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Record Group/Collection:
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Folder Title:
Agenda for American Renewal--Detroit Economic Club 9/10/92 [OA 7580] [5]
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Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
01. Memo
J. D. Foster to Jennifer Grossman, re: Fact Checking and One
10/07/92
P-5
Liners. (2 pp.)
Collection:
Record Group:
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Open on Expiration of PRA
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(Document Follows)
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Speech File, Backup
By SN (NLGB) on 4/5/2005
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WHORM Cat.:
File Location:
Agenda for American Renewal Detroit Economic Club 9/10/92 [5]
Date Closed:
12/6/2004
OA/ID Number:
07580
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RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
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P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
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(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advise between the President
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and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
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October 7, 1992
MEMORANDUM TO JENNIFER GROSSMAN
FROM:
J.D. FOSTER JOH
RE:
Fact Checking and One Liners
The attached page provides the sources and some background
information on the facts you needed to be traced.
In addition, if you would allow an economist to make a couple
suggestions about the possible Clinton statements that appear to
create the most difficulty. First, what to say when Clinton
repeats "Read My Lips". There are two approaches, one
rhetorical, the other substantive, and both requiring the
President to go on the offensive. The rhetorical approach is
1) to attack Clinton on some issue where he has flip-
flopped -- possibly on NAFTA, or even on his exhale-
less drug use.
2) then quickly admit and pass over the fact that the
President had been forced to break the vow, but that he
won't make that mistake again -- fool me once, shame on
you; fool me twice, shame on me!
The second, substantive approach is
1)
admit that the President had broken the vow, but he did
it because of his concern over the budget deficit.
Because of his concern over the deficit and a
Democratic Congress that refused to address the deficit
without tax increases, he felt at the time there was no
alternative but to agree to some tax increases to get
some budget restraint
2)
This is one area, at least, in which the President and
Ross Perot agree, that the budget deficit must be
reigned in. Governor Clinton's plan makes it plain as
day that he doesn't care about the deficit because,
even with well over $150 billion in new taxes, his plan
would increase the deficit by $xx billion over five
years.
2
I believe the second approach is by far the stronger because it
ends up on the offensive and makes some important points.
The second issue is the Clinton claim that the economy's
performance has been the worst since Hoover.
Answer:
There you go again, trying to tear down the American
economy. It's true we haven't grown as fast as we should.
But:
-
it's also true that we've had five consecutive quarters
of positive growth, and that we're growing faster than
any other major industrialized country.
-
it's also true that we are now the number one exporting
superpower in the world. And with the North American
Free Trade Agreement in place, (and I thank you,
Governor Clinton, for finally endorsing that
Agreement), our exports will continue to grow strong
for years to come and our trade deficit will continue
to decline.
-
it's also true that we have the lowest inflation and
the lowest interest rates in a generation.
-
and, finally, we are completing the adjustments in our
economy that have kept our growth down, such as the
defense downsizing and the recovery of our financial
sector. Combined with the other things I mentioned--
strong export growth, low inflation and low interest
rates--I believe our economy is poised for a long
period of sustained, solid growth.
attachment
320
ECONOMY
POTUS:
(1) Misery index -- the sum of inflation and
unemployment -- is [10.8%], down from 19.6 percent
in 1980.
10.6
Source: [Detroit, Mi.; J.D. Foster, Chief
Economist, CEA X 5084.]
(2) Inflation has fallen to roughly [3] %;
Source: [Detroit, Mi.; J.D. Foster, Chief
Economist, CEA X 5084.]
(3) Interest rates are at a [20] year low;
Source: [Detroit, Mi.; J.D. Foster, Chief
Economist, CEA X 5084.]
(4) Purchasing power of Americans gives us highest
standard of living in world.
Source: [Detroit, Mi. ]
(5) We enjoy highest home ownership rate of all major
industrialized countries.
Source: [Detroit, Mi.;* ]
(6) Over past 12 years we have almost doubled size of
our economy. (81)3030 (92) 5,900
Source: [Detroit, Mi.;* ]
(7) With 5% of world's population, we produce 25% of
world's total output -- and 37% of its high-tech
products.
36
Source: [Detroit, Mi.*]
(8) To nearly double the size of our economy to $10
trillion economy by early years of next century.
Source: [Detroit, Mi on How could 4here be any
hand copy?
(9) Create enterprise zones in inner cities and rural
areas; make R&D tax credit permanent; cut the tax
on capital gains and index for inflation;
strengthen small business by cutting taxes, making
credit available, lifting government regulations;
Source: [Detroit, Mi.*]
3
The attached sheets are numbered to correspond to the original
fact sheet.
1)
The misery index has actually dropped since this was done.
It is now at 10.6% (3.1% inflation plus 7.5% unemployment)
2)
Inflation now at 3.1%.
3)
The two sheets give current and historical interest rates.
They show that the fact sheet understates the relative
position of interest rates in many cases.
4)
The best measure of standard of living is GDP per capita.
The chart shows the U.S. way out in front.
5)
No luck yet.
6)
Economy has grown from $3 trillion in 1981 to $5.9 trillion
in 1992, second quarter.
7)
The sheets from the Handbook of Economic Statistics verify
the 5% and 25% (see pie charts or raw data). The sheets
from Science and Engineering Indicators shows 1990 estimate
of U.S. high-tech production at 36%, not 37% as in the
sheet.
09/04/92
16:57
202 401 2837
DEPT. OF ED OUS +++ WHITE HOUSE/OEDP
002
TOTAL EDUCATION EXPENDITURES FROM ALL SOURCES, 1988-89 AND 1992-93
IN CURRENT AND CONSTANT DOLLARS WITH CHANGE AND PERCENTAGE CHANGE
(dollars in billions)
SCHOOL
SCHOOL
YEAR
YEAR
PERCENT
1988-89
1992-93
CHANGE
CHANGE
Total funds:
Current dollars
$345.6
$445.4
+$99.8
+28.9%
Constant 1992 dollars
406.4
445.4
+39.0
+9.6%
Federal funds:
Current dollars
$28.8
$36.7
+$7.9
+27.4%
Constant 1992 dollars
33.9
36.7
+2.8
+8.3%
Total State and local funds:
Current dollars
$222.4
$287.6
+$65.2
+29.3%
Constant 1992 dollars
261.5
287.6
+26.1
+10.0%
State funds:
Current dollars
$130.2
$164.0
+$33.8
+26.0%
constant 1992 dollars
153.1
164.0
+10.9
+7.1%
Local funds:
Current dollars
$92.9
$123.5
+$30.6
+32.9%
Constant 1992 dollars
109.3
123.5
+14.2
+13.0%
1
Other funds:
Current dollars
$94.4
$121.1
+$26.7
+28.3%
Constant 1992 dollars
111.0
121.1
+10.1
+9.1%
9/4/92
09/04/92
16:57
202 401 2837
DEPT. OF ED OUS +++ WHITE HOUSE/OEDP
5.
003
2
TOTAL EDUCATION EXPENDITURES FROM ALL SOURCES, 1981-82 AND 1992-93
IN CURRENT AND CONSTANT DOLLARS WITH CHANGE AND PERCENTAGE CHANGE
(dollars in billions)
SCHOOL
SCHOOL
YEAR
YEAR
PERCENT
1981-82
1992-93
CHANGE
CHANGE
Total funds:
Current dollars
$197.8
$445.4
+$247.6
+125.2%
constant 1992 dollars
299.5
445.4
+145.9
+48.7%
Federal funds:
Current dollars
$18.5
$36.7
+$18.2
+98.4%
Constant 1992 dollars
28.0
36.7
+8.7
+31.1%
Total State and local funds:
+$159.4
+124.3%
Current dollars
$128.2
$287.6
Constant 1992 dollars
194.1
287.6
+93.5
+48.2%
State funds:
Current dollars
$76.3
$164.0
+$118.3
+155.0%
Constant 1992 dollars
115.5
164.0
+48.5
+42.0%
Local funds:
Current dollars
$51.9
$123.5
+$71.6
+138.0%
Constant 1992 dollars
78.6
123.5
+44.9
+57.1%
1
Other funds:
Current dollars
$51.1
$121.1
+$70.0
+137.0%
Constant 1992 dollars
77.4
121.1
+43.7
+56.5%
9/4/92
09/04/92
16:58
202 401 2837
DEPT. OF ED OUS +++ WHITE HOUSE/OEDP
004
3
TOTAL EDUCATION EXPENDITURES FROM ALL SOURCES, 1969-70 AND 1980-81
IN CURRENT AND CONSTANT DOLLARS WITH CHANGE AND PERCENTAGE CHANGE
(dollars in billions)
SCHOOL
SCHOOL
YEAR
YEAR
PERCENT
1969-70
1980-81
CHANGE
CHANGE
Total funds:
Current dollars
$68.5
$182.8
+$114.3
+166.9%
Constant 1992 dollars
258.4
300.7
+42.3
+16.4%
Federal funds:
current dollars
$7.6
$20.0
+$12.4
+163.2%
Constant 1992 dollars
28.7
32.9
+4.2
+14.6%
Total State and local funds:
Current dollars
$44.8
$117.9
+$73.1
+163.2%
Constant 1992 dollars
169.0
193.9
+24.9
+14.7%
State funds:
Current dollars
$22.3
$70.8
+$48.5
+174.9%
Constant 1992 dollars
84.1
116.5
+32.4
+38.5%
Local funds:
Current dollars
$22.5
$47.0
+$24.5
+108.9%
Constant 1992 dollars
84.9
77.3
-7.6
-9.0%
Other funds:
Current dollars
$16.1
$44.9
+$28.8
+178.9%
constant 1992 dollars
60.7
73.9
+13.2
+21.7%
1
Other spending includes all tuition and fees paid to postsecondary
institutions, including Federal student financial aid; research funds
from private sources; grants having components from many sources that
cannot be separated; endowment funds; teaching hospital revenue not
identified as Federal, State, or local; and institutional funds, e.g.,
donations from private sources.
NOTE: CPI deflators used to determine constant 1992 dollars.
SOURCE: National Center for Education Statistics.
9/4/92
04/92
10:12
202 401 2837
DEPT. OF ED OUS +++ WHITE HOUSE/OEDP
4
003/005
EDUCATION FUNDING
(Budget authority in thousands)
Department of Education Total
Increase from 1968
1968
1980
Amount
Percent
Current dollars
$3,918,867
$14,090,222
+$10,171,355
+260%
Constant 1980 dollars
8,865,212
14,090,222
+5,225,010
+59%
Increase from 1981
1981
1993
Amount
Percent
Current dollars
14,794,379
32,338,772
+17,544,393
+186%
Constant 1993 dollars
23,732,521
32,338,772
+8,606,251
+36%
Increase from 1989
1989
1993
Amount
Percent
Current dollars
22,956,417
32,338,772
+9,382,355
+41%
Constant 1993 dollars
26,458,459
32,338,772
+5,880,313
+22%
Chapter 1 ESEA
Increase from 1968
1968
1980
Amount
Percent
Current dollars
$1,100,288
$3,215,343
+$2,115,005
+192%
Constant 1980 dollars
2,489,058
3,215,343
+726,285
+29%
Increase from 1981
1981
1993
Amount
Percent
Current dollars
3,104,317
6,946,332
+3,842,015
+124%
Constant 1993 dollars
4,979,815
6,946,332
+1,966,517
+39%
Increase from 1989
1989
1993
Amount
Percent
Current dollars
4,570,246
6,946,332
+2,376,086
+52%
Constant 1993 dollars
5,267,445
6,946,332
+1,678,887
+32%
NOTE. Gross Domestic Product deflators used to determine constant dollars.
9/3/92
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UNITED STATES
MASSACHUSETTS
DEPARTMENT OF EDUCATION
NEWS
STATES
D
FOR RELEASE
September 2, 1992
Contact: Melinda Kitchell
(202) 401-1008
1992 BACK TO SCHOOL FORECAST
The U.S. Education Department today released its 1992 back-
to-school forecast reporting another year of record spending and
employment in education at all levels.
"These numbers remind us that money alone is not the answer
to better schools," said Education Secretary Lamar Alexander.
"During the last 10 years, spending on education has more than
doubled -- even after inflation it's still up 40 percent -- while
enrollment is only slightly up and results are disappointing.
"We should spend our money on changing our schools:
breaking the mold, higher standards, better tests, getting
government off the backs of teachers, and giving families more
choices of all schools."
According to the department:
o
Total education spending in the U.S. is expected to
reach $445 billion this year, up.5 percent over 1991;
after adjusting for inflation, spending is up 40
percent over the last decade;
An estimated 70 million Americans, or one in four, will
be directly involved in education this year as a
student, teacher, administrator, or as support staff.
Schools of all types will employ 7.7 million;
A record number of college students -- 14.3 million --
will enroll in the nation's colleges and universities
this fall. More students will earn bachelor's,
master's and doctorate degrees than ever before.
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-2-
EXPENDITURES RISE
Spending for public elementary, secondary and higher
education should reach $363 billion, and $82 billion will be
spent by private schools and colleges. The $445 billion total
for the 1992-93 school year is a 5 percent increase over 1991.
Educational institutions' expenditures in 1991-92 amounted to
about 7.5 percent of the gross domestic product (GDP), and a
similar proportion is expected in 1992-93.
K-12 SPENDING SEES LARGE INCREASE
Elementary and secondary schools are expected to spend about
$274 billion in 1992-93, up 5 percent from $261 billion in 1991-
92 (see table 6 and chart 3). After adjusting for inflation,
spending is up 40 percent in the ten years since 1982-83.
Per pupil spending for public elementary and secondary
schools will reach a record high: $6,300 in 1992-93, up $200
from $6,100 in 1991-92 (table 5). Per pupil spending includes
current expenditures, capital outlays, and interest payments on
school debt. After allowing for inflation, per pupil spending
has grown 35 percent between 1982-83 and 1992-93.
In the last year, the average public school teacher's salary
rose by four percent (see table 5). A similar increase is
expected this year, which would bring the average annual salary
to about $35,800 in 1992-93, compared with last year's average of
$34,413.
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-3-
ENROLLMENT RISES, NEW TREND IN HIGH SCHOOLS
Elementary and secondary school enrollment in 1992 will
total 47.6 million, and is expected to rise through the end of :
the decade, because of a generally upward trend in U.S. births
evident since 1977. (In fact, although enrollment has risen
slightly over the last decade, it is significantly less than it
was 20 years ago. In school year 1971-72, total enrollment was
at an all-time high of 51.3 million.)
Public and private elementary and secondary schools 1992
enrollment (see table 2 and chart 1) will continue an upward
trend that began in 1985. Elementary school enrollment (grades
K-8) should climb 500,000, up from 34.4 million last year to 34.9
million this year.
Enrollment in the nation's secondary schools (grades 9-12)
should rise slightly this year, up from 12.6 million last year to
12.7 million this year. The rising number of elementary school
students, evident through the late 1980s, has shown up in
increased secondary school enrollment. Enrollment increases in
grades 9 through 12 are expected for at least 10 more years.
REGIONAL ENROLLMENT INCREASES CENTERED IN WEST AND SOUTH
Regionally, the largest enrollment increases are found in
the West, followed by the South, with only slight increases in
the Northeast and Midwest. States with the largest percentage
enrollment increases in the last five years are Nevada, Arizona,
Florida, California, New Hampshire, Washington, Maryland, and
Delaware.
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NUMBER OF HIGH SCHOOL GRADUATES REMAINS STEADY
About 2.5 million students are expected to graduate from
public and private high schools this year, even with 1991
graduation numbers (see table 7). Until the current school year,
the number of high school graduates had been on a generally
downward trend (in the peak year of 1977, nearly 3.2 million
students graduated).
However, a significant increase in the number of persons
graduating from high school is anticipated during the mid-1990s
because of the increase in high school enrollment. About
three-fourths of youth today earn a regular high school diploma
by age 19. [NOTE: Others earn a diploma at older ages or
receive a high school equivalency certificate. Data from the
Bureau of the Census indicate that about 86 percent of 25- to
29-year-olds have completed high school or its equivalent.] The
high school completion rate (including those who complete an
equivalency degree) for 19- and 20-year-old whites was 87 percent
in 1990, up one percentage point since 1973. During the same
time period, the gap between white and black students narrowed,
as blacks reached a completion rate of almost 78 percent in 1990,
an increase of about ten percentage points. The completion rate
for Hispanic students is 60 percent.
SCHOOLS EMPLOY NEARLY 7.7 MILLION
About 3.7 million persons will be employed as elementary and
secondary school teachers and as faculty in colleges and
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universities. Other administrative, professional, and support
staff of educational institutions will add another 4 million.
About 2.8 million elementary and secondary school teachers will
teach in U.S. classrooms this fall (see chart 2), up slightly
from the number employed in 1991. The number of senior
instructional staff members (faculty with the rank of instructor
or above) at the college level is expected to be about 868,000,
slightly higher than 1991 (Table 4).
COLLEGE ENROLLMENT AT AN ALL-TIME HIGH
The number of college students enrolled in public and
private colleges and universities this fall is expected to reach
an all-time high of 14.3 million students.
In October 1991, a record high proportion -- 62 percent --
of new high school graduates attended college. College
enrollments have reached new peaks, even though the population of
18- to 24-year-olds has decreased in recent years. Higher
attendance rates for 18- to 24-year-olds, older persons and women
largely account for the increase.
Only modest increases in college enrollment are anticipated
through the mid-1990s, since the traditional college-age
population will continue to decline for several more years.
EARNED DEGREES REACH NEW PEAK
The number of degrees earned at colleges and universities
during 1992-93 are expected to reach all-time highs in all
categories except first professional degrees. Estimates are:
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-6-
associate degrees, 490,000; bachelor's degrees, 1,131,000;
master's degrees, 345,000; and doctorates, 41,000. First
professional degrees (medicine, theology, and law), will match
the 1985 high of 75,000.
HIGHER EDUCATION SPENDING RISES
Colleges and universities will spend about $172 billion in
1992-93 (see table 6 and chart 3), up 5 percent in the past year.
Since 1982-83, spending by colleges and universities is up 36
percent, after adjusting for inflation. The forecast for the
average expenditure per full-time (equivalent) college student
for 1992-93 is $16,600, up 25 percent since 1982-83. The figures
cover all campus outlays, including salaries, construction and
maintenance costs, and operation of research facilities. On
average, tuition covers approximately 25 percent of the total
per-pupil expenditure.
###
NOTE TO EDITORS:
Attached are tables prepared by the National
Center for Education Statistics.
More detailed education statistics may be obtained from the
Digest of Education Statistics, Projections of Education
Statistics, and The Condition of Education, which are prepared by
the National Center for Education Statistics, U.S. Department of
Education. These publications may be ordered from the U.S.
Government Printing Office (GPO) using the stock number and
prices below. The Condition of Education, 1992 provides
statistical indicators, charts, and text which describe important
trends in American education and is available from the GPO (SN
065-000-00505-1; $25.00 a copy). Also available from the GPO are
the Digest of Education Statistics, 1991, a detailed compendium
of education data, (SN 065-000-00468-2; $25.00) i and Projections
of Education Statistics to 2002, a compilation of projections of
key education statistics, (SN 065-000-00473-9; $12.00).
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Table 1. - - Estimated number of participants in elementary and secondary
education and in higher education: Fall 1992
[In millions]
All levels
Elementary and secondary schools
Institutions
(elementary,
of higher
Participants
secondary,
education
and higher
Total
Public
Private
education)
Total
69.6
52.7
46.8
5.9
16.9
Enrollment¹
61.9
47.6
42.3
5.4
14.3
Teachers and faculty
3.7
2.8
2.4
0.4
2 0.9
Other professional,
administrative, and
support staff
4.1
2.3
2.1
0.2
1.7
I Includes enrollments in local public school systems and in most private schools (religiously affiliated and
nonsectarian). Excludes subcollegiate departments of institutions of higher education, residential schools for
exceptional children, and Federal schools. Elementary and secondary includes most kindergarten and some
nursery school enrollment. Excludes preprimary enrollment in schools that do not offer first grade or above.
Higher education comprises full-time and part-time students enrolled in degree-credit and nondegree-
2 credit programs in universities, other 4-year colleges, and 2-year colleges.
Includes full-time and part-time faculty with the rank of instructor or above.
NOTE.--The enrollment figures include all students in elementary and secondary schools and colleges and
universities. However, the data for teachers and other staff in public and private elementary and secondary
schools are reported in terms of full-time equivalents. The staff data for institutions of higher education
include all full-time and part-time professional, administrative, and support personnel. Because of
rounding, details may not add to totals.
SOURCE: U.S. Department of Education, National Center for Education Statistics, unpublished
projections and estimates. (This table was prepared August 1992.)
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Table 2. - - Enrollment in educational institutions, by level of instruction,
and by type of control: Fall 1982 to fall 1992
[In thousands]
Level of instruction and
Fall
Fall
Fall
Fall
Fall
type of control
1982
1987
1990¹
1991 2
1992²
All levels
57,591
58,254
60,160
61,189
61,888
Public
49,262
49,981
51,964
53,013
53,527
Private
8,330
8,273
8,196
8,176
8,362
Elementary and secondary
schools³
45,166
45,488
46,450
47,032
47,601
Public
39,566
40,008
41,224
41,839
42,250
Private
2
5,600
5,479
5,226
5,193
5,351
Kindergarten through
grade 84
31,361
32,165
33,978
34,422
34,855
Public
27,161
27,933
29,888
30,353
30,663
Private
2
4,200
4,232
4,090
4,069
4,192
Grades 9 through 12
13,805
13,323
12,472
12,610
12,746
Public
12,405
12,076
11,336
11,486
11,587
Private
2 1,400
1,247
1,136
1,124
1,159
Higher education⁵
12,426
12,767
13,710
14,157
14,287
Public
9,696
9,973
10,741
11,174
11,277
Private
2,730
2,793
2,970
Preliminary data.
2,983
3,011
²Estimated.
³Includes enrollments in local public school systems and in most private schools (religiously affiliated and
nonsectarian). Excludes subcollegiate departments of institutions of higher education, residential schools for
exceptional children, and Federal schools.
3Includes most kindergarten and some nursery school enrollment. Excludes preprimary enrollment in schools
that do not offer first grade. This undercount of preprimary enrollment is particularly significant for private
schools. According to data collected by the U.S. Bureau of the Census, public and private nursery school and
kindergarten 1991. enrollment of 3- to 5-year-olds grew from 4.9 million in October 1981 to 63 million in October
⁵Includes full-time and part-time students enrolled in degree-credit and nondegree-credit programs in
institutions. universities, other 4-year colleges, and 2-year colleges. Excludes students in noncollegiate postsecondary
NOTE.-Because of rounding, details may not add to totals.
SOURCE: U.S. Department of Education, National Center for Education Statistics, Digest of Education
Statistics, 1992.) 1992 (forthcoming): and Projections of Education Statistics to 2002. (This table was prepared August
SEP-02-1992 19:25 FROM
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94567739
P.10
Table 3. - - Enrollment in public elementary and secondary schools,
by region and State: Fall 1982 to fall 1992
[In thousands]
Region and state
Fall
Fall
Fall
Fall
Fall
1982
1987
1990
1991
1992²
United States
39.568
40,010
41,224
41,839
42,250
Northeast
7,674
7,252
7.282
7,370
7,461
Connecticut
486
465
4G9
47S
488
Maine
212
212
215
y
217
220
Massachusetts
909
825
834
842
863
2
New Hampshire
160
166
173
174
189
New Jersey
1,093
1,090
3
1,173
1,110
1,126
New York
2,719
2,594
2,598
2,645
2,633
Pennsylvania
1,784
1,669
1,668
1,667
1,701
135
139
3
Rhode Island
140
141
142
Vermont
91
93
96
97
99
Midwest
10,139
9,870
9,937
10,038
10,055
Illinois
1.880
1,S11
1,821
1,851
1,826
Indiana
1.000
964
955
958
968
Iowa
505
481
484
3
491
475
Kansas
407
421
437
3
446
448
Michigan
1,589
1,582
2
1,675
1,587
1,601
Minnesota
715
721
756
3
776
779
Missouri
803
802
812
823
833
Nebraska
269
268
274
3
278
275
3
North Dakota
117
119
118
118
117
Ohio
1,860
1,793
1,772
,
1.758
1,787
South Dakota
124
127
129
3
132
132
Wisconsin
785
772
798
822
810
South
13,945
14,419
14,807
14,926
15,117
Alabama
724
729
722
3
726
730
Arkansas
433
437
436
2
438
441
Delaware
93
96
100
2
102
106
District of
Columbia
91
86
81
2
80
81
Florida
1.485
1,665
1,862
3
1,932
1,967
Georgia
1.054
1,111
1.152
3
1.177
1,208
651
643
636
3
Kentucky
634
621
Louisiana
784
793
785
3
695
766
Maryland
699
684
715
3
736
766
Mississippi
468
506
502
s
502
497
North Carolina
1,097
1,086
1,087
3
1,092
1,121
Oklshoma
594
584
579
579
572
South Carolina
609
615
622
3
627
636
Tennessee
828
824
825
3
832
835
Texas
2,986
3237
3.383
3,436
3,408
Virginia
976
979
999
1.016
1,056
West Virginia
375
344
322-
3
320
306
West
7,807
8,468
9.198
9,505
9,617
Alaska
89
107
114
115
114
Arizona
510
572
640
z
674
685
California
4,065
4,488
4,950
5,140
5,260
Colorado
545
560
574
3
593
586
Hawaii
162
166
172
3
174
182
Idaho
203
212
221
s
226
214
Montana
152
152
153
153
150
Nevada
151
168
201
3
212
214
New Mexico
269
287
302
297
311
Oregon
448
456
485
3
499
483
Utah
370
423
448
3
454
449
Washington
739
776
840
869
872
Wyoming
102
98
98
3
99
93
Estimated by reporting States.
Actual 1991 data.
"Projected by NCES.
"Data for 1982 exclude schools on Federal bases.
NOTE-Includes most kindergarten and some nursery school enrollment. Because of rounding, details may not
add to totals.
SOURCE: U.S. Department of Education. National Center for Education Statistics, Common Core of Data survey, "Early
Estimates: Key Statistics for Public Elementary and Secondary Education: School Year 1990-91;" Digest of Education
Statistics. 1992 (forthcoming); and Projections of Education Statistics to 2002 (This table was prepared August 1992.)
SEP-02-1992 19:25 FROM
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Table 4. - - Number of teachers in educational institutions, by level of
instruction and by type of control: Fall 1982 to fall 1992
[In thousands]
Level of instruction and
Fall
Fall
Fall
Fall
Fall
type of control
1982
1987
1990¹
19912
1992²
All levels
3,168
3,425
3,585
3,645
3,669
Public
2,639
2,832
2,984
3,041
3,061
Private
529
593
602
604
608
Elementary and secondary
teachers³
2,458
2,632
2,751
2,786
2,802
Public
2,133
2,279
2,397
2,431
2,443
Private
1
325
353
354
355
358
Elementary teachers
1,413
1,564
1,680
1,705
1,715
Public
1,182
1,307
1,426
1,451
1,460
Private
1
231
257
254
254
255
Secondary teachers
1,045
1,068
1,072
1,081
1,086
Public
951
973
972
980
983
Private
1
94
95
100
101
103
Higher education
instructional faculty4
710
793
834
859
868
Public
506
553
586
610
618
Private
204
240
248
249
250
Preliminary data.
²Estimated.
³Includes teachers in local public school systems and in most private schools (religiously affiliated and
nonsectarian). Excludes subcollegiate departments of institutions of higher education, residential schools for
exceptional children, and Federal schools. Also excludes preprimary teachers in schools without a first grade.
Teachers are reported in full-time equivalents.
⁴Includes full-time and part-time faculty with the rank of instructor or above in universities, other 4-year
colleges, and 2-year colleges.
NOTE- Because of rounding, details may not add to totals.
SOURCE: U.S. Department of Education, National Center for Education Statistics, Digest of Education
Statistics, 1992 (forthcoming); and Projections of Education Statistics to 2002. (This table was
prepared August 1992.)
SEP-02-1992 19:26 FROM
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94567739
P.12
Table 5.-- - Total expenditure per student in educational institutions, by level
of instruction and by type of control, and average salary for
public school teachers: 1982-83 to 1992-93
[In current and constant dollars]
School year
Level of instruction and
type of control
1982-83
1987-88
1990-91¹
1991-921
1992-93¹
Current dollars:
Expenditure per pupil in public
elementary and secondary
schools²
$3,203
$4,654
$5,841
$6,100
$6,300
Higher education expenditure
per full-time equivalent
student³
9,168
13,820
15,682
16,000
16,600
Public
7,932
11,873
13,308
13,600
14,100
Private
12,948
19,579
23,033
23,800
24,700
Constant 1991-92 dollars:
Expenditure per pupil in public
elementary and secondary
schools⁴
4,511
5,553
6,028
6,100
6,100
Higher education expenditure
per full-time equivalent
student⁴
12,910
16,489
16,185
16,000
16,100
Public
11,169
14,165
13,735
13,600
13,700
Private
18,233
23,359
23,771
23,800
24,000
Average salary for public
school teachers:5
Current dollars
20,695
28,034
32,977
34,413
35,800
Constant 1991-92 dollars⁴
29,141
33,447
34,034
34,413
34,700
Estimated.
2 Data represent total expenditures (excluding "other" current expenditures) per pupil in average daily attendance.
3Data represent current-fund expenditures and additions to plant value per full-time-equivalent student.
"Data adjusted by the Consumer Price Index, U.S. Department of Labor. The 1992-93 CPI estimate is derived
from 1992 and 1993 data in Budget of the United States Government, Fiscal Year 1993, prepared by the Office of
Management and Budget.
⁵Data for 1982-83, 1987-88, 1990-91, and 1991-92 are from the National Education Association. The
1991-92 data are preliminary.
SOURCES: U.S. Department of Education, National Center for Education Statistics, unpublished projections
and estimates; and National Education Association, Estimates of School Statistics, 1991-92 (copyrighted 1992).
(This table was prepared August 1992.)
SEP-02-1992 19:27 FROM
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94567739
P.13
Table 6.- Total expenditures of educational institutions, by level of instruction
and by type of control: 1982-83 to 1992-93
[In billions]
School year
Level of instruction and
type of control
1982-83
1987-88
1990-91¹
1991-921
1992-931
Current dollars
All levels
$212.1
$313.4
$402.3
$425.2
$445.4
Public
172.8
253.2
327.4
346.6
363.1
Private
39.3
60.2
75.0
78.4
82.2
Elementary and secondary
expenditures
128.7
188.0
246.8
261.1
273.8
Public
118.4
172.7
227.6
240.9
252.5
Private¹
10.3
15.3
19.2
20.1
21.2
Higher education expenditures²
83.4
125.4
155.6
164.0
171.6
Public
54.3
80.5
99.8
105.7
110.6
Private¹
29.0
44.9
55.8
58.3
61.0
Constant 1991-92 dollars³
All levels
$311.3
$373.9
$415.2
$425.2
$431.9
Public
253.6
302.1
337.8
346.6
352.2
Private
57.7
71.8
77.4
78.4
79.8
Elementary and secondary
expenditures
189.0
224.3
254.7
261.1
265.5
Public
173.8
206.0
234.9
240.9
244.9
Private¹
15.1
18.3
19.8
20.1
20.6
Higher education expenditures²
122.4
149.6
160.5
164.0
166.4
Public
79.8
96.0
103.0
105.7
107.2
Private¹
42.6
53.5
57.6
58.3
59.2
Estimated.
²Includes current-fund expenditures and additions to plant value.
3Data adjusted by the Consumer Price Index, U.S. Department of Labor. The 1992-93 CPI estimate is derived from 1992
and Budget. 1993 data from Budget of the United States Government, Fiscal Year 1993, prepared by the Office of Management and
NOTE--Because of rounding, details may not add to totals.
SOURCE: U.S. Department of Education, National Center for Education Statistics, Digest of Education Statistics, 1992
(forthcoming); Projections of Education Statistics to 2002, and unpublished projections and estimates. (This table was
prepared August 1992.)
SEP-02-1992 19:27 FROM
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94567739
P.14
Table 7.- - Number of graduates of educational institutions, by level
of education completed: 1982-83 to 1992-93
[In thousands]
Level of education
School year
completed
1982-83
1987-88
1990-91
1991-92¹
1992-931
High school graduates, total
2,888
2,773
2,511
2,485
2,509
Public
2,598
2,500
2,263
2,251
2,273
Private¹
290
273
247
234
236
College and university
graduates:
Associate degrees
456
435
470
480
490
Bachelor's degrees
970
995
1,084
1,105
1,131
Master's degrees
290
299
337
344
345
First-professional degrees²
73
71
73
74
75
Doctor's degrees
33
35
40
40
41
Estimated.
2 Includes degrees in medicine, optometry, osteopathic medicine, pharmacy, podiatry, chiropractic, veterinar
medicine, dentistry, law, and theological professions.
NOTE.- - Because of rounding, details may not add to totals.
SOURCE: U.S. Department of Education, National Center for Education Statistics, Digest of Education
Statistics, 1992 (forthcoming); Projections of Education Statistics to 2002; and unpublished estimates.
(This table was prepared August 1992.)
Chart 1 --Enrollment in educational institutions, by level:
Fall 1970 to fall 1992
In millions
50
SEP-02-1992 19:28 FROM
40
Elementary
30
20
Secondary
TO
10
Higher education
0
1970
1980
1990
1975
1985
1992
Fall
SOURCE: U.S. Department of Education, National Center forEducation Statistics,
Digest of Education Statistics, 1992 (forthcoming).
94567739 P.15
Chart 2--Teachers in educational institutions, by level:
Fall 1970 to fall 1992
In millions
2.0
1.6
SEP-02-1992 19:28 FROM
1.6
1.4
Elementary
1.2
Secondary
1.0
0.8
Higher education
0.6
TO
0.4
0.2
0
1970
1980
1990
1975
1985
1992
Year
SOURCE: U.S. Department of Education, National Center for Education Statistics,
94567739 P.16
Digest of Education Statistics, 1992 (forthcoming).
Chart 3--Expenditures of educational institutions in constant 1991-92
dollars, by level: 1970-71 to 1992-93
In billions
$300
SEP-02-1992 19:28 FROM
280
260
240
220
Elementary and secondary
200
schools
180
160
140
120
100
TO
Higher education institutions
80
60
40
20
0
1970
1980
1990
1975
1985
1992
School year beginning -
SOURCE: U.S. Department of Education, National Center for Education Statistics,
94567739 P.17
Digest of Education Statistics, 1992 (forthcoming).
SEP-08-1992 13:18 FROM US DEPT OF EDUCATION
TO
94566218 P.01
456-2216
7702
FAX To: Carol Ashune
Aarhus
456-6218
Carol-
Here is further detail on The
ime are discussed yerkerday --
international comparison
education spending.
calling you need further information
Brimp
SEP-08-1992 13:19 FROM US DEPT OF EDUCATION
TO
94566218
P.02
INTERNATIONAL COMPARISON OF EDUCATION SPENDING
Compared with most of its international competitors, the United States continues to fund
education generously. In 1988, the latest year for which international data are available,
the United States spent $4131 per elementary and secondary student - more than any
comparable developed country except Switzerland (see attached Table).
U.S. per pupil spending is well ahead of that of Canada, the United Kingdom,
France, Japan, and Germany.
Furthermore, the 1988 figure represents a significant increase over past years. The
United States spent 17.1 percent more (in current dollars) per pupil in 1988 than in
1986 -- an increase greater than those for 13 other countries in the comparison (only
the increases for Denmark (20 percent) and Ireland (17.6 percent) were greater).
These figures are calculated by determining current expenditures for both public and
private elementary and secondary schools, and dividing by the number of pupils enrolled at
these levels. Conversion to U.S. dollars was done using the Purchasing Power Parity
Index, developed by the Organisation for Economic Cooperation and Development (OECD).
Data on the 1988-89 school year were obtained from the 1991 Digest of Education
Statistics (for the United States) and the 1991 UNESCO Statistical Yearbook (for all other
countries). The result is per pupil expenditures in comparable U.S. dollar terms.
These figures may differ from calculations published elsewhere, for the following reasons:
The figures in this analysis are based on both public and private schools. Some
reports published over the past two years focused solely on public spending, which in
a system like ours, does not give a complete picture of support for education. Some
of these analyses have gone so far in their calculations as to divide public spending
by public and private enrollment --- a method guaranteed to produce distorted results.
Data represent those portions of current expenditures and enrollments identified by
countries as attributable to pre-primary, primary, and secondary schools. (U.S. pre-
primary figures include spending and enrollment only for kindergartners and those
younger children enrolled in preschool programs run by public elementary schools,
while data for other countries tend to include a wider range of preschool programs.)
Other analyses have included expenditures labeled in the UNESCO source as "other"
and "not distributed," and therefore not directly attributable to the levels of
education of interest here. The United States reports no expenditures in these
categories.
It would be difficult still to contend that our education problems stem primarily from
"underfunding" schools as compared with other nations, or that a general funding increase
will solve these problems. Our analysis is the most recent to demonstrate that, in
financial terms, the United States supports elementary and secondary education as well as
or better than its international competitors.
Attachment
SEP-08-1992 13:19 FROM US DEPT OF EDUCATION
TO
94566218
P.03
INTERNATIONAL COMPARISON OF EDUCATION EXPENDITURES
Current Expenditures o
per pupil
Pre-Primary, Primary
and Secondary Levels
(in US dollars)
Rank
Switzerland
1988
$4,315
1
United States
1988
$4,131
2
Canada
1983
$3,791
3
Norway
1988
$3,716
4
Denmark
1988
$3,671
5
Sweden
1988
$3,468
6
Austria
1988
$2,939
7
United Kingdom
1988
$2,768
8
Belgium
1987
$2,262
9
Netherlands
1988
$2,261
10
France
1988
$2,221
11
Japan
1988
$2,200
12
Germany (FRG)
1988
$2,168
13
Australia
1987
$2,065
14
New Zealand
1988
$1,541
15
treland
1987
$1,365
16
Notes:
Currency conversion: The 1988 GDP PPP Index was used to convert
currencies for all countries except Ireland, Australia and Belgium, for which
the 1987 GDP PPP index was used. Both indexes were produced by the
Organisation of Economic Cooporation and Development, 1991.
Date sources: US data were taken from the Digest of Education Statistics,
1991. All other data are from the UNESCO Statistical Yearbook, 1991.
US figures are for K-12 only.
U.S. Department of Education
Office of Policy and Planning
March 1992
SEP-08-1992 13:13 FROM US DEPT OF EDUCATION
TO
94566218 P.01
456-2216
7702
FAX To: CAROL Ashure
Aarhus
456-6218
Carol-
Here is further detail on the
ime are discussed yerderday --
international comparison of
education spending.
Call if you need further information
Bormo
SEP-08-1992 13:14 FROM US DEPT OF EDUCATION
TO
94566218
P.02
INTERNATIONAL COMPARISON OF EDUCATION SPENDING
Compared with most of its international competitors, the United States continues to fund
education generously. Las 1988, the latest your for which international data are available,
the United States spent $4131 per elementary and secondary student - more than any
comparable developed country except Switzerland (see attached Table).
U.S. per pupil spending is well ahead of that of Canada, the United Kingdom,
France, Japan, and Germany.
Furthermore, the 1988 figure represents a significant increase over past years. The
United States spent 17.1 percent more (in current dollars) per pupil in 1988 than in
1986 - an increase greater than those for 13 other countries in the comparison (only
the increases for Denmark (20 percent) and Ireland (17.6 percent) were greater).
These figures are calculated by determining current expenditures for both public and
private elementary and secondary schools, and dividing by the number of pupils enrolled at
these levels. Conversion to U.S. dollars was done using the Purchasing Power Parity
Index, developed by the Organisation for Economic Cooperation and Development (OECD).
Data on the 1988-89 school year were obtained from the 1991 Digest of Education
Statistics (for the United States) and the 1991 UNESCO Statistical Yearbook (for all other
countries). The result is per pupil expenditures in comparable U.S. dollar terms.
These figures may differ from calculations published elsewhere, for the following reasons:
The figures in this analysis are based on both public and private schools. Some
reports published over the past two years focused solely on public spending, which in
a system like ours, does not give a complete picture of support for education. Some
of these analyses have gone BO far in their calculations as to divide public spending
by public and private enrollment -- a method guaranteed to produce distorted results.
o
Data represent those portions of current expenditures and enrollments identified by
countries as attributable to pre-primary, primary, and secondary schools. (U.S. pre-
primary figures include spending and enrollment only for kindergartners and those
younger children enrolled in preschool programs run by public elementary schools,
while data for other countries tend to include a wider range of preschool programs.)
Other analyses have included expenditures labeled in the UNESCO source as "other"
and "not distributed," and therefore not directly attributable to the levels of
education of interest here. The United States reports no expenditures in these
categories.
It would be difficult still to contend that our education problems stem primarily from
"underfunding" schools as compared with other nations, or that a general funding increase
will solve these problems. Our analysis is the most recent to demonstrate that, in
-
financial terms, the United States supports elementary and secondary education as well as
or better than its international competitors.
Attachment
132.
TABLE 23. Postsecondary enrolment related to'relevant age group, by level, age group and sex, Canada, 1985-86 to 1989-90
TABLEAU 23. Effectifs postsecondaires par rapport à la population des groupes d'âge correspondants, selon le niveau, le groupe d'âge
et le sexe, Canada, 1985-86 à 1989-90
Characteristics
1985-86
1986-87
1987-88
1988-89
1989-90
Caractéristiques
percent pourcentage
FULL-TIME À PLEIN TEMPS
Community college Collège communautaire:
17-year-olds enrolled related to 17-year-old
M.
7.4
7.8
7.1
6.9
7.1
population Effectifs scolaires des 17 ans
F.
10.2
10.6
9.8
9.6
10.2
en proportion de la population de 17 ans
T.
8.8
9.2
8.4
8.2
8.6
18-21-year-olds enrolled related to 18-21 age
M.
11.4
11.4
11.4
11.4
11.2
group Effectifs scolaires des 18-21 ans en
F.
12.5
13.0
13.4
13.7
13.6
proportion de la population des 18-21 ans
T.
12.0
12.2
12.4
12.5
12.4
22-24-year-olds enrolled related to 22-24 age
M.
3.3
3.3
3.3
3.2
3.2
group Effectifs scolaires des 22-24 ans en
F.
2.4
2.6
2.8
2.9
3.0
proportion de la population des 22-24 ans
T.
2.8
3.0
3.0
3.1
3.1
25-29-year-olds enrolled related to 25-29 age
M.
1.0
1.0
1.0
1.0
1.0
group Effectifs scolaires des 25-29 ans en
F.
0.9
0.9
1.0
1.0
1.1
proportion de la population des 25-29 ans
T.
0.9
1.0
1.0
1.0
1.0
University Université:
Undergraduate 1er cycle:
18-21-year-olds enrolled related to 18-21 age
M.
13.0
13.4
14.0
14.4
14.8
group Effectifs scolaires des 18-21 ans en
F.
14.6
15.4
16.8
17.8
18.7
proportion de la population des 18-21 ans
T.
-13.8
14.4
15.4
16.1
16.7
22-24-year-olds enrolled related to 22-24 age
M.
8.9
9.2
9.2
9.4
9.7
group Effectifs scolaires des 22-24 ans en
F.
6.6
7.2
7.5
7.9
8.6
proportion de la population des 22-24 ans
T.
7.8
8.2
8.3
8.7
9.2
25-29-year-olds enrolled related to 25-29 age
M.
2.1
2.1
2.1
2.1
2.1
group Effectifs scolaires des 25-29 ans en
F.
1.4
1.5
1.5
1.6
1.7
proportion de la population des 25-29 ans
T.
1.7
1.8
1.8
1.8
1.9
30-34-year-olds enrolled related to 30-34 age
M.
0.6
0.6
0.6
0.6
0.6
group Effectifs scolaires des 30-34 ans en
F.
0.6
0.6
0.7
0.7
0.6
proportion de la population des 30-34 ans
T.
0.6
0.6
0.6
0.6
0.6
35-39-year-olds enrolled related to 35-39 age
M.
0.2
0.3
0.3
0.3
0.3
group Effectifs scolaires des 35-39 ans en
F.
0.4
0.4
0.4
0.4
0.5
proportion de la population des 35-39 ans
T.
0.3
0.3
0.3
0.4
0.4
40-49-year-olds enrolled related to 40-49 age
M.
0.1
0.1
0.1
0.1
0.1
group Effectifs scolaires des 40-49 ans en
F.
0.2
0.2
0.2
0.2
0.2
proportion de la population des 40-49 ans
T.
0.1
0.1
0.2
0.2
0.2
133
TABLE 23. Postsecondary enrolment related to relevant age group, by level, age group and sex, Canada, 1985-86 to 1989-90 Continued
TABLEAU 23. Effectifs postsecondaires par rapport à la population des groupes d'âge correspondants, selon le niveau, le groupe d'âge
et le sexe, Canada, 1985-86 à 1989-90 suite
Characteristics
1985-86
1986-87
1987-88
1988-89
1989-90
Caractéristiques
percent - pourcentage
Graduate 2ᵉ et 3ᵉ cycles:
22-24-year-olds enrolled related to 22-24 age
M.
1.0
1.0
1.0
0.9
0.9
group Effectifs scolaires des 22-24 ans en
F.
0.7
0.7
0.8
0.8
0.8
proportion de la population des 22-24 ans
T.
0.8
0.9
0.9
0.9
0.9
25-29-year-olds enrolled related to 25-29 age
M.
1.2
1.2
1.2
1.3
1.3
group Effectifs scolaires des 25-29 ans en
F.
0.7
0.7
0.7
0.7
0.8
proportion de la population des 25-29 ans
T.
1.0
1.0
1.0
1.0
1.0
30-34-year-olds enrolled related to 30-34 age
M.
0.7
0.7
0.7
0.7
0.7
group Effectifs scolaires des 30-34 ans en
F.
0.4
0.4
0.4
0.4
0.4
proportion de la population des 30-34 ans
T.
0.5
0.6
0.6
0.6
0.6
35-39-year-olds enrolled related to 35-39 age
M.
0.3
0.3
0.3
0.3
0.4
group Effectifs scolaires des 35-39 ans en
F.
0.2
0.2
0.2
0.3
0.3
proportion de la population des 35-39 ans
T.
0.3
0.3
0.3
0.3
0.3
40-49-year-olds enrolled related to 40-49 age
M.
0.1
0.1
0.1
0.1
0.1
group Effectifs scolaires des 40-49 ans en
F.
0.1
0.1
0.1
0.2
0.2
proportion de la population des 40-49 ans
T.
0.1
0.1
0.1
0.1
0.1
PART-TIME À TEMPS PARTIEL
University Université:
Undergraduate - 1er cycle:
18-21-year-olds enrolled related to 18-21 age
M.
1.0
1.0
1.1
1.1
1.2
group Effectifs scolaires des 18-21 ans en
F.
1.4
1.4
1.5
1.6
1.8
proportion de la population des 18-21 ans
T.
1.2
1.2
1.3
1.4
1.5
22-24-year-olds enrolled related to 22-24 age
M.
2.6
2.6
2.6
2.8
2.8
group Effectifs scolaires des 22-24 ans en
F.
3.2
3.3
3.5
3.7
3.8
proportion de la population des 22-24 ans
T.
2.9
3.0
3.1
3.2
3.3
25-29-year-olds enrolled related to 25-29 age
M.
2.1
2.0
1.9
2.0
1.9
group Effectifs scolaires des 25-29' ans en
F.
2.7
2.7
2.8
2.9
2.8
proportion de la population des 25-29 ans
T.
2.4
2.4
2.4
2.4
2.4
134
TABLE 23. Postsecondary enrolment related to'relevant age group, by level, age group and sex, Canada, 1985-86 to 1989-90 Concluded
TABLEAU 23. Effectifs postsecondaires par rapport à la population des groupes d'âge correspondants, selon le niveau, le groupe d'âge
et le sexe, Canada, 1985-86 à 1989-90 - fin
Characteristics
1985-86
1986-87
1987-88
1988-89
1989-90
Caractéristiques
percent - pourcentage
Undergraduate 1er cycle Concluded fin:
30-34-year-olds enrolled related to 30-34 age
M.
1.7
1.6
1.5
1.5
1.4
group Effectifs scolaires des 30-34 ans en
F.
2.4
2.4
2.4
2.5
2.3
proportion de la population des 30-34 ans
T.
2.0
2.0
2.0
2.0
1.9
35-39-year-olds enrolled related to 35-39 age
M.
1.4
1.3
1.2
1.2
1.2
group Effectifs scolaires des 35-39 ans en
F.
2.6
2.5
2.5
2.6
2.5
proportion de la population des 35-39 ans
T.
2.0
1.9
1.9
1.9
1.8
40-49-year-olds enrolled related to 40-49 age
M.
0.7
0.7
0.8
0.8
0.7
group Effectifs scolaires des 40-49 ans en
F.
1.8
1.9
2.0
2.1
2.1
proportion de la population des 40-49 ans
T.
13
1.3
1.4
1.4
1.4
Graduate 2ᵉ et 3ᵉ cycles:
22-24-year-olds enrolled related to 22-24 age
M.
0.2
0.2
0.2
0.2
0.2
group Effectifs scolaires des 22-24 ans en
F.
0.1
0.1
0.2
0.2
0.2
proportion de la population des 22-24 ans
T.
0.2
0.2
0.2
0.2
0.2
25-29-year-olds enrolled related to 25-29 age
M.
0.5
0.5
0.4
0.4
0.5
group Effectifs scolaires des 25-29 ans en
F.
0.4
0.4
0.4
0.4
0.4
proportion de la population des 25-29 ans
T.
0.4
0.4
0.4
0.4
0.4
30-34-year-olds enrolled related to 30-34 age
M.
0.5
0.5
0.4
0.4
0.4
group Effectifs scolaires des 30-34 ans en
F.
0.3
0.4
0.4
0.4
0.4
proportion de la population des 30-34 ans
T.
0.4
0.4
0.4
0.4
0.4
35-39-year-olds enrolled related to 35-39 age
M.
0.4
0.4
0.4
0.4
0.4
group Effectifs scolaires des 35-39 ans en
F.
0.3
0.3
0.4
0.4
0.4
proportion de la population des 35-39 ans
T.
0.4
0.4
0.4
0.4
0.4
40-49-year-olds enrolled related to 40-49 age
M.
0.2
0.2
0.2
0.2
0.2
group Effectifs scolaires des 40-49 ans en
F.
0.2
0.2
0.3
0.3
0.3
proportion de la population des 40-49 ans
T.
0.2
0.2
0.2
0.2
0.3
135
TABLE 24. Percentage distribution¹ of part-time undergraduate and graduate enrolment, by age, Canada and provinces,
1979-80 and 1989-90
TABLEAU 24. Répartition en pourcentage¹ des effectifs universitaires des 1er, 2c et 3° cycles à temps partiel,
selon l'âge, Canada et provinces, 1979-80 et 1989-90
Undergraduate
Graduate
Province and age
1ᵉʳ cycle
2ᵉ et 3e cycles
Province et âge
1979-80
1989-90
1979-80
1989-90
percent - pourcentage
Canada:
2
3
--
-
19 years and less - ans et moins
20-24 years ans
23
22
8
5
25-29 " - "
24
21
33
26
42
30-39 " - "
34
31
43
40-49 "
- "
12
18
11
22
50 years and over - ans et plus
5
6
4
4
Total
No. nbre
199,264
265,589
30,572
39,033
Newfoundland - Terre-Neuve:
-
-
19 years and less - ans et moins
4
8
20-24 years ans
24
31
5
2
26
25-29 11
- If
26
21
36
30-39 " - If
34
27
44
48
40-49 H "
10
11
11
22
50 years and over - ans et plus
3
2
4
2
Total
No. nbre
3,213
3,784
304
564
Prince Edward Island fle-du-Prince-Edouard:
19 years and less - ans et moins
4
5
-
20
15
-
20-24 years ans
25-29 "
"
20
17
-
30-39 "
- "
33
30
-
...
40-49 "
- If
13
23
-
50 years and over - ans et plus
9
10
-
...
Total
No. nbre
724
842
8
See footnote(s) at end of table.
Voir note(s) à la fin du tableau.
Canadian Embassy
Ambassade du Canada
WASHINGTON
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198 study 1988
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AMI
#aresult as a 5% census sample
from a professor of sociology at Muniv.
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Pat Kell's
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2222
Chicago Thibune
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John Fund
Dennis AEI Doyle
212-
census data
from 1988
once at Ed
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Sr. Res Fellow B now
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wimes 7/6/92 Don lambro
WTIMES
Don Lambro 703-569-0182 (h)
636-3000 (o) X 3168
WSJ editorial
6/26/92
lead editorial in Review & #Outlork
pm A16
Title "The Educathn Revolution"
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FROM WSJ-LA
09.10.1992 17:02
NO. 1 P.1
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FROM WSJ-LA
09.10.1992
17:02
NO. 1
P.
2
Thursday, June 25, 1992
A14
THE WALL STREET JOURNAL THURS
REVIEW & OUTLOOK
School Cho
By MARTHA C. BROWN
is freedor
The Education Revolution
The educational choice movement is
Choice all
gaining ground. Today. Education Secre-
reject the
"What this country needs is a G.I.
of educational malpractice. Out of 66
tary Lamar Alexander is expected to
taxpayer
Bill for Kids," says Education Secre-
public high schools, only 19 graduate
propose providing $1,000 vouchers to one
seling for
tary Lamar Alexander. The educa-
more than half their. students, and
million low- and moderate-income parents.
many bel
tional choice proposal he announces
many of those are nearly illiterate.
The administration's move comes in the
family. m
today would provide $1,000 scholar-
Chicago's public school teachers recoil
wake of state efforts.
Like If
in horror from sending their children
California's Choice in Education
wants pri'
ships so that one million low- and mod-
to the very system they teach in; 46%
League has announced that it has enough
public scl
erate-income parents could send their
signatures to put a state school voucher
playing fl
kids to the school of their choice, pub-
send their kids to private schools. Chi-
referendum on the ballot. In March. the
lic or private.
cago's Catholic schools, which have a
Wisconsin Supreme Court upheld the right
1 Some 47 years after the original
racial mix similar to the city's popula-
of poor Milwaukee parents to choose pri-
G.I. Bill opened up both public and
tion, graduate more than 99% of their
vate schools paid for with tax dollars. A
campaign for school choice legislation in
publ
private educational opportunities for
high school students. More than three-
millions of war veterans, Secretary
quarters go on to college.
Pennsylvania is temporarily stalled after a
shor
Alexander wants to do the same for
Recent lawsuits filed by the Insti-
preliminary victory last year. Four Ohio
low-income children. His initiative is
tute for Justice on behalf of parents in
legislators recently introduced a biparti-
san proposal for school vouchers. Illinois's
make U.:
á radical step from an administration
both Los Angeles and Chicago ask that
house minority leader, Republican Lee
worst. Le
often criticized as having no domestic
control of the children's share of state
Daniels, 8 former opponent of school
would leve
agenda.
school aid be transferred to their par-
choice, now favors it.
Anothe
The administration program is fur-
ents SO they can enroll them in other
private SC
Uncertified Teachers
state if t)
ther evidence that empowering par-
public or private schools. They argue
As proponents of school choice hail
Frank Ke
ents with choice is an idea whose time
that the abysmal quality of their public
these breakthroughs. public school parti-
at the Uni
Has come. Support for choice cuts
schools violates their children's right
sans quake-and their arguments for shor-
in Educat
across income, political and racial
to equal educational opportunities.
ing up the public school wall grow more
will accep
lines. Its major opponent is the en-
John Jenkins, one of the parents
illogical and self-serving.
ture of lar
trenched educational bureaucracy
bringing sult, says he tried to improve
Days before the Wisconsin decision,
private S(
that benefits from the status quo.
Chicago's schools but ran into a brick
Chicago's Board of Education president
fund priva
In California, where a choice initia-
wall, and that choice is the only re-
said vouchers would encourage "providers
ment regt
tive will probably be on this Novem-
course for the schools and more
[of education]
that are out just to make
This S
a buck. They'll have uncertified teachers,
led some
ber's ballot, teachers unions vow to
broadly for the hope-starved inner
uncertified facilities." How much does his
would reft
spend $14 million to defeat it. The
city; "Quality education could change
board pay for certified teachers? Does he
basis for
measure would grant students who
conditions overnight."
read the test scores? The reports of rapes
private et
wanted to attend a private school a
The Bush administration believes
and shootings In certified city schools?
according
$2,600 annual state scholarship. Over-
its new G.I. Bill is the fastest way to
Harry Weinberg, superintendent of the
expert on
all, it would save big bucks since the
bring good schools back into the in-
San Diego County public schools, also wor-
says that
scholarship would represent less than
ner cities. Far from destroying public
ries that parents will fall prey to no-
an institu
half the average cost of a public-school
education, choice would in fact
account private education purveyors. He
won't ent
education.
strengthen public schools as they
asks in Education Week, "If a private
private SC
Educrats did everything they could
learn to improve and compete for stu-
'school spends public money foolishly, to
Choice
whom can taxpayers complain?" He for-
of state-su
to block the initiative, from trying to
dents. Mr. Alexander expects many
gets parents can withdraw children If the
church an
intimidate potential petition signers to
parents will use the $1,000 scholar-
school doesn't shape up.
tablishme
using a Los Angeles cable-TV channel
ships to send their children to public
Another of his concerns: "Unregulated
One says:
to propagandize. Julie Korenstein, an
magnet or special-education schools.
private schools would be free to promote
specting a
L.A. school board member, said that
Others would find good private schools
their particular religious, social, or ethnic
prohibitin
under choice "you end up with bigotry
finally within their means. A surpris-
agendas at the expense of our democratic
If givil
and ultimately with a fascist type of
ing 37% of private schools charge less
traditions." At the core of these traditions
for religio
society." Helen Bernstein, head of the
than $1,000 in annual tuition, and the
United Teachers of Los Angeles, sug-
average charge is only $1,915 a year.
gests choice will result in more Los
The fate of the proposal is now up
Angeles riots. She told CBN News: "If
A C
to Congress. Senator Ted Kennedy,
this initiative passes, I will be more
whose own children attended private
than happy to go on record to predict
schools, has been a fierce opponent of
By DAVID M. JONES
recession
the kinds of uprisings that we saw will
educational choice. So have most other
George Bush leaned on Alan Greenspan
inflation
be nothing compared to what will hap-
Democrats, but their opposition may
about as hard as he could this week. Mr.
sought to
pen a few years down the line."
be weakening as the overwhelming
Bush's call to action may indeed succeed in
ward glid.
Starr Parker, a small-business
support for choice among the poor and
provoking the Fed chairman to Iower inter-
below the
owner active in promoting choice in
minorities becomes more clear.
est rates. But the president's public plea
potential
also represents a new turn in an interest-
At the sal
the black community. calls such state-
Recently. Democratic Senator Bill
ing story. It is a story that reflects
encourage
ments "absurd demagoguery." "Polls
Bradley voted for a pilot program that
the limits of central bank chairmen and
previous
show over 70% of minorities support
would allow students to use federal
central banks. It is also the story of
asset pric
school choice." she told us. "The rich
money to attend private schools. "I'm
Alan Greenspan.
The
Extended Page
2. 1
school choice," she told us. "The rich
money to attend private schools. "I'm
Alan Greenspan.
considera
have choice now. When I was on wel-
not saying choice is the answer, but
All Fed chairmen, including Mr. Green-
span's per
fare, there was no way I could put my
many of our schools are so bad we
span's predecessors, have one main eco-
fellow Fc(
child in a good school. It's time we
have to try something dramatic," he
nomic lever at their disposal: short-term
desired. §
stop condemning the poor to a monop-
told us. "Assumptions about how gov-
interest rates. In his first term as Fed
recognize
oly education system."
ernment provides services are chang-
Chairman, Mr. Greenspan used this lever
interpreti
The same activism is apparent in
ing all over the world, and maybe It's
to nearly its maximum potential. As his
signals of
Chicago, where 410,000 public school
time Americans challenge our own
second term begins, Mr. Greenspan may
slow to I
students are subjected daily to a form
ways of thinking on that."
be finding that his policy lever has reached
sheet" re
its limit. This is not Mr. Greenspan's
"fault." It is the fault of a Congress that
Trying a New Yitzhak
failed to allow changes on the fiscal side
that would help the nation move faster into
In an election variously described
Labor will push for extensive au-
economic recovery. It is to some degree too
as a referendum on the settlements,
the "fault" of Mr. Bush, who could have
tonomy for Palestinians in the occu-
tried harder than he did to prevent the tax
the economy and the Middle East
pied territories, but only slight border
hike that resulted from the 1990 budget
peace process, Israeli voters have put
changes. Any major concessions, like
agreement.
Yitzhak Rabin's Labor Party back into
those negotiated in the Camp David
Let's look, though. at Mr. Greenspan's
power after 15 years of Likud rule.
accords, would have to be approved by
odyssey. He first used his lever to deal
Clearly, the vote was a call for change.
two-thirds of the Knesset and are un-
successfully with the 1987 stock mar-
Whether Labor can supply it is an-
likely. Mr. Rabin has also said he
ket crash. Then he and his colleagues
Handlity
to
the
T Clarke fax
336-7380
PAGE
1
LEVEL 1 - 2 OF 27 STORIES
Copyright 1992 World Times, Inc.
WorldPaper
September, 1992
SECTION: NEW AMERICAN AGENDA; Pg. 15
LENGTH: 1011 words
HEADLINE: Society's dumping ground
BYLINE: BY TIMOTHY LIGHT IN KALAMAZOO, USA; Timothy Light, a former college
president and provost, is on the faculty of Western Michigan University.
public schools in Chicago, only 19 graduate more than half of their
students. It is no wonder, then, that 46 percent of Chicago public school
teachers send their own children to private schools, 99 percent of which
graduate and 75 percent go on to college.
Educators claim that schools have become the dumping ground for many of the
problems that society finds insoluble. As one prominent private school head
said in frustration: "We are rapidly destroying our cities, and that is why
LEVEL 1 - 5 OF 27 STORIES
Copyright 1990 The Heritage Foundation
Heritage Foundation Reports
April 28, 1990
SECTION: THE HERITAGE LECTURES; No. 257
LENGTH: 3903 words
HEADLINE: Business Leadership and Education Reform: The Next Frontier
Switzerland among the world's industrialized nations.
In contrast to our $4,806 per student spent in the public schools, American
private schools spend a median amount of $900 per student at the elementary
level, and $1,500 at the secondary level, a
...
...
Policy and Finance told us that 69 percent of parents with children
attending the city's public schools would enroll their children in private
schools, if they could afford it. We know from recent newspaper reports that
numerous Chicago political, civic, and educational leaders - minority and
majority leaders alike -- send their children to private schools of choice.
TM
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PAGE
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1990 The Heritage Foundation, April 28, 1990
A 1985 study by the Chicago Panel on Public School Policy and Finance told us
that 69 percent of parents with children attending the city's public schools
would enroll their children in private schools, if they could afford it. We
know from recent newspaper reports that numerous Chicago political, civic, and
educational leaders - minority and majority leaders alike - send their
children to private schools of choice. And, what is perhaps the best-informed
of all endorsements, 46 percent of the children of Chicago public school
teachers who live in the city attend private schools, as compared with only
22 percent of all school-age children in Chicago.
Double Standard. Obviously, many of those with the purchasing power, those
with the ability to pay both taxes and private school tuition, exercise their
choice option with no residual guilt about having abandoned the public school
system, though some of them will not hesitate to use this self-serving
"abandonment" argument to deny the same choice option to the 70 percent of
poverty-level parents whose children constitute a $2.3 billion captive market
for Chicago public education.
Many of those who would deny choice to the poor are the most vocal proponents
of "parental empowerment" and "equity." Excuse me for thinking that this whole
situation, this double standard, just reeks with inconsistency, with cynicism,
with contemptuous condescension, and with an insulting and ultimately disabling
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5TH STORY of Level 1 printed in FULL format.
Copyright 1990 The Heritage Foundation
Heritage Foundation Reports
April 28, 1990
SECTION: THE HERITAGE LECTURES; No. 257
LENGTH: 3903 words
HEADLINE: Business Leadership and Education Reform: The Next Frontier
BYLINE: By Patrick J. Keleher, Jr.; Patrick J. Keleher, Jr. is President of
TEACH America in Chicago, Illinois, and Vice President of The City Club of
Chicago
BODY:
In November of 1987, Dr. William J. Bennett fired a shot heard 'round the
world of education. It was not a warning shot across the bow. No, it was a
full Bennett broadside at the Chicago public school system, which the then-U.s.
Secretary of Education branded the "worst in America."
I was about ten feet away from Secretary Bennett when he made that since
much-quoted remark, later to become the title for theChicago Tribune's stunning
investigative report on Chicago public education. The Education Secretary
released his broadside at a press conference after a visit I had helped arrange
with the executives of Chicago United, a business-civic organization for which I
was public policy director. Chicago United was to become the spearhead of our
business community's deep and abiding involvement in the most radical school
reform experiment in United States history.
Some things just cannot be sugarcoated, or should not be even if they can,
and the public education disaster in this city was one of those things. Anyhow,
Dr. Bennett's many talents do not extend, thank heavens, to sugarcoating.
From results that had just been released, he knew that 35 of the 54 high
schools scoring in the bottom percentile nationwide on the ACT exam were Chicago
schools. Over half of our 64 high schools were in the lowest percentile on a
national test taken by our "best and brightest," our college-bound youngsters.
He knew that between 43 and 53 percent of our entering freshmen drop out of high
school, and that dropout rates reach 67 percent in the inner city. He knew that
only one out of three of those who do graduate can read at the twelfth-grade
level. One out of three.
Illiterate Graduates. Perhaps Secretary Bennett knew that one of our large
employers, Citicorp Savings of Illinois, each week rejects 840 out of every
1,000 applicants for its entry-level teller and clerical positions, because the
job seekers cannot complete the forms. And perhaps he knew that almost half of
the students in one of our neighborhood adult literacy programs are Chicago
public high school graduates graduates, not dropouts. They are considered
"functionally illiterate," that is, they cannot read above the sixth grade
level. Yet they have been awarded high school diplomas.
Doesn't this make you wonder about truth in labeling, about material
misrepresentation, about false certification, and about "product" liability?
Less cynically, what does this say about the institutional ethics, about the
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1990 The Heritage Foundation, April 28, 1990
integrity, about the fundamental honesty of an urban educational system that
would so misrepresent to its students their readiness for participation as
self-sustaining members of our democracy?
Last year, at The Heritage Foundation's excellent conference, "Can Business
Save Education?" I talked about how the Chicago business community teamed up
with parent and community leaders to form a new political force to counter that
of the education establishment.
Coalition Building. My position was that, by itself alone, business could
not "save" education, but that by closing ranks in coalition with parent and
community leaders, which is precisely what we did, business could help bring
about meaningful school reform. We formed a new political counterweight that
the legislators in Springfield simply had to deal with. We worked at the
grassroots level, we bypassed the establishment, WE stuck together, we worked
the media, and WE came up with the most sweeping reform legislation in the land.
As its most revolutionary feature, the Chicago Public School Reform Act
establishes a local school council at each of our 540 elementary and secondary
schools. Each eleven-member council is composed of six parents, two community
representatives, two teachers and the principal. The council has three major
responsibilities: to adopt a School Improvement Plan, to adopt a budget to
implement that plan based upon a lump sum allocation, and to decide whether to
terminate the incumbent principal and select a new one or to retain the
incumbent -- in either case to sign the selected principal to a four-year
performance contract.
We were called "romantics" for our belief that indigenous leaders would
emerge in each community to fill the 5,400 slots for parent, community and
teacher representatives. Our harshest critics very often were some middle-class
minority leaders, who confidently predicted that parents and community members
in our poorest neighborhoods were too apathetic and uninformed to get involved
with governing their local schools.
"Romantics" Vindicated. How wrong they were. Last October we held our first
local school council elections. Some 313,000 persons turned out to chose from
more than 17,000 candidates for the 5,400 council seats. Our turnout rate was
three times the average rate for suburban school board elections. How romantic,
indeed.
Another sign that reform has arrived was the Interim Board of Education's
elimination of 544 jobs from the central administration and its reallocation of
the resulting resources -- $40 million -- as discretionary funds for the new
councils. Also, almost one-third of all principals have already left the
system, either because of voluntary early retirements or due to terminations by
the local school councils. I believe that the Chicago "meltdown" has been
arrested. Whether it has been reversed -- whether it can be reversed -- is yet
another question.
Last December, when the City Club of Chicago held its annual forum on
critical municipal issues, I voiced some early worries about the direction
school reform seems to be taking, worries about a new and limiting orthodoxy
that seems to be settling in on yesterday's reformers, many of whom are today's
education bureaucrats. Some have, in the very first year of the reform,
developed striking family resemblances to the bureaucrats they replaced.
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1990 The Heritage Foundation, April 28, 1990
The most telling resemblance, a veritabledeja vu, is their reductionist
approach to improving public education. Yes, we're back to money, back to more
and more tax dollars, as the cure-all for the system's many ailments. When you
blow the leaves away from the new bureaucrats' bear trap, everything reduces to
a single concept: money.
Besides my worry about the reformers' money fixation, I have another worry:
business executives' strangely aberrant behavior in the prsence of leaders of
the education establishment. Chester Finn has described this phenomenon in his
National Review article (February 24, 1989) titled with the double entendre
"Education as Funny Business."
Soft Standards. For some reason, business people seem to abandon their
critical instincts when dealing with educators. For some strange reason,
business leaders seem to be mesmerized by the titles, by the jargon, and perhaps
by the flag-waving that comes out of the incredibly powerful education
establishment. For whatever reason, business tends not to evaluate the
establishment by the tough bottom-line standards of performance and
accountability with which it evaluates all other goal-oriented operations. In
its strange metamorphosis, business appears almost schizophrenic as it exempts
the education establishment from the values, from the principles and from the
disciplines by which business relentlessly judges itself.
By not being as critical as it should be, by not applying its skills,
performance expectations and standards where appropriate to education, by
permitting education to operate as an artificial social construct without
genuine market or market-like constraints (that is, as a monopoly), by not
insisting on a return on its massive education investment with payback in the
form of increased academic achievement, by waiving cost/benefit justifications
where education is concerned, by relying too often on education advisors
hand-picked by the establishment, then accepting without challenge their
carefully selected and strained statistics, by all these practices business is
failing to provide the economic reality-check that education in this country so
desperately needs. This reality-check is something the business community, as a
deeply invested education stakeholder, is uniquely qualified to provide -- and
something that no other powerful institutional player, most certainly not
government, will provide if business fails to do SO.
When I was an operations reviewer in the Bell System, we had a maxim "Don't
expect what you don't inspect." Time after time I wonder whether business,
particularly big business, is really inspecting the education financials and
raising the questions that would be raised internally were 50 many bucks
yielding such a little bang.
Economic Reality-Check. Education is this country ---- public and private,
elementary, secondary, and postsecondary - is a mammoth $331 billion per year
enterprise employing 7 million persons, of whom 3.4 million are teachers. $269
billion is spent each year on public education. Public elementary and secondary
education costs the taxpayers $183 billion, or more than a billion dollars each
day of the average 180-day school year. Perhaps, like some of our dismal
education results, these numbers are of a magnitude too difficult to grasp
readily. But business must make the effort, and make it independently, with its
own experts, if it is to provide the economic reality-check.
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The current public K-12 per-pupil expenditure is estimated to be $4,806, an
amount that has increased 31 percent in the past decade after adjustment for
inflation. Our per capita expense for precollegiate public education is second
only to Switzerland among the world's industrialized nations.
In contrast to our $4,806 per student spent in the public schools, American
private schools spend a median amount of $900 per student at the elementary
level, and $1,500 at the secondary level, a most important point to which I
shall be returning, and one that must certainly pique the curiosity of any
business person with the slightest interest in benchmarking for quality and
cost-effectiveness.
Competition Absent. I think you would agree that the business value most
conspicuous by its absence in business dealings with the education establishment
is the value of free market competition, to my thinking the most "American" of
all business values. Why is this? Why this abandonment of principle? -
especially when we know the dangers of monopoly arrangements, such as the
artificial (and limitless) pricing levels that result when you have, as we do in
public education, a captive demand side (glaringly so in an urban center like
Chicago, with 70 percent of its public schoolers coming from poverty-level
households), a captive demand side coupled with a supply side artificially
restricted by labor contracts and state teacher credential requirements.
Under these conditions the sky is the limit for spending or, judging from the
spending plans now on the establishment's drawing board, perhaps the limit is
outer space, which is another way of saying monopolies know no limits.
Why isn't business out in front, insisting that market and market-like
constraints be built into public education as a condition for fiscal support?
Why isn't business out on the point in every state capital, leading the advocacy
effort for alternative teacher certification, for provatization, for
deregulation, for genuine accountability legislation, and for the ultimate form
of accountability - parental choice of public or private education underwritten
by vouchers, tuition tax credits or tax rebates?
That is the kind of public policy leadership, of systemic intervention, where
business should be taking the lead as the one and only institutional player with
the clout and the self-interest to provide the economic reality-check I've been
talking about, without which we may as well resign ourselves to an economic
hemophilia that's only just begun.
Is American business, big business especially, on the verge of succumbing to
what Milton Friedman and others have been warning us about for some time now,
that is, the acceptance of the socialist view that political mechanisms, not
market mechanisms, are the appropriate way to determine the allocation of scarce
resources to alternative uses? It seems to me that is where business, wittingly
or not, is heading, and not just on the education issue -- ironically, at a time
when the socialist non-solution is being rejected en masse around the globe.
Gray World. If any public policy area demonstrates the bankruptcy of an
unprincipled "pragmatism" as a guiding philosophy, that area is education. I
have heard top business lobbyists explain away their capitulation to
education-establishment lobbyists as "what happens when you live in a world of
gray. Those business lobbyists are dead wrong. Their world may seem gray to
them, but it is very much a black-and-white (or perhaps, green) world to their
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counterparts in the establishment. If I've learned anything working with the
Illinois General Assembly and studying what passes for school reform in this
country, it is that the establishment, especially the unions, never lose. They
never lose, certainly not here in Illinois where -- our landmark school-reform
act notwithstanding -- after receiving $480 million new tax dollars statewide
for public elementary and secondary education in the current 1990 fiscal year, a
15 percent increase over last year, the establishment is back, targeting our
wallets for new tax revenues of anywhere from $500 million to $2 billion.
In the face of these escalating demands, the business community -- in
Illinois as elsewhere - doesn't say a word. It just keeps signing up its chief
executives for one blue ribbon committee after another, where all too often
their cooperation shades imperceptibly but predictably into co-option.
Why doesn't business confront the establishment with the research findings of
Walberg, Hanushek, Hood, Coleman and others who tell us, for example, that "the
available evidence suggests that there is no relationship between expenditures
and achievement of students, and that such traditional remedies as reducing
class size or hiring better trained teachers are unlikely to improve matters"?
Dangerous Metaphor. As someone who has been developing business-education
partnerships since before they became fashionable in the early eighties (I ran
the college relations operation at Illinois Bell), I have reluctantly -- very
reluctantly -- concluded that the once useful "partnership" metaphor has seen
its day and may in fact be dangerous if taken literally, especially when applied
to public education. The partnership metaphor, with its implied equality,
pretentiously blurs an important distinction in the relationship between
educators and the public that employs them, namely, that public education is an
agent of the general public. Its leaders are answerable to the taxpayers for
the human and financial resources entrusted to them.
Our democracy gets into trouble when this role relationship is muddled or
reversed. When educational leadership becomes a closed society - as education
seems to have become, at least in some quarters - when educational leadership
becomes an exclusive, politicized society whose dominant values too often appear
to be power, position, and perks, it is time for glasnost, time for openness,
time for inclusion, time - to the extent that this is necessary -- to reclaim
and reconceptualize the largely failed monopoly that is American public
education. As a business person and as a teacher of teachers, I have no doubt
whatsoever that this realignment of the terms of the relationship between
education and the general taxpaying public can be accomplished amicably, without
sacrificing either collegiality or cooperation.
Earlier I mentioned alternative teacher certification, accountability,
privatization, and other market-related education policy areas where, in my
considered judgment, American business leadership can and must provide an
economic reality-check. But the most important area, one where we have an
exciting confluence of the values of equity and sound economics, an area where
we are seeing a sea change in public attitudes, is choice --- parental choice in
education. What business does with the choice issue will be the litmus test of
its commitment to the market principles it professes.
We know from the August 1989 Gallup poll that, nationally, 60 percent of all
respondents and 67 percent of nonwhite respondents favor allowing students and
their parents to choose which public schools the students attend, regardless
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1990 The Heritage Foundation, April 28, 1990
of where they live. Similar results are reported in recent surveys by the
Minnesota Education Association and by the Minnesota Business Partnership.
A 1985 study by the Chicago Panel on Public School Policy and Finance told us
that 69 percent of parents with children attending the city's public schools
would enroll their children in private schools, if they could afford it. We
know from recent newspaper reports that numerous Chicago political, civic, and
educational leaders ---- minority and majority leaders alike -- send their
children to private schools of choice. And, what is perhaps the best-informed
of all endorsements, 46 percent of the children of Chicago public school
teachers who live in the city attend private schools, as compared with only
22 percent of all school-age children in Chicago.
Double Standard. Obviously, many of those with the purchasing power, those
with the ability to pay both taxes and private school tuition, exercise their
choice option with no residual guilt about having abandoned the public school
system, though some of them will not hesitate to use this self-serving
"abandonment" argument to deny the same choice option to the 70 percent of
poverty-level parents whose children constitute a $2.3 billion captive market
for Chicago public education.
Many of those who would deny choice to the poor are the most vocal proponents
of "parental empowerment" and "equity." Excuse me for thinking that this whole
situation, this double standard, just reeks with inconsistency, with cynicism,
with contemptuous condescension, and with an insulting and ultimately disabling
paternalism.
Some business leaders, particularly those affiliated with the City Club of
Chicago, understand the dimensions of equity and economics surrounding the
parental choice issue. They have taken note of the fact that we have been
overlooking a success story right under our noses: the 448 private elementary
and secondary schools (religious, independent, and proprietary) serving 125,237
youngster, nearly one out of four students in Chicago. In our inner city areas
meeting federal poverty guidelines, for example, 135 Catholic schools serve --
quietly and effectively, year in and year out - more than 42,000 students, of
whom 80 percent are minorities and 40 percent are non-Catholics. Their modest
tuition costs average $700 per elementary and $1,700 per high school student,
compared with $4,800 per student (K-12 combined) in the public schools.
For business leaders concerned with "what works," with benchmarks for quality
and cost-effectiveness, the models are right here under our noses.
Studying Success. Equity and economic responsibility demand that we no
longer pretend these exemplary, cost-effective schools do not exist. It is time
for business leadership to start studying the inner city success models, the
benchmarks right in their own backyards, rather than the deficit models to which
they have been misdirecting way too much of their attention.
Not long ago even William Bennett referredsotto voce to vouchers, preferring
not to use the sometimes inflammatory "V word," as he termed it. Without
pausing to consider why voucher talk has suddenly become respectable, why there
is an unprecedented openness on the part of former voucher opponents to at least
consider the merits of vouchers, tuition tax credits, and tax rebate proposals,
let me talk about how business can capitalize on the present opportunity for
discussing these alternatives publicly, at room temperature.
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When WE started the school reform movement, WE opened a Pandora's Box. Some
of yesterday's reformers, now into a new orthodoxy, seem closed to those of us
who would keep extending the frontiers, especially by pursuing the implications
of contextual reform, that is, reform of the fiscal environment in which
education functions.
We want to challenge some bedrock ideological assumptions, such as the
conventional wisdom that "public education" forever means subsidizing the
producers of education, and that it could never mean empowering (with vouchers
or their equivalents) the consumers of education, thus enabling them to choose
whatever education -- public or private -- they, the consumers, want.
Empowering Families. Starting with poverty-level families in urban school
districts, we would redistribute the redistribution, bypassing the education
producers altogether, and empowering families directly. We would expand upon
the new and unprecedented Milwaukee voucher plan of our respected colleague,
State Representative Annette "Polly" Williams.
Where approaches such as tax credits or rebates are more appropriate, we
would champion such approaches. All this would be done primarily in the name of
equity, parental empowerment, and economic cost-effectiveness, not in the name
of public school improvement, though that is a likely secondary consequence,
given the competitive energies that would be released.
Can the public schools be reformed? Our answer is an extremely cautious
"yes," provided we continue the reforms already under way, and -- most important
-- provided we bring about a "paradigm shift" in how we conceptualize "public
education, a shift from subsidizing education producers to empowering education
consumers, in open and competitive markets. It is absolutely incomprehensible
that this essential reform ingredient -- parental choice in competitive markets
was omitted as a national goal coming out of the President's and Governors'
Education Summit.
To remedy this omission, the City Club of Chicago, one of Chicago's oldest
business-civic organizations, has formed a new stand-alone division to focus on
the equity and economic issues I have been discussing, a division that will help
to ensure that business disciplines and values are factored into education
policy decisions.
The new City Club division is called TEACH America, the "TEACH" being an
acronym for Taxpayers for Educational Accountability and Choice. TEACH America
will be a coalition, a broad-based, nationally-networked, action-oriented,
bipartisan, multi-ethnic, grassroots coalition of business, parent, community,
taxpayer, private education, and other groups and individuals committed to
bringing about, among other important reform measures, the paradigm shift toward
direct subsidy of education consumers that I've been describing.
As president of TEACH America, I hope that you will get behind TEACH America
as we translate principle into public policy in the name of liberty and justice.
For all.
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.
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THE BUSH ADMINISTRATION RECORD ON STUDENT AID
During the Bush Administration:
--
The number of students receiving aid through the Education
Department's major programs has not decreased. Over 6.1 million
individuals are receiving aid in 1992;
The amount of aid made available through Federal funds increased
from $18.1 billion in 1989 to $22.1 billion currently estimated for
1992, an increase of 22 percent.
Federal spending increased from $10.1 billion in 1989. to $11.8
billion for 1992, an increase of 16 percent.
For Pell grants, the largest discretionary spending program, the
Administration requested $6.6 billion for 1993, the largest amount ever
requested or appropriated in any year.
One priority of the Bush Administration's proposals for student aid programs
this year was restoring the Integrity of the programs and reducing defaults,
in part by eliminating hundreds of schools that entice students into shoddy
programs, just to get their Federal funds.
--
Eliminating these schools -- primarily abusive proprietary schools
which have a 45 percent default rate - means that some thousands
of students would not be enrolled in shoddy programs; instead, they
would be protected from borrowing money they cannot repay,
defaulting and ruining their credit ratings and career opportunities.
In the recently enacted Higher Education Act, the Democrat controlled
Congress agreed with the Administration on this priority, passing many of Its
recommendations to reduce abuse and defaults.
The record is clear. The Bush Administration has
--
improved the quality and integrity of student aid programs,
--
increased spending more than ever before,
--
provided more ald than ever before.
THE BUSH ADMINISTRATION RECORD ON STUDENT AID
During the Bush Administration:
--
The number of students receiving aid through the Education
Department's major programs has not decreased. Over 6.1 million
individuals are receiving aid in 1992;
The amount of aid made available through Federal funds increased
from $18.1 billion in 1989 to $22.1 billion currently estimated for
1992, an increase of 22 percent.
Federal spending increased from $10.1 billion In 1989. to $11.8
billion for 1992, an increase of 16 percent.
For Pell grants, the largest discretionary spending program, the
Administration requested $6.6 billion for 1993, the largest amount ever
requested or appropriated in any year.
One priority of the Bush Administration's proposals for student aid programs
this year was restoring the Integrity of the programs and reducing defaults,
in part by eliminating hundreds of schools that entice students into shoddy
programs, just to get their Federal funds.
-
Eliminating these schools -- primarily abusive proprietary schools
which have a 45 percent default rate - means that some thousands
of students would not be enrolled in shoddy programs; instead, they
would be protected from borrowing money they cannot repay,
defaulting and ruining their credit ratings and career opportunities.
In the recently enacted Higher Education Act, the Democrat controlled
Congress agreed with the Administration on this priority, passing many of Its
recommendations to reduce abuse and defaults.
The record is clear. The Bush Administration has
--
improved the quality and integrity of student aid programs,
:
increased spending more than ever before,
--
provided more ald than ever before.
Administration of George Bush, 1991 / Sept. 3
its
And tonight, I'm told that right here at
yourselves, "In our communities, do we
Lewiston High, a new school year begins
value education and intellect? In the work-
for adults learning how to read, studying for
ing world, do we reward employees who go
if
it
their GED, living proof that it is never too
back to school, who learn new skills?"
late to learn.
Every member of the community must play
and
So far, I've spoken about our schools,
a role in this revolution.
l-class
about the revolution in American education
that must take place within these walls. But
And so parents, don't be a stranger to
the revolution can neither begin nor end
your child's school. Visit the classroom. Talk
here. Let me use a "word problem" to
to the principal. Get to know those teach-
more
social
show you why. Assume that a child goes to
ers. Make it your business to find out
school from kindergarten to 12th grade,
whether your child's school is drug-free.
coun-
CHECKER FINN'S SNAT,
and never misses a day. Subtract summers
And talk to your school board about school
and weekends, all the hours before and
choice, about the curriculum, about ways to
worry
after school. How much time do our chil-
erican
put your schools to use year round. But you
dren spend in classrooms?
don't have to have kids in school to have a
ebody
The answer may surprise you. It is 9 per-
But
stake in what happens in the classroom. For
cent; one-eleventh of their time. They
to
the older folks among us, don't complain
spend the rest of their lives elsewhere, at
do
about "kids today" or that the neighbor-
home, playing with friends, or in some
too
hood "isn't what it used to be." Get active
shopping mall.
from
in the community. Go into your schools. See
But what happens in that 91 percent
makes all the difference in the world. We
what you can do to help some kid or help
wor-
cannot blame the schools alone for that
your community.
what
dismal decline in SAT verbal scores. Your
And the same goes for local business lead-
Grad-
teachers are working hard. The drop shows
ers. Get involved, not just in word but in
Our
that we haven't taken the time to read to
deed. Think of it as community service,
our kids, to talk with them, to teach them
giving something back to this wonderful
the art of communication, how to think,
community, to the community your compa-
par-
how to write, how to speak clearly.
ny calls home. Or, think of it in terms of
What happens at home really matters.
just plain, sound business cultivating the
Funda-
And when our kids come home from school,
kind of future employees your company
Maine
do they pick up a book or do they sit glued
needs in order to keep ahead. But above all,
to the tube watching music videos? Parents:
act. Do something. Enlist in this great cru-
Don't make the mistake of thinking your
sade. And that really is the idea behind
goals
kids only learn from 9 a.m. to 3 p.m. You
2000,
what we call America 2000 communities,
are, and always will be, their first teachers.
school
States, cities, and towns that recognize the
Here's another shocking number. Chil-
adult
school as the living center of the communi-
dren in one study said the average parent
erican
ty.
spends just 15 minutes a day, 15 minutes, in
vio-
conversation with them. Most people spend
Today, the revolution has begun, in Colo-
that much time on coffee break.
rado, Oregon, in Tulsa and in Memphis.
he
ele-
The freshmen here today may think
And today I'm proud to say, right here in
And
they're a bit old to have their homework
Lewiston and in every corner of the State
new
checked. And maybe as parents, certainly
of Maine, it's begun. Together, we must
a
this President will admit, we can't keep up
ignite a renaissance in American education,
ongress
with the latest in computer technology. But
a revolution that will make this Nation
eschool
that doesn't mean we can't help. The Class
every bit the leader in the century ahead
drugs.
of '95 is old enough to sit down, to watch
that it has been since 1776.
I
the evening news, talk with their parents
Once again, my heartfelt thanks to you
the
about what's going on in the world, to take
for this warm welcome, as all across this
at
th
interests, opinions, and ideas seriously.
country we begin another school year. And
oth
But the future of American education de-
may God bless the United States of Amer-
in
lead.
pends on more than what happens in the
ica.
classroom or around the kitchen table. Ask
Thank you very, very much.
1217
I
THE white house
washington
Jennifer:
Ger. Embassy called
1980- 5,355 commercial banks,
incl. S&L
(distinction is 20
blurred.)
1991. 3,960 incl. 25 S&L
END OF 1781
159 COMMERCIAL
BANKS
11 CHARTER BANICS
148 TRUST + LOANS
Financial Sectn
Policy Dept of
Finance in OHowa
SEN. DOMENICI
Japan desk - economic section
- Fulianne Vance
OFFECE 224-6621
CHARLES GENTRY - AA
#Banks la. 80's
crystal Drive Anligh n 703/979-1668
1980 - total 86 banks,
MINORITY STAFF BUDGET COMMUTEE
Y** Bill
Citibanks 13 II 1991
Stall Dir.
6. William Hoagland
trust bants 7 1
224-0769
Fairfay
Station VA
regional 63 64
h 703/239-
long-term credit 3 3
2553
chief Economist 224-0566 1 Peter Taylor
Bethesda,
MD
source Bank of Japan
-
3
1990 - 40.7 million households
59.2% of households own homes
24.1 million own house
Kazij 3469479
- National census
-
THE WHITE house
WASHINGTON
more info, call:
Uli Nitzschke
298-4230
statistical info is
available
-on duty until 1pm.
-
MANUFACTURING PRODUCTIVITY INDEXES (1947-1992)
year
index
% growth
1947
21.2
1948
22
3.77
1949
20.8
-5.45
1950
24.2
16.35
years
% growth
1951
26.1
7.85 1980-1989
38.19
1952
27.2
4.21 1982-1992
+3300 +43.08
1953
29.6
8.82
1954
27.7
-6.42
1955
31.3
13.00
1956
32.5
3.83
1957
32.9
1.23
1958
30.6
-6.99
1959
34.5
12.75
1960
35.2
2.03
1961
35.3
0.28
1962
38.4
8.78
1963
40.7
5.99
1964
43.5
6.88
1965
48.2
10.80
1966
52.6
9.13
1967
53.6
1.90
1968
56.6
5.60
1969
59.1
4.42
1970
56.4
-4.57
1971
57.3
1.60
1972
63.3
10.47
1973
68.9
8.85
1974
67.9
-1.45
1975
61.1
-10.01
1976
67.4
10.31
1977
73.3
8.75
77 7/23.3 3.3/ = 2.81
1978
77.8
2.4%
6.14
77-82
1979
80.9
3.98
1980
78.8
-2.60
1981
80.3
882-92 for 82-92
1.90
1982
76.6
1983
80.9
1984
89.3
13.9% annur-4.61 INCR 10.38
1985
91.6
1986
94.3
1987
100
43% IN PRODUCT 2.58 2.95 6.04
1988
105.8
1989
108.9
INCR
5.80
2.93
1990
109.9
0.92
1991
107.5
-2.18
1992
109.6
1.95
SOURCE: The Fed
NOTE: The index for 1992 is that for June of 1992.
April
109
May
109.8
June
109.6
decade
% growth
% annual growth rate
1947-1949
-1.89
-0.94
1950-1959
42.56
4.02
1960-1969
67.90
5.93
1970-1979
43.44
4.1
1980-1989
38.20
3.66
1990-1992
-0.27
-0.13
3
ISEP 09 '92 09:46AM NAR
P.2/2
202-383-1016
USING AFFORDABILITY
Photo Copy Preservation
TABLE 22
HOUSING AFFORDABILITY
FOR THE UNITED STATES, 1970 - 1990
Median-Priced
Existing
Monthly
Payment
Median
Mortgage
P&I
as %
Family
Qualifying
Affordability Indexes
Single-Family
Year
Home
Rate"
Income
Income
Income**
Composite Fixed
ARM
Payment
$23,000
$140
17.0%
$ 9,867
$ 6,697
147.3
147.3
147.3
1970
8.35%
141
16.5
6,770
151.9
151.9
151.9
1971
7.67
10,285
24,800
11,116
7,183
154.8
154.8
154.8
1972
752
150
16.2
26,700
147.9
147.9
147.9
8.01
170
16.9
12,051
8,151
1973
28,900
9.02
12,902
9,905
130.3
130.3
130.3
32,000
206
19.2
1974
9.21
232
20.2
11,112
1235
123.5
1235
13,719
1975
35,300
248
19.9
14,958
11,888
125.8
125.8
125.8
1976
38,100
9.11
277
20.7
13,279
120.6
120.6
120.6
1977
9.02
16,010
42,900
9.58
230
17,640
15,834
111.4
111.4
111.4
22.4
1978
48,700
19,680
20,240
97.2.
97.2
97.2
10.92
422
25.7
1979
55,700
12.95
549
31.3
26,328
79.9
79.9
79.9
21,023
1980
62,200
677
36.3
32,485
68.9
68.9
68.9
15.12
22,388
1981
66,400
15.38
23,433
33,713
69.5
69.4
69.7
67,800
702
35.9
1982
616
30.1
29,546
83.2
82.0
85.6
1983
12.85
24,580
70,300
12.49
618
26,433
29,650
89.1
84.6
92.1
28.2
1984
72,400
27,735
29,243
94.8
89.6
100.6
609
26.2
1985
75,500
11.74
10.25
563
23.0
29,458
27,047
108.9
105.7
116.3
1986
80,300
9.28
565
21.9
30,970
27,113
114.2
107.6
122.4
1987
85,600
9.31
32,191
28,360
113.5
103.6
122.0
89,300
591
22.0
1988
10.11
660
23.1
34,213
31,662
108.1
103.6
114.3
1989
93,100
10.04
673
35,581
32,286
110.2
107.2
119.1
22.7
1990
95,500
Monthly
13.67%
$21,137
$28,701
73.6
73.6
73.6
$598
33.9%
1981:
Jan
$64,500
14.16
614
34.7
21,251
29,477
72.1
72.1
72.1
Feb
64,100
14.38
626
35.2
21,364
30,047
71.1
71.1
71.1
Mar
64,400
14.47
21,478
30,646
70.1
70.1
70.1
65,300
638
35.7
Apr
14.66
656
36.5
21,592
31,501
68.5
685
685
May
66,300
680
21,706
32,622
66.5
66.5
66.5
14.88
37.6
Jun
67,700
15.28
21,819
33,355
65.4
65.4
65.4
695
38.2
Jul
67,500
15.54
712
39.0
21,933
34,198
64.1
64.1
64.1
Aug
68,100
719
39.1
22,047
34,504
63.9
63.9
63.9
Sep
67,100
15.93
22.161
34,102
65.0
65.0
65.0
66,000
16.01
710
38.5
Oct
725
39.1
22,274
34,806
64.0
64.0
64.0
Nov
65,900
16.38
16.04
718
385
34,474
64.9
64.9
64.9
22,388
Dec
66,600
$22,475
$34,124
65.9
65.9
65.9
15.92%
$711
38.0%
1982:
Jan
$66,400
66.4
66.4
15.73
708
37.7
22,562
33,988
66.4
Feb
66,900
706
37.4
22.649
33,873
66.9
65.9
66.9
Mar
67,000
15.65
16.00
722
22,736
34,650
65.6
65.6
65.6
38.1
Apr
67,100
67,800
734
38.6
22,823
35,242
64.8
64.8
64.8
May
16.11
727
38.1
34,893
65.7
65.7
65.7
15.56
22,910
Jun
69,400
22,998
34,707
66.3
66.2
66.3
Jul
15.52
723
37.7
69,200
665
66.3
66.8
15.59
723
37.6
23,085
34,706
Aug
68,900
Sep
67,300
15.27
23,172
33,236
69.7
69.4
70.1
692
35.9
675
32,380
71.8
71.2
72.8
Oct
14.95
34.8
23,259
66,900
67,700
654
33.6
23,346
31,401
74.3
74.1
74.8
Nov
14.29
641
32.8
30,609
76.2
75.9
76.9
Dec
67,800
13.95
23,433
HAI
92
121.2
(composite)
37
1991 NATIONAL ASSOCIATION OF REALTORS
10:42
P02
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
224-3121
Pete V. Domenici
New Mexico
United States Senator
Washington, D.C.
Dear Colleague:
For the past several months, Democratic members of the Congress
have relentlessly tried to define the past decade as a time of abject failure.
Recently, however, we have also seen some of these same critics attempt
to recast themselves in a Republican image. By denying the successes of
the 1980s under Republican leadership, they hope to lay claim to the
principles that helped create those successes - Republican principles
such as opportunity, hard work, jobs, and most importantly economic
growth, the catalyst for rising national prosperity.
No matter how hard revisionists attempt to cloud recollections, the
historical record remains intact the 1980s under Republican leadership
was a decade of growth and rising prosperity. And, contrary to some
assertions, it was also a period in which government met domestic needs.
This document was prepared at my request by the Republican staff
of the U.S. Senate Budget Committee. It presents in 8 succinct fashion
the major issues of the 1980s from the economy to the environment. It
sets the record straight.
"SETTING THE RECORD STRAIGHT."
Economic Growth Through the Decade
ECONOMY
TRUE OR FALSE:
The U.S. economy ended the past
decade significantly stronger than it
began the decade.
The Decade of the 1980s
didn' t leave as any better
The 1980s under Republican leadership
off - FALSE!
included the longest peace-time expansion in
U.S. history, lasting 7-1/2 years.
No matter how many times they say it, it
Marry Americans, especially the younger
just wort wash. The record shows that the
generation, may not recall the trauma of 18%
1980s included the longest peace-time
inflation and interest rates as high as 21% -
expansion in U.S. history, producing 19
a product of the dismal economic
million new jobs.
performance of the late 1970s.
Since the start of the expansion in late
During the Bush Administration, inflation
1982, real Gross Domestic Product (GDP)
averaged 4.5%, less than half the inflation
has risen $1.1 trillion, adding nearly one-third
to the size of our economy.
during the Carter years.
Currently, inflation has fallen to roughly 3%
The rise in U.S. GDP was greater than the
and, except for a 1.1% rate in 1986, inflation
total level of GDP in Germany. Interest and
is now the lowest in a quarter of a century.
inflation rates have been cut by half. Since
1986, the U.S. export sector has been
Mortgage rates are now in the 8% range,
expanding at a record pace, making us the
half the rate President Reagan encountered
largest exporter in the world.
in the first year he took office.
For people this has meant:
Thanks to low interest rates, more people
can afford to own a home now than at any
real per-capita income and the proportion
of the population with jobs at new highs by
time since 1973.
the end of the decade,
During the late 1970s, taxpayers found
themselves paying higher taxes, not because
average family income reached $42,652 in
they were wealthier, but because inflation
1990, $15,000 more than before the
pushed them into higher tax brackets. This
expansion began,
"inflation tax" helped raise income taxes from
7.8% of GDP in 1976 to 9.6% in 1981, an $81
real per capita income rose 15.7%,
billion tax burden increase.
the unemployment rate reached a 16-year
During the 1980s, this "inflation tax was
low of 5.3% from a high of 10.7%,
terminated Revenues as a share of GDP fell
back to historical levels.
the misery index - the sum of inflation
and unemployment - down to 10.4 today
The 1970s malaise associated with out-of-
from 19.6 in 1980,
control inflation, Interest rates, and taxes,
was replaced in the 1980s with an
The poverty rate down to 121% from 13.7%.
environment that allowed people to plan their
lives and focus on the future with
confidence.
"SETTING THE RECORD STRAIGHT
Economic Growth Brought New Jobs
JOBS
Economic growth in the Reagan/Bush
TRUE OR FALSE:
era has meant jobs! Since the
expansion began more new jobs were
The economic well-being
created in the U.S. than in all the other major
of the U.S. is declining.
industrial countries and the rest of Western
- FALSE!
Europe combined.
Since the beginning of the 1980s
expansion, 19 million new jobs have been
Contrary to assertions that U.S. well-being
created. Today, 117.6 million Americans go
is falling, during the Bush Administration real
to work every morning, 18% more than 10
GDP per capita - the broadest measure of
U.S. strength - has been the highest in the
years ago.
world and the highest in U.S. history.
The share of the working-age population
with jobs during the Bush Administration has
U.S. GDP per capita was 1st among
averaged 62.3%, the highest in U.S. history.
countries in 1980 and is 1st in 1990. GDP
per capita of $16,231 in Germany and
The employment-population ratio for Black
$17,571 in Japan in 1990 remains well below
Americans during the Bush Administration
America's $21,931.
averaged a record 55.7%, up significantly
from 52.8% during the Carter years.
The level of GDP per capita during the
Bush Administration is higher than any other
Job growth was wide spread. Between
previous Administration - $3,350 more than
1982 and 1991, employment grew by more
during the Carter Administration.
than 15% in over half the states and by more
TRUE OR FALSE:
than 5% in 45 states.
All major demographic groups shared in
The econcey is in
the improvement in job opportunities that
recession and is getting
resulted from economic growth. Between
worse.
FALSEI
1982 and 1991, employment of Blacks was
up 29%, and Hispanics, a larger 52%.
The unemployment rate during the Bush
The 1990 recession, marked by two
Administration has averaged 6.1%, the lowest
quarters of GDP decline, has been followed
of any Administration back to Nixon. In
by 4 straight quarters of positive growth. The
comparison, unemployment averaged 6.5%
economy is now back to its previous peak,
during the deteriorating Carter years and
making this recession one of the shallowest
reached a peak of 10.7% in 1982 just as the
on record, as measured by GDP.
1980s expansion got underway.
0 Home construction has risen 38% since its
Job prospects are good in the U.S. relative
trough point at the beginning of 1991.
to other countries because the
unemployment rate is relatively low. The
@ 2 Expanding export production has
average U.S. unemployment rate during the
accounted for nearly two-thirds of economic
1980s was the sixth lowest in the world.
growth over the last 4 quarters.
The U.S. job market is very dynamic. The
3 As a result of increased international
number of people who began new jobs was
competitiveness, U.S. exports during the
significantly larger than the net change in
Bush Administration have grown by more
employment. Between 1987-89, 41.5 million
than one-quarter in just a little over 3 years.
persons went from not having a job in one
We have become, once again, the largest
month to have a job in the following month.
exporting nation in the world.
"SETTING THE RECORD STRAIGHT."
Quality Jobs for Americans
RICH VS. POOR
The 1980s provided economic
TRUE OR FALSE:
opportunity for all income levels, not
just the wealthy.
"The rich got richer, the
poor got poorer during the
Bush/Reagan years.
FALSE!
The expansion helped raise the
lowest incomes, boosting families
According to some assertions, 60% of the
into higher income brackets.
income gains went to the richest 1% of the
Tracking the income histories of
population between 1977 and 1989. But as
individual families shows that upward
the Congressional Budget Office, the
77
income mobility was the norm.
Treasury, and a recent Urban Institute study
confirm, that just wrong.
86 1/2%
Of the people making up the lowest
Including the Carter years in the 1977-89
study
fifth of the income distribution in the
data hurts all income levels and is most
late 1970s, more than half moved out
devastating to the poorest fifth of families.
URBAN
47%
of the lowest fifth and up the income
But incomes turned the corner during the
ladder over the next 10 years.
Bush/Reagan years; incomes increased for
Linst
each and every income level. While high
79
income groups did increase their means
The lower end of the income
during the 1980s expansion, so did all other
distribution displayed the most
income levels.
upward mobility. More people moved
up the income ladder from the bottom
The view that only the rich gained ignores
two-fifths than from the next higher
the significant income mobility of families,
two-fifths.
both up for people at the bottom and down
for people at the top.
The middle class gained. During
When upward mobility is taken into
the expansion, the middle class
account, families who started in the bottom
shrank because more of them moved
of the income distribution in 1977 saw their
above the $50,000 threshold and into
incomes rise T7% over the next nine years.
the high-income groups - they weren't
In contrast, those in the top one-fifth in 1977
saw their incomes rise only 5%.
moving down.
A recent study by the Urban Institute
Upward household income mobility
concluded:
is an American strength not a
*When one follows individuals rather than statistical
weakness.
groups defined by income, one finds that, on average, the
rich got a little richer and the poor got much richer."
*This pattern, however, may be surprising to the general
public, which has been led to believe that the poor were
literally getting poorer over the last decade or two, and that
the incomes of the rich were skyrocketing. That is simply
not true."
"SETTING THE RECORD STRAIGHT."
Reducing Taxes Across the Board
TAXES
The rich bear a greater share of the
TRUE OR FALSE:
cost of federal government than they
did before the 1980s tax changes went
"The Republican tax
into effect.
policies of the 1980s and
1990s were key to raising
the tax threshold and
Families in the top 20% of the income
lowering taxes on lower-
distribution pay 75% of all income taxes - an
income families." - TRUE!
increase of 10% since 1980.
The very rich, those in the top 1% of the
income distribution, saw their share of the
Prior to tax law changes enacted in the
income tax burden rise 65% during the
1980s, inflation pushed people into higher tax
Reagan/Bush years.
brackets, and reduced the value of the
standard deduction and the personal
Only 1.1% of total income taxes collected
exemption until they were almost
come from families in the lowest 40% of the
meaningless.
income distribution. As a result of
Republican tax policies, the share of income
The eroding standard deduction and
taxes paid by families in this group declined
personal exemption didn't mean too much to
70% since 1980!
the wealthy - but it meant a lot to those low-
and middle-income families struggling to
make ends meet
We started the 1980s with 16 individual
income tax brackets and a top
Large increases in the standard deduction
individual rate of 70% - now there are
and indexing the personal exemption took
three brackets and a top rate of 31%.
altogether nearly six million families off the
tax rolls.
If 1980 tax policy were still in effect, a head
Between 1977 and 1993, the number of
of household with three dependents and
families receiving the Earned Income Tax
$40,000 in income would have paid $3,900
Credit rose by 143% and the average credit
more in federal income taxes than they do
rose more than 300%.
now under current law.
TRUE OR FALSE:
Under 1980 tax policy, this hypothetical
family could claim four personal exemptions
It *Republicans were
totalling to $4,000. Under current tax policy,
responsible for Social
this family can claim exemptions worth
Security payroll tax
$9,200, an increase of 130%.
increases in the 1980s. -
FALSE!
This family pays a marginal tax rate of 15%
now. If 1980 law were still in effect, they'd
pay a marginal rate of 42%.
O In 1977, President Carter and the
Democratic Congress approved five payroll
tax increases which occurred in the 1980s.
O Prior to the Carter Administration, the
payroll tax rate for workers was scheduled to
hit 6.45% in 1990. But due to the Carter tax
increases, the payroll tax rate reached 7.65%
in 1990, a 19% tax rate hike.
"SETTING THE RECORD STRAIGHT."
Investing in Our Children
CHILDREN
TRUE OR FALSE:
Funding for programs designed to
assist our nation's children has
increased. with the emphasis on
During the 1980s, funding
health. nutrition, education and social
for programs designed to
assist children was
services.
reduced.
FALSE!
The problems facing our children are not
the result of diminished Federal spending.
President Bush's 1993 budget request for
children's programs reflects an increase of
66% since 1989, his first year in office. Total
Over the past 10 years, federal spending
on low-income programs, the majority of
funding for programs assisting children was
recommended at a level of $100 billion for
which is targeted toward assisting children,
has grown from $80 billion to $153 billion.
1993.
The Women, Infants and Children special
Despite more government spending, the
supplemental food program (WIC), renowned
problems facing children have escalated as
as one of the federal government's most
the stability of the family unit has
cost-effective, has increased its participation
deteriorated.
of mothers and infants in the program by
275% since 1980; WIC funding grew 347%
The poverty rate for children in married-
from 1980 through 1992, with the President
couple families in 1990 was 8.9%; the poverty
rate for children in families with only a female
requesting an additional $240 million for
head of household was 47.2%.
1993, bringing the annual program cost to
$2.8 billion.
Children who live in persistent poverty, the
Investment in early childhood education,
homeless, children growing up in
through Head Start, has demonstrated
dysfunctional families with abuse or neglect,
and children having children are all "at risk
dramatic savings in averted costs associated
of not becoming healthy, productive adults.
with special education, crime and Income
support
One-parent families have grown, from 3.8
million in 1970 (129 percent of all families)
Funding for Head Start has grown from
to 9.7 million in 1990 (28.1 percent of all
$735 million in 1980 to $2.2 billion in 1992 -
a 200% increase. For 1993, President Bush
families).
recommended an additional $600 million for
the program - an unprecedented 27% one-
Twenty-four percent of American children
lived with their mothers only in 1990, up from
year increase.
11.5 percent in 1970.
Under the President's budget, 779,206
children will receive a year of Head Start
before entering grammar school.
"SETTING THE RECORD STRAIGHT."
Emphasis on Education
EDUCATION
TRUE OR FALSE:
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 sínce 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-
While Congress appropriated $100 million
secondary education loans.
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
innovative ways of achieving the national
increase over those years.
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
Over 86 of Maine's 184 communities
increase of 110%.
have become Maine 2000 communities.
The U.S. sends 60% of its children to
study
higher education, second only to Canada in
Memphis 2000 has over 800 persons
out of
the world, and well above the 32% rate in
working to create a "new America school."
Money
Germany and 30% in Japan. And 51% of the
students are women, providing them more
Ohio, Texas, and 12 other states have
Magazine
opportunities than in Japan (3%) and
given state commissioners broad authority to
26%
free schools from regulation if they produce
Germany (2%).
"Why We Still
38%
results.
During the 1980s, reading proficiency,
increased dramatically for 17-year old
Minnesota has authorized the creation
Live Best
minority students. For Black students, those
of deregulated charter schools a new
Oct 91
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.
"SETTING THE RECORD STRAIGHT:*
Delivering Health Care
HEALTH CARE
American Health Care delivers the best
TRUE OR FALSE:
medicine in the world.
President Bush has
The U.S. health care system has fostered
presented a comprehensive
countless medical breakthroughs and new
program to control-costs
medical technologies that can prevent and
and spread access to
treat the most life-threatening diseases.
health care. - TRUE!
Our diverse and flexible system has
dispersed these advances rapidly throughout
The Presidents Health Reform Program
the country so that millions of Americans
builds on the strengths of the U.S. health
could benefit, vastly improving our health.
care system - consumer choice, innovation,
and state-of-the-art medicine - while
controlling costs and expanding access.
Since 1980:
life expectancy has increased from
The President's program would cut health
costs by $394 billion over 5 years by
73.7 to 75.3 years;
eliminating administrative waste and
the infant mortality rate has dropped
unnecessary paperwork, investing in
from 12 to 10.1 per 1000 live births;
preventive care, reducing defensive medicine
through medical malpractice reform, arming
years lost due to premature deaths
consumers with information about costs and
quality, and encouraging enrollment in cost-
have dropped 11%;
effective health plans.
deaths from heart diseases have
dropped from 202 to 166 per 100,000 people,
The President's program guarantees
access to health insurance for all poor
an 18% decline;
families through tax credits sufficient to buy
deaths from strokes and related
a basic health insurance plan ($3,750 for a
diseases have dropped from 40.8 to 29.7 per
family). Other low and middle income
families would get tax relief to partially offset
100,000 people, a 27% decline.
the costs of their health insurance. In total,
Federal investments in biomedical
some 70 million Americans will benefit.
research - $9.4 billion in 1993, up from $3.2
billion in 1980 - have led to many of the
The program provides insurance security
most important discoveries in medicine, such
for all Americans by prohibiting "preexisting
as discovery of the cause of cystic fibrosis,
condition clauses in health insurance and
paving the way for dramatic improvements in
ensuring workers can keep employer health
diagnosis and treatment, and possibly a cure.
insurance when changing jobs.
Since 1989, President Bush has increased
0 The President has increased investments
AIDS research funding by 39% to over $1.2
in preventive health care, particularly for
billion, AIDS prevention funding by 29% to
children:
$621 million, and AIDS. treatment funding by
Medicaid has been expanded to ensure care for
240% to $2.5 billion.
all poor pregnant women and poor children up to
age 19;
Spending for childhood immunizations is up by
148% since 1989 to $349 million),
a new Healthy Start infant mortality reduction
program will target areas of high infant mortality.
"SETTING THE RECORD STRAIGHT."
Housing: Building an American Dream
HOUSING
During the past twelve years, a variety
TRUE OR FALSE:
A
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 low-income 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 low-income families a 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 2 $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.
"SETTING THE RECORD STRAIGHT:*
Working to Hold Down Deficits
TWIN DEFICITS
Rebounding U.S. competitiveness and
TRUE OR FALSE:
strong export growth characterize the
"Tax cuts in the 1980s
Bush years.
led to the rise in the
Federal deficit." - FALSE!
During the Bush Administration, U.S.
exports have risen fully one-quarter to
the highest level in U.S. history.
Too much Federal spending, not too few
taxes, has been the main reason for large
Today U.S. exports amount to 11.5%
deficits in the 1980s. Over the decade, tax
of U.S. output, up from 8.5% at the
collections rose 81% Spending had risen
92% - 11% more than taxes.
beginning of the 1980s.
All major categories of exports gained
Federal revenues as a share of GDP during
during the Bush years. Exports of
the 1980s at 18.9% were higher - not lower
industrial supplies increased by 29%,
than their average of 18.5% over the previous
capital goods by 53%, automotive by
two decades.
37%, and consumer goods by 99%.
But Federal spending as a share of GDP
With exports now at $617.7 billion, the
rose to record highs. Over the 1980s
U.S. is once again the world's largest
spending averaged 23.1% - more than three
exporting nation.
percentage points higher then the 20% of the
previous two decades.
v. U.S. export growth has been roughly
twice the rate of the other G-7 major
The Budget Agreement of 1990 lowered
industrial countries during the Bush
budget deficits in the 1990s by $500 billion
but the agreement stopped short of
Administration.
controlling entitlement and other mandatory
As a result of rising U.S.
spending that has accounted for most of the
competitiveness, the U.S. trade position
rise in outlays in the 1980s.
has been brought back into balance.
The U.S. trade deficit on goods,
Over the next ten years, entitlement and
services, and income has shown a $140
other permanent mandatory programs are
billion improvement over the past five
projected to rise 89% and will account for
years culminating in a $1.4 billion
seven-eights of all Federal revenues
surplus in the first quarter of 1992.
collected.
President Bush's proposals for controlling
mandatory spending have been rejected by
the Democratic Congress.
@
Presidents Bush and Reagan submitted
plans in six out of the eight years since the
enactment of the Gramm-Rudman-Hollings
law in 1985, that would lead to a balanced
budget. Further, Congress has regularly
rejected these budgets and three times over
the past decade - in 1982, 1986, and 1992 -
declined to adopt a constitutional
amendment to balance the federal budget!
"SETTING THE RECORD STRAIGHT:"
Building America, Assisting Local Government
IMPROVING AMERICA'S INFRASTRUCTURE,
HELPING AMERICA GROW
The past ten years have brought an
increase in governments' contribution
TRUE OR FALSE:
toward building America.
The plight of America's
Contrary to popular impressions, public
cities is the result of `A
investment in infrastructure has not been
Decade of Neglect' by the
declining. Total public investment in
federal government.
intrastructure in the 1980s grew 2.2%
FALSE!
annually, roughly equal to the growth in the
1950s and greater than growth in the 1970s.
Since 1989, under President Bush, federal
Federal grants-in-aid to state and
spending for infrastructure has increased a
local governments has increased
from $88 billion in 1982 to a projected
nominal average of 6 percent annually, or
$182 billion in 1992- an increase of
27% annual real growth.
50 percent during the Bush
State and local government investment in
Administration alone.
infrastructure, which has averaged 70% of all
The non-entitlement federal grant
public investment over the past 35 years,
rose in the 1980s from $46.8 billion to $103.5
programs for state and local
governments - such as highways,
billion, or 9.2% annually.
airports, education, and social
services - have expanded strongly
Economic growth in the 1980s
during the past two years, growing
28.1% from fiscal year 1990 to 1992
provided enormous benefits to state
and local governments.
Direct federal assistance to cities
decreased during the 1980s, but
federal assistance to states increased
Rising jobs and incomes resulting from
the expansion of the 1980s allowed state and
proportionately.
local revenues to grow from $390 billion in
At the same time, state
1980 to $801 billion in 1990.
intergovernmental grants to local
State and local government expenditures
governments rose 94% from 1980 to
grew from $363 billion in 1980 to $765 billion
1989.
in 1990.
r State and local governments expanded
services dramatically during the boom of the
1980s, when revenues were plentiful and the
caseloads of income security programs were
reduced.
/ State and local employment continued to
rise throughout the 1980s. The number of
state and local public employees grew at a
rate of 14.7 percent as the country's
population grew only 9 percent.
"SETTING THE RECORD STRAIGHT."
Fighting Crime and Drug Abuse
CRIME AND DRUGS
TRUE OR FALSE:
During the past ten years funding for
combating crime and waging the war
on drugs has been dramatically
The Bush/Reagan War on
Crime is having a
increased.
significant impact on
illegal drug use in
Spending on federal law enforcement has
America. - TRUE!
grown from $4.3 billion in 1981 to an
estimated $15.8 billion in 1993. This has
paralleled a dramatic 22% decrease in the
national crime rate over the same period:
President Bush has given the Defense
rape decreased 33%
Department an active role in halting the flow
robbery was down 24%
of illegal drugs into the U.S. Federal cocaine
assaults fell by 14%
seizures in 1991 totaled nearly 108 metric
theft was down 25%
tons, a 10% increase over 1989.
U.S. Attorneys continue to aggressively
Last year Congress cut President Bush's
target and prosecute financial fraud and
requested increases for law enforcement
white collar crime. Between October 1988
agencies such as the FBI, DEA, INS, and
and March 1992, 2,300 Savings and Loan
Federal prisons by $472 million - a 64% cutl
crooks were convicted and more than $37
million in criminal restitution recovered.
Use of illicit drugs decreased dramatically
in the 1980s. According to the National
Since the early 1980s, Federal law
Institute on Drug Abuse (NIDA) 1991
enforcement agencies have worked
Household Survey, the number of Americans
increasingly with state and local officials to
using illicit drugs dropped 10.8 million, or
target inner-city gangs, organized crime, and
roughly 30%, between 1985 and 1991.
major drug trafficking operations. President
Bush has tripled federal anti-drug assistance,
President Bush's National Drug Control
now $496 million, to state and local
Strategy helped cut overall drug use by 13%
and adolescent use by 27%.
governments.
Bush/Reagan law enforcement initiatives,
President Bush's innovative "Weed and
including aggressive prosecution, stiffer
Seed initiative weds tough law enforcement
sentencing, and federal prison expansion,
efforts targeting drug dealers and violent
have kept violent offenders off the streets.
criminals with effective social and economic
The prison population has increased 172%
programs to regenerate troubled
neighborhoods. Bush has proposed $500
since 1981.
million for Weed and Seed' in 1993.
The national drug control budget has
grown from $1.5 billion in 1981 to $12.7
billion in 1993, an increase of 750%.
Spending on prevention and treatment has
doubled under Bush and is now up to $4.1
billion.
President Bush has fought for
strengthening our crime laws, including an
enforceable federal death penalty.
"SETTING THE RECORD STRAIGHT:"
Protecting Our Environment
ENVIRONMENT
During the past twelve years, our
nation's most important environmental
TRUE OR FALSE:
laws have been significantly
strengthened.
"During Reagan-Bush,
pollution increased,
Twenty-two years after a Republican
environmental regulations
President created the Environmental
were relaxed, and funding
Protection Agency (EPA), the Congress has
was slashed.' - FALSE!
failed to adopt President Bush's 1990
proposal to make EPA a cabinet level
Department.
The Reagan and Bush Administrations
The United States has the toughest, most
have sought to protect the environment in a
comprehensive environmental laws of any
cost-effective manner that minimizes job
nation on Earth. During the 1980s, 43
losses and threats to sustained economic
environmental laws were enacted. During his
growth.
first two years in office, President Bush alone
signed 26 bills into law, including the 1990
The U.S. currently spends more on
Clean Air Act.
pollution control than any other country in
the world, devoting at least $115 billion
The United States has led efforts to
annually, or 2% of GDP.
research, assess, and combat the ozone hole
and global warming:
During the past two decades:
Last February, President Bush
lead pollution down 96%,
announced the unilateral phase-out of
ozone depleting substances by 1995.
carbon monoxide pollution down 41%,
U.S. production of these substances is
already 42% below levels required by
sulfur dioxide pollution (contributes to
international agreements.
acid rain) down 25%, and,
The U.S. spends more than half of what
water pollution (suspended solids) down
is spent in the world on global warming
80%.
research.
The Federal budget for environmental
The U.S. is the only nation except the
programs more than doubled since President
Netherlands that has a detailed action
Bush took office. He has proposed a 22%
plan for limiting greenhouse gas
increase - or an added $3.4 billion - for
emissions.
1993. The President proposes in 1993 to
spend:
Through Bush initiatives such as the
1990 Clean Air Act, the National Energy
$2.7 billion for EPA's operating budget
Strategy, and the America the Beautiful
(more than double 1980 levels);
Reforestation program, the U.S. will
reduce greenhouse gas emissions by
$9.4 billion for cleanup of Defense and
125 to 200 million tons without seriously
Energy Department facilities.
damaging our economy.
$1.4 billion for global climate change
research (24% above last year).
APPENDIX
Federal Budget Trends
Table:
A) Receipts, Outlays, and Deficits
In Billions of Dollars
B) Receipts, Outlays, and Deficits
As a Percentage of GDP
C) Components of Outlays
In Billions of Dollars
D) Components of Outlays
As a Percentage of Total Outlays
RECEIPTS, OUTLAYS, AND DEFICITS
COMPONENTS OF OUTLAYS
($ billions)
($ billions)
Fiscal
Nondefense
Net
Fiscal
Receipts
Outlays
Deficit
Year
Defense Discretionary Entitlements Interest
Year
116.8
118.2
1.4
1965
51.0
30.8
35.7
8.6
1965
1970
1928
28
1970
81.9
42.7
68.2
14.4
195.6
279.1
3323
53.2
1975
87.6
74.9
164.9
23.2
1975
1980
517.1
590.9
73.8
1980
134.6
141.9
291.1
52.5
678.2
79.0
1981
158.0
150.1
340.6
68.8
1981
599.3
617.8
745.8
128.0
1982
185.9
140.3
3727
85.0
1982
808.4
207.8
1983
209.9
143.6
410.4
89.8
1983
600.6
1984
228.0
151.6
405.4
111.1
1984
666.5
851.8
185.4
734.1
946.4
2123
1985
253.1
163.1
447.8
129.5
1985
769.1
990.3
221.2
1986
273.8
165.2
461.2
136.0
1986
854.1
149.8
1987
2825
162.4
473.3
138.7
1987
1,003.9
1,064.1
155.2
1988
290.9
174.1
504.2
151.8
1988
909.0
169.2
1989
990.7
1,114.2
153.5
1989
304.0
185.6
549.2
220.5
1990
300.1
201.6
624.6
183.8
1990
1,031.3
1,251.8
1,054.3
1,323.0
268.7
1991
317.0
215.2
7022
196.3
1991
1995'
1,543.0
203.0
1995'
267.2
270.9
848.0
246.0
1,340.0
TABLE B.
TABLE D.
RECEIPTS, OUTLAYS, AND DEFICITS
COMPONENTS OF OUTLAYS
As a Percentage of GDP
As a Percentage of Total Outlays
Fiscal
Outlays
Deficit
Fiscal
Nondefense
Net
Year
Receipts
Year
Defense Discretionary Entitlements
Interest
1965
17.4%
17.6%
0.2%
1965
43.1%
26.1%
302%
73%
1970
19.6
19.9
0.3
1970
419
21.8
34.9
7.4
1975
18.5
22.0
35
1975
26.4
225
49.6
7.0
1980
19.6
223
28
1980
228
24.0
49.3
89
1981
20.2
22.9
27
1981
233
22.1
50.2
10.1
1982
19.8
23.9
4.1
1982
249
18.8
50.0
11.4
1983
18.1
24.4
6.3
1983
26.0
17.8
50.8
11.1
1984
18.0
23.0
5.0
1984
26.8
17.8
47.6
13.0
1985
18.5
23.8
53
1985
26.7
17.2
473
13.7
1986
18.2
23.5
5.2
1986
27.6
16.7
46.6
13.7
1987
19.2
22.5
3.4
1987
28.1
16.2
47.1
13.8
1988
18.9
22.1
32
1988
273
16.4
47.4
143
1989
19.2
22.1
3.0
1989
27.3
16.7
49.3
15.2
1990
18.9
22.9
4.0
1990
24.0
16.1
49.9
14.7
1991
18.7
23.5
4.8
1991
24.0
16.3
53.1
14.8
1995'
19.1
22.0
29
1995'
173
17.6
55.0
15.9
1) Projections are from "An Analysis of the President's Budgetary
Proposals for Fiscal Year 1993", CBO, March 1992. Proportion of total
2) These components, combined with a small amount of off-setting
outlays that is defense is SBC-GOP Staff estimate.
receipts (not shown), sum to total outlays.
SOURCES
Advisory Commission on intergovernmental Relations, Significant Features of
U.S. Environmental Protection Agency, Securing our Legacy, An EPA Progress
Report 1989-1991, 175 R-82-001, April 1992.
Fiscal Federalism. Valume 2, 1991.
Bureau of the Central Department of Commerce, American Housing Survey,
Executive Office of the President, Budget of the United States Government
Fiscal Year 1993, January 29, 1992.
July 1991.
Bureau of the Cansus Department of Commerce, Housing Starts and Building
Executive Office of the President, Budget of the United States Government,
Fiscal Year 1993, Historical Tables, February, 1992.
Permits
Bureau of the Census. Department of Commerce, Measuring the Effect of
Executive Office of the President, The President's Comprehensive Cost Control
Benefits and Taxes 8 income and Poverty:1990 and Money income and Poverty
Program, February 6, 1992.
Status in the U.S.1986
Executive Office of the President. U.S. Actions for a Better Environment A
Bureau of the Cansus, Department of Commerce, U.S. Merchandise Trade
Sustained Commitment 1992.
Bureau of Economic Analysis, Department of Commerce, U.S. International
Federal Bureau of investigation, Uniform Crime Reports
Transactions
Federal Funds information for States - FFIS, Grants-in-Aid Procrams: Selected
Bureau of Economic Analysis, Department of Commerce, Survey of Current
Discretionary and Entitlements Comparisons 1981 to 1990 and 1990 to 1993.
Issued June 1992.
Business
Bureau of Justice Statistics. National Corrections Reporting Program.
Federal Housing Finance Board, Monthly Mortgage Index Rate Survey, Annual
Summary of Rates and Terms.
Bureau of Justice Statistics, National Crime Victimization Reports.
U.S. General Accounting Office, Fact Sheet for the Majority Leader, House of
Bureau of Labor Statistics, Department of Labor, Employment and Earnings
Representatives, intergovernmental Relations: Changing Patterns in State-Local
Finances, March, 1992
Bureau of Labor Statistics, U.S. Department of Labor, Office of Productivity and
Technology, Comperative Population. Employment and Real Gross Domestic
U.S. House of Representatives, Committee on Ways and Means, Overview of
Entitlement Programs - 1992 Green Book, Committee Print WMCP:102-44.
Product for 14 Countries
Congressional Budget Office, The Economic and Budget Outlook Fiscal Years
International Monetary Fund, International Financial Statistics
1993-1997, January 1992
International Monetary Fund, World Economic Outlook
Congressional Bucget Office, CBO Staff Memorandum, Measuring the
Joint Economic Committee, U.S. Sanata, prepared by the Council of Economic
Distribution of Income Gains, March 1982
Advisers, Economic indicators
Congressional Buoget Office, CBO Paper, Trends in Public Infrastructure Outlavs
National Association of Resitors, Research Division, Home Sales
and the President's Proposals for infrastructure Spending in 1993, May, 1992.
National Center for Education Statistics, U.S. Department of Education. Office of
Congressional Budget Office, Staff Memorandum, Factors Contributing to the
Research and improvement Dioest of Education Statistics, November, 1991.
Growth of the Medicaid Program, May 1992.
National Foundation for WomenBusiness Owners, Wormen-OwnedBusiness, the
Congressional Bucget Office, Staff Memorandum. Factors Contributing to the
New Economic Force, 1992 Data Report.
Infant Mortality Raniono of the United States, February 1992
Congressional Budget Office (Testimony by Director Robert Reischauer), House
National institute on Drug Abuse (NIDA), 1991 Household Survey.
Committee on Wais-and Means. March 4, 1992
Office of the Attorney General, Attacking Financial Institution Fraud, Fiscal Year
Congressional Research Service, Environmental Issues: From the 101st to the
1992 Second Quarterly Report.
102nd Congress, January 1991.
Office of National Drug Control Policy, National Drug Control Strategy
Congressional Research Service, Environmental Protection Laws and Treatles:
Treasury Department, Household income Mobility During the 1980s: A Statistica
Reference Guide January 1991.
Assessment Based on Tax Return Date June 1992
Council of Economic Advisers, Executive Office of the President, Economic
Transury Department, Internal Revenue Service, Statistics of income.
Report of the Prescent
Cound on Environmental Quality, Environmental Quality, 22nd Annual Report,
The Urban institute, Policy Sites, is U.S. income inequality Realty Growing?
June 1992
March 1992.
Department of Commerce, Economics and Statistics Administration, Bureau of
The White House, Bush Administration Environmental Accomolishments in
the Cansus, Job creation During the Late 1980s, Saries P-70, No. 27
Support of UNCED, Fact Sheet, June 1, 1992.
Department of Commerce, Economics and Statistics Administration, Bureau of
the Census, Money income of Households, Families. and Persons in the U.S.:
1990, Series P-8C, NO. 174
Department of Education, America 2000, Number 23, Weeko March 30, 1992
Department of Health and Human Services, Health Resources and Services
Administration, Justification of Appropriations Estimates for Committee on
Appropriations, Fscal Year 1993.
Department of Health and Human Services, National Institutes of Health,
National Institute of Diabetes and Digestive and Kidney Diseases, Justification
of Appropriations Estimates for Committee on ADD oorlations, Fiscal 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 Burkertin, Annual Statistical Supplement 1989.
Department of Housing and Urban Development, Fiscal Year 1993 Budget,
January 29, 1992
ID:
SEP 04'92
11:37 No 005 P.02
FACT SHEET
BUSH
QUAYLE
Issues Office
92
August 12, 1992
PRESIDENT BUSH: HELPING SMALL BUSINESSES
TO GROW AND CREATE JOBS
"Through their willingness to take risks and to do the hard
work that is necessary to improve existing products and
services, or to design, develop, and market new ones, small
business people are leading America's economic productivity
and innovation. Indeed, small business is the lifeblood of
our Nation's free enterprise system."
President Bush
May 12, 1992
Summary
As a former businessman and entrepreneur, George Bush
understands the difficulties faced by small business owners,
especially the need to raise capital and invest in growth.
President Bush appreciates small business' unique role in
creating jobs. Accordingly, the President has tailored his
economic policies to cut burdensome federal regulations and
to help small businesses get better access to capital.
As the economy begins to recover, the President's efforts to
keep inflation and interest rates low and to eliminate
burdensome regulations are helping small businesses to cut
costs, raise capital, and create jobs.
To spur growth, and encourage new investment, the President
is pushing a far-reaching economic growth plan, including
new incentives for small businesses to invest in
productivity -- a capital gains tax cut and a new investment
tax allowance. The President's $5,000 tax credit for first-
time homebuyers' will also spur new demand for housing,
generating 272,500 new jobs, 125,000 new home starts, and
$12.5 billion worth of residential construction.
The President has authorized a record 6 billion dollar loan
authority for the SBA for new business start ups and job
expansion.
-more-
Paid for by Bush Quayle '92 Primary Committee, Inc.
1030 15th St. N.W., Washington, D.C. 20005
ID:
SEP 04'92
11:37 No.005 P.03
Page 2
The President will not impose costly new taxes on small
businesses, especially new payroll or income taxes. In
contrast, Bill Clinton has already promised to impose $150
billion in new taxes on the American people, including
significant new payroll tax mandates and income tax rate
hikes.
Clinton's new tax increases and mandates on business would
cost jobs.
:
Over 800,000 small businesses would be hit by Clinton's
tax hikes. Per worker health care costs would soar by
at least two-thirds, while mandated family leave would
cost them $1.2 billion each year. A small business
owner would have to think twice about hiring each new
worker.
:
The National Federation of Independent Business
estimates that between one and two million small
business jobs would evaporate if "play or pay" health
insurance becomes law.
In addition to vetoing the Democrats' $100 billion tax hike
earlier this year, the President has vetoed bills that would
have imposed significant new mandates on businesses,
including new requirements for parental and family leave.
The President has fought successfully for flexible policies
-- in child care, for instance -- that serve both small
business owners and employees.
The President's commitment to open new markets and conclude
free-trade agreements that break down foreign barriers are
creating new growth opportunities for American businesses.
Small Business: Backbone of a Growing Economy
The Bush Administration's economic policies have reduced
inflation and interest rates to their lowest levels in
decades, laying the groundwork for a strong recovery, new
growth, and more jobs.
President Bush's economic growth plan, which Democrats in
Congress continue to block, would have created 500,000
additional new jobs this year. Small businesses, in
particular, will benefit from the President's plan.
-more-
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Page 3
-- Small businesses accounted for more than two-thirds of
the 850,000 jobs created in 1991 and 350,000 jobs
during the first five months of 1992.
-- Small businesses currently employ more than half of the
American work force, generate 44% of all sales, and 39%
of the U.S. GNP. From 1990-91 small business profits
increased by more than 32%.
o
Many of the President's actions have followed
recommendations called for at the 1986 White House
Conference on Small Business. Those recommendations
included: capital gains tax reduction, liability reforms,
and opposition to government mandated benefits.
Reducing Taxes on Business
0
Capital Gains Tax Cut: President Bush has proposed a
reduction in the capital gains tax to create jobs, spur new
investment, and boost productivity. Congress has refused to
pass the capital gains tax cut proposed in both the 1990 and
1992 Presidential economic growth packages. As a result,
small businesses and venture entrepreneurs have suffered.
-- 47% of most small businesses obtain start-up funds from
personal capital which is taxable under current laws.
0
Investment Tax Allowance: The President supports a 15%
investment tax allowance to encourage businesses to buy
equipment, upgrade their plants, and start hiring again.
-- An investment tax allowance would spur 30% of all small
businesses to expand facilities and operations.
0
R & D Tax Credit: The President has proposed to make
permanent the 20% research and experimentation tax credit,
which will encourage investment in industries and
technologies to lead long-term growth into the next century.
o
AMT Reform: The President opposes the "adjusted current
earnings" depreciation adjustment under the Alternative
Minimum Tax (AMT). This penalizes capital-intensive
industries such as airlines, chemicals, paper, motor
vehicles, and steel when they buy equipment to modernize or
expand capacity. As part of his economic growth package,
the President has proposed AMT Reform.
-more-
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Page 4
The President's proposed enterprise zones will encourage
small businesses to return to inner cities and rural areas.
The incentives include a limited refundable tax credit for
qualified employee wages and an elimination of taxation on
capital gains attributable to eligible zone property.
The President strongly supports a first-time homebuyer's tax
credit as a long-term stimulant to the economy. This credit
would create about 272,000 jobs, generate 125,000 housing
starts, and produce $12.5 billion in additional residential
construction.
The Dangers of Tax-Hiking Clintonomics
Clinton's economic "strategy," which proposes the largest
single tax increase in history and includes oppressive
government mandates, would cost at least 2.6 million
American jobs.
Clinton hides behind the veil of class warfare, claiming
that his tax increases will only "soak the rich." In
reality, he plans to drown small business.
-- The real burden of Clinton's tax hikes will be felt
largely by job-creating small businesses -- the sole
proprietorships, partnerships, Subchapter S
corporations and family farms that form the backbone of
the small business community.
-- More than 75% of those whose taxes will be raised fall
into this category, and more than $40 billion of the
Clinton tax hikes will be paid for directly from the
profits of small business.
-- simply stated, more than 800,000 small businesses will
have their taxes increased each year under a Clinton
presidency.
All told, Clinton's new taxes and mandates on business will
cost American businesses $101 billion next year -- fully 54%
of their 1991 profits. At a time when the economy is
starting to grow again, any plan that takes away over half
of American business' profits -- profits that are being
invested in new workers and better products -- will cost
jobs, eliminate opportunity, and stifle economic growth.
-erom-
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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 HINs (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.
0
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.
0
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-
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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.
Presidential Vetoes: Stopping the Democrats' Costly New Mandates
President Bush has consistently opposed measures that would
hurt small business. Among his 31 vetoes, the President
vetoed three measures that would have imposed costly new
mandates and regulations on small business:
-- Labor Standards Amendments of 1989
Had President Bush not vetoed this bill, which increased
the minimum wage to $4.55 per hour, many small firms
would have had to lay off employees to meet
unnecessarily inflated labor costs. The bill would have
forced employers to cut services to their customers or
cut jobs, particularly damaging the employment prospects
of young people and less advantaged citizens. It also
would have accelerated inflation, causing some
businesses to close completely.
-- Family and Medical Leave Act (1990)
President Bush believes that family leave is an
important benefit for employers to offer employees, but
he objects to rigid, federally-imposed requirements.
This bill would have stifled productivity and job growth
which the U.S. desperately needs if it intends to
compete in the global marketplace. Small businesses
would have been hit hard by mandated family leave,
costing them $1.2 billion each year.
-елош-
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Page 7
-- Tax Fairness and Economic Growth Acceleration Act (1992)
This bill, forced through by the Democratic leadership,
included a $100 billion tax increase. More than two-
thirds of this tax increase would have fallen on small
business owners and entrepreneurs. The plan also failed
to create long-term investment and growth and would have
jeopardized the economic recovery.
Relieving the Credit Crunch
The Bush Administration has worked with bank regulators and
has conducted extensive meetings with bankers, examiners,
and borrowers all over the nation to ease the credit crunch
and increase the availability of funds.
The Administration has worked with regulators to issue over
35 regulatory changes in order to increase the availability
of credit.
--
The Bush Administration has directed that valuation of
real estate be based on ability to generate income, not
on liquidation value.
--
The President has taken action to end over-zealous bank
examinations and to promote incentives that help banks
maintain capital levels.
--
The President has proposed legislation to increase the
availability of credit by reducing unnecessary
regulatory burdens on the banking industry. Industry
observers estimate that if just 25% of the resources
banks now devote to regulatory compliance could be
redirected into bank capital, the banking industry
could support $20-30 billion in additional lending.
The Bush Administration has called on banks with improving
capital and earnings aggressively to seek out sound loans --
and not just investing their capital in government
securities.
Improving Access to capital Through the SBA
Working with the programs of the U.S. Small Business
Administration (SBA), the President has expanded
opportunities for small businessmen and women to obtain
capital. The President has authorized a record $6 billion
loan authority for the SBA for new business start ups and
job expansion.
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Page 8
The SBA has established a micro-loan program to make direct
10-year loans of up to $750,000 to non-profit intermediaries
which provide small loans -- ranging from a few hundred
dollars to $25,000 -- to entrepreneurs to establish or
strengthen their small businesses.
The Bush Administration has worked with Congress to seek
long-term improvements in the venture capital-providing
Small Business Investment Corporations (SBICs).
Regulatory Reform
O
President Bush has made the reduction of burdensome
regulation a priority in his efforts to spur economic
growth, and has taken significant steps to ease the
strangle-hold of unnecessary regulations. Regulations, no
matter how well-intentioned, often times stifle economic
growth and inhibit job creation.
--
In his January 28, 1992 State of the Union address,
President Bush ordered a temporary halt to new federal
regulations. President Bush's moratorium will help
small businesses grow without sacrificing health and
safety.
--
According to a recent survey by National Small Business
United, regulatory burdens are the second-highest
concern of small business owners.
--
Under the President's direction, federal agencies have
taken more than 200 separate regulatory reform actions
which collectively will save Americans between $11 and
$24 billion annually.
The Administration has developed proposals designed to ease,
or provide more flexibility in the regulation of small
business.
--
The Bush Administration has proposed allowing small
businesses to file payroll taxes only once a month
instead of as often as twice a week as now required.
--
The IRS is currently working on a new federal tax form
(941EZ), one specifically tailored for small business,
which eliminates many questions applicable only to
larger firms. In 1990, the IRS developed a new
unemployment tax reporting form that is now used by
approximately 700,000 small businesses, and is
estimated to save 10 million hours in paperwork.
-more-
ID:
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Page 9
-- The Administration has proposed deductible tax
preparation fees, joint federal and state filing, and
the electronic deposit of payroll taxes.
Under the Vice President's leadership, the President's
Council on Competitiveness is assisting federal agencies in
reducing the regulatory barriers that hamper the growth of
American industries.
--
The Council challenged overly-restrictive definitions
of wetlands that would have barred development on lands
not truly wet.
The President has proposed legislation that will reform the
product liability system by encouraging settlements instead
of costly litigation, reducing excessive court awards, and
providing for prompt payment of legitimate claims.
To assist small businesses in raising essential capital, the
SEC is simplifying needlessly complex registration
requirements. It is also increasing the maximum size for
SEC Regulation A public stock offerings from $1.5 million to
$5 million under streamlined procedures.
opening Markets for American Goods
U.S. goods and services face many barriers around the world,
from prohibitive licensing requirements and collusive
corporate business practices to inadequate protection for
intellectual property rights. President Bush is committed
to redressing these barriers and increasing exports to
create jobs and foster competitiveness.
--
U.S. merchandise exports. surged to an all time high of
$422 billion in 1991, up 31% since 1988. Today,
America is again the world's leading exporting nation,
and small businesses have been a beneficiary of this
export growth.
The President wants a strong North American Free Trade
Agreement (NAFTA) with Canada and Mexico, which would create
a market of 360 million consumers with an output of $6
trillion. Since Mexico began to liberalize trade in 1986,
U.S. merchandise exports to Mexico have surged by more than
169 percent; a NAFTA will ensure that our exports to Mexico
increase even more.
-more-
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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.
o
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.
0
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-
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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.
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.
###
ID:
SEP 04'92
11:18 No 003 P.01
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92
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ID:
SEP 04'92
11:19 No. 003 P.02
BUSH
BACKGROUNDER
***
QUAYLE
August 27, 1992
Issues Office
92
THE PRESIDENT'S PLAN TO CREATE JOBS
THE PRESIDENT'S GROWTH PLAN WOULD CREATE AT LEAST 500,000 JOBS THIS YEAR.
The President's plan to create jobs: Had the President's growth
package been passed by the Congress, it would have created 500,000
jobs this year alone. The President continues to fight for job
training growth measures such as: a cut in the capital gains tax,
a $5,000 tax credit for first time homebuyers, creation of flexible
IRAs, and a new Investment Tax Allowance.
-- The President's $5,000 homebuyers tax credit would create
272,500 jobs, primarily in the now-distressed construction and
manufacturing industries, and generate an additional 125,000
housing starts.
Spurring Investment and Creating New Jobs: By 1996, a capital
gains tax reduction would create 282,000 jobs, and establishment of
flexible IRA accounts would create 61,000 jobs, according to
estimates of job creation by growth proposals similar to the
President's.
Opening Foreign Markets to American Goods: President Bush has taken
an active and direct role in opening foreign markets and reducing
subsidies and other barriers to trade.
-- NAFTA: The President negotiated and signed a North American
Free Trade Agreement (NAFTA) to create new American jobs.
Exports to Mexico already support over 600,000 U.S. jobs. The
Institute for International Economics projects that with a
NAFTA, over one million U.S. jobs could be tied to exports to
Mexico by 1995, and that increased exports due to a NAFTA will
have created 175,000 net new jobs.
-- Even the homestate of NAFTA's leading critic, Congressman
Gephardt, will benefit from the agreement. Almost one-third of
Missouri's 170,000 export-related jobs depend on exports to
Canada and Mexico. The jobs created by a NAFTA will pay good
wages since export-related jobs pay 17% more than the average
U.S. job.
Clinton's economic plan will lose 2.6 million jobs, 1.7 million of
which will come from his rash defense cuts and burdensome "play-or-
pay" health plan. While he calls his $150 billion tax increase an
"investment," one million defense workers and employees from 800,000
small businesses will call it unemployment.
--
It is unfortunate that automotive workers are being displaced
while their factories are retooled. But, it would be far more
tragic that under a Clinton-Gore Administration, radical
increases in automotive efficiency standards would cost 300,000
automobile and related workers their jobs -- permanently.
Paid for by Bush Quayle *92 General Committee, Inc.
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10
THE
TREASURY NEWS
The
ASTIRY
1769
Department phe Treasury
Washington, D.C.
Telephone 566-2041
EMBARGOED UNTIL 9 PM (EST)
January 28, 1992
President Bush's Plan to
Stimulate Economic Recovery,
Promote Long-Term Growth, and Expand Opportunity
The President's plan will stimulate economic recovery and job-creating
investment; open up opportunity for home ownership and real estate recovery; and
help families build for the future. It accomplishes these goals with the following
initiatives:
Proposal
page
Cut Capital Gains Tax Rate
2
Investment Tax Allowance (ITA)
9
Simplify and Enhance Alternative Minimum Tax (AMT)
10
Depreciation
Targeted Jobs Tax Credit
11
Establish Enterprise Zones
12
Raise Tax-Free Mass Transit Benefits
14
Repeal Tax on Purchases of Certain Boats and Airplanes
15
Permanent Research and Experimentation Tax Credit
16
Passive Loss Rules for Active Real Estate Developers
18
Facilitate Greater Pension Fund Investment in Real Estate
20
Help First-time Homebuyers
21
Permit Deductibility of Losses on Sale of Personal Residences
22
Mortgage Revenue Bonds
23
Low-Income Housing Tax Credit
24
Family Tax Allowance
25
Flexible Individual Retirement Accounts (FIRA's)
26
Permit Deduction of Interest on Student Loans
27
Extend Unemployment Benefits
28
Deduction for Special-Needs Adoptions
29
Small Issue Bonds for First-Time Farmers
30
INVESTMENT TAX ALLOWANCE (ITA)
The proposal would provide firms an additional first year depreciation equal
to 15 percent of the purchase price of newly acquired equipment. This additional
depreciation would be allowed for both regular and alternative minimum tax
purposes. The property must be acquired on or after February 1, 1992 and before
January 1, 1993, and placed in service before July 1, 1993.
Provide Immediate Stimulus for Job-Creating Investment
The proposal would provide investment incentives by increasing cash flow
and by lowering the net cost of capital invested in 1992 for businesses
purchasing newly acquired equipment. This would provide a short-term
productivity. boost to the sluggish recovery, while at the same time raising long-run
To create jobs, businesses need to make investments in productive equipment,
such as computer-aided design equipment, advanced machine tools, and
telecommunications equipment.
Advantages of the ITA Over a Return to the Investment Tax Credit (ITC)
The President selected the ITA because it benefits all taxpaying businesses,
including firms that pay taxes under the Alternative Minimum Tax (AMT)
The ITC disadvantages taxpayers subject to the AMT, because its use is limited
to 25 percent of AMT liability.
The ITA reduces effective tax rates by the same percentage for all eligible
investment. A five percent ITC favors short-lived assets and has a much
higher revenue loss to the Treasury.
Unlike many ITC proposals, the ITA does not "target" certain forms of
investments. equipment and pick winners instead, it creates a level playing field for
Improve Corporate Competitiveness
Companies in the U.S. invest relatively less than their competitors in Germany
and Japan. U.S. gross domestic investment as a percent of GNP is the lowest
of the six major industrialized countries (Canada, France, Germany, Japan, the
U.K., and the S.).
The ITA, along with the reduction in capital gains tax rates and the changes in
the Alternative Minimum Tax, will reduce the cost of capital faced by
American companies, thereby making them more competitive.
9
THE WHITE HOUSE
Office of the Press Secretary
Embargoed for Release at
May 12, 1992
3:00 p.m. EST
FACT SHEET ON THE ADMINISTRATION'S PROGRAM
FOR REDUCING TAX COMPLIANCE BURDENS FOR SMALL EMPLOYERS
As part of the President's regulatory reform initiative, the
Administration today announced several steps to reduce the
administrative costs to small employers of complying with the tax
laws.
Studies have concluded that the U.S. tax system imposes
administrative costs on the private sector that are equal to a
sizable percentage of the approximately $1.2 trillion in taxes
actually received by the Federal Government. These
administrative costs are passed on to every American consumer in
the form of higher prices. These costs also impede the creation
of new jobs by forcing businesses -- particularly small
businesses -- to spend inordinate sums on tax lawyers and
accountants rather than on new, productive investments.
In response to the President's State-of-the-Union request
for a comprehensive review of all federal regulations, the
Department of the Treasury and the IRS launched a systematic
search for ways to reduce these indirect costs. As a result of
this review, the Administration today announced several steps to
reduce the administrative burdens of the payroll tax system, as
well as other indirect burdens currently borne by small
businesses. Full implementation of these initiatives will spur
economic growth and help create new jobs for American workers.
1. Reduce the Costs of the Payroll Tax System. When fully
implemented, the following steps will reduce by several billion
dollars a year the administrative costs to more than 5 million
employers who must report employment taxes.
Simplified Payroll Tax Deposit System. Presently, many
employers must make payroll tax deposits as often as twice a
week, usually on different days of the week. If an
employer's payroll varies significantly from payday to
payday, the deposit requirements may change substantially
within the same quarter. These requirements cause
confusion, add complexity, and create unnecessary burdens
for taxpayers.
The Administration has previously supported payroll tax
reform legislation that would have reduced these burdens.
Unfortunately, this legislation was attached to the broader
tax bill which the Democratic leadership pushed through
Congress in March, and which the President vetoed because it
would have increased taxes. Fortunately, the President has
sufficient authority under existing statutes to accomplish
many of the objectives of the Administration-supported
payroll tax reforms. Accordingly, the Administration
announced today the publication of proposed IRS regulations
that will simplify existing payroll tax requirements and
thereby make compliance considerably easier.
-- Under the proposed regulations, large employers can
deposit payroll taxes on a fixed day of the week --
Tuesday or Friday depending on the payroll date.
Smaller employers will make payroll tax deposits
monthly. As many as 75% of all employers will be able
to use this "once-a-month" rule.
-- These simplifications will substantially reduce the
costs to employers -- particularly small employers --
of complying with payroll tax regulations. In
addition, these changes are expected to reduce the
number of payroll tax penalties by more than 20%.
Form 941EZ. The IRS also announced that it is developing a
simplified new form, Form 941EZ, for reporting federal
employment taxes. The new form, which the IRS anticipates
will be available by the first quarter of 1994, will
eliminate information that is ordinarily relevant only to
large businesses.
-- The new form is expected to reduce substantially the
compliance burdens of more than 3.5 million small
employers.
-- The development of Form 941EZ follows on the heels of
other IRS initiatives designed to provide simplified
forms to small businesses. In 1990, for example, the
IRS introduced Form 940EZ, a simplified version of the
form for reporting Federal Unemployment Taxes. This
new form is now used by approximately 700,000 small
employers at an estimated annual savings of up to 10
million taxpayer hours.
Electronic Deposit of Payroll Taxes. Last year, employers
filed over 80 million paper coupons to accompany federal
payroll tax deposits of almost $850 billion. The IRS has
been testing a program to replace the paper coupons with a
system that will permit employers to make payroll tax
payments electronically, without leaving their offices. The
- 2 -
IRS today announced that this experimental, voluntary
program will be available in early June to employers in
South Carolina, Florida, and Atlanta, Georgia.
On-Line Tax Identification Number Matching. The IRS plans
this fall to establish a call-in site to allow employers to
verify employees' tax identification numbers (TINs)
electronically. The IRS anticipates that this program will
be made available to all employers in 1993.
Single Wage Reporting. Traditionally, an employer must file
employment tax forms for each employee with the IRS and the
Social Security Administration as well as state and local
tax agencies. The IRS, the Social Security Administration,
and the Department of Labor recently agreed to joint
development of a new Single Wage Reporting System. This
system would do away with the duplicate filing of Form W-2
and other payroll tax information.
-- The new system would require only one filing, thereby
saving substantial administrative costs.
-- The federal agencies will work closely with state
organizations in refining and implementing this system.
2. Reduce Other Tax-Related Burdens. The Administration
announced the following measures to reduce other tax-related
burdens on small businesses:
Deductibility of Tax Preparation Fees. On April 1, 1992,
the IRS released a ruling allowing more than 16 million sole
proprietors (including farmers) to deduct business-related
tax preparation fees as a business expense rather than as a
limited itemized deduction.
Joint Federal-State Filing. The IRS is working with states
on a pilot program for the joint electronic filing of
federal and state tax returns. In 1992, the IRS implemented
this program on a state-wide basis in South Carolina and on
a more limited basis in 6 other states. The IRS expects to
add additional states during the coming year.
O
Educational Initiatives for Small Businesses. In the past
year, the IRS has informally contacted over 150,000 small
businesses that were having difficulty complying with
federal tax deposit requirements. It is now working with
these taxpayers -- outside the formal audit/enforcement
context -- to address compliance concerns. In addition,
during Fiscal Year 1991, the IRS conducted over 2400 Small
Business Tax Education Workshops and seminars for over
80,000 executives. The IRS plans to continue these efforts
during the coming year.
- 3 -
1,2
FROM "BCONOMIC INDICATORS" by CEA
CONSUMER PRICES-ALL URBAN CONSUMERS
In August, the consumer price index for all urban consumers rose 0.3 percent, seasonally adjusted and not
seasonally adjusted. The index was 3.1 percent above its year-earlier level.
INDEX, 1982-84 = 100 (RATIO SCALE)
INDEX, 1982-84 . 100 (RATIO SCALE)
150
150
SEASONALLY ADJUSTED
140
140
130
130
CONSUMER PRICES-ALL ITEMS
120
120
110
110
100
100
90
90
80
80
1984
1985
1986
1987
1988
1989
1990
1991
1992
SEE NOTE ON TABLE BELOW
SOURCE DEPARTMENT OF LABOR
COUNCIL OF ECONOMIC ADVISERS
[1982-84=100 except as noted; monthly data seasonally adjusted, except as noted]
All items 1
Housing
Transportation
Shelter
All
Not
Sea-
season-
Home-
Rent-
Fuel
Period
Appar-
Medi-
items
ally
son-
Food
Mainte-
and
el and
Ener-
less
own-
ers'
cal
ally
Total
1
ers'
New
other
Motor
2
adjust-
nance
upkeep
Total 1
gy
food
ed
adjust-
Total
costs
(Dec.
costs
utili-
fuel
care
and
cars
and
(NSA)
ed
1982=
(Dec.
repairs
ties
energy
1982=
100)
(NSA)
100)
Rel. imp.³
100.0
16.0
41.5
27.9
8.0
19.7
0.2
7.3
6.1
17.0
4.1
3.3
6.7
7.4
76.6
1982
96.5
97.4
96.9
96.9
96.4
94.9
97.8
97.0
97.4
102.8
92.5
99.2
95.8
1983
99.6
99.4
99.5
99.1
103.0
102.5
99.9
100.2
100.2
99.3
99.9
99.4
100.6
99.9
99.6
1984
103.9
103.2
103.6
104.0
108.6
107.3
103.7
104.8
102.1
103.7
102.8
97.9
106.8
100.9
104.6
1985
107.6
105.6
107.7
109.8
115.4
113.1
106.5
106.5
105.0
106.4
106.1
98.7
113.5
101.6
109.1
1986
109.6
109.0
110.9
115.8
121.9
119.4
107.9
104.1
105.9
102.3
110.6
77.1
122.0
88.2
113.5
1987
113.6
113.5
114.2
121.3
128.1
124.8
111.8
103.0
110.6
105.4
114.6
80.2
130.1
88.6
1988
118.2
118.3
118.2
118.5
127.1
133.6
131.1
114.7
104.4
115.4
108.7
116.9
80.9
138.6
89.3
1989
123.4
124.0
125.1
123.0
132.8
138.9
137.3
118.0
107.8
118.6
114.1
119.2
88.5
149.3
94.3
129.0
1990
130.7
132.4
128.5
140.0
146.7
144.6
122.2
111.6
124.1
120.5
121.0
101.2
162.8
102.1
135.5
1991
136.2
136.3
133.6
146.3
155.6
150.2
126.3
115.3
128.7
123.8
125.3
99.4
177.0
102.5
142.1
1991:
Aug
136.6
136.6
136.3
133.8
146.4
155.2
150.5
127.2
115.3
129.2
124.2
125.9
98.0
178.9
101.2
Sept
143.0
137.2
137.1
136.5
134.2
146.9
155.8
151.1
126.8
115.7
130.0
124.2
126.3
97.9
180.0
Oct
101.4
143.6
137.4
137.4
136.4
134.6
147.4
156.3
151.6
126.6
116.2
130.3
124.0
126.2
97.3
181.1
Nov
101.4
143.9
137.8
137.9
137.0
135.0
147.9
156.6
152.1
127.6
116.8
131.1
124.5
126.3
98.2
182.0
Dec
102.2
144.4
137.9
138.2
137.4
135.4
148.4
157.3
152.7
128.1
116.8
129.6
124.8
126.5
98.5
183.3
102.3
144.7
1992:
Jan
138.1
138.3
136.8
135.7
149.1
158.4
153.2
128.0
116.4
130.0
124.4
126.6
96.3
Feb
184.5
100.8
145.1
138.6
138.7
137.2
136.0
149.5
158.9
153.6
128.3
115.9
131.9
124.2
126.7
95.7
Mar
186.0
99.9
145.7
139.3
139.4
137.9
136.5
150.0
158.5
154.5
128.4
116.4
132.7
125.1
127.2
96.6
187.0
100.5
Apr
146.4
139.5
139.7
137.8
136.7
150.2
158.9
154.6
128.0
116.9
131.8
125.7
127.8
96.8
May
188.0
100.9
146.8
139.7
139.9
137.3
136.9
150.4
159.5
154.7
128.1
117.1
132.3
126.1
128.0
97.9
June
189.0
101.5
147.1
140.2
140.3
137.5
137.5
151.1
160.4
155.3
128.5
117.5
132.0
126.7
128.5
July
101.0
189.8
103.5
147.4
140.5
140.5
137.3
137.6
151.1
160.2
155.5
128.8
117.9
131.8
127.3
128.6
101.7
190.8
Aug
103.8
147.7
140.9
140.9
138.5
137.8
151.4
160.5
155.7
128.1
118.5
131.8
127.2
129.1
100.4
191.6
103.6
148.0
1 Includes items not shown separately.
2 Household fuels-gas (piped), electricity, fuel oil, etc.-and motor fuel. Motor oil, coolant, etc.
NOTE.-Data beginning 1983 incorporate a rental equivalence measure for homeownership costs
also included through 1982.
and therefore are not strictly comparable with figures for earlier periods.
3 Relative importance, December 1991.
Data beginning 1987 and 1988 calculated on a revised basis.
Source: Department of Labor, Bureau of Labor Statistics.
23
Our economy has been working through four
adjustments. They establish the context for my agenda.
First, during the 1980s, we enjoyed the longest
7yrs 8 mos
I
peacetime expansion in U.S. history, lasting seven and
110078 88671
Now82 July 90
a half years. Through these years of strong growth, we
to
created 19 million jobs, more than all the new jobs in
21.407 miln.
the other major industrial countries and the rést of
3
western Europe combined. Yet the boom that wiped also away
82-90
21.310
the dismal economic performance of the late 70's led too
more
many more companies, too mov many financial institutions, too many
all ready eacer and
?
government and too more many households to take on too much
willing, to take on more debt.
debt.
You and they have been paying down that debt
[over
over
over the
4
the last three years -- and lower interest rates have
last year
eliminating
helped you do it. Millions of people have refinanced
homes at lower rátes, reducing mortgage payments by as
the
5
much as $1,500 to $2,000 a year. (Check) (Companies have
1200-1500 1200 1500
Aug for all home sales
in us.
Annual cat mortgage reduction of
$1353
from 1990 to 1992, July
2
restructured, paid down debt, and strengthened their
balance sheets, positioning themselves to enjoy
substantial profits when stronger growth resumes. This
process will leave our economy leaner and more powerful;
indeed many firms already are. But while that debt was
6
being paid down, people bought fewer goods and companies
put less money into new investments and jobs. The
process is largely over, but it has left consumers and
companies cautious.
Second, we entered the '80s with a banking system
designed 50 years earlier; it was woefully out of place
in an era when billions of dollars could be sent around
the world in a matter of moments. To provide a basis of
4,600
comparison, consider that the United States entered the
5,000
14,000
1980s with some 9,000 commercial banks and 3,500 savings
DECETE
and loans. Check. In comparison, Canada had
"
Germany had
, and Japan had
The vast
.
majority of those small banks and S&Ls operated in a
Akira
Furulkawa Japinew
heavily controlled environment where their costs of funds
were limited by ceilings on your passbook accounts.
Emborry
Other regulations restricted competition by imposing
two
costs and inefficiencies on savers and borrowers.
In the late '70s, this out-of-date system was
buffeted by record interest and inflation rates; it was
challenged by competition from new financial services.
As in any other line of business, the less efficient
3
institutions could not survive. But because our banks
and S&Ls held insured deposit accounts for most
hardworking Americans, the streamlining process had to
be managed in a way that enabled the Government to
protect savers.
This process, too, is nearing its end. It will
leave us with a more competitive and efficient financial
system that will serve companies and families better.
Over the next few years, the United States Government
will actually gain revenues from the sales of billions
of dollars of assets that it acquired as it protected
savers. But this process has left lenders cautious.
Business borrowing rates and mortgage rates are way down,
13
but it's still too hard for small businesses to gain
access to credit.
The third great change in our economy is ironically
due to our very success in ending the Cold War. Since
our superpower rival of the last half century has
disappeared, we are now able to do something we have all
hoped for since the close of World War II -- reduce
significantly our defense budget.
In the medium and long run, reductions in defense
spending will free up many new resources for our people
and our economy. In the short run, this adjustment has
meant cutbacks and lay-offs in many industries that have
depended on defense spending.
4
The final economic change is perhaps the most
profound of all: No nation is an island today. we are
CA
part of a global economy. To grow is MANUFACTUR to trade; to JOBS expand
Dave wat
USTR x?58
14
is to compete. One out of every six^in our economy
CA
6
depends directly on our exports; so does one acre out of USDA keith Collins
I
ERS
every three planted by American farmers. Check.
720-5955
This international economic influence has three
slumps
it drags
implications. One, when growth is slow abroad as it is
down with iT
today, our economy is slowed, too. Two, it means that
if America is going to be strong and growing in the 21st
Century, we must be ready prepared and able to compete around the
globe. Three, we need to seize opportunities to develop
new markets, particularly in areas that have potential
for significant growth in the future.
II. Start with Strengths
In developing a plan for the future, it is important
Take a clean eyed look at our weakness as wellas
that we assess fairly our strengths. as well conveniently as the
problems. Not surprisingly, the other side has^ skipped
over the United States' numerous strengths. Frankly,
over the will of part her
they want you to believe America is in a state of prime.
decline. But they have no more right to convince you the
economy is worse than it is for political advantage than
I have to sugarcoat the problems. So we need to make at
5
least a brief survey of some of the foundation stones on
which we will build.
Let's start with some of the key economic
indicators:
6
Inflation has fallen to roughly 3%, the lowest
CA
in a quarter of a century (except for 1986).
means That ove
In fact, during my administration, inflation
17
averaged less than half the inflation during
ys,hone new in shewest't This mostgest equivalut meavates since however Thine 1973. Ata Athements :
a
the Carter years.
Interest rates are at a 20 year low.
In
18
The
I
CA
=>
are
particular, mortgage rates are now in the 8%
range, half the rate President Reagan
19
CA
encountered in his first year. Thanks to these
low rates, more people can afford to own a home
20
today than in any time since 1973.
(Ace note)
$
While unemployment is still far too high, the
CA
share of the working age popúlation with jobs
Ace
note
21
during my administration has averaged 62.3%,
22
CA
I get
the highest in U.S. history. Indeed, the
62.2% using 61.5% (BLS) for 1997
average unemployment rate during my term has
23
CA
645 '92
remained below the average of the Carter years
61.6 '91
and puts us well ahead of G-7 partners like
62.7 '90
24
63.0 .89
Canada, Britain, France, and Italy -- where
CA
(scenote)
unemployment rates are 10% or higher.
Last # on Italy
is 7.0%
6
The Misery Index -- the sum of inflation and
1q. we A CPI
unemployment -- is down to 10.4% today from
10.8% Through most
+ C.U.R.
19.6% in 1980.
recent data
The rise in United States GDP during our ALONE long
26
expansion was $1.1 trillion. This increase is
greater than the total size of the capita German
27
per
economy.
%
These macroeconomic statistics translate into real
improvements for individuals, too:
c
Average family income reached $42,652 in 1990,
28
$15,000 more than before the expansion began.
A recent study by the Urban Institute
concluded: "When one follows individuals rather
than statístical groups defined by income, one
finds that, on average, the rich got a little
richer and the poor got much richer." " "This
pattern, however, may be surprising to the
general public which has been led to believe
that the poor were literally getting poorer
over the last decade or two, and that the
7
incomes of the rich were skyrocketing. That
is simply not true." M
1980's
Of the people making up the lowest fifth of the
4
UA
income distribution in the late 1970s, more
than half moved out of the lowest fifth and up
the income ladder over the next ten years.
During the expansion, the middle class shrank
Q
because more of them moved above the $50,000
threshold and into the high income groups --
they weren't moving down.
Real per capita income rose 15.7% during the
31
'80s. {Consider a substitute statistic}
All major demographic groups shared in the
economic growth. Between 1982 and 1991,
32
employment of Blacks was up 29% and Hispanics
52%. The employment-to-population ratio for
Black Americans during my tenure has averaged
a record 55.7%, up significantly from 52.8%
during the Carter years.
The United States has the highest home
ownership rate of all major industrialized
VA
34
countries: More than 64% of households own
(66%)
homes
News
United States
Department
of Labor
Bureau of Labor Statistics
Washington, D.C. 20212
Technical information:
Household data:
USDL 92-630
National
(202) 606-6373
606-6378
TRANSMISSION OF MATERIAL IN THIS
State
606-6392
RELEASE IS EMBARGOED UNTIL
Establishment data
606-6555
8:30 A.M. (EDT), FRIDAY,
Media contact:
606-5902
OCTOBER 2, 1992
THE EMPLOYMENT SITUATION: SEPTEMBER 1992
Both employment and unemployment were about unchanged in September,
the Bureau of Labor Statistics of the U.S. Department of Labor reported
today. At 7.5 percent in September, the unemployment rate was little
different from the August figure but three-tenths of a percentage point
below the June rate of 7.8 percent.
Nonfarm payroll jobs were little changed in September, after declining
in the prior month. In the private sector, job gains in services were
accompanied by further job losses in manufacturing and construction.
Government employment fell at the local level, as many jobs funded through
the special summer youth program came to an end.
Unemployment (Household Survey Data)
The unemployment rate, 7.5 percent, and the number of unemployed
persons, 9.6 million, were little changed in September from the previous
month, though both have edged down from June levels. Jobless rates for
each of the major demographic groups showed little movement over the month.
Rates in September were 7.1 percent for adult men, 6.3 percent for adult
women, 20.4 percent for teenagers, 6.7 percent for whites, 13.7 percent for
blacks, and 11.9 percent for Hispanics. (See tables A-1 and A-2.)
Both the number of job losers and long-term unemployed--two other key
unemployment measures--were also little changed in September. (See tables
A-5 and A-6.)
Total Employment and the Labor Force (Household Survey Data)
Total employment held at 117.7 million in September, after seasonal
adjustment. The employment-population ratio--the percentage of the
working-age population that is employed--was 61.3 percent. This ratio has
shown no clear movement for about a year. (See table A-1.)
The rapid labor force growth between last November and June ceased
over the summer. At 127.3 million in September, the civilian labor force
was little changed both over the month and from the June level. The labor
force participation rate--the percentage of the working-age population that
is either working or looking for work--was 66.3 percent in September, down
0.3 percentage point from its all-time high of 66.6 percent last reached in
June and July. (See table A-1.)
Interest Rates, Stock Prices, and Mortgage Rates--October 1992
(Percent per annum, except as noted)
3-month
High-
Mortgage
Dis-
Corpo-
U.S. Treasury constant
grade
Dow-Jones
Volume
commit-
Commer-
CDs
Treas.
rate
maturities
muni-
industrials
NYSE
ment
Federal
count
Prime
Period
funds
rate
rate
cial
(sec-
bills,
Aaa
cipal
(mill.
rate
bonds
Level
Point
Percent
shares)
(FHLMC)
FRB-NY
2/
paper
ondary
(sec.
bonds
3 year
10 year
30 year
1/
mkt)
mkt) 3/
(Moody's)
(S&P) 4/
change
change
5/
2/
3/
Oct
3.00
6.00
3.23
3.09
2.61
7.92
4.18
6.23
7.30
3254.37
-17.29
-0.53
203.7
1
3.58
6.26
7.33
3200.61
-53.76
-1.65
187.4
2
3.15
3.00
6.00
3.15
3.07
2.63
7.93 .
4.20
Week
3.41
3.00
6.00
3.24
3.10
2.69
7.93
4.26
6.32
7.34
6.27
3253.94
7.93
3.22'
3.00
6.00
3.15-
3.03'
2.64
7.88 ·
4.18'
6.24
7.34 .
3179.00
-21.61
-0.68
284.3 .
Oct
5
3178.19
-0.81. -0.03.
197.0 .
6
3.06'
3.00
6.00
3.14.
3.04'
2.73
4.24'
6.30
7.41
7
8
9
Week
Oct 12
13
14 16
15
16
Week
Oct 19
20
21
CEA WORKSHEET
22
23
Week
Oct 26
27
28 16
29
30
2/Weekly data are for end of week.
3/Bank-discount basis.
4/Data are for Wednesday.
5/Commitment rate on 80 percent, 30-year, fixed rate conventional mortgages on new and used homes.
1/Weekly data are for 7-day week ended Wednesday.
6/End of reserve settlement period.
BCONOM'S REPORT OF THE PRESIDENT
3
TABLE B-69.-Bond yields and interest rates, 1929-91
[Percent per annum]
U.S. Treasury securities
Corporate
High-
bonds
grade
Discount
New-
Bills
Constant
(Moody's)
munici-
Com-
Year and
home
Prime rate
rate,
Federal
(new issues) 1
maturities
pal
mercial
Federal
mort-
month
bonds
paper, 6
charged by
funds
Year and
Reserve
Aaa
(Stand-
gage
banks 5
Bank of
rate
month
3-month
3-
10-
Baa
months
6-month
ard &
yields
New York 5
year
year
3-n
Poor's)
1929
4.73
5.90
4.27
5.85
5.50-6.00
5.16
1933
0.515
4.49
7.76
4.71
1.73
1.50-4.00
2.56
1939
.023
3.01
4.96
2.76
.59
1.50
1.00
1987:
1940
.014
2.84
4.75
2.50
.56
1.50
1.00
Jan
1941
103
2.77
4.33
2.10
.53
1.50
1.00
Feb
1942
326
2.83
4.28
2.36
.66
1.50
71.00
Mar
1943
373
2.73
3.91
2.06
.69
1.50
1.00
Apr
1944
.375
2.72
3.61
1.86
.73
1.50
71.00
May
1945
.375
2.62
3.29
1.67
.75
1.50
1.00
June
1946
375
2.53
3.05
1.64
81
1.50
1.00
July
1947
.594
2.61
3.24
2.01
1.03
1.50-1.75
1.00
Aug
1948
1.040
2.82
3.47
2.40
1.44
1.75-2.00
1.34
Sept
1949
1.102
2.66
3.42
2.21
1.49
2.00
1.50
Oct
1950
1.218
2.62
3.24
1.98
1.45
2.07
1.59
Nov
1951
1.552
2.86
3.41
2.00
2.16
2.56
1.75
Dec
1952
1.766
2.96
3.52
2.19
2.33
3.00
1.75
1988:
1953
1.931
2.47
2.85
3.20
3.74
2.72
2.52
3.17
1.99
Jan
1954
.953
1.63
2.40
2.90
3.51
2.37
1.58
3.05
1.60
Feb
1955
1.753
2.47
2.82
3.06
3.53
2.53
2.18
3.16
1.89
1.78
Mar
1956
2.658
3.19
3.18
3.36
3.88
2.93
3.31
3.77
2.77
2.73
Apr
1957
3.267
3.98
3.65
3.89
4.71
3.60
3.81
4.20
3.12
3.11
May
1958
1.839
2.84
3.32
3.79
4.73
3.56
2.46
3.83
2.15
1.57
June
1959
3.405
3.832
4.46
4.33
4.38
5.05
3.95
3.97
4.48
3.36
3.30
July
1960
2.928
3.247
3.98
4.12
4.41
5.19
3.73
3.85
4.82
3.53
3.22
Aug
1961
2.378
2.605
3.54
3.88
4.35
5.08
3.46
2.97
4.50
3.00
1.96
Sept
1962
2.778
2.908
3.47
3.95
4.33
5.02
3.18
3.26
4.50
3.00
2.68
Oct
1963
3.157
3.253
3.67
4.00
4.26
4.86
3.23
5.89
3.55
4.50
3.23
3.18
Nov
1964
3.549
3.686
4.03
4.19
4.40
4.83
3.22
5.83
3.97
4.50
3.55
3.50
Dec
1965
3.954
4.055
4.22
4.28
4.49
4.87
3.27
5.81
4.38
4.54
4.04
4.07
1989:
1966
4.881
5.082
5.23
4.92
5.13
5.67
3.82
6.25
5.55
5.63
4.50
5.11
Jan
1967
4.321
4.630
5.03
5.07
5.51
6.23
3.98
6.46
5.10
5.61
4.19
4.22
Feb
1968
5.339
5.470
5.68
5.65
6.18
6.94
4.51
6.97
5.90
6.30
5.16
5.66
Mar
1969
6.677
6.853
7.02
6.67
7.03
7.81
5.81
7.81
7.83
7.96
5.87
8.20
Apr
1970
6.458
6.562
7.29
7.35
8.04
9.11
6.51
8.45
7.71
7.91
5.95
7.18
May
1971
4.348
4.511
5.65
6.16
7.39
8.56
5.70
7.74
5.11
5.72
4.88
4.66
June
1972
4.071
4.466
5.72
6.21
7.21
8.16
5.27
7.60
4.73
5.25
4.50
4.43
July
1973
7.041
7.178
6.95
6.84
7.44
8.24
5.18
7.96
8.15
8.03
6.44
8.73
Aug
1974
7.886
7.926
7.82
7.56
8.57
9.50
6.09
8.92
9.84
10.81
7.83
10.50
Sept
1975
5.838
6.122
7.49
7.99
8.83
10.61
6.89
9.00
6.32
7.86
6.25
5.82
Oct
1976
4.989
5.266
6.77
7.61
8.43
9.75
6.49
9.00
5.34
6.84
5.50
5.04
Nov
1977
5.265
5.510
6.69
7.42
8.02
8.97
5.56
9.02
5.61
6.83
5.46
5.54
Dec
1978
7.221
7.572
8.29
8.41
8.73
9.49
5.90
9.56
7.99
9.06
7.46
7.93
1990:
1979
10.041
10.017
9.71
9.44
9.63
10.69
6.39
10.78
10.91
12.67
10.28
11.19
Jan
1980
11.506
11.374
11.55
11.46
11.94
13.67
8.51
12.66
12.29
15.27
11.77
13.36
Feb
1981
14.029
13.776
14.44
13.91
14.17
16.04
11.23
14.70
14.76
18.87
13.42
16.38
Mar
1982
10.686
11.084
12.92
13.00
13.79
16.11
11.57
15.14
11.89
14.86
11.02
12.26
Apr
1983
8.63
8.75
10.45
11.10
12.04
13.55
9.47
12.57
8.89
10.79
8.50
9.09
May
1984
9.58
9.80
11.89
12.44
12.71
14.19
10.15
12.38
10.16
12.04
8.80
10.23
June
1985
7.48
7.66
9.64
10.62
11.37
12.72
9.18
11.55
8.01
9.93
7.69
8.10
July
1986
5.98
6.03
7.06
7.68
9.02
10.39
7.38
10.17
6.39
8.33
6.33
6.81
Aug
1987
5.82
6.05
7.68
8.39
9.38
10.58
7.73
9.31
6.85
8.21
5.66
6.66
Sept
1988
6.69
6.92
8.26
8.85
9.71
10.83
7.76
9.19
7.68
9.32
6.20
7.57
Oct
1989
8.12
8.04
8.55
8.49
9.26
10.18
7.24
10.13
8.80
10.87
6.93
9.21
Nov
1990
7.51
7.47
8.26
8.55
9.32
10.36
7.25
10.05
7.95
10.01
6.98
8.10
Dec
1991
5.42
5.49.
6.82
7.86
8.77
9.80
6.89
9.32
5.85
8.46
5.45
5.69
1991:
Jan
High-low
High-low
Feb
Mar
1986:
Apr
Jan
7.04
7.13
8.41
9.19
10.05
11.44
8.06
10.89
7.62
9.50-9.50
7.50-7.50
8.14
May
Feb
7.03
7.08
8.10
8.70
9.67
11.11
7.44
10.68
7.54
9.50-9.50
7.50-7.50
7.86
June
Mar
6.59
6.60
7.30
7.78
9.00
10.49
7.07
10.50
7.08
9.50-9.00
7.50-7.00
7.48
July
Apr
6.06
6.07
6.86
7.30
8.79
10.19
7.32
10.27
6.47
9.00-8.50
7.00-6.50
6.99
Aug
May
6.12
6.16
7.27
7.71
9.09
10.29
7.67
10.22
6.53
8.50-8.50
6.50-6.50
6.85
Sept
June
6.21
6.28
7.41
7.80
9.13
10.34
7.98
10.15
6.63
8.50-8.50
6.50-6.50
6.92
Oct
July
5.84
5.85
6.86
7.30
8.88
10.16
7.62
10.30
6.24
8.50-8.00
6.50-6.00
6.56
Nov
Aug
5.57
5.58
6.49
7.17
8.72
10.18
7.31
10.26
5.83
8.00-7.50
6 00-5.50
6.17
Dec
Sept
5.19
5.31
6.62
7.45
8.89
10.21
7.14
10.17
5.61
7.50-7.50
5.50-5.50
5.89
Oct
5.18
5.26
6.56
7.43
8.86
10.24
7.12
10.02
5.61
7.50-7.50
5.50-5.50
5.85
4 Bank-discoun
Nov
5.35
5.42
6.46
7.25
8.68
10.07
6.86
9.91
5.69
7.50-7.50
5.50-5.50
6.04
5 For monthly
Dec
5.49
5.53
6.43
7.11
8.49
9.97
6.93
9.69
5.88
7.50-7.50
5.50-5.50
6.91
period.
6 Since July 19
1 Rate on new issues within period; bank-discount basis.
these rates. Prio
2 Yields on the more actively traded issues adjusted to constant maturities by the Treasury Department.
the one at which
3 Effective rate (in the primary market) on conventional mortgages, reflecting fees and charges as well as contract rate and
From Octobe
assuming, on the average, repayment at end of 10 years. Rates beginning January 1973 not strictly comparable with prior rates.
securities maturi
See next page for continuation of table.
Sources: Depa
Investors Service
378
STATE DAT UNIT
OUNCEL OF HOUNOMIC ADVISHRS
12/1/91 Released Feb 1992
SCIENCE &
ENGINEERING
INDICATORS
1991
TENTH EDITION
NATIONAL SCIENCE BOARD
7
Appendix table 6-3.
402
Country share of global market for high-tech manufactures, by industry: 1980-90
(page 1 of 3)
1988
1989
1990
1980
1981
1982
1983
1984
1985
1986
1987
(est.)
(est.)
(est.)
Percent
HIGH-TECH MANUFACTURES
United States
40.4
39.5
38.9
37.8
37.9
36.3
36.9
37.5
37.0
36.0
35.9
Japan
18.4
19.7
20.4
21.6
23.3
23.6
23.4
25.1
26.5
28.4
29.2
West Germany
11.8
11.7
11.8
11.8
11.3
12.0
11.5
10.5
10.1
9.5
9.4
France
6.2
6.1
6.1
5.8
5.3
5.4
5.2
4.9
4.7
4.7
4.7
United Kingdom
8.1
8.1
8.2
8.0
7.9
8.2
8.1
8.2
8.2
8.4
8.5
Italy
3.9
3.7
3.4
3.3
3.2
2.9
3.2
3.1
3.1
2.9
2.8
EC-12
35.2
34.8
34.6
34.7
33.4
34.3
33.7
32.0
31.5
30.0
29.2
Europe
38.5
38.1
38.0
38.0
36.4
37.5
37.1
35.1
34.4
32.4
31.4
Industrial chemicals
United States
32.7
33.1
29.8
29.2
28.0
25.8
28.5
31.4
31.2
32.2
32.5
Japan
16.1
14.4
15.3
14.0
14.1
13.4
12.1
13.1
12.7
13.4
14.1
West Germany
16.2
16.9
17.9
19.1
19.5
20.4
20.4
18.5
18.7
18.8
18.4
France
5.0
5.2
5.8
5.5
5.1
5.3
5.3
4.9
5.0
5.1
4.8
United Kingdom
8.8
8.4
9.0
9.4
9.7
10.1
9.5
9.2
9.2
9.3
9.1
Italy
5.1
5.2
4.4
4.4
4.9
4.9
4.3
4.3
4.3
4.3
4.0
EC-12
43.0
44.3
45.8
48.1
49.6
52.0
49.9
46.5
47.2
45.9
44.3
Europe
47.9
49.1
51.2
53.3
54.8
57.6
56.0
52.2
52.8
51.3
50.4
Drugs and medicines
United States
29.6
29.6
30.3
30.3
30.4
30.0
30.4
31.4
31.4
30.8
29.2
Japan
21.2
21.7
22.1
22.0
21.2
20.7
20.4
19.9
20.1
20.1
20.3
West Germany
13.1
13.1
12.5
12.5
12.7
12.3
12.1
11.4
11.5
11.4
10.9
France
5.6
5.3
4.7
4.4
4.3
4.0
3.8
3.6
3.8
4.0
3.9
United Kingdom
9.3
8.8
9.1
8.8
9.1
9.0
9.2
9.4
9.6
10.0
9.9
Italy
5.5
5.4
5.6
5.4
6.1
6.5
5.8
5.7
6.2
6.3
6.2
EC-12
40,7
40.3
39.1
38.9
39.8
39.8
38.6
38.1
39.0
39.5
39.0
Europe
46.0
45.6
44.6
44.6
45.4
45.9
45.7
45.0
45.7
46.3
47.5
Engines and turbines
United States
44.2
37.9
35.0
33.0
35.4
34.8
35.4
35.4
35.8
35.2
34.9
Japan
18.4
16.1
17.9
18.8
18.0
17.0
14.9
15.7
15.5
15.8
15.3
West Germany
11.3
9.9
9.0
9.4
10.3
11.2
10.9
11.2
10.7
10.8
11.6
France
6.8
6.1
5.6
5.7
5.9
5.3
4.9
5.1
4.9
4.7
4.9
United Kingdom.
6.8
18.3
20.5
18.3
17.1
19.7
21.9
20.9
21.4
22.6
22.3
Italy
4.2
3.7
3.1
4.9
5.5
3.4
3.2
3.1
3.0
2.9
3.0
Appendix A. Appendix Tables
EC-12
32.7
40.8
41.3
41.3
41.6
42.7
44.3
43.6
43.3
43.8
44.3
Europe
37.2
40
726
48.1
46.5
48.1
49.6
48.8
48.5
48.9
49.6
(continu 1)
6
"ECONOMIC ENDICATORS" by CEA
TOTAL OUTPUT, INCOME, AND SPENDING
GROSS DOMESTIC PRODUCT
In the second quarter of 1992, according to revised estimates, current-dollar gross domestic product (GDP) rose 4.3
percent (annual rate) or $62.0 billion. Real GDP (GDP in 1987 dollars) rose 1.5 percent and the implicit price
deflator rose 2.7 percent.
BILLIONS OF DOLLARS (RATIO SCALE)
BILLIONS OF DOLLARS (RATIO SCALE)
6,000
6,000
SEASONALLY ADJUSTED ANNUAL RATES
5,600
5,600
5,200
5,200
GDP
4,800
IN 1987 DOLLARS
4,800
4,400
4,400
4,000
4,000
GDP
IN CURRENT DOLLARS
3,600
3,600
3,200
3,200
2,800
2,800
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
SOURCE: DEPARTMENT OF COMMERCE
COUNCIL OF ECONOMIC ADVISERS
it the
[Billions of current dollars; quarterly data at seasonally adjusted annual rates]
1 that
geant
Personal
Gross
Exports and imports of goods
Government purchases
Adden-
Gross
and services
Final
Gross
two
con-
private
dum:
Period
domestic
Federal
sales of
domestic
0 the
sumption
domestic
State
Gross
domestic
product
expendi-
invest-
Net
Total
and
pur-
national
S for
Exports
Imports
National
Non-
tures
ment
Total
local
product
chases 1
exports
defense
defense
product
opies
1982
3,149.6
2,059.2
503.4
-20.6
282.6
303.2
607.6
266.6
193.8
72.7
341.1
3,165.5
3,170.2
3,179.8
1983
3,405.0
2,257.5
546.7
-51.4
276.7
328.1
652.3
292.0
214.4
77.5
360.3
3,410.6
3,456.5
3,434.4
1984
3,777.2
2,460.3
718.9
-102.7
302.4
405.1
700.8
310.9
233.1
77.8
389.9
3,706.1
3,879.9
3,801.5
1985
4,038.7
2,667.4
714.5
-115.6
302.1
417.6
772.3
344.3
258.6
85.7
428.1
4,014.1
4,154.3
4,053.6
1986
4,268.6
2,850.6
717.6
-132.5
319.2
451.7
833.0
367.8
276.7
91.1
465.3
4,260.0
4,401.2
4,277.7
1987
4,539.9
3,052.2
749.3
-143.1
364.0
507.1
881.5
384.9
292.1
92.9
496.6
4,513.7
4,683.0
4,544.5
1988
4,900.4
3,296.1
793.6
-108.0
444.2
552.2
918.7
387.0
295.6
91.4
531.7
4,884.2
5,008.4
4,908.2
1989
5,250.8
3,523.1
832.3
-79.7
508.0
587.7
975.2
401.6
299.9
101.7
573.6
5,217.5
5,330.5
5,266.8
1990
5,522.2
3,748.4
799.5
-68.9
557.0
625.9
1,043.2
426.4
314.0
112.4
616.8
5,515.9
5,591.1
5,542.9
1991
5,677.5
3,887.7
721.1
-21.8
598.2
620.0
1,090.5
447.3
323.8
123.6
643.2
5,687.7
5,699.3
5,694.9
1982:
IV
3,195.1
2,128.7
464.2
-29.5
265.6
295.1
631.6
281.4
205.5
75.9
350.3
3,241.4
3,224.6
3,222.6
1983: IV
3,547.3
2,346.8
614.8
-71.8
286.2
358.0
657.6
289.7
222.8
66.9
367.9
3,527.1
3,619.1
3,578.4
1984: IV
3,869.1
2,526.4
722.8
-107.1
308.7
415.7
727.0
324.7
242.9
81.9
402.2
3,818.1
3,976.2
3,890.2
1985: IV
4,140.5
2,739.8
737.0
-135.5
304.7
440.2
799.2
356.9
268.6
88.3
442.4
4,107.9
4,276.0
4,156.2
1986:
IV
4,336.6
2,923.1
697.1
-133.2
333.9
467.1
849.7
373.1
278.6
94.5
476.6
4,355.4
4,469.8
4,340.5
1987: IV
4,683.0
3,124.6
800.2
-143.2
392.4
535.6
901.4
392.5
295.8
96.7
509.0
4,623.7
4,826.2
4,690.5
1988: IV
5,044.6
3,398.2
814.8
-106.0
467.0
573.1
937.6
392.0
296.8
95.2
545.7
5,027.3
5,150.7
5,054.3
1989: IV
5,344.8
3,599.1
825.2
-73.9
523.8
597.7
994.5
405.1
302.5
102.6
589.3
5,314.6
5,418.7
5,365.0
1990:
I
5,445.2
3,672.4
820.3
-72.1
541.2
613.3
1,024.7
420.3
311.6
108.7
604.3
5,437.1
5,517.4
5,464.1
II
5,522.6
3,715.3
833.0
-59.9
551.2
611.2
1,034.3
424.4
312.9
111.5
610.0
5,484.9
5,582.6
5,537.0
III
5,559.6
3,787.8
805.7
-76.3
555.9
632.2
1,042.4
422.6
308.4
114.3
619.7
5,549.2
5,635.9
5,577.8
IV
5,561.3
3,818.2
739.0
-67.2
579.7
646.9
1,071.3
438.3
323.2
115.0
633.0
5,592.3
5,628.5
5,592.7
1991:
I
5,585.8
3,821.7
705.4
-28.7
573.2
602.0
1,087.5
451.3
332.4
118.8
636.3
5,614.4
5,614.6
5,614.9
II
5,657.6
3,871.9
710.2
-15.3
594.3
609.6
1,090.8
449.9
325.9
124.0
640.8
5,679.4
5,672.9
5,674.3
III
5,713.1
3,914.2
732.8
-27.1
602.3
629.5
1,093.3
447.2
321.9
125.3
646.0
5,712.9
5,740.3
5,726.4
IV
5,753.3
3,942.9
736.1
-16.0
622.9
638.9
1,090.3
440.8
314.7
126.1
649.5
5,744.2
5,769.3
5,764.1
1992: I
5,840.2
4,022.8
722.4
-8.1
628.1
636.2
1,103.1
445.0
313.6
131.4
658.0
5,855.9
5,848.3
5,859.8
II
5,902.2
4,057.1
773.2
-37.1
625.4
662.5
1,109.1
444.8
311.7
133.1
664.3
5,894.1
5,939.4
5,909.3
1 GDP less exports of goods and services plus imports of goods and services.
Source: Department of Commerce, Bureau of Economic Analysis.
1
BLONOMIC REPORT of THE PREDIDENT
6
NATIONAL INCOME OR EXPENDITURE
TABLE B-1.-Gross domestic product, 1959-91
[Billions of dollars, except as noted; quarterly data at seasonally adjusted annual rates]
Personal consumption expenditures
Gross private domestic investment
Fixed investment
Gross
Nonresidential
Change
in
Year or quarter
domestic
Non-
Durable
busi-
product
Total
durable
Services
Total
Pro-
goods
Resi-
goods
ducers'
ness
Total
Struc-
dential
inven-
Total
durable
tures
tories
equip-
ment
1959
494.2
318.1
42.8
148.5
126.8
78.8
74.6
46.5
18.1
28.3
28.1
4.2
1960
513.4
332.4
43.5
153.1
135.9
78.7
75.5
49.2
19.6
29.7
26.3
3.2
1961
531.8
343.5
41.9
157.4
144.1
77.9
75.0
48.6
19.7
28.9
26.4
2.9
1962
571.6
364.4
47.0
163.8
153.6
87.9
81.8
52.8
20.8
32.1
29.0
6.1
1963
603.1
384.2
51.8
169.4
163.1
93.4
87.7
55.6
21.2
34.4
32.1
5.7
1964
648.0
412.5
56.8
179.7
175.9
101.7
96.7
62.4
23.7
38.7
34.3
5.0
1965
702.7
444.6
63.5
191.9
189.2
118.0
108.3
74.1
28.3
45.8
34.2
9.7
1966
769.8
481.6
68.5
208.5
2C4.6
130.4
116.7
84.4
31.3
53.0
32.3
13.8
1967
814.3
509.3
70.6
216.9
221.7
128.0
117.6
85.2
31.5
53.7
32.4
10.5
1968
889.3
559.1
81.0
235.0
243.1
139.9
130.8
92.1
33.6
58.5
38.7
9.1
1969
959.5
603.7
86.2
252.2
265.3
155.2
145.5
102.9
37.7
65.2
42.6
9.7
1970
1,010.7
646.5
85.3
270.4
290.8
150.3
148.1
106.7
40.3
66.4
41.4
2.3
1971
1,097.2
700.3
97.2
283.3
319.8
175.5
167.5
111.7
42.7
69.1
55.8
8.0
1972
1,207.0
767.8
110.7
305.2
351.9
205.6
195.7
126.1
47.2
78.9
69.7
9.9
1973
1,349.6
848.1
124.1
339.6
384.5
243.1
225.4
150.0
55.0
95.1
75.3
17.7
1974
1,458.6
927.7
123.0
380.8
423.9
245.8
231.5
165.6
61.2
104.3
66.0
14.3
1975
1,585.9
1,024.9
134.3
416.0
474.5
226.0
231.7
169.0
61.4
107.6
62.7
-5.7
1976
1,768.4
1,143.1
160.0
451.8
531.2
286.4
269.6
187.2
65.9
121.2
82.5
16.7
1977
1,974.1
1,271.5
182.6
490.4
598.4
358.3
333.5
223.2
74.6
148.7
110.3
24.7
1978
2,232.7
1,421.2
202.3
541.5
677.4
434.0
406.1
274.5
93.9
180.6
131.6
27.9
1979
2,488.6
1,583.7
214.2
613.3
756.2
480.2
467.5
326.4
118.4
208.1
141.0
12.8
1980
2,708.0
1,748.1
212.5
682.9
852.7
467.6
477.1
353.8
137.5
216.4
123.3
-9.5
1981
3,030.6
1,926.2
228.5
744.2
953.5
558.0
532.5
410.0
169.1
240.9
122.5
25.4
1982
3,149.6
2,059.2
236.5
772.3
1,050.4
503.4
519.3
413.7
178.8
234.9
105.7
-15.9
1983
3,405.0
2,257.5
275.0
817.8
1,164.7
546.7
552.2
400.2
153.1
247.1
152.0
-5.5
1984
3,777.2
2,460.3
317.9
873.0
1,269.4
718.9
647.8
468.9
175.6
293.3
178.9
71.1
1985
4,038.7
2,667.4
352.9
919.4
1,395.1
714.5
689.9
504.0
193.4
310.6
185.9
24.6
1986
4,268.6
2,850.6
389.6
952.2
1,508.8
717.6
709.0
492.4
174.0
318.4
216.6
8.6
1987
4,539.9
3,052.2
403.7
1,011.1
1,637.4
749.3
723.0
497.8
171.3
326.5
225.2
26.3
1988
4,900.4
3,296.1
437.1
1,073.8
1,785.2
793.6
777.4
545.4
182.0
363.4
232.0
16.2
1989
5,244.0
3,517.9
459.8
1,146.9
1,911.2
837.6
801.6
570.7
193.1
377.6
230.9
36.0
1990
5,513.8
3,742.6
465.9
1,217.7
2,059.0
802.6
802.7
587.0
198.7
388.3
215.7
0
1991 P
5,671.8
3,886.8
445.2
1,251.0
2,190.5
725.3
745.6
550.4
174.5
376.0
195.1
-20.2
1982: IV
3,195.1
2,128.7
246.9
787.3
1,094.6
464.2
510.5
397.7
168.9
228.8
112.8
-46.3
1983: IV
3,547.3
2,346.8
297.7
839.8
1,209.3
614.8
594.6
426.9
154.6
272.3
167.7
20.2
1984: IV
3,869.1
2,526.4
328.2
887.8
1,310.4
722.8
671.8
491.5
184.1
307.3
180.4
51.0
1985: IV
4,140.5
2,739.8
354.4
939.5
1,446.0
737.0
704.4
511.3
195.4
315.9
193.1
32.6
1986: IV
4,336.6
2,923.1
406.8
963.7
1,552.6
697.1
715.9
491.7
168.4
323.3
224.2
-18.8
1987: IV
4,683.0
3,124.6
408.8
1,029.4
1,686.4
800.2
740.9
514.3
180.0
334.3
226.5
59.3
1988:
4,752.4
3,199.1
428.8
1,041.5
1,728.8
770.6
753.8
526.8
176.6
350.2
227.0
16.8
II
4,857.2
3,260.5
433.1
1,062.0
1,765.4
788.4
774.6
544.1
181.4
362.6
230.5
13.8
III
4,947.3
3,326.6
433.5
1,085.8
1,807.3
800.7
783.6
550.3
183.1
367.3
233.3
17.1
IV
5,044.6
3,398.2
452.9
1,105.8
1,839.5
814.8
797.5
560.2
186.8
373.4
237.3
17.3
1989:
5,139.9
3,436.5
449.4
1,120.0
1,867.1
844.7
801.6
565.1
191.1
374.0
236.5
43.2
II
5,218.5
3,490.6
457.2
1,142.5
1,891.0
844.3
802.0
570.2
190.0
380.2
231.8
42.3
III
5,277.3
3,551.7
474.5
1,155.3
1,921.9
826.8
803.5
574.2
194.9
379.3
229.2
23.3
IV
5,340.4
3,592.8
458.0
1,169.8
1,965.0
834.4
799.4
573.4
196.5
376.8
226.0
35.1
1990:
5,422.4
3,667.3
479.9
1,194.9
1,992.5
812.0
815.3
586.3
202.4
384.0
229.0
-3.3
II
5,504.7
3,706.0
464.6
1,200.9
2,040.4
825.9
800.2
580.0
199.5
380.5
220.3
25.6
III
5,570.5
3,785.2
467.1
1,228.4
2,089.6
821.8
807.7
596.3
201.7
394.7
211.4
14.1
IV
5,557.5
3,812.0
451.9
1,246.4
2,113.6
750.9
787.4
585.2
191.2
394.0
202.2
-36.5
1991:
5,589.0
3,827.7
440.7
1,246.3
2,140.7
709.3
748.4
560.0
184.0
375.9
188.4
-39.2
II
5,652.6
3,868.5
440.0
1,252.9
2,175.6
708.8
745.8
554.6
180.0
374.7
191.2
-37.1
III
5,709.2
3,916.4
452.9
1,257.4
2,206.1
740.9
744.5
546.8
169.0
377.8
197.7
-3.6
IV P
5,736.6
3,934.4
447.2
1,247.6
2,239.6
742.3
743.4
540.3
164.8
375.6
203.1
-1.1
See next page for continuation of table.
298
CENTRAL INTELLIGENCE AGENCY
7
D'UNITED STATES OF AMERICAN
Directorate of
Intelligence
Handbook of
Economic Statistics, 1991
A Reference Aid
Research for this report was
completed on 1 August 1991.
CPAS 91-10001
September 1991
Figure 5
World Gross National Product
and Population, 1990
Percent
GNP
21.6 trillion 1990 US $
USSR 12.3
Eastern Europe 2.9
United States 25.4
India 1.2
Brazil 1.8
Other 17.4
Japan 9.8
Other OECD 29.2
Population
5.3 billion persons
United States 4.7
Japan 2.3
Eastern Europe 2.3
USSR 5.5
Other OECD 9.1
Brazil 2.9
India 16.0
Other 57.2
331507 8-91
13
Table 1
Selected World Statistics a
1960
1970
1980
1985
1986
1987
1988
1989
1990
Gross national product (billion 1990 US $)
7,110.0
11,600.0
16,400.0
18,500.0
19,100.0
19,800.0
20,600.0
21,200.0
21,600.0
Population (million persons, midyear)
3,050.0
3,722.0
4,478.0
4,881.0
4,968.0
5,057.0
5,147.0
5,238.0
5,329.0
Agricultural production index (1980=100)
59.0
79.0
100.0
115.0
116.0
116.0
118.0
122.0
124.0
3,381.8
Exports (billion US $)
129.8
313.1
1,997.8
1,906.9
1,989.1
2,480.3
2,822.8
3,020.5
Crude oil, excluding natural gas liquids (million b/d)
21.0
45.7
59.5
52.9
55.7
55.2
57.5
58.5
59.2
Natural gas (trillion cubic feet)
15.8
37.0
54.0
62.1
63.4
68.2
69.6
71.9
72.6
Hard coal (million metric tons)
1,985.0
2,141.0
2,728.0
3,160.0
3,250.0
3,335.0
3,454.0
3,474.0
3,562.0
Brown coal and lignite (million metric tons)
640.0
794.0
1,005.0
1,200.0
1,220.0
1,245.0
1,255.0
1,255.0
1,175.0
Electricity (billion kilowatt-hours)
2,348.0
4,953.0
8,247.0
9,750.0
9,960.0
10,587.0
11,035.0
11,427.0
11,179.0
Iron ore (million metric tons)
522.0
769.0
896.0
858.0
868.0
883.0
890.0
879.0
893.0
Bauxite (million metric tons)
27.6
57.8
88.8
89.9
88.2
91.9
98.4
105.7
112.2
Pig iron (million metric tons)
259.0
431.0
510.0
490.0
508.0
523.0
551.0
563.0
555.0
Crude steel (million metric tons)
346.0
594.0
714.0
698.0
713.0
734.0
777.0
782.0
732.0
Refined copper (thousand metric tons)
NA
7,543.0
8,916.0
9,860.0
9,602.0
9,833.0
10,332.0
10,727.0
10,696.0
Primary aluminum (million metric tons)
4.5
9.7
15.4
16.1
15.4
16.4
17.5
18.0
17.8
Smelter lead (thousand metric tons)
2,313.0
3,292.0
3,205.0
3,403.0
3,150.0
3,284.0
3,301.0
3,261.0
3,216.0
Refined zinc (thousand metric tons)
3,025.0
4,827.0
6,057.0
6,786.0
6,690.0
7,045.0
7,133.0
7,193.0
7,109.0
Primary tin (thousand metric tons)
192.0
227.0
248.0
217.0
182.0
189.0
215.0
231.0
227.0
Mineral fertilizer C (million metric tons)
NA
66.3
119.0
133.9
140.1
147.1
149.6
137.6
NA
Nitrogen fertilizer C (million metric tons of N)
30.2
59.7
74.7
73.3
77.5
81.8
84.9
NA
NA
Phosphate fertilizer C (million metric tons of P₂O₃)
NA
19.2
33.4
35.5
33.5
36.5
38.0
NA
NA
Potassium fertilizer C (million metric tons of K₂O)
NA
16.9
25.9
28.9
28.4
28.8
31.5
NA
NA
Synthetic fibers (thousand metric tons)
700.0
4,870.0
10,175.0
12,056.0
11,423.0
12,372.0
11,615.0
11,600.0
11,835.0
Automobiles (thousand units)
12,800.0
22,500.0
28,997.0
32,310.0
32,520.0
33,007.0
34,522.0
35,167.0
35,046.0
1,123.0
Cement (million metric tons)
NA
585.0
867.0
945.0
998.0
1,045.0
1,058.0
1,050.0
Grain (million metric tons)
929.0
1,220.0
1,580.0
1,803.0
1,822.0
1,755.0
1,726.0
1,853.0
NA
Wheat (million metric tons)
240.0
319.0
446.0
506.0
537.0
512.0
506.0
542.0
599.0
Coarse grain (million metric tons)
414.0
540.0
693.0
824.0
813.0
777.0
728.0
798.0
NA
492.0
513.0
519.0
Rice (million metric tons)
162.0
312.0
396.0
473.0
472.0
464.0
Potatoes (million metric tons)
285.0
312.0
264.0
284.0
290.0
283.0
274.0
279.0
278.0
Sugar (million metric tons)
61.4
76.7
87.7
105.1
101.3
101.8
103.7
104.5
NA
Coffee (thousand metric tons)
NA
3,566.0
4,810.0
5,800.0
5,151.0
6,351.0
5,684.0
6,021.0
6,040.0
26
Table 2
Selected OECD Countries: Economic Profile, 1990
United
Canada
Japan
European Community
States
France
Italy
Nether-
United
Germany
lands
Kingdom
Eastern
Western
Aggregative data
Population
Million persons at midyear
250.4
26.5
123.6
56.4
57.7
14.9
57.4
16.1
63.0
Percent change
0.7
1.1
0.4
0.4
0.2
0.6
0.3
-1.9
1.4
Gross domestic product
Billion 1990 US $ a
5,465.2
516.7
2,115.2
873.6
844.7
218.0
858.3
141.1
1,016.1
Percent real growth
1.0
0.9
5.6
2.8
2.0
3.1
0.8
-15.0
4.6
Per capita (1990 US $)
21,830
19,500
17,110
15,490
14,640
14,630
14,950
8.760
16,130
Industrial production (percent growth)
1.0
0.3
4.6
1.1
-0.7
3.6
-0.8
NA
5.9
Industry
Primary energy (million b/d oil equivalent)
34.2
6.4
1.5
2.2
0.7 c
1.4
4.3
1.2
2.7
Electricity (billion kilowatt-hours)
2,997.4
480.7
808.0
400.0
217.0
71.9
317.0
119.0 b
440.0
Crude steel (million metric tons)
89.7
14.5
110.3
19.0
25.4
5.4
17.9
5.6
38.4
Trade
Exports, f.o.b. (billion US $)
393.9
131.7
287.6
216.6
170.4
131.8
185.2
NA
420.0
Imports, c.i.f. (billion US $)
516.2
124.8
235.4
234.4
182.0
126.1
222.8
NA
354.8 c
Trade balance (billion US $)
-122.3
6.8
52.2
-17.8
-11.6
5.7
-37.6
NA
65.2
Living standard indicators
CO₂ emissions (metric tons per capita) d
5.34
4.58
2.20
1.56
1.71
2.23
2.67
5.36
3.00
Automobile registrations (units per thousand persons) d
571
448
241
395
398
349
353
208
462
Energy consumption (barrels oil equivalent per capita) b
57
61
24
29
20
37
27
44
32
Consumer prices (percent growth)
5.4
4.8
3.1
3.4
6.1
1.6
9.5
NA
2.7
Life expectancy (years)
76
77
79
76
77
78
75
73
76
Public polution control expenditure (US 1980 $ per
80
126
126
74
12
117
65
NA
111
capita)
a Data were converted at US purchasing power equivalents.
b Data are for 1989.
c Western area only.
d Data are for 1988 for the US and 1987 for the other
countries.
e Data are for 1986.
28
STATISTICAL UNIT
Only
Jt
2 1992
COUNCIL OF ECONOMIC ADVISERS
UNPUBLISHED DATA
JAN 2, 1992
1/28/92
Comparative Real Gross Domestic Product, Real GDP
Per Capita, and Real GDP Per Employed Person
1960-1990
figs popere
U.S.
Fourteen Countries
I. Description
Page
are not
A. Introduction
B. General note
2 1 the latest
C. Purchasing-power-parity exchange rates
4
D. Data limitations
4
1980
F. Table notes
5
II. Summary Tabulations
A. Relative levels of real GDP per capita and per employed
new pet
person (U.S. =100)
B. Average annual percent change in real GDP, GDP per capita,
7 6 of figs
GDP per employed person, and employment
II. Detailed Tabulations
due Thurs
or Fri
A. Relative levels of real GDP, GDP per capita, and GDP per employed
person: Purchasing-power-parity exchange rates
1. Relative levels: U.S.=100
9
2. Relative levels: U.S. 1990 dollars
15
will have
B. Trends in real GDP, GDP per capita, and GDP per employed person:
new pop
Measured in own country price weights
1. Index: 1982=100
21
+ new
C. Population and employment measures
1. Population
27
2. Employment
33
3. Employment-population ratio
39
date for
other than
D. Purchasing-power-parity exchange rates for GDP and relative prices
1. Purchasing-power-parity exchange rates
43
2. Comparative price levels: U.S.=100
45
U.S
3. Implicit price deflators for GDP
a. Trend index: 1982=100
47
b. Relative index: U.S. and 1982=100
49
1/31 - No
E. Supplementary tables: Comparisons at market exchange rates
1. Nominal GDP per capita and per employed person: U.S.=100
51
NEW FIGS
2. Market exchange rates
55
To BE
Prepared by: U.S. Department of Labor, Bureau of Labor Statistics,
Office of Productivity and Technology, January 1992.
AVAILABLE
6/17/92 here are the latest figures.
BUT CHF
8/4/92 No NEW DATA YET
CORRECTED
US GDP PER
CAPITA
JAN 22 1992
-17-
RELATIVE LEVELS: PURCHASING-POWER-PARITY EXCHANGE RATES
REAL GROSS DOMESTIC PRODUCT, REAL GDP PER CAPITA, AND REAL GDP PER EMPLOYED PERSON
OUTPUT BASED ON OECD PRICE WEIGHTS
(U.S. 1990 DOLLARS)
YEAR
UNITED
CANADA
JAPAN
KOREA
AUSTRIA
BELGIUM
DENMARK
FRANCE
GERMANY
STATES
VNIPA
GROSS DOMESTIC PRODUCT PER CAPITA
1960
12322
8753
3621
1182
5716
6173
7558
6617
7474
1961
12443
8846
4111
1215
5987
6458
7949
6909
7709
1962
12884
9296
4360
1206
6093
6770
8324
7239
7969
1963
13225
9599
4772
1280
6301
7015
8297
7492
8111
1964
13781
10048
5347
1367
6637
7436
8969
7899
8564
1965
14366
10518
5561
1410
6783
7634
9326
8201
8925
1966
15056
11024
6094
1542
7115
7826
9466
8557
9094
1967
15279
11145
6679
1595
7275
8088
9705
8889
9047
1968
15749
11559
7446
1735
7561
8399
10033
9203
9512
1969
16018
12004
8257
1932
8008
8935
10611
9767
10124
1970
15827
12144
8945
2055
8548
9479
10747
10235
10539
1971
16114
12682
9234
2213
8946
9791
10957
10624
10744
1972
16707
13265
9859
2293
9446
10270
11469
10998
11131
1973
17408
14132
10369
2575
9852
10843
11814
11504
11616
1974
17140
14542
10165
2751
10223
11253
11651
11784
11632
2/11/92
1975
16837
14701
10328
2909
10213
11055
11539
11698
11511
U.S.
1976
17498
15406
10644
3241
10699
11652
12255
12146
12184
1977
18104
15771
11036
3539
11182
11694
12417
12481
12558
1978
18777
16321
11469
3865
11197
12005
12561
12844
12949
using
1979
19038
16789
12004
4088
11748
12252
12973
13203
13475
Using ad pop
pop
1980
18715
16829
12342
3903
12091
12768
12895
13349
13574
18,718.
1981
18845
17232
12691
4127
12031
12650
12788
13431
13572
18,861
1982
18252
16514
13004
4295
12145
12830
13182
13698
13453
18,279.
1983
18778
16897
13264
4695
12423
12883
13527
13730
13711
18,818
1984
19754
17825
13743
5074
12591
13144
14127
13855
14149
19,808-
GDPmawpop 5513.8
1985
20185
18536
14340
5372
12892
13251
14727
14059
14453
20,254
1986
20573
19009
14628
5983
13029
13462
15242
14355
14764
20,655.
1987
21004
19574
15153
6640
13269
13768
15266
14615
14972
21,101'
1988
21619
20204
16026
7332
13745
14376
15340
15157
15425
21,731°
1989
21943
20545
16697
7708
14240
14875
15511
15675
15766
22,068.
251420 990
21931
20449
17571
8303
14711
15313
15741
16046
16231
22,056
21,931
TABLE CONTINUED ON FOLLOWING PAGE.
22,056
Table 8.2 seB
1990 Us/ger us 35.9 % higher
Jap US25.5+
-18-
RELATIVE LEVELS: PURCHASING-POWER-PARITY EXCHANGE RATES
REAL GROSS DOMESTIC PRODUCT, REAL GDP PER CAPITA, AND REAL GDP PER EMPLOYED PERSON
OUTPUT BASED ON OECD PRICE WEIGHTS
(U.S. 1990 DOLLARS)
JAN 22 1992
YEAR
ITALY
NETHER-
NORWAY
SWEDEN
UNITED
LANDS
KINGDOM
GROSS DOMESTIC PRODUCT PER CAPITA
1960
5503
7403
6896
8149
8095
1961
5917
7516
7258
8566
8295
1962
6244
7731
7394
8881
8307
1963
6549
7877
7615
9303
8603
1964
6680
8441
7938
9863
8987
1965
6847
8767
8293
10144
9127
1966
7209
8895
8535
10258
9269
1967
7677
9261
8993
10522
9471
1968
8130
9781
9117
10841
9821
1969
8572
10327
9448
11304
9907
1970
8970
10782
9572
11927
10117
1971
9054
11100
9944
11958
10342
1972
9233
11350
10378
12195
10565
1973
9820
11787
10728
12656
11374
1974
10288
12159
11218
13022
11270
1975
9959
12044
11621
13303
11196
1976
10564
12557
12354
13396
11613
1977
10915
12771
12742
13134
11743
1978
11237
13007
13268
13326
12161
1979
11875
13225
13893
13807
12431
1980
12351
13231
14431
14011
12171
1981
12400
13047
14508
13998
12039
1982
12396
12805
14503
14145
12211
1983
12475
12934
15127
14395
12670
1984
12775
13292
15950
14954
12853
1985
13074
13581
16739
15262
13293
1986
13434
13782
17380
15563
13783
1987
13829
13804
17641
15953
14380
1988
14363
14088
17460
16248
14902
1989
14777
14571
17450
16482
15140
1990
15034
14979
17693
16399
15206
TABLE CONTINUED ON FOLLOWING PAGE.
GDP per Capita
As of 9/21/92
1990 Dollars
25,000
22,056
20,000
18,718
17,571
16,231
15,000
13,574
12,342
10,000
5,000
0
1980
1990
U.S.
Japan
Germany
Source: Department of Labor.
Note: Adjusted with PPP exchange rates.
3
leadership in Congress has repeatedly refused to pass my economic growth
proposals or to present me with their own proposals that would have any
chance of accelerating the growth of our economy. Beginning in 1989, the
Congress has bottled-up my most important tax proposals through
parliamentary gamesmanship and, as recently as last March, they chose to
send me a jobs-destroying tax increase bill rather than pass my proposals
which would have created a half million new jobs. Send me a Congress
more interested in creating jobs than in creating political divisions and we
will get growth up.
Clinton "The old economic ideas of the last two decades did not produce growth,
did not create upward mobility, and most important, didn't prepare millions and
millions and millions of our people to compete."
Evaluation This claim is incorrect.
Response I suggest the following which builds on the campaign response:
o
The economic ideas of the Carter years were clearly failures. The 1980s,
however, were a different story.
Growth: Since 1982, following the Carter inflation and subsequent
disinflation, real GDP growth averaged 2.6 percent per year. (National
Income Accounts).
Upward mobility: During the 1980s, real median family income rose
almost 9 percent. The proportion of families with real incomes below
$15,000 fell almost 9 percent while the proportion of families with real
incomes above $50,000 rose by almost 30 percent. 5.3 million families
left the middle class by earning a lot more money and moving up.
(NB: Note that real median household income fell by 3.5 percent in
1991. Data to update the calculations above will not be available until
late September). (CEA calculations).
Competitiveness: The U.S. regained its position as the world's leading
exporter, beating out Japan and Germany, and in the process created
1.7 million export-related jobs. (Department of Commerce).
PAGE 1
Federal News Service, AUGUST 21, 1992
not only the German example, but the state of Hawaii, which has community
rating, primary health clinics, broad-based groups of health care providers, and
which charges 50 percent less for health insurance than the American average.
We can do it if we have the will to do it. (Applause.)
The third principle is that we have to invest today in the foundations of
tomorrow. I was criticized last night for wanting to invest 220 billion new
dollars over the next four years. My opponent didn't point out that I also
called for $140 billion of spending cuts over the next four years. We need to
increase real
investment of your tax dollars by $50 billion a year because all our competitors
are doing more. Nine nations now spend a higher percentage of their income on
kindergarten through twelfth grade education than we do. Virtually every
country in the world with an advanced economy spends a much higher percentage of
their income on infrastructure, on transportation and communications than we do,
and we have got to compete. We've got to rebuild our railroads, our highways,
our bridges, invest in a national information network to link every library,
and every laboratory, and every classroom, and every company, and every home
by the year 2015. Wouldn't it be nice, when our kids come home, if they could
have computers that link them up to the Library of Congress, not just to a video
game? (Applause.)
We need to take every last dollar by which we reduce defense and reinvest it in
an American economy for the 21st century, creating high-speed rail networks,
LEVEL 1 - - 1 OF 1 STORY
Copyright 1992 Federal Information Sytems Corporation
Federal News Service
AUGUST 21, 1992, FRIDAY
SECTION: WHITE HOUSE BRIEFING
LENGTH: 7507 words
HEADLINE: REMARKS BY GOVERNOR BILL CLINTON (D-AR)
TO THE DETROIT ECONOMISTS CLUB
DETROIT, MICHIGAN
KEYWORD:
ECONOMIST CLUB CLINTON
BODY:
GOV. CLINTON: Thank you very much. Thank you very much. Governor Blanchard and
distinguished members and guests of the Economic Club of Detroit, I really
appreciate that introduction Jim gave me. After the going over I got last
night, I need it. (Laughter.) But I'm always a little skeptical of those
TM
TM
TM
LEXIS:NEXIS®
LEXIS-NEXIS®
LEXIS-NEXIS®
Services of Mead Data Central, Inc.
Recyclable
CLINTON BUDGET PROPOSAL
(Deficit impact in $ billions)
4-Year
1993
1994
1995
1996
Total
DEFICIT REDUCTION
Defense:
Unspecified cuts beyond Bush
-2.0
-8.5
-10.5
-16.5
-37.5
Intelligence cuts
-1.0
-1.5
-1.5
-1.5
-5.5
-5.7
--
--
--
-5.7
Procurement reform
Inventory system reform
-2.3
-2.5
-2.5
-2.5
-9.8
Subtotal defense cuts
-11.0
-12.5
-14.5
-20.5
-58.5
International:
Consolidate overseas
-0.1
-0.2
-0.3
-0.3
-0.8
broadcasting system (USIA)
-2.0
--
--
--
-2.0
Unspecified cuts
Subtotal international
-2.1
-0.2
-0.3
-0.3
-2.8
Subtotal defense/international
-13.1
-12.7
-14.8
-20.8
-61.3
Vague reforms and administrative gimmicks:
Unspecified 3% admin cut
-2.0
-5.0
-6.5
-8.5
-22.0
Line-item veto of pork barrel
-3.8
-2.0
-2.0
-2.0
-9.8
projects
Federal agency energy
conservation
--
-0.9
-0.9
-0.9
-2.6
--
-2.0
-2.0
-2.0
-6.0
Reform debt financing
-17.1
RTC reform
-4.0
-4.0
-4.5
-4.6
Subtotal gimmicks
-9.8
-13.9
-15.9
-18.0
-57.5
Real reforms:
Workforce reduction
-2.0
-4.3
-4.5
-4.5
-15.3
White House staff cut
(*)
(*)
(*)
(*)
(*)
Legislative branch cut
-0.1
-0.1
-0.1
-0.1
-0.4
University projects
-0.7
-0.8
-0.8
-0.8
-3.1
USDA field offices
(*)
-0.1
-0.1
-0.1
-0.4
-0.1
-0.1
-0.1
-0.1
-0.5
HUD grants
Freeze consultants
-0.2
-0.2
-0.2
-0.2
-0.8
Increase nuclear waste
disposal fees
(*)
(*)
-0.1
-0.1
-0.2
Consolidate social services
--
-0.3
-0.3
-0.3
-0.8
programs
Terminate boney price supports
(*)
(*)
--
--
(*)
Medicare Part B premiums
-0.6
-1.0
-1.0
-1.8
-4.4
Subtotal real reforms
-3.7
-6.8
-7.2
-8.1
-25.9
Total spending cuts
-26.6
-33.3
-37.8
-46.8
-144.6
ID:
SEP 05'92
19:16 No.009 P.04
5
42%) are additional and irresponsible cuts in America's
national security programs. In short, at most 18% of the
cuts proposed by Clinton could even remotely be termed
"real."
o
Clinton's administrative gimmicks are the kind of smoke and
mirrors "cuts" that, like the innerent contradiction of a
Clinton's "deficit reduction" will really raise spending. 13
"pro-growth strategy" that raises taxes, confirms that
of the $145 billion in spending cuts, Clinton would only
terminate one federal program -- the honey bee program --
which Senator Gore has voted for on four occasions. This
stands in sharp contrast to the President who proposed in
his FY93 Budget to eliminate 246 federal programs, saving an
estimated $5 billion."
o
In an obvious "me-too" of the President, Clinton calls for a
line-item veto, but estimates that he would get just $10
billion in savings over four years. Unfortunately, it is
the Democratic Congress that has refused time and again to
give the President line-item veto authority. What are they
waiting for? Were Clinton truly serious about a line-item
veto, he would write the Democratic leaders tomorrow and
urge its passage. If a line-item veto were passed this
year, with a stroke of the pen President Bush would save
more than $10 billion this year alone.
0
Spending reform and control of entitlement spending are
needed -- a fact acknowledged by even Democrat Barbara
Jordan when she spoke before the Democratic Convention.
Evidently Governor Clinton was not listening. Not only does
President Bush understand this problem, he has already
proposed ways to stop out-of-control spending. In this
year's budget, the President proposed to cap the growth of
non-Social Security entitlement programs, saving nearly $180
billion over the next four years."
Illusory Deficit Reduction
o
By his own numbers, Clinton would add one trillion dollars
to the national debt over the next four years. 16 But, even
13
See Table 1.
14
Ibid.
15
Estimates of savings from a CPI-based cap on growth in
entitlement spending, Mid-Session Review of the Budget,
Appendix I, P. 415.
16
See Table 3.
ID:
SEP 05'92 19:16 No.009 P.05
6
this estimate significantly understates the cost of
Clinton's spending programs and overstates his claimed
budgetary savings. Once again, Clinton's numbers do not add
up.
-- Over $110 billion of his "savings" arise through
unspecified gimmicks, questionable revenues, and vague
proposals such as "RTC management reforms.
- Clinton fails to include in his spending estimates
massive new spending promises that he repeats almost
daily - $197 billion for more government-controlled
health care" and $45 billion for "middle income" tax
cuts."
0
The likely impact of Clinton's program over four years is at
least $200 billion in deficit spending on top of the $1
trillion addition to the national debt he already
acknowledges.
o
The Clinton plan relies on a grossly overstated estimate of
future real GDP growth, a so-called "rosy scenario." For
1993, Clinton's "moderate" growth path forecasts real growth
of 4.6% -- a full percentage point higher than anyone else's
estimates, even those by the pro-Democrat Congressional
Budget office."
o
The hypocrisy, and the real danger of the Clinton budget, is
that the growth he must assume in order to claim a reduction
in the deficit is a fantasy based not on economics, but on
17
"Putting People First: A National Economic Strategy,"
June 20, 1992. Cuts designated as vague reforms or
administrative gimmicks are grouped in Table 1.
18
Preliminary CBO estimate of the cost of play-or-pay,
(H.R. 3205, August 2, 1991).
19
Congressional Joint Committee on Taxation scoring of FICA
and dependent credits included in H.R. 4210.
20
This statistic represents the difference between the
Clinton deficit as advertised, and the "real" Clinton
deficit. See Table 4.
21
A one percent increase in the growth rate will make up
the difference between the "real" Clinton deficit and the
CBO baseline. See CBO, The Economic and Budget Outlook:
Fiscal Years 1993-1997, January 1992, p. 37. Clinton's
plan also contains a "strong" growth path that would
require 5.5% real GDP growth in 1993 according to an
analysis by the Minority Staff of the Joint Economic
Committee.
ID:
SEP 05'92
19:17 No. 009 P.06
CABLE 1
CLINTON BUDGET PROPOSAL
(Deficit impact in $ billions)
4-Year
1993
1994
1995
1996
Total
DEFICIT REDUCTION
Defense:
Unspecified cuts beyond Bush
-2.0
-8.5
-10.5
-16.5
-37.5
Intelligence cuts
-1.0
-1.5
-1.5
-1.5
-5.5
--S.T
----
--
-5.7
Inventory system reform
-2.3
-2.5
-2.5
-2.5
-9.8
Subtotal defense cuts
-11.0
-12.5
-14.5
-20.5
-58.5
International:
Consolidate overseas
broadcasting system (USIA)
-0.1
-0.2
-0.3
-0.3
-0.8
Unspecified cuts
-20
--
--
|
-2.0
Subtotal international
-2.1
-0.2
-0.3
-0.3
-2.8
Subtotal defense/international
-13.1
-12.7
-14.8
-20.8
-61.3
Vague reforms and administrative gimmicks:
Unspecified 3% admin cut
-2.0
-5.0
-6.5
-8.5
-22.0
Line-item veto of pork barrel
projects
-3.8
-2.0
-2.0
-2.0
-9.8
Federal agency energy
conservation
--
-0.9
-0.9
-0.9
-2.6
Reform debt financing
--
-2.0
-2.0
-2.0
-6.0
RTC reform
-4.0
-4.0
-4.5
-4.6
-17.1
Subtotal gimmicks
-9.8
-13.9
-15.9
-18.0
-57.5
Real reforms:
Workforce reduction
-2.0
-4.3
-4.5
-4.5
-15.3
White House staff cut
(*)
(")
(*)
(*)
(*)
Legislative branch cut
-0.1
-0.1
-0.1
-0.1
-0.4
University projects
-0.7
-0.8
-0.8
-0.8
-3.1
USDA field offices
(*)
-0.1
-0.1
-0.1
-0.4
HUD grants
-0.1
-0.1
-0.1
-0.1
-0.5
Freeze consultants
-0.2
-0.2
-0.2
-0.2
-0.8
Increase nuclear waste
disposal fees
(*)
(*)
-0.1
-0.1
-0.2
Consolidate social services
programs
--
-0.3
-0.3
-0.3
-0.8
Terminate honey price supports
(*)
(*)
--
--
(*)
Medicare Part B premiums.
-0.6
-1.0
-1.0
-1.8
-4.4
Subtotal real reforms
-3.7
-6.8
-7.2
-8.1
-25.9
Total spending cuts
-26.6
-33.3
-37.8
--46.8
-144.6
ID:
SEP 05'92
19:14 No.009 P.01
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ID:
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19:15 No. 009 P.02
FACT SHEET
BUSH
QUAYLE
Issues Office
92
August 10, 1992
THE CLINTON ECONOMIC PLAN:
EXCLUDER TAXES, FEWER JOBS
"Clinton's program brims with cliches and dubious
calculations
His plan seems slick because it is."
- Robert J. Samuelson
Washington Post, July 1, 1992
Summary: Clinton Returns to "Tax and Spend"
Bill Clinton is selling his "National Economic Strategy" as
a way to "put people first." What Clinton will really do is
put government first. His plan will impose the largest
single tax increase in American history, followed by over
$219 billion in new spending.¹ Hard-working Americans
investing in new jobs and economic growth will be the first
to be hit by the Clinton tax hikes and the last to be helped
by new federal spending.
Clinton pretends his plan would reduce the deficit, when in
fact it would worsen it with massive new spending and new
constraints on economic growth. Instead of addressing the
largest threat to our future -- the deficit - the Clinton
plan would return America to a tired formula of higher taxes
and higher spending.
|
The Clinton plan would put the United States further
into debt and farther from a balanced budget.
Bill Clinton unabashedly proposes to raise taxes by at
least $150 billion -- the largest first- and four-year
tax increase in our country's history -- and use the
proceeds to increase spending by at least $219 billion.
1
See Table 2, Senate Budget Committee Minority Staff
Summary of Clinton Budget Proposal, duplicated from
"Putting People First: A National Economic Strategy,"
June 20, 1992. The estimate excludes the cost of
Clinton's health care reform proposal. If included,
spending increases exceeding $416.5 billion would result.
Paid for by Bush Quayle "92 Primary Committee, inc,
1030 15th St, N.W. Washington, D.C. 20005
ID:
SEP 05'92 19:15 No.009 P.03
4
cost of health coverage rose to $150 per month per
employee, they would opt to close their doors. Another
24 percent said they would keep their business open but
would lay off employees. All told, the NFIB concluded,
"between one and two million small business jobs would
evaporate. #10
In sum, mandates are taxes on the use of labor and, as
such, will particularly damage the employment
prospects and wages of low skilled workers -- the very
group Clinton claims to want to help.
o
All told, Clinton's new taxes and mandates on business will
cost American businesses $101 billion next year - fully 54%
of their 1991 profits." At a time when the economy is
starting to grow again, any plan that takes away half of
American business' profits - profits that are being
invested in new workers and better products - is bound to
cost jobs.
o
In addition to whatever jobs Clinton would lose through his
economic plan, Clinton and Gore have endorsed dramatic
increases in Corporate Average Fuel Economy (CAFE)
standards. This radical and unwise step would put at risk
between 150,000 and 300,000 jobs. of these jobs, 142,000
are auto workers, including 4,500 GM workers in Senator
Gore's home-state of Tennessee."
o
Clinton's $220 billion transfer from the free-market through
the federal agencies and back to the private sector will
generate neither growth nor incremental jobs. Rather,
Clinton will replace productive investment and real growth
with massive spending in huge new government bureaucracies.
Spending couched as "investment" is no more than spending by
another name.
K
Phony Spending Cuts
0
Clinton claims to cut spending by $145 billion, but the
numbers do not add up. of the alleged $145 billion in
spending cuts, $57.5 billion (or 40%) are administrative
gimmicks and unspecified measures, and $61.3 billion (or
10
"Small-business jobs, growth would decline under play-or-
pay health plan," National Federation of Independent
Business, August 7, 1992.
11
Figure for total after-tax profits of U.S. corporations
from the U.S. Department of Commerce, Bureau of Economic
Analysis.
12
Motor Vehicle Manufacturers Association of the United
States, March 1992.