Thursday, September 19, 1996 Election economics by John Rossomondo Collegian Staff Over the past Tew months President Bill Clinton has traveled cross country touting his 2.5% economic growth rate. Isn't it ironic that this is the same man who chided George Bush for his 2.6% growth rate. Some people seem to think that we have never been better economically. Investors Business Daily reported on July 26 that Clinton's "robust" economy is the worst non-reccssionary economy since Richard Nixon was president. Since World War 11, excluding years of recession, the economy has grown around 3.5% or higher on average. Clinton's economy docs not even hold a candle to Ronald Reagan’s 3.9% growth rate. Between 1981-1992 the growth in wages averaged 1.2% however since Clinton became president the economy has averaged .6% or less. While inflation has been a low 3% what good docs that do when wages cannot even keep pace with inflation? President Clinton has produced a greater percentage of temporary workers than ever before. Under Ronald Reagan, temporary workers were only 4-S% of the workforce compared to over 10% under the Clinton Administration. Unemployment might be a low 5.1% but more workers are working longer hours for less pay than ever before. The Clinton economy has produced 10 million new low paying jobs. These jobs have not merely made up for the 8.5 million skilled professional jobs that have been lost since Clinton has been president When Reagan was president the economy produced 20 million skilled white collar jobs. The loss of 8.5 million jobs and gain of 10 million jobs points to the instability of the economy. The facts are that the Bush-Clinton tax hikes have cut the economy off at the knees. Higher taxes mean that businesses and individual stop spending curtailing economic growth. In August National Review reported that the Treasury lost nearly one trillion dollars in revenue since 1990 as a result of the tax hikes. Furthermore the Wall Street Journal reported on July 1 that between 1993 and 1995 the gap between rich and poor grew at a rate equal to the Reagan and Bush years combined. Democrats say that we cannot afford any more economic growth. The truth is that nearly eleven countries have higher growth rates with lower interest rates than the United States. The Dole/Kemp economic plan was drawn up by Nobel Prize winning economists such as Milton Friedman and Martin Feldstein of Harvard. These economists predict that the Dole/Kemp economic plan would produce economic growth well in excess of 3% compared to the pitiful Clinton economy. Reagan promised a better than 50% increase in revenues as a result of his tax cut and he delivered from $6Ol billion in 1983 to $1 trillion in 1989. Economist James K. Glassman of the Washington Post explained that deficits got out of hand,because of a glut of social spending on top of defense spending caused by the Democratic Congress. The President asserts that the tax cut will cause a rise in interest rates and inflation. If his model is correct,then why did inflation plummet from around 15% in 1981 to around 5% in 1989. Interest rates fell from 20% in 1981 to 4% in 1989. Shouldn't inflation and interest rates have skyrocketed? Under the Dole/Kemp plan a 15% across the board tax cut would be enacted 5% per year increments. The average Pennsylvania family will save $1677 under the the Dole Kemp economic plan. The average family of four earning $50,000 would experience a 34% cut in their yearly income tax while a family making $lOO,OOO would only experience a 23.6% reduction of their income taxes. The Dole/Kemp plan includes a $5OO per child tax credit for children under 18 years of age along with Education Investment Accounts as a tax free shelter for education money. As the person's income declines the amount of tax relief increases. continued opposite column inion Greg Louganis by Joneatra Henry Collegian Staff Greg Louganis at Bchrcnd College. Wow! I guess it’s not as boring as you think! 1 got the chance to hear a two time gold medalist speak. I wonder if next year we can get Shaquille O’Neal! The Commons was full of people, some wondering what he would look like, others truly dedicated fans. Louganis is gay so he should look like someone who is gay right? He should walk feminine, have a high pitched lisp, or even dress feminine like Patrick Swayze in TO WONG FOO. That is the stereotype of the homosexual man. But Louganis changed this. He is built nice, has a regular voice, dresses nice (he didn’t have a pink scarf around his neck) and to blow out the candles on the cake, he is athletic. I think there are probably many gay/lesbian athletes who arc afraid to “come out” because they do not want to ruin their image. I do not condone homosexual behavior due to my religious beliefs, but I respect the courage and strength of Louganis and believe it is only up to his God to judge him. AIDS knows no boundaries. AIDS doesn’t discriminate on the basis of sex. Rich people, educated people, heterosexual people and young people can contact this disease. There is no cure. Our society has to stop AIDS. We have to have enough respect from within to protect ourselves and slop letting others take advantage of us. There is no name tag for AIDS or any clear sign. Gambling in Erie by Nikki Gennuso Collegian Staff The big news around Erie recently is the possibility of riverboat gambling making an appearance on the shores of Presque Isle. This issue is being debated everywhere. Of course there are people who think that by bringing riverboat gambling here the tourism will increase, making the industry more profitable among both large and small business owners. Then there are the people who worry about the activity bringing not only corruption and a moral break-down of society, but also an increase in the poverty IcveL Both sides of the issue are worth taking into consideration. I've thought about this a lot myself, and I've come up with the conclusion that riverboat gambling would be a good idea for the city of Eric as long as the shores of Presque Isle are not overtaken. I remember a couple of years ago when the prospect of riverboat gambling was brought to Pittsburgh, and they debated the issue for months until deciding that the decision did not have to be made economics continued Actually the wealthy will end up paying more in taxes than they currently pay because more and more Americans will prosper. Under Reagan the rich paid more taxes than ever before and such will be the case under the Dole/Kemp tax plan. Tax hikes only result in an increasing gap between the rich and the poor. The Dole/Kemp plan involves curtailing the overall government Spending to around the rate of inflation. Bureaucracies such as the Department of Louganis brings humor to his world. One may think a person with AIDS should not have anything to laugh about, but Louganis continues to be all smiles. One reason for his happiness is the unconditional love of his mother. Family love is important. Regardless of the situation, family should always be there for you. I think many parents need to accept their children’s behavior. God docs not pass out “Perfect Child” gift certificates so parents should accept their children for who they arc and believe in them. During his speech, Louganis stated, “I’m a proud man living with AIDS,” and he proved to us that there is no reason to feel ashamed at who you arc. I give him much love for his honesty and courage. The best cure for AIDS is abstinence. The best medicine in prevention is sale sex. The best therapy is education. When arc we going to realize we arc killing ourselves? After the disease is contracted? There is no excuse for getting AIDS. No one is perfect, but if you arc going to practice negative behavior do it right. For example, if you want to drink, drink moderately; if you want to smoke, smoke two cigarettes a day; if you want to do drugs, use a clean needle; and if you want to have sex, do it safely. Having unsafe sex is like taking the “Dive of Death.” Although Louganis has AIDS, he is showing others that “AIDS is not a death sentence.” Life docs not have to cease. One can go on happy and normally. immediately. In my opinion, however, I felt differently about the gambling in Pittsburgh compared to Erie. Not only, is there enough poverty and homelessness in Pittsburgh, but the last thing anyone wants to happen is for someone to be mugged at gun point while walking to their car for the three grand they just won. Granted, there is the occasional shooting around town, but Erie cannot compare to a large metropolis like Pittsburgh where drive-byes are just an everyday occurrence. I think that the benefits of the riverboats will outweigh the problems that could possibly occur. Besides, I wouldn't mind going down to the docks once in a while and winning a couple of grand at the black jack table to buy one of my books for the next semester. Hopefully, a decision will be made soon on whether or not they arc going to make the gambling legal, and if it is legalized we might have something to do by the time next fall rolls around. Commerce and Housing and Urban Development would be liquidated and their responsibilities sold off to smaller agencies and to the states. Friedman and Feldstein both agree that the rate of economic growth combined with reduction of the rale of federal spending will result in a balanced budget by 2002. The Democrats err in assuming a static model where economic conditions will remain as they are now. In 1982 Congress passed the TEFRA which had rather modest assumptions of federal revenues. Reality shot the continued page 8 Page
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