EDITOR'S TABLE OF COWMN

ulitzer Prize winning reporter He­ EDITOR'S COLUMN, .... "" .. , .. , .. , .... , .. , .. ,' , .. .. , .... , .. 2 drick Smith's recent book is enti­ P tled "The Power Game," and that PROFILES AND PERSPECTIVES: name fits comfortably with the book's sub­ A. COIIWrsation with HHrick Smidt .. • . .. , ...... , . • . 3 title: "How Washington Works." Power and Washington are often related, and A CEO'S VIEW OF THE BUDGET PROCESS: Smith's book describes the process in­ AmoHoughton • • • . • .•• • •••• • • • •••• •• •. ••• ••••.•••. •• •.•••• •• • • •• 7 volved in capturing and mainlaining politi­ cal power today_ EDIroRlALS: Platforms and Consensus, In an interview in this Forum, Smith GelUkr Gap and the Racial Di"ide ...... , .. . .. • ...... 8 says that the process is unfortunately be­ coming distorted. According to the former THE MEDICAL LIABILITY CRISIS: A. Time for Action: New York Times Washington bureau chief: Jill C. Greenwald •••••••••••••••• . •• .• ••••••••••••• . .•• . •• . •••••• 12 "One of our great problems in modem politics is lIlat there is a dichotomy be­ IS MOTHER EARTH HEADING FOR A GRAVEYARD ORBIT? tween campaigning and governing. " The Mariano Kurtz ... , . , ... , .. , ...... , .. , , ...... 14 result, Smith says, is that too much atten­ tion is placed on winning campaigns, and UP AGAINST THE WALL: Religion, PoIiJics and the 100 little emphasis is placed on the essen­ ESlDblisltme," Cltause: tials of governing, such as putting together Alfred W. Tale ...... , ...... , .. , .. •.... , ... 16 bipartisan solutions. The process involved in political de­ THE CHAIRMAN'S CORNER: cisionmaking is also the subject of fonner S&L's: "The LIl~ ofuwraging:" Coming Glass Works chief executive offi­ Jim Leach •••••••••••••••••••••••••••••••••••••••••• •• •••• 19 cer and chairman Amo Houghton's article. Houghton, now a member of Congress, examines the budgetary process and says 6 LIBRARY COURT .. , .. , .. , ...... , .. , .. , .. , .. , .. " .. , .. " .. .. 22 that, unlike business, government has no clear budget-making hierarchy. Houghton WASInNGTON NOTES AND QUOTES .. , , .. , , , , ...... , , .. , .... 23 also says that he is amazed by the conflict· ing data presented Congress and argues that more reliable information is needed. Ripon Forum editorial board member Bill Tate examines another issue that chal­ lenges the modem political arena, namely the relalionship between religion and poli­ tics. Tate claims that instead of thinking in tenns of a "wall" between church and state, we should envision a " line " running between religion and politics. According to Tate, a Union Theological Seminary graduate: "The [First Amendment's) es· tablishment clause does not prevent ap­ RIPON/orum peals to religious convictions. What it pre­ vents is the use of coercion in any form by Editor: William P. Mcknzie In the publication the Society hopes 10 Vista and other voIun~ . OvellUl. any side in political debates." .... uoc...,., Editor: DlIe E. CUrti5 provide a forum for frub idu.-i, well add S6. Please allow five weeks for Perhaps these articles, plus Jim Leach's .... "1$14111 Edilor: Mariann Kwtz ~lIed propoWs, and I spirit of addrcos changes. EdiloritU BosnI: crutive critidsm and inDOValion in the column on savings and loans and Mariann The Ripon Society Inc ., Mort E. Un. ~nce M. O'SuUiVlJI Republican Piny. Manuscripts I nd capher. pre5ident. is I RepubliclJl ~ Kurtz's report on the environment, will Alfred W. Tate Su:ven B. Kli!lSty photographs an: solicited, but do not ocan:h and policy organiu,lion who5e Gem E. Mqer G. il L. Slo<;um ~nl the view5 Qithe Society un· help the next administration understand members an: business, acadc:mic, and CIHU"IltuJI: R. I. Matson less 50 stated. £H.C" profenional men . nd women. It is "the power game" and determine its prior· .... " Dil'tcUW: Robey Graphics ities. SecQnd claM posuoge and fees paid al headquartered in Washington, D.C., Wasttingron. D.C. and additional mail · with National Associlte members THE RIPON FORUM USN 0035- - Bill McKenzie ing offoces . Postmaster: Send addrus Ihrov.f»out the United SI.I\($. The S0>­ 5526) i5 publi5hcd bi-moolhly in 1988 changes 10 Ripon Forum. 6 Library ciety i5 supported by clLapter dues. in­ by The Ripon Society. Contents an: COlIn, S.E., Washingron. D.C. 2(00). dividual contributions, and levenues copyrighted 1988 by the Ripon Society. from its publicationl; . Inc., 6 Ubraly Court, S.E .. Washing. Subs.:ription ralCli: $2.'5 per year, SI7 .SO ton. D.C. 20003. f... students. se",icemen. f'IIacc Corps.

2 Rlf'all FORUM, flKNEMBER 1988 PROFILES AND PERSPECTIVES A Conversation With HEDRICK SMITH

Ripon Forum: In your book, "The Power Game: How Washington Really Works," you talk repeatedly about the importance of a president's first 100 days. What should be the priorities for George "One cf our great Bush or Michael Dukakis during their first 100 days? probknliinAJnerican politics is that there is a Smith: Either person is going to have to deaJ with the econontic situation. both in diclwtomy between terms of the domestic budget and the na­ tionaJ debt. and with American compet­ campaigning and itiveness. The latter not only includes our governing. " ability to market abroad. but aJso to sus­ f'bo(o by George Tames tain our capacity to make the world's best supercomputers, to provide research and Hedrick Smith's career as a journalist development, and ultimately to regenerate spans six U.S. presidents, and in his new our industries. book "The Power Game: How Washington These issues are not susceptible to put together coalitions? Works" the former New York Times re­ quick fixes and will require a maximum porter details huw power is acquired and test of a president's capacity to build co­ Smith: The great tragedy is that the presi­ wielded in Washington. The author of the alitions. He must be capable of raUying dential campaign hasn't taught us very bestseller " The Russians," Smith served support from both parties. Partisan solu­ much about this important issue. As I 26 years as a New York Times correspon­ tions are not the answer. These are dura­ said in "The Power Game, " one of our dent before leaving that paper in 1988 to ble problems and will require grand great problems in American politics is that pursue film projects and commentary. A coaJitions. the likes of which we have only there is a dichotomy between campaign­ reg ular guest on •'Washing ton Week in Re­ seen rarely in our politicaJ history. ing and governing. Campaigns are more view," Smith now writes news analysesfor The reaJ foreign policy test is dependent on theatrical skills, image­ Universal Press Syndicate. In January whether or not a consensus can once again making and negative politics. not on 1989 the Public Broadcasting System will be assembled to sustain an intelligent but showing voters how a candidate can put air his film series " The Power Game," not excessive defense program while aJso together bipartisan coalitions. and in /989 Smith will film another docu­ moving effectively to more arms control To gauge the latter, you have to look mentary series. "Inside Gorbachev's agreements. In the Soviet leadership we at the pre-campaign records of both candi­ Russia. " have a partner who wants to move in this dates. First, Michael Dukakis clearly In this interview with Forum editor direction. Mikhail Gorbachev is not doing failed as a coaJition-maker during his first Bill McKenzie, Smith says that the current this out of goodwill towards the United term as governor of Massachusetts. He presidential election has not taught us States. but for the Soviets' self-interest. was cold, aJoof and aJmost arrogant in his much about either candidate's ability to That is much better than if the Soviets handling of the Legislature. Therefore, he put together coalitions. And it is coali­ were playing some kind of game for our was not terribly effective as governor and tions, he says, that are essential to solving sake. They see serious problems in their ended up being defeated. problems such as the budget deficit. In own domestic society and want to move All the reporting I've seen, however, addition, Smith discusses campaign re­ economic resources in this direction. seems to say that Dukakis took that lesson form, party building and deadlocked gov­ seriously during his four years out of of­ ernment, a pherwmenon that he says is Ripon Forum: How do you rate the two fice and was much more effective in deaJ­ unique to the post-World War II era. presidential candidates in their ability to ing with the Massachusetts Legislature

RiPON FORUM, NCNEMBER /988 3 during his second term. He built coali· it. We shouldn't have been so amazed at tions and passed legislation that was im­ Ronald Reagan's success in 1981. He was portant to Massachusetts. governor of California for two terms, Dukakis also has shown more links which is a big, tough political arena. He 10 the national Democratic Party than did "Another way to close the had a powerful Democratic legislative op­ Jimmy Caner, another governor to whom position and found ways to deal with it. Dukakis is often compared. Carter ran in­ gap between campaigning He also found ways to deal on a symbolic dependent of the national party apparatus and governing is for level. 1bere are lots of criticisms you may and his people came to town almost with a have about the Reagan presidency, but I chip on their shoulders. If Dukaltis wins, reporters to keep pressing don't think you can deny that he had the we'll have to see whether his people come skill, especially in his ftrst year, to work. down with that kind of attitude. the differences as they Congress as effectively as he worked the A third factor is that Dukakis was public. able to pick a vice presidential candidate report on candidJ1tes and Another way to close the gap be­ - Lloyd Bentsen - who came from a campaign managers. " tween campaigning and governing is for very different region and very different reporters to keep pressing the differences part of the party. He was able to maneu­ as they report on candidates and campaign ver that choice Wough the Democratic managers. Also, they should be discussed convention without it falling apart and during presidential debates. At the m0- without serious recriminations from Jesse ment, discussion of these qualities is not Jackson's wing. Bush is that he's been around, is well­ much of the national debate. One or my The down-side is that Massachusetts liked, and has friends in the Democratic purposes in writing " The Power Game" is a heavily one-party state and Michael Party, including Danny Rostenkowski . was to raise this problem. Dukakis did not have strong, effective Re­ That should give him a B-, but with a publican opposition . So we don' t know question mark larger than Dukakis·. Ripon Forum: I was struck by your com­ how well he deals across party lines. ment in " The Power Game" that major AJso, he is still an outsider to Washing­ Ripon Forum: To follow up on what you policy initiatives must originate in a cam­ ton, and he has a tendency to be techno­ describe in " The Power Game" as the paign. LBJ campaigned about the " War cratic and aloof like Jimmy Carter. So we difference between "stagecraft" and on Poverty" during the 1964 campaign don' t know whether under pressure he "statecraft," how do you close the huge and thus could cite support for his idea af­ will be a smooth politician. and ifhe is ef­ gaps between campaigning and ter the election. And the same thing can fectve in massaging egos, telling stories, governing? be said about Ronald Reagan in 1980 with roping people in . He's got some hand­ his talk about budget and tax cuts. But icaps. I'd give him a B, a solid B, bUI nOI Smith: It is very, very difficult. In recent what we have heard during much of this anA. years, the parties have attempted to bring year's election have been slick slogans Surprisingly, given how long George more officeholders into the conventions like "goodjobs at good wages" or rheto­ Bush has been a nationally-known politi­ ex-officio. This gives them a larger role. ric about the Pledge of Allegiance. Can cian, he has even less of a record as a po­ Another suggestion is to have a two-stage we really expect any major policy man­ liticalleader. The problem with having so convention. First, have a convention or dates to come out of the 1988 election? many appointed posts, as Bush has had, is major officeholders, national committee that you never have the buck stop on your people and challengers for important of· Sntith: Well perhaps during the closing desk. You never have to persuade other fices . Let that convention pick four or five politicians to buy your solutions, which in people who meet the criteria of the pros the end is what a president must do. and let them compete in the primaries for Of course, George Bush is well-liked the popular vote. This allows for input by in this city, by some Democrats as well as both the Washington poli tical community Republicans. He knows Washington, even and the nation. Maybe then people with if he is untested in the crucial elements of backgrounds like Howard Baker and Tom coalition-building. He 's done quite well Foley, who are not good stump-politicians ''The problem in this with the Republican Party by flying the but good governing-politicians , would be election, it seems to me, is Reagan banner SO high and by also keep­ more likely to run for the White House. ing moderates interested and hopeful. But Those two people are very, very good at thaJ far too much attention he hasn' t had to make the hard policy building coalitions in two different houses choices that often offend wings of his own and parties. has beenfocused on pany, let alone the other party, The real question mark is how well would he deal Ripon Forum: Can we really expect to wirming and far too little with Jim Wright and the next Senate ma­ combine in one person an understanding on effective governing ... jority leader, whom I expect to be a or symbols and a legislator's instinct? Democrat. What you can say about George Smith: You have to combine it; we need

4 RJPON FORUM, NOtIEMBER 1988 days of the campaign the candidates will craft? You say in your book that "Ronald mented than that. Leading is not that repair this problem. But by not spelling Reagan's people demonstrated that the simple. out more priorities, they hurt themselves. smoke-filled back rooms in modem It is absolutely crucial to the success of a American politics are not for cutting Ripon Forum: In your book you talk new president that he be able to go to deals . but for plotting strategy for TV. " about the problems associated with a di­ Congress and the country and say, "I have vided government and the need for a ma­ a mandate to do such-and-such." There jority party. But didn' t the Founding is absolutely no question in my mind that Fathers warn about the tyranny of major­ that has an impact on the public, the press ities? Doesn't it take two sides to play the and the Congress. Ronald Reagan and "power game?" Lyndon Johnson were able to do that; Jimmy Carter was not. "Governing requires Smitb: The interesting thing about our The problem in this election, it history is that for nearly 75 percent of our seems to me, is that far too much attention sitting down with other first 150 or 160 years, the same party con­ has been focused on winning and far too power brokers and power trolled Congress and the White House. little on effective governing. Eventually And there were enough checks and bal­ people have to rise up against that ten­ centers in Washington and ances built into the system to protect dency and say it is unacceptable. against an oveniding tyranny. Only once hammering out very orrwice was there any real problem. Ripon Forum: The television networks During the last 30-35 years, how­ have complained during this election that difficult decisions that ever, we have had divided government ­ their reporters, as well as print journalists, involve expensive and one party in the White House, the other have been held at bay from the candi­ dominating Congress. Now we have dead­ dates. They claim that the campaigns do painful tra£ie-qffS. " lock after deadlock: Social Security, aid this so they can promote their story line, to the contras, SOl, relations with the So­ what Reagan advance chief Bill Henke l vie[S. It has always taken time to resolve calls " H-P-S" for headline, photo, story. major issues, like the civil rights strug­ What if the networks stopped covering gles. But now all kinds of issues keep such events? Would this flush out the coming back again and again because of politicians? Smitb: It becomes much harder for presi­ the political d ivision and deadlock. dents to put together coalitions. Govern­ Smith: I would like to think that if the ing requires sitting down with other power Ripon Forum: So how do we get rid of networks decided not to give as much brokers and power centers in Washington deadlocked government? time to manufactured media events, the and hammering out very difficult deci­ politicians would gradually change. I sions that involve expensive and painful Smith: I don't think you can legislate or think it would have an impact. trade-offs. And then you must have the decree a solution. There are people who I've noticed that there are fewer capacity to build and hold support for believe that we should impose a party front-page spot stories in some news­ those decisions. ticket-tell people that when they cast papers on daily campaign developments, What we are doing in the electoral their ballots there is a single ticket for and more profiles, analytical stories and process is teaching our leaders that imag­ president, vice president, senator and attempts to get behind the news. The ery is more important than substance and member of Congress. If you are going to manufactured political events are put in­ that stagecraft is more essential than state­ vote Republican, then you vote for the en­ side the paper. craft. Campaigns are not a good training tire ticket. The problem with the networks is ground, and we are paying for that in our 1 don't think that this will happen that they have become gun shy about difficulty to develop effective governing. any time soon. It might even come close making analytical judgments. The public to the majority tyranny you mentioned. and some politicians have jumped on Ripon Forum: So is democracy, as the But all of us as voters have to look more them so hard. It takes courage and matu­ novelist Joseph Heller said recently, " full closely at the consequences of our ac­ rity to make analytical judgments. Maybe of illusions?" Do elections not really tions. If we vote a split ticket, then we such judgments are bener left to docu­ count? shouldn't get angry if the system gets tied mentaries or public television. The net­ up in knots. As voters, we create the situ­ works are driven by ratings, so they wan! Smith: Elections do count, but they leave ation in which nothing gets done. big audiences and visual wins out over us saddled with problems that they were I have been an independent voter for substance. That's the real problem. The supposed to solve. An election is sup­ several decades and have been proud of public has to reach the point where it posed to be a signal to leaders of what the that. But it seems to me that it is better to doesn't want to be manipulated. Then the electorate wants and in what directKlo it vote for one party and let it set one direc­ networks might change. wants to be taken. So I don't think. Heller tion for government. is right. The illusion is that if we just elect Ripon Forum: So what is the end result the right president, he'll take care of the Ripon Forum: But there are limits. You of stagecraft taking precedent over state- mess. But power is much more frag- can onl y go so far in one direction. The

RIPCW FORUM, /tKNEMBER /988 , Senate Republicans put the breaks to Re~ This issue should be of panicular In· or an upheaval among minority groups. agan's excesses between 1981 and 1986. teresl to a Ripon audience. As far as the Then we will have to pulliogether and otherwise the deficit might have become eye can see, there is going to be a Demo-­ confrontational politics will no longer be even worse. cratic House. What is needed, partly as an tolerable. It 's unfortunate but true that a antidote to divided government, is a floor crisis is sometimes needed to make our Smith: It is arguable that in the 1984 eJec ~ underneath the challengers in both par­ country respond . tion. voters did put a limit to Reagan's ex ~ ties. Challengers need subsidies, such as cesses. Many polls suggested that voters the mail frank and travel allowances, to liked Ronald Reagan as president. but dis· make them more competitive. We are also agreed with the specifics of his program. going to have to provide both sides more They voted for him, but also for a Demo-­ television air time so people can see both cratic congressman or senator. That is a candidates and genuinely have a choice. rare occurence, and the reason it hap" We also need political leaders who pened is that Reagan has been the most talk about divided govemmenl. It is crazy "Something radical needs ideological president in years. Neither that this is an unmentioned pan of our p0- Bush nor Dukakis qualify as ideologues. litical debate. Mike Dukakis may have an to be done to change the so this election may not have the same advantage because his pany is closer to a corrective. majority. But George Bush could alert Re­ enormous advantages qf publicans to the built·in congressional incumbency. " Democratic advantages. Maybe then we could start addressing the real problems in our political system.

Ripon Forum: You also talk in "The Power Game" about the need for more bi­ panisanship. But it seems to me that the Ripon Forum: You also write that "ef­ "During the last 30-35 atmosphere in Washington is so charged fective political parties are vital to govern· with the politics of confrontation, either in ing. " What is an effective political pany? years we have hnd divided the House or in the rhetoric of the Radical Right or on even on political talk shows Smith: An effective political party is one government. Now all kinds such as " The McLaughlin Group," that which matters enough to a candidate's qf issues keep coming we are not likely to get much election that when pany leaders tum to bipanisanship. him or her and say we need your support back again and again for our coherent program, that politician Smith: You are right; confrontational pol ~ sees the communal good as valuable because ofthe political itics does not accomplish very much. But enough to support this program. At the the evidence is overwhelming that if you moment our panies are so diverse and di­ division and deadlock." don't solve the problem, or solve it right, luted in cheir power, they find it very hard you will get it allover again . There is al­ to get sufficient loyalty for votes in ready talk of a bipartisan economic com­ Congress. mission, which is a good way to de­ Individual candidates in each pany politicize the issue. The budget issue, and run very independently. They build their even the trade deficit, might have been own organizations, raise their own money, dealt with sooner if Ronald Reagan had make their own pitch to voters on TV. been more willing to accept the compro­ And once they get elected. they pick and Ripoo Forum: If divided government is mises Congress wanted to offer. My choose when they want to follow the not conquered by the straight ticket, what hunch is that both Bush and Dukakis are pany's program and the pany's leaders. other solutions exist? closer to the mainstream than Reagan and That makes it very hard to run our system they will be more willing to make neces­ and govern effectivel y. I think we would Smith: Something radical needs to be sary compromises. benefit from stronger parties. done to change the enonnous advantages In the country, chere is a mistaken But let me emphasize that I am not a of incumbency, particularly in the House sense that we can afford the lUXUry of con­ reformer. I'm a reporter and believe it is of Representatives. In all but 30 or 40 dis· frontational politics and selfish behavior. very important for people to get non­ tricts, almost every incumbent can expect The pain of the underclass, for instance. partisan, straight stories. My aim then in to be reelected. They have great advan· is not palpable enough for middle class this interview, as well as in " The Power tages - staff, travel allowances, the mail America to accept. At some point, this or Game," is to get people to talk about frank , video feeds, name recognition and other problems are going to worsen and these problems, not to put too much em­ strong political action comminee support. cause people to act. It may take a sudden phasis on reform. That's not a cop-out, PACs give six. times as much money to in· jolt, like the Soviets"doing something un­ but rather to protect my credibility as a re­ cumbents as 10 challengers. expected, ch e economy taking a downturn porter. •

6 Rlp(XIJ FORUM. N(}IEMB£R 1988 A CEO'S VIEW OF 'mE BUDGET PROCESS

BY AMO HOUGIITON

I some point in your life, prefera­ Major difficulties arise because, in biyearly, you choose a career. contrast to business, government has no A Mine was business, and during overarching goal and no clear budget­ my 35 years in thai rather broadly defined making hierarchy. As mentioned earlier, in profession. I watched over the develop­ "Major difficulties arise business one tries to maximize profits. ment and execution of hundreds of corpo­ With that clear goal in mind, the budget of rate budgets. A corporate budget. to say because. in contrast to every operating and staff department is nothing of specific task.s to be accom­ business. government hill approved by management and ultimately plished. is the main process for controlling by the board of directors. growth during good economic times. More no overarching goal and In government, however, honorable importantly, in periods of economic diffi­ people can differ not just about how besllo culty, anyone who has lived through a no clear budget-mLIking ac hieve the goals of government but about downspin looks to disciplined budgeting the goals themselves. We often a rg ue as a way of cutting losses and literally hierarchy." about such basic issues as how much for preserving the life of a corporation. defense? what role for the government in Now it's no secret thai business and education or medical care or housing? and government are far, far different . The num­ what burden of taxation? The competition bers bottom line-or the "sine qua between the executive and legislative non "---of business is to make a prolil. and 1989. This is 72 percenl higher than branches , and between the House and Sen­ Revenues must exceed expendirures. Our the comparable figure for the 1970s. It is ate, and among all the diffuse power cen­ government's focus tends to be broader 520 percent higher than the 1960s deficit ters in each body just adds to the confu­ and requires a different kind of discipline burden. That's a lot. sion. And the numbers are so very large. as it provides for the common defense and • The trade deficil has grown 10 enonnous Some of this is inevitable. given the promotes the general welfare. These 0b­ proportions. While recently improved, nature of politics and our particular form of jectives drive the government, at times, to the trade deficit hovers at a point thai constitutional government. Coming from spend more than it takes in. would be unmanageable if the federal bus iness I am conscious of a big operating deficit were to widen. differencc--the general unwillingness 10 FEDERAL BUDGETING WOES • Financing the federal defic it each year make tough choices. To make it easier for While acknowledging these differ­ has caused the federal debt to grow from us to avoid difficult decisions, Congress ences, what I've seen of federal budgeting, 37 percent of GNP in 1971 to 53 percent and the executive branch tend to hide is­ during the two years I've been in Con­ in 1987. What happens if this continues sues and problems behind a cloud of in­ gress, still worries me. We seem to be at the same pace? complete and inconsistent data and draw oblivious to the central issues of survival, • From foreigners owing us $141 billion in from a large bag of legislative tricks. while arguing long and hard over the de­ 1981 we turned into the world's biggest tails. We play political games while 101ler­ debtor by the end of 1987, owing for­ INADEQUATE DATA ing on the edge of an authentic economic eigners about $400 billion. In business, if a management team is cliff. Consider the following: Any corporation with a similar track record good, it is ready to prescribe painful shon­ would have been liquidated, and its man­ tenn medicine for the long-tenn health of • The federal operating deficit is averaging agement put out to pasture. the company. This can involve the e limina­ aboul3.1 percent of GNP for fi scal 1988 Who is at fault-the administration, tion of unprofitable product lines or depart­ Congress, the electorate? The answer is ments. personnel cutbacks, asset or invest­ Amo Houghton is a first-term Republican that there is plenly of blame 10 go around. ment write-offs o r bankruptcy and congreSSfMn from New York and the for­ Why hasn' t correcli ve action been taken? reorganization . During the budget pro- mer chief executive officer of Corning The stockholders (Le .• the c itizens) Glass Works. haven' t yet spoken. Continued on page 10

RJPQtI FORUM. N(NEMBE/l t988 7 EDITORIALS

PLATFORMS, CONSENSUS AND picion of government solutions with the THE FUTURE realization that in many areas, the nation cries out for leadership. In planning for the 19908. the party establishment and conser­ t the GOP convention in New Or­ "The Democrats Jock aJ vative movement would do well to remem­ A leans. among all the buttons. bal­ ber that the 1980-'86 Senale majority was loons, pamphlets. books and assorted p0- visum or courage on the composed of a mix of Republican styles litical paraphernalia which seemed to issues is simply and views. Building toward that kind of shower down like confetti. we found one majority again wiU require steady, cau­ sheet of plain white paper which carried a pathetic. " tious and principled bridge-building by powerful message. The page listed dozens both sides. of words you will not find, for better or for worse, in the 1988 Democratic platfonn. Among them are: Tu, Taxes, Taxpayer, Taxation , Rev­ enuc, Revenues. George McGovern , WaJ­ HOW TO BATTLE THE "GENDER terMondale, Jimmy Caner. Recovery, Un­ icalJy refused a more meaningful contribu­ GAP" employment, Jobless, Job lessness. tion to the "Great American Dialogue." Interest Rates, Misery Index. Protection­ Why can't the Democrats back up their ism. Capitalism. Bureaucracy. Efficient, aggressive attack on the Reagan-Bush ad­ ere's one place to begin the bri dge­ Inefficient , Inefficiency. Liberal. Conser­ ministration with specific ideas of their H building. Iowan Beverly Hubble vative. Abortion, Adoption, Pornography. own? Why must they avoid crucial topics Tauke offers a persuasive argument for Enterprise Zones. Space Slation. like taxes, abortion, NAlU or capitalism? why Republicans deserve more credit for Space Shuttle. Intelligence. Libya, Gre­ We 'll leave the answer to yo u, but the policies that help women ac hieve higher nada, Cuba, Panama Canal, Poland, Can­ Democrats' lack of vision or courage on status and security, an argument that trans­ ada , Palestine. Palestinian, PLO. Ethio­ the issues this year is simply pathetic. lates into ideas for future policy. pia, Afghanistan , Japan, Korea , China. The GOP. we might add, has flirted In a recent Chicago 'Tribune editorial, Nicaragua, Contra, Freedom Fighter. with the other extreme of this platform Tauke asks. why did the Democrats fai l to NAlU, Anny, Navy, Air Force. problem. The Republican Party, of course, tackJe inadequate pension. child support President, Presidency, Veto. House of has put together a proud , effective con­ and tax laws when they controlled the Representatives, Senate. Church, Syna­ sensus, at the expense of nearly ignoring White House and both chambers of Con­ gogue. Worship. Prayer, God. its progressive heritage and leaders. For­ gress from 1977 to 1981? Younger and It 's lempting to draw specific conclu­ tunately, Ripon Republicans are not a older women now have greater pension sions from this list of omitted phrases and dying breed. The GOP '88 platform in­ ri ghts due 10 refonns pushed by Senators ideas; to do so would ultimately sound like cludes acceptable wording on progressive Robert Dole (R-Kan.) and Robert Pac k­ questioning the Democrats' patriotism. concerns like the disabled, the environ­ wood (R-Ore.) in 1984 and '86. Colorado But whether the Democrats' aim was to ment, education and AIDS . Still , aIJ in all , Senator William Armstrong authored leg­ avoid the image of special interest pander­ these were meager, hard-won achieve­ islation which strengthens the child sup­ ing that has crippled them since 1968; or to ments. port payments system, and Republicans paper over raging debates between the To keep the party effective beyond sponsored tax reforms that maintained or pragmatists who wanted a win and the Reagan. conservatives should build upon enhanced tax credits for child care. ardent liberals to whom principle is most the rapprochement achieved this year with Even Reagan's policies have slashed important; or to produce a document the moderates and progressives as all cam­ inflation and indexed sharply lower tax average American could read at the groc­ paigned together for the election of George rates. changes which deliver the greatest ery checkout-the Democrats have specif- Bush. We must continue to blend our sus- benefit to low-income workers (millions of

8 RlPCN FORUM. NOIEMBER J988 ------

whom are women supponing a family) . AND WHAT ABOUT THE through the demon of Democratic pater­ Why, then . does the GOP banle a "RACIAL DIVIDE"? nalism that saps our will. .. . This re­ " gender gap" in the polls1 According to quires an attitude change and, frankly, it is Tauke, "Rare indeed is the Republican the RepUblican Party that embodies it. .. leader who has mastered the 'language of espite several decades of progress, Black Americans are justifiably re­ the heart' necessary to impress crucial D perhaps the most disturbing trend in luctant to join the GOP bandwagon. Be­ women' s victories on the public conscious­ modem society is the continued, over­ fore the Great Society, both parties largely ness." Republican men (and after all, whelming polarization among Americans treated the black community with benign most politicians are men) suffer from the by race. neglect. Since 1964, the Republican Party handicap of being, as S.1. Hayakawa de­ Even a marginal improvement in increasingly welcomed the support of fined it , the guys who act like they own the black support for the GOP, less than 10 those who opposed all proposals to assist place. Unsurprising, then , that many percent in the 1980s, could be the margin or empower poor blacks as reverse dis­ women are uncomfortable with politicians that elects presidents. governors and mem­ crimination. Much of the Reagan program who remind them of their boss, or worse, bers of Congress. A stronger effort to com­ was a frontal attack upon, not reform or as the Democrats have cruell y joked, their municate GOP leadership on the concerns replaceme nt of, those programs poor first husband. of black Americans could strengthen the blacks had come to rely upon. There is another reason why women party's image (no Republican can be com­ Even in New Orleans, where symbols distrust the Republicans.---the GOP's mes­ fortable with the labels most blacks would of outreach to blacks were pervasive, two sianic crusade to rescind or restrict the affix to us). major opportunities were missed. First was modem woman 's reproductive choices. Ironically. conditions were ripe this the failure of party leaders to reform party Sadly, abortion and birth control have be· year for a major Republican initiative to rules that inhibit the selection of black del­ come heated, litmus-test issues among Re­ black voters. Courling the so-called egates in states with large black popula­ publicans, even as the overwhelming ma­ .. Reagan Democ rats" through mid­ tions. Second was George Bush's failure to jority of women and men support the legal October, Governor Dukakis did not sched­ choose a running mate who has spoken right of a woman to make these choices ule a single campaign event in a black forcefully on the need for more outreach to freely, answerable only to her own con­ neighborhood; the fuming mayor of New­ minorities and working class Americans: a science. A less threatening platfonn on ark, New Jersey described the Jackson and Tom Kean , Jac k Kemp or Robert Dole . reproductive choice, including at least Dukakis forces as " together, yet As these examples indicate, the GOP greater sex education for minors, contra­ does include many who believe in greater ceptive assistance for developing nations opportunities for blac ks; George Bush who want it, and the option of abortion in himself supported fair housing laws as a cases of rape . incest or an endangered southern congressman in the mid-60s. In mother, is one logical place to begin repair­ New Orleans, Jack Kemp suggested that if ing the gender gap. the GOP does its job right, one-quarter of By highlighting Republican men's the 1992 delegates should be black, His­ awkwardness with women's issues , at "Perhilps the most panic, or Asian Americans. Ripon Repub­ least Tauke has pointed to a way around the licans think it can and should be done. biner abortion dispute. For slarters, we disturbing trend in There are many ways the GOP can should all remember how important eco­ respond to the concerns of black Ameri­ nomic gains are to women, as well as men , modem society is the cans: maintaining economic growth and and the numerous ways women's eco­ continued, overwhelming low inftation; keeping the pressure on for nomic status lags behind that of men. Fur­ greate r educational access and ac hieve­ ther, phrases like "a kinder, gentler Amer­ polarization ofAmericans ment; appointing officials who will be ica" are important. look.ing to strengthen, not weaken, the But follow-through with solid ideas among race. " ri ghts of minorities; ensuring the access of on the full range of social and economic minorities to all levels of decision-making, issues is better. In the next four years, you including recruitme nt and support of black can expect a lot of talk about those other candidates; using the tax code to promote "wom e n 's iss ue s :" gove rnmc nt ­ urban development in "enterprise zones," subsidized and -regulated day care; man­ building local efforts to deal with literacy dated health insurance; and temporary job and self-esteem, job-training and child security for people nunuring a newborn or separate"-a phrase that evokes the old care; turning public housing over to resi­ seriously-ill family member. Many Repub­ racist doctrine of " separate but equal." dent control. lican women leaders are offering solutions At a deeper level, public opinion polls These are not ideas that depend on that don't rely on an ever-expanding role show that many blacks do not agree with bigger government, special interest group for government; as a rule , the men should Jackson's populist, left-wing views. In support . or left-wing social theories. They listen. The GOP needs both the right words September, black columnist Courtland go right to the heart of the Republican and ideas to enhance women's choices, Milloy bluntly declared, " The time has Party's commitment to freedom, growth, security, and access in a changing society. come for black people to drive a stake and the individual. •

RJPQ./ FORUM . N(NEMBER 1988 9 Budget Process Continued from page 7 cess, every department in a company is twin uade and budget deficits without a to grips with an additional $38 billion of usually required to propose cost reductions sharp hike in interest rates. Other econo­ deficit reductions. or program cuts. Good management is mists simply foresee a slow decline in fu­ The economy has, in fact, turned out ready to insist on this because, in most ture living standards, caused in part by the to be stronger than most of us expected in cases, the company's survival is at stake. budget deficit's erosion of national savings February. But it is worth remembering that The occasional government bailout of a and investment. when the Office of Management and Bud­ Lockheed or a Chrysler is the exception. Barring outright catastrophe. such get came in with growth and interest rate The rule is that uncompetitive or poorly­ ambiguity in the economic outlook under­ assumptions that were more optimistic managed companies go OUI of business or mines any strong incentive 10 prescribe the than those in 90 percent of private-sector are swallowed up in hostile takeovers. bad-tasting budgetary medicine that many In government, it is all too easy to put of us sense is needed for longer-tenn eco­ off tough decisions. Businesses cannot nomic he3.1th. What happens then is that print money. Economic mismanagement we all find it easier to protect our favored may cause adepression, but it is unlikely to pieces in the deficit puzzle: defense. old threaten the nation's survival or the reelec­ and new entitlements. popular domestic tion of politicians who caused it. So in discretionary spending, even tax rates. Af­ addition to whatever comfort this past re­ ter giving birth to the Gramm-Rudman­ •'The government has silience has provided. it is getting difficult Hollings law to protect us from ourselves, to say what will happen with the economy Congress now has slipped its targets and over 300 incompatible two months from now, let alone 12 or 18 will slip them again-mark my words. months by the end of the next fiscal year. Deficit reduction is painful. Only because accounting systems of last October's market crash did we achieve as much deficit reduction in fiscal producing incomplete and 1988 and 1989 as we actually did. The inconsistent information . " administration will not lead . Congress cannot lead. Meanwhile, back at the ranch, the electorate does not have enougb infor­ mation to easily understand the serious­ ness of our budgetary and economic situa­ "If we are to rruJke tion. in a well-run company, it is easier to forecasts. Congress dismissed its own bud­ progress on eliminating address economic and business problems get office to embrace OMB's economic the budget deficit, then because management has access to the assumptions. Why sweat it? Faced with a necessary infonnation. A company's bud­ choice between OMB and Congressional someone-preferably the get is based on absolutely the best eco­ Budget Office economic assumptions, nomic data and assumptions available, no Congress was under great pressure to president-is going to matter how distressing their implications. adopt the most favorable because it freed have to lead. And we also The accounting system will provide com­ Congress from having to take a difficult plete. consistent infonnation to all decision stand. And this has not been the first time. need better economic, makers on a timely enougb basis to be Congress has a long record of this . For useful for managerial decisions. When it fiscal years 1980 througb 1987. overly opti­ accounting and financial comes time to show results for the quarter mistic economic assumptions tbat Con­ or the year. the data will be presented in gress used for its first budget resolutions data. " accordance with generally accepted ac­ added an average of $23 biUion to each counting principles and in a way that fairly year's deficit, amounting to $183 billion represents the financial position of the for the period. company. Companies that violate account­ ing conventions or pull financial tricks can count on being discovered by financial an­ SOLUTIONS A few economists say that we have alysts and having the price of their stock And the list goes on and on and on. turned the "budgetdeficit" comer and that take a beating. The government, incidentally. has over economic growth will close the rest of the in government. " fed speak" and con­ three bundred incompatible accounting gap. But most of us have at least a vague fusion are so commonplace it is no trick to systems producing incomplete and incon­ sense that the deficit and OUI economic hide the size of the problem. The main sistent infonnation. Also, the failure to use problems are larger than that. It is difficult, reason it was so easy to pass a FY'89 accrual accounting- which we all use in however. to measure how close we are to budget that (barely) meets the require­ business-means, among other things. the edge of the economic chasm or how ments of Gramm-Rudman-Hollings was that the government's books show no pm­ deep that chasm is. Some economists pre­ the tailor-made use of optimistic economic vision for bad loans, bankrupt financial dict that foreigners may soon stage a "dol­ assumptions. thereby saving the adminis­ institutions. retirement or many other lia­ lar strike." and refuse to go on funding our tration and Congress from baving to come bilities staring you in the eye. When the

/0 RlPCW FORUM. NOIEMBER 1988 ------

bill comes due, there we are-horrified, surprised. Congress has used un­ businesslike, normally unacceptable tricks to get around the provisions of Gramm­ Rudman-Hollings and last year's budget The Ripon Society summit agreement. For example, it moved a military payday from September 30th to offers October 1st to "save" $2.5 billion in fiscal 1988; it caUed in past years for asset sales to meet Gramm-Rudman limits on the gov­ ernment's operating deficit. It also defined discretionary spending as mandatory just A NEWER WORLD: to meet budget summit limits on the for­ THE PROGRESSIVE REPUBLICAN VISION OF AMERICA mer. One wit has noted that the last move created a new category-"mandatory dis­ cretionary" spending. A company that tried such tricks WQuld find its stock price rapidly heading SQuth, and its officers sub­ EDITED BY REP. JAMES LEACH ject to legal action. AND W ILLI AM P. McKENZIE

Written by Members o/Congress , Ambassadors, Cabinet Members, Ripon Forum Editors arid Others.

detach and moil with payment "If a management team is good, it is ready to prescribe painful short­ term medicine fat the Yes, please send me ___ copies oj A Newer World at $16 .95 each.

long-term health of the Nrume; ______company." Address: ______

It may be naive, bUi if we are going to amount enclosed $, ______make progress on eliminating the budget deficit, it seems to me that two things are necessary. First. someone-preferably the Make checks payable to: president- is going to have to take the lead. Tough financiaJ decisions must come from the top. The rest of us---Congress and The Ripon Society the electorate-are just going to have to 6 Library Court limit ourselves to constructi ve contribu­ tions and be willing to accept some sacri­ Washington, DC 20003 fices, as long as they are fairly baJanced. Second, I don't think it 's too much to ask This book proposes sQlutions for leday's problems to begin demanding the best economic, And a guide for tomorrow. accounting and financiaJ data that we can get hold of. Our decisions should be based accordingly. Doing otherwise would merely postpone the day to get our bud­ getary house in order, which is something no good company would do. •

R/PC»I FORUM. NQ,IEM8ER 1988 J1 IE EM EDICAL LIABILrry CRISIS: A Time for Action

BY JIlLC. GREENWALD

OSt members of the medical January 1984toMay 1987, only 12 licenses profession dedicate their Ji ves were revoked. M to combating and conquering Groups like ATLA complain that the the ills of man . But today's medical practi­ so-called "crisis" is, in part, manufac­ tioners are plagued by an ill they cannot "There is no denying thal tured by the insurance industry's mis­ cure---the crisis of medical liability. management and underpricing. Some trial Today's physicians are embroiled in a mfllpractice exists. But lawyers argue that insurers exaggerate vicious circle of action , blame and reaction their underwriting losses by not including which has led to increases in insurance the recent claim explosion in vestment income when determining premiums, claim frequency, award sever­ does not signify a their profitability. Subsequently, insurers ity, doctor's fees, defensive medicine. pa­ try to justify charging excessive premiums tient expectation and the percentage of corresponding increase in by publicizing their losses. doctors leaving their specialties or prac­ Insurance companies explain that tices altogether. negligence. " they decreased premiums to attract invest­ Patients blame doctors for imperfect ment income when interest rates were as results. Doctors blame tort systems and high as 20 percent fi ve years ago. But greedy patients and lawyers. Lawyers when interest rates tumbled and returns on blame doctors for medical negligence and investments were low, the industry was insurance companies for charging pre­ forced to drop policies and raise prices to miums that do not adequately reflect their system, groups such as the American As­ recoup their losses. Trial lawyers assert risk and interest earned on reserves. The sociation of Trial Lawyers argue that the that insurers have gone beyond this and are insurance industry blames the crisis on the increasing frequency and severity of now justifying exorbitant premiums by unpredictable claim frequency and claims is the result of medical negligence. fal sely claiming to be operating at a loss. severity. ATLA suggests that malpractice inci­ Despite ATLA 's contentions, the in­ dences exceed the number of plaintiffs surance industry 'S investment income is THE CRISIS compensated and that most negligent ac­ not sufficient to counter its losses. A Best's Regardless of which way the fingers tions are not reported so the .'lCtual cases of Insurance Management Report concluded point, the statistics speak for themselves. negligence are even greater. ATLA also that "medical malpractice is reaching a Since the late 1970s, premiums, suits and suggests that a handful of incompetent point of no return in tenns of producing awards have increased at alarming rates. physicians account for most of the investment income from loss reserves that Between 1980 and 1985 frequency of problem. exceed the underwriting loss." According claims increased more than 300 percent According to the executive vice­ to a recent Best's report, dated September and their severity increased 90.5 percent president and counsel to the North Caro­ 15 , 1986, premium income for the total from 1981-1985. In 1984 one out of every lina Academy of Trial Lawyers, David industry increased 45.4 percent from 6.25 doctors was sued compared to one out Blackwell . only 675 of Florida's 22,000 1984-1985. while the loss ratio climbed ten of every 33.33 in 1978. doctors paid two or more malpractice points from 110 .7 to 120.7. Some critics, however, most notably claims over the last decade. But those 675 Also contrary to ATLA's assertions , trial lawyers, still deny that a crisis exists. accounted for 48 percent of all malpractice the real problem is not medical negligence While doctors blame a flawed Iitigational awards in the state. but the movement toward no-fault liability Such numbers prompt another ATLA where doctors are liable even in the ab­ complaint: state di sciplinary procedures sence of wrongdoing. Judges are holding are inadequate. Blackwell in particular be­ that anyone who suffers harm should be Jill C. Greenwald is a law student at Duke lieves that medical boards have failed to entitled to damages, regardless of fault . University and a recipienl of a Mark O. adequately discipline doctors. Of the 100 The surge in claims and rewards does not Hatfield scholarship. disciplinary actions in North Carolina from mean that malpractice is rampant, but that

12 RlPCW FORUM , NCNEMBER 1988 it is easier to award compensation without recently stopped practicing. Echoing other gency room, he was turned away. The am­ proving fault. doctors, he said: " I decided that at age 64 I bulance had to travel another 35 minutes to did not wish to expose my personal assets get him to the only hospital in Dade RESULTS OF RECENT TRENDS and life savings to a mishap that would County accepting trauma victims. Former Assistant Auomey General wipe me out. " Many doctors don 't want to accept Richard K. Willard said that while tort law the risk of malpractice suits for performing was a predictable set of legal rules 20 ye~ emergency room surgery. Since July I, ago under which losses were transferred 1987 , when the largest insurer of Florida from innocent plaintiffs to negligent de­ doctors raised its rate 43 percent in Dade fendants, now negligence has been eroded and Broward Counties, more than 1,000 as a standard. According to one Washing­ specialists have refused to work in the ton D.C. obstetrician, " Malpractice used emergency rooms. (Most of the region's to mean negligence or error. Now it simply "Clearly,fault-based hospitals have shut their doors to emer­ means a bad result. If a child is born with a gency patients.) In Broward County, only withered arm , all the lawyer must do is get liability must be three of the 17 emergency rooms are taking that child before a jury and he'll win an reinstituted. Defendants patients. A Florida paramedic said, " I award . The jury may even understand that don 't really know who's to blame, but if the doctor is not to blame and see the whole should only pay claims this crisis doesn't end soon, it's going to case a simply a withdrawal from a vast start killing people ... fund designed to compensate victims. " for which they are at fault There is no denying that malpractice Subsequently, a large portion of and only to the degree to exists . But the recent claim explosion does awards are subjective and based on the not signify a corresponding increase in emotions of the jury. Law professor Jeffery which they are at fault." negligence. Most malpractice claims do O'Connell described a lay jury as " apt to not involve negligence. Insurance industry be inftuenced more by its subjecti ve and statistics indicate that the majority of emotional reaction to the injured patient's claims are closed without any indemnity plight than by the appropriateness of the payment. defendant's conduct. " Some plaintiffs The increasing frequency and sever­ therefore may not receive compensation ity of claims also does not prove that physi­ while others receive an award far exceed­ Such a concern has been resounded cians are less competent, onl y that their ing their actual loss. even louder since insurance companies practices are inherently riskier. The tech­ Jury awards in the 1980s have sky­ have reduced their coverage under high nological advances in the medical fi eld rocketed forcing insurers to increase pre­ risk of litigation. In 1985, limits of $100 coupled with the increasing litigiousness miums. In 1975, the average award was million were available but by the end of of our societ y, result in tort suits from $220,0 18 and only three awards were 1985 coverage above $10-20 million was which even the best physicians are not greater than $1 million. Jury Verdict Re­ difficult to obtain and prohibitive ly immune. search, Inc. has compiled 1986 statistics expensive. In an attempt to combat this crisis through October and already the average Only one or two insurers write medi­ some states enacted tort reform s in the mid award has doubled to $2,056,525. cal liability policies in each state as a result '70s which included meas ures such as cap­ Because insurers cannot predict with of the medical malpractice crisis of the ping verdicts, eliminating specific dollar any confidence the actions of sympathetic 1970s. The S1. Paul Fire and Marine Insur­ requests by plaintiffs and authori zing peri­ juries or the frequency and severity of ance Company, the largest national pro­ odic payments . A study by Patricia M. claims, they are forced to increase their vider of medical malpractice insurance, Danzon and Lee A. Lillard concluded that premiums. For higWy-specialized physi­ has imposed a moratorium on new poli­ such actions reduced average verdicts by cians, these premiums represent about cies. In Rorida, more than 8,000 physi­ 30 percent , the average settlement by 25 one-third of their gross incomes. This ex­ cians were notified by St. Paul and ClGNA percent and the portion of cases dropped orbitant burden, coupled with decreasing that their insurance would not be renewed was raised by five percent. limits of coverage, has forced many doc­ as of July 1. 1987. Although the reforms of the 1970s tors to alter their practices or abandon them had an impact, not enough states enacted completely. A 1985 survey showed that 32 DECLINE IN MEDICAL CARE enough of the refonns. As a result, today 's percent of obstetricians in California re­ Virginia also faces a severe threat to medical liability crisis does not appear to stricted their number of deliveries, and its physician supply. The company that be abating. Obviously, new reforms are more than 46 percent reduced their high­ insures approximately 16 percent of Vir­ needed as is a refocusing on our system's risk caseload. ginia's physicians stopped insuring those primary goal: access to affordable, high According to a 1984 study, 38 percent practicing in groups of less than 10. Subse­ quality medical care. of surgeons, including over 50 percent of quently, patients are faced with reduced orthopedic surgeons, refu sed to accept access and availability to quality medical REFORMS more cases for fear of potential malpractice care. While the goal of our civil justice suits. A New York obstetrician who suc­ When a six-year-old boy in Florida cessfu ll y defended four malpractice suits was hit by a car and rushed to the emer- COfl/ jnu~d on page 21

RlPCJII FORUM. NOVEMBER J98IJ 11 IS MOfHER EARTH HEADING FOR A GRAVEYARD ORBIT?

BY MARIANN KURrZ

President, lhis Mis· lives, not the least of which is enforcement "Mr. is of zero tolerance for polluters. Bush, who sian Control, do you read?" has declared himself an environmenta1ist, " Mission Control, this the president, promises to bring a new "conservation go ahead ." "In a clear break with ethic" to the White House. The League of "Mr. President, we are reading a Conservation Voters , however, is not so Code-Red warning on Mother Earth's eo­ the current optimistic. ~urin g the primary elections, vironmental protection shields. Repeat. administration, Vice the League gave Bush a " 0 +" for his We are reading a code-Red warning on record on the environment and said that the Mother Earth's environmental protection President Bush Iws vice president " wears ideological shields. blinders. " "Damage Control reports complete proposed a variety of Along with other critics, the League contamination of Mother Earth. Boost se­ environmental initiatives, pointed to Bush's record with the task quence for Graveyard Orbit has begun." force which represented a preference for Just over one month ago, a nuclear not the least of which is limited government control of polluters. reactor aboard a failing Soviet satellite was As an example, aNew York Times editorial fired into the Space Age scientists' version enforcement of zero noted that Bush opposed standards for auto of a trash can . The radioactive cargo was efficiency and the removal of lead from boosted into a "graveyard" orbit before tolerance for polluters. " gasoline. Only after considerable opposi­ the crippled space craft plunged back into tion from the EPA and health specialists the abnosphere. This standard disposal OT­ did Bush and the task force relent on their bit is home to various abandoned payloads proposal to relax or rescind the lead phase­ which would prove environmentally harm­ out program. ful if allowed to return to Earth. Luckily. To combat such negative reviews, the scientists have designed autopilot maneu­ Bush camp has promoted their candidate's vers to send tainted materials to this final promised an administration of e nviron­ environmenta1 record from his days as a resting place if their ships become dis­ mental leadership. Texas congressman. Fortunate for the en­ abled, thus posing an environmental vironment and unfortunate for political threat. comparisons, Bush's big-ticket agenda Lucky, too, the good ship Earth does nder the hand of Preside nt Ronald items included the preservation of Big not have the same autopilot system. Other­ U Reagan, dangers of the greenhouse Thicket National Park and the halting of wise 1988 might have been the year that effect and results of global wanning have cbannelization of Buffalo Bayou near Earth took a tour of the galaxy Glad Bag. become bousehold worries. The Reagan­ Houston. Hardly a comparison to the prob­ Republican presidential nominee designed, Bush-chaired, Task Force on lems he would inherit as president such as George Bush has said that 1988 "in a Regulatory Relief successfull y gutted the carbon emissions, ocean dumping, ozone sense, is the year the Earth spoke back." Clean Air Act of 1970 and relaxed, delayed depletion and global climate change. Citing the unusually hoi summer ascribed or eliminated many other environmental A Washington Post editorial noted to the trend of global warming and the regulations. Subsequently, the Reagan ad­ that "Mr. Reagan did so little on the envi­ closing of beaches due 10 the dumping of ministration has been widely criticized as ronment, after all, thai Mr. Bush could medical wastes, the Bush campaign has the most partial to polluters of any govern­ do--or promise to do-a great deal more ment since the Environmenta1 Protection and still not be doing very much." Agency was created in 1970. Obviously, Bush must step out of But in a clear break with the current Reagan' s do-nothing e nvironmental Marian,. Kurtz is assistant ediror of the administration, Vice President Bush has shadow. According to Vermont Senator Ripon Forum. proposed a variety of environmenta1 initia- Robert T. Stafford, Bush is on his way to

14 RIPON FORUM. flKNEMBER /988 just such a distinction .•• A vice president proposal to date to battle environmental Aush with more than 59 billion through has to be loyal to the president," said woes. At the foundation of this 200-page 1992, the Superfund has been heavily crit­ Stafford. " Bush was in a delicate position bill aimed at curbing the greenhouse effect icized for its slow respone to toxic-waste and much of what he did with the task force is the rigorous commibnent to a least cost problems and its reliance on short-tenn is in the category of loyalty to the presi­ planning or efficiency approach by which fixes rather than permanent remedies. dent. I believe George Bush will be envi­ impact, costs and benefits are ranked. Bush wants the EPA to use the money ronmentally acceptable. He must do some­ Under the bill, the Department of En­ faster and more efficiently and make thing about acid rain. He must be sensitive ergy along with other agencies would re­ greater use of its power to authorize imme­ to global problems. He must go further prioritize their budgets using the cost ef­ diate cleanups. than the current administration." fective guidelines. As a result, energy Although Bush has proposed pro­ conservation , research and development of grammatic changes for the EPA. he has not renewable energy sources and the slowing accepted the suggestion of six Republican of deforestation would become prominent senators to change the leadership staWs of agenda items. the agency. While Bush has said he would To further encourage efficiency, the seek " the most qualified individuals in the bill proposes tax rebates for the purchase land" to run the EPA, Senators Rudy Bos­ "Obviously, Bush must of fuel efficient vehicles offset by a higher chwitz (Minn.), John H. Chafee (R.I.), gas-guzzler tax. According to Schneider, David Durenberger (Minn.). John Heinz step out qf Reagan's invesbnents in energy efficiency over the (Pa.), Stafford and Lowell P. Weicker Jr. do-nothing environmental past 15 years have cut energy consumption (Conn.) introduced a bill that would give by one-third, carbon emissions by 40 per­ the EPA Cabinet-level staws. The legisla­ shadow," cent and the U.S. energy bill by $160 bil­ tion calls for the creation of the Depart­ lion per year. ment of Environmental Protection headed "Success breeds success, and this is by a Cabinet secretary who would have undeniably (rue about remaining oppor­ equal status with foreign ministers with wnities for saving more money and cutting whom EPA negotiates treaties. carbon and nitrogen oxide emissions " The president needs to be involved Emer George Bush on the shore of through additional efficiency improve­ in making environmental policy. And thc lake Erie near Detroit. [I will) " lead the ments, " Schneider said. EPA needs to be involved on the Cabinet world to a new recognition of the impor­ This legislation goes to the heart of a level in setting national policy," tance of the environment. Those who think report from the EPA's Science Advisory Continued on page 18 we're powerless to do anything about the Board which claimed too much emphasis greenhouse effect are forgetting about the is placed on cleanup and not enough on prevention. Clearly the authors of this bill White House effect," Bush contended . Bush on the Environment .. As president. I intend to do something understand the relationship between pre­ about it. ,. vention and cure and manage to balance • Convene a global conference dur­ Part of Bush's "something" includes that understanding with economic ing the first year in office to dis­ the promise to convene an international realities. cuss acid rain, ozone depletion Reduction and prevention of pollu­ conference during his first year in office to and global wannin~. tackle acid rain, ozone depletion and tants coupled with increased efficiency not • Reduce dependence on fossil fuels only makes good environmental sense, it global warming. Also on the Bush agenda by exploring alternate fuel sources makes good economic sense. This bill pro­ is the promotion of a strengthened Clean and increased reliance on nuclear Air Act, the implementation of the Mon­ motes environmental caretaking as well as powe'. treal protocol to reduce chlorofluorocarbon global competitiveness, two issues Bush • Cut sulfur dioxide emissions by most certainly embraces. As Bush noted in use which destroys the ozone layer. and the millions of tons by the year 2000 Detroit, being an environmentalist is " not reduction of carbon emissions through and obtain substantial reductions inconsistent with being a businessman nor more efficient uses of energy and alternate in nitrogen ox.ides. fuels. Similarly, Bush has called for the is it with being a conservative." • Implementation of the Montreal Continuing this business-like, prag­ reduction of millions ohons of sulfurdiox­ protocol to reduce the use of chlo­ ide emissions by the year 2000 and signifi­ matic approach, Bush has called for zero rofluorocarbons and encourage tolerance for polluters and suggested the cant reductions in nitrogen oxide U.S. industry to find safe alterna­ EPA sue toxic-waste polluters for triple emissions. tives and move toward phasing out damages. Currently fines on hazardous CFCs. waste dumpers average less than 10 per­ • Zero tolerance for polluters. Fine oping that the next president will in­ cent of the money polluters save by dump­ toxic-waste dumpers triple dam­ ing illegally. Bush's plan attempts to make H herit legislation to take just the steps ages and increase effectiveness of Bush has outlined, Congresswoman Clau­ those responsible for dumping responsible the Superfund program. ding Schneider of Rhode Island, along for the cleanup. • Ban all ocean dumping by 1991. with two dozen bi-partisan compatriots, Similarly, Bush hopes to make the • No net loss of wet lands. has introduced the most comprehensive Superfund program more responsive.

RlPai FORUM, NCNEMBE.R /988 J5 UP AGAINST THE WALL: Religion, Politics and the Establishment Clause

BY ALFRED W. lATE

he consternation created among words, however, was an unhappy one for professional politicians by the several reasons. First, the concepts of T campaigns of the Reverends Rob­ "Church" and "State " did not then and ertson and Jackson for the presidential most cenainly do not now adequately de­ nominations of their respective parties, "The problems we are scribe the American experience. As Paul and the immense if unspoken relief felt by Kauper puts it: many when their races fell short, are symp­ having in answering "Church-state terminology comes to toms of a peculiar fonn of nalional schizo­ questions about religion's us from Europe and recalls a back­ phrenia. We Americans like to think of ground which is quite unlike the ourselves as a deeply religious people, but plnce in politics can be American scene. It had its origin in a we become intensely uncomfortable when time when the church was indeed a this putative religiousity is expressed in the traced to the single monolithic Church and govern­ political arena, ment JXlwer was centered in a single One source of this "split" in our cor­ inadequacies of the ruler. It is inadequate to describe the porate personality is the way in which language we have used to American situation because of both these two ways of being and acting are the multitude of churches in this inextricably related. The intimate connec­ frame it," country and the dispersion of govern­ tion between the "religious" and "politi­ mental JXlwer among the federal gov­ cal" dimensions of OUT lives has made ernment, the states, and the local arriving at a comfortable accommodation communities ... between the two difficult throughout Jefferson 's use of the term "wall" is history. equally unfortunate. The reference is to a For Americans this difficulty is com­ responses to it, and nowhere has this permanent barrier, set in place once and for pounded by the peculiar disjunction be­ proven more clear than in our ongoing na­ all along a predetermined boundary. This, tween religion and politics institu­ tional colloquy on what part, if any, reli­ too, does not adequately describe what tionalized in the so-called "establish­ gion should play in our system of gover­ was and is the case here. A far more accu­ ment" clause of the First Amendment. nance. That is to say, the problems we are rate image for the state of affairs in Amer­ The unique experiment in governance cre­ having in answering this question can be ica is found in a 1832 letter from James ated by the rejection of a national religion traced to the inadequacies of the language Madison to the Reverend Jasper Adams in has left us without historical precedenr for we have used to frame it. Almost imme­ which he addressed the JXltential for confu­ understanding the role of religion in the diately after the nation's founding, Ameri­ sion created by the First Amendment. He politics of the United States. cans began to debate the place of religion had to admit, Madison wrote: in their corporate life using language that "that it may not be easy, in every INADEQUATE LANGUAGE obscured rather than clarified the issue. possible case, to trace the line of sep­ But we have placed ourselves at a The unlikely villain here is Thomas aration between the rights of religion funher disadvantage. The terms in which Jefferson. Writing in 1802 to the Danbury and the Civil authority with such dis­ any issue or question is put wi ll in large Baptist Association of Danbury, Connecti­ tinctness as to avoid colli sions & measure detennine the range of serious cut, Jefferson described the effect of the doubts on u'nessential JXlints." First Amendment to have been one of The JXlint is that in the United States "building a wall of separation between there is no "Church" in the traditional Alfred W. Tate is a member of the Ripon Church and State. " The phrase is one of se nse, rather there are a myriad of Forum editorial board. This essay is based the most often quoted in American JXllitics "churches." By recent count, there are upon his chapter in th e recently-released, and the image it contains has almost totally over 1000 organized religious groups in "A Newer World: The Progressive Repub­ captured our thinking on the question of this country to which the label could be lican Vision of America. " religion and JXllitics. Jefferson's choice of applied. Similarly, there is no "State" in " RlP(X!l FORUM, NQlEMBER 198IJ the sense of a single seat of government, gion performs two " binding" functions. how the demands of communal life are to but a variety of "civil authorities" with First, in providing answers to the questions be distributed and enforced. as well as overlapping constituencies and differing of life's ultimate meaning and purpose it what punishment is to be exacted and how jurisdictions and powers. In such a con­ gives individuals their sense of personal it is to be administered when these de­ text, the term " line," one definition of identity and worth. In this sense, religion mands are not met. which is a path without width and of inde­ creates an awareness of being an integrated tenninate length generated by two or more self that both transcends its needs and de­ lXlinlS , is much more helpful. It allows us, sires and is more than the sum of its experi­ as the historian Sidney Mead has argued, ences. Second, religion makes genuine to see that the relationship between "reli­ and lasting community IXlssible. It does so gion" and "Civil authority" is a close, because it is our recognition of the JX>sses­ dynamic and indissoluble one. Further, the sion of this same selfhood and personal image enables us to appreciate that, under worth by others that unites us as individ­ "Religion supplies the our system of governance, this relationship uals into groups whose purpose goes be­ content for which politics and its boundary must be refixed in each yond simple physical survival to the en­ new situation in which the question of its hancement of the worth of this shared may be said to provide definition arises. selfhood. "Politics," on the other hand, is the the soci.al structures. " DEFINING RELIGION AND art or science of government. It is the name POLITICS given to the institutions and activities Consideration of just what is meant which define. structure and give order to by the terms " religion" and " politics" the life of a particular group or community. makes clear why Madison's language is It is derived from a Greek word meaning preferable to Jefferson 's in bener under­ "city" or "state." The term and its cog­ The fact that a discussion of defini­ standing what we have inherited in the nates can be used to refer to an explicitly or tions and distinctions of this sort seems "establishment clause. " implicitly incorporated community of abstract and artificial is itself a symptom of whatever limited or extended sort, the way the impossibility of finally separating reli­ in which such a community is organized gion and politics. And it is this intimate and the processes through which it func­ nature of their connection that makes dis­ tions. This includes the specific things its tinguishing between religion and politics members do in gaining control of and ad­ in any specific society at any one time very ministering it. hard to do. For most countries, however, , 'Jefferson described the "Religion," the British statesman the question of the role of religion in poli­ Edmund Burke maintained, " is the basis tics never arises. Because of the "estab­ effect qf the First of civil society... The German theologian lishment clause, " for Americans it does so Paul Tillich said essentially the same thing constantly. Amendment to have been when he wrote: " Religion is the substance one qf 'building a wall of of culture and culture the form of reli­ ESTABLISHMENT CLAUSE gion." Implicit in both statements is the We take so much for granted the fact separation between truism that every political entity, every hu­ that the United States has no established man group, no matter how large or small, church to place its imprimatur on public Church and Stote.' .. no matter how fonnally or informally or­ policy that we tend also to overlook the fact The term 'line' would ganized, is founded upon and takes its that this represents an experiment in gover­ shape and direction from the shared reli­ nance unique in Western history. Further, have been much rrwre gious beliefs of its members. Religion sup­ overlooked in tum is the way in which the plies the content for which politics may be religious freedom we enjoy in this country helpful·" said to provide the social structures. is itself the expression of a profound reli­ To live in a genuine community, gious conviction . This conviction is the whether one as intimate as the family or as belief thai the free and open conftict of impersonal as that of the modem nation­ ideas and ideals is the essence of state, requires individuals to subsume their democracy. self-interest under the greater good repre­ The inclusion in the Constitution of "Religion" is the name given to the sented by the whole of which they are part. the edict "Congress shall make no law system of beliefs and practices expressive By supplying answers to the question of respecting an establishment of religion, or of the faith in the ultimate meaning of life's ultimate meaning and goal, religion prohibiting the free exercise thereof' has existence common to the members of a defines this greater good and offers the provided a safeguard ensuring the continu­ community. The Latin root of the word inspiration of self-interest our life together ance of this essential conftict. In obscuring means "to bind," and , as both aconstella­ requires and sanctions the restraints im­ the true relationship between religion and tion of beliefs and the source of the stand­ posed by society when these sacrifices are politics, Jefferson's talk of a " wall of sep­ ards by which morality is measured, reli- not voluntarily made. Politics determines aration between Chu rch and State" has

RJPCW FORUM. NOVEMBER /988 17 GRAVEYARD ORBIT (Continuedfrom page /5) obscured the faith stance on which our founded may be---the political response Durenbergertold the Washington Post. " Lf system is founded. In rum, it has led many religious convictions elicit are always hu­ any agency deserves to be represented at to believe that the expression of religious man products and thus relative and falli­ the Cabinet table, it is the agency respons­ convictions should somehow be excluded ble. Their imposition must therefore be ible for the quality of our water and air and from the political arena. The opposite is only lhrough the medium of persuasion in the protection of our irreplaceable natural the case. Our response to the ultimate reli­ free and open debate and never through the resources," Chafee added. gious question of the meaning of human use of coercive force, however subtle in its Although Bush has not adopted their ex.istence is inexuicably linked to our re­ application. Coercive force always inter­ notion to his agenda, the bill's sponsors sponse to the fundamental political ques­ feres with and can potentially extinguish believe the vice president wi ll not disre­ tion of how shall we order our life together free debate. gard the idea entirely. " I think when the to most fuUy realize that meaning. Any The First Amendment created some­ time comes, if Bush is elected president, specific effort to address the latter will thing very different from a "wall. " It has he will be prepared to look at the EPA for inevitably entail an equally specific answer instead provided the occasion for deter­ Cabinet-level representation," Stafford to the fonner. Every serious political de­ mining in any specific political conflict said. bate will thus ineluctably be finally resolv­ whether the expression of religious convic­ Many proposals have been made for able to appeals to the authority of religious tions by the parties involved is persuasive, adding Cabinet ministers including repre­ convictions. and therefore pennined, or coercive, and sentation for the Veteran's Administration. therefore " unconstitutional. " This deter­ Bush clearly opposes more government mination can only be made on the basis of and recognizes the dangers inherent in ad­ the particular issues involved and the spe­ ding place settings to the Cabinet. The vice cific modes of argument used . The result president must remember, however, that has been something much better described environmental problems dramatically af­ in tenns of Madison's " line," a line the feet the posture and disposition of those course of which has been generated by past already at the table. "The establishment such detenninations and the direction of As Stafford points out, "as people which will depend upon the circumstances squawk about coughing, and sneezing and clause does /Wt prevent of future political debates. eyes burning," it is clearly time to take Like every other body politic , ours is action . But granting the EPA a Cabinet seat appeals to religious founded in faith. As has been true for all should not become the litmus test for the convictions. What it uibes and nations from time immemorial, environmental policies and priorities of ei­ our system of governance retains its au­ ther Bush or Democratic nominee Michael prevents is the use of thority over us as individuals only so long Dukakis. The true task is gaining congres­ as we remain convinced of the essential sional support for prudent and pragmatic coercion in any form by " rightness" of the faith on which it is environmental leadership. any side in political founded. Further, as has also been true for According to John Topping, director al l peoples in all times and as most recently of the Climate Institute in Washington, debates." witnessed 10 by the pageantry surrounding D.C., Bush must heal election wounds the celebration of the bicentennial of the quickly and gain bipartisan cooperation in Constitution, the power inherent in our order to promote environmental initia­ institutions of government is constantly tives. "Bush will be under pressure to pro­ being enlisted in the cause of inculcating vide environmental leadership early," this faith. The stakes are high. If and when Topping said. "He must bring in the Dem­ this faith loses its ability to give meaning ocrats, set better priorities and create a The establishment clause does not and direction to our lives-and in the pro­ basis for good wilL He cannot do it uni­ prevent such appeals. What it prevents is cess inspire in us the sacrifice of self­ laterally. He must share the credit." the use of coercion in any fonn by any side interest that life in community requires­ Stafford concurs. " The people of the in such debates. The problem the First our society wi ll begin to unravel. For us world are looking to American leadership Amendment confronts is contained in the that unraveling wi ll take the (onn of giving to address these environmental problems. fact that the authority religious convictions into the temptation to allow the ends we The time has come for more action and less carry is absolute because the questions to seek to dictate the means we use to achieve study, but the president (Bush) can' t do it which they are responses are ultimate them. • alone. The president has to know that con­ ones. Thus possession of such convictions siderable national anxiety will arise if steps brings with it the temptation to claim that are not taken. As peo ple become the use of any means are justified in their What's Ahead in the uncomfortable--the climate gets too hot, imposition . The Constitution resolves the Ripon Forum: throats ache, eyes bum--the people of the problem by confronting the claims to abso­ world will want to eliminate these things lute authority by specific religions with a More on Blacks which cause such manifestations to occur. claim of equally absolute authority of its in the GOP As president, Mr. Bush must provide that own. This claim is that- no matter how leadership and gain the support of firmly held the faith on which they are Congress." •

J8 RIPON FORUM, NOIEMBER /988 THE CHAIRMAN'S CORNER S&L's: "The Lure ofLeveraging"

BY JIM LEACH

he time has come for Congress to ones, thrifts used their legislative power cease mincing words about thrift base within the dominant political party at T problems. The dilemma we are both the state and federal level to see to it confronted with is of our own making. Too that they would not become as forcefully loose laws have led to too loose regulation "Too loose laws have led regulated as commercial banks. which in tum has led to too loose banking practices. The overleveraging of other peo­ to too loose regulation ple's money by high-flying thrifts has put which in turn has led to ompounding the problem of weak taxpayers on the line for billions of dollars C regulation and a weak capital base in of liabilities developed outside the normal too loose banking the thrift industry is the epidemic of greed budgetary process. Multi-bill ion doll ar that seems to exist within a number of obligations have been made by politicians practices. " overextended institutions in growth states. refusing to stand up to special interest con­ Thrift managers who are in negative net cerns and made larger by regulators prefer­ worth situations understand that they have ring to buy time rather than spread ill nothing to lose as they pay premiums to winds through an industry strewn with ill attract deposits insured by others. Hence, will. try because regulators followed the there is every incentive-through divi­ The statistics speak for themselves. A pandering exhortations of legislators at dends, salaries and perks-to live high on $1.3 trillion industry has a negligible capi­ both the state and federal level who have the hog today and make risk investments in tal base. negligible insurance fund and given too much power to too few to exer­ the hope of striking gold tomorrow. With­ negligible disincentive to take risks with cise too wantonly. out stem regulatory oversight, imprudent taxpayer dollars. [f the first quarter of 1988 A classic example of egregious thrift circumstances breed more imprudent deci­ is a guide, the industry is losing money at a power is the regulatory rule that allows sions. SI5 billion annual clip. The weak are savings and loans, but not banks, to put The quandary regulators confront is gening weaker, with Congress faci ng the 300 percent of their capital in direct invest­ the problem of how to rein in overextended prospect of the largest private sector bail­ ments. Alleged representatives of the linle institutions when their primary resource is out in the history of the Republic. guy have encouraged thrift investors to use an overextended insurance fu nd. Inge­ Commentators like to suggest that re­ govemmem insured deposits to speculate niously, the short-tenn answer appears to gional problems-i.e ., a weak economy in in real estate or the stock market rather be a government-backed Ponzi scheme: the the oil patch and on the fann-precipitated than home loans. issuance of long-tenn capital notes on a the savings and loan problem. Actually, [f executive branch scandals-some fu nd backed, in theory, by the Treasury. there are more human culprits than abstract have gone so far as to suggest the presence The undeniable effect of such note issu­ rationales. The root cause of the thrift of a sleaze factor-may be ascribed with ances is taxpayer accountability for the problem is greed, the regulator-sanctioned partisan fervor to Republicans, thrift con­ printing press of an independent regula­ capacity of high flyers to attract and over­ flicts of interest can just as fairly be consid­ tory agency. But incredulously no one in leverage other people's money because of ered disproportionately Democratic. Such this conservative administration is crying receipt of federal or state charters to take is the case because over the years in a baule foul. No one desires to bite the bullet just deposits backed by federal insurance. for powers between savings and loans in­ now. Apparently the Reagan administra­ The quid pro quo-prudemial invest­ terests and commercial banks, thrift exec­ tion simply wants to get out of town before ment and lending practices-has been ig­ utives chose up sides with the Democrats, the horses are out of the bam and a stam­ nored by a significant element of the indus- presumably on the assumption that bankers pede commences. historically identified with the Republican The only way it can do this is to give Party. license to the licentious. Even though well­ Jim Leach is a member of Congress from Just as large banks have come over capitalized and we ll-managed thrift insti­ Iowa and chairman of the Ripon Society. time to be regulated less finnly than small tutions have had record profits in recent

RJP(W FORUM. NCNEM8ER 1988 /9 years, the "Dr. JekyU " portion of the in­ regulatory guidance to the industry should dustry is so poorly managed that losses not be to shrink. As a representative of indi­ only exceed the de(X)sit insurance fund for vidual taxpayers and of an institution with thrifts but for banks as well. These losses primary res(X)nsibility for federal spending are almost certainly likely to multiply un­ decisions, my strongest admonition to reg­ "Congress should restrict less regulators learn to just say " no." Oth­ ulators is to shut down the presses. Under erwise, a $50 biUion headache today could today's circumstances where an industry is thriji direct investment become a $100 billion migraine tomorrow. under water as extensively as this one, powers to that authorized schemes that provide paper certificates to induce barely solvent thrifts to take over commerciol banking." he best antidote to public bail-outs of insolvent institutions stretch the constitu­ T individual institutions is the simple tional and legal prerogatives of regulators. requirements that they be adequately cap­ What is needed is a new macro­ italized and res(X)nsibly regulated. economic approach to pruning back, rather than the current micro-management largess implied in certificated gift-giving. In an effort to establish a model of disci­ dence since the Depression. A run up of pline, I would propose that the Bank Board deficit or an easing of FederaJ Reserve establish a model of guidelines: 1) all monetary (X)licy could all too easily spark thrifts with GAAP capital minus intang­ a run down in thrift industry spreads and "Unless enormous real ibles less than zero should be required to assets. A cascade of thrift failures could reduce their size on a yearly basis by a have an avalanche effect on the economy capital infusions are factor of three times their percentage nega­ leading to recession, or quite possibly, tive net worth-i.e., an institution with a depression. I11i1Lfe by private sector minus three percent capital-to-asset ratio The time could thus not be more pro­ must shrink its assets nine percent a year; pitious for Congress to come to grips with investors, the only 2) all institutions with a capital-to-asset the pressure group syndrome that precipi­ prudent regulatory ratio between zero and four percent should tated the overleveraging problem in the not be allowed to ellpand their asset base; first place. Despite the implications of gu~etothethriji 3) those between four and six percent interference with the free market, there is should be allowed to increase at a rate of no substitute for prudent laws and regula­ industry should be to two times their percentage capital-to- asset tion of financial institutions when the econ­ ratio; 4) those above six percent should be omy as a whole can be so dramatically shrink." allowed to grow as fast as they wanl, as affected by the decisions of a few. • long as their capital-to-asset ratio stays above Sill percent. Failure to comply with these growth restraints should lead to im­ mediate removal of key officers and directors. Can We Talk? The most effective means of limiting Congress, for our part, should review seriously the direct investment issue and taxpayer liabilities to the industry as a For future issues, the Ripon whole is 10 curb its overall growth. There is the current federal insurance guidelines. In no doubt that the Federal Home Loan Bank this regard, I have introduced two pieces of Forum is seeking to strengthen Board under Chainnan Danny Wall has legislation which: a) restrict thrift direct its role as a "forum" for Ripon upgraded significantly its regulatory man­ investment powers to that authorized com­ Republicans nationwide. We power. Doubt remains, however, that im­ mercial banking; b) limit institutions with need your letters with reaction to minus five percent or less net worth to provements in the micro-management our best and worst features, your ability to deal with today's problems are direct home loan investments; c) reduce views on major issues, your matched by an adequate macro-approach the insurance coverage for new deposits to to constraining tomorrow's. It is simply 20,000 for thrifts with a negative 10 per­ activities to spread the pro­ nuts to advocate, as the Bank Board does, cent or less net worth. gressive Republican message. a growth in industry assets that exceeds the To take away incentives to place hot The best letters will be printed, inflation rate when the industry itself has money in hot thrifts. I have introduced subject to editing for considera­ less than 56 billion of General Accepted legislation to limit insurance fund pay-outs tions of taste. length and appro­ Accounting Principles capital minus intan­ to principal , not interest, on deposits in gibles to back up $1.26 trillion in assets. closed financial institutions. priateness for the Ripon Forum One half of one percent is anybody's if thrift industry extravagances con­ audience. definition of overleveraging. Unless enor­ tinue to be countenanced, the country and mous real capital infusions are made by the financial community have to be pre­ private sector investors, the only prudent pared for the greatest jolt in public confi-

RJPON FORUM. NCNEMBER /988 MEDICAL LIABILITY C RISIS Continued/rom page /3 system is to fairly compensate people who give. Also insurance costs would be re­ are injured as a result of another person's duced since companies would not have to negligence, the courts are expanding the maintain large reserves . liability doctrine and awarding compensa· States should be encouraged to adopt lion for adverse outcomes without paying "Legal fees should be such federally-designed reforms and be much attention to negligence. Clearly. given a specific time period in which to fault-based liability must be reinstituted. based on a sliding scale implement them or design their own re­ Defendants should only pay claims where the percentage forms within federal guidelines. If the for which they are at fault and only to the of states do not, then the federal reforms degree to which they are at fault. In other the award going to the would automatically go into effect. words, we must abolish joint and several States do not want the federal govern­ liability so that a person five percent at attorney decreases as the ment to mandate tort reforms. They want fau lt would be liable for only five percent the freedom to fashion their own reforms, of the damages. Under the current law, award increases." but we cannot sustain the human costs of plaintiffs can collect all or part of their this crisis while states continue at their damages from any defendant found liable, present pace. This politicaJly feasible solu­ irrespective of that defendanl's proportio­ tion gives the states Hexibility to pass their nate fau lt. own reforms according to their severity of Furthermore. the federal government payments would assure the plaintiff of ade­ crisis, while assuring nationwide tort re­ should develop its own set of tort reforms quate funds during his or her treatment, an form and access by aJ l to quaJity medica1 including measures which had positive im­ assurance that lump sum awards cannot Cart. • pacts in the 1970s. Such actions included capping non-economic damages and elim­ inating Ihe collateral source rule. The spirit of the law supports compensation for pain and suffering. Capping non-economic damage awards would serve to balance Ihe actions of sympalhetic and emotive juries. THE RIPON FORUM Similarly, abolishing the collateral source rule would permit awards to be re­ "Celebrates the Middle ..." duced by Ihe payments received from olher The Washington Post sources. The present rule prohibits a de­ "Required reading for progressive fendant from introducing evidence Ihat Ihe Republicans"- TIME Magazine plaintiff has received payments from olher sources. "Positioning itself to be the voice of the Party's A limit should also be placed on con­ future"-The Boston Globe tingency fees paid to legaJ counsel. LegaJ fees should be based on a sliding scaJe where the percentage oflhe award going to Subscribe Now 10 the Ripon Forum the attorney decreases as the award in­ o Yes! Send me a fu ll year of the Ripon Forum for only $25 ·creases. This would aJlow plaintiffs to re­ o Enclosed is a contribution to the Ripon Society: ceive most of the award and help reduce the number of frivolous cases. Currently, $---- only 28 cents of every dollar paid by defen­ dants or their insurers reaches injured pa­ tients. The remainder pays for legaJ fees and administrative costs. Two other reforms which proved ef­ fective at the state level art the modifica­ N~. tion of the statute of limitations and the inclusion of period payment awards. Lim­ Address Apt # itation periods must be set at levels which allow plaintiffs ample time to discover their injuries and ~t protect defendants City Slate Zip from claims that would be difficult to de­ fend because too much time had elapsed and the evidence is no longer available. Please make checks payable to: TIlE RIPON SOCIETY Similarly, periodic payments benefit 6 Library Court, SE both plaintiffs and the insurers of defen­ Wash ington, DC 20003 dants. In medical liability cases, periodic -f""""" ord~ .... ploctoo Includ. $8,"' ...... pol,."..

RlPCW FORUM, NOtEMBER J9&'j 21 6 LIBRARY COURl'

MODERATES IN NEW ORLEANS sway. And they vow, moreover, to fight for contact us for details. what they believe. ,. Anyone who missed pre-publication ve r 200 conventioneers and Ripon Of course all the news for moderates offers can still order the book for $16.95. O friends attended a pany at the RoyaJ was not good. The Wall Street Journal Please see the order form on page II . Orleans Hotel in the French Quaner on said. "There are two reasons for the fading Aug. 17, to celebrate the reJeaseofRipon's prominence of Republican moderates. One STAFFORD RETIRING latest book, "A NewerWorld." Moderates is the way Ronald Reagan has personally and progressives from Hawaii to Missis­ dominated the party for the past eight ermont Senator Robert T. Stafford is sippi to Iowa to Massachusetts were on years, singlehandedly setting the agenda. V retiring from the Senate as his term hand for the release of the Society's first Second is the fact that, on issues of the ends with the close of this session . Stafford has been in the chamber since 1971 and has book in 15 years. One of the Society's economy and n~tiona l security, there founders, Emil Frankel. was among the aren't any significant disagreements. " served on key committees including Envi­ crowd who spent the evening swapping One disagreement that arises between ronment and Public Works, Labor and Hu­ stories and welcoming newcomers. Shir­ moderates and conservatives, however, is man Resources, and Veterans Affairs. A ley Temple Black and Washington Post re­ whether or not George Bush is moderate. long-time member of the Ripon Society porter Haynes Johnson were aJ so on hand. An anicle run in mid-October by the Jour­ and its Congressional Advisory Board, Copies of" A Newer World" and the nal said, "Mr. Bush lately has been mov­ Stafford authored the environmental chap­ Ripon Forum were dislributed at the media ing subtly but with increasing speed to­ terofthe Society's recent book, " A Newer center in the Hyatt Hotel. Hungry journal­ ward the poli tical middle." In the same World". His presence in Washington will ists picked up the books and magazines as article, Ripon Eltecutive Director William be missed by Ripon, as we ll as by his quickly as we put them out. The New Or­ McKenzie said, "When he's been specific congressional colleagues. leans Times-Picayune, the Dallas Morn­ and when he's talking about the future, he Vermont Republican Representative ing News, the Cle~'eland Plain Dealer and has moved toward the center. It's really Jim Jeffords, who is attempting to replace the Wall Street Journal all gave Ripon con­ very encouraging." Stafford in the Senate, told the Forum: " It siderable ink. Another mid-October piece on mode­ has been my tremendous privilege and The Plain Dealer said: "Moderate rates was written by the Washington Post's pleasure to know Bob Stafford as a friend, Republicans generally came away from Sidney Blumenthal, who said: "For eight a fellow Vermonter and a colleague with last week's convention feeling good about years, (moderates) endured the Reagan whom I have worked in the Congress. He the GOP's future and their role in il. To a presidency. And though a deliverer has has been a tireless defender of education, degree, that reflected their (moderates') appeared, they are uneasy about the tone of the environment, of the health and welfare belief that for all his Reaganite talk of the his campaign." of us all. I cannot think of a senator who past eight years, Bush was and is one of Blumenthal went on to say, however, embodies the Ripon Society ideals better. them." that " in spite of an eight-year conservative When he retires in January, he will be The Times-Picayune also discussed reign, almost all the GOP governors are greatly missed but certainly not forgot­ the future of progressive Republicans and viewed as moderates, as are many U.S. ten. " noted the comeback of the Ripon Society. senators and House members." Likewise, " In the Washington offices of the Ripon he says "moderates cannot bring them­ NEW MEMBERS RECEPTION Society, a bastion of liberal Republica­ selves to view Bush as a Reaganite. None ipon Chairman Jim Leach, along with nism, things were so tough when Ronald of the moderates eltpects Bush to govern as members of our Congressional Advi­ Reagan was elected in 1980 that the staff R he has campaigned. The doors and the sory Board , will host a welcoming recep­ consisted of a part-time employee and an telephones of the White House, they be­ tion in honor of the lOistCongress. We will answering machine. But now, the Ripon lieve , would open wider to them." pay special tribute to newly elected mem­ Society has two fu ll-time staffers, four bers and recognize the contributions of telephone lines and il just held a dinner that BOOK DISTRIBUTION current Ripon supporters during this event raised $160,000. And like the society, the scheduled for early December. liberal wing of the Republican Party is ince its introduction at the convention, making a comeback." " A Newer World " has been mailed to S STAFF CHANGE The Dallas Morning News pointed over 250 people, including Ripon mem­ out that the Republican Party has a long bers, journalists and members of Con­ onner Assistant Editor of the Forum tradition of moderation. "The GOP cele­ gress. During October we have promoted F Barry Edwards has given up his red brates a history of moderation, even liber­ the book at receptions in New York, Des pen to pursue a masters degree in English alism. It was the Republican Pany that Moines and Minneapolis and have made at the University of Minnesota. Replacing brought about the abolition of slavery in the book available in a popular Capitol Hill Edwards is Mariann Kurtz, a native of the last century. And it was the Republican bookstore. Indiana and recent graduate of the Univer­ Party that produced the politicians who Funds have also been solicited to sity of Louisville's School of Business. fi rst pushed for antitrust and consumer sponsor book distributions to college and Kurtz has four years of reporting and edi­ protection laws. university libraries, poli tical science de­ ting eltperience which she gained as editor " These moderate-to-liberals believe partments, municipal li braries and jour­ of her university's student newspaper and the GOP's future is as much theirs as it is nalists. lfyou would like to sponsor a book as a sports correspondent for the Louisville the conservatives' who have lately held to a library, college or newspaper, please Courier-Journal. •

22 RIPCW FORUM, N(NEMBER /988 WASHINGTON NOTES AND QUOIES

Baby boomers beware: It 's been reported Gergen, generally one of the coun­ tees, capable of raising millions, are aimed that 90 of 131 members of Congress , try's most perceptive observers, is correct at voter registration among conservative roughly Dan Quayle's age did no service about the right's new emphasis on "peo­ Christians and Catholics, and party­ of any kind during the Vietnam War. Dur­ ple" issues. But unfortunately he has building in at least 20 states where the ing the flap over Supreme Court nominee joined the legions of journalists so in­ minister gained a toe-hold this year. Asked Douglas Ginsberg, politicians as diverse trigued by this conversion that they don't by Campaigns & Elections ifhis goaJ was as Senator Al Gore on the left and Repre­ see progressive Republicans as a major to exclude GOP moderates, Robertson re­ sentative Newt Gingrich on the right ad­ source of ideas and nationaJ leadership on plied: " We won't [win elections] as an mitted they had once smoked pot. While such issues as the environment and educa­ 'evangelicaJ group, ' and it won't happen the majority of vOIers aged 18-35 lean Re ­ tion. Further, Gergen fail s to see that the as a ' Rockefeller moderate wing,' either. publican, it 's anyone's guess whether conversion creates the best conditions ever It's going to take a broad coaJition ... " younger voters' more tolerant social alli­ for a consensus between Republican pro­ Pressed on what common ground exists for lUdes will someday be accepted in national gressives and conservatives. C' mon, Mr. such a coaJition, he added: " We have com­ political debate, much less in the GOP. Gergen, give us a break! mon ground on the platform. I agreed with George Bush that we should stand together ... to preserve as much of the '84 platform as .. . possible. " Heavy sigh: Time reports that the '88 GOP The prospect of more bloody battles platform was a struggle between the "ul­ Robertson-Green Feud: A fund-raising through 1992, like those in Michigan or traconservatives" and the "tiny progres­ appeaJ by MODRNPAC, the progressive other states in 1987-88 is aJarming, and sive remnant." GOP PAC , signed by Representative Bill moderates suffer from appearing to ex­ Green of New York , warns, "There was clude the Robertson newcomers. But at the ... once a time when I- like many nuts-and-bolts level, another flood of in­ Republicans---could not imagine RonaJd tolerants into the party structure could Reagan in the White House. And today, wreck the long-awaited goal of a genuine Again: The Washington Post headline of a most Republicans assume the same about GOP coaJition . slOry profiling freshman Representative Pat Robertson .... Yet he's setting the One way not to respond, as Ripon (and Ripon Congressional Advisory Board stage for a comeback now. " In sharp word­ member Masu Dyer wrote in the Honolulu member) Constance Morella of Maryland: ing, the letter adds: " TheRepublican Party Star-Bulletin, (Robertson forces have "Morella's Record Eludes Easy Labels. " is not the Party of intolerance, censorship, taken over the historically-moderate Ha­ Hey, here's an easy label you missed: PRO­ religious favoritism and exclusion that Pat waii GOP) would be to quit or talk of a GRESSIVE REPUBLICAN!! Robertson represents." third party movement, as some former of­ Robertson saw the letter and fired ficiaJs are doing there. Much better is ac­ ... back: " Dear Bill: Some jackass has sent a tion directed at the roots of the problem. leiter out over your signature .... If Jim MODRNPAC's goal: up to 100,000 mem­ And yet again! David Gergen, editor of Baker, Lee Atwater, Bob Michel and [Bush bers this year, and $565,000 for campaign U.S. News and World Report and former finance chairman] Bob Mossbacker [sic] donations to traditional Republicans . In Reagan White House communications felt that you were ... trying to split the addition to other party-building efforts, chief, writes that " the old George Bush­ Bush coalition seven weeks before this that's a modest, but important beginning. the decent, mainstream conservative of the election ... you would find yourself in 1970s-is emerging after seven years in •deep doo-doo. ' , , ... cold storage, and that seems to suggest a Green's retort to Robertson: " l over genuine eagerness to listen to new ideas." estimated you: I never thought that an ex­ Blue Ribbons: Despite this publication's But heaven help us! Gergen says " some of perienced jawboner would need to resort to frequent criticism of Congress, it's worth the best ideas in areas such as the environ­ such a shopworn line .. .. I stand by my applauding a few of the lOOth Congress's ment, education, child care and inner cities statements ... some of your views endan­ notable achievements: in 1988, meeting come from .. . conservative ... imag­ ger the party and are harmful to the the law's spending limits (barely) and bud­ inative Republicans like Jack Kemp and country... " get deadlines (barely, for the first time in Newt Gingrich." Robertson 's politicaJ action commit- 14 years); uniting, at last, education and

RlT¥»l FORUM.IOVEMBER 19M 2J work requirements with welfare; strength­ While Ripon Republicans are most Connecticut--each in their fres hman tenn ening anti-bias protections in housing; en­ often the victims of this bias, they can take representing Democratic districts-are acting sweeping, much-needed and less­ heart in the Sierra Club's own poll taken of likely to solidify their base of suppon. protectionist-than-feared trade reforms; GOP delegates in New Orleans. The poll Michigander Carl Pursell and John Miller making a commitment to close unneeded discovered big majorities in favor of stron­ in suburban Seattle face tough opposition. military bases; getting the Environmental ger enforcement and higher funding for Moderate Peter Smith is running hard to Protection Agency started on stricter environmental protection among young replace Jim Jeffords of Vennont, who is pesticides regulation; making responsible and old, conservative and liberal, and strongly favored to replace retiring pro­ investments in highway, airport and clean Eastern and Western Republicans on the gressive Robert Stafford in the Senate. water infrastructure; and keeping the full range of environmental issues. Syracuse City Council President Jim "Star Wars" missile defense concept Walsh is favored to take the seat of retiring down-to-earth. • •• Representative Wortley. Impressive challengers needing sup­ port include Ed Howard in Bucks County, ... Toward a LandsUde: Following up on a RFeditorial (see p. 9), there wasa boomlet Pennsylvania (who is competitive since in­ Pies in the Face: Among the issues where in Washington just prior to the GOP con­ cumbent Kostmayer was quoted telling Congress's sordid, selfish, partisan fail­ vention in favor of naming National Secu­ women, gays and environmental groups to ings were upheld in the highest style: clean rity Adviser Colin Powell as Bush's Veep. "just shut up" during the campaign, since air, where Democratic leaders for the sixth Among Powell's pushers were columnists Dukakis would give them "everything you want" ifhe wins), Ted O'Meara in Maine, year running were unable to overcome George Will and William Raspberry, actor their environmentalist-labor split and Ed Asner and Representative Jack Kemp. Ann Haney in Wisconsin, Earl Mollander in Oregon and John Holmes in Rhode Is­ schedule action on a bipartisan bill cuning Lieutenant General Powell is smart, acid rain and smog; drugs, where law en­ moderate-conservative, and rose from land (where incumbent St. Gennain, un­ forcement, education and treatment were humble origins to become the nation's top der investigation on ethics charges, was overrun by NRA handgun crusades, at­ national security official. Racist and skep­ beaten decisively in one poll by "New tacks on civil liberties and half-baked tic opponents of a Bush-Powell ticket Person"). plans to deploy the military; Speaker would have been outweighed, said Rasp­ Fortbe Senate, most of the hotly con­ Wright's unprecedented intervention (no berry, by the millions eager to rewrite tested Senate seats must be won by conser­ vati ves to enlarge the GOP contingent , matter what you think of the contras) in America's history. And given blacks' dis­ such as Karnes in Nebraska, Mack in Aor­ Central American diplomacy; and the in­ satisfaction with the Democrats this year, ability to produce campaign finance re­ the move could have led, in Jesse Jack­ ida, and Lott in Mississippi. As for mode­ forms that address the real issues-near son's words, to a voter realignment as pro­ rates, Wisconsin State Senate GOP Leader 100% incumbent protection and exploding found as the shift under FDR. Susan Engeleiter is being outspent by Mil­ campaign costs. waukee Bucks owner Herb Kohl; Cleve­ land Mayor George Voinovich has so far ••• failed to overcome ads by incumbent ••• Metzenbaum on Social Security; Washing­ Ripon at the Races: Here's a final wrap­ ton 's Slade Gorton is looking better in his Environmental "One-Sidedness": Dou­ up of congressional races important to comeback bid; and New Jersey's Pete glas Wheeler, a long-time environmental Ripon Republicans: Dawkins is flagging in pursuit oflaclduster acti vist, in a piece for the Washington Post, For the House of Representatives, incumbent Frank Lau tenberg. Duren­ cites six specific cases in recent years Stanford Law professor Tom Campbell is berger of Minnesota and Wilson of Cali­ where his collegues disbelieved or down­ expected to win Ed Zschau 's fonner Sili­ fornia are locked in races too close to call; played the work. of pro-environment Re­ con Valley seat; Campbell beat conserva­ Weicker of Connecticut, Danforth of Mis­ publican leaders. Wheeler argues one re­ tive Ernie Konnyu in the June primary. souri and Heinz of Pennsylvania are in sult is "Iittle real incentive for Republican Buechner of Missouri , Morella of Mary­ usually strong shape. • support of environmental legislation. " land, Saiki of Hawaii , and Shays of

24 R/?(X1 FORUM. NCNEMBER 1988