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September 17, 1985 EXTENSIONS OF REMARKS 24013 EXTENSIONS OF REMARKS OPPOSITION TO JOB CREATION: icans-that they do not share the values and business cycle has registered a higher unem­ A CONSERVATIVE IDEOLOGY aspirations of working Americans, that they ployment rate than the preceding peak. The do not respond to the incentives and oppor­ rate of unemployment declined to 3.4 per­ tunities of the market in the same way as cent in the late 1960s, rose by about a per­ HON. SANDER M. LEVIN the more prosperous. Although a very old centage point during the peak of recovery OF MICHIGAN idea, the association of poverty and unem­ from the 1974-75 recession, and now, 30 IN THE HOUSE OF REPRESENTATIVES ployment with deviance seems to acquire months into the recovery from the 1981-82 new life with every generation. recession, unemployment still hovers be­ Tuesday, September 17, 1985 Conservatives seldom question whether tween 7 and 7lf2 percent. Mr. LEVIN of Michigan. Mr. Speaker, for deviant lifestyles are of the poor's own In May 1985, the Bureau of Labor Statis­ the past 6 months I have had the privilege choosing or simply reflect the harsh reali­ tics reported that 8.4 million persons, ac­ ties of deprivation. They are content to be­ counting for 7.3 percent of the labor force, of chairing the House Democratic Caucus lieve that the poor are unmotivated and un­ were seeking but could not find jobs. In ad­ Task Force on Job Training. This task willing to work unless coerced to do so. It dition, 5.9 million persons sought full-time force was constituted to take a hard look at follows, therefore, that even an affluent and work but had to settle for half-rations be­ the need for job training and retraining compassionate society should limit assist­ cause there was not any full-time work across America, how we are currently ance only to the truly needy poor, those available. There were some 2 million more meeting that need, and what changes must who cannot work and support themselves. people in this category in May 1985 than be made to face the economic challenges of The rest can fend for themselves because there were 31 months after the recovery the future. As part of this effort, we have according to the Reagan-Murray vision of started in 1975. Similarly, the 1.1 million the world, there are plenty of jobs available discouraged workers exceeded the compara­ held a series of meetings with recognized for anyone seeking work. ble number in 1977 by about 300,000. All experts in the employment field. Today, I The most vivid examples of the conserv­ this tells us a story of loose labor markets would like to share with my colleagues atives' refusal to acknowledge labor market where millions of people cannot find full­ some particularly pointed remarks made by realities can be found in President Reagan's time work. Clearly unemployment is not due Dr. Sar Levitan to our task force this past faith in job availability amidst postwar to the failure of the idle to seek work, as June. Dr. Levitan is the founder and direc­ record unemployment. During the worst re­ President Reagan asserts, but because jobs tor of the Center for Social Policy Studies cession since the Great Depression, he clung are not available for all those who desire at the George Washington University. At to the theme that opportunities for work work. abound: In mid-1983 when more than 10 million this time I would ask for unanimous con­ Pick up the Sunday paper and look at the Americans were actively looking for work, sent to insert Dr. Levitan's remarks into number of help wanted ads. Here are em­ President Reagan focused on the Horatio the RECORD: ployers begging for employees, taking ads Alger dream of unlimited opportunities for OPPOSITION TO JOB CREATION: A out for them at a time of the highest unem­ self-advancement rather than on the prob­ CONSERVATIVE IDEOLOGY ployment that we've known since the war. lems of those who were seeking work. One could hardly disagree with President Rea­ In the great metropolitan centers . . . you gan's hope that "this remains a country An underlying vision of the American wel· count as many as 65 pages of help wanted where someone could always get rich." fare system as it evolved over the past half ads. . . . These newspapers ads convinced us Dreams are fine, but we should not lose century is an abiding belief that the nation that there are jobs waiting and people not sight of reality. Regrettably, opportunities is not condemned to passive of trained for those jobs. . work. The pious declarations of the 1946 stable jobs, and few promotion opportuni­ Anyway, poverty and unemployment are in­ Employment Act and the 1978 Full Employ­ ties. Because workers in secondary markets evitable and there isn't much that we can do ment and Balanced Growth Act notwith­ are often forced to accept intermittent em­ for the poor. standing, public policy has not been directed ployment their incomes tend to fall short of THE POOR ARE NOT TRYING toward providing jobs for all. On the con­ their fulltime earnings capacity and thus At the heart of the conservative opposi­ trary, during the past two decades a number below the poverty line. Moreover, since the tion to federal job creation initiatives lies of factors have contributed to creeping un­ working poor frequently hold unskilled jobs, the suspicion that the poor and unemployed employment. The unemployment rate they are unlikely to upgrade their skills in are morally different from the rest of Amer- during each of the succeeding peaks of the their current jobs that would assist them in

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member of the Senate on the floor. Boldface type indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 24014 EXTENSIONS OF REMARKS September 17, 1985 the transition from secondary to primary and made welfare the more attractive alter­ clearly at odds with the record. Prior to gov­ labor markets. The existence of prunary native. A society that places a high value on ernment intervention, private voluntary ac­ and secondary markets side by side leaves the work ethic should also be willing to pay tivities managed to provide only the most unskilled workers trapped in dead-end jobs a price for inducing the poor to work. modest relief and assistance to portions of in which their motivation and effort have The potential benefits of the current ad­ the poor population. These efforts were the no appreciable impact on future advance­ ministration's proposals to lower the mini­ least effective in areas with high concentra­ ment or capacity for self-support. mum wage to increase job prospects among tions of low-income households and seldom Patterns of labor market segmentation unemployed youth are similarly limited. In moved beyond the provision of minimal are strengthened and influenced by racial loose labor markets such action may have temporary aid to improve the poor's pros­ discrimination and barriers to occupational the effect of displacing older workers to fill pects for self-support. The inadequacy of entry that hinder the advancement of disad­ newly created jobs. Attempts to combat private help, if not its complete breakdown, vantaged minorities. Some progress has youth unemployment by lowering the mini­ generated the need for government inter­ been made as direct result of federal man­ mum wage provides a mixed blessing for the vention under the New Deal. As government dates and interventions, towards reducing poor; any advantages for the young may be responded to unmet basic needs, there is no the prevalence of discriminatory employ­ gained at the expense of their elders. convincing evidence that charitable contri­ ment practices. Nonetheless with rising HELPING THE POOR AND THE UNEMPLOYED butions suffered a corresponding decline. levels of educational attainment and aggre­ ENCOURAGES INDOLENCE The 1983 Economic Report of the Presi­ gate unemployment, the use of credentials Having made the claim that the poor dent, prepared while joblessness reached its or licensing requirements as barriers to suffer deprivation by choice, or at least by postwar peak, reflects the strength of the entry into the primary labor market prob­ virtue of their own inadequacies, opponents philosophical bias against federal programs ably has increased in recent years. Both fac­ of government assistance in aid for the poor to expand employment and broaden eco­ tors continue to frustrate the efforts of the and the unemployed also develop what they nomic opportunity. Although it voiced sup­ disadvantaged to pull themselves out of pov­ view as a logical corollary-federal efforts to port for training to assist the structurally erty. help the poor are counterproductive. The unemployed, the report implicitly rejected Perhaps the most frequently cited exam­ result is: we cannot assist the poor and the the job creation proposals of "well-mean­ ple of how government limits opportunity unemployed even if they need our aid, be­ ing" members of Congress with the state­ and creates poverty and idleness is that fa­ cause federal interventions inevitably con­ ment that "only a balanced and lasting re­ vorite conservative whipping boy, the mini­ stitute a hinderance instead of a help. covery can achieve a substantial reduction mum wage. Critics of federal minimum wage According to President Reagan, welfare is in unemployment." . Both are unskilled and deficiently building a solid base for the economy as the minimum wage are particularly difficult to educate. In the good old days, if Phyllis method of providing the jobs the unem­ assess because this wage protection has made a "mistake" and became pregnant, ployed need, and providing them on a more become inextricably intertwined with the Harold would marry her, take a menial and or less permanent basis instead of just a nation's social welfar system. While con­ low-paying job, and presumably, the couple quick flurry that does no real good but tinuing to fulfill its original function of pre­ woud live happily ever after. His assumption leaves us closer to the brink of disaster than venting rampant wage exploitation, the is that jobs were available and that all able­ we were before. minimum wage also remains the most direct bodied persons could find work. As long as The presumption that the poor shirk work and comprehensive policy tool to improve the choice for able-bodied persons was be­ responsibilities is most explicit in workfare the lot of the working poor. An excessively tween work and starvation, presumably they initiatives that require welfare recipients to narrow focus on the probable elimination of all worked. the social fabric began to unrav­ work off the support they receive. Workfare some jobs obscures these broader benefits of el when the welfare system moved beyond programs could be both successful and bene­ a federal minimum wage. aiding the truly needy to providing assist­ ficial if they offered the dignity or the expe­ Few jobs in the secondary labor market, ance to the working poor. This view encour­ rience of constructive employment to the where most low-wage workers are concen­ ages indolence and condemns the welfare AFDC population which realistically may be trated, are stable enough to ensure full­ system to failure. capable of self-support. Given careful time, full-year employment. For these work­ HELPING THE POOR AND THE UNEMPLOYED IS screening, pre-employment counseling and ers the federal minimum wage remains the COUNTERPRODUCTIVE sufficient incentives, welfare recipients last line of defense before slipping into Convinced that the poor and unemployed could go far toward developing positive abject poverty. Elimination of the wage are responsible for their situation and that work habits and escape poverty. The provi­ floor, favored by many conservatives, would government aid exacerbates their plight, sion of meaningful jobs at their existing undoubtedly save a few jobs, but at the ex­ true believers in laissez faire arrive at the wage scale could induce welfare recipients pense of swelling the ranks of the impover­ inevitable conclusion that poverty is an un­ to voluntarily opt for workfare, eliminating ished. Required to pay a minimum wage, avoidable natural state of affairs, accepting some of the more distasteful associations of some employers may be encouraged to the notion that some individuals must fail the programs with punishment for per­ invest more in the training of their workers, even in the most affluent society. The pen­ ceived moral deviance. thus raising productivity and enhancing the alties of failure cannot be softened, they The existing welfare system gives partial employability and self-sufficiency of these contend, because government intervention recognition to the interrelationships be­ workers. to alter market outcomes would diminish tween work and welfare, helping many For prospective workers, the federal mini­ the rewards for achievement and undermine Americans and allowing some flexibility for mum wage provides an incentive to rely on the motivation and moral character of those movement in and out of the labor market. earnings rather than on welfare. Torn be­ it sought to help. Yet sharp restrictions on aid to the working tween the known benefits of dependency Implicit in this view is the belief that gov­ poor, exacerbated by the Omnibus Budget and the risks of an unstable job market, ernment programs have merely displaced Reconciliation Act of 1981, still confine these workers are more likely to choose the prior private efforts and that the withdraw­ some recipients to dependency and threaten latter if the monetary reward is sufficiently al of federal aid would result in no net loss, to create a permanent underclass. A public high. Lowering it to an ineffective level­ and possibly a net gain, of resources avail­ policy that expects low-income Americans since January 1981 the real minimum wage, able to combat the nation's social problems. to make rational calculations regarding the adjusted for inflation has declined by 2.3 The conservative thesis of private initia­ costs and rewards of work as compared to percent-could have reduced work incentive tive and charitable giving appears more welfare must ensure that work is more re- September 17, 1985 EXTENSIONS OF REMARKS 24015 munerative than welfare. Past federal ap­ to self-support and economic advancement. Federal spending, and we are going to have proaches to combat poverty have fallen far Yet if the nation is to avoid the debilitating to begin with the out-of-control Reagan de­ short of this fundamental goal. effects of its emphasis on income mainte­ fense budgets. To minimize conflicts between work and nance, there is no alternative to reviving the welfare, federal programs in aid of the poor promise of opportunity and the creation of Next, we need to promote efforts to find must recognize the limitations of private jobs. When the nation discards today's pre­ jobs for, and retrain workers who have lost labor markets in offering employment op­ vailing negativism it should turn to this their jobs because of import competition. portunities that permit the unemployed and urgent task of broadening access to opportu­ The administration's position in this re­ the working poor to escape poverty. The nities for work and self-advancement for all spect has been one of callous indifference, world of opportunity, upward mobility, and Americans. seeking large cuts in the Job Training Part­ adequate wages envisioned by conservatives does not exist for large segments of the low­ nership Act, and the termination of the income population. THE TRADE CRISIS Trade Adjustment Assistance Program, A LESSON WE SHOULD HAVE LEARNED both of which provide assistance to dislo­ One of the clearest lessons arising out of HON. JOHN F. SEIBERLING cated workers. We have simply got to rec­ America's experience with the welfare OF OHIO ognize that our workers are a resource of system is that poverty cannot be eliminated IN THE HOUSE OF REPRESENTATIVES enormous value and potential, but that the solely through a reliance upon income job of retraining and relocating dislocated transfers. Income maintenance certainly is Tuesday, September 17, 1985 workers cannot be left solely to the private an essential component of any comprehen­ Mr. SEIBERLING. Mr. Speaker, the huge sector, as the Reagan administration appar­ sive antipoverty effort, but a strategy rely­ trade deficits which have accumulated ently wants to do. The House Democratic ing upon transfers alone can neither en­ under the Reagan administration have hance self-sufficiency nor avoid conflicts in caucus task force on employment and labor markets. become a "front burner" issue on both training, on which I serve, is in the process In a society in which the wages of millions sides of the aisle in the Congress. Even the of putting together a comprehensive recom­ of workers are too low to lift them out of Reagan administration, which has long mendation for employment and training poverty, the provision of adequate cash as­ turned a deaf ear to calls for constructive programs, and I hope the Congress will sistance to the nonworking poor, if unac­ action on the trade crisis, is at last ready­ translate those recommendations into legis­ companied by incentives to supplement as­ ing a trade package for consideration. lation. sistance with earnings, inevitably raises seri­ The President and the Congress have Unfortunately, the Reagan deficits have ous questions of equity and generates strong available to them a wide range of responses political opposition among taxpayers. In ad­ left the Congress severely limited in its dition, income transfers large enough to lift to the trade crisis. Clearly, there are strong ability to fund new programs to deal with low-income households above the poverty pressures for enactment of "protectionist" the dislocations caused by the trade crisis. threshold, if not tied to work effort, would legislation. Under limited circumstances, In an August 22, 1985, column in the Arkon trigger large drops in labor force participa­ temporary quotas or tariffs may be a. useful Beacon Journal, David Broder notes that tion or force massive public expenditures to short-term solution to import competition many respected economists are increasing­ the nonpoor in order to preserve acceptable for specific industries. It would be cata­ work incentives. Political and economic re­ ly concerned that the economy is beginning strophic if our key industries, such as auto, to stagnate. As Border points out, the alities have contributed to the demise of steel, rubber, textiles, electronics, footwear, successive guaranteed income schemes "standard Keynesian prescription for deal­ during the past two decades and demon­ and so on, were to collapse because of the ing with a recession is to cut taxes and/or strate the need for federal strategies that flood of imports. Congress cannot sit idly increase Government spending and thereby assist both the working and dependent poor. by and let this happen. Limited import re­ strictions can and have bought time to stimulate demand, in hopes of bringing the While the rhetoric of the Great Society economy out of its nose dive." But the huge and subsequent initiatives have often placed enable domestic industries to retool to heavy emphasis on the expansion of eco­ maximize production efficiency and quality deficits which have occurred as a result of nomic opportunity for the less fortunate, to enable them to compete on an equal 5 years of Reaganomics have left the Gov­ this promise has never been fulfilled footing with their foreign counterparts. ernment with no room to apply such reme­ through a sustained and adequate commit­ But broad-brush legislation designed es­ dies. ment of societal resources. Many of the di­ At a July meeting of Senator GARY lemmas posed by the welfare system-per­ sentially to punish foreign countries for their trade practices in general, rather than HART'S Center for a New Democracy, dis­ verse incentives discouraging work by wel­ cussions centered on alternatives to such fare recipients, neglect of the needs of the dealing with specific industries and specific working poor, high youth and minority un­ trade problems, seems to me to run a sub­ traditional Federal pump priming, with the employment, and burgeoning costs of uni­ stantial risk of being counterproductive. At consensus being that, absent governmental versal entitlements-arise from an inad­ a minimum, enactment of such legislation flexibility to deal with a recession, the Gov­ equate emphasis on the extension of em­ could well provoke sharply retaliatory re­ ernment should encourage increased flexi­ ployment opportunities. Beyond fundamen­ sponses from the affected countries, bility in the labor market. tal guarantees of equal access and civil prompting them to shut their doors even One solution, advocated by Pat Choate of rights, the welfare system's attempts to tighter to American exports. That would be TRW, is to upgrade the existing U.S. Em­ broaden opportunity have relied upon rela­ ployment Service in order better match tively small and often sporadic investments in nobody's best interests. to in job training, public employment, compen­ It's evident that the key contributor to dislocated workers with existing jobs. satory education, and meaningful work in­ the trade problem we face is the adverse Choate noted that the matching system "is centives. These initiatives, despite yielding impact of the imbalance between the dollar barely functioning. Only 7 percent of job­ promising results, have fallen far short of and foreign currencies. Our strong dollar seekers receive counseling, only 2 percent their necessary role as equal partners with acts as an export "tax" on American prod­ receive training and less than 25 percent income maintenance in advancing the goals ucts shipped overseas, making them less are eventually placed in jobs." Choate also of the welfare system. To help the millions competitive in foreign markets. And the argued for better retraining programs, in­ of the unskilled and deficiently educated, it is necessary to recognize that work and wel­ strong dollar acts as an import "subsidy" cluding tax stimuli for employer retraining fare go together as an appropriate public for underpriced foreign products, giving and job creation. policy. them a strong price advantage in American According to the Broder article, another The difficulties associated with the expan­ markets. solution, advocated by Prof. Martin Weitz­ sion of economic opportunity through the Since the strong dollar is being fueled by man of MIT, is "shifting the basic compen­ welfare system are substantial, ranging our huge Federal deficits, our first course sation system so that less of a worker's from the technical and economic to the cul­ of action must be to reduce the deficit. income comes as wages and more as profit­ tural and political. Certainly the heavy reli­ That is going to take fair and balanced sharing. That way, he said, fewer people ance upon transfer programs in recent years reflects the fact that assurances of income action to stem the hemorrhage of Federal would be laid off in the next recession and security tend to be less threatening to estab­ revenue which began with the ill-planned more firms would survive." lished interests and therefore easier to 1981 Reagan "supplyside" tax fiasco. It is I agree with Professor Weitzman's as­ adopt than broader efforts to open avenues also going to take further reductions in sessment. In fact, I have reintroduced legis- 24016 EXTENSIONS OF REMARKS September 17, 1985 lation to encourage the implementation of tion stagnated and home construction wages and more as profit-sharing. That way, just such a gain sharing system. Under my slumped. While few economists were pre­ he said, fewer people would be laid off in bill, the Productivity Improvement Act of dicting a recession, the head of Chase Econ­ the next recession and more firms would 1985 (H.R. 1183), employers would be of­ ometrics said, "There is no reason to expect survive. a major improvement." Hart provided a public service by launch­ fered a tax credit of up to 10 percent of the Rudolph Penner, the head of CBO, said, ing the discussion on steps now that would bonus wage in the fi;rst year of operation. "The economic outlook remains very uncer­ ease the pain of the next recession. But it The advantages of such a system are clear. tain," and he warned that with deficits in will take more than discussion. We better Employees would be encouraged to maxi­ this time of general "prosperity" running at recognize that the familiar medicine of mize their productivity on the assembly more than $200 billion a year, they "don't counter-cyclical deficit spending has been line, since the bonus would reflect such allow any margin for safety if the economy squandered by the foolish fiscal policies of productivity growth. Over the past decade, performs worse than expected." the past five years. If we don't find new American productivity has grown only 23 All this makes it pertinent to ask just medicine, we may not recover next time. percent, while Japanese productivity has what this country would do if the economy staggers into another slump under the [From Business Month, August 19851 grown over 100 percent. By giving workers burden of the incredible debt accumulated a vested interest in productivity growth, during the Reagan years. SPREADING THE BONUS BUCKS American manufacturers can close the gap. The standard Keynesian prescription for Such a bonus wage can also promote job dealing with a recession is to cut taxes and/ A change is occurring in the compensation security. In times of economic decline, or increase government spending and there­ of hourly employees. Bonuses-once re­ manufacturers would have an opportunity by stimulate demand, in hopes of bringing served for top executives, salesman and oc­ to reduce the bonus wage-without cutting the economy out of its nose dive. That is casionally for middle managers-are now for the base pay itself-and keep workers on what Reagan did in 1982 and eventually it everyone. line, instead of laying them off to maintain worked-but at terrible cost to the budget. With a few exceptions, such as Chrysler's At a session last month of his personal award of $500 to all employees in celebra­ profits. The resulting job security cannot think tank, the Center for a New Democra­ tion of its record 1984 sales, companies are help but to produce greater employee loyal­ cy, Sen. Gary Hart, D-Colo., assembled a paying bonuses to workers in lieu of raises ty and a vast improvement in employer-em­ group of people to see if they had any ideas or as their share of productivity improve­ ployee relations. other than traditional "pump-priming" rem­ ments. Gain-sharing bonuses have been An article in the August Dun's Business edies. When I read the transcript of that around for decades, but new industries such Month provides further substantiation of session, I realized that there are other op­ as airlines and banks have started using the potential benefits of this kind of bonus tions. But all of them would require more them. "The next horizon for gain sharing is wage system. Although acknowledging re­ courage and imagination than either Con­ formerly regulated companies such as utili­ gress or this administration has shown. ties," says James Lagges of consultants A. T. sistance to these plans, many companies The main point that emerged was that­ Kearney, Inc., and "beyond that come large have found them extremely useful. A GAO lacking flexibility to apply traditionally financial service organizations-anything study of some 1,000 companies with com­ fiscal stimulus-the government should try with a lot of paper pushing." pensation tied in part to productivity to promote increased flexibility in the labor Bonuses in the form of lump sum pay­ growth, found a 30-percent savings in labor market. ments instead of permanent raises cost; 81 percent of the respondents reported That point was stressed by economic con­ are a product of the worst recession in post­ improved labor-management relations, sultant and author Pat Choate of TRW, ec­ war history and soaring unemployment. nearly 50 percent had fewer grievances, onomics writer Robert Kuttner and Profes­ Don Hirsch, vice president of corporate and nearly 40 percent reported lower ab­ sor Martin Weitzman of the Massachusetts labor relations for Kroger Food Stores Institute of Technology. It was that point to maintains, "This is the time for manage­ senteeism and turnover. which Hart, eyeing a second bid for the ment to strive to be competitive. We've got Mr. Speaker, the breath and depth of our presidency in 1988, seemed most responsive. to make the most of it while the pendulum trade imbalance demands action from the How do you get more flexibility in the job is swinging our way. Because it will swing Congress. We cannot ignore the problem, market? back eventually." but we should not, in our haste to alleviate Choate offered several practical answers. And LSPs are a relatively painless way for it, take action which we will come to Improving the existing U.S. employment companies to save money and for unions to regret. We should vigorously explore con­ service is one way to get a better match of save face. As Audrey Freedman, labor structive ways of retraining and relocating people and jobs. Today, he said, "that market specialist for The Conference Board system is barely functional. Only 7 percent points out, "The LSPs look like they are dislocated workers. We should improve the of job-seekers receive counseling, only 2 per­ more than they are. They look good for services offered by our employment service. cent receive training and less than 25 per­ both management and the union leader­ And we should be willing to offer incen­ cent are eventually placed in jobs." ship-they are noticeable and you get a tives to improve productivity in the work­ The problem, he said, is miserliness. "For bigger bang for the buck." force and improve labor-management rela­ example, fewer than half of all, states have Starting in October 1983, with a ground­ tions. computerized offices. The Department of breaking three-year agreement between The full text of the David Broder and Labor still exchanges information about job Boeing Co. and the International Associa­ Dun's Business Month articles follow: vacancies between states by mailing it to tion of Machinists, a wide-ranging array of Albany, N.Y., where it's sorted by hand and unions have agreed to LSPs. According to [From the Beacon Journal, Aug. 22, 1985] then mailed out again to the individual the Bureau of Labor Statistics, auto work­ DESIRABLE GoAL: MORE FLEXIBILITY FOR states." ers, paper workers, government employees, LABOR Choate estimated the cost of computeriz­ meatpackers and truckers are among the WASHINGTON.-In 1981, the year the last ing the system-as presidents as far back as major unions that accepted LSPs with recession began, the federal government Richard Nixon have talked of doing-at $60 meager or no raises in the past eighteen had a deficit of $78 billion. Two years later, million. The time to make that investment months. when that recession had run its course, the is now, not after the next recession has Often bonuses are in lieu of wage in­ deficit had almost tripled to $207 billion. begun. creases in the first year or more of a multi­ This year, according to the latest Congres­ Both Choate and Kuttner argued persua­ year contract. General Electric recently set­ sional Budget Office estimate, the deficit sively that, whether there is a recession or tled with the UE and the IUE for LSPs of will be $210 billion. If another recession hits not, retraining of today's workers for tomor­ 3% in the first year of the contract and a and the pattern of the past holds, one can row's jobs has to be given higher priority. 3% wage increase in the last two years. imagine annual deficits ballooning by the One way to do it is to shift some unemploy­ McDonnell Douglas Corp., after a bitter end of the Reagan administration to the ment compensation funds into training pro­ seventeen-week strike, settled with the staggering level of more than one-third of a grams and even subsidized re-employment. UAW for bonuses of 3% a year, period. trillion dollars a year. Another is to change the tax law so that Boeing gave LSPs of 3% a year and COLAs That nightmare possibility has entered employers get the same write-offs for im­ of 3% a year. Kroger agreed on LSPs with the discussion in Washington because of the proving their employees' skills as they do the United Food and Commercial Workers recent spate of nervous economic indicators. for modernizing their plant and equipment. in various sites. One in rural Georgia-to On successive days last week, you could Weitzman offered a more far-out notion: cite the least generous-called for sums of read that business sales dropped, invento­ shifting the basic compensation system so as little as $1,000 spread over three years ries rose, factor output and capacity utiliza- that less of a worker's income comes as with wages remaining steady. September 17, 1985 EXTENSIONS OF REMARKS 24017 The primary savings for employers in we've had to accept them. The only alterna­ known), an investigation of gain sharing is LSPs come from eliminating the compound­ tive was to strike." In May, the Transport on the agenda for the next round of talks, ing of wage gains in the next year. Tom Workers Union membership narrowly re­ at the union's insistence. Says UAW local Baker, district president of the lAM unit jected a tentative pact with American Air­ president Berghoff, "Any form of gain shar­ that negotiates with Boeing, notes that an lines that offered an LSP of $750 in the first ing would be better than the status quo. If LSP would have to be 3% in the first year. year. $1,000 in the second and $1,500 in the the company is sincere, it will bring people 6% in the second and 9% in the third to third in lieu of increases. As one member together. We"ll make them rich if they match annual raises of 3%. The lAM calcu­ put it, "After taxes you don't get much, and treat us right!" lates that one major aerospace company once the bonuses end, you're still making saved an average of $2,665 per employee a the original wage." year by giving bonuses in the first two years A separate but related development is a HILLSDALE HAY, INC.-A RE­ and a raise in the third year instead of a renewed emphasis on gain sharing SOURCEFUL MARKET FOR HAY raise each year. On top of that the next con­ plans. Gain sharing is moving from manu­ tract talks begin at an hourly wage base facturing to such paper intensive environ­ that does not include the bonus. ments as bank back offices and repetitive HON. CARL D. PURSELL Another major savings is in overtime and labor environments as hospital laboratories. OF MICHIGAN fringe benefit costs. otherwise known as Security Pacific Corp., Maryland National IN THE HOUSE OF REPRESENTATIVES "flow-through" increases. With no raise in Bank and a major Canadian insurance com­ the base rate, overtime, vacation and holi­ pany among others, have instituted GS for Tuesday, September 17, 1985 day pay, military and jury duty and pension its word processors. And GS has spread Mr. PURSELL. Mr. Speaker, recently, contributions are all proportionally less. from department to department at St. when I was home during the August recess, Kroger's Hirsch reports that the supermar­ Lukes Hospital, Kansas City, Missouri, I met with some farmers in my district in ket chain's bonus bargain saved 15%-to-18% starting in the production-type departments a year of the wage increase by eliminating and now encompassing top executives. order to better understand the issues facing flow-through increases. Similarly, economist Typically. GS plans are based on improve­ them. I am pleased to return to Washing­ John Zalusky of the AFL-CIO estimates ments over historical productivity levels, ton and relate to the Congress how one that GM is saving 18%-to-20% a year on the with awards paid in cash to groups of em­ group in Michigan is trying to improve the wage increase with the LSPs instead of a ployees according to a predetermined for­ farmers' economic situation. These men dollar equivalent permanent wage increase. mula. Most plans cover either all employees have formed the Hillsdale Hay, Inc. This Kroger's Hirsch has bought concessions or a large group to avoid the appearance of organization will allow farmers to buy from unions on overtime, night premiums pitting employees against each other. stock in the company which will hold and holiday pay by using bonuses as a The most popular are: Improshare, invent­ sweetener. In Columbus, Ohio, Kroger ed by consultant Mitchell Fein, which meas­ weekly hay auctions beginning in Novem­ scaled back Sunday pay to time and a half ures output per man hour of labor; Scanlon ber. I am submitting an article on this from double time, got other contract conces­ plans that base bonuses on the ratio of pay­ project printed in the Michigan Farmer sions and no wage increases in exchange for roll costs to sales; and Rucker plans, which and hope it will be an inspiration for other bonuses of roughly $1,000 each in the first are marketed by the Eddy-Rucker-Nickels hay farmers in the Nation: two years and under $500 in the third. "It Co.. based on the ratio of payroll costs to [From the Michigan Farmer, Aug. 17, 19851 speeds up the whole negotiating process," sales, minus the cost of materials and sup­ Kroger's Hirsch contends. plies-a rough approximation of net operat­ A NEW WAY To MARKET HAY In many cases, union members find bo­ ing income. Improshare's Fein reports that nuses hard to resist. The LSP is a nice hunk in its first year at a New Jersey hospital, a What started as a project to provide more of change that workers do not otherwise GS plan gained both the workers and the opportunity to farmers in Hillsdale County find easy to accumtilate, with the flow­ hospital $1.1 million each. has blossomed into what might be a bonan­ through losses paling in · significance. As Whether or not GS improves productivity za for all of Michigan. Alan Lee, director of collective bargaining is debatable. A 1985 Conference Board It's a market. A market for hay. for the UFWC says, "We didn't necessarily survey of 1,000 large industrial firms found The next two weeks may be critical ones. recommend ratification [of the Kroger con­ that of the roughly 25% of them that had By Sept. 1, the organizers of Hillsdale Hay. tract], but it may be a case of the member­ GS programs in effect, no significant pro­ Inc.• need to know who wants to sell how ship being short-sighted." Tom Baker, dis­ ductivity gains were reported. But the much hay and when. They plan to hold trict president of the lAM unit that negoti­ author of the study. economist Audrey weekly auctions. in Litchfield, during the ates with Boeing, adds, "It's no coincidence Freedman, thinks the result may be due to strong part of hay sales season. mid-Novem­ that that $745 comes right before Christ­ survey design. A General Accounting Office ber to mid-March. mas." study of some 1,000 GS plans found that To participate in the hay sales. you must Baker also points out that at the time of those in operation more than five years become a member of Hillsdale Hay, Inc.. the settlement, District 751 had 8,000 mem­ averaged almost 29% savings in work force and that costs $100. It's a one-time invest­ bers on lay off, tahe State of Washington cost and those with under five years aver­ ment in stock. had the third highest unemployment in the aged savings of 8.5%. The GAO also cites In addition, a sales commission of 10% will nation, and the Seattle area the highest in improved labor relations among 81% of re­ be charged, but that can be returned to the state. Boeing spokesman Jim Morrison spondents, 47% had fewer grievances and members as dividends if the corporation says simply that. "With wage increases and 36% had less absenteeism and turnover. does well. The board of directors met Aug. 1 uncapped COLAs over the prior 15 years, by Obiviously, peer pressure to perform is and decided that all who sign up before 1983 a janitor was making $23,000 a year. one of the central tenets of GS programs. Sept. 1 will pay a 9% sales commission in­ We had to ask how long we could have these And while it is certainly a factor, says Im­ stead of 10%. without pricing ourselves out of the proshare's Fein, "Peer pressure won't run If you want to be part of the action, you market." the shop; it's exaggerated. You can't escape should contact Max Drake, 77 N. Broad St.. The UA W local at McDonnell Douglas's the unpleasant duties of management." Hillsdale, MI 49242. The office phone is Long Beach, California plant accepted a And GS plans are remarkably popular (517) 437-3735. bonus only as a last resort. The company with employees. Firestone Tire & Rubber Drake is Hillsdale Hay's "ag resource had no new orders in early 1984, and the Co. proposed dropping its GS plan when person." He's been involved in the project UAW membership had lost some $7,000-to­ workers at its Hamilton, Ontario plant re­ since its inception a year ago. He explained $10,000 in wages in the longest strike in ceived no GS bonuses for a considerable the project's history and his role in it. aerospace history . When jumbled product line. But the rubber work­ ager of the Northern Ohio Breeders Asso­ some 1,200 members returned to work under ers insisted on keeping it, citing improved ciation for 35 years, he retired and moved to the threat of dismissal, says local president morale and smoother labor relations. Reading. .Bob Berghoff, "We had to go back, other­ Indeed, if the McDonnell Douglas Long About a year ago, Hillsdale County's In­ wise the company might have had so many Beach plant workers are any indication of dustrial Development Commission, realizing people cross [the picket line], they could future trends, GS plans may in the end sup­ that agriculture was the leading industry in have voted the union out. But we'd do it plant LSPs. After the bitter strike at the the county, sought a federal grant to re­ again if we had to." plant over LSPs in lieu of raises

51-059 0-86-38 !Pt. l7l 24018 EXTENSIONS OF REMARKS September 17, 1985 take a hard look at agriculture. Members in­ Perhaps in the future, some enterprising Item: Last week the Commerce Depart­ cluded Bob Sloane, Jonesville, owner of the person may choose to start a hay compact­ ment confirmed the sharpest one-year drop Granery; Charles Zieler, Hillsdale poultry­ ing business in association with the Litch­ in poverty in 16 years. It was tied to last man; Jerry Raker, Litchfield vegetable and field auction. year's 6.8 percent surge in real GNP growth, bedding plant grower; Keith Brown, Jones­ Right now, one service will be offered that which was induced by tax reduction rather ville dairyman; Randall Wigen, Reading will allow those with top quality hay to than by make-work or social welfare pro­ com grower; Ron Newton from Reading ele­ prove it and get paid for it. grams. vator; and Rex Smith, a Waldron banker. Hillsdale Hay, Inc., is working with Litch­ Is the glass half empty or half full? Those Their mission: "They were to look at the field Analytical Services, a private laborato­ taking the half-full view could cite addition­ total agriculture of Hillsdale County and try ry that, for $10, provides near-infrared anal­ al indicators: infant mortality rates below to find opportunities for further develop­ ysis . The service is fast, Drake said. their 1980 levels; stepped-up collections of ment." NIR tells what the feeding value of hay child support from delinquent fathers; one Drake was "recalled from retirement" to is-how much protein it has, how digestible of every five new jobs since 1982 going to a work half-time on the project. it is, etc. In the future, Drake said, perhaps black person. Hay became a leading candidate early. "It a scale will be used to label hay according to Then again, some of what the CDF said had excellent potential as a cash crop," relative feeding value . "Good hay, should shake us up: Only 67% of America's Drake said. "It does better than com and tested is worth $10 to $20 a ton more," he black children have an employed parent, soybeans now." says. compared to 86% of white children ... In In addition, 50% of the farmers in the The board of directors of Hillsdale Hay is 1982, over 55% of all births to black women county are part-timers. This was seen as a made up of the following people: were out of wedlock ... Among black plus for hay, since these may be candidates President Raymond Oates, Waldron, a women under age 20 the proportion was for a summer labor-intensive crop. hay grower and hay dealer; vice-president 86% ... Eight out of every 10 white chil­ Then there was the nature of the county Joe Griner, Horton (Jackson County); Sec­ dren live in two-parent families; only 4 out itself. Named Hillsdale for its hills and retary-treasurer Paul Birdsall, Hillsdale, a of 10 black children do ... Black children dales, the land is erodible when under a school teacher who makes 300 acres of hay are ... four times as likely to be mur- heavy row crop regimen. during the summer; and directors Rex dered ..." "High com and bean prices have led to Ryan, Hillsdale; Gary Miller, Eden Ohio; High GNP growth will not be enough. To the plowing of land that never should have Don Hoopes, Quincy ; John judge from new data on the ineffectiveness been plowed," Drake said. "Some is losing 30 Ellingson, Britton : Bob of much welfare spending, neither will am­ tons and more of soil a year. It's to steep Sloane, Jonesville; and Jim Emens, Wal­ bitious federal programs. What we will have even to no-till." dron. is an irresistible force-economic growth­ Not surprisingly, the county Soil Conser­ As the list of directors shows, this project eventually meeting an immovable object­ vation Service, the Soil Conservation Dis­ is bigger than Hillsdale County. hard-core poverty, and a culture of depend­ trict, and the Agricultural Conservation and From a purely local standpoint, Hillsdale ency that Franklin Roosevelt called "a nar­ Stabilization Service are enthusiastic about promoters hope that Hillsdale County will cotic, a subtle destroyer of the human the hay idea. be a big winner from this project. Hillsdale spirit." The project encountered some problems. Hay's slogan is "Don't wash away; go to When it comes to poverty, conservatives A meeting held last November drew only hay!" and administration supporters say the glass 100 people, a disappointing turnout. Drake For the first time this year, the county is half full, while CDF and its liberal allies theorizes now that perhaps local farmers fair will have a hay judging. Exhibitors blame the president for a glass half empty. may be unequipped to handle hay, or that show a bale plus a wafer, and Litchfield An­ What should be discussed is whose agenda is cash rents are still high enough to encour­ alytical Service tests samples free. more likely to fill the glass. age them to rent out their ground instead of But right now, Drake is seeking support The glass could be filled by an agenda farming it themselves. from wherever he can find it. The key is that promotes individual enterprise, public But there was one big plus. Those who at­ making the hay market work, getting safety and traditional values. Indeed, 20 tended the meeting came not just from enough tonnage consigned so 400 or 500 years after the 1aunching of the Great Soci­ Hillsdale County but from eight others. tons can be auctioned weekly. Minimum ety, it is surprisingly easy to envision a Re­ Hillsdale is not the first county to target consignment is one ton. publican war on poverty. It might consist of: hay as a desirable crop. In the Thumb, hay Once established, the market may do Tax Relief: The president's tax-simplifica­ would be a good addition to soil-damaging something no other force has been able to tion package would drastically reduce the rotations heavy on sugar beets and navy do: federal tax burden on the under-$15,000 beans. The Cooperative Extension Service Get farmers, in Hillsdale County and else­ group. For helping low-income working fam­ and Soil Conservation Districts there have where, to grow alfalfa on the land that ilies, it was the only tax plan to earn a per­ tried to encourage more alfalfa because of should be protected from the debilitating ef­ fect rating from the House Select Commit­ its benefits to the soil. fects of row crops. Clearly, the land needs it. tee on Children, Youth and Families. It But usually the efforts fail. Not only does Maybe the lack of price for com, plus the helps to make work more rewarding than hay require its own complement of equip­ benefit of a sales point for hay, will turn the welfare. ment, there is another big problem: How picture. Enterprise Zones: Owning a small business does one market this bulky stuff in a non­ is one of the greatest work incentives and livestock area? family-strengtheners in history. Enterprise What Hillsdale Hay is doing may be the A REPUBLICAN WAR ON zones have twice passed the Senate and answer. Drake expects this auction could POVERTY even won Walter Mondale's blessing. But draw hay from a wide area. "There is no the House blocks them. good hay market in the tri-state area," he HON. NEWT GINGRICH Job Training: The administration, with says. Still, a lot of hay moves through that the Job Training Partnership Act, replaced area into forage-deficit dairy areas in the OF GEORGIA leaf-raking with skill-making. Over half the South and to horses in Kentucky. IN THE HOUSE OF REPRESENTATIVES trainees find permanent jobs in the private Drake says farmers wanting to sell cash Tuesday, September 17, 1985 sector. This approach can be expanded: Bob hay should think in those terms. With hay Woodson of the National Center for Neigh­ possibly in short supply in Michigan this Mr. GINGRICH. Mr. Speaker, a few borhood Enterprise suggests making relief year because of dry weather, a lot of hay weeks ago the Washington Post printed an payments available in lump sums for train­ may find a local market. editorial by Mr. Frank Gregorsky entitled ing programs or as risk capital for starting a But hay-sellers should think in the long "A Plan for a Republican War on Poverty." business. term as well. Drakes hopes they'll support I urge my colleagues to review this article. Youth Opportunity Wage: Willing work­ this market now-when it needs support to [From the Washington Post, Sept. 2, 19851 ers age 16-21 should not be subject to regu­ get going-and that they'll plan on it when lar minimum-wage laws when looking for growing hay in future years. A PLAN FOR A REPUBLICAN WAR ON POVERTY temporary summer jobs. The National Con­ Those looking to a Southern hay market ference of Black Mayors agrees, recognizing should grow alfalfa with some timothy in it. Item: On June 3, a study by the Children's that the chance to begin learning the skills That satisfies the horse market. They Defense Fund sketched a crisis for black and attitudes of job-holding means more in should bale in heavy bales-55 pounds and children. The CDF called for more jobs for the early period than how much one gets bigger-to make shipping easier. teens, more subsidized housing, and more paid. It should be green in color and free from birth-control clinics. A CDF staffer priced Public Housing: The most responsible ten­ dust and mold. the desired agenda at $14 billion. ants should get to manage the properties, September 17, 1985 EXTENSIONS OF REMARKS 24019 with the chance to buy them over time. In quickly responding to each command to Next came the Monterey County Health experimental cases. drugs, vandalism and align the grey fiber-glass tanks piled one on Department, which is charged with enforc­ vacancies have dropped sharply. Look to top of the other in the wood-framed ship­ ing regulations on the taking of oysters, England: Margaret Thatcher's Tories have a ping crates. At each movement, the old fork­ mussels, clams, and scallops-but not abalo­ housing strategy that has created anti-prop­ lift belches another blue cloud into the air. ne. Those other shellfish take bacteria out erty tax and pro-free market political sup­ The truck Lockwood is· loading will haul of the water and store it in their guts. The port among lower-income former Laborite the 24 tanks in this shipment north to Oak­ abalone doesn't. Moreover, you don't eat the voters. land. There another giant forklift will trans­ abalone gut. Health Department officials Stopping Crime: Serious crime was falling fer the entire platform onto a sea-going overlooked these points and decided to in­ even before the effects of the anti-crime leg­ barge. Lockwood is leaving Monterey. A vestigate Lockwood's operation. He spent islation pushed through Congress in 1984 decade before he had set out to create a new the better part of a month proving to them were felt. But it will always be worst in poor industry. He would raise abalone, one of the that abalone was biologically different from neighborhoods. No group that speaks out world's most expensive shellfish, on a mass the other shellfish and convincing them "for the poor" is too credible if it lacks a scale "like chickens and turkeys." It was a that the omission of abalone from their plan to further cut crime rates. Yet how risky proposition, but he succeeded, at least mandate was not merely an oversight. many Republicans think to market their with abalone. But the state of California "When you do something new," says Lock­ tough stance on crime as real concern for and the 55 different government agencies wood, "bureaucracies don't know how to poor America? that claimed the right to interfer in some handle you." There would be universal support for a critical way in Lockwood's business proved Lockwood's system required a supply of crackdown on violent juveniles. Their of­ too much of a challenge. So today he is undenatured alcohol, as well as some drugs fenses at present do not count toward a heading for the Kona coast of Hawaii, and antibiotics for testing and treating the "police record." That means hardened where he has been promised a more hospita­ abalone. To get them he had to apply for criminals don't technically start their hard­ ble reception. permits and face inspections from the U.S. ening until age 18. But stiff sentences early An abalone is a mollusk, similar to a clam Treasury Department, the Food and Drug prevent crimes later. This is called "targeted but with only half a shell, that thrives in Administration, the Justice Department's sentencing," and innocent poor children the waters off California. If takes eight Drug Enforcement Administration, and would be alive today if there were more of years to grow to maturity, then measures California's Board of Pharmacy. it. about eight inches across the length of its In ths spirng of 1975, the National Marine When it comes to welfare-state approach­ oval shell and weighs about four pounds. Fisheries Service, a federal agency, advised es to poverty, the liberals are intellectually Abalone meat rates as a delicacy, particular­ Lockwood that the most effective way to bankrupt. The government is just plain ly appeciated by the Japanese, and only the sterilize water is to bubble ozone through it bankrupt. Fighting poverty these days fanciest restaurants in California serve it. It at a low-concentration level. At the concen­ means accommodating both fiscal reality is customarily deep-fried in bread crumbs, tration involved, ozone is harmless to and human nature. The new poverty num­ like Wiener schnitzel, and in fact tastes a bit people, though it can make them lighthead­ bers should be the foundation from which like veal. The abalone catch today, however, ed, in which case they should leave the area. Republicans innovate-using approaches is only 10 per cent of what it was twenty The feeling quickly disappears. Monterey they already happen to be comfortable years ago. The meat can cost more than $25 Abalone Farms bought a small ozone gener­ with. per pound, and restaurant patrons rarely ator, and though neither Lockwood nor pay less than $20 for a very thin slice. anyone else had ever felt any effects from In the early Seventies, the continuing de­ the ozone, he allowed only two employees WHY AMERICA CAN'T COMPETE cline in the abalone harvest inspired Lock­ into the room in which it was used. wood to consult with a poultry geneticist Early one morning a few months later, in­ HON. DON YOUNG about the possibility of breeding the things spectors from the California Division of In­ and raising them commercially. They specu­ dustrial Safety showed up at OF ALASKA lated about a process of highly controlled the abalone farm and said they had been IN THE HOUSE OF REPRESENTATIVES nutritional, environmental, and genetic con­ tipped off to a severe ozone hazard inside. Tuesday, September 17, 1985 ditions. With $250,000 in seed money from a Once the CAL-OSHA men had gotten in, handful of investors, Monterey Abalone Lockwood realized they didn't have any Mr. YOUNG of Alaska. Mr. Speaker, Farms was born. ozone-monitoring equipment. The chief in­ sometimes when Congress yells the loudest Lockwood assumed that his time would be spector revealed that they intended to con­ about something, it's our own fault. Right spent on research and business develop­ duct a wall-to-wall safety inspection of all now, when everyone is clamoring for trade ment. By 1975, he had perfected novel tech­ aspects of his business. Lockwood replied barriers because our goods can't compete niques for spawning and raising abalone in that since that was neither the expressed abroad, small businesses are being shut his lab, and he now stood ready to enter the purpose of their visit nor the reason he'd al­ down by bureaucracies established and production stage. After raising an additional lowed them in, they would have to leave. $1 million, he remodeled an old sardine can­ They refused and quickly cited Lockwood charged with carrying out laws by Congress nery on Monterey's Cannery Row. Then, for 13 violations. Lockwood appealed all and the States. Instead of embracing entre­ "as soon as it became obvious that we were a thirteen. preneurship and the creation of new wealth business," the government got involved. One violation cited was a standard convey­ through new ideas, the legacy of an over­ First, Lockwood had to get a business li­ or belt hauling crates from the first to the zealous legislating spree is killing opportu­ cense from the city of Monterey, then a second floor. It didn't have enough protec­ nity in the land of opportunity. The follow­ kelp harvester's license, a wholesale fish tive covering. An employee might catch a ing story, if it fails to do anything else, dealer and preserver's license, and an oyster finger in the pulleys or the belt drives. The should make the blood boil in any red­ grower's permit. But the California Coastal conveyor belt wasn't worth the cost of re­ Commission wouldn't approve the building it, so Lockwood removed it. A blooded American. The article, entitled "A necessary land-use permits without the con­ month later, an employee developed a Lot Abalone" appeared in the August 23, sent of the California Regional Water Qual­ hernia from lugging a heavy carton up­ 1985 National Review, and I ask that it be ity Control Board . The WQCB stairs. inserted in the RECORD in its entirety. wouldn't consent. Eventually, two inspectors showed up with The article follows: Since its start in 1974, Monterey Abalone ozone-monitoring equipment. They found [From the National Review, Aug. 23, 19851 Farms had discharged sea water containing lower levels of ozone than in the air of Los the abalone's natural eliminations into the Angeles. Lockwood won ten of the 13 ap­ A LoT ABALONE ocean. Because of the multi-stage filtering peals. : Despite spending 60 per cent of his time 1965 Rambler ...... 200.00 throughout the last half of the 1970s deal­ served in the House of Representatives. 1973 Chevrolet ...... 1,199.00 ing with the regulators, by 1980 Lockwood While the law now dictates that Members actually had his business running. Among of Congress submit financial statements in Total ...... 1,399.00 his best customers were French restaurants May of each year, I continue to file this that preferred tender, young two-inch aba­ more detailed family financial report. In Household goods and miscellane- lone. But as soon as he started shipping the this way, my constituents are kept fully ous personal property ...... 8,000.00 two-inchers in quantity, the Fish and Game Department pounced. By selling undersized and completely informed concerning my fi­ Total assets ...... 220,612.98 abalone Lockwood was violating wildlife nancial status. protection laws. But they aren't wildlife, he Romano L. and Helen D. Mazzoli Miscellaneous liabilities...... 1,000.00 protested, they're farm-grown stock. STATEMENT OF FINANCIAL WORTH AS OF Net assets ...... 219,612.98 Doesn't matter, said the Fish and Game DECEMBER 31, 1984 folks, we can't tell cultivated from wild INCOME AND EXPENSES FOR CALENDAR YEAR ones, and if we permitted you to sell two­ Cash on deposit: 1984 inchers other people would slip wild ones by Lincoln Federal Savings & Income: us. They claimed "administrative conven­ Loan, account 10373390...... $3,923.53 U.S. Teasury bills charged with screening Total...... 13,838.31 American United Life Insur- every regulation for compliance with seven ance Co., policy 1116312...... 22.73 criteria. The seven points stipulated in part Individual retirement accounts: American United Life Insur- that the regulation be consistent with the Liberty National Bank & Trust ance Co., policy 1011729...... 17.59 agency's authority, that it be necessary, Co. IRA account 01-527329 .... 7,308.80 Northern Virginia Savings & that it be written in clear English that it Lincoln Federal Savings & Loan, account 5-99-76 ...... 66.24 not adversely affect small business. With Loan, IRA account 1-01- Northern Virginia Savings & prospects for an improved regulatory envi- 205323...... 2,379,55 Loan, account 5-18-241...... 77.30 September 17, 1985 EXTENSIONS OF REMARKS 24021 Northern Virginia Savings & nity pregnant with possibilities. It is a sig­ that poverty lawyers can unwittingly Loan, account 05-96-1906 ...... 78.24 nificant moment, but not for the generally become part of the vast bureaucracy Government Services Savings reported reason. It is not because this is the charged with the care and tending of the & Loan, account 80-450336-2. 396.34 first confirmed Board of Directors for the poor and thereby lack accountability to the Government Services Savings Legal Services Corporation in four years. poor. In some instances legal service pro­ & Loan, account 01-112091-0. 7.93 There have been confirmed Boards in the grams have been gravely unresponsive to ---- past and there will be confirmed Boards in major needs, concerns, and grievances of the Total interest and divi- the future . very institutions that have been a source of So what then is the significance of this injustice to the poor. The Cahn's go on to Honorariums: moment? It lies, as do so many things these note that legal advocacy can be emancipat­ Agricultural Producers, Inc ...... 1,000.00 days, in the vision of Ronald Reagan. ing; it can compel accountability in a National Grocer's Association .. . 250.00 In his usual fashion President Reagan manner which enhances the capacity of in­ Brookings Institution ...... 250.00 makes possible new hopes and new direc­ dividuals to cope on their own, to secure jus­ National Association of Broad- tions for all of us, yes even all of us con­ tice, and to avoid injury. But we will not casters...... 1,500.00 cerned about legal services, if we will but bring justice to the poor by a wholesale im­ Northern Ky. Chamber of stand back, pause a moment, and dream. portation of attorneys to swell the ranks of Commerce ...... 300.00 For our dream is grounded in a profound those care-taking officials who presently American Committee on Intl. sense of justice and love for the least of our help to perpetuate dependency. The key Personnel ...... 1,000.00 brethren. And like the dream of Martin guarantee that legal representation will not Pfizer Chemical Co ...... 1,000.00 Luther King it is rooted in a sense of what be used as a form of manipulation to gener­ Tobacco Institute ...... 1,000.00 is good about America. And what is good is ate dependency is to be found in the time­ California Farm Bureau Feder- that our creativity combined with a special honored nature of the lawyer-client rela­ ation ...... 1,500.00 kind of courage can bring about a more tionship-a relationship which makes the Agricultural Producers, Inc ...... 1,000.00 abundant, efficient, compassionate and ef­ lawyer the employee of the client, accounta­ Motion Picture Association of fective delivery of dispute resolution serv­ ble to the client and retained to use his pro­ America ...... 2,000.00 ices to individual poor people than now fessional skills as an advocate on behalf of exists. If we are to meet the challenge of his client's best interest. But the client re­ Total honorariums...... 10,800.00 maximizing access to justice for the poor, tains the ultimate power to determine what we must tap into the abundant resources of Salary: that best interest is. the human spirit and but discover the rich Inexplicably, lawyers for the poor seem to U.S. House of Representatives viens of generoisity, innovation, creativity,