Subject: Perot's Plan (1/4)
From: [email-masked] (Michael Pye)
Date: Tue, 29 Sep 92 15:08:16 GMT
Newsgroups: alt.politics.perot,alt.politics.elections,talk.politics.misc

CONTENTS

     Acknowledgments
     Introduction

     CHAPTER ONE An America in Danger 
     CHAPTER TWO An America that Reforms Its Politics 
     CHAPTER THREE An America that Pays Its Way 
     CHAPTER FOUR An America that Prospers
     CHAPTER FIVE An America that Works
     CHAPTER SIX An America that Heals
     CHAPTER SEVEN An America that Leads

     Afterward
     Appendix

This book is dedicated to the millions of volunteers who accomplished the
seemingly impossible task of getting the petitions signed. You did it
brilliantly.

You changed American politics in just five months.

You made it clear that the people, not the special interests, own this
country.

Everyone in Washington now understands that the American people own this
country, have reasserted their roles as owners, and want the country's
problems addressed and solved.

The creativity, ingenuity, and focused dedication to this task are unique in
American politics.

The founders of our government must be looking down from heaven, smiling on
all of you.

                                 ACKNOWLEDGMENTS

For years I watched with concern as the national debt mounted and our
competitive position declined. I collected news items, government reports,
outside critiques, and editorial opinions that told the story step by step and
instance by instance. I listened to thousands of people in and out of
government. These people have good, solid, practical ideas about how to solve
our country's problems and put it on the right path.

To all of you who gave me ideas and plans, I offer my thanks. If the content
of this book seems familiar, it is because your ideas are valuable and deserve
to be studied carefully.

To the team that assembled these ideas into a workable framework I owe a debt
of gratitude, especially to: John White, Bob Peck, Richard Fisher, Doug
Austin, Steve Brooks, Carol Cimitile, Cathy Eddy, Eric Hoffmann, Mia Lee,
Steve Ostrover, David Parkhurst, Susan Bruns Rowe, Laura Sainz, Kevin Warmath,
and Andrew Wise. I'm especially grateful to Ashley Chaffin, whose ability to
track down any fact or answer any question is first-rate.

Thanks to Tom Luce, David Bryant, Brad Harris, and Clay Mulford for their
observations, comments, and help.

I told the American people I would study the issues and tell them my positions
on matters that will determine our country's future.

This book and the movement that spawned it are only the beginning. I urge you
to continue to monitor your government and to demand results from all
candidates and officeholders, especially in this election year.

Only the people can rebuild America.

                                 INTRODUCTION

Unless we take action now, our nation may confront a situation similar to the
Great Depressionand maybe even worse. Our economic growth has been sluggish
for nearly two decades. The unemployment numbers remain depressing, while the
Federal Reserve worries about inflation.

The institutions we depend on to preserve our financial security are shaky. If
they fail, millions of people will be devastated. Banks are already weak. The
Federal Deposit Insurance Corporation (FDIC), which we as taxpayers guarantee,
may incur liabilities greater than those from the recent Savings & Loan
crisis.

In other words, our economy is perched on the edge of a cliff. Either we work
together to climb back to safety, or we must brace ourselves for potential
disaster. This book provides a plan to pull our nation back from the brink. It
is the legacy of a movement unparalleled in American history.

I look at this book as a dynamic plan that will stimulate discussion and
debate. The only objective is to create the plan that best serves the American
people, and then implement it! We want action, not words.

Not everyone who supported me or participated in this great movement will
agree with everything I write. I am only one voice in a loud chorus. I do hope
that people who agree with me about the symptoms of our national disease, even
if they dispute some of my proposed cures, will use this book as a means of
judging candidates for national office in the November elections.

In the space of six months, the grassroots movement roused the nation and
shook the political establishment to its core. They did it working as a team.
That's why they call themselves United We Stand. The result is that candidates
for President, Senate, and House of Representatives are listening to the
people as they haven't done in years. This movement will succeed if it holds
the candidates accountable. Ask them specific questions, and require specific
answers: What about the deficit? What about entitlements? What about the
special interests? What about foreign governments hiring American lobbyists to
write our laws? What about our government's hobbling of business? What about
our loss of jobs to foreign countries?

Washington has created a government that comes at us instead of a government
that comes from us. Slick campaign commercials and entertaining television
spots won't work in 1992 if you ask the questions and demand the answers.

You are the owners of this country. Nobody else can do the job. Our system has
been corrupted because we weren't exercising our responsibilities as owners.

This is the year to reassert your ownership.

One voice is tiny, and alone it cannot be heard above the din of politics as
usual. The people's voice, when it cries as one, is a great roar. United We
Stand: that's the magic. It cannot be ignored.

You can change our country.

You can pass on the American dream to our children.

You can change the world.

                         AN AMERICA IN DANGER (chapter 1)

In June, 117,000 more Americans were thrown out of work. While we were putting
the finishing touches on this book in July, eight companies announced they
were shedding 23,000 jobs. Those were just the announced layoffs.

The Federal debt is now $4 trillion. That's $4,000,000,000,000. Our political
leaders will add over $330 billion to that debt in 1992 alone.

We add about $1 billion in new debt every 24 hours.

Does anyone think the present recession just fell out of the sky?

People are working longer and longer hours to accomplish less and less. New
families can't afford to buy their first homes. In many families, both parents
must work to make ends meet. Young people coming out of high school or college
can't find a job, so even more of a burden is carried by the families that
raised them.

If your family is fortunate enough to have had a child or grandchild born in
1992, by the time that child enters the third grade in the year 2000 the
Federal debt could be double what it is today.

Let's try to imagine that third-grade classroom just eight years from now.

Today we have a $4-trillion debt. By 2000 we could well have an $8-trillion
debt. Today all the income taxes collected from the states west of the
Mississippi go to pay the interest on that debt. By 2000 we will have to add
to that all the income tax revenues from Ohio, Pennsylvania, Virginia, North
Carolina, New York, and six other states just to pay the interest on the $8
trillion.

If you live in one of those states, take a look at the IRS payroll deduction
that reduces your next week's take-home pay. Your money is going just to pay
interest on this debt, which in 1993 will amount to $214 billion. During the
first 152 years of our nation's existence, we spent less than $214 billion to
operate the entire government of the United States!

Think of the Louisiana Purchase, the westward expansion, the Civil War,
Reconstruction, the building of the railroads, the assimilation of millions of
immigrants, and the industrialization of our economy. All the great
achievements that built America into the world's most dynamic and powerful
nation were accomplished without any substantial debt.

And let me repeat: that $214 billion we'll pay next year is interest only.
Interest doesn't buy a thing. It doesn't spur new business to give people
jobs. It doesn't help people out of poverty. It doesn't maintain our highways.
It doesn't protect our forests and national parks. It doesn't put more police
on the streets. It doesn't restore our inner cities. It doesn't defend us. It
will never build a classroom or fund research to fight disease.

                              TOTAL FEDERAL DEBT
T
R   $5 +
I      |                                                                   **
L   $4 +                                                                   **
L      |                                                                ** **
I   $4 +                                                                ** **
O      |                                                             ** ** **
N   $3 +                                                             ** ** **
S      |                                                       ** ** ** ** **
    $3 +                                                       ** ** ** ** **
O      |                                                 ** ** ** ** ** ** **
F   $2 +                                                 ** ** ** ** ** ** **
       |                                           ** ** ** ** ** ** ** ** **
D   $2 +                                           ** ** ** ** ** ** ** ** **
O      |                                     ** ** ** ** ** ** ** ** ** ** **
L   $1 +                               ** ** ** ** ** ** ** ** ** ** ** ** **
L      |                   ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** **
A   $1 +    ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** **
R      | ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** **
S   $0 + ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** **
       |_______________________________________________________________________
        1970  1972  1974  1976  1978  1980  1982  1984  1986  1988  1990  1992

Source: OMB

The debt is like a crazy aunt we keep down in the basement. All the neighbors
know she's there, but nobody wants to talk about her. If we allow the debt to
grow, however, we are impoverishing ourselves. An $8-trillion debt would be a
disaster requiring us to overtax our people, slash services, and severely
reduce pensions and Social Security.

We are a great nation. We are a people with a great heart. We want to reach
out to the single mother struggling to support herself and her children. We
want to help the disadvantaged, provide scholarships for deserving students,
and make basic health care available to anyone who needs it. Instead, the
result of the toil, sacrifice, and dedication of our working people will go
into paying the interest on a government debt we shouldn't have created in the
first place.

Elected officials don't like to talk about what that massive runaway debt is
doing to our country. Instead they keep to the time-honored tradition that has
become standard for our elections. They talk about every tiny group's special
interest and do nothing about an economy in sharp decline.

This year it must be different. The movement to place my name on the ballot
has accomplished a major goal. It has focused the nation's attention on the
real problems facing our country. Instead of swatting flies in the kitchen and
stomping on ants in the living room, this year the nation will focus on the
gorilla charging up the front steps -- the debt.

We have to face up to our debt. We have to do it now. We have to do it because
no nation can afford to pay $214 billion a year for nothing. We have to do it
because what happens in that third grade classroom eight years from now will
determine the future course of American history.

                               HOW BAD IS IT?

Not only have the politicians failed to reduce the deficit and the interest we
pay on it, in 1992 alone we will add over $330 billion to the $4 trillion
we've already piled on our children's shoulders. That doesn't include another
$3 trillion in the form of money the government has already promised to spend
in the future. Our leaders keep those liabilities off the books. The weight of
that debt may destroy our children's futures.

Suppose the American people demanded radical action tomorrow to eliminate just
this year's addition to the debt. We've seen much posturing recently about a
Constitutional amendment to balance the budget. Suppose we decided to take one
action this year to wipe out this year's deficit and balance the budget. Here
are some radical but unrealistic choices to show just how big the deficit is:

* Shut down the Defense Department. Abolish the entire army, navy, and air
force. That wouldn't be enough to erase $330 billion of new debt.

* Shut down all the public schools nationwide. That would get us $330 billion.

* Seize the profits of all the Fortune 500 companies. That doesn't get us even
half of what we need.

* Confiscate the wealth of the Forbes 400, the richest people in the nation.
That wouldn't do it either.

* Now for the worst option: raise everyone's taxes. How much would we have to
raise income taxes on every person in the United States just to eliminate this
year's deficit? We'd have to almost double them!

That's how big a $330-billion deficit is, and we haven't even begun to tackle
the $4 trillion we already owe.

                              HOW DID IT HAPPEN?

How did one year's deficit become so large? How did things get out of control?

In 1990, George Bush and the Democratic leadership made a deal. The President
backed off of his pledge of "no new taxes" and agreed with Congress to raise
taxes by $166.5 billion. We were told we would have a budget deficit of only
$96 billion. That's still a lot of new debt, but it was a major step in the
right direction.

So we all went along.

There were secrets in that budget agreement neither the President nor the
members of Congress of both parties who approved it told us about.
Specifically, there were authorizations for $304 billion in new spending$1.83
in new spending for every dollar they raised in new taxes.

Instead of the $96-billion deficit we'd been promised, Washington was
"shocked" to discover a few months later that the deficit would really be $318
billion. A little while later, they raised the estimate yet again.

President Reagan had a reason for the deficit spending that occurred in his
Administration. He wanted to bankrupt the Soviet Union, and he did it by
accelerating the arms race. In the last several years, our debt has grown for
no reason. Government spending has risen to a record 25 percent of our gross
national product, and it hasn't bought us much.

The United States is the largest and most complex business enterprise in the
history of mankind. Elected officials like to say that government can't be run
like a business. I can see why. In business, people are held accountable. In
Washington, nobody is held accountable. In business, people are judged on
results. In Washington, people are measured by their ability to get reelected.
With 96 percent of Congress reelected in 1990, they must be running the most
successful enterprise in the world, and they reward themselves handsomely for
it.

Let's bring it down to the level of a small town. Let's assume in this small
town there has always been one person who has been generous and helpful and
caring all his life, as our country has been. Suddenly he finds that he's
bankrupt from making bad investments and running up too much debt. Can he
still give to the United Way? Can he give to the Salvation Army? Can he endow
the community college or donate food to the homeless shelter or help build a
new house of worship? Can he help anyone anymore? No, he can't. And what's
worse, he's the one who now needs help.

Will that be our country's fate? Is that what all the dreams and hopes of two
centuries will come to? Is that why our mothers and fathers labored or why our
soldiers died, so that the greatest country the world has ever known would
come to this?

                              AN AMERICA THAT WORKED

We used to be the country that did things no one else could do. We created the
cotton gin, and clothed the world. We created the harvester, and fed the
world. We created the electric light and turned night into day. We taught the
world how to fly. We invented the telephone. After a French company tried and
failed, we went and built the Panama Canal.

The integrated circuit is one of our country's great inventions -- created and
first manufactured in America. Yet, 19 out of 20 integrated circuits used in
the United States today come from Japan.

After World War II, Japan and Germany lay in ruins. To(lay they are economic
superpowers. In 1946, Humamatsu Honda was wandering around the streets of
Tokyo looking for scrap iron to make a motor scooter. Today his company's
profits are over $1 billion a year. In 1951, Toyota was bankrupt. Today it is
the third largest car maker in the world. Toyota City, Japan -- not Detroit,
Michigan -- is the car capital of the world.

Did they discover a secret? No. There's no secret. They made the hard choices;
our leaders made the easy ones. For their sizes, Germany invested over twice
as much, and Japan invested over three times as much as we did throughout the
1980s to build their countries. Our political and business leaders seem to
think short term. Their leaders think long-term.

Before the early 1970s, our standard of living doubled every generation and a
half. Now it will take twelve generations for our standard of living to
double! This is not the America our parents and grandparents knew.

We've allowed ourselves to be lulled into thinking that the bills would never
come due. We've been led to believe we could keep on borrowing our children's
money to finance a lifestyle we haven't earned and can't afford. It can't go
on.

                            BETRAYAL BY THE ELITES

After taxes, the average household income in the Washington, D.C., area is the
highest of all major metropolitan areas, especially in the surrounding bedroom
communities of Washington where our political elites live.

How come?

Who are these people who make these big salaries and what do they do to earn
them?

These are the people who go to Washington to do good and stay to do well for
themselves. They take government jobs to gain expertise and add to their
resumes. Then they use what they learned on our payroll to grab $500,000
consulting contracts from foreign governments and big interests. This is the
famous revolving door.

The revolving door is truly bipartisan. Members of Congress, top congressional
aides, cabinet members, aides to the President, and campaign officials are
very happy to join hands across the aisle if it will help in the scramble to
represent the big interests with big budgets to spend. You've seen them
swarming at the national conventions where "hospitality" is often a polite
word for something else.

                      GENERATIONS REQUIRED FOR U.S. LIVING
                              STANDARDS TO DOUBLE

                                                           12
   12 +                                           *********************
      |                                           *********************
G  10 +                                           *********************
E     |                                           *********************
N   8 +                                           *********************
E     |                                           *********************
R   6 +                                           *********************
A     |                                           *********************
T   4 +                                           *********************
I     |                                           *********************
O   2 +              1.6                          *********************
N     |      *********************                *********************
S   0 +      *********************                *********************
      |_______________________________________________________________________
               At 1947-73 Annual                    At 1973-90 Annual
                  Growth Rate                          Growth Rate

I'd like you to ask two simple questions: First, what are they selling?
Second, who needs to buy what they're selling?

To get the picture, look at the system they've created. Elections have become
so expensive that our elected representatives spend most of their time raising
money from special interests to finance their campaigns so they can get back
into office. When they're back, they raise more money to get reelected again
and again. A lobbyist walks in the door with a fat check from the special
interest political action committee (PAC) he represents. If you were that
elected official, you would listen carefully to what he has to say. Pretty
soon, the elected person doesn't have time for his own constituents. He needs
to spend his time listening to these people who give him the money to stay in
office.

If you ever have a chance to visit Washington, drop in on that elected
official. Chances are he won't be able to see you. He's too busy.

It wasn't always this way. When I was a midshipman in the Naval Academy, my
folks and I paid a visit to Washington to see the sights. While we were
touring Capitol Hill my mother decided she wanted to visit one of the senators
from Texas. Here we were, a common family from Texarkana, and we walked into a
senator's office and said we were from Texas and wanted to meet our senator.
Five minutes later we were ushered into the office of Lyndon Johnson, majority
leader of the United States Senate. Don't bother trying that today.

It's easy to see what the Washington lobbyists, political consultants, and
lawyers are selling to their clients. They're selling the access you aren't
allowed anymore. They make their living by "providing access."

Who are the buyers?

More and more, foreign governments and businesses are the buyers. If you
wonder why international trade is not played on a level playing field, don't
point a finger at the Japanese or the British or anyone else. Look first at
our own political elites who enter government to gain expertise and personal
contacts while on the public payroll, then leave to enrich themselves by
taking inside knowledge to the other side. We've had American trade
negotiators quit on Friday and show up on Monday as consultants for the
country they were just negotiating with. What has happened to common decency,
ethics, and patriotism among the people who are supposed to lead our country?

                              WHO'S TO BLAME?

Whenever a citizen raises questions about the conduct of our government and
its officials, our representatives look around for someone to blame. Whenever
a voter asks an embarrassing question about the decline of our economy, the
first reaction is to blame someone else. The President blames Congress, and
Congress blames the President. Republicans blame Democrats, Democrats blame
Republicans, and both of them blame the bureaucracy. The bureaucracy has
caught on, too. Last year when the budget projections were wrong, the Office
of Management and Budget (OMB) actually blamed the Department of the Treasury,
as if Treasury was some mysterious organization located in Mongolia.

Modern politics has become little more than shirking responsibility and
blaming somebody else. There is, however, a very obvious answer to this.

If anyone wants to know who's to blame for the $4-trillion debt, just go look
in the mirror.

You and I are to blame. You and I are the shareholders of this country. We own
it.

We allowed this system to develop where political action committees, the tools
of the lobbyists, have more power than people. We allowed politicians to buy
our votes by promising newer and grander giveaways (with money, by the way,
they didn't have and had to borrow from our children). We allowed them to rack
up deficit after deficit while we reelected them time after time.

As owners, you and I established the incentives. How could we be surprised at
the results?

Why do we find it strange that the Senate voted itself a 23 percent pay
increase last year after it had just approved the largest deficit in American
history? Did you get a 23 percent increase last year? Do you know anyone who
did? Our senators only did what they thought we would let them do. They blamed
that deficit on somebody else and got on to the really important business of
taking care of themselves. We did exactly what they expected us to do:
nothing.

You and I didn't start this country; we didn't build it. Only a few of us have
done anything to deserve or preserve it. We inherited our ownership stock.

We were given only one charge by the generations who left it to us. We were to
do as they did and pass this nation on to our children in better shape than
they left it to us.

                         GROWTH IN DOMESTIC PRODUCT
                                1965-1989
A 
V 
E                                                              8.9%
R  9.00% +                                                ***************
A        |                                                ***************
G  8.00% +                                                ***************
E        |                                                ***************
   7.00% +                                                ***************
A        |                                                ***************
N  6.00% +                               5.5%             ***************
N        |                          ***************       ***************
U  5.00% +                          ***************       ***************
A        |                          ***************       ***************
L  4.00% +                          ***************       ***************
         |         2.80%            ***************       ***************
G  3.00% +    ***************       ***************       ***************
R        |    ***************       ***************       ***************
O  2.00% +    ***************       ***************       ***************
W        |    ***************       ***************       ***************
T  1.00% +    ***************       ***************       ***************
H        |    ***************       ***************       ***************
   0.00% +    ***************       ***************       ***************
R        |____________________________________________________________________
A              United States             Japan             Asian Newly
T                                                         Industrialized
E                                                           Countries

                            DECLINING GROWTH OF U.S.
                             BUSINESS PRODUCTIVITY

P
E  35.00% +        32.60%
R         |    *************** 
C  30.00% +    *************** 
E         |    *************** 
N  25.00% +    *************** 
T         |    *************** 
A  20.00% +    *************** 
G         |    *************** 
E  15.00% +    ***************           13.30%
          |    ***************       ***************           11.30%
G  10.00% +    ***************       ***************       ***************
R         |    ***************       ***************       ***************
O   5.00% +    ***************       ***************       ***************
W         |    ***************       ***************       ***************
T   0.00% +    ***************       ***************       ***************
H         |___________________________________________________________________
                   1967-70               1970-80               1980-90

Who among us in good conscience is willing now to say that this solemn charge
has been fulfilled? Which ones of us loves their country or children or
grandchildren so little that they would leave behind an America weaker or
sicker than the one they inherited? Who among us can look at these facts and
turn away with a shrug?

These are not simple problems that can be solved with a single vote on
Election Day. One person in one office will not restore excellence to America.

There is only one person in the entire world who can with character, devotion,
hard work, and sacrifice create an America stronger and healthier than it is
today.

Go back and look in that mirror again.

               AN AMERICA THAT REFORMS ITS POLITICS (chapter two)

Our political system has lost its moorings. It no longer rises to meet new
challenges.

It seems designed to avoid solving problems.

The first words of the Constitution are "We, the people." We created the
Constitution. We created Congress. It exists for us, not the other way around.
We hire and pay for the bureaucracy. They all work for us.

Before we can hope to face up to our problems, we have to restore the intent
and meaning of the Constitution we created. We cannot repair our economic
engine, retool our economy to be competitive in a new age, and put ourselves
on a solid footing for the future unless we take back control of our
government that has been taken from us.

The first and most important action we can take as a people is to treat our
elections seriously. Candidates for public office must be required to lay out
their proposed solutions to the problems that confront us. They avoid this
like the plague. They'll raise false issues, appeal to the voters'
self-interests, or sling mudanything to avoid facing the tough issues.

The Savings & Loan crisis is a case in point. In 1984, the administration and
Congress believed that the S & L crisis was a $20- to $30-billion dollar
problem. The special interests mobilized. The S & L operators flooded
Washington with lobbyists, campaign contributions, PAC money, and free
airplane trips to fancy resorts. As a result, the issue was swept under the
rug. It didn't reappear on the screen during the 1988 elections. The day after
the 1988 election, our Republican President and Democratic Congress suddenly
discovered we had a $400- to $500-billion S & L crisis that could no longer be
ignored.

In 1990 we were told by Washington that the deficit for the next five years
would be $547 billion. A year later we were told there was a slight mistake.
The five-year deficit would total $1 trillion. As usual, nobody wanted to talk
about it.

Do not allow any candidate in this election to ignore our deficit. When
Governor Clinton talks about his new programs, ask him where the money is
coming from. When President Bush talks about finishing the job he started, ask
him when he's going to start on the job of getting this country back on track.
If you will hold all the candidates accountable, then we'll be on the way to
getting this problem fixed. You will have done your part no matter for whom
you vote.

After the election the real work will begin. The men and women who are chosen
by the people to go to Washington in 1992 should pledge themselves to restore
the people's control over our institutions. That will mean irritating their
powerful friends and big donors. It will also mean shutting the revolving
door. It will mean restoring the intent of the Constitution.

                               START AT THE TOP

Before we can hope to eliminate our deficit, we have to overhaul the political
system that created it. Our Founders built a beautiful ship of state, but the
barnacles have latched on and the hull has rusted. It's time for a scrubdown
from top to bottom.

It's not just a matter of bringing in new people. It's not just a matter of
replacing a Republican President with a Democrat, or a Democratic Congress
with a Republican one. To throw the rascals out is an impulse as American as
apple pie, but it alone won't do the job.

The wave of new members of Congress who were elected in 1974 as reformers in
the wake of the Watergate scandal were as bright and sincere as Congress has
ever seen. Eighteen years later those who remain in office are as encrusted in
the system as the people they replaced. They enjoy the same perks, PAC
payouts, bounced checks, fawning staffs, and personal exemptions from the laws
they pass.

Take any good, decent citizen and put him in a limousine, hold the red lights
for him, give him a private jet for personal use, supply him with free tickets
to any place he wants to go, and he'll lose touch with reality in a hurry. If
we replace every person in Washington tomorrow but keep the present system
intact, in a few weeks the new people will be just like the old people.

The British aristocracy we drove out in our Revolution has been replaced with
our own version: a political nobility that is immune to the people's will.
They have created through our campaign and lobbying laws a series of
incentives that corrupt the intent of the Constitution.

It's time to make a few changes. Specifically, we need to insist on a sweeping
package of reforms for our political system:

* Restrict campaign contributions to $1,000 period. No more "soft money"
contributions of up to $100,000 from corporate interests, labor unions, and
rich people. No more $8-million extravaganzas where the dinner seating is
determined by how much money you gave to the President's campaign. Think of
it. This is the presidency of the United States. This is the office George
Washington once held. We will no longer allow it to be demeaned and cheapened
by pandering to wealthy donors from all over the world.

* Curb political action committees. In 1974 PACs contributed nearly $13
million to congressional candidates. About that time lobbyists noticed that
congressmen returned their phone calls if their PAC had given money. In 1990,
PACs contributed over $150 million, an eleven-fold jump. Who are we trying to
kid here? We know what they're out to buy. It's time for the owners of the
country to declare that the United States Congress and the White House are not
for sale.

* Give the Federal Election Commission real teeth. Right now, the President
appoints six members. By tradition there are three Republicans and three
Democrats. Guess how many tie votes there are. You can also guess at the
amount of winking and nodding that goes on around the table. No wonder it's a
paper tiger. It must be revamped. Let's have five members appointed at
staggered terms. Give it criminal prosecution powers to enforce our election
laws.

* Change the way we hold elections. First, shorten the campaign season. Five
months is long enough for anyone to make a case. Hold elections on both
Saturday and Sunday so working people can go to the polls. Release no
information until all polls are closed. Since the airwaves belong to the
public, require equal free time for candidates for federal office. Joined with
easier voter registration, these measures will improve our elections and
stimulate more voters to go to the polls.

* Eliminate the electoral college. There's no reason to filter the people's
vote. Why shouldn't we let the people directly choose their President and Vice
President? Whoever gets the most votes of the entire country should be the
President.

                         PUBLIC SERVICE IS A PUBLIC TRUST

Reforming our campaign laws is only the beginning. We have to restore the idea
that public service is a sacred trust. Being an elected, appointed, or career
public servant is a noble calling. Some of our elected and appointed officials
see their terms of office as interim steps to high-paying lobbying jobs. We
need to make it abundantly clear that anyone who enters the federal government
comes to serve, not to cash in.

* Make it a criminal offense for any foreign government or individual or
company to attempt to influence American laws or policies by means of direct
or indirect campaign contributions. Tighten laws requiring full and prompt
disclosure.

* Rewrite the foreign agent registration and lobbying laws to close the
loopholes. Today there is not even a clear definition of what lobbying is. For
example, if you don't want to be accused of hiring a lobbyist, you hire a law
firm to accomplish the same task.

* Forbid any former President, Vice President, cabinet officer, agency
director, Federal Reserve governor, commission director, White House staffer,
trade negotiator, member of the Senate or House from accepting one penny for
any reason from any foreign interest ever. Anybody who holds one of these
high offices does so because the American people gave them their trust. That
trust should be honored.

* Forbid anyone who has held any position in the federal government to be a
paid lobbyist for any domestic interest for five years after leaving
government. Slam the revolving door shut.

* Draft a tough ethics code for private citizens who serve as consultants and
advisers to the federal government. The federal government contracts with
these private citizens, most of whom used to work for the government, to do
the work that federal employees could do. These people usually get paid much
more than workers on the federal payroll. Establish stiff criminal penalties
for any abuse or fraud.

* Forbid anybody on the payroll of a foreign government or foreign interest
from serving in any capacity, volunteer or paid, in a presidential or
congressional campaign. Right now, foreign lobbyists play key roles in both
the Democratic and Republican campaigns. That is inexcusable.

                         CLEAN UP THE EXECUTIVE BRANCH

At a time when we're asking the American people to make sacrifices for their
country, why do we allow our political elites to live like pampered royalty?
No wonder the American people have grown disgusted with their government; we
need to take severe steps to restore that sacred trust.

* Move immediately to sell off the 111 civilian aircraft maintained for
discretionary use by federal government executives. Conduct a case by case
review of the remaining 1,100 civilian planes owned by the federal government
that are allotted to different legislative and executive agencies. Keep the
few that are essential.

* Eliminate the 89th wing of the air force. It exists solely to transport top
officials around the country. The Cold War is over. The Vice President doesn't
need an air force jet to go play golf. I don't understand how a chief of staff
to the President could even consider using a government jet to take him to the
dentist. People might say, "Aren't you being a little hard? These people have
giant responsibilities while running huge departments of government. Most
corporate executives never run anything so large and complex, and they all
have corporate jets." These people work for us. They are our employees. Unless
we take steps like this, they will continue to believe we work for them. We
need to capture their hearts and minds. No matter how high their office or how
lofty their titles, members of the next administration should fly
commercially. They should go out to the airport, get in line, lose their
baggage, eat a bad meal, and stay in touch with how normal people live. Then,
if there's a recession in this country, it won't take three months for them to
figure it out. The person in the seat next to them will let them know in no
uncertain terms.

* Have the cabinet members spend most of their time outside Washington
answering tough questions and solving real problems. What good can the
Secretary of Education do behind a desk while our schools are falling apart?
How can the Secretary of Health and Human Services tackle the massive
bureaucratic problems of this system without really understanding the people
who encounter them?

* Encourage federal employees to treat citizens as owners. When any owner of
this country walks into a federal office, that person should be treated with
the courtesy and respect that an owner should receive. We need to restore
pride in the federal service so that our employees will smile every day at the
office and be polite.

* Reduce civil service restrictions and allow more discretion so that federal
employees can be more responsive. The word 'bureaucrat" conjures up some
bloodless, uncaring robot with a rubber stamp. In truth, I've found almost
every federal employee I've encountered to be a dedicated, intelligent
professional. We need to lift restrictions that keep our employees from doing
their best jobs. We need fewer employees and more rewards. We need to give our
officers the tools to do the job. Right now, for example, the Secretary of
Housing and Urban Development presides over a department of 13,000 people. By
legislative statute he can only hire or fire 105 of them. It's not surprising
that public housing is a mess.

* Drastically cut the White House and executive branch staffs. John F. Kennedy
had a White House staff of 600. George Bush has 1,850. In 1960, Congress had a
total staff of 5,610. Today it has a staff of over 20,000. What do all these
people do? From my experience, their main mission is to insulate executive
officials and members of Congress from you, the owners. Their secondary
mission is to make sure their boss gets reelected. Congress and the executive
branch have grown fat, complacent, unwieldy, and unresponsive. The White House
and Congress could easily reduce their staffs by 30 percent.

Never forget that staffs accomplish very little. All of the action is in the
field.

Look at the Agriculture Department to see how much the bureaucracy in the
executive branch has grown. In 1948, farms employed 20 percent of our
population, and the Agriculture Department had 67,000 employees It was
considered a huge bureaucracy. Today only 2 percent of our people work on
farms, but the Agriculture Department has swollen to 118,000 employees.
Instead of creating a new cabinet office every time a special interest group
wants more attention, we should overhaul and permanently reduce departments of
government so that we can apply our resources where they will do more good for
our people. We don't need staffers in Washington to hold a cabinet officer's
briefcase. We need hands-on problem solvers out in the field where they will
do some good.

                        RESTORE CONFIDENCE IN CONGRESS

Congress needs to take a good, hard look at itself as an institution. It has
been through trying times. It has in large measure lost the respect and
confidence of the American people. We cannot afford to let this go on. A
representative democracy depends on the essential trust the people place in
their institutions. We should urge Congress to regain that trust by taking
four measures immediately:

* Slash the current $2.8 billion budget that supports Congress, its agencies,
gymnasiums, staffs, barber shops, free mail, and all the other perks that have
been built up over the years. Cut congressional staffs by 30 percent and other
perks by 40 percent. Congress could apply nearly $1 billion toward cutting the
deficit. Suddenly the people, the financial markets, our allies, and our
competitors would realize that the United States is serious about facing its
problems. Congress would rise to new heights of respect in everyone's eyes by
becoming more productive.

* Reform the retirement system. Up to 93 members of Congress are eligible for
lifetime pension benefits exceeding $2 million apiece. This is much higher
than their constituents' pensions! The people consider such excesses a breach
of trust.

* Reorganize the legislative system. As many as fifteen committees and
subcommittees must be involved for any significant piece of legislation to
pass the House. Negotiations among all these committees and subcommittees
become so complex that loopholes and special favors get enacted with only a
handful of people knowing about it. Congress needs to streamline this process
so that they and the people can follow the progress, or lack of it, on bills
before the House and Senate. Members of Congress should be acutely aware that
the people run this country, not the lobbyists in the hallways and offices.

* Turn in excess campaign funds to the Treasury. Some congressmen have racked
up campaign war chests which hold many millions of dollars. Every two years,
the PACs pour more money in just to stay in their good graces. Clean it up.
The owners want that money back.

                  RESTORE A SENSE OF OWNERSHIP TO OUR PEOPLE

Owners have responsibilities, too. If you have guests in your house, and you
allow them to pocket the loose change on the dresser, you have nobody to blame
but yourself when you discover they've stolen your television set. The most
honest people in the world will be corrupted by a pattern of winking at minor
misdemeanors. By the time they get to the television set they've lost all
sense of proportion. They've begun to believe that they deserve it and that
nobody will mind. If that's the psychology at work with people in your own
home, magnify it a million times to understand the problem that festers in
Washington.

Again, if you want to know who's to blame for our political system that
encourages and rewards people who cash in on public service, look in the
mirror.

We have abdicated our responsibilities as owners. Our political system can
only be repaired if we take charge of it.

* First, all of us must vote. We need legislation to make voter registration
more accessible. How can anyone disagree? We should change the voting time
from Tuesday to both Saturday and Sunday.

* Second, we must stay informed. I've suggested we have an interactive
"Electronic Town Hall" so that as a nation we can lay out the issues, review
the choices, argue over the merits and demerits, and reach a consensus. This
has aroused a lot of controversy, but why? Most of us carry on a quiet debate
with our leaders every morning while we're reading the newspapers. I remember
that FDR's "Fireside Chats" united us as a country and set a national
direction. President Reagan used the same medium to explain his ideas. The
only difference between the Fireside Chat and the Electronic Town Hall is that
the first was one-way, the only radio technology available at the time, and
the second is two-way, which we can do today. Instead of passively listening
to the radio or watching members of the political elite debate on television,
our citizens will be able to engage their representatives and appointed
officials in a direct conversation. This may be a conversation our political
elites would like to avoid, and I can understand why. That doesn't mean they
should be able to avoid it. For our system to work, our elected officials must
listen to the owners (us) we, the people.

Eternal vigilance is the price of liberty, and citizen participation is the
price of responsible representative democracy. This is what our Founders
intended and what we must restore.

                             FIX THE SYSTEM FIRST

We must repair the political system. If we don't, the actions we take to
repair our economic engine will be just another series of temporary fixes. We
have to change the incentives if we expect our political leaders to hold the
course in setting this country right. Let's tackle this like our grandparents
would have. Let's fix it. Then let's keep it fixed. Do it as an act of love
for our grandparents and parents who gave us this country, and also for our
children and grandchildren. They deserve the very best government we can give
them.

Newsgroups: alt.politics.perot,alt.politics.elections,talk.politics.misc
Path: nntp-server.caltech.edu!elroy.jpl.nasa.gov!ames!think.com!wupost!csus.edu!netcom.com!mpye
From: [email-masked] (Michael Pye)
Subject: Perot's Plan (2/4)
Message-ID: <[email-masked]>
Date: Tue, 29 Sep 92 15:09:42 GMT
Organization: Netcom - Online Communication Services  (408 241-9760 guest) 
Lines: 941
Xref: nntp-server.caltech.edu alt.politics.perot:2953 alt.politics.elections:14639 talk.politics.misc:91346

                  AN AMERICA THAT PAYS ITS WAY (chapter 3)

For a decade the United States economy has been pulled and tugged from two
different directions. Republicans in the White House pushed for lower taxes on
the rich in the hope that their increased incomes would trickle down to the
rest of the nation. Meanwhile, Democrats in Congress pushed for tax and spend
policies that would take more money out of all our pockets and put it into big
government programs. The result is that nothing trickled down, we all got
taxed, and government spending skyrocketed. The Federal government's share of
our gross national product increased from 19 percent to 25 percent over the
past twenty years.

In the 1960s and 1970s we were led to believe government could solve our
problems. It couldn't, and it made some problems worse.

In the 1980s we were led to believe the private economy could solve our
problems. It couldn't, and it didn't. Some people became richer. A lot more
became poorer. Most families just got stuck. The average family purchasing
power in 1992 is about where it was in 1976 in real dollars.

Our two parties are locked into their ideologies. The Democratic Party's
platform this year admits tax and spend policies don't work. Then it goes
right ahead to offer a program of massive government spending called
"investment") which will have to be paid for by higher taxes or even more
debt. The Republicans, still clinging to the hope that our economy will right
itself on its own, offer no program at all.

We cannot afford to let either party's ideology continue to wreak havoc on our
economy.

Our first priority is to balance the budget. The United States government must
pay its way. There are only two ways to do it: reduce spending and generate
revenues. It's that simple. In your family, when you can't pay the bills, you
either get a raise or start cutting back to the necessities. In any business,
big or small, it's the same. Government tries to sneak around this principle,
either by borrowing money or by printing it. These end runs never work. They
always compound the problem because they don't address it.

As a nation, we have to make some hard choices that involve setting our
priorities. Elected officials back away from this like a dog backs away from
an angry cat. They're worried about getting scratched in the face by some
angry special interest. Yet, every American  has to make hard choices every
day. Do I need a new car? Not really. Can I afford a week at the beach? No. Do
the children need new clothes? Yes. Should I pay down my Visa account? I'd
better. Can we afford a house? Let's check the interest rates.

These are everyday questions, not life-shattering philosophical decisions.
They shouldn't be too hard. Yet, ask an elected official if he wants more
money for either Head Start or public television. He'll quickly calculate who
gives him what and how it will look on the evening news, then he will answer
he wants both. That's an answer we can't afford to receive anymore.

We need to lay out the choices and then give the officials no place to hide.
The choices may be painful, but they must be plain and clear. Government is
not a candy store in which every group can pick from any jar it wants. This is
not free money. It's your money, and more importantly, it's your children's
money. Under our present system, our elected representatives can retire to
Hawaii when the bad news comes. But where will your children be? What kind of
education will your grandchildren receive? Where will their jobs come from?

It is unconscionable not to act now. My own experience with General Motors is
a case in point. In the mid-eighties it had plenty of money and time to
recreate itself as a company dedicated to excellence. The corporate
bureaucracy, however, wouldn't budge. Neither top management nor the board of
directors would deal with the real problems. During the past year, GM lost
almost $400 million a month. It is now in the process of firing employees,
closing plants, permanently downsizing. It wouldn't have happened if its
owners, the shareholders, had demanded that the Board look into the future and
make the difficult decisions early on.

I started as a salesman for IBM, one of the most successful business
enterprises ever. I believed twenty years ago that IBM would grow forever.
Today it is a company playing defense, not offense.

Time is not our friend. We must start now to cut t he huge budget deficit.

What follows is my proposal of exactly how the budget should be balanced. As
the graph on deficits shows, this plan will get rid of the deficit by 1998.
Compare the results of this plan to what the deficits are estimated to be if
current policies are followed by Congress.

It is not a perfect plan, but it is fair and reasonable. I urge all of you,
including the two political parties, to improve upon it.

                          CUT DISCRETIONARY SPENDING

Require the federal departments to submit budgets that cut 15 percent from
their discretionary budgets in two steps. First, cut specific programs that
are unnecessary or outdated to save 5 percent. Then, make an across-the-board
cut of all remaining departments and programs of another 10 percent. This will
save $108 billion over five years. In my business experience the one
overriding lesson is that the longer an enterprise is in existence, the larger
the unnecessary overhead. It's human nature. Give some people a nice position,
and soon they want two assistants instead of one; they want their nameplate in
brass; and they think they deserve a private dining room. It is time to adjust
our spending to what we can afford.

                                    DEFICITS

B  $350 |
I       |____________
L  $300 |\_____      \
L       |      \      \_______                                     ____ Current
I  $250 |       \____         \                              _____/
O       |            \         \__________          ________/
N  $200 |             \___                \________/
S       |                  \
   $150 |                    \___
O       |                         \
F  $100 |                          \____
        |                               \
D   $50 |                                \_____________
O       |                                              \___________
L    $0 |..........................................................\.............
L       |                                                           \___  Perot
A  -$50 |
R       |_____________________________________________________________________
S        1993       1994       1995       1996       1997       1998

Let me give you two examples of programs that we don't need:

First, we are spending money on programs that are nice but not necessary. One
example is the space station. I'm a supporter of scientific research. However,
this is a huge undertaking for a nation with an operating deficit of over $330
billion. We should defer the space station until we have the money to pay for
it.

We are spending on programs that have long since outlived their usefulness.
The Rural Electrification Administration was set up during the New Deal to
provide electrical power to our outlying rural areas where no power company
could afford to go. It did its job. The country is now electrified and the
program should be phased out.

There are many other candidates for elimination. Every program must be
evaluated objectively. We should save only those programs we need for our
future.

                            ENACT THE LINE ITEM VETO

The last five Presidents have requested it, and 43 governors have it. When
budget resolutions come back to the President's desk studded with little
rhinestones for special interest groups, he should have the authority to pluck
them off. Those rhinestones are stuck on by powerful members of Congress to
enhance their reputations back home or to repay the special interests that
gave them PAC money. The President is forced, under the present system, to
either accept the entire bundle, rhinestones and all, or veto the whole thing.
This is bad budget procedure.

Congress ought to have the last say. They would still have the right to
override a line item veto with a two-thirds majority.

                      ENACT A REAL DEFICIT REDUCTION LAW

Congress needs a mechanism to keep our fiscal house in order. When we talk
about the budget, we're talking about a mirage. Our government mostly operates
by a series of continuing resolutions, not by a budget. This system is clumsy,
inefficient, and open to abuse by special interests. Congress must manage its
own business before it can undertake the people's.

A strong, consistent deficit reduction law is necessary, and I believe it
would be welcome in Congress. I believe Congress rejected the proposed
balanced budget amendment because they knew it was phony. Why tamper with the
Constitution when what we need is for Congress to apply restraint over its own
procedures?

                           ELIMINATE SPECIAL FAVORS

Thousands of special favors for various groups are in the budget. Space
doesn't allow me to name every single one, but I will give some examples:

The inland waterways are costly to patrol and maintain. The private companies
that benefit from them ought to pay for their use. Similarly, people who cut
timber on public lands should pay full cost for the privilege. In general, we
should adopt user fees for many public services that benefit only a portion of
the population.

We should eliminate special tax favors, such as those for alcohol-fuel and
iron-ore shipping companies.

We should eliminate protective tariffs for such commodities as sugar. Because
of what lobbies have gained, we pay increased prices at the grocery store. If
lower tariffs hurt small farmers in the short run, we should have programs
that reward them for more productive activities.

We should eliminate our entire system of farm subsidies for giant agricultural
corporations.

We should cut deductions for business meals and entertainment to 50 percent of
the cost. Now 80 percent are deductible. I don't know many working people who
take them. I'm a businessman, and I know they are sometimes necessary
expenses. I also know I have to eat lunch whether I'm doing business or not.

By cutting various unnecessary subsidies and tax favors, we would save $50
billion over five years.

                 CUT THE DEFENSE BUDGET TO MEET ITS MISSION

Nothing is more important than the security of our country In the post-Cold
War world, however, our well-being depends less on military security than on
economic security. On the military side, we have the resources the strategic
doctrine, and the hardware in place to confront any serious threat to our
interests anywhere in the world. We don't need to be ready to fight World War
III tomorrow because World War III is not going to break out tomorrow.

Our military budget is stuffed with relics from the Cold War, such as the B-2
and the Seawolf submarine. We don't need them. What's more, we can't afford
them. I propose that they be eliminated.

I have great respect for the men and women who serve our country in the armed
forces. I suggest implementing a program to provide a smooth transition for
these talented and well-trained people to reenter the job force. They will
make a tremendous addition to the productivity of our nation. American
companies should avail themselves of this unparalleled opportunity to employ
these dedicated people.

Similarly, we need to convert many of our defense industries to new and
productive tasks so that the downsizing of our defense is not accompanied by a
downturn in jobs. The federal government can play an important role. Many of
these companies are among our finest in research and technology. They can be
instrumental in restoring our lead in new technologies.

First we need to implement a well-conceived and deliberate plan to restructure
the defense budget to match the post-Cold War reality. In doing so, we can
save at least an additional $40 billion during the five years over the cuts
proposed by President Bush.

                         STOP SUBSIDIZING THE RICH

Under current law the federal government allows homeowners to deduct from
their income taxes interest on mortgages up to one million dollars. Why should
we subsidize interest on huge, expensive homes? I know people who own two
houses: one as their principal residence and another on the beach. Because the
mortgages on both total under one million dollars they deduct every penny from
their taxes. Why should we subsidize interest on vacation homes?

The average mortgage in the United States is $104,000. I propose that we limit
deductions on interest to mortgages of $250,000 and that we eliminate the
special deduction for vacation homes.

Another subsidy for the rich is the exemption from taxes on expensive
employer-paid health insurance. These plans support the rich and encourage
excessive health costs. They should be taxed as additional income. I propose
that all such contributions over $335 for a family and $135 for an individual
each month which is more than most of us getbe taxed.

These two measures alone would save us $72.9 billion over five years.

In addition, we should raise the marginal tax rate on the wealthy from 31 to
33 percent. In 1993, this change would affect individuals who make over
$55,550 and joint filers who make over a total of $89,250. Therefore, less
than 4 percent of the taxpayers in America will be affected, but we will raise
$33 billion in five years. If other reductions proposed here do not provide
sufficient revenue, we should be prepared to raise the marginal rate to 35
percent.

                          CONTROL ENTITLEMENT COSTS

Our biggest problem is entitlement programs. These include Social Security,
government retirement, Medicare, and Medicaid. They now consume 50 percent of
the federal budget. The accompanying chart on entitlement outlays shows how
much we spend on them. They are the fastest growing part of our budget, and
they are growing at an alarming rate. The combined costs of Medicare and
Medicaid doubled in the last six years. If we don't take action now, we won't
have the money to support them.

These programs are the heart of our social services. Millions of people depend
on them every day, and they must be secure in the absolute knowledge these
programs will continue. The President must act as guardian at the gate to
protect these programs against any threat.

The threat I fear the most is that their runaway costs will outstrip the
nation's ability to pay for them.

The reason these are called entitlement programs is that they run on
automatic. Congress and the White House, influenced by politicians of both
parties, have set them up so they never have to confront the political problem
of dealing with them. That's why they've grown unchecked. The accompanying
graph shows how wildly entitlements have jumped from 1960 to 1991.

They've also grown out of whack. Families with high incomes actually received
more entitlement benefits than poor families in 1991, and much more than
middle class families.

                        1992 FEDERAL ENTITLEMENT OUTLAYS
                         (originally in pie-chart form)

B    $0_________
I      |.......|
L      |.......|<-- Other Nonretirement (Includes Farm Price Support and
L      |.......|    Student Loans) (27.7 Billion)  3.80%
I      |+++++++|
O   $50|+++++++|
N      |+++++++|<-- Food & Housing Benefits (51.78 Billion)  7.10%
S      |+++++++|
       |+++++++|
O      |\\\\\\\|
F  $100|\\\\\\\|
       |\\\\\\\|
D      |\\\\\\\|<-- Unemployment and Family Support ($71.3 Billion)  9.80%
O      |\\\\\\\|
L      |\\\\\\\|
L  $150|\\\\\\\|
A      |#######|
R      |#######|
S      |#######|
       |#######|<-- Other Pension & Veterans Benefits ($83.72 Billion)  11.50%
   $200|#######|
       |#######|
       |#######|
       |#######|
       |>>>!<<<|
   $250|>>>!<<<|
       |>>>!<<<|
       |>>>!<<<|
       |>>>!<<<|
       |>>>!<<<|
   $300|>>>!<<<|
       |>>>!<<<|
       |>>>!<<<|
       |>>>!<<<|<-- Health Care Benefits ($200.2 Billion)  27.50%
       |>>>!<<<|
   $350|>>>!<<<|
       |>>>!<<<|
       |>>>!<<<|
       |>>>!<<<|
       |>>>!<<<|
   $400|>>>!<<<|
       |>>>!<<<|
       |>>>!<<<|
       |>>>!<<<|
       |$$$$$$$|
   $450|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $500|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $550|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|<-- Social Security Payments ($293 Billion)  40.30%
       |$$$$$$$|
       |$$$$$$$|
   $600|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $650|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $700|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $730 -------

                          FEDERAL ENTITLEMENT GROWTH

 |
 |***
 |*** $25.8: Total federal entitlements in FY 1960
 |***
 |
 |
 |***********
 |*********** $113.6: Total in FY 1991 needed if entitlements grew at the
 |***********         rate of inflation.
 |
 |
 |****************
 |**************** $158.8: Total in FY 1991 if entitlements grew at the rate of
 |****************         inflation and were adjusted for population growth
 |
 |*****************************
 |***************************** $286.0: Total in FY 1991 needed if entitlements
 |*****************************         grew at the rate of GNP growth
 |
 |
 |*****************************************************************
 |*****************************************************************
 |*****************************************************************
 | 
 | ^ $650.7 = The actual total federal entitlements in FY 1991 were much more 
 |            than needed for any of these adjustments.
 |
 ----------+---------+---------+---------+---------+---------+---------+
$0       $100      $200      $300      $400      $500      $600      $700

                           Billions of Dollars

These programs can be saved, and our fiscal sanity restored, by taking some
fairly simple steps.

First, those who can afford it should pay more to support the program. 
Better-off Americans stop paying Medicare taxes on income over $130,000 a
year.  We should lift that cap.

Second, given the size of the problem, everyone except the poorest among us
should share in the changes.  Users of the Medicare supplemental medical
insurance program should pay premiums of 35 percent of program costs, up from
25 percent today.  The program was originally designed to be financed at 50
percent by users.

These two steps alone would raise $66 billion over five years.

Our federally funded pension plans will cost us $348 billion this year.  These
necessary programs can be protected if we manage them with care.  First, all
retirees who can afford it should pay taxes on their Social Security benefits
just as they do on private pension benefits.  Now those elderly who make over
$25,000 per year as individuals or $32,000 filing jointly pay taxes on 50
percent of their benefits.  Taxing an additional 35 percent of the benefits
for those who already pay taxes will affect only 18 percent of all retirees
but will raise $30 billion over five years.

In addition, retirees from federal government service, military and civilian,
would have their cost of living increases reduced by one-third over the next
five years under my proposal.  Nobody will receive a penny less than they
receive today.  In fact, they will continue to receive more every year. 
Decreasing by a small percentage the increases we make in these payments would
produce $13 billion in savings over five years.

The biggest savings we can achieve in our entitlement programs is through a
reform of our entire health care system. I discuss this at greater length in
Chapter 5, but my goal is to improve both the quality and delivery of medical
services through Medicare and Medicaid for a savings of over $141 billion over
five years.

                      INCREASE TOBACCO AND GASOLINE TAXES

We need to increase tobacco taxes. We can raise over $18 billion over five
years. Smoking kills more than 400,000 people every year. Some of this money
can be used to increase research for cures to related diseases. These diseases
are costing us over $20 billion a year in medical costs. At the same time,
because of the power of the tobacco lobby and its effect on some key senators
and members of the House, we subsidize the growing of tobacco with your money.
That doesn't make sense.

Also, I will propose a ten-cent increase in the gasoline tax for each of the
next five years. This will raise approximately $158 billion. The basic purpose
is to use these funds to create jobs by rebuilding our crumbling national
highway system, building high-tech, sensible transportation networks, and
building a telecommunications system for the 21st century. Our infrastructure
is a fundamental element in world economic competition. The Japanese, for
example, plan to invest over six times per capita more than we do in the
1990s. Even Taiwan, about the size of Pennsylvania, intends to spend three
times more per capita than we do on its infrastructure in the next decade.

There is another reason to increase the gasoline tax. The United States
depends on foreign sources for about 40 percent of its oil. Our long-term
national security requires that we reverse this trend. We cannot allow our
economy to be held hostage to oil sheiks and petty dictators in one of the
most unstable regions of the world. Finally, of course, reducing the
consumption of gasoline will curb pollution.

As the graph shows, Americans would pay far less than citizens of other
countries for each gallon of gasoline even with this increased tax.

At the same time, I am sensitive to the hardship that this tax proposal may
impose on some people such as small farmers and independent truckers. We
should allow tax deductions and other adjustments to relieve such hardship.

                             INCREASE COLLECTIONS

We charge the IRS with the mission of collecting $1 trillion a year, yet we
have been slow to give them the tools to do the job. The IRS is now in the
process of upgrading its computer systems. We must recruit the finest
engineers and best software people in private industry to review their plans,
suggest improvements, and aid them in speeding up the process. Some have
estimated that $50 to $100 billion could be saved each year Surely we can find
$10 billion of that over the five years of the plan.

In addition, our lax tax treatment of foreign companies operating in the U.S.
costs us at least $21 billion over five years. That must be corrected.

                       GASOLINE PRICES IN SELECTED COUNTRIES
                                      1992

   $6.00 +.....................................................................
         |
         |
         |                                                            $5.00
D  $5.00 +.........................................................**********..
O        |                                                         **********
L        |                                                         **********
L        |                                                         **********
A  $4.00 +.................$3.75.........$3.69.........$3.85.......**********..
R        |               **********    **********    **********    **********
S        |               **********    **********    **********    **********
         |               **********    **********    **********    **********
P  $3.00 +...............**********....**********....**********....**********..
E        |               **********    **********    **********    **********
R        |               **********    **********    **********    **********
         |               **********    **********    **********    **********
G  $2.00 +...............**********....**********....**********....**********..
A        |               **********    **********    **********    **********
L        |   $1.19       **********    **********    **********    **********
L        | **********    **********    **********    **********    **********
O  $1.00 + **********....**********....**********....**********....**********..
N        | **********    **********    **********    **********    **********
         | **********    **********    **********    **********    **********
         | **********    **********    **********    **********    **********
   $0.00 |---------------------------------------------------------------------
              U.S.         Japan        Britain       Germany        Italy

We need to equalize and simplify the tax code. Our current system is like an
old inner tube covered with patches. Most of the patches were put there to
protect some special interest. We need a new, simpler system. One, it must be
fair for everyone. Two, it should be paperless for most people. Although the
new system will not cause tax rates to rise, it will cause overall revenues to
rise because it would eliminate many of the gimmicks that lawyers and
accountants employ to gain advantages for their clients.

                      GET OUR ALLIES TO SHARE THE BURDEN

For forty-five years we have defended Japan and Germany. It has been a
necessary investment in our own security. Two things have plainly changed:
one, the threat of a hostile superpower poised to attack us has vanished. Two,
we can't afford it anymore.

Collective security is still a common goal we should continue to pursue. Let's
make it truly common. Asia and Europe should pay $100 billion toward their own
defense. I fully realize this might, for example, double Germany's and Japan's
defense budgets. But look at the graph on military spending. They now pay much
less for defense than we do. This is a burden they must accept.

All of us have an interest in maintaining an American presence in Europe and
in Asia. All of us are aware of the threat terrorist states pose to our
people's safety. All of us are aware that the breakup of the Soviet Union
could lead to dangerous situations on both its western and eastern borders. As
we face an uncertain future in an uncertain world, all I ask is that the Asian
and European countries bear their share of the defense burden with us.

                              1991 MILITARY SPENDING

   $300 +...... $295.10 .......................................................
        |   ***************
        |   ***************
        |   ***************
        |   ***************
B  $250 +...***************....................................................
I       |   ***************
L       |   ***************
L       |   ***************
I       |   ***************
O  $200 +...***************....................................................
N       |   ***************
S       |   ***************
        |   ***************
O       |   ***************
F  $150 +...***************....................................................
        |   ***************
D       |   ***************
O       |   ***************
L       |   ***************
L  $100 +...***************....................................................
A       |   ***************
R       |   ***************
S       |   ***************
        |   ***************
    $50 +...***************....................................................
        |   ***************             $34.36                  $32.89
        |   ***************         ***************         ***************
        |   ***************         ***************         ***************
        |   ***************         ***************         ***************
     $0 |----------------------------------------------------------------------
             United States              Germany                  Japan

                                   FEDERAL DEFICIT

   $350 +.................................................................
        |                                                            ****
B       |                                                            ****
I  $300 +............................................................****
L       |                                                            ****
L       |                                                            ****
I  $250 +.......................................................****.****
O       |                                                       **** ****
N       |                                                       **** ****
S  $200 +..................................................****.****.****
        |                                                  **** **** ****
O       |               ****      **** ****                **** **** ****
F  $150 +...............****......****.****................****.****.****
        |               **** **** **** ****                **** **** ****
D       |               **** **** **** **** **** **** **** **** **** ****
O  $100 +..........****.****.****.****.****.****.****.****.****.****.****
L       |          **** **** **** **** **** **** **** **** **** **** ****
L       |          **** **** **** **** **** **** **** **** **** **** ****
A   $50 +****.****.****.****.****.****.****.****.****.****.****.****.****
R       |**** **** **** **** **** **** **** **** **** **** **** **** ****
S       |**** **** **** **** **** **** **** **** **** **** **** **** ****
     $0 |-----------------------------------------------------------------
         1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
                                                                    (est.)

                        1992 U.S. GOVERNMENT INCOME: 1.1 TRILLION
                              (originally in pie-chart form)

B    $0_________
I      |.......|
L      |.......|
L      |.......|<-- Excise Taxes ($47 Billion)  3.90%
I      |.......|
O   $50|.......|
N      |#######|
S      |#######|
       |#######|<-- Other ($52 Billion)  5.19%
O      |#######|
F  $100|#######|
       |\\\\\\\|
D      |\\\\\\\|
O      |\\\\\\\|
L      |\\\\\\\|
L  $150|\\\\\\\|<-- Corporate Income Tax ($98 Billion)  9.09%
A      |\\\\\\\|
R      |\\\\\\\|
S      |\\\\\\\|
       |\\\\\\\|
   $200|\\\\\\\|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $250|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $300|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $350|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $400|+++++++|<-- Social Insurance Receipts ($415 Billion)  37.66%
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $450|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $500|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $550|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $600|+++++++|
       |+++++++|
       |+++++++|
       |$$$$$$$|
       |$$$$$$$|
   $650|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $700|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $750|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $800|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|<-- Individual Income Taxes ($476 Billion)  44.16%
   $850|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $900|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $950|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1000|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1050|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1100|$$$$$$$|
        ------- <-- TOTAL $1.1 TRILLION DOLLARS

                      1992 U.S. GOVERNMENT EXPENDITURES: 1.5 TRILLION
                              (originally in pie-chart form)

B    $0_________
I      |.......|<-- International ($20 Billion)  1.3%
L      |.......|
L      |#######|
I      |#######|
O   $50|#######|
N      |#######|
S      |#######|
       |#######|
O      |#######|
F  $100|#######|
       |#######|
D      |#######|<-- Net Interest ($199 Billion) 13.3%
O      |#######|
L      |#######|
L  $150|#######|
A      |#######|
R      |#######|
S      |#######|
       |#######|
   $200|#######|
       |#######|
       |#######|
       |///////|
       |///////|
   $250|///////|
       |///////|
       |///////|
       |///////|
       |///////|
   $300|///////|
       |///////|
       |///////|
       |///////|<-- General Government ($216 Billion) 14.4%
       |///////|
   $350|///////|
       |///////|
       |///////|
       |///////|
       |///////|
   $400|///////|
       |///////|
       |///////|
       |///////|
       |///////|
   $450|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $500|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $550|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|<-- National Defense ($313 Billion) 20.9%
   $600|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $650|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $700|+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
       |+++++++|
   $750|+++++++|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $800|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $850|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $900|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
   $950|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1000|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1050|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1100|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|<-- Entitlements ($728 Billion)  48.5%
       |$$$$$$$|
       |$$$$$$$|
  $1150|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1200|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1250|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1300|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1350|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1400|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1450|$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
       |$$$$$$$|
  $1500|$$$$$$$|
        ------- <-- TOTAL $1.5 TRILLION DOLLARS

                               IS IT POSSIBLE?

Can we repair the damage to our economy, permanently cut the size of
government, protect the programs so necessary to our people, and rid our
children of this massive load of debt?

Yes.

By taking these steps, we can save $754 billion over five years. In the fifth
year we will have a budget surplus of $10 billion.

This $754 billion will not be allowed to fall into the black hole of
government. It will not go to special interests. It will not be squandered
away on new programs or favorite causes of members of Congress. We will
permanently reduce the cost of government. Except for the tax revenues
committed to special purposes, it will go to the American people to invest and
to save.

Many Americans have lost confidence in our government. You must not walk away.
You have the vote. You are the owner. You can study the facts. You can demand
that they be changed.

You are the owner. Only you can rebuild America.

Individually you have no voice. Together, we can change the world.

Newsgroups: alt.politics.perot,alt.politics.elections,talk.politics.misc
Path: nntp-server.caltech.edu!elroy.jpl.nasa.gov!ames!think.com!wupost!csus.edu!netcom.com!mpye
From: [email-masked] (Michael Pye)
Subject: Perot's Plan (3/4)
Message-ID: <[email-masked]>
Date: Tue, 29 Sep 92 15:10:42 GMT
Organization: Netcom - Online Communication Services  (408 241-9760 guest) 
Lines: 989
Xref: nntp-server.caltech.edu alt.politics.perot:2954 alt.politics.elections:14640 talk.politics.misc:91347

                      AN AMERICA THAT PROSPERS (chapter 4)

"Made in the USA" can once again become the world's standard for excellence.
The United States can again become the preeminent economic power on earth.

Nothing can stop us, except ourselves.

When the Japanese planes returned to their carriers from bombing Pearl Harbor,
the fleet's second-in-command turned to Admiral Yamamoto. "You have won a
great victory, sir," he beamed. The Admiral turned away unsmiling, stared out
at the horizon, and said, "You don't understand. We have awakened a sleeping
giant."

Six months later the American fleet crushed the Japanese in history's first
great air-sea battle at Midway Island.

There is nothing to stop us from being the most productive nation on earth.
There is nothing to stop us from creating jobs that produce real wealth for
our working people. With strong leadership and involved citizens, there is
nothing to stop us from creating new industries and technologies that will
dazzle the world.

We are up against fine competitors. They know how to work. They know how to
finance their industries. They know how to produce excellent products. They
know how to use government to promote their growing economies.

Like it or not, we live in a tiny world. The international competition is
fierce. Every day somebody wins and somebody loses. In business they don't
hand out red ribbons when you lose. Instead, they hand out pink slips, close
factories, put families on welfare, and shut down entire towns.

America must be put back to work.

The next administration must move immediately to stimulate thousands and
perhaps even millions of new small businesses, to target industries of the
future where American know-how can take the lead, and to break down the
adversarial relationship between business and government that sends jobs
overseas.

                                   CREATE NEW JOBS

The vast majority of our new jobs won't come from our biggest employers. They
will come from our smallest. Americans are by nature an entrepreneurial
people. Almost everyone has an idea for a new product, a new service, a new
shop, a new kind of delivery system, a new way to make a living and maybe even
to make a fortune. We've got to do everything we can to make these dreams a
reality.

* Free up credit. The deregulation of our banks and savings and loans was
poorly thought through and poorly executed. Now we have to repair the damage.
Our small businesses are starved for credit. People with good ideas can't get
loans. The regulators came to a recent board meeting of a savings and loan to
read a message from the administration telling them to start making loans. The
board listened with utter bafflement. The day before the same regulators had
required them to tighten their capital requirements, which meant they couldn't
make any new loans. We need government officials who understand credit and
take the lead in restructuring our credit markets to give access to small
businesses so they can invest for growth.

* Stimulate investment. We can establish incentives through the tax code and
in other ways to stimulate the creation of capital pools for small business
where the risk is spread out and thereby reduced. Most new businesses are
founded on less than a $100,000 investment.

* No capital gains tax for small business investment. We should eliminate any
tax on gains made for investment in starting small businesses. This is the
quickest and surest way to convince investors to take the risk of backing
entrepreneurial ventures.

* Establish mentor programs. Small businesses fail for two reasons: lack of
money and lack of experience. We have a huge resource in our talented retired
people. Our retirees are younger and more fit than at any other time in our
history. Let's put them to work. Programs are already in place that
demonstrate how effective retired executives can be in mentoring young
companies.

Today very talented college graduates can't get jobs. Well-trained and highly
disciplined military personnel coming out of the armed services don't have
jobs. These people know how to organize. They know how to execute. We need to
stimulate the private sector to provide them with mentors, capital, and
credit. They will create jobs.

                              TARGET GROWTH INDUSTRIES

We cannot afford to keep this nation organized to fight the Cold War. We no
longer have an enemy. Today we're engaged in a new war for economic survival.
We have competitors. We are not threatened with nuclear destruction. We are
threatened with economic decline. To a family that just lost its house because
it couldn't pay the mortgage, to the single mother who just went on
unemployment because she lost her job, to the father who just realized he
won't be able to pay his children's tuition for college, this war is real and
personal.

We put the entire resources of our nation behind winning the Cold War. We
built an interstate highway system because we needed to be able to quickly
transport military material and personnel across this continent. We paid for
the finest aerodynamic engineering and design because we wanted to dominate
the skies. We created NASA because we wanted the quickest and most accurate
intelligence on our enemies.

Look at the byproducts of the public investments we made in our national
security: good transportation routes for commerce, the world's leading
aerospace industry, and the satellite communications industry. Where would we
be without them?

Where will we be in twenty years if we don't continue to make important public
investments?

The Japanese learned from our Pentagon, applied the lesson to business, and
proceeded to beat us at our own game. The Japanese ministry of international
trade and industry targets industries of the future ten years in advance and
then applies prudent incentives to the marketplace to make sure those
industries are nurtured and grow. Don't tell me that the Japanese are
different: homogeneous, regimented, willing to follow orders. We've been doing
the same thing they're doing for forty years but only in defense policy.

Some academics say this is a violation of the free market. Don't they realize
that the biogenetics industry is the result of our federally funded research
universities and the National Institutes of Health?

I am an advocate of fair, free trade. To keep the free market dynamic and our
nation competitive, new industries sometimes need to be fertilized and
incubated. If our competitors are looking ten years ahead, we must look
fifteen years ahead and beat them.

Instead of continuing to lose whole industries, we must fight to be
competitive in every arena of the future. Take a look at your VCR, or your
television, or even your telephone. They weren't manufactured here. They may
have American names on them, but they were made overseas. We have allowed
entire industries to vanish. Our loss is another nation's gain.

We can be winners. We can target and stimulate new industries, applications,
and inventions that have not even been conceived of yet. We can nurture them,
and we can back them against competition. We can put all our muscle behind
industries that produce jobs and a higher standard of living for all
Americans.

               PUT GOVERNMENT ON THE SIDE OF JOBS AND GROWTH

We have an adversarial relationship between government and business. This has
got to stop. We need to put government on the side of investment, new
industries, and better jobs.

One example of government getting in the way is the Sherman Anti-Trust Act. It
was passed in 1890 when we were concerned that our large companies were
getting so big they would dominate the market.

Over a hundred years later, isn't it time to face up to the fact that the
world has changed? We're no longer competing against each other. We're
competing against other countries. Don't worry about our businesses getting
too big; worry about our businesses getting too small. Nobody needs to be
frightened about General Motors taking over the automotive industry. We've got
to be concerned about General Motors succeeding in the automotive industry.
It's time for Congress to wake up to the new realities and stop clinging to
the ideas of the past. We urgently need substantial revision of laws that
impede our ability to compete.

We can't have employees without employers. We need to relieve the immense
burden of paperwork we have placed on small businesses. Anybody with under one
hundred employees should only have to fill out a one-page form once a year.
That's for Social Security, unemployment compensation, health insurance,
safety regulations, and compliance with civil rights legislation. We've turned
our small businessmen into bureaucrats. We have more than enough bureaucrats
already. We must free our small business people to improve their products, to
perfect their services, and to be successful so that they can grow and hire
more people.

We can depend on the ingenuity and hard work of our people. Americans know how
to get the job done. Government's role should be to support business: creating
jobs and creating taxpayers.

Once we make these changes, nothing can hold America back from becoming the
leading economic superpower on earth.

                              ENCOURAGE SAVINGS

I talk to people in all walks of life. I sense this current recession has had
one good effect. "Let the good times roll" will definitely not replace "In God
We Trust" as our national slogan. For a while I was worried.

Nobody believes any longer that their home equity values will rise
indefinitely, giving them a tidy nest egg for retirement. In fact, in this
recession many home values have declined. Many people have seen their down
payments eaten away. Nobody believes that their paychecks will increase ahead
of inflation every year. Most feel fortunate to have a paycheck at all.
Everyone knows someone who is unemployed. Nobody in the baby boom generation
that I've met believes any longer that he or she will be able to count on
Social Security being solvent twenty-five or thirty years from now when it's
time for their retirement. Many believe they will have to provide for
themselves.

This is not happy news, but we can turn it to good use. We can declare as a
people that our national spending spree is over. Now we can redirect our
energy to building our savings.

We need to replenish our national savings pool so that we have capital to
invest. We're saving at a rate of 4 percent compared to the Japanese at 18
percent and the Germans at 10 percent. This is not just dry economic theory.
Capital is the very lifeblood of the capitalist system. Capitalism simply
can't operate without capital. Our economic engine needs capital, and it needs
it now.

We need it for two good reasons.

First, our companies now pay a higher cost for money than companies in Japan
and Germany. It's tough to compete when your interest payments are higher than
your competitors. He can put that extra money into the productyou can't. By
increasing our savings, we reduce the cost of investment.

Second, we are borrowing foreign money. Foreign money kept us afloat during
the lg80s. That money can leave just as easily as it came. Look at Germany as
a case in point. The absorption of East Germany into West Germany's economic
bloodstream will cost billions. Germany's excess cash is no longer available
to invest in America.

We need to take steps to reinstill the ethic of saving among the American
people. I sense the people are ready for it. When this recession ends, I don't
believe we'll go back to spending every nickel we earn.

We need to press immediately for pro-savings incentives on all fronts. This
problem has been studied and restudied. There are hundreds of good ideas for
increasing individual retirement accounts, creating college tuition funds and
home equity pools, allowing tax-free personal savings accounts, and offering
other solutions to the problem of enlarging our capital base. It is not the
world's most difficult task to sift through these ideas, calculate the
benefits versus the costs, open up the results to a national debate, and then
enact a package of actions to reverse the present trend.

We should do more than that. The Secretary of Education should create a
program whereby our children can participate in this great national endeavor.
We need to reinstill these values in our culture. Children in America
contributed to the Liberty Bonds during World War II. Our children today need
to know how important savings are. Our goal should be to ingrain in the next
generation the lesson that was temporarily lost in the present one.

Once again, we cannot afford four more years of talk and buck passing. The
committees have already met. The studies have already been done. Meanwhile,
we're losing industries and jobs by the day.

The American people are ready to act. They need a Congress and a President
willing to lead.

                         ENCOURAGE PRIVATE INVESTMENT

We're not investing in our future. From 1980 to 1989 Japan had an investment
rate of 16 percent of gross domestic product. Ours was 4.5 percent. Who is
going to win the race?

I grew up in a farming community. Time and time again we were told stories
about the farmer so down on his luck that he had to eat his seed corn instead
of planting it. Today our companies are eating their seed corn. They ought to
be planting it. We can change the incentives to make them want to plant
instead of consume.

Once again, there's no reason to sit on our hands and stare at the ceiling.
The policies have already been proposed that can reverse our slide and get the
economy moving for the long term.

* Investment tax credits. We can stimulate growth by providing tax credits to
companies that buy productive equipment and machinery.

* Research and development tax credits. We need to encourage our companies to
put their money into new improvements, new products, and new lines of
products.

* Tax breaks for long-term capital gains. My Republican friends are wrong to
think this is the magic cure-all for what ails us. My Democratic friends are
wrong to think this is just a present to the rich. If we want our corporate
executives to think long-term we have to make their investors think long-term.
If shareholders aren't squawking for a short-term gain, the company can
concentrate on improving its product so it can survive, compete, and grow. We
need a stair-stepped capital gains tax, decreasing each year over five years,
on shares purchased from public companies with the money going into the
treasury to build the company. This would provide the proper incentives to
industry and to the market.

                           INVESTMENTS AS A PERCENT OF GDP
                                   1980 TO 1989
        
                                                              16%
16.0% +                                                 ***************
      |                                                 ***************
14.0% +                                                 ***************
      |                                                 ***************
12.0% +                                                 ***************
      |                                                 ***************
10.0% +                                                 ***************
      |                                 8%              ***************
 8.0% +                           ***************       ***************
      |                           ***************       ***************
 6.0% +                           ***************       ***************
      |          4.5%             ***************       ***************
 4.0% +     ***************       ***************       ***************
      |     ***************       ***************       ***************
 2.0% +     ***************       ***************       ***************
      |     ***************       ***************       ***************
 0.0% |_______________________________________________________________________
             United States            Germany                Japan

                      ENCOURAGE ENVIRONMENTAL PROTECTION

This planet is our home. If we destroy the planet, we've destroyed our home.

America has always valued its wealth of natural resources, next to its people,
as its most important asset. When we pollute our air and contaminate our
water, waste our energy resources, and destroy our wilderness and wildlife, we
squander our national wealth.

When we think about how to use our natural resources, we have to think ahead
one hundred years, not just two, five or ten years. We can hand over to our
children the world's most dynamic economy and the planet's most beautiful
environment.

The principles that should guide us will accomplish protection for our
environment while stimulating the growth of our economy.

* Conservation makes basic economic sense. Pollution equals waste. A
competitive economy depends on a clean environment. Preventing pollution
before it happens is cheaper than cleaning it up afterwards. Recycling and
conservation are morally and economically sound policies.

* We should support business strategies for sustainable economic development
and assist local communities in making the transition away from dying
industries.

* Businesses which depend upon the purchase of publicly owned resources at
below-market prices offer the illusion of prosperity, not the reality. Stop
subsidizing inefficient, environmentally destructive activities in the mining
and timber industries that promote private gain at public expense.

* Over-regulation only fouls things up. Our mission is to clean things up. We
spend over $100 billion a year to comply with environmental regulations. We
should support incentives over regulations to achieve environmental goals.
Give people and businesses an incentive to do things the right way in the
first place, and they will.

* We need to take the lead in defining the future of global economic
development. It is in our best interests to help countries that seek to
stabilize their population growth to decrease poverty.

* American companies should be at the forefront of emerging global markets for
environmental technology. In 1980, more than 60 percent of the pollution
control equipment used in the United States was domestically produced. In
1990, the figure was less than 35 percent.

* We should invest in research. On too many environmental questions we don't
even have agreement about the scientific facts. We can't operate in the dark.
We certainly can't afford to create solutions to problems that may not exist.
We need to get the facts straight. We don't need to create false choices. We
can't afford a debate that doesn't need to take place.

A strong, considered environmental strategy based on these principles can
create growth and jobs, not retard them.

                        CREATE A LONG-TERM ENERGY POLICY

A fundamental part of our approach to the environment is a consistent,
long-term energy policy. We recently fought a war that cost precious human
lives. It might have been avoided if we were not so dependent on foreign oil.
We have ignored our wasteful use of energy sources and the related foreign
dependency for far too long. Like so many of our problems, our energy problems
call for leadership with an eye to the future.

Let's start with cutting down on imports. We import 40 percent of our energy
requirements. One-third of our imports come from Persian Gulf countries and
other members of OPEC. We should increase motor fuel taxes which will help
reduce this dependency and give us money to create jobs.

We can do more. We need a national policy that conserves fuel through
education, research, regulations, and market incentives.

At the same time, we should strive for better balance in the use of the
various energy resources available to us, including natural gas, nuclear
power, and coal. We should reexamine the heavy regulation of the natural gas
industry. It is likely that nuclear power will be a major source of the
world's energy in the next century. We should take the lead in developing a
safe standard modular reactor and expand our research and education regarding
waste disposal.

Coal is our largest single domestic source of energy, and we have more than a
two-hundred-year supply at current consumption levels. We should increase
research and development efforts to obtain clean-coal technologies. They will
be of value to us and to other countries. As good global citizens we should
lead the way in finding ways for other countries to grow while preserving the
environment.

Finally, there are many alternative, renewable energy sources: solar,
hydroelectric, wind, biomass, and geothermal. In most cases the cost of them
is now too high to allow much use. That may not always be true. Unfortunately,
the government has wasted a good deal of money promoting these sources
unrealistically in expensive programs like the synthetic fuels corporation.
Nevertheless, we should continue to encourage ;he future low-cost production
of these sources with modest research and development programs.

With all of these efforts we will have a stronger, more productive America.

                             "ACTION THIS DAY!"

At England's darkest hour, Winston Churchill rallied his people with stirring
words, and he offered much more than just the words. He gave them leadership,
decisiveness, and a sense of urgency. On memo after memo now preserved in the
archives from the war ;ears, are Churchill's scribbled words "Action this
day!''

Churchill successfully instilled in his commanders and ministers the idea that
when survival is at stake, any action worth taking is worth taking now.

We need this same lesson in our country. We need it instilled in our
government, in the Congress, in our industries, and among our people. Stop
bickering. Stop blaming each other. Stop posturing for partisan advantage.
Stop dodging the hard decisions. 

There is work to do.

                      AN AMERICA THAT WORKS (chapter five)

The American dream.

Those three short, simple words encompass the hopes and aspirations of all the
peoples on earth. The words are not only short and simple. They are also
fragile.

A dream denied can shrivel and die like a raisin in the sun. The President and
Congress don't need to look very far to see that the American dream has
deteriorated for many people. They only need to look out their windows in
Washington, D.C. Here is our nation's capital, with its monuments and parks,
its statues and museums. It should represent everything that we are as a
people. Instead it represents neglect, incompetence, and shame.

Washington i6 the murder capital of the nation. By the time its children reach
the fifth and sixth grades, 31 percent of them have witnessed a shooting, 43
percent have witnessed a mugging, 67 percent have witnessed a drug deal, and
76 percent have witnessed an arrest. These are fifth- and sixth-graders!

Have we lost our sense of decency? Have we lost our ability to be outraged?
Have we given up on the children of our cities?

After all, we created the quagmire we now expect these children to grow up in.
We need to face the fact that 72 percent of black children born between 1967
and 1969 have been dependent on welfare for some portion of their young lives.
A young male in Bangladesh has a better chance of reaching age 55 than a young
male in Harlem.

Go to London, Paris, or Rome. These cities have existed for centuries upon
centuries. They are bustling and alive, clean and well-maintained. They, too,
have their share of the urban poor. Now revisit the cities we know so well:
New York, Philadelphia, Detroit, Los Angeles, or most of our other major
cities. These are relatively new, but parts of them are dirty, rundown,
littered with abandoned buildings, and ravaged with drugs, crime, and
violence.

In my church on the Sunday nearest the Fourth of July we sing "America the
Beautiful." Every year I am struck by that one verse: "Her alabaster cities
gleam, undimmed by human tears."

Why shouldn't our cities gleam?

Why shouldn't our children be untouched by human tears?

I believe in the American dream. I've experienced it. I know it not as some
faraway ideal but as a living, breathing reality. It exists. It is real. It
can happen. It takes work and faith and perseverance and caring. It can never
be a gift bestowed by government.

The federal government has tried program after program, and our cities have
gotten worse. Instead of figuring out how to develop a solution that works, we
assumed that simply spending money would make the problems go away.

For example, we spent billions on urban renewal and model cities programs, but
our cities weren't renewed and they're certainly not models.

Neglect doesn't work either.

I believe that most of our people want to share in the American dream. We must
put a ladder down to reach them so they can climb out of the mire we've put
them in. After so many years it's not surprising if people don't know what a
ladder looks like or where it leads. We should reach out to give them a lift
to the first rung. We should reawaken in them the dream of what they can
achieve if they try to make it up that ladder one step at a time. After that,
the climbing is up to them. Soon it will be their turn to reach down and lend
a hand. That's the way America is supposed to work.

                              REFORM EDUCATION

Failing schools and shoddy performance are undermining our nation's ability to
compete and our children's expectations for the future.

If this were only a problem in our inner cities, we could concentrate our
attention there. It's not. Even our richest suburban schools and our private
schools are failing to produce results that measure up on a global scale. The
top 1 percent of American students are matched by the top 50 percent of
Japanese students. In a recent math competition, the top 1 percent of American
students scored the lowest of the top 1 percent of any other participating
nation. Bankrupt, exhausted, and struggling, Russia has five million young
people studying calculus. The United States has only 500,000. Russia may be
bankrupt, but it's planting seeds for the future. When harvest time comes, it
will reap the benefit.

We lead the world in only one educational category. We spend more per public
school student than any other nation.

I've been personally involved in education for years. I know the territory. In
1983, the governor of Texas asked me to head a committee to overhaul the Texas
public school system to improve results. Against fierce opposition from
entrenched interests, we were able to make considerable headway. I know it can
be done.

From the perspective of those years spent on the front lines, I see the major
causes of our educational failure to be these:

* We don't have good preschool training.

* Parents aren't thought of as consumers.

* Schools are bogged down by bureaucracy.

* We don't have national standards. We don't hold local schools accountable
  for their product.

* We don't reward students and teachers for success.

* We haven't made learning the first priority.

* Our schools aren't organized to meet society's needs.

Don't tell me that money is at the root of the problem because it isn't. We
spend billions a year on education. More money poured into the same system
will only produce the same results.

We can't expect overnight success. We can start with steps that will turn into
strides if we pursue excellence with dedication and hard work.

Today there are programs that have proven successful in regions all over the
country. There are new pilot programs just starting up. Washington's role
should be to establish the means of measuring results and to encourage the
spread of successful programs throughout the country. Washington should show
local districts how to reallocate tax money away from things that don't work
to things that do. The President must use his "bully pulpit" to press again
and again for change. Here are the specific steps I recommend:

1. Establish comprehensive preschool programs. Countless studies have proven
that $1 spent on preschool programs will save at least $5 down the line.
Thousands of children enter first grade without the necessary learning and
social skills needed to succeed. I've seen firsthand how early intervention
and development centers can change children from even our most bleak and
blighted neighborhoods. I've seen a little four-year-old girl sitting on the
wooden steps of a tiny house in a poor area playing the violin with the whole
neighborhood gathered around, filled with admiration and pride. She went to a
special school. It changed her life. The logo of that school was a thumbprint.
The message of that thumbprint, taught to those children every day, is that
each person is unique and special, that every person has talents, that if you
believe you are somebody you will become somebody. Our children need more than
a "head start." Our children need and deserve a "running start."

2. Spend Federal dollars to spread programs that work. The Department of
Education currently spends $148 million on "Research, Statistics and
Assessment." Most of these studies end up in the files. We don't need more
studies. In the small towns and local school districts across America, there
are many success stories. We should reallocate the research money to spread
the word and to encourage implementation of these successful programs. Let's
stop trying to re-invent the wheel.

3. Empower parents. Our system is upside down. The producerseducators,
experts, administrators, bureaucratshave all the power. The
customersparentshave very little power. Let's turn the system rightside up.
The producers are better organized, as I know from my own experience.
Successful producers listen to their customers. We should start by giving
middle class and poor parents the same option that wealthy parents have:
choice. We should encourage all school districts to allow parents to choose
which school within that district their child will attend. This move alone
will put pressure on districts to provide equitable choices, with ready access
to all. We should also act to remove any federal obstacles to states allowing
choice among public, private, and parochial schools. We won't know if this
will work until several states try it on a pilot basis. The time to debate is
after the results are in. Washington doesn't have the answers. That's been
proved beyond debate. Parents may not have the answers, but they are as close
to the problem as anyone will ever get. Nobody else has more reason to care.
They should be empowered as consumers to achieve excellence for their
children.

4. Restore local autonomy with accountability. Our federal government, our
states, and even larger urban school districts hamstring our local schools
with bureaucratic orders from on high. Our most successful schools hold one
thing in common. They have a determined principal who is an academic leader
and who takes pride in the achievements of the students. We can neither bind
our principals with regulations nor allow incompetent principals to stay on
the job.

5. Establish national standards and measure results. We'll never fix this
system until parents, as consumers, can plainly see how schools measure up
against one another and against the world competition. This information is
practically impossible to obtain today. Parents should be able to know how
their elementary school performs against the nation's and the world's.
Employers need to know how their local school districts perform against others
in their state. Principals and teachers need to see where they are succeeding
and where they need to concentrate their resources for improvement. Right now
we have a $185billion enterprise operating essentially in the dark. We
shouldn't be surprised that it doesn't work. We need to haul it out into the
light of day, measure results, student by student, in a thorough, fair way and
publish the results school by school for everyone to see.

6. Make learning the first priority. When I first studied the Texas
educational system, I was surprised to discover how little time in each school
day is actually devoted to learning. Junior high and high school students do
not need baby-sitters. They do not go to school to play. These are young
adults, and they go to school to learn. We all want our children to be
well-rounded and sociable and involved in activities. However, the public is
paying for first things first, and the first thing it is paying for is
education. Extracurricular activities should take place at the end of a full
day of learning. Participation should be allowed only for those students who
have demonstrated their willingness to accomplish their academic goals.

7. Treat teachers as respected professionals. Good teachers are the heart of
our drive for excellence. They should be rewarded with better pay and with
community recognition. Their professionalism should be underscored by holding
them to standards as rigorous as their counterparts in law or medicine. We
should also broaden the available pool of excellent teachers by reexamining
the certification process that often acts more as an obstacle to excellence
than as a standard of excellence. College professors, business and legal
professionals, and military professionals should be encouraged to teach. We
have thousands of non-commissioned and commissioned officers who will reenter
the civilian job market as the defense budget decreases. These are experts in
the single most successful educational enterprise on earththe United States
military. We should put them to work where we need them the most, in our inner
city schools.

8. Make better use of school buildings. We have a vast infrastructure that too
often goes unused during part of the day and part of the year. We could use
these buildings before and after hours for day-care, routine medical clinics,
adult literacy teaching, and other purposes. School districts should be
encouraged to stretch their school year and keep the buildings in use. We
should draw adults into the learning center of the community's children and
try to cultivate shared values by bringing people together.

Right now our federal government continues blindly down the path we put it on
a generation ago. That path leads nowhere. We need to change direction. We
need to be more concerned with outcomes and results than with maintaining a
status quo that has clearly failed. This is the first rung on the ladder to
the American dream, and we need to plant each child's foot firmly in place to
begin the climb.

                       IMPROVE LIFE IN OUR INNER CITIES

Our cities cannot be allowed to die. They are the sinew and muscle of our
industrial base. They are filled with people who could add to the productive
wealth of our nation.

The key issue in our cities is jobs. A robust and expanding national economy
could do more to improve the well-being of our cities than all the handouts
ever conceived of. By expanding the economy and by focusing on job creation in
our cities, we can turn tax-users into tax-payers. This would build dignity
and self-esteem,  save the rest of us money, and increase our overall economic
strength.

Many of the past programs to aid the cities have fallen victim to the
pork-barrel mentality. For example, the original model cities program was
meant for only ten to fifteen of our urban centers. By the time it got through
Congress it was spread across 160 and diluted to the point of uselessness. The
recent bill resulting from the Los Angeles riots found itself held hostage
until rural areas received a portion of the money for their own development.
The Congressional leadership should show some by keeping Congress focused on
attacking our problems, not on trying to make everyone happy.

The way to change our cities is to change the incentives. When the proper
incentives are in place, the people themselves take matters into their own
hands.

That's why I strongly support enterprise zones, with demonstrable, real-world
incentives to induce companies to create jobs in our inner cities. The recent
package passed by Congress is a watered-down version of what we really need.
Congress seems to be afraid that somewhere, somehow, somebody will make money.
A strong enterprise-zone package won't encourage big businesses to evade taxes
by moving into depressed areas. Big businesses would never take the risk. The
right package will encourage the people themselves in those areas to start
their own businesses. That's where the jobs will come from.

We have millions of people struggling to get off welfare. We need income
incentives to enable people who work, even minimally, to see immediate
positive results in their monthly income. Right now we punish people who take
on jobs or try to save. That's wrong.

We need to restore pride and a sense of community. The experimental programs
already in place to allow residents in public housing to buy the homes they
live in have worked, but once again the incentives aren't there to make them
work as well as they could. The new owners don't even have the right to sell
their newly fixed-up homes to any seller. They have to sell it back to the
government. Sometimes you wonder if the people who write these laws know
anything about human nature. We ought to want to motivate people to assume the
pride of ownership that will make these communities function again.

Most of our federal employees today are focused on rules and regulations. What
good are the rules if the results are what we've seen so far? Throw out all
but the most essential rules. Give the elected leadership in our cities and
states the tools to do the job, and use the federal government to instigate,
prod, and encourage good results throughout the nation.

                           REDUCE CRIME AND DRUG USE

We've been fighting phony wars on crime and drugs. If this were a real war,
the enemy could comfortably declare victory. Between 1981 and 1990, the
violent crime rate increased 23 percent, the forcible rape rate increased 14
percent, and the aggravated assault rate outpaced all other crimes, rising an
astonishing 46 percent. This was during a Republican administration.
Republicans like to think of themselves as being tough on crime. If this is
tough, I'd hate to see soft. Meanwhile, the Democrats don't have any new ideas
either. Maybe it's too unpleasant for them.

In 1990, one murder was committed in the United States every 22 minutes, an
all-time high.

Crime is often linked with drugs. More than half the people arrested in our
major cities tested positive for one or more illicit drugs.

In 1991, more than one million Americans used crack cocaine or heroin for the
first time.

The result? Our people are afraid to go out at night in their own
neighborhoods. We're not talking about traveling across town. We're talking
about walking the dog. Millions of innocent people have wrongfully been put in
jail. They've had to put bars on their windows, multiple locks on their doors,
and security alarms everywhere. They've had to turn their houses into prisons
while criminals rule the streets.

Crime and drugs cost our country millions of dollars in lost productivity,
larger prisons, clogged courts, overworked law enforcement, strained medical
and health facilities and personnel, and the terrible social costs of
destroyed families and individuals.

We watch on television the awful images of a place like Sarajevo, and our
hearts go out to those people. Many of our own cities and towns are
mini-Sarajevos every night of the week. We cannot offer hope and succor to the
rest of the world if we cannot bring hope and relief to our own crime-ridden
streets.

Drugs are the source of many of our rising crime statistics. The drug problem
at its core is a reflection of our social decay, resulting from the
dissolution of the family structure, lack of economic opportunity, and the
decline of individual responsibility. We can't restore virtue by the snap of
the fingers. That's no reason not to assert strongly the basic moral precepts
by which any decent society lives and by which healthy men and women are
raised.

As this message is repeated, especially in our schools, programs must be put
in place to help drug addicts escape from the pit they've dug for themselves.
Specifically, treatment must be available so that when an addict is ready to
confront his or her affliction, help is ready at that moment. Right now more
than five million Americans are awaiting drug treatment, including 400,000
teenagers and 100,000 pregnant women. We can only handle 32 percent of the
load. The rest are left to fall even deeper into the pit.

Almost 80 percent of prisoners released from state facilities end up back in
prison. Our prisons are so overloaded that the majority who commit major
crimes serve only one-third of their sentences. This is a terrible fact. One
thing that might help is to require mandatory drug testing and counseling for
prisoners, parolees and probationers, with automatic penalties for those who
fail to stay off drugs.

While lowering demand, we also have to reduce supply. Having 19 different
federal agencies and over 40 different programs only leads to duplication of
effort, turf battles, and bureaucratic paralysis. To be effective, the federal
drug Czar should have administrative and budgetary responsibility for all our
drug control programs, including the coordination of our efforts with other
governments.

We've allowed drug and crime syndicates to lure many of our young people into
selling drugs. The money's good, but the life expectancy isn't. We need to
disrupt the marketing chain and salvage these young people.

We should take these steps:

* Apply all appropriate statutes to prosecute gangs and ask the nation's
prosecutors and U.S. attorneys what further legal tools they need.

* Mandate life sentences without parole to persons convicted of three violent
crimes, no matter at what age those crimes were committed.

* Make literacy and a marketable skill a precondition for release from prison
for criminals convicted of violent crime.

* Make federal facilities, especially former military bases, available to
states to establish rehabilitation centers for youths convicted on drug or
violent crime charges.

* Try joint public/private experiments in diverting gang members from criminal
enterprises to legal profit-making enterprises.

The primary responsibility for law enforcement rests with our state and local
governments. So far they have borne the brunt of a losing battle. The federal
government can provide active leadership, establish a national strategy, act
as the coordinating arm for local governments, and provide financial
assistance to help communities plagued by drugs and violence.

We have to face the facts. We are 5 percent of the world's population, and we
consume about 50 percent of the world's drugs. We cannot survive if that one
statistic holds up much longer. If the measures I've recommended above don't
work, let's try new ones. If those don't work, try new ones. Admit mistakes,
own up to failure. The American people are tired of a government that tries to
hide the facts and paint a rosy picture. We know how tough this plague is to
eradicate. We want a government that confronts it day after day, that spells
out its failures, and that opens its successes to public debate. That's the
only way we'll ever reach the day when a President can stand before the people
and honestly say, "We've found the solutions. We're putting them to work right
now."

                    MAKE OUR HEALTH CARE THE BEST IN THE WORLD

We spend more than anybody else in the world on health care, as the
accompanying graph shows. We have 37 million people who aren't covered at all.
We rank 15th in life expectancy and 22nd in infant mortality. We're paying top
dollar for a front-row box seat, and we're not even getting a bad show from
the bleachers.

That's the bad news. The good news is with the money we're spending now we can
have the finest, most modern, and most comprehensive health care in the world.

We've been talking about health-care reform since Truman was President. The
reason we're talking about it now is because of the ballooning costs.
Health-care costs have grown at twice our economic growth rate. They are the
fastest growing part of the federal budget except for interest payments on the
deficit. Our companies are forced to divert money from jobs, higher wages, and
research and development because of skyrocketing health and insurance costs.

                         HEALTH CARE SPENDING AS A PERCENT OF GNP
                                        IN 1990

               |       .       .       .       .       .       .       .
               |**************************************************     .
 United States |**************************************************     .
               |**************************************************     .
               |       .       .       .       .       .       .       .
               |       .       .       .       .       .       .       .
               |**********************************     .       .       .
        Canada |**********************************     .       .       .
               |**********************************     .       .       .
               |       .       .       .       .       .       .       .
               |       .       .       .       .       .       .       .
               |**********************************     .       .       .
        France |**********************************     .       .       .
               |**********************************     .       .       .
               |       .       .       .       .       .       .       .
               |       .       .       .       .       .       .       .
               |********************************       .       .       .
       Germany |********************************       .       .       .
               |********************************       .       .       .
               |       .       .       .       .       .       .       .
               |       .       .       .       .       .       .       .
               |*****************************  .       .       .       .
         Italy |*****************************  .       .       .       .
               |*****************************  .       .       .       .
               |       .       .       .       .       .       .       .
               |       .       .       .       .       .       .       .
               |**************************     .       .       .       .
         Japan |**************************     .       .       .       .
               |**************************     .       .       .       .
               |       .       .       .       .       .       .       .
               |       .       .       .       .       .       .       .
               |*************************      .       .       .       .
United Kingdom |*************************      .       .       .       .
               |*************************      .       .       .       .
               |       .       .       .       .       .       .       .
               |-------+-------+-------+-------+-------+-------+-------+
              0.0%    2.0%    4.0%    6.0%    8.0%   10.0%   12.0%   14.0%

The need to act has been given a new and terrible urgency by the deadly AIDS
epidemic that has already taken such a tragic toll. This plague must be
attacked at every level: education, prevention, and accelerated research.

The problem with our health-care system is that it was jerryrigged over many
years with a patchwork of different objectives, conflicting demands, colliding
interests, and confused incentives. It's not that the programs are bad in
themselves. Some, like Medicare and Medicaid, have done an enormous amount of
good. The problem is structural. Health care needs to be reformed.

The political arena is the last place to expect a rational system to be
developed. The political system, after all, is ingeniously constructed to
allow different groups to push their own interests in the hope that the
compromises that result will benefit the whole nation. That has worked fine in
some areas. It hasn't worked in reforming a public/private relationship as
loaded with pitfalls and potential profit as our health-care system.

I suggest that we should adopt both short-term and long-term strategies. In
the short term, a cost containment and prevention program should be developed
immediately. Various health-care experts and representatives of affected
groups should have a series of work sessions with government officials. A plan
should be put into effect as quickly as possible.

In the longer term, comprehensive national healthcare reform based on a
public-private partnership should involve the following:

* Establishing a national health board as an independent federal agency to
oversee cost containment and comprehensive health-care reform efforts

* Setting a national health policy

* Encouraging problem solving by everyone involved

* Reaching a consensus on a set of principles for reform

* Determining a basic benefit package for universal coverage and appropriate
tax treatment of health benefits

* Asking states to submit comprehensive healthcare reform proposals that meet
agreed-upon principles and cost-containment targets

* Changing federal rules to allow states the necessary flexibility to conduct
pilot programs.

One important thing should be kept in mind. Preventive action works. An ounce
of prevention is worth a pound of cure." One dollar spent on prenatal care
saves more than three dollars of special care for the newborn. One dollar of
inexpensive immunizations saves ten dollars of health care and other costs.

It is only a failure of leadership that has kept us from solving this problem.
As the problems and dollars mount and our national leaders do nothing, we
begin to give in to the notion that nothing can be done. That's baloney. Our
health care and medical professionals are the best in the world.

We have the talent. We have the money. We probably even have most of the
answers. There are several good plans on paper. We lack leadership. Again, we
need "Action this day."

                       KEEP OUR FAMILIES STRONG AND WORKING

The family is the fundamental unit of society. We have to recognize the
changes that have occurred in the American family if we are to deal
effectively with many of the problems that confront us. We can't just bury our
heads in the sand, call ourselves "pro-family," and then pretend that women
and families have the same needs they did twenty or thirty years ago. More
women are in the workforce today than ever before. Many of these women are
mothers. Over half these mothers return to the workplace before their child's
first birthday.

One of the keys to preservation of the family unit is job security. If we
strengthen our economy, we lessen the pressures of unemployment and low
incomes that so often tear families apart. Another key is changing our welfare
structure to encourage families to stay together.

When families are torn apart, we must insist that both parents continue to
meet their responsibilities to the children. Many children are on public
assistance because a parent has refused to pay child support. Congress should
pass legislation to make it a felony to cross state lines for the purpose of
evading court-ordered child support. We should change the tax code to require
parents to report their child-support obligations on their tax-withholding
forms. We should also keep a national database on deadbeat parents so they can
be tracked and made to pay what they owe to their children.

                           A LADDER EVERYONE CAN CLIMB

The whole world thinks of us as the land of opportunity, and we are. However,
millions of people are cut off from the blessings this land can provide.

These rungsbetter education, revival of our cities, crime control, improved
health care, and support for familiescan be put firmly in place so that even
the most disadvantaged of our people can climb to heights that they can only
dream about today. We want to encourage their dreams, but dreams alone are not
enough.

No one can ever tell me that the ladders don't matter. No one can tell me we
have to give up on generations of our young.

If we have to build those ladders with our own hands, the ladders must be
built and put in place.

Newsgroups: alt.politics.perot,alt.politics.elections,talk.politics.misc
Path: nntp-server.caltech.edu!elroy.jpl.nasa.gov!ames!think.com!wupost!csus.edu!netcom.com!mpye
From: [email-masked] (Michael Pye)
Subject: Perot's Plan (4/4)
Message-ID: <[email-masked]>
Date: Tue, 29 Sep 92 15:11:27 GMT
Organization: Netcom - Online Communication Services  (408 241-9760 guest) 
Lines: 650
Xref: nntp-server.caltech.edu alt.politics.perot:2955 alt.politics.elections:14641 talk.politics.misc:91348

                      AN AMERICA THAT HEALS (chapter six)

The two most difficult divisions we face as a people are over abortion and
race. These divisions are so deep and so ingrained that they require more than
a paragraph in this book or more than a soundbite on the evening news. I don't
expect to change any minds or win any hearts; I do ask that you read and
reflect.

                       A NATIONAL COMPROMISE ON ABORTION

My personal position on abortion is well-known, but I will restate it just to
make sure there's no confusion:

* I support a woman's right to have an abortion. It is the woman's choice.

* I support encouragement of adoption as an alternative to abortion.

* I support federal funding of reproductive counseling and education that can
help prevent unwanted pregnancies so that fewer women will have to face this
difficult decision.

* I support federal funding of abortions for poor women. Since these women
have already made the decision, for public health reasons we should ensure
that the procedure is done safely.

I believe it is time for Congress to codify these positions into law.

We're thinking, reasoning human beings. Each human life is a precious gift. We
should not create a human life unless we're willing to take responsibility for
it. It is irresponsible for two people to create a human life they don't want.
For democracy to work, for this nation to be whole, every single one of us has
to take responsibility for his or her actions.

This is the deepest moral question of our times precisely because it is about
human life. It is time for moral leadership to heal the rift, to set a new
standard of personal responsibility, and to turn both sides toward the
enormous task of protecting and nurturing our children.

                         A NATIONAL COMMITMENT ON RACE

"A house divided against itself cannot stand." Many people know Abraham
Lincoln said that just before the Civil War. Fewer people recall that he was
quoting scripture. What a timeless message and simple truth. 

We are divided by racial strife. We're a divided team in worldwide competition
against united teams.

We must reunite. I break this down into three approaches. First, we ought to
love one another. That takes care of most of us. Second, for those who can't
quite lift themselves up to that level, we have to get along with one another
so we can team up and win. Third, for the hard-core haters, we're stuck with
one another. Nobody is going anywhere. We're here, side by side. You might as
well move up to category two so we can win, not lose, as a nation.

Our two political parties try to divide our country to win elections. The
Democrats go after the black and brown vote. Republicans go after the white
vote. Then each professes to be distraught and uncomprehending when we don't
unite after the election. They try to win by playing to fear and suspicion.
Then they try to govern by being gentler and kinder.

The melting pot is our strength, not our weakness. Our culture is dynamic
because it is varied. Our nation became the envy of the world because it is a
unique tapestry woven of many strands drawn from every part of the globe.

I am not closing my eyes to the real world. I realize that some groups have
advantages and that others have disadvantages, but we don't pull anyone up by
pulling somebody else down. We're all in the same boat, and we will sink or
sail together.

The law must be color-blind. Justice must be colorblind.

Where there are disadvantages, we must put our brains and our resources into
helping people overcome them. In Chapter Five, I said we must put a ladder
down into the worst areas of our inner cities. We must lend a hand in making
sure children are able to reach the first rung on that ladder. This is the
kind of affirmative action that works. We don't need to promote less qualified
people over more qualified people. What we need is more qualified people. If
we're to compete effectively, we need millions of more qualified people.

Unless we repair our economy, those who are down can expect to stay down. We
need to repair our job creating engine. That's where we need to direct our
energies. The NAACP should make it a goal to make black small business owners
heroes to their neighbors. These are the ladder builders for the next
generation.

This is not the problem of one community. It is a problem for our country, and
we can turn it into an opportunity for our country. Our commitment must be to
become one team again. On a team every member contributes. Only a team intent
on losing tells some of its members to sit on the sidelines. We need to bring
everyone off the bench and on to the field. Whatever it takes, we should do
it. In the long run it's the only way we are all going to win.

                            A NATION WORKING TOGETHER

If you're pro-life, think over my position, then ask a friend who is
pro-choice to read it and think it over. Then discuss it together. Can't we do
more to solve this problem by working together than by fighting one another?
What more could we do? You two talk it over. Start with where you agree. We
already know where you disagree.

If you're white, read my position here and in Chapter Five. Show it to friends
who are black or Hispanic or Asian, and ask them to think it over. Is it
enough? What more can we do? Argue over it. This is the kind of open, positive
debate we've avoided for too long. We shouldn't be embarrassed to talk about
race. We've tried to sweep these problems under the rug for so long the floor
has risen a couple of inches. It's time to talk to one another.

We cannot expect our political leaders to lead where the people will not
follow. However, it seems to me that the people are ready and willing to put
these divisions behind us. Since these issues are also enmeshed in government
policy, we should demand that our candidates for public offices undertake the
moral responsibility of helping us to heal.

                       AN AMERICA THAT LEADS (chapter seven)

What does America stand for? Only a few years ago we were the exemplar of
nations. America set the pace for the world in inventiveness, in creating
jobs, in raising living standards. Abroad, we shaped the trading and monetary
systems as master of a smooth-running economy, as custodians of a strong
currency and as financiers of the world. Our economic might underwrote peace
and prosperity. It provided the military strength to repel Soviet threats to
democracy. It provided for the resurrection of the great nations in Europe and
the Pacific. It became the global engine of reform, of growth, of hope for the
future.

The world once looked to us with wonder. Now they look at us and wonder.
Foreign leaders are alarmed by our runaway debt, our social problems, our
failing educational system. They express chagrin, and sometimes even contempt,
at our political leadership.

Only an economically strong United States can preserve world peace, promote
democracy, encourage expanding markets, and serve as a beacon of promise for
the potential of mankind.

                                 START AT HOME

Our highest foreign-policy priority is to get our house in order and make
America work again. This is not isolationism or nationalism. It is common
sense. The world needs a strong, purposeful United States. We cannot lead
others or be a reliable partner if we are weak and divided at home. Getting
the American house in order is the point of departure for a new American
foreign policy.

Second, we must realize that far too many of our foreign policy structures are
based on doctrines of the 1940s. They are old and out of date. We need to
create new structures for the 1990s and the new century. That means changing a
lot of things. We must restructure the White House staff and the organization
of the state and defense departments. We must update our security arrangements
and rethink overseas deployments. We must reform the alphabet soup of
international agencies we have put in place over the past fifty years to deal
with the world that used to be from the UN to NATO, GATT, IMF, and the World
Bank.

We have much to change to provide for a foreign policy in keeping with the
needs of the world that is, rather than the world that was. Too much taxpayer
money and administrative effort is being needlessly consumed by outdated
policies and outdated structures.

                               EMPHASIZE TRADE

For far too long, Washington has maintained an artificial distinction between
domestic and international policy. The "high" politics of defense and
diplomacy has received too much attention at the expense of the "low" politics
of the economy and jobs. To succeed in the world of today, we must view
domestic and foreign policy in terms of a single, interwoven net of national
interests.

America's position in the world today depends as much on the productivity of
our labor and the performance of our schools as it does on the number of
missiles in our arsenal. At the same time we cannot achieve our goals of
rebuilding our country without having trade and financial cooperation with
other nations.

Trade means jobs. Fair and equitable trade means more jobs. Jobs mean a higher
standard of living, a healthier economy and a lower deficit. That produces a
stronger America that can buy more from our allies. An American policy of fair
and equitable trade is good for all nations.

We must be frank about our trade position. It cannot be improved by making
excuses or berating others who out compete us.

Too often, our political and business leaders seem to respond only by
complaining. They whine and bluster. That's the response of losers.

It's time that Americans responded like winners. We should replace the
political appointees who are sent from Washington to fail to negotiate
advantageous agreements. We need to put in their place experienced, hard-nosed
negotiators from outside politics who know how to achieve good deals.

We need to learn from the Japanese and the Europeans. They are not our
enemies. They are our allies. However, they are tough competitors. We just
have to get our act together so that we can out compete them fair and square.
Also, we have to negotiate harder. The Europeans and the Japanese out
negotiate us at every turn in trade talks.

                            GET MOVING IN THE PACIFIC

To the Japanese, I would say this: we will get our house in order as you and
all our allies have suggested. In turn, we demand that you share more fully in
keeping the world safe for future generations.

You must shoulder more of the burden of stationing U.S. troops and ships in
your region. You must cooperate with us on the environment, on rebuilding the
former Soviet Union, in multinational peacekeeping efforts, in defusing
nuclear risks, in sharing in the burden of handling refugees, and in creating
conditions for global economic growth, including in the United States. We can
no longer accept the excuse that the Japanese are unique or different. We are
all citizens of the world.

Elsewhere in the Pacific, we must pursue markets aggressively. The USA is as
economically integrated into the Pacific as Germany is in the European
Community. Japan is our second largest trading partner. Beyond Japan are
China, Korea, and other Asian countries. All told, we trade 30 percent more
across the Pacific than we do across the Atlantic. The Asian/ Pacific region
is the fastest growing sector of the world economy. If we are smart, we can
sell a lot of American products there. We must place a high emphasis on
penetrating the vast markets of the Pacific basin.

China deserves special attention as a remaining bastion of communism. The
present administration has spent its time coddling a geriatric central
government when the real action is taking place in the provinces. Beijing
still may be playing the old communist song, but the provinces are dancing to
capitalist tunes. While we talk to a deaf leadership, free markets are
developing all across the country. They have solid examples close at hand.
Hong Kong is already the tenth largest economy in the world. Taiwan has the
largest foreign exchange reserves in the world. The 63 million people of
Guangdong Province are becoming voracious consumers. We must construct a
diplomacy that deals with the complexity of this vast land and advances an
agenda of democracy. Someone once said that free markets produce free minds.
Through a concerted policy of engagement we can help the Chinese people attain
their goals of political liberty and democratic institutions. Once open to
free trade, a door can't be shut to free thought.

We must also begin thinking of new ways to share the burden of maintaining
peace in the Pacific. At present, the security of the region is maintained by
five security agreements that we maintain under bilateral agreements. There is
no collective security device like NATO in the Pacific.

It will take perhaps a generation, if not more, to devise collective security
measures that encompass cultures as different as Japan and China, India and
Indonesia. We must begin discussions now. Unlike the current administration,
the next one must think more progressively on this front.

                           BUILD ON SUCCESS IN EUROPE

We must nurture our successes across the Atlantic. NATO is the most successful
military alliance in history. Yet we must not hang on to NATO just for the
sake of preserving a venerable institution. It is time to develop a successor
mechanism.

There are risks in Europe. All is not milk and honey there. That said,
Europeans are better equipped than ever to manage those risks.

We can no longer make the argument that U.S. forces are needed in Europe to
provide front-line protection of the United States.

We cannot justify using U.S. taxpayers' money to station troops on German soil
to protect Western Europe from potential intra-European strife. The
Europeansthanks in part to our presence for the past 45 yearshave the
ability to do this themselves. Everyone is aware of the age-old tensions that
occasionally raise their ugly heads in Europe. Keeping U.S. troops on European
soil to ward off those historical impulses in the age of democracy is akin to
a parent leaving a light on in a child's room at night to ward off ghosts. It
is hard to justify "night light" troops at U.S. taxpayer expense.

We will not withdraw completely from Europe. We will stand ready to come to
the aid of our European allies. However, we want them to take the lead and
bear the lion's share of the burden in providing for their own security.

The former Soviet Union presents an unusual burden and a special
responsibility for the United States and the rest of the world. the breakup of
the Soviet empire is fraught with crises. Nationalism and ethnic strife are
inevitable consequences of the unwinding of artificial geographic and cultural
arrangements imposed by Stalin and his successors. There is potential for
nuclear mischief. There is a real danger that reform will fail.

My policy toward the Commonwealth of Independent States would be to work both
unilaterally and closely with the European, the Japanese, and collective
agencies like the U.N. to:

1. Put nuclear warheads out of commission wherever they are. Our negotiators
continue to concentrate on missile delivery systems, a vestige of Cold War
arms control. The warheads are the primary threat. We cannot rest until all
warheads in the four nuclear CIS states are accounted for and under control;

2. Contain any imperialistic tendencies harbored by any of the former Soviet
territories;

3. Send appropriate aid, technology, support personnel, and other items needed
to build a bulwark for liberty. Make sure the channels are established to
administer our help selectively, instead of allowing it to be wasted by state
enterprises or poorly conceived projects.

                            WORK WITH LATIN AMERICA

The failure of Soviet communism has put an end to Leninist imitators in the
American hemisphere. Castro is the sole holdout in this part of the world. We
must continue to isolate Castro. Elsewhere in Latin America we must continue
to encourage the transition to market capitalism. We are profiting from the
democratization and privatization of Latin economies. This is largely because
we are the leading producer of goods used to build nations, like telephone
switches, trucks and aircraft.

American exports to South America grew 20 percent last year. Jobs are being
created to fill those orders. I want to make sure that this expansion of
American jobs continues. I want to make sure it is not a temporary thing. This
is why I want to examine the Mexican trade agreement closely.

This trade agreement presents an exciting opportunity for both our nations. I
applaud the tremendous progress the Mexican government has made under
President Salinas in revitalizing a tired, socialized economy. In five years
Mexico has privatized 75 percent of its state-run enterprises. Always a
deservedly proud nation, Mexico has earned the admiration of the world.

Challenges remain. In Mexico, workers are paid between one and two dollars an
hour. Environmental and pollution regulations are laxly enforced. Health care
for workers is rarely provided. The challenge is to create a trade agreement
that helps Mexico to continue to pull itself up but that does not pull us
down. I do not want a trade agreement that trades away jobs. I want a trade
agreement that creates good paying permanent jobs on both sides of the border.

I fully understand why our own Hispanic community so strongly supports trade
ties with Mexico. This community is a marvelous resource with its ability to
act as a bridge between two dynamic cultures. We should commit to putting that
bridge in place and make sure the road over it runs both ways.

                  ACHIEVE PEACE IN AFRICA AND THE MIDDLE EAST

On the other side of the world, Africa must not be neglected. Once treated as
pawns by the two superpowers, the undeveloped countries of the sub-Sahara
region now have the best opportunity in the post-colonial era to establish
independent democratic institutions and free markets. Already the most
prosperous nation on the continent, South Africa deserves American support as
it makes a successful transition to true democracy and sheds the shameful
vestiges of apartheid. Together with the Europeans and Asians, we must work
hard to see that democratization succeeds in South Africa and that lasting
economic progress finally takes root in the sub-Sahara region of the
continent.

For the past fifty years, United States policy in the Middle East has been
geared to preventing the area from falling under control of any power that
might threaten our vital interests. During the Cold War, the Soviet Union and
local governments acting as its agent were of particular concern to us. Today,
we must remain vigilant against actions of other powers whose interests in the
region are opposed to ours.

Since its founding as a nation, Israel has been our staunchest ally in the
region. Our support for an Israel secure from external threat goes beyond the
noble sentiment of friendship. Israel is of strategic importance to the United
States. During the Cold War, she was a bulwark against Soviet aggression in
the Middle East. In the aftermath of the Cold War, Israel is a beacon of
democracy in a region populated largely by dictatorships and monarchies. We
must remain committed to the continued defense and support of Israel
militarily, diplomatically, and financially in order to secure the prospect
for democracy in the region.

Israel's long-term security and overall stability in the Middle East depends
on the successful resolution of an Arab-Israeli peace agreement from which all
parties benefit. We must continue to work tirelessly with all governments of
the region to reach a lasting peace.

                             DON'T ENCOURAGE TYRANTS

While we now have the luxury of defining our foreign policy needs largely in
economic terms, we must remember that there are still military threats to our
nation's security. The world of the 1990s is unfortunately populated by
brilliant, psychotic despots who are not against cannibalizing civilization to
advance their own agendas. The list is well known -- Saddam in Iraq, Qaddafi
in Libya, Assad in Syria, Kim in North Korea, and Castro in Cuba. This list
may be tragically expanded by renegade forces in the former Soviet territories
if chaos ensues.

We should follow consistent policies toward rogue governments. I would treat
outlaws for what they are. Where America's vital interests are not impacted, I
expect others to take the lead in containing these renegades, with our
support. The UN and other collective agencies must be involved. We should
reserve the right, in consultation with Congress, to take into our own
muscular hands any rogue government that threatens vital American interests.

The most effective way to deal with criminal states is not to encourage them
in the first place. If we don't like brutal third world dictators, we
shouldn't help create another one. We supported General Noriega. We sent him
weapons, millions of dollars, and flattering letters. We inflated him until
his ego ballooned out of control. It now turns out that we were doing the same
thing with Saddam Hussein. These cases didn't just cost us money. They cost us
something far more precious: the lives of American soldiers.

We could have avoided all this if we had followed Winston Churchill's simple
advice: "Never cozy up with tyrants. They'll always turn on you."

                                DEMAND A NEW VISION

The world is at a crucial turning point in history. We must seize the moment
and turn frightful risks into great opportunities. Just as we must embrace
bold programs to repair our economy, our cities and our schools, we must move
bravely on the world stage. The American people should demand more of their
presidential candidates than debates on the fine points of diplomacy. They
should insist that each candidate provide a vision of a new architecture for a
new world. They should demand blueprints for action.

When he was suddenly faced with the opportunity to make the Louisiana
Purchase, Thomas Jefferson didn't take a poll. He acted.

When he was confronted by the devastation of Western Europe after the war,
Harry Truman didn't hesitate. He acted.

An American President is supposed to be able to see past the moment. He should
be able to see history in the making. He should be capable for shaping history
in America's interest.

That is the standard by which our Presidents should be measured.

                                   AFTERWARD

The Perot phenomenon that swept the country through the spring and summer of
1992 had little to do with me. It was a spontaneous grassroots outpouring that
has transformed a deep-seated concern with our political system into a
positive citizen movement for reform.

Others campaigning for office will try to capitalize on your efforts. A person
doesn't become a politician without learning how to dance the two-step. I hope
many of them will do more than try to play to the crowd. I hope they will
listen to the roar of the crowd. Those who don't, or who try to get by with
the two-step, should be defeated.

I'm talking about all of our elected officials who have allowed this great
system to be mired in the mud of special interests, who have padded themselves
with perks at our expense, and who have rigged the election system to avoid
answering to the people.

We don't need term limits as long as we have the ballot. If in this upcoming
election we demand that candidates face up to the real issues that confront
us, you can be sure that after the election members of the House and Senate
will continue to listen to this country's owners. The reforms we so
desperately need will be enacted quickly. That's the glory of our
Constitution. Our elected officials listen, or they become former officials.
The grassroots movement that put me on the ballot in state after state has
sent a message too strong to ignore. Volunteers did it, and they did it
without the support of any established party, any political machine, or any
special interest group. That amazing achievement has already jolted the
political establishment. The little group of Washington insiders, lobbyists,
and professional politicians who thought of the national government as their
own private playground are waking up to the fact that this country doesn't
belong to them.

The Appendix has a list of topics important to this country. All the
candidates need to know that you care about these issues and that you will
vote according to their positions on them. Ask the candidates what they will
do about the items on the list. Remember what they say. Hold them accountable
once they're elected.

There are five principles which animated this movement from the beginning and
which will carry it through Election Day and beyond. These principles are the
themes that underlie this book. I hope they will someday underlie the
governing of this country.

One. The people are the owners of this country. Everyone in government, from
the President of the United States to the newest employee in a small town,
works for the people.

Two. All of us must take personal responsibility for our actions and for the
actions of our government. Citizenship in the United States is a privilege
that can only be safeguarded by its exercise.

Three. We are a single team. The task ahead is enormous. We are all needed in
the rebuilding of America.

Four. We can't keep living beyond our means. The size of government must be
permanently reduced. The deficit must be eliminated. We can handle shared
sacrifice. We cannot survive an irresponsible government.

Five. Our greatest challenge is economic competition. Our governmental
policies should be redirected to stimulate growth, to encourage the private
sector, to create jobs, and to open opportunities for all Americans.

                                   *   *   *

Alexis de Tocqueville crossed the Atlantic in 1831 to observe the growing
power called the United States. He summed up his two-volume study by saying,
"America is great because its people are good." Nothing has changed. I saw
this in the last several months by working with thousands of people from all
walks of life. America's strength is its people. You are deeply patriotic,
creative, and dedicated. You are filled with love for your country. You are
brimming with ideas. You are determined to leave a better country to your
children. You are at one with the spirit of our forefathers.

When the Founders signed the Declaration of Independence, they pledged their
lives, their fortunes, and their sacred honor. They were deadly serious in
making that pledge. When they picked up the quill pen to place their names on
that document, they did so with the certain knowledge that it could cost them
their lives.

One signer, John Hart, was driven from the bedside of his dying wife by an
English patrol sent to capture him. His thirteen children scattered and fled
for their lives. He lived in the fields and the forests and in caves, eluding
the enemy, until the end of the war. When he returned home, his wife was dead,
his house was burnt to the ground, his farm was destroyed, and his children
were nowhere to be found. A few weeks later he died from exhaustion and a
broken heart.

Compared to that, what are the minor sacrifices we are called upon to make to
pull our nation out of bankruptcy, to restore our spirit, and to put America
on a new course for our children's future?

Our political leaders have been afraid to ask those sacrifices of the American
people. This is one more case where the people see more clearly than the
leaders do. The people have rightly resisted minor adjustments, knowing that
the hands writing the laws were being guided by special interests seeking
preference for one group over another. They are crying out for a plan like the
one laid out in this book that distributes the burden carefully on all but the
weakest shoulders so that together we can pull this nation out of the mire. We
can no longer expect our political leaders to have the strength or the courage
to do it. Only the people can give them the power.

Only the people can keep faith with our forefathers. We owe everything we have
to them. Today in India or Ecuador or Togo there are people who are as bright,
as capable, and as ambitious as any of us. They will never have the chance to
do something great with their marvelous talents. No matter how smart or able
they are, they will never have the opportunity because they weren't born in
the country our forefathers founded.

Only the people can keep faith with those who have already sacrificed so much
for our country. I didn't make the navy my career. Many of my classmates at
the Naval Academy did. Some of them died defending our country. Some of them
spent years of their lives in prison camps, never bending an inch in devotion
to our country. I went into business. Most of you went to school, raised a
family, entered a profession, or got a good-paying job. They could have gone
that same route, but they didn't. They served their country.

Only the people can keep faith with our fathers and mothers. Mario Cuomo's
father worked his way to these shores and worked at menial jobs until he was
able to bring over his wife and children. Today his son is the governor of New
York. Other more established families lost everything in the Great Depression.
Some mothers and fathers who were people of distinction and achievement went
to work as fieldhands to keep their children fed and clothed. Some scraped
enough money together so at least one child could go to college. The
sacrifices made by that generation compose one of the brightest chapters of
nobility in the annals of human history.

Only the people can keep faith with our children. In the 1960s, our standard
of living doubled every generation and a half. Parents who worked on a farm
could send a child to college and live to see their grandchildren build
successful businesses. At our present low growth rate, it will take twelve
generations for our standard of living to double. The children of a child born
this year will be dead before our standard of living doubles again.

We have broken the faith we owe to our children. The politicians can't restore
it. Only the people can.

Only the people, the owners of this country, can make America strong again.

The Founders believed in the people. They knew in their hearts and souls that
each generation would have to work to pass on a greater nation to the next
generation.

Only the people can remake our country.

Time is short. History is merciless. The whole world waits for your decision.

                                  APPENDIX

Check List for All Federal Candidates

We would like to have your specific plans to:

_____ Eliminate the deficit

_____ Keep the budget balanced through binding legislation

_____ Pay off the national debt

_____ Rebuild the job base and put our people back to work

_____ Develop an intelligent, supportive relationship between government and business

_____ Develop strategic plans industry by industry to strengthen and rebuild our companies

_____ Target the industries of the future and develop specific plans to be the
      world leader in those industries

_____ Stimulate the growth of small businesses

_____ Maintain and build our manufacturing base

_____ Make "Made in the USA" the world's standard of excellence

_____ Rebuild our cities

_____ Make our public schools the finest in the world

_____ Get rid of illegal drugs

_____ Dramatically reduce crime and violence throughout our country

_____ Provide affordable health care

_____ Get rid of waste, fraud, and abuse in the federal government

_____ Develop a new tax system that is fair, paperless for most Americans, and raises 
      the money necessary to pay our country's bills

_____ Get rid of foreign lobbyists and foreign political contributions

_____ Develop fair free-trade agreements

_____ Pass laws prohibiting cashing in on prior government service

_____ Develop an intelligent energy policy

_____ Implement the line item veto for the President

_____ Pass laws to stop Congress from exempting itself from laws it imposes on the rest 
      of the country

_____ Bring the congressional retirement plan in line with private-sector plans

_____ Pass laws requiring the return of all excess campaign funds to the U.S. Treasury

_____ Pass laws to reduce the time for federal elections, reduce the cost of federal 
      campaigns, and create equal opportunity for all new candidates by providing equal 
      television time for all candidates

_____ Replace the electoral college with the popular vote Pass laws eliminating all 
      possibilities for special interests to give large sums of money to candidates

_____ Pass a law to hold elections on Saturday and Sunday, instead of Tuesday

_____ Pass a law forbidding release of election information before the polls in Hawaii
      close

_____ Slash staffs in the executive and legislative branches Get rid of unnecessary
      perks throughout the federal government.