11530 EXTENSIONS OF REMARKS May 15, 1980 EXTENSIONS OF REMARKS

CONGRESSIONAL YOUTH ADVI­ Senate, which seems to have the best As long as inflation keeps increasing the SORY COUNCIL REPORT: chances for passage, leans toward an initial demands on the social security system, this GREENE COUNTY-MAD RIVER $100-200 (joint return) interest exclusion constant increasing in taxes to meet recipi­ TOWNSHIP for the saver. ent requirements can only continue, taking However, these types of tax incentives are more out of the worker's' pockets. costly, have only a minimal effect on capital The proposal deals with changing the way HON.CLARENCEJ.BROWN formation, and do not provide enough of an social security benefit requirements are met. OF incentive for the average taxpayer to save. If instead of drawing directly from the tax­ He will still lose money as a result of infla­ payer, a reserve fund was instituted to meet IN THE HOUSE OF REPRESENTATIVES tion. these requirements, the fund could be in­ Thursday, May 15, 1980 All of the savings incentives proposals vested in a productive way. Eventually the returns from the investments could be used e Mr. BROWN of Ohio. Mr. Speaker, that have been introduced have been made on the assumption that savings are possible. in covering future increases in recipient re­ the issue of how to encourage Ameri­ Many lower-income people, at the present quirements and in paying social security cans to save more to provide addition­ inflation rate, simply do not have any benefits, and social security taxes would be al capital for investment was the topic money to save. The incentives being pro­ put into the fund instead of being paid di­ of study by the Greene County-Mad posed give the middle class a slight break, rectly to the recipients. River Township Committee of this while excluding the poor and providing Except for an increase in social security year's Congressional Youth Advisory more loopholes for the wealthy. A proposal taxes while the fund is being accumulated, Council, which I sponsor. I would like is necessary that will benefit all workers in this would have the overall effect of lower­ the . ing social security taxes. In addition, the in­ to share the committee's recommenda­ vested fund would be forming capital and tions with my colleagues in the House. COMPLEXITY IS PROBLEM strengthening the economy. Following is the report of the Another problem with many savings in­ Thus, this proposed alternative to savings Greene County-Mad River Township centives is their complexity. If the average incentives would not only cut the drain on Committee: consumer does not understand how he can taxpayers' paychecks, but would be anti-in­ GREENE COUNTY-MAD RIVER TOWNSHIP benefit through the savings plan, he will flationary in that the social security funds CYAC COMMITTEE not save. The ideal incentive will be a would be forming capital through produc­ simple, direct idea that benefits all econom­ tive investment. SAVINGS INCENTIVES ic classes. Such a proposal has not yet been TAX INDEXING The rate of personal savings in the United devised. As a part of the general plan to reduce States is at its lowest point in thirty years, There are also valid reasons to believe currently at a rate of 3.3 percent-the taxes, to increase savings, and to make tax that savings incentives will not have a no­ policy more equitable, tax indexing has lowest of all major industrialized countries. ticeable positive effect on the economy. Pre­ Not only is this level of savings the lowest, been proposed. Rising incomes, trying to sumably, savings incentives would draw keep up with the cost of living, push taxpay­ but it is also declining while savings rates in money from the spending part of the econo­ other countries are on the rise. Why does a ers into higher tax brackets. Today's aver­ my

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. May 15, 1980 EXTENSIONS OF REMARKS 11531 TAX INDEXING below. It looks like time has run out of the burden imposed by the inflow of refu­ Resolved, that the tax code be revised for many of the people of Haiti. gees, the federal government assistance that such that tax brackets more equitably re­ [From the Washington Post, May 8, 19801 will be made available should be shared by flect real income by increasing all fixed the Haitians as well as by the Cubans. dollar amounts in the income tax tables by THE HAITIAN EXCEPTION We must not abandon the Haitians to the the percent that the Consumer Price Index

11550 EXTENSIONS OF REMAMS May 15, 1980 plaintiff is determined by the court under civil action in an appropriate district court (2) the court may, in its discretion, award section 4(d)(l). of the United States or in any State court of a reasonable attorney fee to a defendant (10) The term "statement" means any rep­ competent jurisdiction. upon a finding that the State attorney gen­ resentation in any form of advertising, any Cc) The district courts of the United eral has acted in bad faith, vexatiously, oral or visual presentation, or any other rep­ States may have jurisdiction of any action wantonly, or for oppressive reasons. resentation, presentation, or conduct which brought under this section without regard Ce> Any monetary relief recovered in any is communicated to consumers. to the citizenship of the parties or the action brought under subsection (a)(l) (11) The term "supplier" means arw amount in controversy. An action under this shall- person who is in the business of making section may be brought not later than three (1) be distributed in such manner as the goods or services available to consumers. years after the date on which the unfair district court in its discretion may author­ ( 12) The term "unfair consumer practice" consumer practice was discovered or reason­ ize; or means any of the following: ably should have been discovered. (2) be deemed a civil penalty by the court CA) offering or advertising goods or serv­ ACTIONS BY STATE ATTORNEYS GENERAL and deposited with the State as general rev­ ices for s~le to a consumer and not selling SEC. 4. Ca)(l) Any State attorney general enues; such goods or services as so offered or ad­ may bring a civil action in the name of the subject to the requirement that any distri­ vertised, or without ability to supply reason­ State, as parens patriae on behalf of con­ bution procedure adopted by the court shall ably expectable public demands, unless the sumers residing in the State, in any district afford each person involved a reasonable op­ offer or advertisement clearly and conspicu­ court of the United States having jurisdic­ portunity to secure his appropriate portion ously discloses the limitation; tion over the defendant or in any State of the net monetary relief. CB) making false or misleading statements court of competent jurisdiction, to secure INJUNCTIVE RELIEF with respect to goods or services which are monetary relief as provided for in this sec­ offered for sale or sold to a consumer with SEC. 5. The Attorney General of the tion for any damage or loss- United States, the appropriate United respect to- CA> which is sustained by such consumers (i) the need for such goods or services; States attorney, or the State attorney gen­ by reason of any unfair consumer practice; eral of any State in which a prohibited act (ii) the need for repair or replacement of and such goods or services; or practice occurred (as parens patriae of CB> with respect to which an action may the people of such State, after notifying the (iii) rights, privileges, or remedies, in con­ be brought by any injured party under sec­ nection with the purchase of such goods or Attorney General of the United States) tion 3. may, upon a finding that any person is en­ services; (2) An action under this section may be gaged or is about to engage in any act or Civ) prior ownership of such goods or serv­ brought not later than three years after the practice which constitutes an unfair con­ ices; date on which the unfair consumer practice sumer practice, bring an action in the ap­ (v) the grade, age, quality, style, standard, was discovered or reasonably should have propriate district court of the United States, or model of such goods or services; or been discovered. or in any State court of competent jurisdic­ (vi) price of quality comparisons with sim­ (3) The court shall exclude from the tion, to enjoin such act or practice. Such ilar goods or services offered for sale to con­ amount of monetary relief awarded in any courts shall have jurisdiction over such ac­ sumers by the same or another supplier; action brought under paragraph ( 1) any tions and shall provide appropriate relief. CC) making a statement that goods or amount of monetary relief which- Such courts may grant a temporary re­ services offered for sale, or sold to consum­ CA) duplicates amounts which have been straining order, or a preliminary or perma­ ers, have sponsorship, approval, origin, awarded for the same damage or loss; or nent injunction without bond. safety or performance characteristics, ingre­ CB> is properly allocable to consumers who AMENDMENTS TO TITLE 18, UNITED STATES CODE dients or components, uses, features, bene­ have excluded their claims in accordance fits, or qualities which the goods or services with subsection (b)(2). SEc. 6. (a) Chapter 63 of title 18, United do not have; (4) The court shall award to the State as States Code, is amended by adding at the CD) accepting consideration for goods or monetary relief an amount equal to 300 per end thereof the following new section: services and failing to deliver such goods or centum of the total damage or loss sus­ "§ 1344. Unfair consumer practices perform such services as promised or failing tained, together with an amount equal to "(a)(l) Whoever, in connection with the to return or refund deposits or advance pay­ the cost of the action (including a reason­ sale, attempted sale, or distribution of goods ments for goods or services which are not able attorney fee>. or services to a consumer, or in connection rendered in absence of any default or (b)(l) In any action brought under subsec­ with the collection or attempted collection breach of obligation on the part of the con­ tion (a)(l), the State attorney general shall, of the purchase price or any portion of the sumer making such deposits or advance pay­ at such times, in such manner, and with purchase price of goods or services by the ments; such content, as the court may direct, cause use of any means or instrumentality of (E) using physical force, threat of physical notice of such action to be given by publica- . transportation or communication in com­ force, tortious threats or harassment, or tion. If the court finds that notice by publi­ merce including the use of the mails, will­ misrepresentation of law in the course of a cation would deny due process of law to any fully or negligently engages in an unfair sale or attempted sale to a consumer of person, the court may direct further notice consumer practice, shall be fined not more goods or services or in the course of collec­ to any such person according to the circum­ than $100,000 if an individual, or not more tion of the purchase price or any portion of stances of the case. than $500,000 if an organization, or impris­ the purchase price of goods and services (2) Any person on whose behalf an action oned for not more than three years, or both. from a consumer; is brought under subsection (a)(l) may elect "(2) For purposes of this subsection, the CF) making a statement that goods are to exclude from adjudication the portion of terms 'commerce', 'consumer', 'goods', 'orga­ original or new if such goods are deteriorat­ the State claim for monetary relief attribut­ nization', 'sale', 'services', and 'unfair con­ ed, altered, reconditioned, reclaimed, or oth­ able to such person by filing notice of such sumer practice' have the meanings given erwise used; or election with the court not later than the them in section 2 of the Consumer Fraud CG) making any false or misleading state­ end of the period specified in the notice Act of 1979. ment with respect to the reasons for, exist­ given under paragraph (1). "(b)(l) Each State attorney general shall ence of, or amount of, any price reduction in (3) The final judgment in any action have authority to bring an action, in the connection with the sale of any goods or brought under subsection (a)(l) shall be res name of the United States, in an appropri­ services. judicata as to any claim based upon an ate district court of the United States or in SANCTIONS RELATING TO UNFAIR CONSUMER unfair consumer practice under this Act by any State court of competent jurisdiction to PRACTICES any person on behalf of whom such action enforce the provisions of this section. SEc. 3. Ca) Any contract or agreement in was brought and who fails to give the notice "(2) In any case in which a State attorney commerce which provides for the purchase specified in paragraph (2) before the end of general brings an action under paragraph of goods or services and which results from the period specified in the notice given (1), the State attorney general shall give a transaction involving an unfair consumer under paragraph ( 1 ). notice of the commencement of such action practice by a supplier may be voided by the Cc) Any action brought under subsection to the United States by- affected consumer. ~ a)(l) may not be dismissed or compromised "(A) submitting a copy of the complaint Cb> Any person who induces a consumer to without the approval of the court. Notice of involved to the Attorney General of the enter into a contract or agreement pursuant any proposed dismissal or compromise shall United States (by registered mail or certi­ to or in furtherance of an unfair consumer be given in such manner as the court di­ fied mail> and to the United States attorney practice shall be liable to such consumer in rects. for the district in which such action is com­ an amount equal to 300 per centum of the (d) In any action brought under subsec­ menced; and damage or loss sustained, together with an tion Ca>0>- "CB) submitting a written disclosure of amount equal to the cost of any legal action (1) the amount of any attorney fee to the any evidence or information in his posses­ required (incuding a reasonable attorney prevailing plaintiff shall be determined by sion which is material to the effective pros­ fee). Such amount may be recovered in a the court; and ecution of such action, to such United May 15, 1980 EXTENSIONS OF REMARKS 11551 States attorney or by registered mail or cer­ evancy today. But from these early the Soviet invasion, and with the secu­ tified mail to the Attorney General. pioneers, we have seen the modern air­ rity threats to Iran and Pakistan. "<3> The Attorney General may enter line industry develop. We see the AFGHANISTAN'S STRATEGIC IMPORTANCE an appearance in any action brought under flight attendants today-of both sexes, paragraph (1) during the forty-five-day Although Afghanistan is a remote, ob­ and of all colors and ethnic back­ scure country which ranks among the poor­ period following the receipt of notice under ground, handling a mass of customers paragraph <2>. The State attorney general est nations in the world, its strategic loca­ involved may prosecute such action if the on flights which are frequently crowd­ tion endows it with a high degree of geopo­ Attorney General fails to enter such an ap­ ed and unfortunately uncomfortable litical importance. Afganistan has long been pearance before the end of such period, or for passengers and attendants alike. a major crossroads of Asia astride major notifies the court in writing during such They effectively and efficiently deal north-south and east-west land routes; its period that the Attorney General will not with such things as passengers who control of the Khyber and Bolan Passes has enter such an appearance. have had too much to drink, the man historically made it the gateway which links "CB> If the Attorney General enters an ap­ who has a sudden heart attack, or the Russia with the Indian subcontinent and pearance in an action in accordance with the Middle East with the Orient. As a subparagraph , then the action shall be young child that needs a bottle buffer state which was itself a manifesta­ prosecuted by or under the direction of the warmed before settling down to a long tion of the general equilibrium of regional Attorney General. The Attorney General flight. Regardless of what they are power, Afghanistan has served as a barom­ shall not be bound by any action taken by asked to do within reason, I have eter of the balance of power in the central the State attorney general involved, and found most of the flight attendants on Asian area. For this reason, more than a few may proceed in such action as if such action all aircraft of the American airline in­ observers were disturbed when it became a had been commenced by the Attorney Gen­ dustry to be almost universally courte­ Soviet satellite in 1978. eral. ous, helpful, and competent. I wonder In recent years, the Kremlin's incentives " If the Attorney General fails to pros­ if one of the early attendants on a for expanding its influence to the south ecute an action with due diligence during have been significantly enhanced by the the six-month period following the entry of DC-2 would have believed it possible growing importance of Middle Eastern, es­ an appearance by the Attorney General in that one of her successors would, in pecially Persian Gulf, oil in the Western accordance with subparagraph , or not too many years, be performing economic system. Seen from the vantage during such additional period as the court similar duties on a monstrous machine point of the Persian Gulf, the single most after notice may allow, then such action carrying over 400 passengers and important energy-surplus region in the may be .prosecuted by the State attorney flying nonstop across oceans and con­ world, the Soviet intervention in Afghani­ general involved in accordance with para­ stan constitutes one part of a giant pincer tinents at around 8 miles a minute. movement designed to encircle gulf oil re­ graph <1>. Fifty years is a short time in histo­ "(4) For purposes of this subsection, the serves. The Kremlin already has established term 'State attorney general' means the ry's span, but a very long time in a a military presence in Ethiopia and South chief legal officer of a State, or any other new industry such as aviation. And Yemen; now that the Iranians are no longer person authorized by State law to bring ac­ with the growth of aviation we have willing or able to underwrite Oman's secu­ tions under this subsection.". seen the growth of the airline flight rity, Sultan Qabus faces the growing danger (b) The table of sections for chapter 63 of attendants. Today, I wish to publicly that the Dhofar insurgency will flare up title 18, United States Code, is amended by recognize them for the contribution once more, this time with greater material adding at the end thereof the following new support from the So_viets' stalking horse on they make to our traveling public and, the Arabian Peninsula-South Yemen. item: in fact, to our society as a whole. To "1344. Unfair consumer practices.".• At the other end of the pincer, the Soviet those who flew in the early days and invasion of Afghanistan constitutes a flank­ are now retired and who have their ing movement which opens up the flat, per­ AVIATION PIONEERS own clubs to reminisce in, I wish them meable eastern border of Iran to potential the best of luck. And to those who are Soviet military pressures. More importantly, flying today, may I wish you God­ it extends Soviet influence to within 350 HON. GLENN M. ANDERSON speed and safe landings in the miles of the Arabian Sea. The Soviets have OF CALIFORNIA future.e occupied most important Afghan airbases, IN THE HOUSE OF REPRESENTATIVES fortified them with surface-to-air missile batteries and are equipping them with Thursday, May 15, 1980 THE SOVIET INVASION OF modern command and control facilities. The Soviet intervention has in effect moved e Mr. ANDERSON of California. Mr. AFGHANISTAN Soviet aircraft 500 miles closer to the vital Speaker, today, the 15th of May, is sealanes of communiation people of Israel have built a stable so­ In dollars ciety, based on justice and a respect Because Bellevue Hospital Center's psy­ for human rights. Statement of expenses: chiatric hospital no longer has enough Telephone ...... 26.64 Do ...... 26.62 nurses, staff members say troublesome pa­ Israel's strength and perseverence is Do ...... 26.68 tients must often be oversedated with Thor­ marvelous. Dr. Theodor Herzl told the azine to keep them from hurting themselves first Zionist Congress meeting in Basle Total...... 79.94 and others. 11554 EXTENSIONS OF REMARKS May 15, 1980 At Lincoln Hospital in the South Bronx, or more hospital beds. However, in a report Sinai; in Brooklyn, nearly 300 at Mai­ staff members say, patients with heart-mon­ released in February, the New York City monides Medical Center and nearly 300 at itoring equipment still attached to them are Health Systems Agency revised its estimate the Jewish Hospital and Medical Center. sometimes bumped out of overcrowded in­ saying that only 1,000 beds should be elimi~ In its February report citing a "crisis" at­ tensive-care units to make room for patients nated immediately. mosphere, the New York City Health Sys­ who are more critically ill. The group, a federally financed planning tems Agency said that many hospitals in the In the busy emergency room at St. Luke's­ agency, said the problem of excess beds was city were dangerously run down and esti­ Roosevelt Hospital Center, a nurse practi­ "relatively small." mated that at least $3 billion in capital im­ tioner, Karen McDonald, says she barters "Our findings do eliminate the myth that provements were required to make them with ambulance crews for scarce lifesaving reducing excess capacity is the panacea for comply with state safety regulations. equipment that the hospital is no longer the system," the report said. SOME HOSPITALS DOING WELL able to purchase on credit. "They'll have All told, 25 hospitals with a total of 4,000 something I need, and I'll have something beds in the city have been forced to close Thus far, the city's prestigious teaching they want," she said. "I'll trade anything I since 1976. Most were proprietary hospi­ hospitals, which have made Manhattan the can get my hands on if I think it will save a tals-small profit-making facilities-or pri­ world's medical capital, have not suffered life." vate voluntary ones that went bankrupt the worst effects of the budget cuts. After five years of growing financial pres­ caring for Medicaid patients and large num­ The Columbia-Presbyterian Medical sure on New York City's hospitals, staff bers of working poor and illegal aliens who Center, in Washington Heights, is using its physicians and nurses say that the quality could not afford Blue Cross and were not endowment to cover losses, a practice that of patient care has fallen dangerously low poor enough to qualify for Medicaid. its officials say is threatening its financial both at municipal and at many private vol­ The attrition has left the city with 88 hos­ stability. At Lenox Hill Hospital on East pitals and 37,000 beds. 77th Street, which has hardly any Medicaid untary hospitals. patients, the fiscal crisis is not evident. City and state hospital officials deny Throughout the city, hospital floors that were once brightly polished are losing their At Mount Sinai Hospital, at Fifth Avenue charges by some doctors that lives are being and lOOth Street, which is also in better fi- endangered. But they agree that problems sheen, and some are even dirty. When of staffing, basic supplies and even cleanli­ equipment breaks down, there is often no ness have brought on what a federally fi­ replacement. In many hospitals-in inten­ ~~~~!~l;;~!~~~~~ ~~!~~t~~~i~~~~~~~~ sive-care units, employee dining rooms, December, contending that they were un­ nanced report recently called "an atmos­ derstaffed and stretched to the breaking phere of crisis." The problems are worst in laundries, nursing stations and operating point. poor neighborhoods, where "triage," once a scrub-up rooms-morale is low, and tempers battlefield word, has become a part of the are short. In many hospitals, the cuts have primarily hospital lexicon. "Hospitals have gone bankrupt," said Dr. affected housekeeping and equipment. Jacoby of the state's Health Department. One Hospital in Brooklyn, for example, is "Hospitals in New York," said Dr. John pumping sludge to fire its boilers because it Eric Jacoby, assistant director of medical "Hospital administrations have been cor­ and professional affairs for the State De­ rupted into poor practices. Hospitals have does not have the cash on hand for C.O.D. cut back on maintenance and housekeeping oil deliveries. In another hospital cited by partment of Health, "no matter what their the hospital association, the operating size and no matter who is operating them, services. The phrase 'hospital clean' no longer has meaning in New York today." rooms ran out of large surgical bandages have o~e thing in common-financial con­ and had to use sanitary napkins instead. straints are visibly cutting into their ability "Basic components of care are neglected to maintain a consistent level of quality." or left undone entirely," he said, "because At St. Luke's, at Amsterdam Avenue and the reduced staff of nurses and other work­ 114th Street, one of the city's more highly The city's developing fiscal problems in regarded teaching hospitals, relatives and the early 1970's brought an end to the ers cannot perform all necessary tasks. If someone leaves, the job remains undone." friends of patients had to bring in bathroom easier days of the late 1960's, when Federal tissue recently when the hospital ran out of largess produced by the introduction of NATION'S ONLY MUNICIPAL SYSTEM it-the hospital did not have the cash to pay Medicaid and Medicare funds made every­ New York City's hospitals cannot be di­ for it and vendors would no longer deliver thing seem possible. Earlier, in 1966, a study there on credit. There are sometimes no dis­ of the municipal hospitals by The New York rectly compared to those elsewhere, because New York has the nation's only municipal posable diapers for nursery infants, so the Times had revealed serious problems, par­ nurses bring in their own. ticularly in charity-ward care, but the new hospital system-other cities rely either on Federal aid alleviated those problems for a private voluntary hospitals or a single city Rhodine Burgess, an assistant plant engi­ time. hospital. Even so, an official of the nation­ neer at St. Luke's, said two of his four boil­ wide association of hospitals echoed the ers needed repair work that the hospital Governor Carey began cutting back state­ concern of local hospital aides. "New York could not afford. administered Medicaid funds when he took City's problem is the worst example of a na­ Joanne Johnson, a senior social worker in office in 1975, saying that the "days of wine tionwide fiscal crisis," said the official, pediatrics, said there was not enough staff and roses" were over in New York. Those Sidney Lewine, director of the American to counsel families of children with terminal funds, along with Medicare, account for Hospital Association's Center for Urban illnesses. "Your morale goes first," she said. about 60 percent of the income of the pri­ Hospitals. "I can see what's needed, but I can't give it vate voluntary hospitals and nearly all the by myself." income of the city's municipal system. According to the Greater New York Hos­ At Bellevue, a nurse's aide said, slowly In 1978, Mayor Koch, inheriting a city in pital Association, which includes both vol­ untary and municipal hospitals as members, shaking her head: "I can't do for the pa­ fiscal crisis, began a program of cutting tients like I used to. The hospital is always back the municipal hospital system, which voluntary hospitals in the city lost $115 mil­ lion in 1977, $124 million in 1978 and an es­ running out of ammonia, and I can't get he regards as underutilized and inefficient. timated $150 million last year. The associ­ their rooms clean, and there's nobody to His most controversial proposals-closing ation also says that state Medicaid pay­ help me tum patients in their beds." Sydeham and Metropolitan Hospitals in ments are now $200 million in arrears cut­ Bellevue's nurses are often too harried to Harlem-have brought angry protests from respond to patient calls. Cutbacks in admin­ black and Hispanic leaders. But the Mayor ting off the flow of cash in many hospitals. All told, the private voluntary hospitals istrative and clerical staffs have resulted in says he is trying to make the best use of in­ long delays in clinics and at admission and creasingly limited resources. spend $3 billion a year, while the annual budget of the municipal system is $1.2 bil­ djscharge windows. Some state and city hospital officials say Vera James, head nurse in Bellevue's neu­ the fiscal retrenchment has cut waste and lion, nearly $700 million of it city tax-levy funds. rology service, said the number of her pa­ duplication, and they defend the cuts and tients had doubled in the last few years restraints. They say they know of no pa­ Dr. S. David Pomrinse, the hospital associ­ with no increase in staff. "On weekends,': tient who has died as a result of them. ation's president, said he did not believe she said, "we have aides changing dressings The Mayor says he is "obviously con­ that medical care had suffered appreciably. and suctioning patients." Elizabeth Eng, cerned." But he says his goal is "to deliver But he said the cuts meant "that the roof ·head nurse of the medical intensive care the best medical care at the least possible doesn't get repaired, supplies run out and unit, said, "Three-quarters of our patients cost." A spokesman for the Governor said cleaning is given short shrift." are unconscious, and things have to be done the State kept "humane considerations fore­ If the cuts and fiscal restraints continued, for them right away." In recent years, the most" and emphasized that hospital waste he said, hospitals will have difficulty at­ ratio of patients to nurses was two to one. hurt patients and taxpayers·alike. tracting top graduates of medical schools. Now, she said, it is often three or four to Union officials say they have lost thou­ one-"an intolerable ratio,'' she said. 25 HOSPITALS CLOSED SINCE 1976 sands of jobs in voluntary hospitals in the "Things get done, but the level of frustra­ Mr. Koch's proposal to close some hospf­ last four years. In Manhattan, they count tion at the end of a day is excruciating,'' she tals was partly based on an estimate that 400 lost at Montefiore Hospital and Medical said. "We never have time to spend with pa­ New York City had a costly excess of 2,500 Center in the Bronx and ioo at Mount tients, we never have any time for meetings May 15, 1980 EXTENSIONS OF REMARKS 11555 to see what we're doing, we have nurses who Bishop Francis J. Mugavero of the grams in the Compton Unified School are burning out." Diocese of Brooklyn who will celebrate District, summer youth employment, Linda Mccahill, a nursing supervisor at his 40th year in the priesthood this and gang violence prevention. Addi­ Bellevue's psychiatric hospital, said, that weekend. tionally, Dr. Smith has involved him­ she was critically understaffed. Some units with 40 patients, she added, often have no I know what a joyous occasion this is self with the development and growth duty nurses at night or on weekends, so for the bishop, and I am certain that it of Afro-American cultural studies many patients are routinely oversedated is equally as joyous for the people through various speaking engage­ with Thorazine "for their own safety and whom he serves. With an undying ments throughout greater Los Ange­ the safety of the unit." compassion for the poor and the les. Betty Kauffman, Bellevue's director of needy, the bishop has inspired many While I truly regret that my work in nursing, said the hospital had only two- t 'd th ld 1 th 1 the House of Representatives did not thirds of the nurses it needed. She said that programs 0 ai e e er Y, e ess part of the problem was an overall shortage fortunate, and those who have come permit me to attend Dr. Smith's testi­ of nurses in a city where municipal hospi- to our city from other countries, look­ monial dinner so that I might have tals were forced to pay them less. ing for understanding and support. honored him personally, I am sure Elsewhere, hospital staff and officials say Bishop Mugavero is rich in spirit and that the tribute bestowed upon him they fear that the cuts in services go beyond he is capable of sharing this spiritual was truly indicated by those present at patient comfort and jeopardize their recov- wealth with others. the dinner. I salute Dr. Ernest H. ery. I am sure that my colleagues from Smith for his truly excellent contribu­ Rafael Gomez, a diabetic patient at tions to the community and the 31st Harlem Hospital Center, said there were New York are familiar with the bishop never enough nurses and rarely enough and his fine reputation, and I know Congressional District of California.e aides. Turning his eyes toward an inconti- that all of my distinguished colleagues nent patient in the next bed, he lowered his appreciate the dedication and integri­ voice and said, "He has to lay in his excre- ty of such a man. Bishop Mugavero ment for hours sometimes because there's shows an understanding of all the RECONCEPTUALIZING ECONOM­ no one to clean him." people he serves, and a realistic ap- ICS AS A HUMAN SCIENCE BEYOND THE BREAKING POINT proach to religion. Too often practical- At Brooklyn Jewish, a student nurse, close ity is allowed to interfere with our HON. JOHN CONYERS, JR. to tears, said: "I never have five minutes to ,. spiritual lives, but this is a man who chat with patients, I don't ever know any of · incorporates practicality into religion. OF MICHIGAN them on my floor. Everyone's rude because A recent article in the New York IN THE HOUSE OF REPRESENTATIVES we. ar~ all stretched beyond the breaking .. Times referred to Bishop Mugavero as pomt. " t t' · t • • • A Thursday, May 15, 1980 A former administrator there said: "There a co1?8u~a e ,?P rm~ · res- is the dreadful feeling of being in a MASH urrect1on bishop .and mdeed, he has e Mr. CONYERS. Mr. Speaker, today operation. People simply are getting worn brought new vitality and strength to we are witnessing the unfolding of an down and there's no time for creativity or the people of the Diocese of Brooklyn. economic policy that attempts to put research-just survival." I am proud to be a part of Bishop out fires, but lacks any concept of pri­ The Co~ttee of Interns and Residents, Mugavero's congregation, and wish orities, balanced growth, long-range the orgaruz~t~on that represents ~ost .of the him a hearty congratulations on his planning, coordination across sectors, young phys1c1ans who work full trme m mu- . nicipal and voluntary hospitals, staged a 40th anmversary.e and the basic human purposes that an one-day walkout last year, contending that economy is supposed to serve. Policies the cuts were endangering patients. are made in the most outrageously ad hoc and haphazard fashion. The Dr. Jonathan House, the organization's TRIBUTE TO DR. ERNEST H. president and a resident in internal medi­ policy of decontrolling domestic oil cine at Harlem Hospital Center, said a lack SMITH prices fans inflation and undermines of equipment and support staff was having growth. The profits of the big oil com­ "devasting" effects on patients. "If someone HON. CHARLES H. WILSON panies occur at the expense of the misses a temperature," he said "they may crippling of the auto industry. High­ be missing the first stages of meningitis. OF CALIFORNIA Renal dialysis requires highly expert nurs­ IN THE HOUSE OF REPRESENTATIVES interests rates attract foreign inves­ tors, but bring housing construction to ing, but we don't. Thursday, May 15, 1980 "But it isn't just medical things," he said. a halt. Huge loans to silver speculators "I remember when there was this elderly e Mr. CHARLES H. WILSON of Cali­ such as the Hunt brothers are readily woman with pneumonia on my floor. It was fornia. Mr. Speaker, recently the approved by the Federal Reserve cold and we had run out of blankets-I'm greater south Los Angeles area had Board, while the Chrysler Corp., farm­ not kidding, out of blankets. the opportunity to pay tribute to a ers, homebuilders, and small business­ "Well, this man who was visiting her came man who has provided the area with men, whose enterprises are far more up to the nurse's station and asked for a central to production, go begging for blanket for her because she was cold. I told community service rarely seen in one him we didn't have one. He came back later lifetime. I am speaking of Dr. Ernest credit. The broader impacts and social and asked for one again and I told him we H. Smith. costs of economic policy are rarely didn't have any, not even one, that he'd Dr. Smith has unselfishly dedicated considered. have to bring one from home. By this time, his time and professional expertise to The economist, Hazel Henderson, is I'm getting angry, and the guy looks at me further the comprehensive sickle cell one of a growing number of forward­ as if I'm crazy-he couldn't believe that a education, screening, and counseling hospital could run out of blankets." looking young economists who under­ "You know something? He was right, we in the Compton, Enterprise, and Wil­ stand that the old economic rules no are crazy."e lowbrook communities within the 31st longer work, are increasingly damag­ Congressional District of California, ing as time goes on, and jeopardize the which I am proud to serve. human purposes they are supposed to TRIBUTE TO BISHOP FRANCIS J. As medical director for the Compton serve. Founder of the Princeton MUGAVERO Sickle Cell Education and Detection Center for Alternative Futures and Center, his efforts have already pro­ author of "Creating Alternative Fu­ HON. GERALDINE A. FERRARO foundly affected the welfare of hun­ tures," Hazel Henderson was recently OF NEW YORK dreds of people who will be forever in­ interviewed by Omni magazine, May, IN THE HOUSE OF REPRESENTATIVES debted. 1980, a publication that has won the Such accolade is not without docu­ reputation for tackling the increasing­ Thursday, May 15, 1980 mentation. A leader in the community ly tough problems that confront our e Ms. FERRARO. Mr. Speaker, I for over a decade, Dr. Smith has over­ society. I urge my colleagues to read would like to take this opportunity to seen such projects as the King-Drew the following Omni interview with express my respect and admiration for Headstart program, school health pro- Mrs. Henderson. 11556 EXTENSIONS OF REMARKS May 15, 1980 The interview follows: over a salt marsh-one of the most produc­ Henderson: Yes, I think it's quite typical tive ecosystems on the plant-for an airport, "If someone had put me in Economics 1, I of what we can expect. We shouldn't bail might never have fought my way out," · and meanwhile keep adding oil-based fertil­ out the institution and all the stockholders Hazel Henderson once said. And the world izer to hype the productivity of your farm­ investors, and managers who enjoyed th~ might never have gained one of its most land. ride up. They got their dividends and stock original thinkers in that "dismal science" Omni: What should we look for in new options; we don't have to underwrite their economics, particularly as it relates to sci­ technologies? losses. ence and public policy. Without benefit of Henderson: We should be developing lots We should subsidize the redeployment of formal education beyond high school, Hen­ of small, rather humble technologies that the workers, who are fairly blameless, into derson is recognized for her unconventional will give the system a lot more flexibility. renewable-resource sectors of the economy. views and illuminating ideas. Her appoint­ That's the trade-off we see in evolution: As far as I can see, it's more efficient both ments to several prestigious organizations Success comes from increasing adaptability socially and economically to support them include the congressional Office of Technol­ instead of being set in past adaptations. generously until they're redeployed, or until ogy Assessment . burdened by costly overhead. We'll see nomics, we've been hiding costs in the envi­ both. ronment or in the social system, as ill Omni editor Eric Rosen spoke with Hen­ health or as risks to the health of future derson; as in most conversations these days, Omni: How do these "human enzymes" communicate with each other? generations. Now those hidden costs are the first topic was energy. coming back to haunt us, and there's no Omni: For more than a decade you've · Henderson: By either/or logic, it's a para­ place to hide them anymore. been warning that we are coming to the end dox. The old dinosaur institutions have de­ Omni: Will paying those costs impoverish of the cheap-energy era. What kind of econ­ veloped the incredible high-technology com­ other sectors of the economy? omy and technology do we need for the era munication system, computer networks, Henderson: Yes, inasmuch as they are to come? data banks. And inside the dinosaurs are the past-due bills, no longer deferrable. The Henderson: We need to shift to a renew­ "enzymes," networking around obstacles first thing that companies tend to do in able-resource economy, which implies a and communicating laterally. It reminds me these cases is to go for the "add-on" tech­ shift from our single-minded concentration in some ways of a jungle-drum system, in nology-to build cooling towers when on physics and engineering to an emphasis some ways of the "committees of corre­ they're no longer allowed to heat up the on the biosciences and ecosciences. Our goal spondence" that preceded the American nearest river. For each such trade-off, it's should be to develop processes with greater Revolution. going to take a case-by-case decision be­ thermodynamic efficiency and to align The same technology that makes it possi­ tween starting from scratch with a new · them with long-term ecosystem efficiency. ble for a multinational corporation, for ex­ process and adding on to an existing proc­ We still have a lot to learn about that. ample, to sell its patent medicines in many ess. Omni: What do you mean by thermody­ countries makes it possible for consumer Omni: Should the costs be borne by the namic and ecosystem efficiency? groups to get in touch across national public or by the private sector? Henderson: Our current machines and boundaries and say, "Beware of this prod­ manufacturing processes grew in an energy­ uct; they may be about to dump it on you." Henderson: Inevitably both are going to inefficient way because we had cheap petro­ Omni: Can everyone be as adaptable as have to pay. There's tremendous resistance leum. Our electrical generating system, for the "human enzymes"? Isn't the stress of in this country to even quantifying social example, produce a lot of what we defined change going to be too much for a lot of costs, for example, the annual sixty billion as "waste heat." So we've built cooling people? dollar cost of alcohol and tobacco abuse. We towers to get rid of it. That's a thermody­ Henderson: No, I think most people have don't hire people to do it. But in Great Brit­ namic obscenity: spending extra energy and no particular stake in the old systems; the ain, for instance, where the taxpayer foots material to get rid of energy produced in real difficulty is for the dinosaur institu­ the whole bill through the National Health the wrong way. Now we have to develop co­ tions that are rigidified around old technol­ Service, many economists are hired to find generation schemes to make use of the low­ ogies and strategies of energy and material out who's causing what costs. pressure steam or hot water that we once use that can't be sustained. It's those sec­ Omni: What will those costs do to our na­ could afford to waste. tors, and the people employed there, who tional productivity? Ecosystem efficiency combines thermody­ feel the stress. · Henderson: We should get economists to namic analysis with bioscience. If you're Omni: Is the Chrysler "bail-out" an exam­ be much clearer when they throw the word seeking ecosystem efficiency, you don't pave ple of that? productivity around. Traditionally they've May 15, 1980 EXTENSIONS OF REMARKS 11557 defined it as labor productivity, per capita with all the time. We know that our activi­ those chemicalexchanges occurring in the productivity. The whole development of in­ ties visit certain costs on those people. If I atmosphere. dustrialism was to increase the individual do something to further my ends, my hus­ Omni: Will we be able to change our cost­ worker's productivity by increasing the band has to forgo something he might like benefit analyses accordingly? Can we in­ amount of capital investment and energy to do. clude those biological ideas you've spoken per worker. I think that in the Eighties we're going to about? But on the social side of the picture, many see more and more of what I call "the poli­ Henderson: We have to. Until a few years other workers were shaken out of the tics of reconceptualization." We're going to ago my big dream was to incorporate into system altogether, and their productivity have to peel back all the mystifications of economic theory all of these important new fell below zero. They were on the welfare technique, all the flurry of data, all of the ideas of bioproductivity and the real physi­ rolls, pushed onto the social-cost side of the baroque elaboration of subdisciplines-the cal measures of efficency from thermody­ system. toxicologists tracing various illnesses back namics. Take the concept of diminishing re­ If you equate productivity with individual to various substances, tracing the costs of x turns-an idea developed in early economics. workers' productivity and ignore the social dollars back to Y Corporation-and get Now that concept fiU:j very well with biologi­ costs, then it's no wonder that everyone in down to some eternal human questions that cal concepts of productivity where you see S Washington is saying, "We must increase all of us are very qualified to talk about. curves dealing with growth, maturity, and our productivity by adding more capital to Omni: That calls into question all the decline. Up to a certain point you could take · industrial processes." They've gone inappro­ merits ascribed to expertise and objectivity, a piece of land and add fertilizers to it and priately from microproductivity to macro­ doesn't it? increase its productivity, and then at some productivity across the whole system. Henderson: Look at the uses of expertise point, if you kept on adding that one addi­ Omni: The demand for increased produc­ in Washington today: the interest groups tional input, you would reach a level where tivity is often accompanied by insistence on fighting "information wars," hiring intellec­ additional increments wouldn't raise the deregulation. Are they connected? tual mercenaries and building up their com­ productivity of the land any further. And in Henderson: The real trade-off is between puter firepower. fact additional inputs over an optimum level technologies that create great social and en­ The question of objectivity cuts deeper. would begin decreasing the productivity. vironmental costs, and thus require regula­ We have a three-hundred-year tradition of Omni: Where are we on the S curve? tion to control their impact, and more har­ enormous success in manipulating the Henderson: We shouldn't take that highly monious technologies that don't require reg­ world, based on the premise that human aggregated view: that tlie whole system is ulation in the first place. Nuclear power re­ beings can abstract themselves from their going to hell and we're going off the curve. quires a massive federal bureaucracy for situation-a species embedded in an ecologi­ Instead, we should look for what is new, safety, policing, and waste storage. Local cal system, like all other species-long what's growing, and what has real potential. solar and wind power, alternatively, may in­ enough to map and manipulate the world. Those can go on a new S curve, but in a volve local zoning regulation, but there's no That will continue to be a successful completely different place. need for Washington to oversee them. method whenever you want to manipulate Omni: Will we have a multieconomic Again, you have to look ahead to foresee the forces of nature and make something phoenix rising from the ashes of Keynes the trade-offs. Deregulation of the airlines happen. And we still need to do an awful lot and his theories? lowered air fares, but what are the social of it-to step back and trace the thermody­ Henderson: Yes, I think so. The main costs? Small cities lost major-airline service namic efficiency of the technologies we use, body of traditional economic theory can and were left with idle facilities, while air­ and so on. But we can't let the success of help with quantifying all of our social costs. ports like Atlanta's became bottlenecks with that method hypnotize us into using it as a But it will finally bog down when the under­ overloaded traffic controls. There were total philosophy. It won't tell us what kind standing dawns that all economics was ever more accidents on small local carriers. Even of future we want. concerned with was the monetized sector. if you're flying on a trunk route, you're Omni: The Apollo photographs of the Economists were hypnotized by this abstrac­ likely to wind up in an overcrowded flying earth gave many people a strong sense of tion called an economy, while there-is really cattle car. All the new competition has also the global system, a realization that we are no such thing as an economy; there's a so­ overextended airlines financially. animals embedded in a finite ecological ciotechnical system embedded in an ecosys­ Omni: You make a strong case for looking system. Why hasn't that realization sunk tem. ahead at the consequences of social deci­ in? Omni: How will problems affecting the in­ sions. But isn't it possible that too much dustrial nations affect the Third World? caution can keep you from taking advantage Henderson: Because of the academic lag of an opportunity at the right time? all the intellectual investments that have to Henderson: The Third World has been Henderson: Of course. Just as the fusion­ be written off. People have to recycle them­ caught in the same debate between capital­ energy people are saying that we must have selves, which means letting go of old ism and Marxism that has occupied the more money for fusion right now or else the models: And many of them are trying to ex­ Northern Hemisphere over the last several energy won't be coming onstream in time, tract the last amount out of their intellectu­ decades. They have two very clear exam­ the solar-energy people are saying that if we al investments, their old textbooks, and so ples: . the apparent-almost hypnotic-suc­ don't push photovoltaic-cell development on before they finally amortize them and cesses of the West, and the Marxist way, right now, we won't get the benefits of that move on. which clearly points out the anomalies of the Western way of life. Most Third World technology in time. They're all lining up Moreover, we have a vastly overbuilt and and presenting their data. But the answers leaders now seem to be talking of a third overcapitalized educational plant in this type of approach, perhaps something like aren't in the data. You can't get social direc­ country. There are far more colleges than tions or moral prescriptions from the data. Sweden, which has a very ingenious mix of we can ever use, and the potential for using private enterprises and public controls. You can tell when you're reaching a his­ them in real-time education is great. We can torical watershed, because you find yourself They are looking to pick and choose the take obsolete disciplines that require com­ best from both worlds-to see where the going beyond the technical questions to plete restructing, such as economics, and right and wrong, good and bad. Why are we begin to replace them with the kind of skills rubber really hits the road-and create doing this? For whom? What are the impli­ that people need to manage lifestyle something that fits into their own cultures. cations for our children and our grandchil­ changes and personal growth. Omni: Could technology assessment help dren? For a long time we thought we could We have everything we need sitting there, us cross the barriers we've been talking push away the philosophical and moral waiting to be redesigned and rehabilitated. about? Turn everything around, so to speak, questions, or wrap them up in economic The question is, How fast can we create a and plant the seeds to let the flowers technique and mathematics. We thought debate all through the society, where there bloom? cost-benefit analysis could tell us that the is already an experiential understanding Henderson: I think that it has enormous greatest good for the greatest number that something new has to be done? So potential. I've been on the Advisory Council would be served by building a given nuclear­ many people are already far ahead of those of the Office of Technology Assessment power plant, for instance. committed to the old structures that it's like ever since it began six years ago. I saw that In a period like this one, however, all the the dinosaur again. The brain is the last to technology assessment use an integrated, in­ technological debates become politicized, learn what's happening. terdisciplinary approach, with economics and people become aware-my golly!-that Omni: What should we call the new era? only one part of a much larger patterning of the basic level of politics is knowledge itself: Henderson: It's the Solar Age. People are problems. There was tremendous potential how we define problems, what constitutes a already calling it that, but they don't realize for remapping the situation in such a way problem, what constitutes proof. It's very its full dimensions. Most think it means flat that we could come up with all kinds of in­ basic stuff. plate collectors on the roof; they have for­ novative policy alternatives. Today policy­ Omni: Are we too splintered a society to gotten that the sun is the only source of makers are stuck with using old maps to be able to get down to debate on that level? energy on this planet. And it's driving every­ define the "problems" in the same old way, Henderson: No, because those are the re­ thing, including the economy. You can't which means they are going to keep redou­ alities of moral choice that all of us deal even have a combustion process without bling their efforts to do the old thing that 11558 EXTENSIONS OF REMARKS May 15, 1980 already failed. The alternative is to put on a Omni: Will these people have less of a It's very unscientific to look at a problem different pair of disciplinary spectacles and sense of isolation from the people defining and then jump to a methodological conclu­ see a new pattern and reconceptualize the the problems? sion, or not even to think about the method problem-or even discover that it isn't the Henderson: Yes. You see what happens is that you're going to use. There is no justifi­ problem at all. the people from the traditional disciplines cation to using cost/benefit analysis merely the physicists and the engineers and the because that's the thing that you happen to The Office of Technology Assessment is be trained in. A good technology assessment one of the few governmental agencies where economists who normally have been in­ volved, have been isolated and have a sense examines real world problems case by case that questioning and the reconceptualizing and says, "First, there's the technological have been institutionalized. One of the ways of unreality of how these technological that I tried to open OTA's conceptual ap­ ideas really impact on human beings in real feasibility and first-order consequences of proach was to insist that persons and groups situations. going in this direction. Then there are the in society affected by various technological Omni: Would it be mainly because they're second-order problems when a technology choices-but not necessarily benefiting from not quantifying the things we've spoken of diffuses: What happens when it is used in them-be included as representatives on the like bioproductivity? an institutional framework of commercial­ advisory panels for such studies, along with Henderson: Right. Those old disciplines ization? What kind of problems does that persons possessing the more traditional are too specialized and do not include the create?" kinds of expertise. Yet this information on second- and third-order consequences. We You need to synthesize the answers to impacts requires a very real sort of exper­ had a terrible problem when OTA started in these questions, and whatever environmen­ tise; it is social feedback, or anticipatory that so many of the contractors who came tal, health, and safety impacts there may social "feed-forward." in were just putting old wine into new bot­ be, using four or five different models and This "early warning" creates a better defi­ tles. They would come in and swear on a methods. That's one reason why the adviso­ nition of the problem. I justified the inclu­ stack of Bibles that they knew how to make ry panel should incorporate people with all technology assessments. But when you kinds of viewpoints and biases. Some will sion of people who don't have orthodox de­ really unraveled it and you examined their have a physics bias; some an environmental grees, such as consumer and labor repre­ assumptions, you'd find that what they and some an economic or social perspective. sentatives and environmentalists. Their ex­ were talking about was technological and We've learned that there is no such thing as perience is vital to securing a definition of economic feasibility, which is very different. "objective" science or value-free technol­ the problems. That's not technology assessment at all. ogy.e