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Chris Jennings, Jennifer Klein to Michael Waldman, Gene Sperling;
RE: State of the Union (3 pages)
01/18/1996
RESTRICTION
P5
COLLECTION:
Clinton Presidential Records
Speechwriting
Michael Waldman
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FOLDER TITLE:
SOTU [State ofthe Union] Memos, Materials, etc. 1996
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�JANUARY 19, 1996
MEMORANDUM FOR
DON BAER
MICHAEL WALDMAN
FROM:
BETSY MYERS
SUBJECT:
STATE OF THE UNION LANGUAGE
There are several key sections in the State of the Union that will go a long way at reaching
the women constituency. However, if further edits are being accepted, I would like to submit
the following ideas which will help solidify a strong favorable response from women. (Please
note that the sections in bold represent the suggested additional language.)
Section on Violence Against Women:
I am proud that we passed the Violence Against Women Act, a step toward keeping homes
and work places safer for children, women and families threatened by domestic violence,
made three-strikes-and-you're-out the law of the land, and said that if you kill a law
enforcement officer, you will get the death penalty.
Section on Small Business:
Small businesses started by women now employ more people than the Fortune 500 and add
more than $1 and a half trillion in receipts to the economy.
Section on Minimum Wage:
And if we honor work, then work must pay — equally for men and women.
That's wrong. Congress should increase the minimum wage - a small price that will
determine many times whether a family can obtain the child care and transportation
needed to go to work.
Section on Choice:
I challenge people on both sides of the abortion divide to find common ground and preserve
the ability of women and families to make their own moral choices.
At the very least, let us do what we can to encourage adoption, increase accessibility to
affordable family planning services, and unite...
�9C
I b e l i e v e that the t h r e a t to our young people by tobacco use i s a
p u b l i c h e a l t h i s s u e we must address. Each year, t h i s deadly and
a d d i c t i v e product claims the l i v e s of more than 400,000 of our
fellow c i t i z e n s . Every s i n g l e day, another 3,000 c h i l d r e n become
r e g u l a r smokers.
A thousand of those c h i l d r e n w i l l e v e n t u a l l y
die from smoking-related d i s e a s e .
And smoking by our c h i l d r e n i s on the r i s e . Between 1991 and
1995, past-month smoking among 8th graders has increased by a
t h i r d . And i n 1995, 21.6% of high school s e n i o r s smoked d a i l y ,
up from 17.2% i n 1992.
I t i s up to a l l of us -- family, schools, communities - - t o work
together to protect our c h i l d r e n from the " p e d i a t r i c d i s e a s e " of
n i c o t i n e a d d i c t i o n . And we i n government can help f a m i l i e s ,
schools and communities succeed.
I n the past year, my A d m i n i s t r a t i o n has proposed targeted
measures to f i g h t t h i s deadly problem. F i r s t , we have proposed
r e g u l a t i o n s designed to r e s t r i c t the methods used by the tobacco
i n d u s t r y and r e t a i l e r s to s e l l tobacco products to c h i l d r e n .
S p e c i f i c a l l y , these r e g u l a t i o n s cut o f f c h i l d r e n ' s access to
tobacco and reduce the appeal of these products. Second, j u s t
l a s t week we gave s t a t e s guidance on how to implement the Synar
Amendment, named f o r i t s author, the l a t e Mike Synar, which
r e q u i r e s s t a t e s to have and to enforce laws banning the s a l e and
d i s t r i b u t i o n of tobacco products to c h i l d r e n .
Today, we know that our c h i l d r e n are l o s i n g the b a t t l e to
tobacco, i t s easy a v a i l a b i l i t y , and the $6 b i l l i o n expended by
the tobacco i n d u s t r y ' s a d v e r t i s i n g and promotion e f f o r t s .
And
they have l o s t despite our e f f o r t s to warn our k i d s of tobacco's
dangers. Today, we know that we have f a i l e d to a c t f o r too long.
Yes, t h i s i s s u e i s about f a m i l i e s , schools, and communities -i t ' s about g i v i n g them a f i g h t i n g chance.
[ I d e n t i f y c h i l d r e n / c h i l d i n the audience with tobacco s t o r i e s and
provide anecdotesJ
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�Law
Enforcement
M i s s i n g C h i l d r e n : Dennis Burke worked w i t h White House Counsel
and s e v e r a l agencies i n the d r a f t i n g of the P r e s i d e n t i a l
D i r e c t i v e and s u p p o r t i n g m a t e r i a l on P u b l i c n o t i c e s of
M i s s i n g C h i l d r e n i n Federal b u i l d i n g s t h a t t h e P r e s i d e n t i s
s i g n i n g today.
We are a l s o working on l e g i s l a t i o n on t h i s i s s u e
t h a t can be i n t r o d u c e d i n the f u t u r e t o show t h e A d m i n i s t r a t i o n ' s
c o n t i n u e d commitment t o t h i s i s s u e .
Drug I n i t i a t i v e :
Dennis Burke i s working on a P r e s i d e n t i a l
d i r e c t i v e t o p r o v i d e s t r i c t e r r e g u l a t i o n s on t h e drug, Rohypnol,
which i s b e i n g abused by adolescents t h r o u g h o u t t h e South, and
e s p e c i a l l y i n F l o r i d a where i t i s e n t e r i n g t h e c o u n t r y . During a
Youth Speak-out i n F l o r i d a , I heard from s e v e r a l youth
p a r t i c i p a n t s of t h e widespread use and easy a v a i l a b i l i t y o f t h i s
drug i n Miami.
Teen Pregnancy
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P r i v a t e Sector I n i t i a t i v e :
The l e a d e r s h i p c o u n c i l f o r t h e
n a t i o n a l p r i v a t e - s e c t o r campaign i s t a k i n g shape. As o f January
18, t h e f o l l o w i n g i n d i v i d u a l s have agreed t o serve: Whoopi
Goldberg; Andrew Young; Hugh P r i c e , Urban League; C h a r l o t t e
Beers, O g i l v y & Mather; Warren Rudman; Nancy Kassebaum; Kay
Graham; C. E v e r e t t Koop; B e l l e S a w h i l l ; I r v i n g H a r r i s , H a r r i s
Foundation; David Hamburg, Carnegie C o r p o r a t i o n .
^ " C a l T f o r n i a Proposal on Teen Pregnancy P r e v e n t i o n :
I n h i s State
of t h e S t a t e address on January 9, Governor Wilson announced a
new p r o p o s a l t o reduce unwed and teenage pregnancy t h a t he c a l l s ,
" P a r t n e r s h i p f o r Responsible P l a n n i n g . "
Reactions are mixed
among b o t h l i b e r a l s and c o n s e r v a t i v e s , and i t has not y e t been
debated i n t h e S t a t e L e g i s l a t u r e .
The p r o p o s a l has t h e
f o l l o w i n g components: (1) $34 m i l l i o n i n Community Challenge
Grants, f o r l o c a l communities and p r i v a t e o r g a n i z a t i o n s t o
develop and implement new programs; (2) $15.7 m i l l i o n f o r a
s t a t e w i d e m u l t i - m e d i a campaign; (3) $15 m i l l i o n f o r a m e n t o r i n g
program f o r a t - r i s k youth; (4) $1 m i l l i o n f o r development o f
abstinence-based c u r r i c u l a ; (5) $20 m i l l i o n t o p r o v i d e
c o n t r a c e p t i v e s t o low-income women, along w i t h s i m p l i f i e d
r e g i s t r a t i o n and broader e l i g i b i l i t y requirements f o r Medi-Cal;
and (6) $6 m i l l i o n t o expand a program designed t o c r a c k down on
s t a t u t o r y rape.
�TO:
FROM:
DATE:
RE:
Michael Waldman
Gene Sperling
Chris Jennings
Jennifer Klein j t •
1/18/96
State of the Union
Assuming you want them, attached please find a few comments on the health care
section of yesterday's draft of the State of the Union.
If you need language about what should be done to prevent fraud and abuse, how
about: "I challenge the Congress to pass tough legislation to give our law enforcement agents
more tools and guaranteed funding to investigate and prosecute fraud and abuse in Medicare
and Medicaid." (Keep in mind that there is bipartisan agreement on the new guaranteed
funding to fight fraud and abuse. However, the Republicans create exceptions to antikickback rules, limit prohibitions on physician referrals to laboratories in which they have a
financial interest, and put new obstacles in the way of enforcing fraud and abuse.) The
President can also talk about creative ways the Administration is fighting fraud. For example,
we are about to begin a demonstration project that will reprogram the Los Alamos nuclear
detection computer to detect fraud in Medicare. (If you are interested, we are getting the
specifics.)
In addition, I have a few general thoughts. The health care section seems out of
context. I think it's worth referring to the budget fight again for two reasons. First, because
all of the things you talk about in the section after insurance reform have nothing to do with
the challenge. If you start with a nod to the budget, the discussion of fraud and abuse and
protecting the guarantee under Medicaid make more sense. Second, because it helps explain
why the President is taking only a few small steps toward reform (albeit things that people
really care about, like portability). You can remind people that the President is still
committed to reform but that this year we are fighting hard to make sure we don't take steps
backward — so that people don't lose the critical services they get today from Medicare and
Medicaid.
Please feel free to call if you need anything.
�America. Second, a dramatic expansion of college work-study. I want to make it possible for
1 million young Americans to be working their way through college by the Year 2000.
And tonight I ask colleges and universities to make a promise to those hard-working
students - don't let the cost of college rise faster than Americans' incomes.
We owe our children something else as well. We must stand up together as adults to
protect our children from the glorification of violence and degradation of values that assault
them every day.
We must say to those in the entertainment industry: create TV shows as if your own
children were going to watch them. And parents, if you don't like what your children are
watching, tum the thing off.
To those who produce and market cigarettes, we must say: take responsibility for your
actions. Sell your products to adults, if you wish. But draw the line on children.
We must challenge our schools to teach ethics and values. And if it will stop children
from shooting children for designer shoes, then schools should be able to require student
uniforms.
We must challenge our young people not to get pregnant or father a child until they
are married. Tonight, I am pleased to say that a group of prominent media, business and civic
leaders have answered my call for a new national campaign against teen pregnancy.
Higher standards. Technology in the classroom. An aggressive strategy to open wider
the doors of college. Teaching our children right from wrong. That is the duty we owe our
children.
America's third challenge is this: we must change th£.
-ss-peoplff can take
health insurance from job to job.
Jcut tf mi p Opts vh bli* <)
It is wrong that insurance companies compete by cutting off coverage to sick
peoplfer^^j^/
is wrong that Congress has not passed a law to change thfat. We should enact reforms to^(i)
stoi\insurance companies from denying you coverage ^Taiging-f^Twhen
you aftf-chanjjpg jobs^)because you or a member of your family have a pr5existin]fconditiorjf. Republican
^—
Senator Nancy Kassebaum and Democratic Senator Ted Kennedy have introduce4_a^billto
make the rules fair. It4s bipartisan, andJti£jtfgn^Sen£it
to me, and I/will signit
^TM,^}
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1
We should help give small businesses the same purchasing power/to buy health care as]
big businesses, and find a way to ensure that if you lose your job, you^^wt^oslyfiurj} ^*
ca/l Of-ft'd h
car
6
We need to crack down on Medicare/raud, which cost^[x billiph] every year. But /
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�government^should not have to do it alonejl challenge the American Medical Association to
stop standing in the way of tougher prosecutions, and take responsibility for policing your
own.
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And I challenge Cpfigress: It is one of the great strengths of our country that poor
children^ and the disabled/have a guarantee of quality health care. It is a good thing that older
. Americans^lmoWthey wi 1 receive quality care, so they can live out their lives in dignity. As
long as I afq President, I will standjigjor these basic values.
fffit
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'fourth challenge is thlsTgo vern ment and businesses must join to give our
people ie tools they need to become winners of economic change.
? /
America's economy is growing, steady and strong. Over the last three years, we have
fad the strongest growth of any major economy. The combined rate of inflation and
unemployment is the lowest in 27 years. Home ownership is at its highest rate in 15 years.
Businesses have created over 7 million American jobs. Businesses owned by women employ
yM ^'"'^more people than the Fortune 500 combined. Three years ago, we were losing jobs in
<,«1 oMf construction; today, we have gained nearly 800,000. A decade ago, the auto industry was on
yuylt
its back. Today, Detroit is beating Japan for thefirsttime since the 1970s.
M« *
<u i tQvHt j
j<
Thanks in no small measure to the work of Vice-President Gore, the federal workforce
\\r will W i
i i t in 30 years, and getting smaller every day. We have cut 16,000 pages of
v\ivJ m
unnecessajy j^ieg
regulations. Govemment works better, costs less, and produces results,
O l<j»v
not red tape,
jto nf- lit (
5
^tt"^ ef Mfl Today's economy offers real opportunity for our people; our challenge is to ensure that
Ihf JW'M'^H Americans reap the rewards.
s
s m a
e s
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iM^I
That is why I challenge Congress to pass my GI Bill for workers. It would
consolidate 70 overlapping job training programs, and give the money directly to American
workers to pay for tuition at a community college or training at their next job. People who
need new skills shouldn't have to waste their time waiting in line at a govemment office.
We should make it easier for small businesses to start pension plans, and easier for
Americans to save for their retirement.
And businesses have a responsibility to make sure that pensions are secure. If
Congress sends me legislation that lets big companies raid their workers' pensions, I will veto
it.
And we all have a responsibility to honor work and make work pay. Millions of
Americans — many of them women with children — eam the minimum wage, now at a 40
year low. A year ago, I called on Congress to raise the minimum wage. Since then, its value
has dropped $250 -- while Congress* pay has gone up [x]. That's wrong.
Vtf5l' WijC'iK
��THE ENTERPRISE F U D TO
ONAI N
January l ^ W l 13 Ml : I 1
J A M I : S W ROUSF.
I ' l l U N I l l R ("MAIBMAN
I B A k I ON I I A K V i : v III
MRMAN
President William Jefferson Clinton
The White House
1600 Pennsylvania Avenue
Washington, D.C.
CI.O
I'DWARD L Q U I N N
SFNIOR V I C t PRESIDE N I
REYNARDRAMSEY
SENIOR VICE PRESIDENT
PATRICIA T ROUSE
VICE P B E S I D E M i l sri.RE.TARY
PATRICK M COSTIGAN
V E P EDN
I : RS E T
C
I
Dear Mr. President:
ELI.EN I.AZAR
VICE PRESIDENT
RICHARD M HESSE
Across America, urban communities struggle with seemingly insurmountable
problems. The list of urban ills is well known; solutions more difficult tofind.Yet the
true strength of this country is forged by the character of its people and their ability to
bring forth the best ideas, practices and advances in response to adversity.
TREASURER
TRUSTEES
HARRY W. ALBRIGHT, JR
SUSAN G. BAKER
CATHERINE P. BESSANT
JOHN P BOORN
PAULC BROPHY
This character is found today in the thousands of people who are working to
reverse the deterioration of their neighborhoods. They are part of a growing number of
community-based development organizations that have accomplished lasting results in
neighborhoods where other revitalization approaches have failed.
RAOUL L C A R R O L L
DERRICK D CEPHAS
RAYMOND C. CHAMBERS
JILL K.CONWAY
N . G O R D O N COSBY
DOROTHY C U L L M A N
CUSHINC, N DOLBEARE
MARITN LINE
SAMUKI.GARY
As you prepare your State of the Union Address, please consider publicly
acknowledging some "Community Heros" who are committed to helping rebuild their
neighborhoods. The Enterprise Foundation is proud to offer for your consideration six
outstanding leaders from urban communities around the country. Their stories can serve
to illustrate that ~ through public-private partnership and resident participation - our
urban neighborhoods can and will be rejuvenated.
W . H KROME GEORGE
RONAI.nC.RZYWINSKI
F BARTON IIARVLY 111
A N D R E W HEISKELL
ROBERT A IGER
JAMES A.JOHNSON
:
JUDITH 1 . JONES
JING I.YMAN
CM A R I E S M.'C.MAI IIIAS
I1AVIDO M A X W E L L
kAYMONl) | SUL.UIkl.
KOIll-KI S. SU N A M A R A
:
l KI:l) N O R I H , ^
You have been a strong advocate for the thousands of people working so hard,
and so effectively to do for themselves what no one else can: restore hope for a healthy
environment in which to live, work, and raise their families. It is our sincere hope that
you will reserve time in your speech to honor the efforts of a few Americans who
exemplify the type of grassroots initiative and strength of purpose that have distinguished
our nation as a people undeterred by adversity.
i;mv\km. Q I . I N N
AI.BERI II R.M Ni k
Hl-NkY S. H LL ss
MICHAEL I k O I II
JAMES U . RL>L si:
PAI R I C H 1 ROUSE
W I L L I A M A SCHRI.YLR
A N D R E W C SIGI.ER
I MCDONALD
WILI.IAMS
KAREN H A S T I i : W I L L I A M S
1
RAUL Y /. A G L 1 R R E
BARRY 7.IGAS
The Enterprise Foundation is happy to assist your staff in this matter.
HONORARY TRUSTEES
D ANI LI It. BURKE
Best wishes,
I ISI I C CARTER. JR.
COY LKl.LIND
J O H N W GARDNER
BEVERLY SILLS GREENOUGH
LOUIS E. M A R T I N
I.I.EDA M A R T I N G
RICHARD D PARSONS
F. Barton Harvey III
Chairman of the Board &
Chief Executive Officer
M I I . I O N J PI ERIE
C I I A R I ESS. K l l n i l
ALEXANDER B. TROWBRIDGE
A N D R E W J. YOUNG
FBH:mjb
cc: James W. Rouse
AM PR I C A N CITY B U I L D I N G - 10227 W I N C O P I N CIRC LF. SUITE 500 - C O L U M B I A . M A R Y L A N D 21044
410.964 1230- 410.964 1418 FAX
�ONAI N
t 1 THE ENTERPRISE F U D TO
Hope ftimiHimics
Community Development Heros
JAMES W ROUSE
t'OtJNPF R C H A I R M A N
E I I A k E O N IIARVEV III
C H A I R M A N fe CCU
EDWARD I.. Q U I N N
Loretta Smith
Community Building In Partnership, Inc.
Baltimore, MD
:
St NIUR VICF. PRESIDENT
R EY NA R D RAMSEY
SI NICIR VICE PRESIDENT
PATRICIA T ROUSE
VICT PRIiSIDI.NI fe StCRI^TARV
PATRICK M COSTIGAN
VlCtPRESlDENl
For those who lack essentials such as adequate food and clothing, the steps
toward self-sufficiency ~ lining up child care, obtaining a high school equivalency
certificate, going for job interviews - become insurmountable hurdles.
EI.LEN LAZAR
VICE PRESIDENT
R I C H A R D M. HESSE
TREASURER
TRUSTEES
HARRY W. ALBRIGHT.JR
Loretta Smith understands the frustration of those trying to get the help they
need to become productive hard-working citizens. In 1992, she took a stand on behalf
of the residents of Baltimore's Sandtown-Winchester community who had fallen
through the cracks of the system.
SUSANG BAKER
CATHERINE P BESSANT
JOHN P BOORN
PAUL C. BROPHY
RAOUL L. CARROLL
DERRICK D CEPHAS
RAYMOND G. CHAMBERS
I I M . K CONWAY
On her own, with nothing more to invest than her time and commitment to
the neighborhood, Ms. Smith established the Family Assistance Network (FAN), a
community food and clothing bank that now has over 200 members. FAN receives
food from local nonprofit food banks and clothes from personal donations, which are
then provided to members in return for their volunteer services, such as reading to
neighbors and neighborhood clean-up efforts.
N G O R D O N COSBY
DOROTHY C U L L M A N
GUSHING N DOLBEARE
M A R T I N FINE
SAMUEL GARY
W H KROME GEORGE
RONALDGRZYWINSKI
F. BARTON HARVEY HI
ANDREW HEISKELL
ROBERT A. IGER
|AMLS A. JOHNSON
JUDITH E JONES
JING LYMAN
A former Social Security Administration service representative, Loretta also
serves as a family support team leader for Community Building in Partnership, Inc.,
a community-based nonprofit that is administering the nation's first Neighborhood
Transformation program in partnership with the city of Baltimore and The Enterprise
Foundation. Sandtown, a community in West Baltimore, has approximately 10,000
residents, 95 percent of whom live in deep poverty. The Neighborhood
Transformation program is working to simultaneously change the community's
dysfunctional systems - including housing, health care, education, public safety and
employment.
CHARLES McC.MATIIIAS
DAVID O. M A X W E L L
kAYSIOND J McGLllWE
ROBI Rl S. M c N A M A R A
TR TD S O k l L G A
EDWARD I.. Q U I N N
AI.III.K T II k A T N E k
HTNk* s ki:uss
MICH.vEl. I k O TM
lAMI.S \S kOUSL
PAIRICIA I ROUSE
W I L L I A M \ SCHREYER
AN DR E W C. S1GLE R
I. M C D O N A L D W I L I . I A M S
KAREN HASTIE W I L L I A M S
RAUL
/AGIIIRRE
HARRY /.IGAS
Ms. Smith single-handedly raised two children in Sandtown-Winchester while
working full time to open FAN, and is currently helping to raise two grandchildren
and a foster child. Additionally, she serves on the boards of three local nonprofit
organizations that are addressing health care issues including drug abuse, infant
mortality, and emergency food services. She also is a neighborhood advocate for the
community law center.
HONORARY TRUSTEES
D A N I E L B BURKE
LISLE C CAR I ER, JR
COY EKI.UND
JOHN W GARDNER
BEVERLY Sll.I SGRELNOUGH
LOUIS E M A R T I N
1 TEDA MARTING
R I C H A R D D PARSONS
MILTON J I'E I RII:
I II VKI.ESS ROI1B
ALEXANDER B. I R O W B R I D G E
VNDREW J YOUNG
At age 45, Ms. Smith received her AA degree in 1995 and this month starts
work toward her BA in human services and social work at the University of
Baltimore.
A M E R I C A N CITY ItUILDINC,. 10227 W1NCOPI N C I R C L E , S U I T I ; 500 • COLUM Bl A, M A R Y L A N D 21044
410.DM 12 50- 410.464.1918 FAX
�Dee Walsh
Executive Director
REACH Community Development, Inc.
Portland, OR
When Dee Walsh looks at an abandoned house, she sees potential. As executive director
of one of the most experienced community development corporations in Portland, Oregon, Dee
Walsh is an expert in turning a neighborhood eyesore into an asset.
Ms. Walsh, who heads REACH Community Development, Inc., considers her greatest
achievement to be the growing involvement of residents in community planning programs.
REACH'S aim, she said, is to help people recognize their stake in the well-being of their
neighborhoods and to offer a framework that will enable them to be effective leaders for change.
Serving Southeast Portland since 1982, REACH has helped thousands of people with
limited incomes obtain safe, affordable homes. REACH has developed more than 700 units of
affordable rental housing, nearly half of which provide homes for people with special needs,
such as the frail elderly, formerly homeless women and mentally disabled residents.
Additionally, REACH just completed 18 houses under its homeownership program.
REACH also is assisting community residents in a recently launched neighborhood
commercial revitalization project that is focusing on physical improvements, recruiting new
business, helping existing businesses gain access to funding sources, and working to eliminate
vandalism and gang-related crime problems. This initiative is being funded by a John Heinz
Award that the organization received from HUD in 1995.
Ms. Walsh has developed a model community planning process that enables residents to
define problems and solutions that will help revitalize inner-city neighborhoods. The
organization's first community plan received the President's Volunteer Action Award in 1993.
-2-
�Robert L. Simpson
Executive Director
Crispus Attucks Association, Inc.
York, PA
In his 16 years as executive director of Crispus Attucks Association, Bobby Simpson has
rehabilitated houses, educated children and sparked the renewal of a neighborhood's spirit.
Bom on the west side of York, Pennsylvania, the second of 10 children, Bobby Simpson
worked as a bricklayer and a foundry worker before joining the Caterpillar Tractor Co. in 1968.
That same year, he saw his neighborhood torn apart byriots.In the aftermath, Mr. Simpson
helped establish a neighborhood youth center, and got to know the leaders of other recreation
centers in the city. In 1976, Mr. Simpson was asked to serve on the Crispus Attucks' board. In
1979, he was asked to serve as the organization's executive director.
During his tenure, Simpson has helped the organization rehabilitate dozens of vacant
neighborhood houses that are rented at affordable rates for low-income residents. Under
Simpson's guidance, Crispus Attucks launched a day care program that now serves more than
175 children. Additionally, the organization provides drug abuse and employment counseling and
operates a seniors recreational program.
Crispus Attucks is widely recognized as one of the nation's finest community-based
development organizations. Last year, 85 percent of the children who have been in Crispus
Attucks day care, after-school tutoring and recreational programs were on the honor rolls of
their respective schools.
"There's no reason to exist if you don't help your fellow man out; if you don't give back
some of what you learned in life," said Simpson.
-3-
�Yvonne Stennett
Executive Director
Community League of W. 159th Street
New York, NY
Yvonne Stennett is a dynamic leader with a long history of working with nonprofit
community development organizations. In 1976, she graduated from college and started working
as a youth employment counselor with the New York Urban League. She joined the Community
League in 1979 as an adult advisor and has been with the group ever since.
Anyone who has walked down W. 159th Street can see the impact she has had on the
neighborhood. Her commitment to a wide range of programs ~ affordable housing, youth
programs, employment training, health services and neighborhood beautification ~ has created
a improvement movement throughout the community. She has spurred revitalization, involving
local residents and business people who have reclaimed formerly boarded-up apartment buildings
in the Harlem neighborhood. She has reached out to private landlords on the block to improve
their properties. She nurtures local leadership by urging tenants to become involved in block
activities and supporting their efforts.
Community League serves the Washington Heights neighborhood in upper Manhattan.
Programs include affordable housing development, youth services, economic development, health
services, recreational programs and substance abuse prevention. The organization has been
responsible for renovating 430 apartments and has established a family health center and holds
an annual health fair at which neighborhood children may receive free screenings.
Ms. Stennett created a mentoring program for adolescents that focuses on building selfesteem, preparation for the work place, and health care issues.
-4-
�Beatriz Olvera Stotzer
President
New Economics for Women
Los Angeles, CA
Bea Olvera Stotzer remembers what it was like for her and her five siblings to sleep in
bunk beds crammed into the family's one-bedroom house, while her parents often slept on the
kitchen floor.
At the age of six, Ms. Olvera Stotzer's father left his children - two of whom were
stricken with muscular dystrophy ~ and her mother was forced to go on welfare to support the
family. Ms. Olvera Stotzer vividly remembers her mother's sense of bitter disappointment at
having to accept outside help. But she also remembers her mother's expectation that the children
would make good use of the support they received by getting a good education and by being
productive citizens.
Today, Ms. Olvera Stotzer is a recognized national leader for the innovative economic
development work she is doing as founder and president of New Economics for Women in Los
Angeles, which was established 10 years ago. NEW's approach is to create models that will
demonstrate that urban social and economic patterns of poverty can be permanently changed by
addressing the real economic needs of women and children - affordable housing, access to
quality child care, employment training programs that lead to higher paying jobs, and a network
of community support and services.
NEW is thefirsteconomic development corporation in the nation created and operated
by Latina women. The organization primarily focuses on the needs of Latina women who are
single parents.
Ms. Stotzer brings to her work more than 20 years of management experience in the
areas of govemment, public affairs and program development. Currently, Ms. Olvera Stotzer
is manager of multicultural affairs for the Los Angeles Department of Water and Power.
In 1985, Ms. Olvera Stotzer organized NEW and undertook the development of the $18
million, 110-unit Casa Loma apartment complex in one of the poorest, most densely populated
neighborhoods of Los Angeles. Casa Loma provides homes to working single parents and their
families.
Last year, construction started on two new apartment complexes in the Casa Loma
neighborhood just west of downtown Los Angeles.
Ms. Olvera Stotzer has a long history of community involvement and has received
numerous awards from state and local officials and professional organizations.
-5-
�Gus Rosado
Executive Director
El Barrio's Operation Fightback (East Harlem)
New York, NY
A native of the El Barrio neighborhood on East Harlem, Gus Rosado founded El Barrio's
Operation Fightback in 1983. He has undertaken massive efforts to revitalize the neighborhood
by "fighting back" against years neglect that turned the neighborhood into a safe haven for drug
dealers and gangs.
Mr. Rosado has played a key role in the rehabilitation and transformation of 18 buildings
— once abandoned shells — into greatly needed safe and affordable housing.
Mr. Rosado has spearheaded the development of more than 200 decent, affordable
apartments in El Barrio. Through his organization, hundreds of families have avoided disruptive
evictions and displacements; landlords of substandard buildings have been forced to make muchneeded repairs and ultimately upgrade the community's housing stock.
Gus Rosado's efforts have forged a real sense of community in the El Barrio. Residents
watch out for each other and outreach activities, such as block fairs, field trips, and music and
dance recitals for neighborhood children, have fostered a small town atmosphere in this comer
of East Harlem.
Through Gus Rosado's work, hundreds have been housed, educated, and inspired to take
pride in themselves and their neighborhood.
-6-
�JAN-19-96
13 i 4 0 FROM.EPA/ADM
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January 19,199S
MEMORANDUM FOR MICHAEL WALDMAN AND BRUCE REED
FROM:
LORETTA UCELLI, EPA
SUBJECT:
SUGGESTED EXAMPLES FOR THE STATE OF THE UNION
EPA's Brownfields Proeram - Urban Revitalization
In the first three months.of the Clinton Administration, the President pledged that his
Administration would revitalize America's cities by cleaning up abandoned pieces of contaminated
land that are a blight to our communities, a threat to our health, and an obstacle to economic
growth.
. The EPA Brownfields program is an Administration initiative that awards grants to cities
to clean up and redevelop contaminated land - creating jobs and returning the land to produaive
community use. This common sense, cost-effective program captures the best of what we can do
together to revitalize the cities of this country.
Cleveland example: Like many hard working Americans, Bill Robinson had a difficult
time when his company moved out of town. A forty-year-old man with three children
depending on him, Mr. Robinson was out of work in Cleveland for eight months.
Then Mr. Robinson's community (Cuyahoga County) received a grant from EPA to clean
up contaminated land in the old industrial neighborhoods. On a long-abandoned piece of
property, there now stands a warehouse and trucking firm, a thriving business that has
created 171 new jobs. Bill Robinson has one of those new jobs.
Clean Air in Detroit
For 15 years the air in Detroit failed to meet federal public health standards. Residents
were breathing unhealthy air. To solve this problem, EPA worked with the City of Detroit,
county and state officials and industry on common sense measures to protect public health and
clean up the air. Literally thousands of people made changes in what they did every day to help
this community breathe clean air And what they did worked. Last year, we were able to list
Detroit in compliance with federal public.health standards for air. That's good for the health of
the people of this city and it's good for Detroit's economy. Just like Detroit, Americans in more
than 50 cities across the country are now breathing cleaner air that meets health standards — and
all 55 have met that goal in the first three years of the Clinton Admihistration. Millions more
Americans are breathing clean air. And our most vulnerable citizens — children, the sick, and the
elderly - will be protected.
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There is much that remains to be done. But It Is Important as Americans to
be thankful fbr the many blessings our nation enjoys and for those which the
world enjoys because of our nation's capacity for generosity and sharing.
More Americans are working and enjoying things that just a few years ago
were beyond our reach - things that we now take for granted in most of
1
our families homes: the convenience of microwave cooking, the choices
of cable television, the quality and safety of better automobiles, new forms
of entertainment from CDs to travel, new antibiotics and the other miracles
of modem medicine. These things are daily within the reach of millions
more Americans, thanks to our free enterprise system of research,
manufacturing and distribution and thanks to a strong economy where
there are 7 million more people working than there were just 3 years ago.
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The blessings our Creator has bestowed on our nation shine Ihrough the
generosity and courage of Americans to the farthest reaches of the world.
Where last year the blast of mortar rounds reverberated in Bosnian
marketplaces, today the sounds we hear there are fhe bustle of
commercial trade and the playful laughter of children - because Americans
stood up for peace.
In Northern Ireland, where car bombs and gun shots have torn human
tissue and muscle, as well as torn families and neighborhoods, torn hearts
and hopes, people reach out to each other in the first, yee, fragile, yes,
tentative, but also fervent handshakes of peace - because Americans
insisted on peace.
In the Middle East, where blood enemies have sworn to fight to the death,
to extinction, today's leaders discuss sharing knowledge and resources,
such as water, to make the desert grow green with fruit and agricultural
bounty - because Americans know that peace was worth working toward.
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One of the areas we can all be thankful for Is the progress we as a people
are making in the fight against crime. Crime in most major categories is
down. And while we cannot relax our guard from assuring that most
fundamental attribute of a free society - basic personal safety • we know a
lot more about what works to reduce crime. In community after
community across America people are breathing sighs of relief, venturing
out of their homes with confidence, engaging with their neighbors,
because we have more police on the streets and more effective methods,
such as community policing. In the America we are fighting for, children
should be able to play in their front yards without fear of being caught in
the cross-fire of gang shooters. Senior citizens should be able to walk to
the comer store without having to cany their pocketbooks past drug
addicts and sellers. Women should be able to drive a car alone at night
without fear of being run off the road and assaulted. We will not rest until
every schoolyard, every neighborhood, every office building, every mall is
free of crime and free of fear. We are taking America back.
�UNITED STATES DEPARTMENT OF LABOR
OFFICE OF THE SECRETARY
Jan.
17,
1996
Note to Michael Waldman
From:
RBR
In case you missed t h i s .
WORKING FOR AMERICA'S W O R K F O R C E
�Meeting America's challenges:
We:
Challenge every community to offer Americans the freedom of safe streets with
tougher sentences, tighter gun control laws and crime prevention measures
Challenge the insurance industry to provide the security of health insurance that
is affordable to every American and that can be taken from job to job
Challenge every school in America to provide the kind of opportunity we need to
produce a new generation of students with the most modern skills and with
teachers who enforce the highest standards of education
Challenge every company both large and small in America to do its duty to its
employees by providing for their training and retirement in a comprehensive way
Challenge the media to help protect our children by providing more educational
TV, and less graphic sex and violence on the screen
Challenge nations throughout the world to join Ireland, Haiti and the Mid-east in
realizing that even age-old struggles can be settled to create peace, not war
Challenge Washington to learn right from wrong by passing tough political reform
legislation to take money out of politics and end lobbying as we know it
Challenge every able-bodied person on welfare today to be trained and find a job
Challenge every father to take responsibility for his children
Challenge every citizen to participate in his community by volunteering his or her
time to work together and give something to their community - adopting a child,
taking care of a parent or offering to work in our poorest areas.
We would then offer programs that would help each to meet those challenges in
the redefined role of government.
^
�L: Mark R o s e n m a n
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To. Doris M«(sui
D a t o : 1 / i a / 9 G T i m e . 15:39:34
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BACKGROUND
Beyond government, the private non-profit sector (which includes organized philanthropy such as
independent, community and corporate foundations) is a critical mechanism for attending to the public
good.
• It provides services, promotes social and economic development, protects the
environment, and advocates for those people and causes mos: in need o' a voice.
• It is the medium through which government best can help people help themselves.
• It is an important vehicie for diversity and inclusion, for democratic participation in civil
society and in community renewal.
• It is a valuable resource foi developing and maintaining open, substantive and
continuing communication betweer people and their government.
There are over a million non-profit organizations with about 600,000 of them involved ir direct service
delivery, community development, environmental and international issues, and public interest work and
advocacy.
• In 1990, the sector spent about S390 billion, equivalent to approximate^ 7% of the
GNP.
• Government contract and grant revenues accojnt 'or about 30% of the funding ot
non-profit organizations, with individual contributions, philanthropic grants, dues fees
and earned income constKuting '.he remainder.
• Over half of adult Americans do volunteer work, totaling more than 20 billion hours of
service annually, valued at more than $170 billion dollars in donated time.
The federal government has depended on the non-profit sector as an active partner in every area of
social need, but has not attended adequately to its development or worked to realize the full potential for
effective collaboration.
• Reductions in the federal role in domestic affairs have increased public need and
shifted more and more burden to the non-profit sector while government has curtailed its
financial support of these organizations.
• There has been no concomitant effort to strengthen and rationalize the partnership
between govemment and the sector. In fact, the reverse has been true under prior
administrations.
x
D
MENTION A POINTMENT OF NONPROFIT LIAISON NETWORK
Pago 2 of 3
�Rosonman
To. Doris Matsui
Date: 1/18/90 T i m o : 15:40.29
Pag& 3 of 3
EVERYONE MUST DO THEIR PART
Nonprolit organizations - charities -- provide a valuable mechanism through which people can work
together and in partnership with their government.
Nonprofits offer us the ways to associate with one another, sc important to restoring our communities.
Nonprofits provide the services people need to help themselves and to help one another.
Nonprofits help people to speak for themselves about issues that concern them; and they help give vcice
to the voiceless.
Nonprofits help governmeni tc understand what people think and feel: they contribute important
information to the policy process.
�(21003/004
01/19/96
10:12
©202
219 9,216
_ . ..QASP
ANOTHER YEAR OLDER AND DEEPER IN DEBT:
CONGRESS' REFUSAL TO INCREASE THE
MINIMUM WAGE HURTS WORKING FAMILIES
• On February 3, 1995, President Clinton proposed increasing the minimum
wage by 90 cents in two increments to assure our society's lowest paid workers
a living wage. The President's proposal would benefit an estimated 11 million
workers .
• Saturday, February 3, 1996 will mark the first anniversary of the President's
proposal and a full year in which the congressional leadership has adamantly
refused to give America's low-wage working families a raise.
• Congress' failure to raise the minimum wage by 45 cents in July 1995, the
first of two equal raises proposed by President Clinton, has already deprived
minimum wage workers of $525. i f Congress had passed the President's
proposal, minimum wage families could have :
V bought food for their home for 3 months; or
V paid for 10 months of health insurance; or
V paid 10 months of electricity bills; or
V bought a 21-month supply of prescription drugs for
ailing parents or sick children.
• I f Congress continues its stubborn refusal to pass the President's minimum
wage increase (the full 90 cents), minimum wage families will lose an
additional $1,425 between now and next February. This additional money
would allow a minimum wage family to:
v^buy food for their heme for nine months; or
V pay for complete health care for a year; or
V pay utility bills for almost a year; or
V pay one year's tuition at many community colleges.
�il004/004
0 1 / 1 9
/96
10:13
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• The public overwhelmingly supports the President's call for a living wage for
minimum wage workers. A national poll conducted in January 1995 for the
Los Angeles Times found that 72% of Americans supported an increase in the
wage, confirming a December 1994 Wall Street Journal/NBC News survey that
found raising the minimum wage is favored by 75%.
• Because Congress has refused to adopt the President's proposal, the
minimum wage is rapidly approaching its lowest real value in 40 years. The
first half of the President's 90 cent proposal would simply restore the
minimum wage to its value in 1989, when Congress voted in an overwhelming
and bi-partisan manner (382-37 ir the House, 89-8 in the Senate) to increase
the minimum wage, also by 90 cents.
• During the 1989 debate over the minimum wage. Majority Leader Bob Dole
harshly criticized those who would call for a cut in the capital gains tax but
oppose an increase in the minimum wage: "I think that many of us feel that
this is not an issue where we ought to be standing and holding up anybody's
getting a 30-to-40 cents an hour pay increase, at the same time that we're
talking about capital gains. I never thought the Republican Party should
stand for squeezing every last nickel from the minimum wage."
• Increasing the minimum wage helps working families. Nearly two thirds of
minimum-wage workers are adults (64%). The average minimum wage worker
brings home half of his or her family's weeldy earnings.
• The President's proposed increase in the minimum wage would increase
wages without costing jobs. Over a dozen empirical studies have found that
moderate increases in the minimum wage do not have significant effects on
employment. Nobel laureate Robert Solow has stated "...the fact that the
evidence [of job loss] is weak suggests that the impact on jobs is small."
�01/19/96
12:41
© 9 202 6220081
DEPSEC TREAS
FACSIMILE COVER SHEET
OFFICE OF THE DEPUTY SECRETARY
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE, NW
WASHINGTON, D.C. 20220
DATE:
January 19, 1996
NUMBER OF PAGES TO FOLLOW: 2
TO:
Mr. Don Baer & Mr. Bruce Reed
ADDRESSEE'S FAX NUMBER: 456-5557;456-5709
ADDRESSEE'S CONFIRMATION NUMBER: 4S6-6S1S; 456-2777
FROM:
Lawrence Summers
SENDER' FAX NUMBER: 202/622-0081
SENDER'S CONFIRMATION NUMBER: 202/622-1080
COMMENTS/SPECIAL INSTRUCTIONS:
0001
�01/19/96
12:42 ©9 202 6220081
DEPSEC TREAS
T H E D E P U T Y S E C R E T A R Y OF T H E T R E A S U R Y
WASHINGTON
January 19, 1996
MEMORANDUM FOR
DON BAER
BRUCE REED
PROM:
DEPUTY SECRETARY LAURENCE flUMMER^^^^^
SUBJECT:
state of the Union/Pension Savings
This summarizes what I said a t our meeting. I t h i n k i t i s important
t h a t we h i g h l i g h t t h e retirement income s e c u r i t y issue and focus on
preserving our accomplishments
— i n ensuring income s e c u r i t y f o r the
e l d e r l y and assuring i t i s there f o r the next generation o f t h e aged.
The key p o i n t s we should make are t h e f o l l o w i n g :
Seniors Had the highest poverty rate of any group i n i9 60, today they
have the lowest.
(1)
we must ensure inoome security for our seniors.
•
Retirement i s a concern f o r more and more Americans as t h e
baby boom generation crosses 50
I am 50...
•
I t i s our sacred t r u s t t o ensure t h a t t h e p r o t e c t i o n s o f
Social Security and Medicare remain i n t a c t f o r t h e next
generation. I w i l l not t o l e r a t e attack...
(2) We must make sure that the private pension svstem works for
people.
•
We must p r o t e c t t h e p r i v a t e pension promises on which
American workers depend.
The Retirement Protection Act of 1994, which I proposed,
p r o t e c t s over 30 m i l l i o n employees covered by defined
b e n e f i t plans, by improving t h e funding of pension
promises. The amount of underfunding o f pension plans
has decreased by more than 50 percent since 1993.
I've stood up against Republican l e g i s l a t i o n t h a t would
permit r a i d i n g of pension assets f o r non-pension
purposes.
(3)
We must help people prepare and save for their future.
•
More than h a l f of American p r i v a t e sector workers are not
covered by a pension plan,
•
A married couple, aged 65, i s l i k e l y t o f i n d t h a t a t l e a s t
one spouse l i v e s u n t i l age 87.
•
We must make i t easier f o r people t o save.
002
®
�01/19/96
12:42
® 9 202 6220081
DEPSEC TREAS
lg]003_
I have proposed a new savings plan for small business
(the National Employees Savings Trust/NEST) that has no
red tape, no complicated forms or calculations, but
assures pension coverage for low- and middle-wage
workers, not only the high paid.
I have proposed significant expansion of individual
retirement accounts (IRAs), to allow millions of
additional Americans to make tax-deductible
contributions to save for their retirement. My proposal
would increase income limits and expand f l e x i b i l i t y of
IRAs by permitting withdrawals without penalty i n
special circumstances.
�' 4 ^ \
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
5SE£/
WASHINGTON, D.C. 20460
OFFICE OF •
THgAttJlNlSTRATOfl
TO:
FROM:
COMMENTS:
Number of P&ges to followt
'
Datej
Timer
Transmission
Verification
Number:
Numberi
(202) 260-3684
(202f 260-7960 or
260-982B
Office of the
Admlnisttator
401 M Street,
S.W.
Room 1204 West Tower
Mail Code:
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�January 18,1995
MEMORANDUM FOR MICHAEL WALDMAN AND BRUCE REED
FROM:
LORETTA UCELLI, EPA
S UBJECT:
SUGGESTED EXAMPLES FOR THE STATE OF THE UNION
f
EPA's Brownfields Program - Urban Revitalization
In the first three months of the Clinton Administration, the President pledged that his
Administration would revitalize America's cities by cleaning up abandoned pieces of contaminated
land that are a blight to our communities, a threat to our health, and an obstacle to economic
growth.
The EPA Brownfields program is an Administration initiative that awards grants to cities
lo clean up and redevelop contaminated land - creating jobs and returning the land to productive
community use. This common sense, cost-effective program captures the best of what we can do
together to revitalize the cities of this country.
Cleveland example Like many hard working Americans, Bill Robinson had a difficult
time when his company moved out of town. A forth-year-old man with three children
depending on him, Mr. Robinson was out of work in Cleveland for eight months,
Then the City of Cleveland received a grant from EPA to clean up contaminated land in
the old industrial neighborhoods. On a long-abandoned piece of property, there now
stands a warehouse and trucking firm, a thriving business that has created a hundred new
jobs. Bill Robinson has one of those new jobs.
Clean Air in Detroit
For 15 years the air in Detroit failed to meet federal public health standards. Residents
were breathing unhealthy air. To solve this problem, EPA worked with the City of Detroit,
county and state officials and industry on common sense measures to protect public health and
clean up the air. Literally thousands of people made changes in what they did every day to help
this community breathe clean air. And what they did worked. Last year, we were able to list
Detroit in compliance with federal public health standards for air. That's good for the health of
the people of this city and it's good for Detroit's economy. Just like Detroit, Americans in more
than 50 cities across the country are now breathing cleaner air that meets health standards — and
all 55 have met that goal in the first three years of the Clinton Administration, Millions more
Americans are breathing clean air. And our most vulnerable citizens children, the sick, and the
elderly will be protected.
30tfc
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�January 18, 1996
MEMORANDUM TO MICHAEL WALDMAN
FROM:
DAN COLLINS
RE:
CRIME RESEARCH
KIDS KILLING KIDS
Bov Killed for Doing the Right Thine. Chicago. October 1994
•
Two boys, ages 10 and 11, allegedly dropped 5 year-old Eric Morse 14 stories
to his death. The boys were reportedly angry that Eric and his 8 year-old
brother. Derrick, would not steal candy for them. [Source: Chicago Tribune,
October 16, 1994]
•
Derrick later testified that he and his brother were lured to the 14th floor on the
promise to see a clubhouse. Once in the apartment, one of the boys grabbed
Eric and dangled him out the window. One of the other boys fought Derrick's
attempt to save his brother. Derrick also testified he watched as one of the
boys let go of Eric. [Source: Chicago Tribune, October 19, 1995]
Eric suffered massive head injuries as a result of the fall and later died at the
hospital. [Source: Chicago Tribune, October, 15, 1994]
The boys were later found guilty of killing Eric. [Source: Chicago Tribune,
October 24, 1995]
11 Year-old Killed by fellow Gang Members. Chicago. August 1994
•
11 year-old Robert Sandifer was on the run after he allegedly fired a gun at a
group of boys he believed were rival gang members. One of the bullets killed
14 year-old Shavon Dean who was walking past the boys on her way home.
[Source: Chicago Tribune, December 7, 1994]
At the time, prosecutors believed the leaders of Sandifer's gang requested his
murder as they were "feeling heat" for Dean's death. Two of the gang
members found Sandifer, drove him to a pedestrian tunnel and shot him twice
in the head. [Source: Chicago Tribune, December 7, 1994]
�POLL: FEAR CAUSING TEENS TO CARRY WEAPONS
A poll of 2.000 teenagers bv Louis Harris & Associates found that:
1 in 8 youths reported carrying a weapon for protection, almost 2 in 5 from
high crime neighborhoods.
1 in 4 teenagers said they did not feel safe in their own neighborhoods, 1 in 2
in high crime neighborhoods.
Almost 1 in 3 students worried about being victims of drive-by shootings, more
than 2 in 5 black and Hispanic students expressed that fear.
Almost half the teenagers said they changed their daily routine because of
crime and violence.
More than 7 in 10 teens in high crime neighborhoods said gangs played a big
part of daily life in their neighborhoods.
2 in 3 said most neighborhood youngsters looked up to gang members.
�Heavy drug users consume a majority of the nation's illegal drug supply. Although hardcore
users account for only about 20% of all cocaine users, they consume about two-thirds of the
available cocaine. And hardcore drug use is linked to a disproportionate amount of crime and
violence. On any^given day,-more than.half the arrestees in our cities test positive-for drug use Treating these drug users can save us money and reduce crime. That's why the Crime Bill:
CRACKS DOWN ON HARDCORE DRUG USE
- $919.8 million for the Substance Abuse Performance Partnership, including a $60 million setaside for the heaviest drug users;
-- $150 million for Drug Courts and $40.2 million for treatment in prisons, so we can use courts,
jails and prisons to turn crime-committing addicts around.
SENDS A STRONG "NO USE" MESSAGE TO OUR KIDS
- $500 million for the Safe and Drug-Free Schools program - to give states the money to fund
drug prevention programs like DARE (Drug Abuse Resistance Education), train parents on the
warning signs of drug use, and pay for more police.
REDUCE DRUG-RELATED CRIME AND VIOLENCE
-- 100,000 more police in community policing to help break-up open-air drug markets to teaching
kids about the dangers of drugs.
- $9 million to expand the Drug Court program — which provides continuing judicial supervision
for non-violent offenders with substance abuse problems.
~ Tough federal drug enforcement - initiatives to reduce marijuana cultivation, increased
surveillance of suspected major drug traffickers, expanded border control drug enforcement,
increased public-private partnerships to crack down on money laundering.
CUT DRUGS OFF AT THE SOURCE
The President has implemented a 4-part strategy to reduce the flow of drugs from foreign
countries:
- Strengthening law enforcement and the judiciary in source countries
- Destroying drug cartels
- Working to interdict drugs at their source as well as en route to the U.S.
- Increasing international cooperation - Under the pressure of the President's power to
"decertify," countries are more keenly aware that, if they do not cooperate with the U.S. anti-drug
measures, they can be blocked from receiving international loans and most U.S. foreign aid.
Through U S -Columbian efforts, the Caii Cartel, responsible for 80% of the cocaine that reaches
the US is being dismantled In August 1995 alone, three of the five top members of the Cartel
were taken into custody.
�January 19, 1996
MEMORANDUM FOR THE VICE PRESIDENT
RON KLAIN
FROM:
SHERYLL CASHINGc/^J
JONATHAN W E I S S ^
RE:
EZ/EC "SUCCESS STORY" FOR STATE OF THE UNION
As you r e q u e s t e d , s e t f o r t h below i s an EZ/EC "success
s t o r y " f o r possible inclusion i n the President's State of t h e
Union address:
The p o w e r f u l l o n g - t e r m v i s i o n o f t h e EZ/EC I n i t i a t i v e i s
already bearing f r u i t .
Take t h e Empowerment Zone i n D e t r o i t ,
which i s made up o f 18 square m i l e s o f l a r g e l y abandoned
b u i l d i n g s and empty l o t s . Community r e s i d e n t s , l o c a l
governments, churches, u n i v e r s i t i e s , and a range o f p r i v a t e
b u s i n e s s e s and o t h e r community p a r t n e r s a r e now a l l b a n d i n g
t o g e t h e r t o h e l p r e v i t a l i z e t h e area. The immediate r e s u l t : A t
l e a s t 21 p r i v a t e developments have been announced i n t h e Zone,
i n c l u d i n g 10 i n d u s t r i a l and f i v e r e s i d e n t i a l p r o j e c t s . The Zone
has a t t r a c t e d $2 b i l l i o n i n l o c a l p r i v a t e and p u b l i c i n v e s t m e n t s ,
and has a l r e a d y c r e a t e d hundreds o f new j o b s . The c i t y o f
D e t r o i t now has one o f t h e f a s t e s t - g r o w i n g b u s i n e s s and h o u s i n g
markets i n t h e c o u n t r y .
Former D e t r o i t P i s t o n s b a s k e t b a l l p l a y e r V i n n i e Johnson i s
one o f t h e D e t r o i t e n t r e p r e n e u r s t a k i n g advantage o f t h e new
o p p o r t u n i t i e s and making a p o s i t i v e c o n t r i b u t i o n . A f t e r t h e Zone
was announced, V i n n i e l e d a group o f p a r t n e r s i n o p e n i n g a
m a n u f a c t u r i n g business i n t h e h e a r t o f t h e Zone c a l l e d P i s t o n
Packaging. He cleaned up and renovated p a r t o f an abandoned
General Motors p l a n t f o r h i s f a c i l i t y and now employs 34
w o r k e r s , many o f them Zone r e s i d e n t s . He w i l l be expanding h i s
b u s i n e s s s h o r t l y and expects t o h i r e an a d d i t i o n a l 2 50 w o r k e r s i n
t h e coming y e a r and a h a l f .
V i n n i e wants t o g i v e something back t o t h e community — and
he has. Many o f h i s employees were o u t o f work f o r months,
sometimes y e a r s , b e f o r e g e t t i n g a j o b . One o f them i s a woman
named Joann Crowder. Joann spent t h e l a s t e i g h t y e a r s unemployed
and r a i s i n g t h r e e c h i l d r e n on w e l f a r e . A Zone r e s i d e n t , l i v i n g
j u s t a c o u p l e b l o c k s from V i n n i e ' s business, she now l o o k s
f o r w a r d t o , f o r t h e f i r s t t i m e , buying her own home. Her whole
l i f e , she says, has t u r n e d around. She, and V i n n i e Johnson, a r e
p o w e r f u l e v i d e n c e o f t h e tremendous p o t e n t i a l — b o t h p e r s o n a l l y
and f o r t h e n a t i o n — f o r empowering our poor communities and
t h e i r r e s i d e n t s . I n s h o r t , t h e tremendous p o t e n t i a l f o r c h a n g i n g
people's l i v e s .
�' I ' U K \\ II I T I . H O U S K
W ASH i \ ( , i O N
January 19, 1996
NOTE TO:
EVELYN LIEBERMAN
DON BAER
MICHAEL WALDMAN
FROM:
KITTY HIGGINS
Help!!!
�^ 9 ^ 1 6 : 0 2
•&20Z 273 4877
VA OSEC
rARTNRT_AFFAIRS
lgl002/OOJ
THE SECRETARY OF VETERANS AFFAIRS
WASHINGTON
DC 1 7 19
E
96
MEMORANDUM TO: Kitty Higgins, Secretary to the
Cabinet
FROM: Harold Gracey, Chief of Staff'
SUBJECT: State of the Union
Just a note to reinforce that we believe it is imperative
that the President mention veterans in the speech. No
President has built such a positive record on veterans'
issues; none has provided the kind of access that President
Clinton has provided.
Since veterans' programs have been acknowledged as
one of the President's priorities in discussions about the
budget, no opportunity, especially one as important as
the State of the Union, should pass without mentioning
veterans.
Thank you in advance for your help.
�01/05/95
11:42
HUD OFC OF THE SECRETARY •» 2024565557
N
0
.
1
4
O.S. DEPARTMENT O F HOUSIHO ANO URBAN DEVELOPMENT
O F R C E O F 7 H E SECRETARY
WASHINGTON. D.C. 20* 10-000J
FAX TRANSMISSION
DATE:
January 5*, 1996
NUMBER OF PAGES (induding cover sheet)
TO:
Bruce Reed
PHONE #:
FROM:
202/456-6515
COMMENT U N E *
Henry Cisneros
202 708-0417
attached excerpt i s taken from Washington.
The Indispensable Man w r i t t e n by James Thomas Flexner.
It" i s
President Washington's seventh State of the Union we discussed."
A p o s i t i v e , up beat message.
The phone number of thisfoxmachine is (202) 708-1993
5
p
0 0 1
�344
WASHINGTON: THE INDISPENSABLE MAN
duced lo offering the posl lo him, Pickering made Ihe President
plead before he condescendingly agreed.
Still accepting the second-rate, Washington bagged three southerners: his former aide and drinking companion, James McHenry,
as Secretary of War; Charles Lee, who practiced law near Mount
Vemon, as Attorney General; and Thomas Chase of Maryland for
the Supreme Court. This achieved, Washington felt he could appoint as Chief Justice a Massachusetts Federalist, Oliver
Ellsworth.
"The offices are once more filled." John Adams noted, "but
how differently Ihan when Jefferson, Hamilton, Jay, etc, were
here!"
With anticipations often sadistic, politically minded Americans
awaited Washington's Sevenlh Annual Address. How would the
President defend himself? How would he defend the Jay Treaty?
Would he attack Ihe independent mass meetings lhat had blasted
his policies as he had attacked the centrally organized Democratic
Societies? Would he express personal bitterness as he had in bis
second inaugural? There was tenseness in the Senate chamber
when Washington walked in on December 8, 1895. It soon
changed to amazement.
"Fellow citizens of the Senate and the House of Representatives," Washington began. "I trust I do not deceive myself when I
indulge the persuasion lhat I have never met you at any period
when more Ihan al the present the situation of our public affairs
has afforded just cause for mutual congratulation; and for inviting
you to join me in profound gratitude lo the Author of all good for
the numerous and extraordinary blessings we enjoy."
Then Washington began enumerating blessings: Wayne's victory plus the entente wilh England promised peace on the northwest
frontier; an accommodation was being reached with the Barbary
pirates who had molested American shipping; Pinckney reported
progress on a treaty wilh Spain. Washington then mentioned the
Jay Treaty-everyone was agog-but he merely said that applying
the best judgment I was able to form of the public interest" he
ad followed the advice of the Senate. "The result on the part of
is Britannic Majesty is unknown. When received, the subject
ill, without delay, be put before Congress." Washington's sumary was that "prudence and moderation on every side" could
tw extinguish all causes of discord "which have heretofore
lenaced our tranquillity."
Pro-French legislators, who insisted that the Jay Treaty was
Downhill U79S-1796I
345
anli-French, could hardly believe their ears as Washington moved
on from foreign affairs without mentioning France. But even in
their incredulity they realized thai the President had outflanked
them. The discussion having been of nations thai menaced American tranquillity, the omission could be taken as a recognition of
common interest.
Turning lo domestic affairs, Washingion made no mention of
his critics. He contrasted ihe peaceful and prosperous slate of tbe
United Stales with the desperation in Europe. "The molestations
of our trade" were overbalanced by Ihe benefits Ihe nalion derived from her neutral position. Population was growing; internal
improvements were rushing forward accompanied wilh lax burdens so light as to be scarcely felt. "Is it too much to say that our
oountry exhibits a spectacle of national happiness never before
surpassed if ever before equaled?" And should noi Americans
"unite our efforts to preserve, prolong, and improve our immense
advantages?"
The Republicans were so devoted to controversy thai their first
reaction was that Washingion had raised the while flag of surrender. Some, indeed, believed lhat this was a prelude to his resignation. Bui it quickly became clear that Washington (with an assist
from Hamilton who had helped him draft the speech) had made a
masler stroke. To Ihe simplistic argument lhal Ihe Jay Treaty was
anti-French, he had opposed an equally simplistic argument,
which was much closer to the experience of every cilizen. He had
cut as of old ihrough layers of controversy down to the basic, unassailable truth. The nation was slill free and, despite irritations on
the ocean and at Ihe conference tables, more prosperous Ihan it
had ever been. The nalion was a growing colossus whose security
rested not on which belligerent won Ihe European victory but on
the continuation of conditions thai would allow it lo achieve unhampered iu malurity. If this were Ihe case-and every American
who looked around him dispassionately saw lhat il was indeed the
case-why all this howling of faction, all these accusations that the
govemment was selling out the country? Why all this hysteria
aboul the details of a treaty lhat was serving the major end of allowing the nation to grow undisturbed?
The pendulum, which had swung so far against Washingion,
was swinging back. But, as Washingion wrole, "the restless mind
of man cannot be al peace." A grave constitutional crisis loomed.
�J46
WASHINGTON: THE INDISPENSABLE MAN
According to Ihe Constitution, only the Senate had lo acquiesce
in a treaty. Senators were then elected indirectly, by state legislatures. There was a Federalist majority. The House was elected
directly by the people and was considered the "popular," the
democratic branch of the government. It had a Republican majority which was still infuriated by the Jay Treaty, and also resented
the domination which exclusive legislative concern with foreign
affairs gave the Senate. There was the further fact that in his commercial treaty with Great Britain Jay had regulated trade mailers
which had formerly been subject to action by the entire Congress.
This could be interpreted as usurpation by the Senate and the executive of matters that correctly belonged to "the people" gathered in the House..
The House had a weapon which ils Republican majority intended to use the instant the Jay Treaty came back, duly signed,
from England. Money bills originated in the House. Various appropriations would be necessary to implement the treaty. The
House intended to reopen the whole question of the treaty and refuse lo vote the money if, as seemed most probable, they did not
approve itThis issue was hanging over Washington's head when he celebrated his «ixty-fifth birthday. The House showed its leeth by voting, fifty lo thirty-eight, not lo recess for half an hour so thai the
members could call on the President. Nonetheless, bells rang, cannon boomed, and the Presidential Mansion was besieged by visitors. Towards nightfall, Washington received the best possible
birthday present: a copy of (he treaty Pinckney had negotiated
with Spain.
Having withdrawn from her alliance with England against
France, Spain was afraid that the Jay Treaty would be followed by
an alliance between England and the United States that would
overwhelm her North American possessions. Conciliation seemed
called for. Spain had opened the Mississippi to American shipping
and cleared away in a satisfactory manner all the other controversies that had for so long embroiled (he southwest frontier.
No one, of coune, could object to this treaty or to another in
which, by not exorbitant sums, the navyless UnitedStates bought
off the Barbary pirates.
Late in Febniary, a certified copy of the ratified Jay Treaty appeared. Tbe leaders of the House expected Washington to lake no
action until they had been consulted, but on leap-year day, 1796,
Washington declared I treaty I
of the land. The House in-
�IS THE AMERICAN WORKER GETTING
THE ASSAULT ON THE
MIDDLE CLASS
�BUSINESS & T C N L G
E H OO Y
W RES TK
O KR A E
ITO T E C I
NH H
N
A changing economy is leaving many of them behind:
the social and political fallout for '96 and beyond
K
en Bishop. ;i senior records clerk
for A T & T in Morrislown, NJ..
m;iy hold lhe key lo the 1996
presidential election. He has endured
two rounds of layoffs, comnuites 110
miles a day. works two jobs —and yet his
family income remains stuck at $40,000 a
year, right where it was 10 vears ago. But
10 years ago he owned his own home.
Now he rents, his wile works — two jobs at
times —and he still owes money. So when
A T & T said it would lay off another
40.000 workers, the 48-yJar-old Bishop
snapped: "You slop and look at it and
say. 'When is all this going lo end?'
Many voters are asking the same
t|ucsiion. Although corporate profits
have fattened and the stock market has
PERCENT WHO SAY THE
ECONOMY IS:
Expanding
\
?.:•'.%
Stagnating'
T.Y%
In a recession
L>0%
In a depression
U%
WHO HAS GAINED THE
MOST ECONOMICALLY IN THE
LAST FIVE YEARS?
The upper class
70%
The middle class
(j%
The working class
The lower class
0%
U.S. News poll of 1.000 rcfjstcrcd voters conducted Oy Cclmda
Lake ol Lake Rcsctircn ond Ed Gocas of the Tarrancc Group January 4-6.1996. Matyn of error: Plus or minus 3.1 percent.
4 'I
in ust--" 0': Hv JU:.!. CHUJ IOR L'Srwvvf
.
soared, the average American family has
not benefited from the boom. The gap
between rich and poor is growing steadily, and people in the middle, like the
Bishops, arc going nowhere. Median
household income has been flat for 20
years, and workers' real wceklv wages
have dropped $23 or almost 5 percent
since 1979. In a new U.S. News poll, only
22 percent say the
economy is expanding:
67 percent say it is
stagnating or declining. "No matter what
you do." says Bishop,
"you can'l
get out of
The hole."
There
are many
economic
reasons for the
growing gap between the rich and
everyone else (story, Page 47). But the
political implications
are clear: Asked to name
the biggest problem facing the nation,
47 percent cited pocketbook issues, a
jump of 21 points in only eight months.
The message is strong and simple: "It's
.slill the economy, stupid."
The message cuts across party lines.
Republican pollster Ed Goeas, who
conducted the U.S. News survey with
Democrat Cclinda Lake, says the wage
issue "has the potential to blow through
the roof." Democratic consultant Stanley Greenberg told a recent forum on
SHARE •
OF REAL
GROWTH
WEALTH
(1983-1989)
BOTTOM
:.;r: 80 PERCENT
�m
:
•• m IMS
REST OF TOP
20 PERCENT
1
its?
'.v*?^^.
/
U.S.NEws & WOKI.1) KKPoifr, JANUARY at. >W
<6
niLiinic
inLquahly:
1 hcic is no mure cenlial
suojcci in pomics lodav, and
no party will he successful without
addressing i l successfully." John
Sweeney, the new prcsidem of the
AFL-CIO, vows "lo put the issue of
wages at the center of political debate."
The implications of wage stagnation
go far beyond elections. Labor Secretary
Robert Reich says il is fomenting a
"politics of resentment," with disgruntled workers supporting curbs on immigration, affirmative action, welfare and
trade. They feel betrayed, he adds, because companies are not living up to a
"tacit social contract" to share the
wealth. Instead, executive pay and stock
prices arc soaring but wages are slumping and jobs are disappearing.
Money has not displaced moral decay
as a political issue. Asked lo choose lhe
bigger problem —declining familv- values or making ends meet — 49 perceni
picked family values and 31 perceni
named lhe family budgei. But lhe two
issues are closely connecled. savs Lake:
"For many voters, it is economic stress
that has fueled a decline, in values. Patents must spend so much lime lighling
for economic survival that Ihey cannoi
spend the time necessary lo leach children values and to protect them Irom
the chaos around them."
Spreading the blame. With the election
10 months away, the political landscape
is still volatile. Voters gloomy about the
economy voted 2 to 1 for Democrats in
1992 and then backed Republicans by
the same ratio in 1994. Now, says Goeas,
these voters "do not know where lo
turn." An increasing number don't think
kindly of either major party. Asked
whether Democrats or Republicans are
most to blame "for the problems we are
facing," 3 out of 5 voters said "both."
And while 49 percent said governmeni
can do "a lot" lo improve lhe nation's
economy, 69 percent or more rated bolh
President Clinton and the Republicans
poor or fair on four important economic
tasks: creating more jobs, promoting
better-paying jobs, reducing the deficit
and dealing with taxes.
This disillusionment has been compounded by the endless wrangling over
the federal budget. "It looks like the
politicians arc fundamentally out of
touch," says Lake. "They're worrying
aboul keeping the Washingion Monument open while A T & T is laying off
thousands of workers."
But political leaders duck lhe wage
issue in part because they have no solutions. Democrats talk aboul raising lhe
minimum wage, spending more on education and job training, strengthening
unions and making corporations more
responsible. Republicans say lower taxes
will increase family income while lower
deficits and fewer regulations will free
capital, spur investment and create jobs.
Factions in both parties advocate more
protectionist trade laws. But as Andy Kohut, head of the Pew Research Center,
puts it: "This is not a quick-fix problem."
Still, the problem poses opportuniiics
and dangers for bolh parlies. James Carville, who advised Clinton to eoncenlrale
on the economy in 1992, says the combination of high profits and low wages is
fertile ground for a populist Democratic
message: "This is not the time to be the
gun-control party or the abortion party.
It's time to be the paycheck party."
But that won't be easy. The activist
Republicans in Congress will share some
responsibility for the current economic
�• B SN S & TC N L G
U I E S E H OO Y
disiempei. but the president ultimately
has lo run on his record, and thai raises
(wo questions. Mow can he identify with
the problems of working families without
admitting that he has failed to make their
lives better'.' A n d how can he promise
improvements without resorting to traditional Democratic themes of class warfare? " W c won't be talking about soaking the rich or redistributing income,
because everyone wants to be rich someday," says one W h i t e House adviser.
The missing link. Voters, however, say
cutting taxes and balancing the budget
would help their families more than
anything else, and they have a point: A
credible balanced-budget deal w o u l d
. .r&duce...interest rates oiv-homc mortgages and consumer credit. Lower taxes
and a balanced budgei arc G O P issues.
But Goeas says party spokesmen such
as House Speaker Newt Gingrich aren't
delivering that message very well.
Republicans are still having trouble
convincing Americans that balancing the
budget in Washingion will better the
lives of real people beyond the bcltway.
" W e have to (.haw the link on a much
more personal basis, family by family,"
says Linda D i V a l l . a Republican pollster
advising Sen. Phil G r a m m , a candidate
for the G O P presidential nomination.
Adds Bill M c l n t u r f f , who does surveys
for Sen. Bob Dole, the Republican frontrunner: " W e have to say to people, 'Hey,
we hear you, we share your fears and we
know they're driving you crazy.' "
So far. however, neither Republicans
nor Democrats have convinced A m e r i cans who arc working harder just to stay
even that they understand their plight.
K e n n e t h S t r o u d o f Park C i t y . I I I . ,
worked at a printing company in north
Chicago lor I'.' vears. eventually earning
$13 an hour. " T h a i was fantastic," recalls Stroud, who earned a high school
equivalency diploma in lhe A r m y . "1 did
a great j o b keeping up with the bills."
, But the. company closed in 1988, and,
like many industrial workers Stroud
found himself in a shrinking market. He
put out 100 applications and got a job at
a tool company. But it closed after three
years, and Stroud went on welfare. " I
had to keep something in my daughter's
stomach." he says. Now he earns $10 an
hour at a company making business
forms and moonlights al a bowling alley.
His workweek averages 64 hours, down
from about 80 hours last year, and
Stroud is so strapped that he had to use
some of what he had saved for Christmas to fix a toilet in his mobile home.
" I see factory jobs leaving the country
because of N A F T A , " says Stroud, who
WHAT ARE THE MOST IMPORTANT
PROBLEMS FACING THE COUNTRY
TODAY?
The budget (deficit/govt. spending) 14%
The economy
14 A
Crime
11'%
Jobs
K%
Taxes
HOW ARE NATIONAL LEADERS
DOING IN HANDLING THE
ECONOMY?
WHICH ISSUES ARE OF
GREATER CONCERN TO VOTERS?
Republicans
Democrats
Both equally
1
1/93
Pocketbook
Lifestyle
8/94
1^96
W/l
WV.
Wti
Ov;
Wil
WHAT CHANGES WOULD HELP
AVERAGE FAMILIES THE MOST?
A middle-class tax cut
" .Z^/l
A balanced federal budget
Controlling health care costs
Wil
supports Ross Perot because the Texan
opposed the agreement. " I think all
these other companies are getling a big
benefit from it. Now. how are we going
to benefit?" He hasn't got much use for
other national leaders: "They all say
they're going to cut taxes, and until I
see it, I don't believe it. Even Clinton
said we're going to get a tax break, and
what's happened? Nothing. If we've got
to shut the government down, then obviously nothing's happening."
Two years ago. Cynthia Pollard was
making $40,000 a year selling computers. She wore suits and heels to work,
lived in a tony Atlanta neighborhood
and ate out often. Then the company
closed its government division, and Pollard was laid off. Between jobs, without
health insurance, she totaled her car and
suffered a pinched nerve. Now she's a
waitress at Zac's, a restaurant in Decatur, earning half her former salary, tak-
Excellent/Good
President Clinton
Republicans
Fair/Poor'
26%
ZZ%
70^
74%
WHO IS MOST TO BLAME FOR THE
COUNTRY'S PROBLEMS?
1S%
I'JA
O'JA
WHAT SHOULD BE THE MAIN
GOAL OF THE PRESIDENT WE
ELECT IN 1996?
Strengthening the economy .
Providing moral leadership
Solving social problems like
drugs and crime
1
;•!;%•
'/.'/%
ing lhe bus to work, too exhausted from
14-liour days to think about going out.
Pollard says she usually votes Republican, but she's "not thrilled with any of
them. I can'l really relate lo what any of
them are saying anymore, and IVe got
too many problams of my own to-worry,
much about it." Pollard rarely has time to
read a newspaper or watch the news.
" T h e only news that's important to me
now is the weather. I find out every m o r n ing whether I can walk lo work or not. I
don't have patience for the rest of i t . "
Countless Americans are like Pollard—exhausted, anxious, angry. Any
party that wants their voles had better
start understanding that working hard
and going nowhere is threatening the
American dream.
•
BY STKVEN V. ROBERTS WHH IWKIAN KRIUJMAN
JlLLjOKDAN SlELltK IN ATLANTA DKI'.KA A. SCIIWAKTZ IN
ClMCAI.O ANhJnNATIlAN SAH-KS [N N'KW YO!<K
[J.S.Ni;\V'S i WOKI.II kHI'Ok'T. lANUAKY
]"%
�B SN S & T C N L G
U I E S E H OO Y
W T R O D C NE T
NE F I O T N
I
S
With wages frozen, American workers find themselves out in the cold
M
ichael Souza was a winner in
the American industrial economy. A f t e r nearly two decades
of factory work, he was making $20 an
hour as a tool-and-die maker for Northrop Corp. W i t h that wage, Souza
learned to enjoy the entitlements of the
great American middle class: a three-7^
bedroom home with a Jacuzzi in the Los
Angeles suburb of Bellflower and a minivan. But in the nine months since Northrop laid off the 40-year-old Californian, Souza has spent much of his time
at the Long Beach Career Transitions
Center learning that in the new A m e r i can economy, people like him aren't
winning anymore. Good jobs that pay as
well as the one he lost are in short sup-
Ratio of average CEO's salary to
average American worker's
73-'75
'S^M
WL->9*.
Note: Rclers to CEOs of 10 lareo companies.
USN&WR -Basic data: Gracf Ciystal. The Crystal Report
ply. Employers are offering $6 or $7 an
hour for the work that is available. Now,
Souza's unemployment insurance ha.s
.yjji.out, and if he doesn't start coming
up with $1,400 a month for his mortgage"
he will lose his home. So he may have no
choice but to swallow such a drastic pay
cut. " I t ' s hard to start all over at 40," he
laments. " I t isn't like I can just move
back in with M o m and D a d . "
Not everyone at Souza's former company is feeling the pinch. The earnings of
Kent Kresa, chairman and C E O of Northrop Grumman Corp., rose to $1.6 million in 1994, up from $1.1 million the year
before. Souza and Kresa sit on opposite
sides of the growing chasm of income
inequality in America. Fully three fifths
of all households in 1994 did not even
keep up with inflation relative to their
U.S.NEWS & WOKI.I) Rl-fOKT.jANUAKY Ti. WWi
T I MN D W M N F C U I G . After 16 years at Kmart subsidiary
RM I G O N A U A T R
N
Huck Fixture in Quincy, III., Bob Ruff, 42, was laid off when the maker of Kmart's
shelving and checkout counters was closed by its corporate parent.
-17
�W A ' B HN
HT EID
S
W G I E U LT
AE N Q AIY
Indexed productivity and
compensation (1982 equals 100)
Productivity
— Compensation
1950 '55 '60 65>'70 '75 '80 '85 '90 1995
Total U.S. trade a s a share of
gross domestic product
1973 counterparts, while the top 5 perceni were awarded a 556.000 pay raiseeven alter adjusting I'or inflation —to
$183,000. "It gives lie to the idea thai a
rising lide lifts all boats." notes Stanford
University economist Paul Krugman.
Tliis tide, it seems, raises only the yachts.
Big change. At the heart of the rise in
inequahly is an unprecedented revolution in the workplace, one of the great
work force upheavals in this century —
and unquestionably a painful one. Before the world wars, farmers were ihe
largest single occupational group in
America, accounting for about 50 percent of the population. Domestic servants were the second biggest group in
the work force, and their number grew
steadily until the First World War. By
-the 1950s, these occupations had shrunk
dramatically, and industrial workers
made up the largest category in the work
force. This transformation was relatively
painless because factory jobs w ere usually a step up in pay and working conditions for farmers and servants, who had
the skills to take on the new positions.
Today, productive farmers make up no
more Ihan 2 percent of the work force,
domcslic servants arc scarce and the
number of industrial workers has declined to less than one fifth of the labor
force, half the proportion of just a few
:ii 4 a < ^ a
f
SI •
decades ago. In their place has arisen
what management expert Peter Drucker
i Pl H i Kl
has termed "knowledge workers. "
1960 '65 '70 '75 '80 '85 '90 1994
Drucker predicts that by the year 2000 al
least one third of the work force will fit in
this category. Just as before, the new jobs
offer economic improvement. But unlike
Change in average earnings by ,
the previous transformation, the new poeducation level (1979-1992):; •••
sitions require sophisticated skills, creativity and a command of cutiing-cdge
.•• MN . O E ;
E W MN
lechnology lhat the production line nevDidn't finish high school ,. -23%
,,-7% . j .
ei demanded. "Those who are unable lo
High school graduate
-17%
1% '
make the leap are condemned to declinSome college
i -7% j < 8%, ^ ing fortunes while knowledge workeis
College graduate
5
% '19%
lake on a growing share of income.
^--1-
?oi)/
-p-l 1-| |
• U.Si corporate outlays
for high-tech equipment
T
5,100
s^iT
l - ^ " — •
S100 bil.
'35
2000
— (est.) —
1
U.SMIVH - U.isic d;iln: Moftvxi
St'inluv A Co.: U.S. Dopl. ol Lntjor;
Merrill'Lyi Kh
48
1
Richard Landman, a former retail
salesman in Chicago, understands how
difficult it is to upgrade careers. Aflcr
leaving his sales position, Landman realized that he knew several people who
were looking for employment in the computer industry. Working from his bedroom, he started a job-placemem business and began making calls to secure
high-tech posts for these individuals.
Landman sweated through several lean
months before receiving his first commission. The checks are now coming in fairly
regularly, but it will take a number of
months before Landman's income returns to what it was during his reiail days.
In addition to the shift in skills needed for the new knowledge-based work
force, the income gap has widened be-
cause surging global trade has created
an intensely competitive business environmeni. Fduealion also plays a kev
role in deiermining income growth.
Since 1979. for example, the only men
who have made gams in weeklv earnings as a group are college graduates.
Legions of ordinary Americans, left
behind by the knowledge revolution,
have not even made-up-the around thev.
losl in lhe 1990-91 recession. In 1994.
only the richest fifth had recovered their
posi-1989 losses. In the 12 months ended
Sept. 30. 1995. total compensationwhich includes wages and benefits —
grew at the slowest rale recorded since
19X1. despite low unemployment, record
corporate profits and rising productivity.
Rose Pakis of Chicago, who makes less
than $15,000 a year working long hours
in both a convenience store and a tavern, has a simple explanation for the
problem. "Wages don't go up." remarks
lhe 50-ycai-old Pakis, "but prices do."
The poor and the rich make up a grow in» share of U.S. families today. While
i.S.NKV.'S.V- WoKIJi KKI'OkT.jANl'AKY T>. I ! * , -
�KEVIN IIQHAN fuU IJ^i&V\f
savings. While the wealthy have
been running up huge gains in the
stock m a r k e t , m i d d l e - i n c o m e
Americans have been running up
credit-card debt to compensate for
stagnating wages. Americans may
still picture Britain as the epitome
o f the class-based society, but
wealth is far more concentrated
among the upper crust in the United States today than it is in the
United Kingdom.
The spreading gap between rich
and poor has reached the point
where it is alarming leaders in the
corporate world as well as in politics. "Even those of us in business
can see that this can't be the right
answer for this country, either socially or economically",""says Steven
Rattner, a managing director at the
investment bank Lazard Frcres.
Stephen Roach, chief economist
with Morgan Stanley, frets that the
economic disparities will culminate
in a "worker backlash."
TRYING TO MAKE ENDS MEET. Rose Pakis of Chicago, 50, makes less than
$15,000 a year working behind the counter at the White Hen Pantry convenience
store and at the Dram Shop tavern across the street, where she tends tables.
there were sharp increases in the percent of child-rearing families struggling
on less than $10,000 a year as well as the
percent enjoying more than $70,000 in
the two-decades after 1969, most i n come groups between those two extremes have shrunk. The number of
those m a k i n g between $20,000 and
$40,000 in 1989 dollars fell from nearly
half of all families with children to
around a third. Economic polarization
in the United States has reached levels
not seen since the Great Gatsby era of
the late 1920s. A new report by the Organization for Economic Cooperation
and Development shows that America
has the most unequal distribution of income among the advanced industrialized nations.
Wealth. The picture is even more
stark when it comes to wealth — marketU.S NEWS & WORLD KKIOKT. JANUARY 22. HMI,
able assets such as stocks, real estate
and savings accounts —as opposed to
annual income. According to New York
University economics professor Edward
Wolff, Ihe share of total wealth held by
the richest 1 percent of families nearly
doubled between 1979 and 1992. Today,
a full 42 percent of all marketable assets
rest in the hands of a select group that
holds a minimum of $2.3 million per
family. Meanwhile, the median family,
with wealth of about $52,000, inched up
by less than 10 percent between 1979 and
1992. Middle-income Americans have
most of their assets in their home and
their savings, while the rich keep a higher percentage of their wealth in financial
instruments such as stocks and bonds.
Housing prices haven't kept pace with
the torrid stock market, and the middle
class has virtually stopped accumulating
The worst fear is that economic
inequality is dividing the nation itself. In a December commencement address, Secretary of Labor
Robert Reich warned graduates
that the "secession of successful
A m e r i c a " into a world where its
inhabitants can live, work, play and
move about with minimal contact
with the less fortunate majority
"threatens our nation's prosperity
and stability." Reich added, " Y o u
won't want to live in a society sharply divided between winners and losers." Economist Krugman sees a
psychological toll on those who
measure their own achievements
against the progress of those winners. "What it takes today to regard
yourself as successful." explains
Krugman, "is increasingly out of reach."
In the economic realm, Rattner and
others worry that stagnating and declining real wages for the majority of Americans are crimping growth as consumers
are forced to restrict their spending
habits. That fear became reality for
many of the nation's retailers this past
Christmas as they tallied up one of their
worst Decembers in recent memory.
A c c o r d i n g to research by S a l o m o n
Brothers, 1995 ended with the weakest
retail sales growth the firm has measured in a decade. Middle-income consumers have been building up debt
loads for years on the assumption that
the next raise would help pay down
those o b l i g a t i o n s . N o w they have
stopped fooling themselves. Not surprisingly, stores catering to the wealthy
escaped the Christmas blues. A t Tiffa•9
1
�ny's. loi" instance, same-store
sales were up 13 percent compared with those of December
I9 M. Meanwhile, middle-market dcparimenl stores like
Maey's, which have struggled
for years, continue to lace difficulties. And now retail troubles
are spreading through the lowend discount market as Kmart.
Ames and other value-oriented
chains fight for survival.
How did wc come to this
great divide? How did the Ozzie-and-Harriet
years — in
which the poor, the middle class
and the rich all advanced at
more or less the same, brisk
rate —slip away? In addition to
the shift from a nation of factory
workers to a nation of knowledge workers, Massachusetts
Institute of Technology economist Frank Levy points to several key historical events that have
undermined wages. The first is
the 1973 oil-price increase by
the Organization of Petroleum
l-.xporting Countries, which
ushered in .1 period of high in- LAYOFFi . Since she was caught in a corporate downsizing at Thrifty Drug Stores in Los
' 5.
flation. Rising prices allowed
Angeles, Mimi Young, 68, says that all she has been offered after more than a year of
employers to give raises lhat appeared lo be growing but lhat looking are menial jobs at half the salary she earned during her 18-plus years at Thrifty.
aclually were shrinking iu real
lerms. A l Ihe same time, rising inflation- tools into lhe United States, displacing million layoffs. Deregulation and techary expectations led to unusually high many American workers.
nological changes have heated up dointerest rales, which prevented capital
Squeeze. Since then, the competitive mestic competition in many industries.
investment, a catalyst lor rising producsqueeze has spread well beyond factory In banking, this has spurred a wave of
tivity and wages. Higher inleresl rales in
workers exposed to the pressures of in- mergers. The recent combination of
ilie late I97()s made lhe dollar stronger
ternational trade; today, virtually every Chemical Bank and Chase Manhattan,
ami imports cheaper. This introduced
sector of the American economy is in a for example, is expected 10 lead to the
U.S. manufacturing workers lo the harsh
vise because of commercial rivalries elimination of 12,000 out of 75.000 jobs.
reality of foreign competition. Much of
around lhe globe. The result is a huge Some 70,000 positions have been cut
this compclilion came from 'Germany
w ave of downsizings and unremitting job from the banking industry over the past
and Japan, as well as from olher highinsecurity thai persist more than four five years, but a studv bv Deloitte &
wage industrialized nations thai were
vears into lhe expansion. Last year, U.S. Touche predicts that 450.000 more
able to ship autos, steel and machine
corporations announced nearly a half- banking employees w ill lose their jobs in
1
G O N I C M I E U LT Changes in average;family.income / :,
R W G N O E N Q A I Y (1977-1992)
I
,;,
>
.
Share of net worth held by top
1 percent of households
Poorest fifth
Next poorest fifth
Middle fifth
Next richest fifth
Richest fifth
Percentage of families at various incomes
,
-17%
-7%
1%
6%
28%
Top 1%
91%
Changes in average household incomes
(in 1 9 9 4 dollars)
1
Q
Q
.
B
1969'
H I 1994
7
Less than $10,000 | i l S S j r % J
!
$25,000-$34,999 ^ S ^ ^ I A ! ^ '
1
^
i
$35,000-$49,999 B B H !
f!SSSSS!lS!ov,24"7%
$50 000-$74,999 j i i i B i P i l ^ g ^
|
$75,000-$99.999^|°%
j
r
Poorest fifth
Next poorest fifth
Middle fifth
Next richest fifth
Richest fifth
$7,981
$19.988
$32,661
$46,953
$83,271
$7,762
$19.224
$32.385
$50,395
$105,945
I
$10,000-$14,999 I j l B ! | & j
$15,000-$24,999 l l W ^ S S S i l o ^ '
R %
'
j
$100,000 and o v e r g ^ g ^
USN&WR—Basic data: Center on Budcet and Policy
Priorities: Congressional Budget Offlce; U.S. Department
of Commerce; Prof. Edward N. Wolff, New York University
US.NBVS A WOKI.II km>KT..lA.NTAKY:'2. V.KIf,
�W R E S W E : W A I C M A D J B I S C RT
O K R ' O S EK N O E N O N E U I Y
Real median family income
(in 1994 dollars)
$50,000
$38,782-
Real weekly earnings
in manufacturing
(in 1982 dollars)
$400—xr^r
Professions from which
the top 1 percent of
wage earners derive
their income
r Other
$337-!
$30,000
L $35,407
Management/
executive .
$40,890
•: 41%- U
Largest layoff announcements
(1993-1996)
:
C MA Y
O PN
IBM
Sears Roebuck
AT&T
Boeing
Digital Equipment
GTE
Nynex
AT&T
Delta Airlines
Lockheed Martin
DATE
July 1993
Jan. 1993
Jan. 1996
Feb. 1993
May 1994
Jan. 1994
Jan. 1994
Feb. 1994
April 1994
May 1995
USNSWR—Basic clala: U.S. Depi. ol Comr icrce; Congressional Budget Office; WEF
I. Frank and Philip J. Cook
the next decade. In telecommunications.
A T & T announced this month that it will
slice 40,000 positions over the next three
years; over 140,000 phone jobs have
been losl since 1993, and (ens of thousands more layoffs are expected in the
industry. A n d where downsizings are Ihe
norm, wages rise slowly, in pari because
workers are too fearful of losing theii
jobs to demand more money.
Fierce c o m p e t i t i o n also is forcing
radical restructuring in lhe retail industry. Last year, retailers across the country announced 43,000 layoffs.
Bob Ruff received one of those
p i n k slips. T h e 4 2 - y e a r - o l d
Ruff had spent 16 years working for Kmart subsidiary Muck
F i x t u r e C o . in Q u i n c y , I I I . ,
when the maker of Kmart's
shelving and checkout counters
was shuttered by its financially
beleaguered corporate parent.
Ruff is now studying healing,
ventilation and refrigeration.
But he is not likely lo return l o
the $13.74 an hour he was earning as a unionized carpenter for
Kmart. M i m i Young of Los
Angeles is facing a steep wage
cut as w e l l . Since she was
caught in a corporate downsizing at Thrifty Drug Stores, the
68-year-old administrative assistant says thai all she has been
offered after more than a year
of looking is menial jobs at half
the salary she earned during
her 18-plus years al Thrifty. In a
nation where work, j o b title
and position are highly valued—and the question, " W h a t
do you do for a living?" is constantly asked - unemployment
places a heavy psychological
burden on those who cannot
find a job. Diminished sense of
U.S.Ni-:vvs& WORLD KHPour. IANUAKY
sell-worth ancT self-esteem frequently
accompany joblessness.
In the 1990s, misfortune has climbed
up the ladder from production workers
and secretaries lo middle managers,
who have been caught in the nation's
first-ever white-collar recession as corporations move, toward flatter organizations. The stress, pain and anxiety has
been especially acute for while-collar
workers, who tend to be older males
wilh major family and financial responsibilities like mortgages and college-iu-
ilion payments. In three years, the average income for college educated mcn
ages 45 l o 54 has fallen 10 percent. This
helps explain why even those w i t h
above-average incomes —but below the
richest fifth — haven't recovered from
Ihe last recession.
Paul f.undberg knows lhal the troubles for middle managers did not end
with the downturn. In April 1994, his
emplover of 22 years, Chicago & N o r t h western Railroad, was bought out by
Union Pacific Corp. The new owner
I.'ICI'CLLE: LITVIN ron USNAW;
S RVN T B C M A K O L D E W R E . After leaving his retail
T II G O EO E
N WE G O K R
position,
Richard Landman started a job-placement business for people who want positions in t h e
computer industry. Landman struggled for several months before receiving a check.
M»;
�'HJEillE:.' JsSSZ}&iiS8$&
gave Lundbcrg lhe (ipiion uf
trading his senior vice presidenl position in Chicago for
a lower-level post in Omaha
or joining the unemplovnienl lines. Lundhcrg has
been out of work ever since.
After playing a role in bringing his company to profitability, complains the former
railroad executive, "vou feel
like a victim of your own success." Stuart Wegener of
Gainesville, Fla., has been
forced to make economic
sacrifices, too. A senior staffer in nonprofit fund-raising
and development, Wegener
left his position in Illinois in
1994 to follow his wife in
search of career advancement. After 10 months of unemployment, he finally
found a position but had to
take a 35 percent pay cut.
Scars. Even those who
survive downsizings are
scarred by the process. Joyce
Colbert-Jones, for example,
O NIT.
has manasicd to evade lavoffs J B A XE Y Stephen Price, a 38-year-old Boeing worker, manned the picket lines in
al A T & T for 14 years." She Kansas during a recent s t r i k e . " I t wasn't about cash dollars," explains Price. " I t was about
even requested ami received
a transfer once —from Flori- job security." When Boeing o f f e r e d a contract with job retraining, t h e s t r i k e ended.
da to Atlanta —because she
thought her Florida office might close. paid their just reward," explains Morgan growth." Roach calls this phenomenon
"It's really a duck-and-dodgc game," ex- Stanley's Roach. "In the '90s, thai has "ihe dark side ofthe productivity-led replains Colbert-Jones. The network serv- not been the case." Instead, productivity covery." Instead of plowing their massive
ices employee and her husband, also with gains of roughly 2 percent a year in the profits back inlo wage increases, corpoAT&T, now are exploring second careers first half of the decade-which should rations are building large cash reserves
so they will be prepared should ihey lose have led lo equally large real income and spending even more on producliviivtheir jobs in future restructurings.
gains —have been accompanied by mea- enhancing equipment such as computers
New era. As corporations use fewer ger compensation growth of jusl (1.6 per- and the latest software.
and fewer workers lo produce iheir reve- cent so far. Says Lawrence Peiiman.
One reason thai managers feel little
nues, labor productivitv has linally been chairman and CEO of Ccridian Corp., a compulsion lo pour profits back inlo
revived. Unfortunately, however, the ro- $1.5 billion Minneapolis-based informa- people is the waning intluence of unions.
bust wage growth of the 19511s and '(ids lion-services company: "There has been Organized labor's ability to push for
has not returned as a result. "Economic an extraordinary decoupling beiwcen higher wages has been sliding rapidly,
theory tells u.s lhal ull imalely workers are productivity growth and compensation and ihe movement's efforts have shifted
toward preserving jobs. At
Boeing, union members recently rejected a. proposed contract •
W E E W AT IS C N E T A E
HR E LH
O C NR T D
even though their leadership
Share of wealth held by the top
Share of stock
Share o f residential real
had accepted it, in large part
in public companies
1 percent of families
estate (primary dwellings)
because they were holding out
held by individuals (1989)
42% held by individuals
for concessions that might help
(1989)
Richest
Rest of
preserve their jobs. "It wasn't
Bottom 9 0 %
l%of top 10%
about cash dollars; it was about
families
job security," explains Stephen
Price, who manned the picket
Richest .
^^Sk
lines in Wichita, Kan., from 4
1% of
®mm!&
a.m. to 7 a.m. for 10 weeks.
families
When Boeing's management
Bottom 90%' ' 4 ^ ^
46%
r^w-^i
came back with a contract in,
66% • .';;•,
•45 '53 '62 '69 '76 '81 '86 '92
cluding a job-retraining and re'49 '58 '65 '72 '79 '83 '89
''''^•I'JGbiM '
assignment program, the union
voted to return to work. With
USNSfWR -Basic clola: Prof. Edward N. Wolff, New York University
corporate loyalty diminishing
i ttig i
52
GRAPHICS C O M - ' I L i i D BY I RACY LF.NZY A N D CORINNA W U
( A V A ^ V / i ' - R - J v : ON.n: P'i'>l. iiOv.'.-inl N W y l l f . N o w Y o i k U'"' -l-r&ny: U.S. Oi.'pfirtr
US.NI-WS& WOKUJ RKIHWT.JANU-Utt 12. li<><>
'
�M B SN S & K H O (G
U 1 K S T C N L) Y
veloped wilhin grou:"-- lhal ha'., similar
creasing share of I hose dollai s is concenqualificalions or job-. I he mo-- -ucccsslraled on a lew lax-software companies,
ful college gradual.-- I'm ex.::v.ple. are i Likewise, corporate dollars lhal used lo
and job changes increasing, workers like
pulling away Irom
>rc-lv pic.:' ,icgrccI'uee luue pn! a premium on gaming lhe
be spiead among hoides ol telephone
hoklers. H i g h - p o u v i v d lavwer- .-.re gairighl cmplovmcni skills for lhe Iul ure —
reccplionisis are now funneled lo lhe
nering incomes far
>\v I h o - , .'f ordi- leading nalional providers of voice mail.
on remaining emplovable.
nary aitorncvs. An-.-ng cxcci '..--cs. ihe
In such an cnvironmcnl. lhe besi perll woukl be overslaling the case, howspiead beiwcen llic earnings . : Clf.Os
formers hii the jackpol and lhe rest will
ever, lo say thai lhe corporate sector has
and their seconds in command h > nearly
lie lucky lo break even.
single-handedly creaied an cnvironmcnl
doubled in jusl a decade. "Corporate
in which hall lhe nalion is permanently
Free agents. Leverage alone, howevAmerica is mov ing low ard a im.ch more
locked into a declining standard of living.
er, would noi create supersiar salaries if
capilalisiicenv ironnv.ni. with k s- securiSome analvsls aigue. for example, lhal
lhe employees who most influence lhe
ty and less uniformuy oi'compcn-ation."
governmeni slalislics may understate insuccess of companies were noi paid acexplains Marshall Ooldsmilh. a consullcome gains by oversiating inflaiion and
cording lo Iheir conlribulion. T o deani lo Fonunc 500 companies. " I f s now
lhat currem weallh data have limits. Othscribe ihis second step. Cook and Frank
much more |imporu:ni lo) am aci and
er experts note that a higher quality of
borrow a term from spoils: free agency.
goods has led to an imThey believe lhat this
J0.-.-;f:A P W . i Q - AUPQRA FQR U.V.'A. .'?
proved standard of liv ing
phenomenon has develfor many workers. Wage
oped in many parts o f
i m p r o v e m e n t s , add a
- the .economy, in-execuhandful of economists,
tive suites as well as in
also may arrive, in lhe
stadiums.
Corporate
near future if lhe diverCEOs, who once worked
gence between productheir vvay up the ladder,
liv ity and pay is a tempofor example, now regurary, r a t h e r than a
larly j u m p f r o m one
slruelural.
problem.
c o m p a n y to a n o l h e r .
A n i l jusl because one inCook and Frank csiicome g r o u p is losing
mate (hal lhe number of
ground does not necesCEOs who joined their
sarily mean lhal anv inpresent firms wilhin Ihe
dividual in lhat group
past three years has
cannoi move inlo higher
leapt 50 percent since
income categories. Nor
the mid-1970s. In thai
can all of ihe rise in intime, the ratio between
equality be attributed io
lhe pay of CEOs and avchanges in lhe realm of
erage American workers
business. D e m o g r a p h has risen from 41 lo I io
ics, particularly the rise
225 lo I, according lo exin single-parent families,
ecutive c o m p e n s a t i o n
has plavcd a big role in
expert Gracf Crystal. In
lhe growlh of poor famGermany, where CEOs
ilies. The proporlion of
are almosi alwavs prochildren living in mothmoled from within the
ti*:-. A senior staffer in nonprofit fund-raising, Stuart
e r - o n l y f a m i l i e s has
corporation, lhe ralio is
Wegener moved from Illinois to Florida in search of advancement.
grown Irom S perceni in
closer lo 20 lo I.
iw>l) to 22 perceni lodav.
After 10 months, he found a job but took a 35 percent pay cut.
The gains of ihe rich
and single parcnls accannot be c o m p l c l c l v
counl for half of all families earning less
retain the Mars. T h i - can and v c! worsen separated from the travails of lhe midv
than SHI.OlH.) a year.
income and v\ealth ci-parilv.''
dle class and lhe poor. Thev are pari of
the same trend. T o some extent, inRegardless of these issues, the rise in
Icconomisis have snuggled io come
income inequalitv remains unmistakup w ith a comprehensive e.xplan.-.'.ion for creases al lhe lop are coming al the expense of ordinary workers. Economisis
able. Even within lhe belter-off half of
this wilhin-gioup inequality. Tne latest
arc hesitant to (real income as a purely
working Ameiicans. lhe spoils of sucpractitioners who have iricd lo solve lhe
zero-sum game, since it is possible for
cess are concenlraled on a surprisingly
riddle are Robert Frank of Cornell Uniall lo prosper or perish together. But.
small group. O f all lhe income gains
versity and Philip Cook of Duke Univei savs Frank, " i f you need to pav vour lop
made from 1977 lo 1990. 79 percent fell
sitv. auihors of ihe recenllv rcblished
lalenl premium rales to keep them
inlo the pockets of the l o p I percent of
The \Viimcr-T(iki:-Ai. Society. Fr.aik and
from going lo lhe c o m p c l i l i o n . il means
families, a group lhal this year is exCook explain lhe rise of an inci.'nie elile
you've got to keep the margins tight evpected lo earn an average of S43S,000.
in two stages. Fusl. winners in tr.e econerywherc else.'' Thai means millions of
A n d wilhin lhat top 1 percent, inequalomy have increased iheir leverage, aiity also is growing because the top tenth
tracting more and more dollars by lhe American workers will need to keep
their bells tight for years to come.
•
oi' 1 percent appears to be getling the
work ihev do. Technologv accounts for
lion's share of lhe economic rewards.
much of this development. The nation's
lax-preparation dollars, for example,
Although educational differences acBV DON L BOKOUOIIS H-iriiM.i\-iiiM",i-nM\Nis
used lo be d i s l r i b u t e d f a i r h widely
count for some of ihe growth in top-level
I.'is A N C U . K S . V1.\RI.\ MAI.I.OKV IN A I LAMA. SCI >!T
amone local accounianls: lodav. an in- VlCMl.'kk-tt l.\ Cllk.\i'.i» .\N[>
inequality. Iwo ihirds of lhe gap has dell> l-'ISOU-.N
,
1
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Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
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Michael Waldman
Description
An account of the resource
<p>Michael Waldman was Assistant to the President and Director of Speechwriting from 1995-1999. His responsibilities were writing and editing nearly 2,000 speeches, which included four State of the Union speeches and two Inaugural Addresses. From 1993 -1995 he served as Special Assistant to the President for Policy Coordination.</p>
<p>The collection generally consists of copies of speeches and speech drafts, talking points, memoranda, background material, correspondence, reports, handwritten notes, articles, clippings, and presidential schedules. A large volume of this collection was for the State of the Union speeches. Many of the speech drafts are heavily annotated with additions or deletions. There are a lot of articles and clippings in this collection.</p>
<p>Due to the size of this collection it has been divided into two segments. Use links below for access to the individual segments:<br /><a href="http://clinton.presidentiallibraries.us/items/browse?advanced%5B0%5D%5Belement_id%5D=43&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=2006-0469-F+Segment+1">Segment One</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?advanced%5B0%5D%5Belement_id%5D=43&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=2006-0469-F+Segment+2">Segment Two</a></p>
Creator
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Michael Waldman
Office of Speechwriting
Date
A point or period of time associated with an event in the lifecycle of the resource
1993-1999
Identifier
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2006-0469-F
Extent
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Segment One contains 1071 folders in 72 boxes.
Segment Two contains 868 folders in 66 boxes.
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
Clinton Presidential Records: White House Staff and Office Files
Publisher
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William J. Clinton Presidential Library & Museum
Format
The file format, physical medium, or dimensions of the resource
Adobe Acrobat Document
Text
A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text.
Original Format
The type of object, such as painting, sculpture, paper, photo, and additional data
paper
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
A name given to the resource
SOTU [State of the Union] Memos, Materials, etc. 1996
Creator
An entity primarily responsible for making the resource
Office of Speechwriting
Michael Waldman
Is Part Of
A related resource in which the described resource is physically or logically included.
Box 35
<a href="http://clinton.presidentiallibraries.us/items/show/36404"> Collection Finding Aid</a>
<a href="https://catalog.archives.gov/id/7763296">National Archives Catalog Description</a>
Identifier
An unambiguous reference to the resource within a given context
2006-0469-F Segment 2
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
White House Staff and Office Files
Publisher
An entity responsible for making the resource available
William J. Clinton Presidential Library & Museum
Format
The file format, physical medium, or dimensions of the resource
Adobe Acrobat Document
Medium
The material or physical carrier of the resource.
Preservation-Reproduction-Reference
Date Created
Date of creation of the resource.
6/3/2015
Source
A related resource from which the described resource is derived
7763296
42-t-7763296-20060469F-Seg2-035-006-2015