 129,488 9 125,539 1,434 124,293 All other research and develop- NONDEFENSE: ment 1,081 1,157 1,325 Hajor public physical capital: Subtotal, conduct of research Construction and rehabilitation: and development 22,732 24,620 27,044 Highways 13,972 14,116 14,837 Mass transportation 3,142 3,371 3,051 Conduct of education and training: Rail transportation Department of Education: 36 91 149 Air interportation 1,312 Higher education 1,567 1,723 7,795 9,737 11,797 Water transportation 99 126 Elementary, secondary, and vo- 124 Community development block cational education 9,559 11,095 12,275 Other grants 2,818 412 3,073 436 3,097 398 Urban development acton grants 209 210 200 Subtotal, Department of Edu- Other community and regional de- cation 17,766 21,269 24,470 velopment 834 895 790 Pollution control and abatement 3,163 3,438 Veterans readjustment benefits 441 3,403 495 574 Water resources 2,669 2,925 2,906 Training and employment pro- Other natural resources and envi- grams 3,890 3,954 4,133 ronment 926 Health training 1,176 1,111 1,313 1,203 1,337 Energy 2,557 2,081 Other education and training 3,783 4,344 2,956 4,518 Veterans hospitals and other Subtotal, conduct of education health 879 892 1,088 and training 27,056 31,374 Postal Service 35,031 1,070 1,361 926 Other programs 1,309 1,886 Loans and other financial capital: 2,974 Loans: Subtotal, construction and reha- International affairs -398 -743 -5,512 bilitation 34,995 37,145 39,426 Agriculture -4,445 -3,229 -2,258 Acquisition of major equipment: Mortgage credit 3,034 2,945 91 Air transportation Deposit insurance -2,195 -807 1,344 1,688 -114 1,761 Other transportation Other advancement of com- 340 420 452 Space flight. control, and data merce -358 -179 -170 Transportation communications -562 1,793 39 2,009 1,869 166 General science and basic re- Disaster relief 401 -36 -424 search Other community and regional 148 241 199 Postal Service development 264 234 247 259 484 784 Education 3,288 1,336 692 ID: SEP 04'92 11:41 No.005 P.11 Page 10 NAFTA means more opportunities for U.S. small businesses to grow through international export. U.S. merchandise exports to Mexico and Canada have more than doubled since 1980, rising from $51 to $118 billion. The President is working for a strong GATT agreement to open markets worldwide to a variety of U.S. businesses. A successful agreement could increase U.S. output by $1 trillion over the next ten years. --- The President stood firm in his protection of U.S. intellectual property rights and opposed arbitrary emissions targets and timetables in Rio de Janiero at the United Nations Conference on the Environment and Development. Had the President not successfully objected to these Rio initiatives, the U.S. biotech industry would have been decimated, the U.S. opposed provisions that would have jeopardized U.S. biotech industry activities overseas, and new job-costing carbon taxes. Development of a skilled and Literate Workforce President Bush believes that improving the American educational system and job training programs are critical to America's competitive position in the world. The President has begun programs that will lead to a better educated workforce that can quickly adapt to the changing business needs of the future. -- The President's America 2000 grass-roots education strategy advocates school choice (both private and public), tougher standards, and would create break-the- mold New American Schools. The President has doubled funding for literacy and established the National Institute for Literacy which coordinates all federal literacy programs. Literacy is a top priority of both the President and Mrs. Bush. The President's Job Training 2000 initiatives will replace several different Federal job-training programs with a new, coordinated, market-driven system. Services now provided under the Job Training Partnership Act will be provided through Skills Centers that will provide "one stop shopping" for those in need of job training. -erom- ID: SEP 04'92 11:42 No. 005 P.12 Page 11 On April 14, 1992, President Bush sent to Congress his Youth Apprenticeship Act. This bill facilitates the development of voluntary youth apprenticeships that integrate high academic standards, workplace skills, and real working experience leading to meaningful employment. o The President's Lifelong Learning Act ensures that higher education will be available to many people who are now denied access, particularly part-time students. This Act makes it easier for employees of small businesses to get training by providing a lifetime line of credit for all Americans. Supporting Women Entrepreneurs Through the Office of Women's Business Ownership at the Department of Labor and the Small Business Administration, the Bush Administration assists nearly 5 million women entrepreneurs in the U.S. Census Bureau statistics indicate that women own 32% of all small businesses in the United States, projected to grow to 40% by the year 2000. President Bush has established initiatives designed to help women to establish and maintain their own businesses. His initiatives provide technical assistance, improve access to credit, and foster export growth. White House Conference on Small Business The President, in recognition of the important role small business plays in the American economy, fully supports the 1994 Conference on Small Business. # # # Bush Adds Troops, $300 Million in Aid THE WASHINGTON POST For South Florida HURRICANE ANDREW By David S. Broder and Thomas W. Lippman Washington Post Staff Writers President Bush, expressing irritation at political "second-guessing" of federal relief efforts, yesterday ordered 5,000 more troops to storm-ravaged sections of Flor- ida and made $300 million more available to aid victims there of Hurricane Andrew. The president interrupted his weekend at Camp David for a one-hour White House briefing from Transportation Sec- retary Andrew H. Card Jr., his on-the- scene representative, and other officials. Then Bush outlined measures that he said would "respond to this crisis on a human level, block by block, right out there where these people live." The additional troops, which will bring total federal and state troop deployment in the area to about 20,000, are to expand the reach of food, medical, transportation and housing services to victims "so they don't have to leave what few possessions they have and the familiar surround- ings that they have lived in," Bush said. When the new troops arrive in South Florida, they will be plunged into an ex- traordinary panorama of confusion and hardship in which the sheer volume of the relief effort has overwhelmed the commu- See PRESIDENT, A19, Col. 1 BY CAROL GUZY-THE National Guard troops distribute food to children in storm-devastated Florida City neighborhood. The volume of workers is reportedly hampering relief Bush Adds Troops, $300 Million to Florida Aid PRESIDENT, From A1 nity's ability to support it. So many volunteers, law enforcement offi- cers, troops and work crews were on the roads of southern Dade County yesterday that they virtu- ally paralyzed each other. Card said the goal of the addition- al help is to have "small neighbor- hood tent facilities, so people can keep an eye on their goods, repair their houses and have a place near- by to get out of the sun and get a bot meal." The $300 million in funds, almost five times the amount previously allocated, is to allow the Federal Emergency Management Agency (FEMA) to expand its operations and the Small Business Administra- tion to make reconstruction loans, Card said. The president said he would ask Congress for supplemental funds of undetermined size when it returns after Labor Day. volunteer Only Delpino, left, shaves Nathan Lovis Phyllis Hurder, center, and Bertha Arnold rest at shelter. as As he did Friday, Bush expressed Red Cross strong irritation at questions about the delay in dispatching federal aid likely as generators are hooked up and the possible political conse- by amateurs buying them from quences in a state vital to his re- freelance vendors. Autility spokesman said the task election strategy. "May I tell you something?" he facing Florida Power may be the said to reporters before returning greatest ever faced by a U.S. util- to Camp David. "This may be hard ity. Before individual homes and for you to believe. I am thinking shops CER be reconnected, power- about what's good for the people line workers must rebuild thou- here. I don't even think about the sands of antility poles, transformers politics of it. We're trying to help and transmission lines that feed people. Can't we help people power to individual customers. without having somebody try to put For the second consecutive day, a political interpretation in it? I the misery of roofless homeowners mean, heaven sakes. I'm sorry, and shopkeepers was compounded I just simply find that a little bit out- by heavy downpours, which soaked rageous." exposed carpets, insulation and fur- He took the same tone when a re- nishings dragged from devastated porter asked about comments by dwellings. Bush's challenger, Arkansas Gov. Bill Clinton that "he's not criticizing Spec. James Taswell, left, watches Marcella Canning and George Bakanas eat Fear of looting continued to be first hot meal since storm. Feur of 22 field kitchens served food early yesterday. pervasive. The inscription "We you but be thinks that the federal shoot looters" appears throughout response should be looked into to the area, and police said well-armed A serious problem. Card said, is that this is a magnificent re- see how it could be improved." homeowners were not making idle that communications are so poor sponse-local, state and "I don't respond to Governor threats. They reported 112 arrests Clinton on these matters," the pres- that people often do not know federal where meals are available. Bush and Card said that Louisi- Friday night for violation of the 7 ident said. "We have a national Still, he said, be had breakfast ana Gov. Edwin W. Edwards (D) p.m.-to-7 a.m. curfew still in effect emergency here and we're trying to south of the city of Miami. get this job done. If there are with storm victims yesterday "and had expressed satisfaction with cleanup efforts in his state, which ways to improve what we're doing, the situation is much, much better Lippman reported from Miami. took a lesser blow from Andrew, fine. But this isn't the business of today than it was yesterday, and and that Edwards was not asking second-guessing. It's the business yesterday was a quantum leap over additional federal help. of trying to help people." the day before." At a Defense Department brief- Card said the had told the pres- The president also expressed ident that only four of 22 field kitch- ing earlier in the day, officials said optimism. "It's been a very impres- 14,500 military personnel, includ- ens shipped Thursday with the first of the 7,000 Army and Marine sive effort," he said, "and 1 think the ing those on ships carrying con- people of this community who have struction materials, were in or on troops were serving breakfasts yes- terday morning but that 18 were been heartbroken, been scared, their way to Florida. Card said the expected to be in operation by last wondering where their meals are 5,000 mentioned by Bush were ad- night. coming from, are now seeing ditional contingents of Army troops and Marines. In stricken Dade County yester- day, officials appealed in vain for motorists to stay off roads because Elections in Dade County traffic gridlock, compounded by tack of traffic lights and road signs, is blocking the relief campaign. Delayed Because of Storm Out-of-state truckers hauling re- lief supplies were being asked to stop at West Palm Beach and unload Associated Press Denis Dean, representing Sec at a central point rather than drive retary of State Jim Smith. "But into congealed traffic south of Mi- MIAMI, Aug. 29-Circuit we see no reason to have the ami. Judge Leonard Rivkind today results sealed. There's - need Kate Hale, Dade County emer- postpomed primary elections in for it, and the court has no jo- gency operations director, said Dade County until Sept. 9, agreeing with county officials risdiction to do it." the telephone system was nearing that Hurricane Andrew made it Four of the five races covered collapse because the volume of by the judge's order overlap calls had nearly tripled in the impossible to hold a fair election eight counties. The other is the county, from about 1.5 million in a Tuesday. Rivkind's ruling does not af- statewide U.S. Sentite primary. normal hour to more than 4 mil- fect election schedules in Flor- Dade County Elections So- lion. Ida's 66 other counties. pervisor David Leahy said vot- Hospitals and medical workers ing locations in 102 precincts in reported a new rash of injuries The state did not oppose the the hard-hit southern part of among people using unfamiliar delay, but officials said they may Dade County could not be used, requipment such as chain saws and appeal Rivkind's order to keep meaning that 132,000 people among barefoot children cutting results of five races under would have trouble casting bal- their feet on glass and nails. wraps until polls close in Dade Florida Power & Light Co. offi- County. lots. cials said about 750,000 customers "A one-week delay, we feel Replacement polling places are still without electricity. The that's in the best interest of the would be set up in two high utility said that improper wiring of people of Dade County," said schools, and officials will adver- gasoline-powered generators Assistant Attorney General tise their locations, Leahy said. caused shocks to two power-line workers and that more injuries are THE VICE PRESIDENT'S OFFICE Office of the Press Secretary FOR IMMEDIATE RELEASE AUGUST 13, 1991 THE PRESIDENT'S COUNCIL ON COMPETITIVENESS AGENDA FOR CIVIL JUSTICE REFORM IN AMERICA FACT SHEET "Overuse and abuse of the civil justice system has become a self-inflicted competitive disadvantage." Vice President Dan Quayle, addressing the American Bar Association. Vice President Dan Quayle today presented the recommendations of the Council on Competitiveness concerning Civil Justice Reform in America. The recommendations embody the Administration's comprehensive plan to streamline the American civil justice system. The Council's report proposes 50 specific reforms to help decrease the costs and time required to resolve legal disputes in the American court system. Many of the reforms incorporate market-type incentives into the procedural system and seek to encourage earlier settlement. None of the reforms would impair substantive legal rights or limit an individual's access to the courthouse. The Council believes that these changes are necessary to maintain America's competitiveness. The Problem: An Overburdened Civil Justice System The report highlights a growing explosion of litigation in American society: - With 70% of the world's lawyers, Americans are much more likely to resolve disputes in courts than citizens of other countries. - Federal district court filings have increased almost 300% over the last 30 years. State court filings increased by more than 1.6 million cases from 1986 to 1989. - It takes over a year to resolve most lawsuits. Delays of 3 to 5 years are not uncommon, and the time required for resolution is increasing. - Every year Americans spend an estimated $300 billion on legal fees, court costs, and individual time and effort in litigation. - Excessive litigation puts America at a competitive disadvantage internationally. - 51 - The cost of our litigious society is borne by: - Consumers who pay higher prices for goods and services and insurance. - Consumers also suffer when products are not available. Almost half of all U.S. manufacturers have withdrawn products from the market due to liability issues. - Workers who lose their jobs. 1 out of every 7 companies indicates it has laid off employees because of liability issues. - Businesses that have higher costs. Promote Justice for All Americans The Council Report offers 50 recommendations for immediate reform of our civil justice system. These proposals are aimed at achieving the following goals: (a) Swifter Justice -- The proposals will facilitate more timely and efficient handling of cases, including speedier judicial intervention. (b) Reducing Costs of Litigation -- The proposals add new market incentives to the litigation process. (c) Expanded Opportunities to Protect Rights -- "Consumers" will be given a greater choice in the avenues for resolving disputes, including access to less expensive methods than civil trial. (d) Maintain the Integrity of the Justice System -- The proposals ameliorate features that ill-serve both the justice system and competitive goals, such as the present regime of punitive damages and the improper use of expert evidence. Major Reforms Five areas were targeted for major reforms: (a) Discovery -- Approximately 80% of the time and cost of a lawsuit involves pre-trial investigation of the facts. The Council's reforms will discourage overuse and abuse of discovery. - 52 (b) Punitive Damages -- Limitless punitive damages discourage settlement by random awards unrelated to actual harm. The Council's proposals restore fairness' to this area of the law by placing appropriate limits on punitive damages, bifurcating trials, and requiring clear proof of wrongdoing. (c) Modified English Rule -- The United States is one of the few countries where winners and losers alike pay their own legal fees. The Council's proposals will establish the mechanism in certain cases to make the prevailing party whole by compensating the winner for his or her legal fees. (d) Expert Evidence -- There has been an explosion of "junk science" in our courtrooms. The Council's recommendations will make certain that expert testimony is an objective aid to the courts' search for truth. (e) Multi-Door Courthouse -- Consumers will be given a choice to elect an effective alternative to court adjudication. The Administration is committed to the fair, efficient, and early resolution of disputes. To demonstrate this commitment, the Administration will apply many. of the suggested reforms to litigation conducted by federal agencies. The Administration is also undertaking steps to implement the recommendations: (a) Legislation will be forwarded to Congress implementing the federal court reforms. (b) Proposed amendments to the Federal Rules of Civil Procedure and the Federal Rules of Evidence will be submitted through the Supreme Court. (c) Model statutes and rules will be proposed for adoption by the 50 states. These recommendations were prepared by the Council's Working Group on Civil Justice Reform, chaired by Solicitor General Kenneth W. Starr. The Working Group was composed of experts from the Department of Justice, the White House Counsel's Office, the Office of Policy Development, the Office of the Vice President, the Departments of Commerce, Treasury, Energy, and Health and Human Services, the Office of Management and Budget, the Council of Economic Advisors, and the Environmental Protection Agency. The Council on Competitiveness unanimously endorsed the 50 reforms and directed that this Report on Civil Justice Reform be transmitted to the President. - 53 - Jesse Jackson quote Re Capitalism PAGE 2 5TH STORY of Level 1 printed in FULL format. Copyright 1991 The Times Mirror Company Los Angeles Times October 28, 1991, Monday, Home Edition SECTION: Metro; Part B; Page 5; Column 1; Op-Ed Desk LENGTH: 652 words HEADLINE: COLUMN LEFT; RACISM IS THE BOTTOM LINE IN HOME LOANS; AFTER REJECTION BY BANKS, BLACKS AND LATINOS ARE DRIVEN TO PRIVATE LENDERS WHO CHARGE 30%, USING THE SAME BANK CAPITAL. BYLINE: By JESSE JACKSON, The Rev. Jesse Jackson writes a syndicated column. BODY: The hopes of millions of Americans are being trampled by criminals. Lives are ruined; dreams are crushed; homes are lost in a continuing crime wave. The perpetuators target the affluent and the middle class alike. The Federal Reserve has just reported that this criminal activity extends across the country. Yet not a peep has been heard from the law-and-order crowd in the White House or Congress. The silence relates to the nature of the crimes. The Federal Reserve confirms what we have known for decades: Banks routinely and systematically discriminate against African-Americans and Latinos in making mortgage loans. The discrimination extends across income levels. Whether minority applicants are workers, managers or professionals, they are rejected for home mortgages two to four times more often than whites at similar income levels. Minority entrepreneurs face similar discrimination when they seek capital for their businesses. This is a crime wave with devastating effects. The very minorities who do the right thing -- the hard-working people who get ahead against the odds ------------------------- find their way blocked when they seek a mortgage for a home or a loan for a small business. Their access to capital is constricted by this illegal discrimination. Capital in this economy is like blood to the human body. Constrict its flow and vitality is lost. Subtract capital from capitalism and all that's left is the = ism. You can believe, but you cannot achieve. The discrimination against blacks and Latinos is not confined to a few communities. It is pervasive. In 1989, a Boston Fed study examined 48,000 real-estate deals in 60 communities and found systematic red-lining. Banks simply refused loans to applicants from black neighborhoods, across levels of income and wealth. What happens to the rejected? Their needs and dreams do not vanish when the banks deny them credit. They become easy prey for loan sharks offering to lend money at 20% and 30% interest. The Wall Street Journal reported on Sterling Saunders, a Boston homeowner, who needed a home-repair loan. He had a steady job, equity in his house and little debt, but two of New England's largest banks, Shawmut and the Bank of Boston, turned him down. TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 3 1991 Los Angeles Times, October 28, 1991 In desperation -- not wanting his house to deteriorate for want of repairs -- he arranged a two-year loan from a private lender, Resource Equity, at 34.09% interest. When Resource wouldn't refinance his loan, Saunders fell deeper into debt to even worse sharks. Now the 42-year-old city employee, his wife and three daughters face eviction from their home of 16 years. Where did Resource Equity get the money to lend to Saunders? From multimillion-dollar credit lines at mainstream banks, including Shawmut. As Andrew Fischer, a Boston attorney, concluded: "The mortgage hustlers can write mortgages at 18% or 22% because the banks aren't out there lending at 10% or 12%. But it's usually bank money anyway." Rep. Henry Gonzalez (D-Tex.), the chairman of the House Banking Committee, has called for President Bush to hold a White House summit to map out strategies for ending this destructive crime wave. HE is unlikely to get much satisfaction. Despite his recent, begrudging retreat on the civil-rights bill, President Bush is likely to continue to use race as a political weapon. AS the recession continues and unemployment grows, Republican strategists are likely to intensify the "Willie Horton" race-bait politics that David Duke is using to great effect in Louisiana. As the old Woody Guthrie song goes, some will rob you with a gun, and some with a fountain pen. The Federal Reserve study has confirmed what any African-American or Latino could tell you. Racial discrimination is still routine and destructive in this society, experienced by the affluent and the poor alike. What we need is a law-and-order campaign to stamp out the lawlessness that scars 50 many lives. TYPE: Opinion LEXIS:NEXIS® LEXIS·NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 1 1990 The San Francisco Chronicle, NOVEMBER 28, 1990 * The facsimile machine, which was invented in the United States but made a success by Japan. U.S. executives stumbled badly, as their market research indicated few people would pay much money for a kind of copy machine that sent messages at prices TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS:NEXIS Services of Mead Data Central, Inc. Recyclable 202 Science & Technology - Inventions; Discoveries and Innovations Science & Technology - Discoveries and Innovations; Chemical Elements 203 Date inventor Nation. Invention Date inventor Nation. Invention Tire, pneumatic. 1888 Dunlop Scottish 1776 Bushnell. U.S. Toaster, automatic. 1918 Strite U.S. Date Discoverer Nation. Submarine, torpedo 1865 Law English Date Discoverer Nation. Superconductivity (BCS 1957 Bardeen, Cooper Tool, pneumatic U.S. trautin 1804 Fulton 1922 Banting, Best. Canadian, U.S. Torpedo, marine Quantum theory theory Macleod 1900 Schreiffer U.S. Scottish Planck, German 1904 Holt intelligence testing Quasars Tractor, crawler U.S. 1905 Binet. Simon 1963 Matthews, 1885 Stanley French Transformer A.C. seniazid 1947 Shockley, 1952 Hoffman- Sandage U.S. Transistor Quinine synthetic. 1914 La-Roche 1946 Swinton English Brattain, U.S. Woodward, Tank, military Tape recorder, magnetic 1899 Poulsen Danish Bardeen U.S. Domagk. German Doering U.S. 1938 Du Pont U.S. 1884 Van DePosite, theory 1912 Trolley car, electric Soddy Teflon English Telegraph, magnetic 1837 Morse U.S. -87 Sprague U.S. Radioactivity 1896 Becquerel French 1864 Edison. U.S. Coolidge U.S. Radium 1912 1898 Curie, Pierre French Telegraph, quadruplex Telegraph, railroad 1887 Woods U.S. Tungsten, ductile Tupperware 1945 Tupper U.S. Laser (light amplification by stimulated emission Curie, Marie Pol.-Fr. 1849 Bourdin French of radiation) 1958 Townes, Schaw- Relativity theory 1905 Einstein German Telegraph, wireless 1895 Marconi Italian Turbine, gas Turbine, hydraulic Francis U.S. low U.S. Reserpine. high frequency 1849 1949 Jal Vaikl. Indian 1876 Bell U.S.-Scot. Telephone Turbine, steam 1884 English uni, velocity Parsons 1675 Roemer Danish 1912 De Forest U.S. German Light, wave theory 1690 Huygens Dutch Schick test 1913 Gutenberg Schick U.S. Telephone amplifier 1891 Stowger. U.S. Type, movable 1447 Sholes, Soule, 1796 Senefelder Bohemian Silicon 1823 1867 Berzelius Swedish Telephone, automatic 1900 Poulsen, Typewriter U.S. (sectomy Glidden 1935 Egas Moniz Portuguese Streptomycin 1945 Waksman U.S. Telephone, radio Fessenden Danish L10-25 1943 Hoffman Swiss Sulfadiazine 1940 Roblin U.S. Telephone, radio 1906 De Forest U.S. 1907 U.S. Sulfanitamide Spangler 1935 Bovet, Trefouel. French Telephone, radio, d 1915 AT&T U.S. Vacuum cleaner, electric de Mestral Swiss Sulfanilamide theory. 1908 1948 Gelmo Mendalian laws German 1898 Poulsen Danish Veicro Buschnel U.S. 1866 Mendel Austrian Sulfapyridine 1938 Telephone, recording 1899 U.S. 1972 Ewins, Phelps Collins Video game ("Pong Matsushita, JVC Mercator projection Sulfathiazote English Telephone, wireless Video home system (VHS) 1975 Japanese Fosbinder, Walter U.S. 1608 Neth (map) 1568 Mercator (Kremer) Flemish Sulturic acid Lippershey 1831 Phillips Telescope Italian Methanol Galileo 1661 Boyle Sulfuric acid, lead English Telescope 1609 Irish 1746 Roebuck Telescope, astronomical 1611 Kepler German Washer, electric 1901 Fisher U.S. Mik condensation English 1853 Borden U.S. Thiacetazone 1928 Morkrum, Langmuir, Molecular hypothesis 1811 Avogadro Italian 1950 Betmisch, Teletype Kleinschmidt U.S. Welding, atomic Zworykin hydrogen Palmer U.S. laws of 1924 1687 Newton English Mietzsch, Television, iconoscope 1923 U.S. Welding. electric 1877 Thomson U.S. Domagk. German 1927 Farnsworth U.S. Wind tunnel. Eiffel French Tuberculin 1912 Namycin 1890 Koch. Television, electronic 1949 Waksman, German Television, (mech. Scottish Wire, barbed 1874 Glidden U.S. Haisn U.S. Lechevalier U.S. 1923 Baird Uranium fission 1875 Neutron 1932 Hahn, Meitner, scanner) Gallieo Italian Wire, barbed U.S. Chadwick Thermometer 1593 Wrench, double-acting 1913 Owen English Name acid (theory) 1939 French 1648 Glauber Strassmann German German Thermometer. 1730 Reaumur Nate oxide Thermometer, mercury 1714 Fahrenheit German 1772 Bohr U.S. Priestley Danish 1913 Coolidge English 1846 Fermi 1890 Bundy U.S. X-ray tube Sobrero Italian Italian Einstein, Time recorder Time, self-regulator 1918 Bryce U.S. Zipper 1891 Judson U.S. Pegram, 1845 Thomson Scottish Tire, double-tube. Ol cracking process 1891 Dewar U.S. Wheeler. U.S. Chygen Uranium fission, 1774 Priestley English Fermi, Diytetracycline atomic reactor 1950 Finlay, et al. 1942 U.S. Szilard U.S. Czone. 1840 Schonbein German Vaccine, measles 1954 Enders. Peebles U.S. Vaccine, polio 1953' Salk U.S. Paper, suifite process 1867 Tilghman U.S. Vaccine, polio, oral 1955 Sabin U.S. Paper, wood pulp, Vaccine, rabies. 1885 Pasteur French suifate process 1884 Dahl German Vaccine, smallpox 1796 Discoveries and Innovations: Chemistry, Physics, Biology, Medicine Jenner Penicillin Fleming Vaccine, typhus English 1929 Scottish 1909 Nicolle. French practical use 1941 Florey, Chain English Van Allen belts, Periodic law and radiation 1958 Van Allen table of elements U.S. Date Discoverer Nation. 1869 Mendeleyev Russian Vitamin A 1913 Nation. Penetary motion, laws McCollum, Davis. U.S. Date Discoverer 1914 Russian 1609 Paviov Kepler German Vitamin B 1916 McCollum. Berthelot French Plutonium fission U.S. Acetylene gas 1862 Conditioned reflex Kendall U.S. 1940 Kennedy, Wahl. Vitamin C 1912 1936 Holst, Froelich Norwegian 1927 Evans, Long U.S. Cortisone 1946 Sarett U.S. Seaborg, Segre U.S. Vitamin D 1922 McCollum. ACTH Polymyxin. U.S. 1901 Takamine Japanese Cortisone, synthesis 1947 Ainsworth 1910 Gockel Swiss English Adrenalin Positron, Wassermann test Cosmic rays 1932 Anderson 1906 Wassermann Aluminum, electro- 1905 Frank, Caro. German U.S. German 1886 Hall U.S. Cyanamide Photon 1930 Lawrence U.S. 1919 Rutherford N. Zealand Xerography 1938 Carlson lytic process. Aluminum, isolated 1825 Oersted Danish Phychoanalysis U.S. Cyclotron 1900 Freud Austrian X-ray 1895 1842 Long U.S. Roentgen German Anesthesia, ether Anesthesia, local. 1885 Koller Austrian DDT 1874 Zeidler German Anesthesia, spinal 1898 Bier German (not applied as insecticide until 1939) 1856 Perkin English Deuterium 1932 Urey, Brickwedde, Aniline dye 1885 Pasteur French Murphy U.S. Anti-rabies 1867 Lister English 1951 Crick English DNA (structure) Chemical Elements, Atomic Weights, Discoverers Antiseptic surgery 1891 Von Behring German Watson U.S. Antitoxin, diphtheria 1897 Bayer German Wilkins English Argyrol Arsphenamine 1910 Ehrlich German Aspirin 1889 Dresser German dwough the courtesy of the International Union of Pure and Applied Chemistry and Butterworth Scientific Publications. Atomic weights. based on the exact number 12 as the assigned atomic mass of the principal isotope of carbon. carbon 12. are provided Mietzsch, et al German Electric resistance Atabrine. 1827 Ohm. German 1913 Moseley English (law) Atomic numbers 1888 Hertz German English le better known isotope (**) is given. For the radioactive elements, with the exception of uranium and thorium, the mass number of either the isotope of longest half-life (*) or Atomic theory 1803 Dalton Electric waves 1947 Libby U.S. Electrolysis 1852 Faraday English Atomic time clock 1819 Oersted Danish Electromagnetism Atom-smashing 1897 Thomson, J. English Atomic Atomic 1919 English Electron Chemical element Year Rutherford Electron diffraction 1936 Thomson, G. English Symbol number theory weight discov. U.S. Actinium Discoverer Davisson Ac 89. 227* Muminum 1899 Debierne Bacitracin 1945 Johnson, et al. U.S. AI Electroshock treat- 13. Dutch 1938 Cerletti, Bini Americium 26.9815 Italian 1825 Oersted Am 95. Bacteria (described) 1676 Leeuwenhoek ment German 1952 McGuire. U.S. 243* 1903 Fischer Erythromycin Antimony. 1944 Sb Seaborg, et al. 51 Barbital 121.75 1798 Evolution, natural Argon. 1450 Tennant English Valentine Bleaching powder English English Ar 18. Blood, circulation. 1628 Harvey 1858 Darwin 39.948 Isenic 1894 selection. As 33. Rayleigh, Ramsay 1885 French 74.9216 Bordeaux mixture Millardet statine 13th C. At 1924 Edgar Kramer U.S. 85. Albertus Magnus 210* Italian islum 1940 Bromine from sea Galileo Ba Corson, et al. Falling bodies, law 1590 56. 137.34 Burketium 1808 Bk Davy 97. 249** Baryllium. 1949 Be 4. Thompson, Ghiorso, Seaborg Calcium carbide 1888 Wilson U.S. Gases, law of 9.0122. smuth 1798 English 1808 French Bi Vauquelin Calculus 1670 Newton Gay-Lussac 83. combining volumes 208.980 oron. 15th c. Camphor synthetic 1896 Haller French 1619 French B Valentine Geometry, analytic Descartes. 5. 10.811a. French nine 1808 1804 Appert. Gold (cyanide process MacArthur, Br Gay-Lussac, Thenard 35. Canning (food) 79.904b Comium 1826 Balard Tanner U.S. 1887 Forest British Carbomycin 1952 for extraction) Cd 48, 112.40 1925 Fisher German Gravitation, law 1687 Newton English alcium 1817 Ca Stromeyer Carbon oxides 20. 40.08 Chloamphenicol 1947 Burkholder allomium 1808 U.S. Cf Davy 98. 251* Chiorine 1774 Scheele Swedish 1948 Carbon 1950 British C Thompson, et al. S. U.S. Holograph Gabor 6. 12.01115a Chioroform 1831 inium B.C. Guthrie, Ce Unknown U.S. Human heart 58. 140.12 1803 Chlortetracycline. 1948 Duggen 1967 Barnard S. African Klaproth transplant issum. Cs 55 132.905 Classification of Chiorine 1860 CI Bunsen, Kirchhoff 17. plants and animals 1735 Linnaeus Swedish 35.453b Dromium 1774 Scheele Indigo, synthesis of 1880 Baeyer German Cr 24. 51.996b 1860 Henry abalt 1797 Cocaine Niermann German 1830 U.S. Co Vauquelin Induction, electric 27 Combustion explained. 1777 French 58.9332 Lavoisier moper 1735 Brandt 29. 63.546b B.C. Science & Technology - Critical Technologies; Inventions Science & Technology Inventions 201 200 Invention Date Inventor Nation. Invention Date Inventor Nation. Critical Technologies Lamp, flourescent 1938 General Electric, Plow, cast iron 1785 Ransome English Westinghouse U.S. Plow, disc. integrated manufacturing; intelligent processing equip- 1896 Hardy U.S. In April 1991, the White House listed 22 areas of Lamp, incandescent 1879 Edison U.S. Pneumatic hammer 1890 King U.S. technological development that should be treated as ment; micro-and nano-fabrication; systems-manage- Lamp, incand., frosted. 1924 Pipkin U.S. Powder, smokeless 1884 Vieille French "critical to the national prosperity and to national se- ment; software; microelectronics and optoelectronics; Lamp, incand., gas. 1913 Langmuir U.S. Printing press, rotary 1845 Hoe U.S. high-performance computing/networking; high-defini- Lamp, Klieg. 1911 Kliegl, A.&J. U.S. Printing press, web 1865 Bullock U.S. curity." The 22 areas of technology are: surface trans- Lamp, mercury vapor 1912 Hewitt U.S. Propeller, screw 1804 Stevens U.S. portation; environment; materials processing; elec- tion imaging and displays; sensors and signal process- Lamp, miner's safety 1816 Davy English Propeller, screw 1837 tronic and photomic materials; ceramics; composites; ing; data storage; computer simulation; applied molec- Ericsson. Swedish Lamp, neon. 1909 Claude French Pulsars 1967 Bell ular biology; medical; aeronautics; and energy. Lathe, turret English 1845 Fitch U.S. high-performance metals and alloys; flexible computer Punch card accounting 1889 Hollerith Launderette U.S. 1934 Cantrell U.S. Lens, achromatic 1758 Dollond English Lens, fused bifocal 1908 Borsch Quasars U.S. 1963 Schmidt U.S. Leydenjar (condenser) 1745 von Kleist German Inventions and Discoveries Lightning rod 1752 Franklin Radar U.S. 1940 Watson-Watt Scottish Linoleum 1860 Walton Radio amplifier English 1906 De Forest U.S. Unotype Radio beacon 1884 Mergenthaler 1928 Donovan U.S. Nation. U.S. Date Inventor Nation. Invention Date Inventor Dutch Lock, cylinder 1851 Yale Radio crystal oscillator 1918 Invention French Electrocardiograph 1903 Einthoven U.S. Nicolson U.S. Adding machine 1642 Pascal German Locomotive, electric 1851 Vail Radio receiver, cascade 1929 Berger U.S. tuning 1913 1885 Burroughs U.S. Electroencephalograph Alexanderson, U.S. Adding machine Norwegian Electromagnet 1824 Sturgeon English Locomotive, exp'mtl 1802 Trevithick English Aerosol spray 1926 Rotheim 1944 Deutsch, Locamotive, exp'mtl Radio receiver, 1812 Fenton et al. 1868 Westinghouse U.S. Electron spectrometer English U.S. Locamotive. exp'mtl 1813 Hedley heterodyne 1913 Fessenden Air brake U.S. Elliott, Evans English U.S. Air conditioning 1911 Carrier German Electron tube multigrid 1913 U.S. Locomotive, exp'mti Radio transmitter triode Langmuir 1814 Stephenson Guericke English Air pump 1654 1805 Brugnatelli Italian Locomotive practical modulation 1829 Sperry. Stephenson. 1914 Alexanderson English U.S. Airplane, automatic pilot 1912 U.S. Electroplating. Radio tube-diode 1905 Langley U.S. Electrostatic Locomotive, 1st U.S. 1830 Airplane, experimental 1896 U.S. Cooper, P. U.S. Fleming English 1929 Van de Graaff Loom, power Radio tube oscillator 1939 Ohain German generator U.S. 1785 Otis Cartwright 1915 De Forest Airplane jet engine. English U.S. Elevator brake 1852 Loudspeaker, dynamic Radio tube triode U.S. 1906 Rice, Kellogg De Forest U.S. Airplane with motor 1903 Wright bros. Elevator, push button 1922 Larson U.S. 1924 U.S. U.S. Radio, signals 1895 Airplane, hydro. Curtiss Marconi 1911 Italian Airship. 1852 Giffard French Engine, automatic transmis- sion 1910 Fottinger German Machine gun 1861 Gatling U.S. Radio, magnetic Airship, rigid dirigible. 1900 Zeppelin German detector 1902 Marconi Engine, coal-gas 4-cycle 1876 Otto German Machine gun, improved 1872 Hotchkiss U.S. Italian 1919 Thomson U.S. Arc welder Machine gun (Maxim) 1883 Radio FM 2-path 1933 de la Clerva Maxim, H.S.U.S., Eng. Armstrong U.S. 1920 Spanish Engine, compression Autogyro ignition 1883 Daimler German Magnet, electro 1828 Rayon 1883 Swan Henry U.S. English Automobile, differ- 1885 Benz. German Engine, electric ignition 1883 Benz. German Mantie, gas 1885 Razor, electric Weisbach 1917 Schick. Austrian U.S. ential gear 1892 Morrison U.S. Engine, gas, compound 1926 Eickemeyer U.S. U.S. Mason jar 1858 Razor, safety 1895 Mason, J. Gillette Automobile, electric Brayton, Geo. U.S. U.S. Austrian Engine, gasoline 1872 Reaper 1889 Daimler German Match, Iriction 1827 1834 John Walker McCormick Automobile, exp'mti 1864 Marcus English U.S. Automobile, gasoline 1889 Daimler German Engine, gasoline 1705 Newcomen English Mercarized textiles 1843 Record, cylinder 1887 Mercer, J. Bell, Tainter. Engine, steam, piston English U.S. Record, disc 1887 Berliner U.S. Automobile, gasoline 1892 Duryea U.S. Engine, steam, piston 1769 Watt Scottish Meter, induction 1888 Shallenberg U.S. Automobile magneto 1897 Bosch German Talbot U.S. Metronome 1816 Record. long playing. 1947 U.S. Engraving, half-tone 1852 Malezel German Goldmark U.S. Automobile muffler Maxim, H.P. Micrometer 1636 Record, wax cylinder 1888 Edison. U.S. Automobile self-starter Kettering U.S. Gascoigne 1911 English Microphone 1877 Berliner U.S. Refrigerants, low-boiling Midgely and 1839 Babbitt U.S. Microscope, compound 1590 Janssen fluorine compound1930 Dutch co-workers U.S. Babbitt metal 1907 Baekeland Beig., U.S. 1938 Owens-Corning U.S. Microscope, electronic 1931 Refrigerator car 1868 Knoll, Ruska David German U.S. Bakelite Fiberglass 1783 Montgolfier French Fiber optics 1955 Kapany English Microscope, field ion. 1951 Mueller Resin, synthetic 1931 Hill. Balloon German English Barometer 1643 Torricelli. Italian Filament, tungsten 1913 Coolidge U.S. Monitor, warship Richter scale 1861 Ericsson 1935 U.S. U.S. Richter U.S. Rifle, repeating Spencer. Bicycle, modern 1885 Starley English Flanged rail. 1831 Stevens Bifocal lens 1780 Franklin U.S. Flatiron, electric 1882 Seely U.S. Monotype 1887 Lanston U.S. 1860 U.S. U.S. Motor, AC. 1892 Tesla Rocket engine 1926 Block signals, railway U.S. U.S. Goddard U.S. 1867 Hall Food, frozen 1924 Birdseye Rubber, vulcanized 1839 Goodyear Bomb, depth Tait U.S. German Motor, DC 1916 1858 Siemens 1837 Davenport U.S. U.S. Furnace (for steel) Bottle machine 1895 Owens U.S. Motor, induction 1887 Tesla U.S. 1829 Braille French Motorcycle 1885 Daimler German Braille printing Saw, band 1808 Movie machine Newberry English 1855 Bunsen German 1894 Jenkins Burner, gas U.S. Saw, circular 1777 Miller English Galvanometer 1820 Sweigger German Movie, panoramic English 1952 Waller U.S. Searchlight, arc 1915 Sperry. U.S. Calculating machine 1833 Babbage 1922 Hull U.S. Movie, talking. 1927 Warner Bros. Gas discharge tube U.S. Sewing machine 1846 Howe U.S. Camera-see also Photography 1792 Murdoch Scottish Mower, lawn Camera, Kodak 1888 Eastman, Gas lighting 1831 Budding, Shoe-sewing machine 1860 McKay U.S. Walker Gas mantle 1885 Weisbach Austrian U.S. Ferrabee English Shrapnel shell 1784 Gasoline (lead ethyl) Midgley U.S. Shrapnel Mowing machine English 1922 1822 Bailey U.S. Camera, Polaroid Land 1948 Land. U.S. U.S. Gasoline, cracked 1913 Burton U.S. Shuttle, flying. 1733 Kay English Car coupler. 1873 Janney 1893 Gasoline, high octane 1930 Ipatieff. Russian Sleeping-car 1865 Pullman U.S. Maybach German Neoprene 1930 German Carothers Carburetor, gasoline. U.S. Slide rule 1620 Oughtred English U.S. Geiger counter 1913 Geiger Card time recorder 1894 Cooper French Nylon synthetic 1930 Benedictus Carothers U.S. 1909 Soap, hardwater Glass, laminated safety 1928 Bertsch German Carding machine 1797 Whittemore U.S. Bissell U.S. Glider 1853 Cayley English Nyion 1937 Du Pont lab U.S. Spectroscope 1859 Kirchoff, Carpet sweeper 1876 Dutch Gun, breechloader 1811 Thornton U.S. Bunsen Cassette, audio Philips Co. German 1963 Cassette, videotape 1969 Sony Japanese Gun, Browning 1897 Browning U.S. Oil cracking furnace 1891 Gavrilov Russian Spectroscope (mass) 1918 Dempster U.S. 1875 Hotchkiss U.S. DI filled power cable 1921 Emanueli Italian Spinning jenny 1767 Cash register. 1879 Ritty U.S. Gun, magazine Hargreaves. Gun, silencer 1908 Maxim, H.P. U.S. Oleomargarine English Cathode ray oscilloscope German 1869 1897 Braun Mege-Mouries French German Spinning mule 1779 Schoenbein. Crompton. 1878 Crookes. English Guncotton 1847 Ophthalmoscope English 1851 Heimholtz. German Cathode ray tube Steamboat, exp'mtl 1778 Jouffroy Gyrocompass 1911 Sperry U.S. French CAT scan (computerized English Gyroscope 1852 Foucault French Steamboat, exp'mtl 1785 Fitch U.S. tomography) 1973 Hounsfield Paper machine 1809 Dickinson U.S. Steamboat, exp'mtl 1787 Rumsey U.S. Cellophane 1908 Brandenberger Swiss Parachute 1785 Blanchard French Steamboat, exp'mtl 1788 Miller Scottish Celluloid 1870 Hyatt U.S. Pen, balipoint. 1838 Biro Hungarian English Steamboat, exp'mtl 1803 Fulton U.S. Cement, Portland 1824 Aspdin. Pen, fountain 1884 Waterman 1761 Harrison. English U.S. Steamboat, exp'mtl 1804 Stevens U.S. Chronometer 1818 Lane U.S. Pen, steel. 1780 Harrison. English Steamboat, practical Circuit breaker 1925 Hilliard U.S. Harvester-thresher 1982 U.S. 1802 Jarvik Symington Scottish 1959 Heart, artificial Pendulum. Kilby, Noyce, 1583 Galileo Italian Circuit, integrated Helicopter. 1939 U.S. Steamboat, practical 1807 Fulton Sikorsky U.S. Texas Instr U.S Percussion cap. 1807 Forsythe Scottish Steam car 1770 Cugnot Hydrometer 1768 Baume French French 1657 Huygens Dutch Phonograph 1677 Edison. Clock, pendulum U.S. Steam turbine 1884 Parsons Photo, color English Coaxial cable system 1929 Affel, Espen- 1892 Ives U.S. Steel (converter) 1856 Bessemer sched U.S. Photo film, celluloid English 1893 Reichenbach U.S. Steel alloy 1891 Austrian Harvey U.S. Coke oven 1893 Hoffman Photo him, transparent 1884 Eastman, Ice-making machine U.S. Steel alloy. high-speed 1901 Compressed air rock 1851 Gorrie Taylor, White U.S. Goodwin drill U.S. U.S. 1871 ingersoll. Iron lung 1928 Drinker, Slaw U.S. Steel, electric. 1900 Heroult French Photoelectric cell 1895 Elster German Steel, manganese 1884 Hadfield Comptometer 1887 Felt U.S. Photographic paper English 1835 Talbot U.S. Computer, automatic Steel, stainless 1916 Brearley. Aiken et al. Photography English 1944 U.S. 1835 Talbot sequence English Stereoscope 1838 Wheatstone 1960 Digital Corp. Photography English Computer, mini. U.S. 1835 Daguerre French Stethoscope 1819 Laennec French Condenser micro- Kaleidoscope 1817 Brewster Scottish Photography 1816 Niepce French Stethoscope, binaural 1840 Cammann phone (telephone) 1916 Wente U.S. Kinetoscope 1889 U.S. U.S. Edison. Photophone 1880 Bell U.S.-Scot. Stock ticker. Contraceptive, oral Pinçus, Rock U.S. 1870 Edison. U.S. 1954 Phototelegraphy 1925 Bell Labs U.S. Corn, hybrid 1917 Jones U.S. Storage battery, recharge- Piano 1709 Cristofori Cotton gin. U.S. Italian able 1793 Whitney 1859 Plante French Swedish Piano, player 1863 Fourneaux French Cream separator 1878 DeLaval Lacquer, nitrocellulose U.S. Stove, electric 1896 1921 Flaherty Hadaway U.S. Pin, safety 1849 Hunt Cultivator, disd. 1878 Mallon U.S. U.S. German Lamp, arc. 1847 State English Submarine 1891 Holland U.S. 1878 Nitze. Pistol (revolver) 1838 Coll U.S. Cystoscope. Submarine, even keel (continued) 1894 Lake U.S. 106 Inventions and Scientific Discoveries Year Invention or Achievement Inventor/Origin Th Tunnel diode Sony, Japan, based on work by Leo Esaki Integrated circuit Jack S. Kilby, Texas Instruments, U.S. R Microwave radio system Pacific Great Eastern Railway between Vancouver and Dawson Creek-Fort St. John, British Columbia, Canada 1960 Nuclear-powered ships USS Enterprise Argon ion laser D. R. Herriott. A. Javan, and W.R. A Bennett, Bell Laboratories, U.S. Vertical takeoff and lift aircraft Frank Taylor and team at Short Brothers & Harland, Northern Ireland York 1 Weather satellite NASA, U.S. best R 1961 Manned spaceflight Vostok I, U.S.S.R. Stereophonic radio broadcast Zenith and General Electric librarie Companies, U.S. you 1962 Minicomputer Digital Corp., U.S. of per Robotics Rand Corp. and IBM. U.S. X-ray sources in the constellations Riccardo Giacconi discove 1963 Cassette tapes Philips Co., The Netherlands symbols 1964 BASIC computer language Thomas E. Kurtz and John G. Kemeny Organiz Acrylic paint Reeves Ltd., England Carbon fiber RAF Farnborough, England offering Home-use transistor videotape Sony, Japan fun, this recorder 1965 fsideba Word processor IBM. U.S. 1966 Integrated radio circuit Sony, Japan Ests that Noise reduction system Ray M. Dolby accessible 1967 Bubble memory prototype A. H. Bobeck and team at Bell Telephone Laboratories. U.S. Amanac,1 1968 Pulsars Jocelyn Bell this is the Holographic storage technique Bell Telephone Laboratories, U.S. thick ans 1969 Moon landing U.S. PASCAL computer language Niklaus Wirth ther one- Videotape cassette Sony, Japan d'commo Jumbo jet airliner Joe Sutherland and team at Boeing, U.S. Chen to " 1970 Bar code system Monarch Marking. U.S., and Plessey Telecommunications, England "Tem Computer floppy disk IBM. U.S. "Illustr. Remote-controlled lunar vehicle U.S.S.R. 1971 Earth-orbiting space station U.S.S.R. ents." Liquid crystal display (LCD) Hoffmann-LaRoche. Switzerland cookir Quartz digital watch George Theiss and Willy Crabtree 1972 Video disk Philips Co., The Netherlands anc Video game Noland Bushnel 1973 Computerized tomography (CAT scan) Allan Macleod Cormack and Godfrey N. Hounsfield Earth-orbiting space station U.S. Microcomputer Trong Truong 1974 Nonimpact printing Honeywell, U.S. (con Significant Scientific Discoveries 107 Year Invention or Achievement Inventor/Origin work by Leo 1975 Monoclonal antibodies Cesar Milstein Betamax videotaping system Sony, Japan istruments, Video home system (VHS) Matsushita/JVC, Japan 1976 Mars space probes Railway between NASA's Viking I and Viking II 1977 Neutron bomb son Creek-Fort U.S. military Space shuttle NASA, U.S. umbia, Canada Alkyd paint Winsor & Newton Ltd., England 1978 Test-tube baby an. and W.R. Patrick C. Steptoe and Robert G. Edwards tories, U.S. 1979 Rubik's cube Erno Rubik I at Short 1980 Solar-powered aircraft Northern Paul Macready 1981 Silicon 32-bit chip Hewlett-Packard, U.S. Nuclear magnetic resonance (NMR) Thorn-EMI Research Laboratories and scanner Nottingham University, England 1982 Artificial heart Robert Jarvik ectric Airborne observatory NASA. U.S. 1983 Biopol (biodegradable plastic) ICI Agricultural Division. England Biosensors U.S. Cambridge Life Sciences, England Carbon-fiber aircraft wing Great Britain 512K dynamic access memory chip IBM, U.S. erlands 1984 Compact disk player John G. Sony and Fujitsu Companies, Japan, and Philips Co., The Netherlands Megabit computer chip IBM, U.S. 1985 CD-ROM (compact-disk read-only ngland Hitachi, Japan memory) Image digitizer Optronics, England Polymer electric conducter Terje Skotheim and team, Brookhaven National Laboratory, U.S. Soft bifocal contact lens Sofsite Contact Lens Laboratory, U.S. 1986 Uranus moons photographs im at Bell National Aeronautics and Space ories, U.S. Administration. U.S. Synthetic skin G. Gregory Gallico, III 1988 Patented animal life ratories, U.S. Philip Leder. Timothy Stewart eam at Boeing, Significant Scientific Discoveries .S., and Plessey ns, England Year Discovery Discoverer/Origin B.C. C. 12,000 Fire Unknown Switzerland C. 10,000 Zero Villy Crabtree Hindu priests C. 1300 32-letter alphabet herlands Ugarit, Syria C. 1100 Phoenician alphabet (22 letters) A.D. C. 80 Magnetism China ack and Godfrey 200 Blood circulation Galen 220 Ellipse and hyperbola Appollonius 520 Decimal number system Aryabhata and Varamihara 1287 Nitric acid Raymond Lully 1538 Optic nerve Constanzo Vardio PAGE 1 The Washington Times, July 6, 1992 Who's for it? People like Starr Parker, a California small business entrepreneur who has been promoting school choice in her black community. "Polls show over 70 percent of minorities support school choice," she told the Wall Street Journal. "The rich have choice now. When I was on welfare, there was no way I could put my child in school. It's time we stop condemning the poor to a monopoly education system. " Who's opposed to it? Elitist liberals like Sen. Ted Kennedy, whose children attended private schools. And the teachers unions who oppose school choice because they know that the competition that will flow from choice programs will crack their entrenched monopoly over the whole system. Clearly, the deepening social and economic problems in our inner cities and elsewhere have a lot to do with a decaying educational system that is hurting much of our nation. Take, for example, the Chicago public school system where only 19 public high schools out of 66 graduate more than 50 percent of their students; and where the situation is 50 bad that 46 percent of the city's public school teachers now send their own kids to private schools. Contrast that abysmal environment with the city's racially representative TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS Services of Mead Data Central, Inc. Recyclable uh THE WHITE house WASHINGTON House ownership 40% own home (1991) 39 9 female students in inst. of (1991) higher learning all are from Stat. yobook in Bonn I Dept. of State Relss Dening [DEMMING] DESK OFFICER 647-3152 Desk Officer American Embassy Japan - Duty Officer Miss Elizabeth Com Broskin 1.10 * Countries actually resession- cound be strengthent by mentioning uk/ Canada are in muchword theye unemployment in Euroyn in 10% A copy of a recent (June 92) Urban Inst. report I entitled: "Is U.S. Income Inequality Really Growing." NSIA INTERNATIONAL STATS 301 530' 1548 / (Candian Endiassy) Guy St. Jacques Durght Holloway, he help cant Dr. Banbara her but Bryant Barbara Event Bryant Dir- OF CENSUS BURZAN Din of Census CAN 202/479-0398 I I Duight said you spoke to Tom Collamore ULI NITCHZE GERMAN EMBASSY 1991 STATISTICAL YEARSBOOK FROM DESK IN BONNE. 8 their own homes, as compared with 61% in Japan and 39% in Germany. 40% 60.1%) Ran confirmal Nelson the -hanachut 0M. Cooperation d ecom. all 1990 56 5 The U.S. sends or of its children 54 on to higher 1986 figs. AGES CENSUS 18-24 OECD CENROUMENT ) education, second only to Canada, and well A above the 32% 38 rate, in Germany and 30% in Japan. 25 greenink in this draft is And 51% of these U.S. students are women, as desk 1986 study coudt right of 11 1992 compared with 38% in Japan and 26% in Germany. Mumbers census book - can't Census break down by age or sea stats. from 1991 statushin hbs. us 1991 blue cover Barbara 111 thecking Everyth 5.1% of the pop. is in for yr. 1985 Bryant, Break V 1.9 p.840 Buven 1 Census Japen NCES) dir of census 2.9 THE Girm WHITE HOUSE oltice-202- office 202- 1 A 75.4 FACTS FOR JB 357-6828 1to 1 12.6 1 Statist 61% OF JAPANESE HOUSEHOLDS OWN HOMES Emerson Elliott 1 to 9.1 39 % OF GERMAN HOUSEHOLDS OWN HOMES commissioner (1990# N NATIONAL Nat'l 66% OF US HOUSE HOLDS OWN ITOMES K ALREADY CENER FOR CHICKED) ED. 1 to 156 E (1989: CANADA SENDS x9 OF ITS CHILDREN ON TO HIGHER EDUCATION, OF THAT ? ARE FEMALE ito 28.0 (1989 GERMANY SENDS -: 11 x % ARE FEMALE JAPAN SENDS ? 11 % ARE FEMALE 703-525- 1907 favorite groups, the facts demonstrate that the Government is already committed to sensible investment in the future of our people: PAGE 2 1ST STORY of Level 1 printed in FULL format. Copyright 1991 The Time Inc. Magazine Company Money October, 1991 SECTION: SPECIAL REPORT; Pg. 86 LENGTH: 3537 words HEADLINE: WHY WE STILL LIVE BEST IN THE USA BYLINE: by Denise M. Topolnicki; Reporter associate: Mary Granfield BODY: Before we retreated from Vietnam, suffered through the 1970s oil shock and got used to walking past homeless people on our city streets, John Wayne reigned as the archetypal American -- riding high in the saddle, secure that his homeland was first among nations and confident that it would stay that way forever. But nowadays, even after the triumph of Operation Desert Storm, the personification of America often seems less like the Duke and more like Woody Allen -- a self-doubting neurotic, fretful about America's place in the world and increasingly pessimistic about our children's chances of living better than we do today. The findings of poll after confirm that gnawing sense of insecurity. For example, a nationwide survey of 300 MONEY subscribers conducted last April by the Gallup Organization disclosed this: while 74% of the respondents felt that America's standard of living was still pre-eminent, a full 16% said they thought the U.S. would tumble from the top within 10 years; another 17% said they weren't sure whether we could retain our claim to No. 1. When the questioning turned to which nation was likeliest to replace us at the pinnacle, Japan was cited by 77%, followed by Germany (63%). (The survey's margin of error was plus or minus six percentage points.) Those concerns often seem justified. Hardly a week passes without new evidence that other people live better than we do. As recently as July, the Council on Competitiveness, a nonprofit organization of 150 U.S. chief executives, reported that America's standard of living, measured by the widely used yardstick of per capita gross domestic product, fell slightly in 1990. Per capita GDP also grew more slowly in the U.S. from 1972 through 1990 - up in inflation-adjusted 33% - than it did in six of our main economic rivals, led by Japan (up 80&). That news seems more disturbing than it actually is, however, because per capita GDP tells little about how well a nation's citizens live or how much their income buys. To answer those questions and find out who in the world lives best overall, MONEY reporters spent eight months preparing this 50-page special report. They interviewed more than 200 government officials, scholars and ordinary citizens and traveled some 19,000 miles from New York City to Yokohama, Japan and back. We also constructed a proprietary standard-of-living index with the help of contributing editor Cheryl Russell, a noted demographer and the author of 100 Predictions for the Baby Boom (Plenum, $ 17,95). In designing the index, we consulted national opinion surveys to identify nine critical elements that Americans believe are essential to maintaining a TM TM LEXIS·NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. 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Among them; decent health care and a home your own. Then, using the latest available statistics, we compared the U.S. in each of the nine key areas against 15 industrialized democracies (with at least 5 million residents) that the World Bank and the United Nations consider to have the world's wealthiest economies. (These criteria obviously ruled out the impoverished Soviet Union and China.) For Americans, the results are immensely reassuring. Not only does the U.S. still enjoy the world's highest standard of living, it far outshines its major economic competitors, seventh-rated Japan and eighth-place Germany. Reunited Germany would rank even lower if available statistics reflected former East Germany's distressed living conditions. (For details on our methodology, see page 93.) Admittedly, the MONEY index rests on how Americans define the good life. We make no apologies for that; obviously, cultures with different values might reach other conclusions. The remained of this article examines where the U.S. stands on nine measures of a lofty standard of living, ranked in their of importance to Americans like you. Health care Of the dozens of measures we could have chosen to compare health-care quality, we settled on an average of male and female life expectancy at birth and at age 60 as a reasonable approximation of a nation's overall health. The U.S.' eighth-place finish ties it with Austria, Canada, Denmark and Italy. That standing is perhaps surprisingly high given that an estimated 34 million Americans, or 14% of our population, lack medical insurance. (By contrast, the 15 other countries guarantee virtually cradle-to-grave access to health care.) Our uninsured -- largely the working poor -- are the clear losers in a medical system that ranks as the most high-tech and high-cost in the world. As if further evidence were needed, a study published last January by the Center for Health Policy Studies at Georgetown University found that uninsured patients were 1.2 to 3.2 times more likely to die during a hospital stay than were those with private insurance. WE'RE NO. 1 The U.S. ranks first -- with 820 (or 79%) out of a possible 1,040 points -- on our exclusive index rating the standard of living in 16 wealthy nations. % of Total maxi- score mum United States 820 79 Australia 800 77 Canada 788 76 Finland 754 73 Sweden 748 72 Austria 744 72 Japan 727 70 West Germany 708 68 France 705 68 Switzerland 700 67 Italy 661 64 Netherlands 653 63 LEXIS·NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 4 1991 Time Inc., Money, October, 1991 Denmark 650 63 Belgium 631 61 United Kingdom 598 58 Spain 578 56 Japan, which in 1950 had the lowest life expectancy of the countries WE studied, now tops the list with an average at birth of 78 years and an average at age 60 of 22 years. Remarkably, Japan spends only 6.7% of its GDP on medicine while the U.S. lays out 11.8%. Yet the Japanese visit doctors almost three times as often as we do (13 times a year VS. five). Japan's Ministry of Health and Welfare, in consultation with an advisory body of citizens, insurers and health-care providers, keeps a relatively tight lid on health-care costs by fixing prices that private physicians can charge. As a result, an appendectomy costs only $ 1,413 in Japan, compared with an average of $ 8,350 in New York City. Job opportunities Based on the average annual unemployment rate during the 1980s, the U.S. finished sixth in our index with a 7.2% mark. Best at keeping its people at work was tiny Switzerland (pop. 6.6 million), which posted 0.7% unemployment during the past decade. The Swiss secret: more jobs than native workers. Consequently, a quarter of the 3.6-million-person Swiss labor force is foreign; one in five of those is a so-called frontier worker, who commutes to his job from neighboring countries. When jobs disappear, so do many foreign workers. As for other nations with low unemployment, Sweden owes its 2.2% average rate partly to government- and employer-sponsored retraining programs for laid-off workers. The government also give grants that can total thousands of dollars to workers who relocate to find new jobs. Japan posted its enviable 2.5% unemployment rate in the 1980s in large part because of its robust economy, but also because many young, old or female workers who lose jobs return to their families, don't apply for unemployment compensation and don't even begin to look for work again until employment becomes readily available. WHERE JOBS ARE PLENTIFUL After about of nearly double-digit unemployment in the early 1980s, the U.S. jobless rate settled well below 7% during the latter part of the decade. Unemployment is virtually unknown in prosperous Switzerland. It was endemic in Spain's sluggish economy during the 1980s, however, reaching a high of 21.6% in 1985. % average unemployment 1980 to 1990 Switzerland 0.7 Sweden 2.2 Japan 2.5 Austria 4.3 Finland 4.9 United States 7.2 West Germany 7.3 Australia 7.6 Denmark 9.0 France 9.0 LEXIS:NEXIS® LEXIS·NEXIS® LEXIS:NEXIS® Services of Mead Data Central, Inc. Recyclable Information from Mr. Emerson Elliott, Commissioner, National Center for Education Study 1988 UNESCO [United Nations Educational, Scientific, and Cultural Organization Statistical Yearbook enrollment in institutions of higher education in relation to the population ages 20-24: U.S. 68.1% Canada 62.2% W. Germany 31.8 E. Germany 33.1 Japan 30.1 Germany avg. 32% OECD 1987 Table % of females graduating with a BA U.S. 51.7% Canada 54.0 W. Germany 38.0 Japan 26.0 censon/ Ho 1991 Time Inc., Money, October, 1991 Canada 9.3 Duight Netherlands 9.8 United Kingdom 10.0 Italy 10.2 Belgium 11.9 Spain 18.0 Source: International Labour Office Housing When we examined home ownership rates and dwelling sizes, the U.S. finished third. Our 64% home ownership rate is impressive, but it still places the U.S. below the first-place 69% mark shared by Australia and Finland. In those countries, first-time home buyers and others enjoy numerous generous government subsidies and loan programs that aid affordability. The picture isn't nearly 50 bright in Japan and Germany. The fact that 61% of Japanese households own their homes is remarkable, considering that even cramped quarters that lack central heating cost hundreds of thousands or even millions of dollars (see page 105). The Japanese government has so far managed to prop up the home ownership rate by providing reduced-cost construction loans (now 5.5% to 6.7%) to people who plan to build single-family houses with floor space of 753 to 2,368 square feet. Prospective buyers are also able to amass substantial down payments because many major corporations house young employees in subsidized dormitories or rental apartments. In Germany, where only 39% of all householders are homeowners, the problem is housing availability, particularly in prosperous western cities that are attracting job-seeking settlers from the former East Germany as well as ethnic Germans from economically strapped Poland and the Soviet Union, Indeed, there are 95 households vying for every 100 housing units in the former West Germany; in the U.S., there are only 84 for every 100. To gauge the quality of a nation's housing stock, we compared dwelling sizes by examining the percentages of units with five or more rooms. In general, houses are largest in countries with lots of land, like Canada (72%), Australia (66%) and the U.S. (64%). Space is tightest in the Netherlands, where only 8% of all dwellings have at least five rooms. WHERE THEY OWN THEIR OWN HOMES Owning a home isn't just a part of the American dream. The percentage of households that own their homes tops 50% in 11 of the 16 industrialized countries we studied. The U.S. rate, though lifted by the income tax deduction Americans get on mortgage interest, traits that of Australia and Finland, where the government offers cash subsidies to home buyers and builders. %who own their homes Australia 69 Finland 69 United States 64 Canada 62 Japan 61 Belgium 59 Italy 59 LEXIS:NEXIS® LEXIS-NEXIS® LEXIS®NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 6 1991 Time Inc., Money, October, 1991 Spain 57 Denmark 65 France 61 United Kingdom 51 Austria 48 Netherlands 43 Sweden 39 West Germany 39 Switzerland 30 Source: 1991 Britannica World Data Income and purchasing power Because a prospering middle class is a hallmark of a high overall standard of living, we examined the percentage of total household income that goes to the middle 60% of the population. With the middle class controlling 53% of all income, the U.S. ties with Australia, France and Spain for eleventh place. Austria, Belgium, Denmark and Finland top the list with 56%, Germany, the Netherlands, Sweden and the United Kingdom are close behind at 55%; France and Japan tie with 54%. The disadvantaged are best off in Japan, where the poorest 20% of the population receive 9% of all income. By contrast, the bottom fifth of the population in the U.S., Canada, Denmark and Switzerland get only 5% of all income. Since a fat income doesn't mean much if it doesn't buy much, we also measured purchasing power by calculating the share of total spending that people devote to food and beverages. The less spent on food, the more income left over for luxuries. Americans spend only 19% of their money on sustenance and finish second to the Netherlands (17%), the third biggest producer of pigs, butter and potatoes in the 12-member European Community. Grocery shoppers are considerably more squeezed in fourteenth-place Japan, where citizens devote a steep 26% of their spending to food. Mountainous Japan is poorly suited to agriculture (only 13% of its land is arable), yet it slaps stiff tariffs averaging 12.1% on imported foods to protest its politically powerful farmers. 68% MR. EMERSON ELLIOTT, COMMISSIONER, NCES CANADA us. 62% AEE 20-24 NATIONAL CENTER FOR EDUCATION STATISTICS Upward mobility GERMANY 32% 1988 UNESCO STATISTICAL YEARBOOK JAPAN 30% (INITED NATIONS EDUCATIONAL, STATISTICAL, AND CULTURAL Since a college education is now a prerequisite for financial success in ORGANIZATION) developed countries, we measured the potential for upward mobility by comparing the percentage of 20- to 24-year-olds enrolled in college and other post-secondary schools. The U.S., which send 60% of its kids on to higher education, finishes second to Canada (62%). Germany and Japan weigh in at 32% and 30%, respectively; both of them use tough college entrance examinations to steer all but the most academically gifted even Bart Simpson would he ahle to find a college to admit him. Whether this is good or bad Some Americans contend that admitting Bart-like ne'er-do-i universities down to the level of other countries seconda argue, however, that easy access to education increases t ENROLLMENT EDUCATION students to vocational training. In the U.S., by contrast eventually take learning seriously and flower into productive citizens. Our open system explains, in part, why U.S. students always look 50 dumb on international test. Because foreign students' future earning power frequently depends on how well they do on test, they tend to take them more seriously TM TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 7 1991 Time Inc., Money, October, 1991 than Americans do. At a juku, or cram school, in Yokohama that MONEY's reporters visited one Saturday afternoon, junior high school students were memorizing written description of how to perform gymnastic stunts for the physical education section of entrance, exams that Japanese students must take to get into topflight high schools. We also measured opportunities for women by comparing the percentage of female college students in each countries. Once again, the U.S., shines; our 51% mark ties us with Australia, Finland and Spain for third place behind Canada and France (both 54%). In sharp contrast, Germany and Japan posted scores of 38% and 26%, respectively. Unsurprisingly, German and Japanese women are also less likely than American women to find good jobs. Twenty-nine percent of U.S. working women hold professional, technical, administrative or managerial positions, V. 18% in Germany and a mere 12% in Japan. 1987 TABLE OECD FORGANIZATION OFECONOMIC COOPERATION] AND DEVELOPMENT WHO SENDS THE MOST KIDS TO COLLEGE MR. EMERSON ELLIOTT, COMM Canada and the U.S. strongly encourage higher education. countries, plus Japan and Australia, restrict college ad rank among the top quarter or third on standard measures achievement. The table shows the percentage of 20- to 2 loway FEMALE EDUCATION universities, two-year community colleges and other post-secondary schools. %enrolled Canada 62 United States 60 Finland 40 France 35 Belgium 33 Netherlands 32 Spain 32 West Germany 32 Austria 31 Denmark 31 Sweden 31 Japan 30 Australia 29 Italy 26 Switzerland 25 United Kingdom 23 Source: World Bank/World Development Reports 1991 Leisure The MONEY subscribers we polled were convinced that the U.S. had become a land of lazy loafers: only 7% of those surveyed thought that the amount of leisure time we enjoy would put us in the bottom third of the nations we studied. But that's where we fall. We spend an average of 39 hours a week at work more than Australians, Canadians, Swedes (38 hours), Austrians, Britons (37), Danes (35) and the Dutch (34). We also tied with Canada and Japan for the dubious distinction of receiving the least vacation time -- 10 days a year on average (not counting national holidays). Even the workaholic Japanese, who toil an average of 47 hours a week, enjoy 14 paid national holidays each year while we get just 10. TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 8 1991 Time Inc., Money, October, 1991 Wheels Although Japan has overtaken the U.S. as the world's most prolific automobile manufacturer, you wouldn't guess it by the country's low rate of car ownership. Japan ranks dead last on our 16-country list, with only 2.4 cars for every 10 of its people. Laws prohibit residents of densely populated areas like Tokyo and its suburbs from buying a car unless they can prove they have a parking space for it. Maintaining a car there is also expensive. Vehicles that are more than three years old must undergo rigorous inspections every two years. Minimum cost of such a checkup in greater Tokyo: $ 1,600. As anyone who navigates rush-hour traffic in an American city probably suspects, we own more cars than anyone else - 5.6 for every 10 people. Germany, which is the world's third biggest car manufacturer, finishes third (4.6). Safety Most quality-of-life factors, such as climate, geography and social life, are highly subjective. But one such indicator isn't debatable: everybody wants to feel safe in his or her own neighborhood. Unfortunately, America's reputation as the world's crime capital is well deserved. Our annual murder rate of 8.4 per 100,000 inhabitants is more than 1.5 times greater than runner-up Canada's 5.5. Out pilferage score is somewhat less embarrassing: with 5,248 thefts per 100,000 inhabitants, we rank sixth, behind Denmark (8,525) and Sweden (7,630), two welfare states renowned for their relative lack of poverty. The Danes and Swedes are as blase about thievery as they reputedly are about sex. Echoing the comments of a Swedish law enforcement official whom MONEY interviewed, Finn Ravnborg, deputy chief constable of the National Commissioner of the Danish Police, explained: "When people use someone else's bicycle or motorcycle briefly, then leave it somewhere, it's not the same as stealing. It's reported as a theft, but we really consider it to be borrowing." The safest industrialized nation by far is Japan, with a murder rate of 1.2 per 100,000 inhabitants and a theft rate of 1,160. In Tokyo, $ 50 earrings lie loose all day on department stores countertops, and strollers leave their briefcases and shopping bags unattended on park benches. In addition to its emphasis on conformity and social harmony, Japan's low crime rate can be traced to its strict control of weapons, which began in the 16th century when dictator Hideyoshi confiscated swords from all but the samurai. In today's Japan, crime is a high-risk occupation: Japanese police arrest suspects in 79% of all robberies. American cops crank only 25% of such cases. As frivolous as it may seem, living well means you can afford a few creature comforts after you've paid for food, shelter and transportation. Since color televisions, once considered costly indulgences, are now commonplace in all affluent nations, we chose VCR-ownership rates as our proxy for luxury. Sixty-two percent of U.S. households own a VCR, which puts us in third place, close behind Canada (65%) and Australia (66%). Japan, the world's biggest manufacturer of VCRs, comes in fifth (55%). One measure of a nation's standard of living that our index doesn't take into account is nevertheless worth noting: the opinion of people who vote with TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 9 1991 Time Inc., Money, October, 1991 their feet. During the 1980s, about 6 million immigrants came to the U.S. That was more than in any decade since the peak years between 1900 and 1910. Like their predecessors (see Editor's Notes on page 4), today's immigrants come because the U.S. promises a better life. Contrary to the fears of some natives, immigrants help raise, not lower, our standard of living by expanding our labor force and consumer markets. Indeed, immigrants even make us more competitive globally. Says Ben Wattenberg, the author of The First Universial Nation (Free Press, $ 22.95): "Korean and Mexican Americans will learn their native languages at home and English at school and grow up to sell IBM products in Korea and Mexico.' By contrast, our much more homogeneous Japanese and European rivals will have a tough time enlarging their work forces or markets unless they can convince their residents to have more kids -- or can discover a way to reverse aging. THEY GET VACATIONS The world's most generous vacation benefits are found largely in Europe. Only the U.S. and the U.K. have no laws mandating minimums vacation days. The list shows the legally required minimum number of vacation days for employees with one year of service (six months in Germany). Days off per year Austria 30 Denmark 30 Sweden 30 Italy 28 France 25 Netherlands 24 Spain 22 (1) United Kingdom 22 Australia 20 Belgium 20 Finland 20 Switzerland 20 West Germany 18 Canada 10 Japan 10 (1) United States 10 (1) Average -- no legal minimum Source: Mewitt Associates; Consulate General of Italy WE GET AROUND Whether it's a U.S-made little dence coupe or the latest luxury import, Americans love their cars. The U.S. has far and away more passenger cars per 000 inhabitants than most major industrialized countries. Japan, the world's leading car manufacturer, trails the list. Cars per 1,000 inhabitants United States 553 Australia 497 West Germany 467 Canada 454 LEXIS:NEXIS® LEXIS-NEXIS® LEXIS:NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 10 1991 Time Inc., Money, October, 1991 Switzerland 419 Italy 482 Sweden 400 France 334 Austria 370 Belgium 349 Netherlands 348 Finland 344 Denmark 321 United Kingdom 316 Spain 283 Japan 241 Source: Organization for Economic Co-operation and Development GRAPHIC: Picture 1, Japan's standard of living doesn't match its economic productivity. OTHAN HOFFMAN/PICTURE PROJECT; Picture 2, Reunited Germany is struggling to rescue its poor eastern portion. GILLES PERESS/MAGNUM; Picture 3, Despite shortcomings, the U.S. is still the best place to live. LEN JENSHELL; Illustrations 1 through 9, no caption, by Guy Billout TM TM LEXIS:NEXIS® LEXIS·NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Recyclable 09-07-92 02:15 PM FROM S B C MINORITY P07 i OR MORE ROOMS, THE COMPARABLE U.S. FIGURE IS 64% FEWER THAN 33% OF THE SWISS OWN THEIR HOMES, vs. 69% IN AUSTRALIA Japan, which in 1950 had the lowest life expectancy of the countries we studied, now tops the list with an average at WHERE JOBS ARE birth of 78 years and an average at age 60 of 22 years. Re- PLENTIFUL markably, Japan spends only 6.7% of its GDP on medicine while the U.S. lays out 11.8%. Yet the Japanese visit doc- After R bout of nearly double-digit tors almost three times as often as we do (13 times a year vs. unemployment In the early 1980s, the five). Japan's Ministry of Health and Welfare, in consulta- U.S. jobless rate settled well below 7% tion with an advisory body of citizens, Insurers and health- during the latter part of the decade. care providers, keeps a relatively tight lid on health-care Unemployment is virtually unknown costs by fixing prices that private physicians can charge. As in prosperous Switserland. It was a result, an appendectomy costs only $1,413 in Japan, com- endomic In Spain's eluggish economy pared with an average of $8,350 in New York City. during the 1980s, however, reaching # high of 21.6% in 1985. Job opportunities ee % average n- Based on the average annual unem- unemployment Jose ployment rate during the 1980s, the 1980 to 1990 In- U.S. finished sixth in our index with a 0.7 dy 7.2% mark. Best at keeping its people d- at work was tiny Switzerland (pop. 6.6 2.2 its million), which posted 0.7% unemploy- ay ment during the past decade. The Swiss 2.5 secret: more jobs than native workers. Consequently, a 4.3 quarter of the 3.6-million-person Swiss labor force is for- eign; one in five of those is a so-called frontier worker, who 4.9 commutes to his job from neighboring countries. When jobs disappear, so do many foreign workers. 7.2 As for other nations with low unemployment, Sweden owes its 2.2% average rate partly to government- and em- 7.3 ployer-sponsored retraining programs for laid-off workers. 7.6 The government also gives grants that can total thousands of dollars to workers who relocate to find new jobs. Japan 3.0 posted its enviable 2.5% unemployment rate in the 1980s in large part because of its robust economy, but also because 9.0 many young, old or female workers who lose jobs return to their families, don't apply for unemployment compensa- 9.3 tion and don't even begin to look for work again until em- 9.8 ployment becomes readily-available. Housing 100 When we examined home ownership 10.2 rates and dwelling sizes, the U.S. finished 11.9 third. Our 64% home ownership rate is impressive, but it still places the U.S. be- 18.0 low the first-place 69% mark shared by Secreen International Labeur Office Australia and Finland. In those coun- tries, first-time home buyers and others In Germany, where only 39% of all householders are enjoy numerous generous government subsidies and loan programs that aid affordability. homeowners, the problem is housing availability, particu- larly in prosperous western cities that are attracting job- AND FINLAND BY LAW, AUSTRIANS, DANES AND SWEDES GET 30 VACATION DAYS PER YEAR; CUSTOMARILY, AMERICANS GET ONLY 10 DAYS The picture isn't nearly so bright in Japan and Germany. The fact that 61% of Japanese households own their homes seeking settlers from the former East Germany as well as ethnic Germans from economically strapped Poland and is remarkable, considering that even cramped quarters that lack central heating cost hundreds of thousands or even the Soviet Union. Indeed, there are 95 households vying for millions of dollars (see page 105). The Japanese govern- every 100 housing units in the former West Germany; in the U.S., there are only 84 for every 100. ment has so far managed to prop up the home ownership rate by providing reduced-cost construction loans (now To gauge the quality of a nation's housing stock, we 5.5% to 6.7%) to people who plan to build single-family compared dwelling sizes by examining the percentages of units with five or more rooms. In general, houses are houses with floor space of 753 to 2,368 square feet. Pro- largest in countries with lots of land, like Canada spective buyers are also able to amass substantial down payments because many major corporations house young (72%), Australia (66%) and the U.S. (64%). Space is employees in subsidized dormitories or rental apartments. tightest in the Netherlands, where only 8% of all dwellings have at least five rooms. Illustrations 09-07-92 02:15 PM FROM S B C MINORITY P08 THE JAPANESE WORK AN AVERAGE OF 47 HOURS A WEEK, Income and purchasing power WHERE THEY OWN Because a prospering middle class is a hallmark of a high over- THEIR OWN HOMES all standard of living, we exam- Owning a home Isn't just a part of the ined the percentage of total American dream. The percentage of household income that goes to households that Own their homes tops the middle 60% of the popula- 50% in 11 of the 16 Industrialized coun- tion. With the middle class con- tries we studied. The U.S. rate, though trolling 53% of all income, the U.S. ties with Austraila. litted by the Income tax deduction France and Spain for eleventh place. Austria. Belgium. Denmark and Finland top the list with 56%. Germany. the traile that of Australia and Finland, SLAVE CARS (5.6 FOR EVERY 10 PEOPLE) THAN ANYONE IN THE WORLD; AMONG THE MATIONS WE STUDIED, THE JAPANESE HAVE THE FEWE the population receive 9% of all income. By contrast. the Grocery shoppers are considerably more squeezed in of their spending to food. Mountainous Japan is poorly suited to agriculture (only 13% of its land is arable). yet it 2EIGHT MOURS MORE THAN AMERICANS UNEMPLOYMENT AVERAGED 10% OR MORE YEAR DURING THE 1980s M Americans get on mortgage Interest, Netherlands, Sweden and the United Kingdom are close where the government offere cash sub. behind at 55%: France and Japan tie with 54%. The disad- sidies to home buyers and builders. vantaged are best off In Japan. where the poorest 20% of % who OMN their homes bottom fifth of the population in the U.S., Canada, Den- mark and Switzerland gets only 5% of all income. Since a 09 fat income doesn't mean much if It doesn't buy much, we also measured purchasing power by calculating the share of 69 total spending that people devote to food and beverages. 64 The less spent on food, the more income left over for luxu- ries. Americans spend only 19% of their money on suste- 6Z nance and finish second to the Netherlands (17%). the third biggest producer of pigs, butter and potatoes in the 61 12-member European Community. 59 fourteenth-place Japan, where citizens devote a steep 26% 59 57 slaps stiff tariffs averaging 12.1% on imported foods to pro- tect its politically powerful farmers. 55 Upward mobility 58 IIIIII Since a college education is now a prereq- 51 uisite for financial success in developed countries. we measured the potential for 48 upward mobility by comparing the percent- age of 20- to 24-year-olds enrolled in col- 43 lege and other post-secondary schools. The 39 U.S., which sends 60% of its kids on to higher education, finishes second to Can- 39 ada (62%). Germany and Japan weigh in at 32% and 30%, respectively; both of them use tough college entrance 30 examinations to steer all but the most academically gifted Borrow 1031 World Date students to vocational training. In the U.S., by contrast. even Bart Simpson would be able to find a college to admit him. Whether this is good or bad is hotly debated. Some descriptions of how to perform gymnastic stunts for the Americans contend that admitting Bart-like ne'er-do- physical education section of entrance exams that Japanese nothings drags our universities down to the level of other students must take to get into topflight high schools. countries' secondary schools. Others argue, however, that We also measured opportunities for women by compar- easy access to education increases the odds that at least ing the percentage of female college students in each court- some Barts will eventually take learning seriously and try. Once again, the U.S. shines: our 51% mark ties us with flower into productive citizens. Australia, Finland and Spain for third place behind Canada Our open system explains, in part, why U.S. students al- and France (both 54%). In sharp contrast. Germany and ways look so dumb on international tests. Because foreign Japan posted scores of 38% and 26%, respectively. Un- students' future earning power frequently depends on how surprisingly, German and Japanese women are also less well they do on tests, they tend to take them more seriously likely than American women to find good jobs. Twenty- than Americans do. At a juku, or cram school, in Yoko- nine percent of U.S. working women hold professional. hama that MONEY'S reporters visited one Saturday after- technical. administrative or managerial positions, VS. 18% noon, junior high school students were memorizing written in Germany and a mere 12% in Japan. 1988 UNESCO - untel mations educational, entral the exalloment of instrutis of highs ed is = to organ. us- - 68.1% of all 20-24 yr. ones Statitustion Canda- 62.2% yearsook year book Woen 31.8 E Gm 33.1 532 Japan 30.1 OECD 1987 TABLE fem. graduates % of BA fem. us 51.7 Can 54.0 WG 38.0 ES Jap 26.0 Ford 09-07-92 02:15 PM FROM S B MINORITY P06 DUTCH DWELLINGS HAVE FIVE OR MOR IN THE USA 75 YEARS ONLY OF ALL DAY'S JAPANESE NEWBORNS CANEXPECT THE LONGEST LIVES, 78 YEARS; U.S. BABIES, That news seems more disturbing than it actually is, how- insurance. (By contrast, the 15 other countries guarantee ever, because per capita GDP tells little about how well a virtually cradle-to-grave access to health care.) Our unin- nation's citizens live or how much their income buys. To an- sured-largely the working poor-are the clear losers in a swer those questions and find out who in the world lives medical system that ranks as the most high-tech and high- best overall, MONEY reporters spent eight months prepar- cost in the world. As if further evidence were needed, a study ing this 50-page special report. They interviewed more than published last January by the Center for Health Policy Stud- 200 government officials, scholars and ordinary citizens ies at Georgetown University found that uninsured patients and traveled some 19,000 miles from New York City to Yo- were 1.2 to 3.2 times more likely to die during a hospital stay kohama, Japan and back. We also constructed a propri- than were those with private insurance. etary standard-of-living index with the help of contributing editor Cheryl Russell, a noted demographer and the author WE'RE NO. 1 of 100 Predictions for the Baby Boom (Plenum, $17.95). The U.S. ranks first-with 820 (or 79%) In designing the index, we consulted national opinion out of a possible 1,040 points-on our surveys to identify nine critical elements that Americans exclusive Indox rating the standard of believe are essential to maintaining a high standard of liv- living In 10 wealthy nations. ing. Among them: decent health care and a home you own. Then, using the latest available statistics, we compared the % of U.S. in each of the nine key areas against 15 industrialized Total maxi- democracies (with at least 5 million residents) that the score mum World Bank and the United Nations consider to have the 820 78 world's wealthiest economies. (These criteria obviously ruled out the impoverished Soviet Union and China.) 800 77 For Americans, the results are immensely reassuring. Not only does the U.S. still enjoy the world's highest stan- 768 75 dard of living. it far outshines its major economic competi- 764 73 tors, seventh-rated Japan and eighth-place Germany. Reunited Germany would rank even lower if available sta- 748 72 tistics reflected former East Germany's distressed living conditions. (For details on our methodology, see page 93.) 744 72 Admittedly, the MONEY index rests on how Americans define the good life. We make no apologies for that; obvi- 727 70 ously, cultures with different values might reach other con- 708 68 clusions. The remainder of this article examines where the U.S. stands on nine measures of a lofty standard of living, 705 $0 ranked in their order of importance to Americans like you. 700 67 Health care Of the dozens of measures we could 801 64 have chosen to compare health-care 653 63 quality, we settled on an average of male and female life expectancy at 650 63 birth and at age 60 as a reasonable approximation of a nation's overall 631 61 health. The U.S.' eighth-place finish ties it with Austria, Canada, Denmark and Italy. That stand- $93 63 ing is perhaps surprisingly high given that an estimated 34 578 56 million Americans, or 14% of our population, lack medical RS MONEY OCTOBER 1891 SETTING THE RECORD STRAIGHT "Facts About the 1980s" U.S. SENATE BUDGET COMMITTEE U.S. Senator Pete Domenici Ranking Republican Member Prepared by Minority Staff July 1992 JB-- This showswhere Zoellick got the fact from. Unfortunately, it lists "sources" rather than "footnotes". It has page #s, but it's kind of a successing gamp matching them up. -Mr Emphasis on Education EDUCATION TRUE OR FALSE: X Continuing federal support of education has been coupled with The President's proposal innovative proposals for education reform. for educational reform, America 2000, is dead in From 1980 to 1991, federal support for the water since Congress education increased 59%, from $34.3 billion has refused to act. - to $54.6 billion. FALSE! Federal support for education extends beyond those amounts, to include post- secondary education loans. While Congress appropriated $100 million last year for implementation of America 2000, The total volume of guaranteed student it was unable to pass authorizing legislation loans grew from $4.6 billion in 1980 to $11.5 for education reform. billion in 1991 an increase of almost 150%. Despite the inability of Congress to pass Federal support for elementary and the Presidents proposal, 43 states and more secondary education increased from $16 than 1,100 communities have, on their own, billion in 1980 to $24.4 billion in 1991, a 53% initiated America 2000 projects, in search of increase over those years. innovative ways of achieving the national education goals adopted by the governors Federal support for education also comes and the President in 1989. indirectly through deductions allowed for state and local taxes-major sources of local State and local projects include offering education funding-on federal income tax parental choice of schools, allowing returns. Federal tax deductions that help pay increased flexibility for teachers and for state funded education are estimated to administrators, retraining teachers to have increased over 36% from 1980 to 1991, incorporate higher academic standards for from $13.3 billion to $18.1 billion. students, and developing new, break-the- mold schools. Also during the 1980s, expenditures per student in public elementary and secondary Examples: schools rose from $2,502 to $5,266-an increase of 110%. Over 86 of Maine's 184 communities have become Maine 2000 communities. The U.S. sends 60% of its children to higher education, second only to Canada in Memphis 2000 has over 800 persons the world, and well above the 32% rate in working to create a "new America school." Germany and 30% in Japan. And 51% of the students are women, providing them more Ohio, Texas, and 12 other states have opportunities than in Japan (38%) and given state commissioners broad authority to Germany (26%). free schools from regulation if they produce results. During the 1980s, reading proficiency, increased dramatically for 17-year old Minnesota has authorized the creation minority students. For Black students, those of deregulated charter schools - a new achieving reading proficiency increased from independent public school. Similar new 6.7% in 1980 to 25.8% in 1988. For Hispanic programs are being worked on in California, students, the rate increased to 24.3% in 1988 Colorado, Connecticut, and Michigan. from only 14.9% in 1980. SOURCES Advisory Commercion on intergovemments Relations, Significant Features of Face/ Federation Volume 2 1991. 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Wonen-OwnedBusiness the New Economic Force 1992 Data Report Congressional Burger Office (Testimony by Director Robert Reachauer), House Committee on Waysand Means, March 4, 1992 National Institute on Drug Aliza INDA), 1991 Household Survey, Congrassional Fussench Service, Environmental Issued: From the 101s2 to the Office of the Attorney General Attacting Financial institution Free Fiscal Year 102nd Congress, - 1991. 1992 Second Quarterly Recort Congractional Research Service, Environmental Protection Line and Tracties: Office of National Drug Control Policy, National Drue Control Street Reference Guide January 1991. Treasury Decement Household income Mobility Durtna the 1980c A Statestics Council of Economic Advisers, Executive Office of the President, Economic Assessment Samec on Tax Return in June 1992 Report of the Prescent Treasury Department Internal Revenue Service, Statistics of Income Cound on Environmental Quality, Environmental Quality, 22nd Annual Report, March 1992 The Urban Institute, Policy State, be us Income Insouality Resilv Growing? June 1992 Department of Commerce, Economics and Statistics Administration, Bureau of the Cansus, Job = Dunne the Late 1980s, Sales P-70, No. 27 The White House, Bush Administration Environmental Accomolishments in Suppon of UNCED, Fact Sheet, June 1, 1992. Department of Commerce, Economics and Statistics Administration, Bureau of the Census, Moner income of Households, Families. and Persons in the U.S. 1990, Series P-8C. 1 174 Department of Education, America 2000, Number 21. Weeker March 30, 1992 Department of - and Human Services, Health Resources and Services Administration, Nation of Appropriations Estimates for Committee on Appropriations, Faces Year 1993 Department of Health and Human Services, National Institutes of Health, National institute of Tabetes and Digestive and Kidney Diseases, Justication of Appropriations Estimates for Committee on App.cortations, Facal Year 1992 Department of Health and Human Services, Public Health Service, Health United States. 1990. Department of Health and Human Services, Social Security Administration, Social Security Susertin, Annual Statistical Supplement 1989. Department of Housing and Urban Development, Fiscal Year 1993 Budget, January 29, 1992 Housing: Building an American Dream HOUSING A During the past twelve years. a variety TRUE OR FALSE: of programs has worked to make homeownership opportunities more "During the 1980s, the affordable and more accessible for all Bush-Reagan Administration Americans. cut housing assistance. # - FALSE! Through refinancing and mortgage rate reductions, American homeowners have been able to reduce their mortgage payments by as much as $1,500 to $2,000 a year. This In 1990, HUD housing assistance was tremendous savings has helped raise provided to 4.4 million lowincome families, homeowner confidence and spending. up from 3.1 million in 1980. This represents a significant 42% increase. The United States has the highest homeownership rate of all major During the 1980s, federal spending for industrialized countries with more than 64% assisted housing increased from $6.3 billion of households owning their own homes. to $15 billion representing an increase of This is higher than the 61% rate in Japan and 138%. There were no budget cuts to housing the 39% rate in Germany. during the 1980s, only substitution of programs to try new approaches such as Between 1980 and 1990, 7.2 million more housing vouchers. families owned their own homes, a 14% HUD has added to the number of increase. households being served at a rate of 80,000 Mortgage rates are now the lowest they to 100,000 a year throughout the 1980s right have been in 19 years, making up to today. homeownership more affordable. President Bush has increased funding to Despite billions of taxpayer dollars devoted help the homeless by 76%, to over $1.1 to low-income housing, some of the worst billion. housing in America is government run. People choose to live on the streets rather The Bush Administration continues to than occupy public housing projects. push for higher funding for its newly created HOPE Homeownership Program. HOPE The Democratic Congress continues to gives lowincome families 8 stake in their fund the same approaches that result in more communities by providing assistance to buy public housing projects being constructed. their public housing units. Ownership is a Nearty 14% of public housing is vacant and stabilizing force in communities and a fundamental building block of prosperity in boarded-up. America. Low-income families need to be The Bush Administration has pushed for part of this opportunity. using the new approach of housing vouchers to provide homeownership opportunities for low-income families. President Bush's most recent budget proposes 7 $1.9 billion increase for housing vouchers - from $758 million to $2.7 billion. This increase would result in nearly 83,000 low-income families receiving housing vouchers. Vouchers are more cost effective than constructing new public housing units, families don't have to wait 7 years for the units to be built, and vouchers allow families more choice. JENN_ 9-8-92 NOON FEC - 202-219-3440 FRED EILAND PRESS OFFICE PAC MONEY & BY ELECTION CYCLE - 1989-90 D. $92.3 millin R. $57.2 millior D. 61.8% R. 38.2% - Have not done this Dr. yet- - 1987-88-0.48.4. M 62% R.$60.8m 1985-86 D-48.9m R $60.9 , m DAC MONEY, oncons. CANDIDATES Now through March 31, 1992 10 D-# 48.6m 0 R-B 24.6m SENT BY:Xerox Telecopier 7021 9- 6-92 1:34PM 201-> 94562464 2 FEDERAL ELECTION STATE COMMISSION Press Office 999 E Street, N.W., Washington, D.C. 20463 AMERICA OF Phone: Local 219-4155 Tall Free 800-424-9530 2022193440 Serenal 215-4155 FOR IMMEDIATE RELEASE: CONTACT: FRED BILAND 703/548-6223 MARCH 5, 1992 SHARON SNYDER SCOTT MOXLEY RECEIPTS RISE $31.8 MILLION FOR '92 CONGRESSIONAL CAMPAIGNS WASHINGTON -- Receipts during 1991 for this year's congressional campaigns increased by $31.8 million compared to the same period in the 1990 election, according to the Federal Election Commission. The FEC found that Senate and House candidates raised $159.9 million and spent $89.5 million in 1991 and entered the election year with cash on hand of $159.7 million. The following table compares non-election year activities for all Senate and House campaigns in the last three cycles: Cycle Receipts Disbursements Cash on Hand 92 $159.9 $89.5 $159.7 90 $128.1 $70.8 $129.1 88 $111.5 $58.6 $108.9 (in millions) As the above table demonstrates, candidates appear to be raising funds earlier. There has been a 25 percent increase in this cycle's non-election year fundraising, however a tise of 15 percent occurred between 1987 and 1989; but by the end of the 89-90 cycle receipts had leveled. Although this does not necessarily mean an increase for the entire cycle, there are indications that fundraising levels will be much higher in the 1992 cycle. Included in those factors pushing this increase are redistricting, two California Senate races and the uncertainty caused by close contests in the last election. In Senate contests, candidates reported raising $77 million ($49 million from individuals; $17.5 million from PACs) and spending $35.7 million in 1991. These campaigns had cash on hand of $62.3 million as of December 31, 1991. Cycla-to-cycle comparisons of Senate races are discouraged because, in part, different seats in different states are up for election each cycle. Receipts in 1991 for House candidates increased $17.3 million, or 26 percent, to $82 million, while spending grew $10.8 million, or 25 percent, to $53 million. House campaigns reported entering the election year with $97.4 million cash on hand. Political action committees (PACs) in 1991 contributed $17.5 million to Senate candidates and $34.9 million to House candidates. -more- 1991 TOTAL: $52.4 million 92 figures out in January AMERICA We leave our ploughs and workshops, our wives *** and children dear, " our manifest destiny is to overspread and With hearts too full for utterance, with but a single possess the whole of the continent which Providenc tear." has given us for the development of the great experi James Sloan Gibbons ment of liberty and federated self-government en- "We Are Coming, Father Abraham" trusted to us." Civil War marching song John Louis O'Sullivan *** New York Morning News "A house divided against itself cannot stand. I be- Dec. 27, 1845 lieve this government cannot endure, permanently *** half slave and half free. I do not expect the Union to "Certainly we sons of the teaspillers [Boston Tea be dissolved-I do not expect the house to fall-but I Party insurgents] are a marvelously patient genera- do expect it will cease to be divided. Either the tion." opponents of slavery will arrest the further spread of Wendell Phillips, orator and reformer it, and place it where the public mind shall rest in the Eulogy of Elijah Lovejoy, belief that it is in course of ultimate extinction; or its abolitionist killed by mob advocates will push it forward, till it shall become 1837 alike lawful in all the states, old as well as new- *** North as well as South." "So long as a slave who is worth a few dollars here Abraham Lincoln fetches 80-100 pounds in America, men and means Speech to state Republican convention, Springfield, will be found to evade even the strictest blockade.' Illinois British naval officer 1858 Quoted by Michael Teague and Zelide Cowan *** American Heritage "The fiery trial through which we pass will light us February, 1969 down, in honor or dishonor, to the latest generation. *** In giving freedom to the slaves, we assure free- "How does it become a man to behave toward this dom to the free-honorable alike in what we give, American government today? I answer, that he can- and what we preserve. We shall nobly save, or not without disgrace be associated with it." meanly lose, the last, best hope of earth." Henry David Thoreau President Abraham Lincoln "Civil Disobedience" Speech to Congress 1849 December, 1862 *** *** "We have one country, one Constitution. one des- "Yet if God wills that it [the Civil War] continue tiny." until all the wealth piled by the bondsman's 250 Daniel Webster, statesman years of unrequited toil shall be sunk, and until every Speech in New York drop of blood drawn with the lash shall be paid by 1837 another drawn by the sword, as was said 3,000 years *** ago, so still it must be said, that the judgments of the "Liberty and union, now and forever, one and insep- Lord are true and righteous altogether." arable." . President Abraham Lincoln Daniel Webster, statesman Inaugural address Speech 1865 Jan. 26, 1830 *** *** "I see no results of this great conflict [Civil War] [On the Civil War]: "Long, too long America, which justify the tremendous sacrifices which we as Traveling roads all even and peaceful you learn'd a nation were required to make. I see only an from joys and prosperity only, enormous waste of life and property, the vindication But now, ah now, to learn from crises of anguish, of right by might, and the substitution of one form of advancing, grappling with direst fate and recoil- injustice for another." ing not Henry Miller Walt Whitman The Air-Conditioned Nightmare "Long, Too Long America" 1945 1865 72 The President's Comprehensive Health Reform Program OF STARE OF IS CANADA THE UNITED THIS PRESITIVE February 6, 1992 2 The President's Comprehensive Health Reform Program The President's Plan builds on a system benefit package. To reduce the rapid growth that provides the world's best health care. of health spending, the plan makes radical The plan provides all Americans access to reforms in the health insurance system and affordable health care coverage through a includes strong incentives for the development transferrable health insurance credit (cer- and expansion of coordinated care systems tificate)-available even to low-income Ameri- cans who do not file tax returns-that can and other efficient arrangements for delivering high quality health care. be applied to the purchase of a basic health Summary Highlights Expanding Access to Health Care (See Health Insurance Networks (HINs)- Chapters 3 and 4) Pooled-Purchasing Power.When it comes Transferrable Health Insurance Credits (cer- to health insurance, small businesses do tificate) and Deductions-Benefitting Approxi- not have many of the advantages of large mately 95 Million Americans- businesses. Large companies can self in- sure and avoid expensive benefit mandates A transferrable health insurance credit and premium taxes. Large firms are sold (certificate) or tax deduction would be coverage similar to that purchased by available to ensure access to affordable small firms, but at much lower prices. A health care coverage for moderate and new way of purchasing insurance, HINs low-income families. About 95 million would enable small firms to purchase low Americans would receive assistance. When cost, high quality health insurance. HINs fully implemented, families with incomes would enable small businesses to buy below the tax filing threshold, approxi- lower priced insurance by reducing admin- mately the poverty line, would receive a istrative costs and by exempting insurance credit of up to $3,750, sufficient to pur- purchased from HINs from excessive State chase basic health benefits. Similarly, in- mandates, anti-managed care laws, and dividuals would receive $1,250 and two- premium taxes. For the first time, groups person families $2,500. A health insurance like the National Federation of Independ- credit (certificate) or deduction (also up to ent Business, National Small Business $3,750 per family) would be available to United, and the U.S. Chamber of Com- individuals, two-person, and larger fami- merce would be able to offer affordable lies with annual incomes up to $50,000, health plans to their members nationwide $65,000 and $80,000, respectively. or join with other groups to increase pur- Market Reform- chasing power in State or local markets. Basic Benefits.-States would be required Insurance Affordability.-In the near to develop a basic health insurance pack- term, premium costs for similar policies age equal to the value of the health insur- sold to firms in a single block of business ance credit. This would enable low-income could vary by no more than 50 percent. families to purchase adequate health care A health risk adjustment across insurers would be phased in-removing premium coverage. disparities and allowing for plan flexibility Insurance Security.-Workers changing within a new insurance market driven by jobs would no longer face concerns about competition on quality and costs. "job lock"-the inability to change jobs for fear of losing access to insurance. Health Containing Health Care Costs (See Chapter insurers would be required to provide cov- 5) erage to all employers requesting it. Cov- Malpractice Reform.-The threat of mal- erage would be guaranteed, renewable, practice litigation prompts physicians to and preexisting condition limits would be order tests and perform procedures, ena- eliminated. bling them to assert that every effort has Principles for Reform: Building on American Strengths 7 Chart 2. PROJECTED SOCIAL SECURITY AND HEALTH ENTITLEMENTS FOR 1990-2030 $ BILLIONS 8,000 7,000 6,000 HEALTH ENTITLEMENTS (MEDICARE/MEDICAID) ASSUMES CONTINUATION OF SPENDING GROWTH RATES 5,000 HEALTH ENTITLEMENTS (MEDICARE/MEDICAID) 4,000 ASSUMES SIGNIFICANT SLOWING OF SPENDING GROWTH 3,000 2,000 1,000 SOCIAL SECURITY 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 FISCAL YEAR Note: Health entitlement projections based on data provided by Health Care Financing Administration, Office of the Actuary, October, 1991. through 1997. By 2025, Medicare is expected percent of poverty (Needleman et al., 1990). to exceed 27 percent of the federal budget. Despite this, most of the massive federal Even if it were possible to sustain health spending on health care goes to the non- spending at nearly 30 cents of every dollar, poor. In 1992, only 21 percent of total it is difficult to imagine who would pay federal health care spending is estimated these enormous costs. Most individuals already to be spent for the poor. Almost 90 percent feel that they are overburdened with health of Medicare spending goes to individuals above the poverty level. care costs. Businesses are spending increasing percentages of wages and other compensation Uninsured Americans receive some health on health care premiums-currently in excess care, either by paying for it out-of-pocket, of 100 percent of after-tax profits. or in the form of "uncompensated" or "charity" Clearly, health care costs must be contained, care (Needleman et al., 1990). "Uncompen- both in public programs and in the private sated" care is not free, in the sense that sector. Neither individuals, business, nor gov- insured individuals must pay higher fees ernment can afford to pay for the currently and thus higher premiums, and hospitals projected growth. receive public (such as Medicare and Medicaid "disproportionate share" payments and non- Inadequate Access Despite Increasing profit tax treatment-now over $15 billion Spending.-Despite this rapid rise in health per year) and private (such as charitable care spending, 13 percent of Americans-34.7 contributions) subsidies to cover the costs. million-are without health care insurance. The uninsured are more likely to receive Most of the uninsured are lower-income health care in hospital emergency rooms, Americans-30 percent of the uninsured have rather than in physicians' offices and clinics incomes below the poverty level, and 32 (NMES, 1987). This form of care can be percent have incomes between 100 and 200 harmful to the individual, who may only 24 The President's Comprehensive Health Reform Program ceives the credit plus or minus an amount by as much as 16 percent through efficiencies related to the individual's age (and possibly of scale, lower administrative costs, and gender). These adjustments mitigate the prob- through pooling of purchasing power. that lem of adverse selection for the basic benefit helps small businesses negotiate better rates packages. with insurers. Amounts received by an insurance company Cleveland's Council of Smaller Enterprises would also be subject to health status adjust- (COSE) operates a successful health insurance ments. On an annual basis, each credit group purchasing program for small firms. recipient would be assigned to a health While COSE has been successful, surprisingly status category. Each health category would little of this type of group purchasing is have a corresponding weight based on expected going on nationwide. The reforms described health care costs defined relative to the in the preceding sections will spur group population average. Each insurer would cal- purchasing by protecting against some of culate an average weight for all credit recipi- the abusive practices that have daunted some ents covered by the insurer. Insurers with local purchasing groups. Additional assistance an average weight greater than the statewide is provided as well to encourage rapid forma- average would receive net transfers from tion of group purchasing arrangements. the pool, while insurers with an average weight less than the statewide average would ERISA Reform/Incentives for Group Pur- be required to make contributions to the chasing.-The federal preemption of State pool. regulation of self-insured health benefit plans under ERISA that benefits virtually all large States would implement pools for credit employers would be extended to small busi- recipients simultaneously with federal imple- nesses that purchase coverage on a group basis mentation of the transferable health tax credit through a Health Insurance Network (HIN). system. Implementation of health risk pools This would protect against (i) State mandated for small group coverage would occur over benefit laws that require firms to provide cer- a five-year period on a phased-in basis, tain costly services, (ii) excessive State health starting in the third year after enactment insurance premium taxes, (iii) and State anti- of the reform proposal. Transition measures, coordinated care laws. These laws typically in- including premium limits, would apply in crease premium costs by 2 to 5 percent. HINs the small group market in the interval. could also still self-insure, but in this case, enhanced insurance State solvency and in- Encouraging Group Purchasing For Small creased Department of Labor standards would Employers: Health Insurance Networks apply to ensure the economic stability of the The President's reform proposal will help plans. reduce insurance costs for small businesses Functions.-HINs could contract with in- by encouraging group purchasing. Group pur- surers to provide coverage to members or could chasing can reduce health insurance costs self-insure subject to enhanced State solvency Table 3-4. Savings From Small Market Reforms: Administrative and Bargaining Effects (Expressed as percent of total premium, by firm size) Firm Size Claims Total Savings <4 15.9 5-9 13.1 10-19 10.9 20-49 8.5 50-99 6.0 25 Expanding Access and Increasing Affordability Through Market Reform regulation (if State solvency standards are in- will simplify marketing and administration sufficient, Department of Labor solvency and sharply reduce costs. standards would operate as a backup oversight Increasing Flexibility for Health Plans system). All federally approved HINs would be required to offer at least one coordinated care States would no longer be allowed to man- option and to use a standard claims form. date benefits that unduly limit flexibility for health plans, thereby increasing health Organization-HINs would be structured care costs and restrict coordinated care. as non-profit voluntary membership organiza- tions with a board of directors elected by the State Mandated Benefits.-Many State membership. HINs would be registered and laws require insurers to cover certain optional qualified, as applicable, by a State agency or or ancillary services. These mandated benefits by the Department of Labor. There would be drive up premium costs up by at least 3 to no limit on the number of HINs that could 5 percent. be established in a given area. HINs could be Provisions that Restrict Coordinated established along the lines of professional soci- Care.-Some State laws impose restrictions eties, industry, or trade associations and would which prevent the development of coordinated be subject to all of the market reforms listed care-and the competitive pressure it imposes in the preceding sections. By buying coverage on fee-for-service providers. Anti-managed care through a HIN, small businesses would be able laws include: to achieve more effective purchasing power in Restrictions on reimbursement rates or se- the market, thereby helping reduce the cost lective contracting: Laws that restrict the of insurance to their employees. ability of a carrier to negotiate reimburse- HINs will provide the mechanism for pooling ment rates with providers or contract se- large numbers of individuals and employees lectively with a limited number of provid- of small firms, an advantage that is now ers. only available to large companies. These Restrictions on differential financial incen- plans have not grown in the past because tives: Laws that limit the financial incen- of State laws. To allow for federal preemption, tives that a health benefit plan may re- plans had to "self insure". Small groups quire a beneficiary to pay when a non- have difficulty raising capital to self insure plan provider is used on a non-emergency risk. This system allows "imputed ERISA basis. exemptions"-small firms can join together without self-insuring, and have insurers carry Restrictions on utilization review: Laws the risk. that (a) prohibit utilization review of any or all treatments and conditions, (b) re- Intrastate and Regional Pooling.-The quire that such review be made by an in- State or Federal government could certify an State physician or by a physician in a par- HIN. For example, Pennsylvania (or the Fed- ticular specialty, (c) require the use of eral government) could certify an HIN of 1,000 specified standards of health care practice small employers who pooled market power to in such reviews, or require the disclosure negotiate with local providers in Philadelphia, of the specific criteria used in such re- or the Federal government could certify a simi- views, or (d) require payment to providers lar HIN for the Philadelphia area (PA, NJ, for the expense of responding to utilization and DE) that would pool market power in the review requests. entire region. Federal/State Relationships Multi State Pooling.-HINs would allow for the first time, multi State pooling of small Most of the reforms described in the preced- firms. Groups like NFIB, National Small Busi- ing section would be implemented by the ness United and The Chamber of Commerce States. Thus, the responsibility for regulating (or any other group) could offer the same basic health insurance would remain primarily with plans to members nationwide. In the past, the States. However, federal legislation would State barriers have prevented such plans. This be amended to provide States with clear September 10, 1992 MEMORANDUM FOR ROBERT ZOELLICK TORIE CLARKE FROM: JENNIFER GROSSMAN JAC CAROL AARHUS CA SUBJECT: CHICAGO PUBLIC SCHOOL TEACHERS INFORMATION AGENDA FOR AMERICAN RENEWAL Regarding the fact that appears in the Agenda for an American Renewal ((46% of public shcool teachers in Chicago send their kids to private schools) ) : It was fact-checked. Here are our sources: Heritage Foundation Report March 21, 1990 (enclosed). The report in turn cites a 1988 Harris poll. An American Enterprise Institute Report by Dennis Doyle He [formerly a Department of Education employee, now a says senior fellow at the Hudson Institute]. His report was we called "Where Public School Teacehrs Send their can Children to School: A Preliminary Analysis." His use information came from a 1986 census study. him A Wall Street Journal editorial. 6/26/92 as asounce A Washington Times editorial by Don Lambro. 7/6/92 PAGE 9 6TH STORY of Level 1 printed in FULL format. Copyright 1990 The Heritage Foundation Heritage Foundation Reports March 21, 1990 SECTION: BACKGROUNDER; NO. 760 LENGTH: 5298 words HEADLINE: A PRIMER ON CHOICE IN EDUCATION: PART I -- HOW CHOICE WORKS SERIES: This study reviews the arguments in favor of choice, its success to date, and the choice options available. Part II will address the legal considerations that should guide policy decisions. BYLINE: Prepared for The Heritage Foundation by Clint Bolick, Director, Landmark Legal Center for Civil Rights, Washington, D.C. BODY: INTRODUCTION Every year, America spends increasing sums on education, yet it seems to be without much noticeable impact on the disastrously low academic achievement of the nation's youngsters. For this reason, a growing consensus is emerging that doubts whether more spending and more tinkering will improve the performance of schools. What will improve it, say increasing numbers of liberals and conservatives, are reforms that give parents the freedom to choose the best schools for their children. This would create competition among schools that would improve the schools and schooling. Last year alone, 23 states considered some form of education-choice proposals; three enacted choice legislation. n1 In fact, there are already an estimated 10,000 schools which students attend as a matter of choice rather than assignment. Reports Fortune magazine: choice in education "is simply the hottest item on the education reform agenda today. n2 n1 Susan Phillips, "Education Choice Emerging Trend?" Family, Law & Democracy Report, July 1989, PP. 1-3. N2 Jaclyn Fierman, "Giving Parents a Choice of Schools," Fortune, December 4, 1989, P. 147. Harlem Success. Choice in education must not be limited to the wealthy or well-off who can afford either to pay for a private school or move to a good school district. Choice is needed most by financially poor parents whose children are trapped in the most inferior schools. When given a choice in schools, as is now available in New York City's Harlem school district, for instance, test scores rise dramatically. Restoring Teaching's Prestige. With widespread public support, different choices schemes have been adopted in the states. Opponents mainly have been the education establishment, fighting to protect its monopoly and job security. Yet educators need not fear choice. Upgraded schooling, rising test scores, and fading illiteracy will raise the prestige of and respect for teachers and principals, restoring to teaching the high status that it enjoyed just a © LEXIS:NEXIS® LEXIS-NEXIS® LEXIS:NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 10 1990 The Heritage Foundation, March 21, 1990 little more than a generation ago. Educators should join with parents and lawmakers in backing such choice options as magnet schools and open enrollment for public schools, and tuition tax credits and vouchers for private schools. Choice plans instituted to date generally have been limited to public schools. While this limits their benefits, it addresses the most pressing needs and makes broader political support possible. Though many choice plans have been adopted only in recent years, where evidence is available it is clear that competition among the schools boosts student performance. Thus state governors increasingly support parental choice, and George Bush has made choice the cornerstone of his education improvement agenda. The choice movement is gaining momentum, and policy makers must continue to introduce choice where it has not been tried and to expand it where it has been successful. HOW CURRENT EDUCATION REFORMS HAVE FAILED More than six years have passed since the report by the National Commission on Excellence in Education pronounced America's public school system a virtual shambles. n3 Yet the United States remains educationally "a nation at risk." n3 National Commission on Excellence in Education, A Nation at Risk (Washington, D.C.: U.S. Government Printing Office, 1983). The Commission's alarming findings triggered a flurry of reform that has included increased public school expenditures, higher academic standards and an emphasis on basic skills -- all with very disappointing results. In fact, last year the U.S. Department of Education reported that Scholastic Aptitude Test (SAT) scores have remained stagnant or declined during the past three years. n4 Only 20 percent of American high school seniors can write a simple letter and only 5 percent can decipher a bus schedule. n5 And the problem is most acute for the urban poor. n6 The evidence is clear -- increased spending and recent education reform measures have failed to improve student performance. n4 Secretary of Education Lauro F. Cavazos, "Restructing American Education Through Choice," speech delivered to the Education Press Association (May 19, 1989), p. 1. n5 Survey findings by the National Assessment of Education Progress. n6 The Right to Choose: Public School Choice and the Future of American Education (New York: Manhattan Institute for Policy Research, 1989), P. B[hereinafter Right to Choose]. How Reforms Picked the Wrong Target The type of reforms undetaken since 1983 actually have little relationship to student performance. A 1989 survey of 187 studies by University of Rochester Economics Department Chairman Eric A. Hanushek, for instance, finds that teacher salaries, per-pupil expenditures, class size, and graduation requirements are unrelated to academic performance. n7 After surveying two decades of educational research, this report concludes: LEXIS·NEXIS® LEXIS·NEXIS® LEXIS®NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 11 1990 The Heritage Foundation, March 21, 1990 Expenditure increases, if undertaken within the current institutional structure, are likely to be dissipated on reduced class size or indiscriminate raises in teacher salaries with a result that growth in costs will almost surely exceed growth i student performance. n7 n7Eric A. Hanushek, "The Impact of Differential Expenditures on School Performance," Educational Researcher, May 1989, P. 47. Rather, such less tangible factors as a clear educational mission, strong leadership, and an atmosphere of professionalism and flexibility have a much more significant impact on student achievement. These critical factors, notes Brooking Institution Senior Fellow John Chubb, "are not things that school reformers can easily influence with policies. n8 n8Right to Choose, PP. 9-10. The lessons of the 1980s are clear: spending more money and fiddling modestly will not improve the performance of American students. What will is competition among schools. This will force the improvements needed to make American students as well educated as their foreign counterparts. There are different methods of introducing competition into the school system, all of which give parents some degree of choice in selecting their children's schools. OPTIONS FOR EXPANDING CHOICE The principal options for promoting educational choice include (either alone or in combination) magnet schools, open enrollment, tuition tax credits, vouchers, and home schooling. The first two options normally confine choice to public schools, while tax credits and vouchers extend the freedom of choice to some or all private schools. Each of these strategies had different attributes and different implications for parents and for schools. Choice within the Public Schools Most current proposals focus on increasing choice and competition among public schools. This empowers the vast majority of parents. Students can improve their opportunities and poor schools will face powerful incentives to improve. Among the most important versions of public school choice: Magnet Schools. The term "magnet" connotes an intrinsic drawing power, and this is precisely how magnet schools are designed. To attract students from outside their normal attendance areas, magnet schools are given the flexibilty to design specialized courses of instruction and experiment with instructional techniques. Used increasingly in recent years as a desegregation device, magnet schools have accomplished what decades of forced busing could not: voluntarily integrated schools offering high-quality educational opportunities. Magnet schools currently comprise about 25 percent of all schools of choice. They are organized around particular themes: specialized academic courses like math, science, foreign languages, or remedial education; performing or creative arts; vocational or technical education; or particular learning methods. One-third of these schools base admission on established criteria, such as superior academic performance; the remainder admit students on a lottery or first-come basis. It is not uncommon for this latter version to result in long lines of parents camped out for days, waiting to register their children. LEXIS:NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 12 1990 The Heritage Foundation, March 21, 1990 Magnet schools exist at the primary or secondary level and the size-attendance zone can vary widely. Examples: Montclair, New Jersey, has turned all its elementary and secondary schools into magnets and has instituted open enrollment throughout the municipality; St. Louis, by contrast, has created a program in which it exchanges students with 23 suburban school districts. n9 n9Educating Our Children: Parents & Schools Together (Washington, D.C.: U.S. Department of Education, 1989), P. 29. Impressive Gains. The academic gains produced by magnet schools 50 far are impressive. The Education Department reports that 80 percent of the magnet schools in fifteen urban districts showed higher achievement scores than their district averages. n10 n10Ibid, P. ii. In designing magnet schools, policy makers should offer real choices to the maximum number of students. If a school district creates a number of magnet schools that prove to be successful, other district schools should be permitted to compete with the magnets by modifying their own curricula or methods. Schools with long waiting lists should be replicated. To the extent they are used as a desegregation device, magnet schools can succeed only if the principal goal is educational quality rather that racial balancing as an end in itself. Open Enrollment. Also called "public school choice," open enrollment is the most comprehensive way to introduce competition within the public educational sector. Minnesota is the pioneer in open enrollment. Launched in 1987, the Minnesota program requires open enrollmment in certain school districts; all the state's school districts will be included by the 1990-1991 school year. Under this policy, students may apply to schools in districts other than the one in which they reside, and the schools must accept them unless space is inadequate or the transfer would upset racial balance. M11 The state's portion of the cost of educating a student "follows" the student to the school of choice. Thus schools that attract more students attract more money. n11This requirement may well be unconstitutional. Landmark Legal Foundation has filed on behalf of black schoolchildren a legal challenge to the Kansas City policy of strict racial quotas in magnet school admissions, under which the school district has turned away black students despite having empty seats in the magnet schools. See the discussion of nondiscrimination in Part II of this paper, forthcoming. The student's family is responsible for transportation to the new district's boundaries, but from there transportation is provided for needy students at public expense. In the four years since open enrollment was first proposed, public opinion in Minnesota has flipped from 2-to-1 opposed to 2-to-1 in favor of the policy. n12 Last year, Arkansas, Iowa, and Nebraska, enacted open-enrollment programs patterned after Minnesota's, and Ohio has launched an open-enrollment pilot program. n13 ® TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable September 10, 1992 MEMORANDUM FOR ROBERT ZOELLICK TORIE CLARKE FROM: JENNIFER GROSSMAN CAROL AARHUS SUBJECT: CHICAGO PUBLIC SCHOOL TEACHERS INFORMATION AGENDA FOR AMERICAN RENEWAL Regarding the fact that appears in the Agenda for an American Renewal ((46% of public shcool teachers in Chicago send their kids to private schools) ) : It was fact-checked. Here are our sources: O Heritage Foundation Report March 21, 1990 (enclosed). The report in turn cites a 1988 Harris poll. O An American Enterprise Institute Report by Dennis Doyle [formerly a Department of Education employee, now a senior fellow at the Hudson Institute]. His report was called "Where Public School Teachers Send their Children to School: A Preliminary Analysis." His information came from a 1986 census study. A Wall Street Journal editorial. O A Washington Times editorial by Don Lambro. 7/6/92 WST WSTedial Date 2533 Torie clake OSEL LIIL ase Sex PAGE 13 1990 The Heritage Foundation, March 21, 1990 n12The Right to Choice, op. cit., P. 19. n13 Phillips, op. cit., P. 3. Denying Choice to Some. Other jurisdictions have opted for "controlled" choice giving parents the opportunity to identify their top two or three school preferences. Adminstrators then assign students to a school aiming at achieving a racial balance, with parent preferences as a secondary concern. Boston instituted controlled choice last year, and although most of the city's students received their first and second choices, a large percentage of students were assigned to a school they had not chosen. After a generation of racial conflict stemming from forced busing, administrators hoped that controlled choice would enable the schools to integrate through voluntary means. n14 However, unlike open enrollment plans, controlled choice does not permit a child to attend the neighborhood school if it would upset the racial balance. This choice option, therfore, denies choice to a large proportion of parents, whose children remain subject to mandatory busing. n14" 'American Agenda," ABC World News Tonight, November 13, 1989. Other examples: ** In 1981, Cambridge, Massachusetts, abolished attendance zones for grades K-8 and allowed parents to select their top three schools, subject to space and desegregation limitations. Following the introduction of choice, the proportion of students electing to attend public schools rose from 74 percent to 82 percent, and student achievement scores have risen steadily. n15 n15Schools of Choice: The Beginnings of a Systemic Change in American Education? U.S. Senate Republican Policy Committee, August 3, 1989, P. 8. ** New York City gives 90,000 of its 940,000 students choices among 250 alternative programs, some on a lottery basis and others subject to screening requirements. ** Colorado's Second Choice Pilot Program offers school dropouts a chance to attend certain out-of-district public schools, vocational/technical schools, or adult educational programs, transferring 85 percent of the per-pupil expenditures from the resident to the nonresident school district. n16 n16Educating Our Children, op. cit., P. 31 and Model IV (Appendix). Magnet schools, open enrollment, and controlled choice have proven effecitve in improving education by injecting an invigorating dose of competition into the public school system. Public school choice can promote program innovation and specialization as well as greater parental involvement and school autonomy. But competition that is limited to the public sector cannot accomplish the full range of benefits available from competition that includes the private sector. Choice and Private Schools A 1988 Harris poll finds that more than half of public school parents would choose private schools for their children had they the means to do SO. n17 Perhaps the greatest indictment of Chicago's failed public school system is that Chicago public school teachers who live in that city are twice as likely as TM TM TM LEXIS·NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 14 1990 The Heritage Foundation, March 21, 1990 all other parents to send their children to private schools -- 46 percent of teacher parents and only 22 percent of other parents. n18 These teachers' own union vehemently opposes extending the same choice to less affluent parents. n17Educational Choice: A Catalyst for School Reform (Chicago: City Club of Chicago, 1989), p.5. n18Herbert J. Walberg, Michael J. Bakalis, Joseph L. Bast, Steven Baer, We Can Rescue Our Children (Chicago: The Heartland Institute, 1988) p.11. While private schools are often beyond the reach of low-income families, they are not exclusively serving the affluent. In fact, according to the Council on American Private Education in 1988, some 41.7 percent of families who send their children to private schools have incomes less than $25,000 a year. Moreover, providing assistance to less-affluent parents to enable them to exercise that choice actually could save taxpayers billions of dollars. The reason: typically it costs less to educate a child in a private school. Each child attending a non-public school saves taxpayers at east $4,000, which is the annual per pupil average cost in public schools. The five million pupils currently in non-public schools save taxpayers over $20 billion a year. Currently there are several strategies and proposals expand choice to private schools. Among them: Tuition Tax Credits. One much-debated option for expending choice is a tax credit for tuition or other educational expenditures incurred in out-of-district public, private non-sectarian, and/or church-affiliated private schools. Tax credit advocates note that because the aid flows directly to parents rather than to educational institutions, credits eliminate the need for burdensome and intrusive regulation of private schools. Critics argue that tax credits do not help those low-income families who pay little or no taxes, but this criticism ignores the fact that tax credits could be refundable to assist low-income families who do not have tax liability. Minnesota allows state income tax deductions for tuition, textbook, and transportation expenses incurred at public or private schools, covering expenses from $650 to $1,000 per student. Iowa has a tax credit of 5 percent of private school tuition up to $1,000 per child. n19 n19Educating Our Children, op. cit., Model V (Appendix) and P. 30. Several New Hampshire towns are exploring the prospects for property tax abatements for school expenses. The towns would give taxpayers a $1,000 credit for every youngster who enrolls in a school (private or public) outside the district. The abatement would also be available to taxpayers who provide scholarships. The abatement program reduces the towns' education costs, while giving parents greater access to education alternatives. Tuition tax credits can expand the option of attending a private school to less affluent families. Private schools have been shown to be particularly successful in educating poor and minority school children. Providing financial assistance in the form of such tax credits, could go a long way toward expanding opportunity for the neediest in society. LEXIS:NEXIS® LEXIS·NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 15 1990 The Heritage Foundation, March 21, 1990 Vouchers. The most comprehensive -- and controversial -- form of education choice is vouchers. In theory, these allow students to "purchase" educational programs at any school with certificates representing their individual share of tax dollars. Public schools would set "tuitions" and would be dependent upon vouchers for their revenues. AS in other choice plans, funding would follow the student, and so schools would have to compete for "customers." Parents could supplement their vouchers if they elected to send their children to a more expensive school. Because vouchers put public and private schools on equal footing, they directly challenge America's public school monopoly. For this reason, many experts believe that vouchers and other methods that include private school choice offer the only real chance for real reform. But also for this reason, a comprehensive voucher proposal would require enormous political courage. Yet the educational benefits seem likely to make it well worth risk. No other policy proposal would do as much to empower parents to control the educational destinies of the children. Home Schooling. A choice\option used by tens of thousands of American families is home schooling. This is formal education conducted in whole or part within the home. For those with the necessary commitment and resources, home schooling can provide wholesome, top-quality educational opportunities. n20 But laws regulating home schooling vary from state to state, and in many places legal obstacles exist to educating children in the home. Limiting regulations of home schooling to ensure minimal educational standards while otherwise allowing maximum liberty will expand education choice in a significant way. n20See Clint Bolick, "The Home Schooling Movement," The Freeman, March 1987, p. 84. THE GROWING CONSENSUS FOR CHOICE The evidence indicates that achievement in America's schools will improve only if there are fundamental changes in the way that schools are managed and controlled. Central to this, a growing number of reformers maintain, is educational choice. The Bush Administration is backing its rhetorical support of choice with some action. Example: Bush has endorsed increased federal funds for magnet schools. The Department of Education also has convened a roundtable on public school choice, and last fall convened a series of regional grass-roots strategy meetings to promote choice. Education choice is advocated by reformers of all political stripes. Observes Edward Fiske, the New York Times expert on education, "Conservatives see school choice as a way of injecting free enterprise into the educational system. Liberals see it as a way of giving the poor the same freedom that the rich have.' n21 Indeed, Governor Rudy Perpich, a Democrat, has championed the statewide choice plan in Minnesota. He argues that "without choice, school districts have little incentive to change and to provide alternatives for those families that want them." n22 n21Edward Fiske, "Lessons," The New York Times, January 11, 1989, P. B8. n22Lee A. Daniels, "Efforts to Allow Choice of Schools Stir Debate," The New York Times, March 1, 1989. LEXIS:NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 16 1990 The Heritage Foundation, March 21, 1990 Strong Public Support. Business leaders, meanwhile, faced with a severe shortage of skilled labor, are backing choice. Xerox Corporation Chairman and Chief Executive Officer David T. Kearns calls for "the total reatructuring of our schools" n23 to be "driven by competition and market discipline." n24 Polls show strong pubic support for education choice. A 1987 Gallup Poll finds that 71 percent of Americans, including 77 percent of non-whites, favor allowing parents to choose among local schools; a plurality supported the even more comprehensive alternative of vouchers. n25 This broad consensus provides a strong foundation for meaningful education reform centered on choice. n23David T. Kearns and Denis P. Doyle, Winning the Brain Race (San Francisco: Institute for Contemporary Studies, 1988), p. 2. n24Ibid., P. 5. n25Educational Choice, op. cit., P. 5. WHY CHOICE IS THE KEY Choice is seen as a critical lever for change because the central flaw in the public education system is its monopoly on providing education. The high taxes imposed to finance public education make it difficult, it not impossible, for most parents to opt out of public schools. And like any monopoly "industry" with a captive market of consumers and a guaranteed flow of revenue, public schools are under little pressure to produce a quality product. This monopoly system traps students from poor families, who often are consigned to inferior schools where drugs and crime are far more common than educational opportunities. n26 Robert Woodson, president of the Washington-based National Center for Neighborhood Enterprise, which seeks to spur improvement within inner-city minority communities, views educational choice as crucial to the progress of poor Americans. Woodson explains that: [w]hen we talk about enhancing choice, we are simply talking about giving working class people and poor people the same opportunity [as the affluent] to choose schools and services for their children. n27 n26See Clint Bolick, Changing Course: Civil Rights at the Crossroads (New Brunswick, New Jersey: Transaction Books, 1988), pp. 104-112. n27Educational Choice, op. cit., PP. 8-9. The deficiencies of the public educational system owing to its monopoly status are exacerbated by a second fundamental flaw: the educational system is controlled by the political process rather than by its "customers," the parents and the pupils. Union Control. As part of the political process, public education is susceptible to special interest pressures, such as teacher unions' control of personnel. The unions dictate who is qualified to teach and often protect incompetent teachers. This undermines the autonomy schools have over their own policies and personnel. Consider the staffing of public schools. As Brookings's Chubb points out, "Control over personnel is the most important quality that a school needs LEXIS·NEXIS® LEXIS·NEXIS® LEXIS®NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 17 1990 The Heritage Foundation, March 21, 1990 in order to be effectively organized," yet "within the public sector, autonomy is more the exception than the rule." n28 Owing to this lack of control over personnel, the system frequently transfers incompetent teachers from one school to another. They often wind up teaching in poor communities. n28Right to Choose, op. cit., P. 11. The monopoly and special interest control of the public school system are antithetical to the autonomy and accountability essential to quality education. Hence, say advocates of choice, the most effective reform proposals must address both flaws. Allowing choice among schools, public and private, would do most to end the monopoly and the problem of political control. Short of this, freedom of choice within the public sector, with increased control by parents over the management of individual schools, could lead to significant improvements. The crucial feature of a choice plan is increased competition between schools, even if that choice is limited to public schools. Explains Xerox's Kearns: In a choice system, the state would fund individual children Money earmarked for public education would reach the public school only when the student elected to enroll. The school would lose its guaranteed income, and it would be forced to provide the offerings that met the needs and interests of the community it proposed to serve. n29 n29Kearns and Doyle, op. cit., p. 18. HOW CHOICE HELPS POOR FAMILIES One of the most successful choice plans was initiated fifteen years ago in New York City's East Harlem, a school district about two-thirds Hispanic and one-third black. East Harlem's "open enrollment" policy allows parents to send their children to any of the 23 schools within the district. Parents choose among schools specializing in different themes, including performing arts and math and science. School administrators and teachers have the freedom to design new programs and hire new teachers to attract students. East Harlem's choice plan has, moved that district's reading scores from last to sixteenth among New York City's 32 school districts. The number of students who read at or above grade level in the district has increased from 15 percent to 64 percent. n30 n30Educating Our Children: op. cit., PP. 29-30. Staying in the Neighborhood. East Harlem has the highest poverty concentration in Manhattan, But its choice plan has led to this impressive success. The great majority of students attend their neighborhood school even though they may attend any school in the district. The critical factor in improving student performance appears to be the decentralization that has allowed parents, teachers, and principals to make most decisions affecting their own schools. The results are even more remarkable for urban minority students able to attend private schools. n31 The reasons for this are simple. By virtue of the need to produce competitive results to attract pupils and thus survive, LEXIS:NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 18 1990 The Heritage Foundation, March 21, 1990 private schools must be efficient. They have smaller bureaucracies than public schools, and they stress the academic basics to attract students. They also enjoy strong parental support for a disciplined and orderly school environment. n31Jill Rachlin and Paul Glastris, "Of More Than Parochial Interests, "U.S. News & World Report, May 22, 1989, P. 61. THE ARGUMENTS AGAINST CHOICE Critics contend that widespread freedom of choice among schools would lead to more affluent and well-educated parents taking their children to suburban schools or to the best urban schools, turning inner-city schools into "dumping grounds" for the very poor and the hard-to-educate. This contention is refuted soundly by the experience of families in East Harlem who made informed choices when they were free to choose and provided with through information about available choices. In fact, students were not left behind in inferior schools when East Harlem adopted choice. Instead, two schools that failed to attract students were closed and later re-opened with new staff and programs. Critics also charge that choice is not a cure-all for what ails education and that its supporters often promote choice as a total solution. To be sure, choice is not the panacea. It must be coupled with reforms such as greater school autonomy and accountability, and high standards of achievements. Yet, even alone, choice will raise educational standards through competition. And then this competition will spur other necessary reforms to be made more quickly than they would have been in the absence of choice. n32 n32Chester E. Finn, Jr., "The Choice Backlash," National Review, November 10, 1989. CONCLUSION Choice-centered reform proposals are receiving growing bipartisan political support and are endorsed by the great majority of parents. Some school administrators, like California Superintendent of Public Instruction, William Honig, recognize that choice brings increased flexibility for themselves and teachers and prompts greater parental support. Despite the support of educators like Honig, the principal opposition to choice comes from education establishment. Politically powerful teachers' unions fight choice proposals at the federal and state levels. They seem to dread the prospect of competition and accountability. Business Backing. Countering the opponents are grass roots parent groups and business leaders who recognize the value of competition. They have formed coalitions pressing for choice plans in the states. The California Business Roundtable, a group of 90 top executives, backs choice legislation in that state; the Illinois Manufacturer's Association has joined other business groups in promoting choice among public and private schools in the city of Chicago; and the Louisiana Association of Business and Industry, the state's Chamber of Commerce, has backed plans to introduce education vouchers. LEXIS:NEXIS® LEXIS·NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 19 1990 The Heritage Foundation, March 21, 1990 State Leaders. Some state governors have been at the forefront of the choice movement, like Minnesota's Perpich, a Democrat. In Wisconsin, Republican Governor Tommy Thompson has proposed legislation to create "education enterprise zones" for poor students. His plan would give parents educational vouchers to enable them to send their children to either public or non-sectarian private schools within the district. This effort in behalf of low-income students has received the support of black urban legislators. Republican Congressman Steve Bartlett of Texas has introduced legislation that would allow federal aid to disadvantaged students (Chapter I funds) to go directly to parents of eligible students to be used toward payment of tuition at their school of choice. Bartlett's bill, H.R.3697, also would provide federal aid to help local and state education agencies design open enrollment plans and would remove federal regulatory barriers that impede choice. George Bush's education legislation expands the federal magnet school program to make it available to school districts not under court-ordered desegration plans. Bush also has requested additional funds to assess the results of choice plans. Bush and Education Secretary Lauro Cavazos must continue to highlight choice as the only reform strategy with the potential to boost student performance and parental involvement. Restoring Accoutability. Bush and Cavazos should take their cues from the parents, officials, and business leaders across America who have overcome opposition from the education establishment and have introduced competition and accountability into the school system. Where choice has not been supported, reformers should focus on putting together bipartisan coalitions in support of choice for disadvantaged youngsters. Policy makers no longer lack the tools to improve educational quality and to expand opportunities for those who need them the most. The results are in, and they are encouraging: choice works and the greater the choice, the greater the results. Nothing written here is to be construed as necessarily reflecting the views of The Heritage Foundation or as an attempt to aid or hinder the passage of any bill before Congress. TM TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS Services of Mead Data Central, Inc. Recyclable THE WHITE HOUSE Office of the Press Secretary For Immediate Release July 23, 1992 PRESS BRIEFING BY ASSISTANT SECRETARY FOR POST-SECONDARY EDUCATION CAROLYNN REID-WALLACE The Briefing Room 12:42 P.M. EDT MR. WALSH: I'd like to welcome you to our education briefing. And today's briefer will be Carolynn Reid-Wallace, who is Assistant Secretary of Education for Post-Secondary Education. And she will be taking your questions and also elaborating on the bill- signing ceremony the President is going to be participating in today. ASSISTANT SECRETARY REID-WALLACE: Well, we are glad that there are some people in the country who are interested in higher education. It is, from our point of view, an extraordinarily important topic, atopic that has great significance not just for today, but certainly for the months and years to come. I'd like to begin by making a very brief opening statement. And it might be an appropriate thing to suggest that the higher education amendments of 1992 hit at four things that are critically important; things that the President has talked about in one way or another over a period of time. One of them is access for all Americans. And we have in this particular amendment an extraordinary example of access for all Americans -- not just rich people, not just middle class people, not just poor people, but all of these people having an opportunity to go to a college or university in this country. One good example of access, financial access, is the Pell Grant program. The maximum Pell Grant award has been increased to $3,700 for the award year '93-'94 with $200 increases for the next four years. I think some of you know that Pell Grants for students studying for degrees less than half-time, that is a student who's going in to take one course as opposed to a full load, are now available under our higher ed reauthorization for '92. This is a part of what you've heard the President talk about as life-long learning. There is also a real opportunity under these amendments for accountability and integrity. These are two things that taxpayers have for a very long time expressed genuine interest in having us do, and the President has himself said repeatedly, that it just isn't good enough to have these programs without a real sense of accountability and real measures of program integrity. And so we have, in this higher ed package, perfect evidence of this -- increased oversight of the guarantee agencies being one example; a reduction of the default rate trigger for removing high default rate schools from the GSL programs; increased scrutiny of schools by states and the accrediting agencies. These are a few examples of the kinds of things that we have attempted to do in order to be responsible to the taxpayer in terms of integrity and accountability. There are provisions also to promote excellence. It isn't good enough to have access without also excellence. And one MORE - 2 - example of that is alternative certification program for states to develop new routes to teacher certification. Another example is what is being called presidential access scholarships, that for the first time include an academic achievement component in a need-based student aid program. Also we feel very strongly, and the President has said repeatedly, that simplification is important. Parents don't need to have long and complex forms to fill out as they're about to make application for their youngsters to get student financial assistance. And we now have in this package a need -- a single-need analysis system. The legislation establishes a single-need analysis system for all Title IV programs. And this is something that we're very, very proud of. And so I'd say that access by way of financial access, excellence by way of being certain that we find a way to get excellence built into everything that we do by way of higher education, accountability and integrity and simplification are four thematic highlights of the '92 higher education act amendments. And I'll stop at this point and would be very happy to entertain questions if you have them. Q How is it that the President's able to get this piece of legislation through Congress, yet he complains that most of his domestic agenda is stalled on Capitol Hill? ASSISTANT SECRETARY REID-WALLACE: This is not something that was easily come by. The President worked exceptionally hard in forming what we characterize as a bipartisan coalition to get this through. And it didn't happen overnight. It was a matter of over and over again being on the mark, working with the Congress to get it through. An example of this is Secretary Lamar Alexander, unlike many other secretaries, made a total of some, I think, 13 visits to the Hill by way of not only presenting the facts and entering into negotiations, but discussing and talking with persons on the Hill. And so, in short, this has been the result of a rather long, arduous series of negotiations between the administration and the Congress. And in the final analysis, this is a good example of a bipartisan effort to push higher education along the way. Q You mentioned that the President wanted more narrowly targeted award rules? How much of a concession did he have to make there? ASSISTANT SECRETARY REID-WALLACE: I'm going to ask Bill Hansen if he would address this. He's the Assistant Secretary for Budget in the department. ASSISTANT SECRETARY HANSEN: What we'd asked for both in our budget and in authorization is that the award rule be targeted to make sure that those that are the most needy receive the grants that are made by the government, and that is the primary target on which we operate. Under the higher ed bill which has been authorized is authorized at over about $12 billion right now. So what it does is it throws the burden on the appropriations committees to determine how much funding and they're the ones that are going to have to set the award rules, basically; that's the way that it's going to work. Q So you just left it up to Congress then to set the rules? ASSISTANT SECRETARY HANSEN: No, we in our budget recommended very strong award rules. MORE Carol per conversations Rae - 3 - Q What was your amount? ASSISTANT SECRETARY HANSEN: Our amount this year in our proposed budget is $6.6 million for the Pell Grant program. That is the biggest budget for the Pell Grant program in the history of the program. It is an increase from 1989 of 50 percent, and this year it's also the biggest one-time increase in the Pell Grant program. And what we did in our budget request is we said how we would pay for it and also who would get the grants. Q But this comes in at $12 billion now? ASSISTANT SECRETARY HANSEN: That's what the authorization bill would allow for. MR. SCULLY: But that's not real money. Q I understand what the difference between authorization and appropriations -- MR. SCULLY: No, the difference is that under the caps under the budget agreement our requests fit into the total caps. The appropriators have to deal with the same guidelines that we have to deal with. The authorizers deal with fake money. Q In fact, what's happening as I understand it is that it's not really $3,700, it's actually a decrease from current Pells? That's the way -- ASSISTANT SECRETARY HANSEN: They've authorized it at $3,700 but -- Q They've authorized it at $3,700, but because of caps and because of what the appropriators are talking about we're really talking about a decrease? ASSISTANT SECRETARY HANSEN: Well, also it's because of the award rules and the widely expanded way in which they are in place right now will only probably accommodate about a $2,400 maximum award. That's the current log number. Q Which is down from what $2,700? ASSISTANT SECRETARY HANSEN: No, it's $2,400 now. MR. SCULLY: But it could still go up in the future under this new authorization. Because they expanded the award rules, the total number of dollars will go up massively, but the maximum amount may be flat for this year. But it can still go up next year. Q The administration had originally opposed changing Pell Grant eligibility and award sizes, but they had also opposed a direct loan program. Can you explain why the shift in stance on these two issues? ASSISTANT SECRETARY REID-WALLACE: The administration had opposed a direct loan program as a full-blown program. And the reason this was opposed is pretty simple and very, very straightforward. It would have cost too much money. There simply would not have been sufficient money to support a full-blown direct loan program. And so we had aggressively opposed that. We had, however, been very clear about our interest in some compromise. And that's what we have before us now. It is a demo project designed to support over a period of time a much smaller program than a full-blown program. We're really talking now about a cap of some $500 million. MORE - 4 - Q Can you address the same question as to the administration's opposition to changing Pell Grant eligibility and award size? ASSISTANT SECRETARY REID-WALLACE: I'm going to ask -- Bill, could you speak to that? ASSISTANT SECRETARY HANSEN: We never opposed the Pell Grants. In fact, we were the ones who proposed eligibility rule changes both in our budget submission and in our reauthorization proposal. MR. SCULLY: Very large -- Q Maybe you can clarify -- I'm just looking at the March 19th, 1992 statement of administration policy, which says that "the administration strongly objects to provisions that would change Pell Grant eligibility and determine award sizes in ways that would give excessive aid to the wealthiest students." MR. SCULLY: There's the key -- in ways that would -- Q Wait, wait. Then it goes on to say that the bill would increase Pell Grant funding for students from high income families. Well, that's what it does. MR. SCULLY: It doesn't. Q Similarly, it says that you're opposed to a percentage of total Pell Grant funds targeted on neediest students from 61 percent to 40 percent. That's also in the bill. MR. SCULLY: No, it's not that big. The whole point of this bill is the President's proposal from the beginning was, Pell grants should go to the neediest kids first and that we should probably expand in the middle class, but that we should make sure that the neediest kids get as much grant money as they can and that we should essentially not pump all the extra new money in the middle class and not take care of needy kids. What the bill basically is is a compromise that will put more money into all categories but in a much more structured way. And the way we demanded, it puts a lot more money into the pockets of needy kids before you get around to funding middle class kids with grants. Q Can you explain how that works in the bill then, what the -- MR. SCULLY: Yes, I think it was -- what the House and Senate wanted to do as political matter is they wanted to go out and create a huge new package of new Pell Grant funding to kids at very high income levels from families of $60,000, $70,000, $80,000 a year. And what we said is, you should give more money to low-income kids first, and then to the extend that we can afford it, we should expand to the middle class. And I think that's a fairly middle- ground result -- is what happened. Q So in other words, there are guidelines in the bill that you have to address the needs of low-income students before high-income students? MR. SCULLY: With the Pell Grant formula, how it goes, the Pell Grant formula gives kids grants up to $44,000 a year in the average family. It's a very complicated formula. And that's $4,000 higher than it used to be. And those kids of those relatively middle-income families will probably end up getting more. But many people in the House and Senate wanted to go way above that. And the reality is, if you have a fixed pot of money, you're taking the money out of the pockets of relatively lower income kids and giving it to more of the middle-class families. - 5 - And think what happened was a compromise. Everybody's getting a little bit more. The administration wanted to make sure that the program's dollars went first to relatively low-income kids before you went to middle class. Politically, as you might guess, a lot of people's constituencies wanted to put the money in the middle class first. And I think what happened was the middle version. ASSISTANT SECRETARY REID-WALLACE: In addition, I think I should point out, under Pell Grants, for the first time we now have an opportunity, thanks to the President's insistence that part-time students also have an opportunity to study in school and receive Pell Grants. This is a part of our push for lifelong learning. THE PRESS: Thank you. END 12:55 P.M. EDT July 23, 1992 The Higher Education Amendments of 1992 The President is signing the Higher Education Amendments of 1992 at Northern Virginia Community College (NOVA) because it is part of one of the largest community college systems in the nation, and serves many part-time students. This legisla- tion includes a key provision that would greatly expand Pell grant assistance to individuals who are taking as few as one or two courses at a time toward a degree. Many of those who attend community colleges take a course or two in the evenings and, as a result, have not been eligible for many Federal student assistance programs, which have been geared toward students who are in school at least half time. The President is especially pleased with this legislation because it includes provision for four major initiatives he has sought since taking office. The first is expanding access to postsecondary education. The bill allows almost all families and students to qualify for a student loan and increases the maximum Pell grant awards for low- and middle-income students from $2,400 to $3,700. The second is enhancing accountability and integrity in the student loan system which will help reduce fraud and waste. It strengthens the states' role in determining whether higher education institutions can participate in Federal student aid programs and tightens the threshold for eliminating from the program schools with high default rates. The third is promoting alternative certification to help attract talented individuals who have great competence in their discipline but who do not teach. in our elementary and secondary schools because of the rigid certification requirements. Encouraging alternative certification is particularly helpful at a time when large numbers of military personnel, skilled in teaching, are leaving the armed forces and looking for opportunities to contribute in the civilian workforce. The fourth is the establishing National Teacher and School Leader Academies. These academies are designed to train and enhance the skills of current teachers and educators so they can help our students reach the world-class standards the President has called for in his AMERICA 2000 strategy. HEA Signing Ceremony Neady half of all full-time college students currently receive some type of Federal grant or loan. Under my administration, the amount of Federal aid available to students has increased by 40 percent, to over $25 billion. The Pell Grant program, which helps the neediest students, has Increased over 48 percent during that time. I had a number of goals going into the Higher Education Act (HEA) reauthorization: --Expanding financial access and choice; -Rewarding excellence and success in education; --Promoting Iffelong learning: -Promoting greater accountability; and -Simplifying program delivery. This bill brings us closer to achieving all of these goals. The maximum Pell Grant has been Increased to $3,700, as the Administration proposed. Loan limits under the Guaranteed Student Loan (GSL) programs have been increased for almost all undergraduate and graduate students. With the creation of the Presidential Access Scholarship program, need-based student ald will encourage and reward educational excellence for the first time. This program will supplement the awards of Pell Grant recipients who meet a minimum standard of acadomic aohiovoment. The bill will expand ellability for Pell Grants to less than half-time students. a key component of the President's Lifelong Learning Act. The bill includes many of the Administration's program integrity and default reduction provisions, such as an expanded State role In assuring institutional quality, enhanced Secretarial oversight of guarantee agencies, and the reduction of the threshold for elimination of high default schools from 30 percent to 26 percent. A number of vital steps have been taken TO simplify the student aid programs. These include the adoption of a single need analysis formula for all aid programs and a common financial aid application form. A number of other provisions in the Dill directly support AMERICA 2000. These include: adoption of an altornativo ocrtification program through which states can develop new routes to teacher certification: and -authorization of National Teacher and School Leader Academies to provide in-service training. PAGE 2 1ST STORY of Level 1 printed in FULL format. Copyright 1992 The Atlanta Constitution The Atlanta Journal and Constitution September 4, 1992 SECTION: EDITORIAL; Section A; Page 15 LENGTH: 627 words HEADLINE: MYTHS OF THE '90s Will this decade go back to the future? BYLINE: By Diane Crispell KEYWORD: population; trends; statistics; lifestyles; forecasts; series; publications BODY: On Thursday, an excerpt from American Demographics magazine examined myths about the 1950s. In today's conclusion of the series: Myths in progress. - The 1990s will be a rerun of the 1950s. Even if you took away personal computers and microwave ovens, the 1990s would not be like the 1950s. Attitudes have evolved dramatically. Back in the 1950s, cigarette smoking was fashionable and abortion was illegal. Separate-but-equal treatment of blacks was not considered discriminatory. Women, minorities, older Americans and gays had no employment rights. These groups are especially unlikely to want to return to the good old days. -The 1990s will be a decade of affluence. Over the next 20 years baby boomers will be entering their peak earning years. A lot of households will be bringing in more money than ever. But a dollar won't buy as much as it did for their parents the same age. Even though baby boomers will get the biggest checks they will ever see, many will be disappointed at how little their money buys. - Women will quit working and return to their families in the 1990s. Household finances in the 1990s are forcing many women to stay on the job. It now takes more than one earner to maintain the average household's standard of living. The media jumped on the news that women's work rates dipped during the 1991 recession, but this drop only mimicked similar declines in men's work rates. The Bureau of Labor Statistics predicts that the labor-force participation rate for women age 25 to 54 will grow to 82 percent by 2005, up from 74 percent in 1990. TM LEXIS:NEXIS® LEXIS·NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 3 1992 The Atlanta Journal and Constitution, September 4, 1992 - Husbands will help more with housecleaning. Men are spending more time on housework than ever before. Much of this increase is due to the fact that divorced men and never- married men are a growing share of all men and they are responsible for their own housework. Husbands and fathers are also doing more chores. But these increases are primarily in the areas of child care and shopping. Cleaning house has yet to become trendy among married men. - There will be a new baby boom in the 1990s. The mini baby boom of the late 1980s and early 1990s was really a parent boom. It will end soon. As baby-boom women leave childbearing years, the number of births will decline. In fact, this downturn has already begun. The number of births in 1991 was lower than in 1990. - Crime is at an all-time high. The nature of crime has changed. Some crimes, such as child abuse and sexual harassment, were not reported 40 years ago. And other crimes, such as rape, may be more likely to be reported today than they were in past decades. Greater reporting artificially inflates growth in the crime rate. But underreporting cannot account for the enormous increase in all major crime rates since 1960. The murder rate has almost doubled, according to the FBI's Uniform Crime Reports. Burglary has doubled and property crimes, larceny and motor-vehicle theft have increased threefold. The rates for rape and robbery are four times greater than they were in 1960. And aggravated assaults have increased five times. - America will age rapidly during the 1990s. The number of people age 45 to 54 will grow rapidly because baby boomers will enter this group. But the generation reaching retirement age now was born during the Great Depression and is smaller than the one it is replacing. Increased longevity is behind rapid growth among adults age 85 and older. But this group made up only a little more than 1 percent of the population in 1990 and will be less than 2 percent in 2000. Over the decade of the 1990s, the median age of all Americans is expected to increase from 33 to 36. LEXIS:NEXIS® LEXIS-NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 4 1992 The Atlanta Journal and Constitution, September 4, 1992 Diane Crispell is an editor for American Demographics, from which this excerpt is taken. GRAPHIC: Illustration: Members of a 1990s family seeing a 1950s family in the mirror./ WILSON LOWREY, JOHN AMOSSS / Staff TM LEXIS:NEXIS® LEXIS·NEXIS® LEXIS·NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 6 16TH STORY of Level 1 printed in FULL format. The Associated Press The materials in the AP file were compiled by The Associated Press. These materials may not be republished without the express written consent of The Associated Press. August 26, 1982, Thursday, AM cycle SECTION: Washington Dateline LENGTH: 480 words HEADLINE: FBI Says Robbery Reports Rise, Murders and Rape Decline BYLINE: By KEVIN COSTELLOE, Associated Press Writer DATELINE: WASHINGTON KEYWORD: Crime BODY: The number of robberies reported in the United States last year rose considerably while the number of reported murders and forcible rape offenses dropped slightly, the FBI said Thursday. Meanwhile, one expert said a decrease in the number of people in the crime-prone, 15- to 24-year-old age group contributed to last year's slight drop in the serious crime rate. "The most important factor is the change in the age distributions in the population. There were fewer people in the 15 to 24 age group that accounts for most of the index crimes (tabulated by the FBI)," said James J. Fyfe. He is a senior fellow of the Police Foundation, a private group that studies law enforcement issues. Fyfe added that crime rates should continue to decrease gradually, but probably will pick up again beginning around 1992 as youngsters from the current baby boom become teenagers. FBI Director William H. Webster said the number of reported robberies - the taking of something from a person by force, threat of force, or fear was 574, 134 during 1981. That was up 25,325 from 1980. Losses to victims were estimated at $382 million. The number of murders and related killings reported to police dropped by 2.3 percent to 22,516 last year, according to the bureau's Uniform Crime Reports. The number of reported rapes, assaults with intent to commit rape and rape attempts dropped 0.7 percent to 81,536 last year. Aggravated assaults dropped 1.7 percent to 643,720, of which 24 percent were committed with firearms and 22 percent with knives or cutting instruments. LEXIS:NEXIS® LEXIS-NEXIS® LEXIS:NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 7 The Associated Press, August 26, 1982 Burglaries the illegal entry of a building to commit a crime declined 0.5 percent. The more than 3.7 million incidents resulted in estimated losses of $3.5 billion. Larceny-theft crimes including shoplifting, bicycle thefts, pocket-picking and a wide range of other stealing offenses rose by 0.6 percent to more than 7.1 million incidents during 1981. The loss from all such reported incidents was estimated at $2.4 billion. The overall crime rate declined 1.7 percent, from 5,899.9 of the tabulated crimes for every 100,000 residents in 1980 to 5,799.9 such crimes in 1981. The FBI said that last year the number of reported serious crimes was 13,290,256 - down 5,143 from 1980. It was the first such drop in four years. The FBI's figures are based on data submitted by law enforcement agencies covering 97 percent of the U.S. population. The FBI's figures include murder, robbery, rape offenses, aggravated assault, burglary, larceny-theft and motor vehicle theft. "It is heartening to see that figures that have been marching upward for 50 long are now stabilizing," said Attorney General William French Smith. Smith has called on Congress to enact several new measures to help control crime. However, most of those proposals are still awaiting action. TM TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 2 14TH STORY of Level 1 printed in FULL format. Copyright 1992 News World Communications, Inc. The Washington Times August 30, 1992, Sunday, Final Edition SECTION: Part A; Pg. A1 LENGTH: 1097 words HEADLINE: Violent crime hits record level BYLINE: Jerry Seper; THE WASHINGTON TIMES BODY: ****FINAL FBI FIGURES FOR 1991 SHOW VIOLENT CRIME ROSE 4 PERCENT, PARTLY BECAUSE OF RISING JUVENILE OFFENSES**** Violent crime nationwide jumped 4 percent last year to a record high, with nearly 2 million murders, rapes, robberies and aggravated assaults reported to police, the FBI said yesterday. Nearly a sixth of the nation's 24,703 murders in 1991 were committed by youths ages 15 to 19 - the largest proportion of any age group. The national murder rate increased 4.3 percent to almost 10 per 100,000 people. The District of Columbia led the big cities with a murder rate of 80.6 per 100,000 population. Richmond was fifth with 56.2 per 100,000. The overall rate of 758 violent crimes for every 100,000 Americans was an increase of 24 percent over 1987 and 33 percent over 1982. The figures are part of the FBI's final 1991 Uniform Crime Report and were announced by Attorney General William P. Barr and FBI Director William S. Sessions. They include reports of murder, forcible rape, robbery and aggravated assault from more than 16,000 law enforcement agencies nationwide. "There are two things that hold true in the world of violent crime," Mr. Barr said. "First, a disproportionate amount of violent crime is committed by a relatively small group of chronic, violent offenders. "Second, prosecutors and police officers must be given the tools necessary to identify and incarcerate this hard-core group. All too often, law enforcement's hard work is undermined by a revolving-door justice system that puts career criminals back on the street before they have served their entire sentence.' The attorney general said the fight against violent crime and violence-prone criminals should include increased resources for law enforcement officials, a reform of federal and state criminal justice systems, "high-impact operations" that target the most dangerous criminals, and a combined effort by law enforcement and communities to help crime-ridden areas. The FBI said that during 1991 incidents of forcible rape jumped by 3 percent, the robbery rate rose by 6 percent and aggravated assault increased 2 percent. TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 3 The Washington Times, August 30, 1992 There were more than 5,400 murders, rapes, robberies or assaults every day during 1991, the FBI said. Of the record 24,703 murder victims, the FBI said 78 percent were men, and 89 percent were 18 or older. Fifty percent were black. The FBI said firearms, including handguns, rifles and shotguns, were used in 31 percent of the violent crimes reported. Mr. Sessions said the FBI study looked into the "social phenomenon" of increased juvenile violence and found "dramatic increases" in arrest rates for those 10 to 17 years old - both white and black. The report noted a surge in youth arrests for murder during the 1980s. In 1980, slightly fewer than 20 in 100,000 youths were arrested for murder, compared with nearly 50 per 100,000 in 1990. The increases, he said, were evident in every area of the country and coincided with "a significant increase" in the arrest rate for cocaine and heroin use and for weapons violations. "The study results indicate the surge in juvenile violent crime arrests has a broad base, and since it is projected the juvenile population will increase significantly by the year 2000, these increases in juvenile violence may continue in the future," Mr. Sessions said. Mr. Barr said the trend clearly shows that a "wholesale reform of the juvenile justice system" is in order. He said first-time offenders should get counseling to prevent their return to trouble, but "chronic, hardened, youthful offenders" should be jailed for extended periods. "The long-term solution to the problem of juvenile crime falls largely outside of the law enforcement system," Mr. Barr said. "It requires strengthening those basic institutions - the family, schools, religious institutions and community groups - that are responsible for instilling values and creating law-abiding citizens." Almost 15 million violent and property crimes were reported last year nationwide, an increase of 3 percent from 1990. The new figures are 10 percent higher than 1987 and 15 percent above the 1982 level. The FBI said the property-crime rate increased by 1 percent in 1991, with nearly 13 million reports of burglary, larceny-theft, motor-vehicle theft and arson - about 36,000 a day. Total losses from property crime were estimated by the FBI at $16.1 billion, or about $1,200 per offense. In 1991, the FBI said, larceny-theft accounted for about 63 percent of the property crimes reported. The FBI said more than 3.2 million burglaries were reported nationwide last year; two of every three involved residences. About 70 percent of the burglaries involved forced entry; the offenses were evenly divided between day and night. More than 1.7 million vehicles were stolen - one for every 117 registered motor vehicles in the nation. The estimated loss from auto thefts was $8.3 billion, or about $4,900 per vehicle. TM TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 4 The Washington Times, August 30, 1992 Geographically, crime declined by 1 percent in the Northeast, increased by 1 percent in the West and South, and jumped by 3 percent in the Midwest. The FBI said cities recorded a 3 percent increase in violent and property crime from 1990 to 1991. Suburban and rural areas saw 4 percent and 5 percent jumps, respectively. During 1991, the FBI said, law enforcement agencies nationwide made about 14.2 million arrests for criminal offenses, not including traffic violations. The total is down 1 percent from 1990. The FBI said 46 percent of those arrested were under 25. The bureau said 81 percent were male and 69 percent were white. The FBI said the nation had 535,629 law enforcement officers in 1991; about 91 percent of them were men. The average of 2.2 full-time officers for every 1,000 residents nationwide was the same as in 1990, the report said. CHART (COLOR) 1991 CRIME RATE The FBI measures eight major crimes reported by police agencies nationwide 1 murder, forcible rape, robbery, aggravated assault, burglary, larceny-theft, motor vehicle theft and arson. The rates for 1991 over 1990 are: Overall crime up 3% Violent crime up 4% Property crime up 1% Murder up 4% Forcible rape up 3% Robbery up 6% Assault up 2% Burglary up 1% Larceny-theft up 1% Vehicle theft no change Arson up 1% Source: FBI Uniform Crime Report GRAPHIC: Box (color), 1991 CRIME RATE, By The Washington Times TM TM LEXIS:NEXIS® TM LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 1 LEVEL 1 - - 1 OF 1 DOCUMENT Public Papers of the Presidents Remarks Announcing Proposed Legislation To Establish a "GI Bill" for Children 28 Weekly Comp. Pres. Doc. 1139 June 25, 1992 LENGTH: 1942 words ... entitlement program. The Federal Government cannot afford one more entitlement, even for education. I've said many times that money alone isn't the answer. The United States already spends more per student for schools than any country in the world except Switzerland. I don't have to tell you where we stand in the international rankings of educational performance at the level we're talking about here today. Our universities and colleges are respected and have achieved the highest levels of achievement. But that, unfortunately, is not ... TM TM TM LEXIS:NEXIS® LEXIS-NEXIS® LEXIS-NEXIS® Services of Mead Data Central, Inc. Recyclable