Polk County Enterprise (Livingston, Tex.), Vol. 99, No. 3, Ed. 1 Thursday, January 8, 1981 Page: 4 of 40
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Ronald Reagan’s transition
candidly concede that one
ition is considering
r also warn that this is no tactical cry of
f$ key economic advisers have
it credit crunch” since the Civil
uJtionis correct, and we have no
> otherwise, the crisis would coin-
sically, the Reagan administration will face
twin, interrelated economic crises: federal spen-
ding that is now beyond control and a stagnant
economy no longer able to pay for government ex-
travagance or to sustain the traditional U.S. stan-
; in the face of double-digit inflation
git interest rates.
_____ the root cause of our economic malaise
i that federal spending is increasing twice as fast
4 the growth of the economy. The WaU Street
Journal re ports that in fiscal 1980 non-defense
federal spending grew at 18 percent while the
economy could produce only a 9 percent increase
in the gross national product. Since March,
transfer payments, stimulated by the recession,
i leaped at an annual rate of 29 percent, and
ng the third quarter this year, federal spen*
history. u • ..v1
Federal spending, budgeted at $633 billion by
Congress last September, has already jumped to
aaM Lillie flmicna hannmo
$600 billion. These benumbing figures become
more understandable when translated into terms
of total national output: 50 years ago, the govem-
oi town national output: w yeara wre
ment spent only 5.3 percent of the national output.
Today the government is spending 224 percent of
total national output.
IIUOUIVOO j * — » ----
unfunded spending becomes an even greater
burden because it fuels inflation, the cruelest tax
of all. \T ,; *
The current 21 percent interest rate, caused
partly by the Federal Reserve Board’s squeeze on
.. ^____business ______ . __,
consumer buying. But it is a necessary
unavoidable price to be paid for inflation and
In short, the U.S. economy is hardly moving
‘ "■* ‘ * “ too much of
___________________omy is hard
because the government is taking to
what its citizens can produce, leaving insufficient
capital reserves for modernizing plants and in-
The supply-side economists, who dominate the
president-elect’s economic policy, propose to cut
taxes by 30 percent in three years, freeze govern-
ment spending and thereby stimulate the
economy to the point that, through lower taxes, In-
centives for working and producing are more at-
tractive than relying on transfer payments. In
short, tile supply-siders are convinced the budget
problem, which is long-range and resistant to
cure, will be controlled only after the economy
grows faster than the government.
There is, of course, no guarantee that the
Reagan supply-side solution will work, but at least
it offers hope - an alternative to the failed Keyne-
sian reliance cm government instead of private
enterprise. And because the new administration
will probably have a very short time in which to
put through so bold an economic reversal, the
credit brunch that’s been predicted could be
disguised blessing in stimulating early congres-
The summit meetings at Camp David that pro-
duced the fragile accord between Egypt and
Israel may |
been the most significant
achievement of the Carter ad-
mn Israel and
| WW -
his defeat in the Novemberetectic
Wiv /v -
-- * T"
Carter already forgotten man
...... ..... _....... ^ ______serais
WASHINGTON-Jmuiiy Carter will
be president until January 20, but lie’s
already being treated uke a lias-been.
Overnight} lie lias become Uie forgotten
man of Washington,
Intimates say he resents the bruslt-off
Washington is giving him. They
describe him as a deeply private per-
son, a sensitive, almost shy man who
will try to hide his feelings from the
world. But lua friends say he’s now bit-
ter and brooding.
This lonely, intense president fouglit
hard to reach Uie top. He drove himself
into one bruising battle after another,
suffering inwardly from Uie political
shellfire. His final rebuff on November
4 was a crushing blow.
TIiobc wIki know Carter say he never
felt accepted by the Washinglon power
structure. He sensed a hostility toward
him lliat, in fact, he helped to foster by
playing the role of the outsider.
Jimmy Carter now Is being consigned
prematurely to the liistory books.
Although the Iranians did their share
to push Carter out of office, il appears
ns if lliov have badly miscalculated Hie
American rcactinn to JJicir Iwstage
’ demands. President Carter liad focused
such an intense spotlight on the
hostages tliat tlw Iranians apparently
believed lie would lave to meet tlieir
$24 billion ransom demand.
Ttie Iranians mast also liave thought,
lliat tlie American people would pay
any price to get the hostages back.
Otherwise, tlie Iranians wouldn’t have
published tlieir ransom demand. The
publication makes it difficult for them
to back down without losing face.
So the American people had belter
face tlie possibility that wc may be
unable to negotiate the hostages
relcr.se. This means the problem pro-
bably will be dumped in Ronald
A year ago tlie U. S. Embassy in
Islamabad was atlacked by a howling
Pakistani mob. Two American Marines
died in tlie violence.
risked tlieir lives to protect several
American women and children. One
was called Klian, tlie oilier Patel.
Tlie women and children were trap-
ped inside tlie American Diplomatic
Club wlien tlie mob btirst into the em-
bassy compound. Klian set up a bar-
ricade and tried to liold off his scream-
big countrymen. Meanwhile, Patel
tried to guide a dozen women out of
But tlie mob caught up with them.
The women could only lie helplessly on
the ground while tlie atlachers roughed
them up, spat upon them and beat
them. The ordeal lasted two hours.
All the while, Patel tried to sliamc Uie
mob into stopping the brutality. He
finally persuaded them to relent and his
intervention probably saved the
Afterward, he had the courage to sign
a statement blaming Uie Pakistani
Americans lliat they would like to come
Z the United States to start a new life.
Congressman Lester Wolff, D-N.Y.,
heard about their tooism and
trodueed a bill to admit the two heroes
to this country. But Congress adjourned
without acting on the biB.
FOX IK THE CHICKEN COOP -
Ronald Reagan has tapped WaU Street
broker Donald Regan to serve as his
Treasury Secretary. Regan heads the
New York brokerage firm of Merrill,
Lynch, Pierce, Fenner and Smith.
The announcement that Ronald reagan will
preserve the Camp David framework for future
Middle East negotiations is encouraging, even
though an impasse has developed over the Issue of
Palestine sw-determination on the West Bank
And It is well that the president-elect has spoken
out now to discourage speculation that the Reagan
White House would change course.
The American intervention has
ed in the violence. » sunt-mcm ------
But not all the Pakistanis joined Uie police for tlie ugly incident. Of course,
mob Tlie news accounts never men- this hasn’t made him popular with the
tioned an act of heroism in the midst of police, who can be ruthless. So both
tlie savagerv. Two brave! Pakistanis Patel and Khan told the grateful
© Coplay Hew* 8orvle*
Fi & 4
U fSh ,
I if ■ ■ * *_■
past nine years, »*~v.. —
efforts to counseling wedlthy clients on
how they can avoid paying taxes.
Regan’s firm has also championed the
so-called “commodity tax straddle,”
where clients are encouraged to
speculate in the commodity futures
market to avoid paying taxes on ready
A House committee investigated the
practice and found that futures
speculators helped contribute to higher
prices and inflatioii-especially in the
silver, gold, coffee and' sugar markets.
Three years ago, the Internal Revenue
Service outlawed the commodity tax
straddle. In fact IRS agents are now
auditing thousands of clients that
Regan and his firm advised to use this
tax avoidance scheme.
But the audits and investigaUons may
not get far, for if Regan is confirmed as
treasury secretary, he’ll be in charge of
it >! i
INAUGURAL NOTES -
According to Ed Meese, President-
elect Ronald Reagan’s top adiser,
Reagan means business when he says
he’ll be presiding over a Cabinet
government. Meese confided to us that
Reagan, within 48 hours of his
swearing-in as the nation’s 40th presi-
dent, will preside over two meetings of
his new Cabinet. Meese says the get-
togethers will be ”seml-Ceremonlal.”
Fans of Reagan who live abroad
won't have to feel left out when the In-
auguration rolls around. There will be a
special inaugural ball held in Parte for
Americans living abroad. The
festivities will also be broadcast by
satellite to more than 60 cities across
the United States that have contracted
to make the Paris ball part of their own
When contemplating arms control
Must consider all angles
By SENATOR JOHN TOWER
Real, meaningful arms control and
reduction is a dream of all who love
peace. But to achieve these ends, we
must look realistically at possible,
courses of action. >
Experience has proven that
unilateral restraint on our part - such as
the cancellation of the B-l bomber -
does not motivate the Soviet Union to
take reciprocal action. Asv one top
Carter Administration official said, if
we arm, the Soviet Union arms. If we
fail to arm the Soviets still arm. In fact,
over the past decade, the Soviet Union
has outspent us by $240 billion on
defense. That means the Soviets
already are engaged in an arms race.
but it’s a one-sided race.
The SALT II treaty actually was
neither arms control nor arms reduc-
tion, because it would have allowed the
Soviets to beef up their strategic forces
while following the letter of the treaty.
The Soviets view arms limitations
talks as hart bargaining sessions. They
will press for the deal that is most ad-
vantageous to their interests. During
the last stages of the SALT II talks, at
least, we were simply out-negoUated.
How do we get back on the road
toward real arms control? We will
never be successful in negotiating with
the Soviets unless they believe we have
the national will to have a truly strong
national defense system. If we will cut
® Copley News Service
back our own defense programs
without demanding reciprocation, we
have little left to use as bargaining
But our capacity for increasing our
defense system actually is much
greater than the Soviet Union’s. That
nation does not have the slack in its in-
dustrial capacity to increase its arms
production much above its current
level. The United States, on the other
hand, could sustain a large increase if it
possessed the national will. In short, if
we were inclined to enter an all-out
arms race, we would win. And the
Soviets know that. That knowledge is
our best chance at achieving real arms
When the Soviets become convinced
that we have the national resolve to
build a national defense system that is
at least truly equal to theirs, then they
will realize it is in their best interests to
enter into serious and meaningful
Survey datA, my mall, and my own
conversations with people indicate that
the American people have the
necessary national will to rebuild our
sadly neglected defenses. I expect the
new Administration and the new Con-
gress to work together to meet our most
We must begin immediately. Only a
truly strong defense will deter the
Soviet Union from global aggression.
t U.S. defense will
And only a strong U.S.
make the Soviets interested in arms
When we accomplish this, then we
can begin the business Of hammering
swords into plowshares.
ALVIN HOLLEY, PUBLISHER
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The letters will also be subject
to editing for libelous or
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To submit letters, matt them to
“Letters to the Editor,!’ Polk
County Enterprise, P.O. Box
1276, Livingston, Texas 77381.
Entered as Second-Class Matter at the Post Office at Livingston,
Texas 77351 under the Act of Congress of March 3, 1897.
Barbara White, Editor
Grace Holman, Family Editor
Beatrice Hall, Special Correspondent
Van Thomas, Sports Editor.
Greg Peak, Area News Editor
Brenda Davis, Staff Writer .
Susann Walker, Darkroom Tech.
Mike Sims, Production Manager
Pressroom Personnel- Adrian Dunn, David Holley,
Paul Holley, Beamon Goodwin
Composition Personnel-Shirley Starling, Patty Brown,
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White, Barbara. Polk County Enterprise (Livingston, Tex.), Vol. 99, No. 3, Ed. 1 Thursday, January 8, 1981, newspaper, January 8, 1981; Livingston, Texas. (texashistory.unt.edu/ark:/67531/metapth781234/m1/4/?q=trooper%20tom%20selman: accessed July 22, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting Livingston Municipal Library.