RIPON CARTER'S BAD MATH

NOVEMBER 1, 1977 VOL. XIII, No. 21 50 cents

Washington Window CAST YOUR BREAD UPON THE WATERS

On October 19, 1977, the House of surrounding maritime issues and a moral Representatives bit the hand that fed indignation at the corrupt state of the it. Maritime industry and union inter­ shipping industry. President "Trustme" ests---who have lavished millions in Carter had decided to clip the American campaign contributions, honoraria,·and consumer for a few billion dollars to stylish entertainment to cultivate a. keep the lid on a closed-door political docile Congress---found that the House deal with marine unions. But he faced had lost an appetite for their piece the same unrelenting opposition in Mc­ de resistance, a maritime cargo pref­ Closkey that Richard Nixon had faced on­ erence bill. Yet before the bill went ly a few years ago. A few weeks after down to a 252-167 defeat, some reputa­ the Administration's announcement that tions of individual members were pro­ it would support maritime cargo prefer­ foundly changed. ence on national security grounds, Mc­ Closkey made public the entire White "Smiling Jack" Murphy, a politician House decision package (apparently leak­ whose gall is legendary, had visited ed by a conscience-stricked White House the well once too often. The chairman staffer). of the Merchant Marine and Fisheries Committee in tandem with Speaker Thomas From reading the various memoranda P. "Cannonball" O'Neill had engineered concerning cargo preference, the cas­ a railroading, which if had been suc­ ual reader might conclude that Presi­ cessful, might have generated a public dent Carter had "misspoke" to use the clamor to rename their august body the terminology that got Nixon in trouble House of Reprehensibles. and the style that Carter promised to eschew. The Department of Defense did Fending off the combined clout of the not believe cargo preference was help­ the maritime interests---which was re­ ful to our national security, the State enforced by a million dollar ad campaign Department thought that cargo prefer­ mounted by Jimmy Carter's erstwhile ad ence would harm our relations with al­ man Gerald Rafshoon---was California lies and violate over 30 U.S. treaties, Republican U.S. Rep. Paul N. "Pete" Mc­ and the Treasury·Department and the Coun­ Closkey, Jr. One of the brightest and cil of Economic Advisors believe that most articulate individuals ever to cargo preference would harm our economy. sit in the House, McCloskey nevertheless Special Trade Negotiator Robert Strauss, had a reputation among many members as however, overrode these picayune consid­ a lover of quixotic causes. The defrock­ erations by pointing out that nothing ing of Richard Nixon h&d eventually won less than support of cargo preference McCloskey a begrudging tolerance from would satisfy the friends of Maritime his fellow Republicans. Nevertheless, Engineers Beneficial Association pres­ Pete McCloskey, although a veteran of ident Jesse Calhoon. Carter, realiz­ ten years in the chamber, still remained ing that he might be back shelling a House outsider. peanuts had it not been for the crusty union leader's intercession at crucial This most unlikely spoiler of the stages of the 1976 presidential cam­ feast being prepared at the consumer's paign, sided with Strauss, who knows expense by Murphy and O'Neill possessed more about politics than international two strong assets: an impressive grasp trade. (See the July 15 and August 15 of facts concerning the murky waters Ripon FORUMs for further details.) Strauss had advised Carter that sup­ that subpoenas be issued when witnesses port of cargo preference might cost him refused to testify. Jack Murphy stood a couple of days of bad press. The smiling as Democratic discipline held wily former Democratic national chair­ on this vote producing an impressive man badly underestimated the interest majority for the rule. In the after­ of newspaper editorial writers. In ad­ noon of October 19, the tide began to dition, the array of opponents to this shift under the gravitational forces legislation spanned the ideological organized by McCloskey. spectrum in what must surely rank as one of the most unusual lobbying coali­ The California congressman success­ tions in recent congressional history: fully pressed an amendment restricting the Ripon Society, Human EVents, Common U.S. flag carriers benefiting from cargo Cause, the Grange, ~he National Associa­ preference from charging more than 50 tion of Manufacturers, the U.S.Chamber percent above the world market price. of Commerce, the American Petroleum In­ McCloskey succeeded also in adding stitute, and Ralph Nader's Public Citi­ amendments respectively to delay HR zen and Congress Watch (which effective­ 1037's effective date until "the secre­ ly lobbied many younger Democrats in tary of the Treasury certifies that the final weeks before the House vote.) such steps will not reduce total nation­ al employment and gross national product" Very little was spent by cargo pref­ and "the secretary of State certifies erence opponents to defeat HR 1037, that such steps will not violate any which both proponents and opponents treaty of friendship, commerce and navi­ agreed was almost assured of passage in gation with any nation which is a mem­ the House, but might be stopped by more ber of the North Atlantic Treaty Organi­ concerted opposition in the Senate zation." where Senators Bob Dole, Robert Griffin, and Richard Lugar stood ready to do bat­ Apparently confident that Carter tle. Cargo preference opponents real­ could bring both Blumenthal and Vance ized that the lavish advertising and to heel to port, Murphy acceded to both generous campaign contributions paid out these amendments. McCloskey succeeded by maritime interests were the bill's in also tacking on a fourth amendment Achilles heel. Despite attempts of Mur­ permitting u.S. flag ships to be created phy and other cargo preference flaks to from the 60 million deadweight tons in rail against the multinational oil com­ world surplus stock. He pointed out that panies, the oil industry maintained a the same ship immediately available at very low profile. 17 million dollars from the tanker sur­ plus would cost 150 million dollars and With informed public opinion turning require three years to build in u.S. steadily against cargo preference, Mur­ shipyards. phy and O'Neill sought to muscle the legislation through the House. Most of Despite the new packaging McCloskey the Democrats on the Merchant Marine had imposed on Murphy's bill, the Mer­ and Fisheries Committee had acquiesced chant Marine chairman was still set for to Murphy's decision to "stonewall" a salvaging something for his industry­ request by McCloskey to subpoena sever­ union friends. What followed next was al reluctant witnesses, including Treas­ an incredible scene from a Grade B movie ury Secretary Michael Blumenthal, Cal­ about politicial bossism. "Cannonball" hoon, and Strauss. "Cannonball" O'Neill O'Neill ambled out on the floor and summarily dismissed McCloskey's legal promptly began mumbling inaudibly from brief that House rules· gave the minori­ the chair. By all indications he was ty a right to subpoena as well as re­ discussing the third reading of the bill. quest witnesses. O'Neill's Democratic The speaker finally abandoned his mum­ minions on the Rules COmmittee fell in­ bling to announce that the bill had been to lock step behind the erudition of passed. McCloskey, stunned by this bra­ their speaker. zen maneuver, jumped to his feet to de­ mand a recorded vote. The speaker an­ Thus it was that the first vote on nounced that he had waited too long. Mc­ cargo preference came on the rule to re­ Closkey moved for reconsideration, a port HR 1037 for a vote. Republicans motion which by the speaker's lights led by McCloskey sought to defeat the would require unanimous consent. Murphy rule on the grounds that the bill had objected. By now, many in the galleries not been adequately reviewed in commit­ were gagging in disbelief. At this tee and that the minority's rights to point, U.S.Rep. Robert Bauman(R-Md.), A call witnesses was a nullity if it did conservative supporter of JIR 1037, sought not extend to the riqht also to insist to mediate by suggesting that Murphv would ensue if a rollcall vote were de­ friendships have financed his numerous nied on this issue. At the speaker's trips to those countries, several of suggestion, Murphy withdrew his objec­ tion. Within a few minutes, the nays which have not been paid for by-the began to overwhelm the yeas on the House u.S. Congress. He made at least two tally board. With the bill's defeat, such expensive trips to Iran in one 257-165, it became clear that money can't recent year and the Washington Post buy everything these days---not even the has quoted a Nicaraguan official as House of Representatives •• saying that Murphy has visited that country "at least 100 times." (Mur­ phy and Somoza were former West Point roommates. However, it is also worth Corgogole Noles noting that the proposed Panamanian treaties would prohibit the construc­ tion of an alternative canal by the In a widely reprinted article, Murphy United States. The logical route for attacked the proposed Panama Canal trea­ such a canal would be through Nicar­ ties on several grounds. In part, he agua. ) wrote: The Torrijos military dictatorship Murphy's efforts to promote the seized the government in a 1968 coup business interests of foreign govern­ from the legally elected government. ments are not the only ones to get Since that time he has suspended the him into recent trouble. Murphy legislature, suppressed the media and appeared before a New York grand subordinated the judiciary to his own jury investigating organized crime national guard which, incidentally, and the trucking industry. Murphy, has a minimum literacy requirement. whose family owns Cleveland General The result is that supreme power in Transporation Co., apppeared "volun­ Panama is wielded by one dictator and tarily" before the grand jury in a group of functional illiterates. July to explain why he arranged a meeting between ICC official Robert While Murphy has been one of the Oswald and trucking company owner foremost Democratic opponents of the Thomas Gambino, son of the late Panama Canal treaties, he has also been Mafia leader Carlo Gambino. one of the foremost congressional de­ fenders of Nicaraguan dictator Anastas­ While Murphy and the Carter Adminis­ io Somoza Debaye, whose reputation for tration stonewalled any inquiry into despotic government is nothing to write the cargo preference legislation, one home to Staten Island about. When the of the maritime industry's most zealous Staten Island Advance expressed editor­ investigators was dismissed by the Jus­ ial puzzlement about Murphy's denuncia­ tice Department. Over the objections tion of Torrijos and support for Somoza, of Deputy Attorney General Pete Flaher­ Murphy hit the roof. In an article sub­ ty, New Jersey U.S.Attorney Jonathan sequently published in the Advance, Mur­ Goldstein was asked for his resignation phy suggested that only his respect for in early September. Goldstein's dismis­ the First Amendment stood in the way of sal demonstrated clearly that the Carter a law suit. Murphy's respect for the Administration placed more weight on its First Amendment had not previously been promises to maritime unions than to can­ conspicuous, particularly in regard to didate Carter's pledge to depoliticize possible lawsuits. the appointment of U.S.Attorneys. As Goldstein said in his resignation state­ Murphy's concern for Nicaragua is ment:"They gave way to the dictates of understandable, however~ The New York typical, traditional discredited poli­ Times' Ann crittenden revealed in late tics." October that Murphy is the subject of ~ Justice Department inquiry into his role as a go between Nicaragua and Iran in the construction of a proposed oil refinery in Nicaragua. Murphy's ef­ RENEW forts to convince Iran to supply oil to the proposed facility (to be owned by Somoza) were eventually fruitless. Murphy's attributes his interventions TODAY on behalf of the Iranian and Nicara­ guan governments to "friendships," but it is difficult to understand how CARTER'S MORAL EQUIVALENT OF WAR Commentary: Economics DY Richard W. Rahn

William James defined the moral equi­ taxes work, but only the work of the valent of war as something involving least productive workers. "discomfort and annoyance, hunger and wet, pain and cold, squalor and filth." A worker's productivity is a com­ We have, in our society, many who suffer bination of such things as his basic these symptons. These are those excluded work habits, i.e., his not goofing off, from the economicbene.fi ts. of America. getting to work on time, being well-dis­ It is both ironic and sad that even though Carter based his campaign on ciplined, his energy level, his skill Mr. in using the various tools of his trade; promises of improving the lot of the and his stock of knowledge gained through poor, the black, and the disadvantaged, education and experience. Teenagers, he has done more in the first ten months then, tend to be less productive than do of his presidency to add to their plight older and more experienced workers. A than to alleviate it. teenager who now produces $1.50 per hour of product is, under current law, It is the economically disadvantaged barred from working, while a teenager who suffer most from low rates of econom­ whose skills have improved to the point ic growth, from high rates of inflation, where he can produce $2.50 per hour of and from high unemployment. As even his product may now be able to find employ­ advisers will admit, President Carter's ment. But under Mr. Carter's 40 percent minimum wage increases, energy program, increase in the minimum wage, the second and Social Security funding proposals teenager too will be legally·barred from will substantially add to the rate of working, and it will be only those unus­ inflation and reduce employment opportun­ ually skilled teenagers able to produce ities, for each will cause a major in­ more than $3.35 per hour of product 'who crease in taxes levied on the productive will be able to find work. sectors of the economy. MoreOVer, there have been no equivalent proposals to off­ Even Secretary of Labor Ray Marshall set these tax increases by reducing taxes has now conceded that the increase in on productive work and capital. the minimum wage will add about 100,000 people to the unemployment rolls. Many Let us examine the effect of each of impartial observers believe that the ~c­ these programs, beginning with the mini­ tual figure will be even higher. Aga1n, mum wage increases. Carter has just most of these unemployed will be teen­ signed into law a bill that will increase agers, particularly disadvantaged teeri­ the minimum wage in a series of steps agers. What Carter and Con~ress have from the current $2.30 per hour to $3.35 said, in effect, to the~~ d1sadvantaged per hour by January 1, 1981. youths is that it is il~gal.fo~ them to obtain a job to increase the1r work Most white male workers currently skills and thus to acquire further edu­ make well in excess of $3.35 per hour. cation; but more importantly, that it The effect of the increase on these work­ is illegal for thsm to learn ~?w uo be­ ers can only be a small reduction in their effective buying power, caused by come productive members of society~ increased inflation due to higher busi­ ness costs. Those who suffer most from As far as Carter's energy program an increase in the minimum wage are those is concerned, things are less cle~r. least skilled, especially teenagers and The final shape of the energy leg1s~a­ tion that Congress will act on rema1ns particularly black teenagers. uncertain. It is apparent, however, that much of Carter's energy program, Businessmen only hire employees whom if enacted as proposed, would add ap­ they believe will produce more in prod­ preciably to inflation by taxing energ) uct than they will cost in wages. Thus at extremely high levels. Moreover, the minimum wage becomes equivalent to it would do little to encourage dom7s­ a tax. It constitutes a penalty on the tic energy production. In fact, ra1S­ least productive workers, for they be­ ing the tax on domestically-produced come the least likely to be hired. It 'oil to the world price, as is proposed, is a fundamental proposition of econom­ would provide no incentive whate~er ics that when an item is taxed, you will to reduce our dependence on fore1gn get less of it, and when it is subsidized, nations for petroleum. you will qet more. The minimum wage It is, however, Carter's proposals States already taxes productive work concerning natural gas prices that are and productive capital at hi~her rates mos t damaging to the economy. The, than virtually any other industrialized. President opposes removing the price country. Carter's Social Security pro­ controls on domestic natural gas, de­ posals, rather than alleviating the spite the testimony of nonbiased au­ problem, add to it. thorities that we have several hundred years' supply remaining even at current Employers determine the number of· usage rates. In addition, the Depart­ employees they hire on the basis of what ment of Energy is negotiating long term the employee will cost them, not on what deals with Algeria, Indonesia, and Mexi­ the employee will receive. We also know co to import their gas at rates of up that, as a general proposition, the num­ to $3.50 per thousand cubic feet. The ber of employees available or willing Department of Energy is meanwhile in­ to work will increase as the real wage sisting that the price,oE domestic gas increases. An employee's willingness be kept at less that $2.20 per thous­ to work is not a function of the employ­ and cubic feet. er's labor cost, but rather a function of the wages he actually receives. Pay­ The economic consequences of such roll taxes, such as the Social Security policies are all too clear. Increased tax, create a "wedge" between what the taxation of consumers and productive employer has to pay for the worker's users of energy will reduce their pur­ services, and what the employee actual­ chasing power, adding to inflation and ly receives. The effects of the wedge unemployment. Also, by reducing do­ and how it increases unemployment have mestic incentives to produce more ener­ been extensively analyzed and described gy and not expanding disincentives to by Dr. Arthur B. Laffer of the Universi­ purchasing energy abroad, we will ex­ ty of Southern California. perience an increase flow of both jobs and ollars from this country to energy To understand this concept, imag- producing countries. This will fur­ ine a wedge consisting of Social Secur­ ther depress the price of the dollar ity, unemployment and other taxes total relative to other world currencies, ing 20 percent of the money paid a work­ and thus add to domestic inflation. er whose gross wages are $200 per week. Imagine that the employer pays half and Carter' programs are the equival­ the employee half; thus each pays 10 per­ ent of war. It is a war analogous to cent. Under these conditions, the em­ that of the military strategist who ployer's cost is not $200 per week, but plans to win by destroying the home rather $220 per week. The employee isn't country so that it will be of no con­ receiving his $200 per week either for ceivable use to the enemy. The united he must subtract his tax wedge share of $20, leaving him with $180 per week in actual wages received. Thus a wedge of $40 is the difference between the wages paid of $220 per week and those received of $180 per week.

It is easy to see what happens if the wedge is increased to, say, 40 per­ cent. Assuming that it is still divided evenly, the cost to the employer will rise from $220 per week to $240 per week. As a firm's decision to hire is based primarily on the cost of its la­ bor, firms will hire fewer workers. Real wages received by employees will fall from $180 to $160 per week, making employees less willing to work. Thus, as the wedge is increased, both the firm's desire to hire workers and the workers' willingness to produce will be reduced, and so affect output and the level of total employment.

It is all very well to point to shortcomings in President Carter's econ- omic proposals, but it becomes a futile include substantial income tax rate exercise unless alternatives can be of­ reductions. In addition, substantial fered, alternatives that will not be reductions in the effective rate of destructive of work and productive ef­ corporate taxation are needed." These fort, and will not increase inflation can be accomplished by reducing the and unemployment, nor decrease the rate corporate tax directly, and/or by elim­ of economic growth. Such alternatives inating the double taxation of divi~ do exist •.• for example, the establish­ dends, providing more realistic recov­ ment of a lower minimum wage for teen­ ery allowances, and increasing the in-. agers .•• or a voucher system whereby em­ vestment tax credit. Such a program ployers could offset part of the wages of tax reduction would ensure rapid paid to low-skilled workers with tax economic growth for the next several credits .•. or, in regard to the energy years, and greatly enhance Carter's problem, a much greater reliance on the chances of reelection. free market. Such reliance would re­ duce the rate of energy price increases, If Carter remains on his present allocate energy resources more effi­ course, hardship will befall all Amer­ ciently, provide the necessary incen­ icans, whether they are Democrats or Re­ tives for further energy development, publicans, rich or poor, black or white. and thus be far less destructive than For unlike past wars, Carter's proposals Carter's proposed energy plan. will destroy the fabric of America: pro­ duction, achievement and success. Our The Social Security system needs to economy, through which so much has been be totally revamped to reflect the achieved for so many, will receive a change in the birth rate and the real blow from which it may not recover. If needs of Americans today. These needs carter's programs are enacted as writ­ are far different than those of the ten, they will do the most harm to 1930s. Consideration ought to be given those least able to defend or to help to funding Social Security through a themsleves, those most affected by econ­ value added or consumption tax rather omic downswings. This cannot be Presi­ than through a payroll tax. The burden dent Carter's intention. Let us hope of Social Security would thereby be that it is not his result. X carried equally by the entire popula­ tion---and not solely by the unprivi­ leged majority who do not work for the Contributor Note: Richard W. Rahn is ex­ executive, judicial or legislative ecutive director of the American Council branches of government. for 'Capital Formati:on. In conclusion, none of the alterna­ tives offered to help us solve these Looking for a gift to give that special pressing economic problems are p~in­ Republican on your Christmas list. Nei­ less, but some are less destruct1ve man-Marcus has a special Lincoln Safari than those of President Carter. Even in its Christmas catalogue. The seven­ though his presidency is only ten months day excursion to Springfield, Illinois old it has already reached a critical costs $30,000, but all proceeds go to poi~t. Carter can follow his pres7nt Lincoln College, Lincoln Illinois. The path of increased taxes and penalt1es junket includes a personal tour by. act­ on productive labor and capital, and or-scholar Richard Blake and "a commem­ thus ensure a massive recession and orative planting of a red oak tree at his own defeat in 1980. Or he can take the Lincoln Farm. The tree site will a bold, positive step as John F. K~nne­ dy did in 1962, and propose extens1ve be permanently marked with a metal tax reductions on proguctive labor and plaque bearing your name, hometown, and capital. Specifically, these should date of the safari."

RIpon Soc:iety, unless they are ezpUcitJy 80 labelled. THE RIPON SOCIETY, INC. ~~__ ~h~ SUBSCRIPTION RATES are $15 a year, $7.50 for students, serv­ ___ are yOUDg busiDeSB, academic ana J)rOfeaalonal men and icemen and for Peace Cbrps, Vista and other \·olunteers. Overseas WOJD8D- It hall DCIIlonal heaclquartera In DIstrlct of COlumbta. air mdi!. $6 extra. Advertising rates on request. Please allow ~ In fifteen c:ltle8. Natioria\ Associate :members through out live wee1r:s lor addre8B changes. the fitly states and sever.u affiliated groups 01 subc:hcn:Jter status. The Soc:iety ~ supported by chapter dues, iDdIvidua1 contrtbu­ ttcm. cmd revenues from its ~ and contract work. Editon Dick Behn is publtshed semi-monthly by the THE RIPON FORU M Ripon Society. Inc .• BOO 18th St.. !,.W .. EditoriAlaska FILLING THE GUBERNATORIAL PIPELINE

Some of Gov. Jay Hammond's severest ure with Croft stems from his role critics belong to the Republican Party. in providing accommodations for Ham­ There has been speculation that the pro­ mond's campaign manager in Anchorage ponent of controlled growth would have during the 1974 campaign. And speak­ difficulty winning renomination over ing of accommodations, Sheffield hotel the pro-growth forces in his own party. chain owner Bill Sheffield is person­ Hammond recently announced for reelec­ ally depicted in his hotels' advertis­ tion, however, and the best odds are ing these days. Sheffield is the Dem­ that Hammond and Lieutenant Gov. Lowell ocrats' third major candidate for gov­ Thomas, Jr. will win renomination and ernor and displays his views in the reelection. chain's house magazine.

It's not that the gubernatorial post All of the above are critical of lacks for prospective contenders. For­ Hammond's leadership style and most mer Gov. Walter Hickel(R) would like are critical of his growth policies. his job back, but after his defeat by But as Hammond campaign chairman Ralph Hammond in the 1974 primary, it is un­ Migliaccio observes:"Many businessmen likely tha~ will enter the race without like me realize what the governor's the sort of unified party backing that aiming for is a balance between the seems unlikely. A group called "Spirit need to safeguard the esthetically of Alaska" has been trying to achieve pleasing Alaskan lifesyle and the need just such a result. Like the leader of to maintain an economy that's healthy the powerful Teamsters union in Alaska, enough to provide jobs and a good stan­ Jesse Carr, Hickel has been among those dard of living for us all. We can't critical of Hammond's growth policies. allow extremists on either side to dominate, and believe me, that's wRat Hammond has been willing to take on this election will be---a struggle by both powerful labor and business inter­ certain special interests for control ests in espousing what his opponents of Alaska's future." Hammond's big­ decry as an "anti-development" program.· gest difficulties, however, may come Nevertheless a recent poll by Alaska Re­ as a result of his tight-fisted fiscal search showed that Hammond is the state's policies. Despite the state's huge strongest gubernatorial hopeful with oil windfall, pressures to exponential­ support from 26 percent of the Republi­ ly expand state spending have mounted. cans and 28 percent of the independents. "People don't equate their particular By comparison, Hickel drew support from projects with governmental growth," 22 percent of both groups. Hammond is says Hammond. "But increased funding weakest in Anchorage where the Anchorage for day care is expanded government, Times is vehemently anti-Hammond and another ferry on the the system is ex­ where many gubernatorial hopefuls are panded government ••• But with all these domeciled. things, individuals say,'I'm all for suppressing government growth, except These include former House Speaker when it's the kiRd of growth I want to Tom Fink(R), a conservative insurance foster. " man who is certain to be a candidate; Anchorage Chamber ~f Commerce president Compared to the gubernatorial group Thomas E. Kelly, a ~eologist who served grope, the 1978 Senate race is the pic­ as commissioner of natural resources un­ ture of loneliness. Sen. Ted Stevens(R) der Hickel; and Hickel himself on the is probably the safest Republican in the Republican side. For the Democrats, nation. U.S.Rep. Don Young(R), however, former Gov. William Egan is the lead­ already has two Democratic challengers: ing Anchorage candidate to recapture Anchorage Sen. Pat Rodey and Fairbanks the'post he narrowly lost in 1974. State Rep. Steve Cowper. Facing Native Second in line is Anchorage State Sen. American candidates in the last two Chancy Croft, a liberal and competent elections, Young has won easily .• legislator who has the lasting animos­ ity of Egan for Croft's disinterest in Egan's 1974 reelection fight. He SPECIAL INTRODUCTORY CHRISTMAS GIFT has won bipartisan respect, however; SUBSCRIPTION: Four months/ $4.00 the Republican chairman of the Senate "An elephant-sized gift for a Finance Committee has already endorsed ••• peanut-sized budget." him. In~eed, part of Egan's displeas- race against Sen. Thomas Durkin(D) Ripon: Updale who is considered more beatable th~n McIntyre. There is every indication that a McIntyre-Thomson race would be NEW HAMPSHIRE New Hampshire stum­ a vicious contest. Early this year I I McIntyre delivered a speech in which b~ed out of its budget crisis this year w1thout much help from the state's bum­ he said:"We have allowed [New Hampshire] bling governor, Meldrim Thomson. But to be70me dominated by the disciples of Thomson's incantations about no new conf11ct and exploiters of division' taxes continue to mystify the voters by pietistic frauds who have cheape~ed and soiled those intensely personal despite his appalling conduct of state matters like love of God and country affairs. As the Concord Monitor's Tom by whipsawing them through the poli­ Ferriter wrote earlier this year:"For tical arena: by flagwavers who scorn good political reasons, Thomson has the institutions behind the flag: by b en reluctant to offer a clear expres­ 7 bully ~oys wh~ brook no opposition, S10n of the current [budget] situation snoop 1n conf1dential files, encour- and the state's prospects for the fu­ age people to inform on their neigh­ ture. Simply put, the issue is this: bors, slap gag orders on state employ­ New Hampshire must either begin to dis­ ees~ 7un roughshod over town meeting mantle its state government or face the dec1s10ns, pressure independent regu­ inevitability of a b~oad-based tax in latory agencies, harass the state uni- ';, - th~ near future. Thomson has recognized versity, claim all truth and virtue th1s and has made his choice. He will partition society into 'us' and 'th~ 't preside over the dismemberment of state and think of opponents not as candi- ' government sooner than accept a general dates to defeat but as enemies to anni­ sales or income tax to help pay the hilate." Rudman would be a much more state's bills." The legislature was reasoned opponent whose law and order able to cut one repulsive item from the credentials would be buttressed by budget. The state commission on women the rationality that Thomson lacks. w~s axed ~fter it issued a report blaming Although Senate president Alf Jacobson w1fe-beat1ng on women's lib. Unfortun­ (R) has announced his intention to con­ ately for the GOP, no one has yet emer­ test McIntyre, he would probably switch ged to do ritual battle with Thomson - -quirtiy to the race for C.ongre'ss should .-­ in next year's GOP primary. The best U.S.Rep. James Cleveland(R) dec~de to that thinking Republicans can hope for 7etire. As the state's lone Republican is that Thomson may still be tempted to 1n Congress, Cleveland seems tempted to enter the race against Sen. Thomas Mc­ ~eturn to the Granite State. The GOP Intyre. Such an eventuality is not wo~ld immediately produce a large crop unthinkable if Thomson hears the bugle of would-be congressmen, including Exec­ call from the Canal Zone. (In legal utive Councilors Bernard Streeter and dispositions filed in Thomson's suit Ray Burton. The sole would-be congress­ against the author of Who the Hell is woman, State Rep. Susan McLane(R), William Loeb, a number of interesting would have.a good chance of winning a observations are made: Thomson re- crowded pr1mary. The McLane name is ceived an employment deferment to well known in the state as a result evade the draft in World War II: he of her ten years in the legislature dropped out of the University of Miami after a controversial role as a stu- and chairmanship of the House Ways and dent activist: and that he intervened Means Co~ittee. MoreOVer, acLane's in the affairs of one of his lawbook husband 1S a member of the Governor's Executive Council, a fo~er mayor of firms in Puerto Rico in 1975 to stave concord, and an independent Republican off bankruptcy. It might be noted that candidate for governor in 1972. The Thomson's firm publishes lawbooks for GOP situation in the 2nd C.D. is con­ the Canal Zone.) Former Attorney Gen­ siderably sadder since the party has eral Warren Rudman(R) is also consider­ been unable to recruit a truly quality ing a race against McIntyre although candidate against the vulnerable U.S. both Rudman and former Gov. Walter Pe­ Rep. ~orman D'Amours(D). terson are thinking about the 1980

RIPON FORUM Published semi-monthly by the Ripon MSWllLING D002426123199CP01 Society, 800 18th St., N.W., Washing­ DANIEL J SWIllINGER ton, D.C. 20006. Second class postage 616 A ST SE paid at Washington, D.C. and other WASHINGTON DC 20003 mailing offices.