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Transcript of Ripon Forum Summer 2001
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Why do we work so hard?
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www.pfizer.com
I I
PresUknt
Hon. Bill Frenzel
Exccutive Dirtttor
Lori Ha~u
Cornrr.uUeation DiRaor. Editor
Ashldgh Roberu
DnignlArt Dil'Kl;on
Christina F. Valis
Co.~r Photognph
MarioTlima
Producrion
CCI ... ww.c~i·$C'rvices.C()m
" 2001 by The Ripon Society
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Ripon Forum • Sommer 200 I
THE
RIpON FORUM
Contents VOLUME 36 ' NUM BER II • SUMMER 200J
Moving Forward ........................ .. ......... ........................ .... .... ....... 4 A R ipon Editorial
Safeguarding America's Meat ... ..... ...... ......... .................. ...... ........ 6 Dr. Catherine E. Woteki, Ph.D. , R.D.
A Ripon Interview with Jack Quinn A New Partnership .......................................... ... .... .... ...... .. ... ...... . 9 Ashleigh R oberts
A Ripon Interview with]. Dennis Hastert Earning the Majority ............................................ ... .................... 12 Ashleigh Roberts
2001 Rough Rider Dinner ..... .. .............. ......................... ............ . 16
Restoring the Majority: The GOP Challenge in California ...... .. ....................................... 18 Philippe M elin
A Ripon Interview with E. Clay Shaw,Jr. A Different Approach ................................ .... ............................. 22 A shleigh R oberts
New Democrats Move to the Middle ........................................... 25 AI From
Medicare Reform: Still Time To Get it Right .............................. ..... .... .. ............ .. .... 28 D eborah Steelman
'f'k RiJlt'" Forum ( ISN 0035-5526) is published quarterly byThe Ripon Society.
The Ripon Society isa n:sean:h and poJiqorganization. It is hcadquan en:d in \VashinglOn. D.C .• with National Associare members throughout the United Slates. Ripon is iupportcd by chaple r dues, individual contributions, and n:\'cnucs (rom ils publications.
Comments, opinion editorials .... ud Ictw "s 10 the m .... gazinc should be addres~d 10: The Ripon Forum, 501 C .... pitol Court, NE Suite 300. \Vashington. D.C. 20002 or may be tr:lIlsmi ltcd clc~tronicaUy to: [email protected]
]
Moving Forward Following Senator Jeffords' defection, leadership, unity and loyalty will be the keys to GOP success
he cover of our spring issue features a smiling Trent Lon
with his arms outstretched. The headline reads, MA Working Majority, The 50-50 Spli t." In the same issue,
published only weeks ago, the editorial noted a new sense
of maturity and unity within the Republican Party. It said:
"The Republican Parry is growing up. The backbench bomb throwers are gone, replaced by thin but determined
Republican majorities. The l07,h Congress exhibits a quiet maturity, marked with new confidence and a long over
due sense of unity. Members are focusing mOfC on in
dusion and less on the divisions that have derailed Re
publican efforts in the past. ~
~Thc newfound Republican unity is a sign to the
country and the world that the Grand Old Parry is ready
to govern. Republicans have stnlggled long enough with
their message and their differences and it appears as
though the internal shakedown is over.~
uThe message is simple. When Republicans work
together, they can drive public policy. The diversity and
independence of Republicans makes unity a challenge,
but the 107'" Congress has proved it is possible. Adult
leadership in both the executive and legislative branches
will do much [0 res[Ore the public's faith in govcrnment.~
So, while eating edi[Orial crow, RF wonders what hap
pened to the adults.
Today, our hobbled Republican elephant remains deter
mined, but the Democrats control the Senate and do so through
defection. Hoisting his banner of principle, Vermont Senator Jim
Jeffords shocked \·Yashington when he ..;reated a political fitult line
that tumbled his former colleagues intu a minority crevasse.
He said, ~ In order to best represent my state of Yermo nt, my
own conscience and principles I have stood for my whole life, I
will leave the Republican Party and become an Indepcndent.~
H owever, SenatOr Jeffords did not stop at becoming an
Independent. H e joined the Democrat Caucus. thus toppling
the former Republica n majority and deposing Republican
Chairmen. In effect, he became a Democrat.
Jeffords defection abruptly put an end to Republican con
t rol of the Congress. It had been the fir st time RepUbli cans
controlled t he H ouse, Senate and White H ouse since Ike in
the 1950s. It lasted just five months!
The outlook for President Bush's agenda is dramatically
changed.
The Senate leadership and 20 committees. along with
chai rmen, subcommittee chairmen, staff, space and the agenda
of the Senate, all arc changed.
Ripon FONm • Summer 200 I
The Senate Republican leadership has taken it on the chin
for not being inclu sive and accommodating or even picking
up on the possibility of the storm clouds before the lightning.
The White House has been roundly cririciud for being out
of louch, arrogant and striking a defensive and aggressive tone
as opposed to being conciliatory to those not marching to Bush's drum .
As Nebraska Senator Chuck Hagel warned, M What is
debilitating for us is to have a leading moderate say what I
have witnessed is a dosed Parry that has no wlcrnncc for any other point of view. ~
For the record, RF has espoused the "big tent" theory of
Republicanism since inception. We should always be debating
changed his status to Independent, but remained in the Re
publican Confe rence until the next election. He could have
indulged in an act of political heroism by resigning and run
ning as an Independenl.
Republican candidate Jeffords asked his colleagues to en
dorse and campaign for him in Vermont. And surely Republican
candidate Jeffords did not miss the obviolls, that President Bush
would try to implement what candidate Bush promised.
In a Washington Pos t column, veteran political reporter,
David Broder opined, "A loner in temperament, Jeffords took
no one with him. "
Wrong. Jim Jeffords took all of his old Republican col
leagues out and put his new Democrat col leagues in:
On the outs are many good
Ripon Re publicans: T ed
Stevens , Di ck Lugar, J ohn
Warner, Pete Domenici, Arlen
Specte r, Pat Roberts, Orrin
H at ch, Olympia Sno\\le,
Chuck H agel, Susan Collins
and Mitch M cConnell not to
mention a host of other com
mittee and su b -committee
chairmen.
"Finally, party switchers are not new to politics and doubtlessly there will be more public officials who will do so out of principle and conscience, not to mention self-preservation. RF will always stand in admiration for those who put principle first. However, Senator Jeffords' decision was one small step for principle and one giant step for a Democrat majority." On t he ins arc Robert
Byrd, Tom Harkin, Carl Levin,
Paul Sarbanes, Kent Conrad,
Fritz Hollings, M ax Baucus, Pat Leahy, Chris Dodd , Ted
Kennedy, and of course, J im Jeffords.
how ro broaden our Party, in order to be a majority party. The
debate must allow and accept dissent, consider new ideas, build
coalitions, respect each other, and tolerate each other's views.
But, it is not enough to allow differing views. VYe must
respect those who hold them, even as we ask respect for our
selves. Vvc must also consider their views, even as we expect
consideration of our own.
Obviously, Jim Jeffords did not feci the Republican lead
ership afforded him toleration or respect. I-Ie did not feel com
fortabl e in the big tent. He said, ~ ] was not elected to thi s
office to be something I am not. .. l have changed my party
label but I have not changed my beliefs ."
In a practical sense, Senaror Jeffords did much more than
that. Hi s act of conscience involved far more than standing
up for hi s beliefs. It caused a national pautical realignment. When
he tllrned off the lights in his Republican office to light a candle
of conscience, he turned off the majori ty lights in the offices of all
of his former colleagues. He not only changed his party label, he
gave the Democrats control of the Senate.
Following precedents of other switchers, the Senator from
Ve rmont could have made odle r choices. He cou ld have
Ripon Forum • 5ommef" 200 I
These are dramatic changes. As a result, the need for heal
ing and unity is stronger than ever. Let us now fully real ize
the challenges that accompany peace in th e big tent. RF urges
our Republica n le adership and the White House to put th e
words respect and tolerance into deeds.
Finally, party s\\litchers are not new to politics and doubtlessly
there will be more public officials who will do so out of
principle and conscience, not to mention self-preservation.
RF will always stand in admiration for those who put principle
first. However, Senator Jeffords' decision was one small step for
principle and one briant step for a Democrat majority.
That being said, the Republican Party may have finally seen
the last of the backbench bomb throwers. While Ripon is disap
pointed by the recent turn of events, it is our hope that the COP
can now begin work on an agenda that encompasses the entire
Party rather than focusing on concessions that
only please its fac tio ns.
The message is still the same, if any
onc is willing to li stcn.
5
Safeguarding America~s Meat Strict regulations protect the nation's beef supply against a new and dangerous disease
Ily Catherine E. " \ltcki, ')h.Il., 11.1).
ncreasmg rcpo rt s of Mad Cow
D isease arc making many Americans
question the health and safety of the
nation's bee f supply. M ad cow
disease, technically known as Bovine
Spongiform Encephalopathy o r BSE, is a
vexing problem to health and agriculnlrc
in several European countries.
In the 19805, SSE infected catde
herds in Britain and then spread to other
European coumries. As a result, leading
government authorities have slaughtered
large numbers of carrIe and incinerated the
remains to prevent its introduction into the
food supply. W hi le it has yet to appear in the
United State s, new developments arc
alarming. Eati ng meat from SS E- in
fected cattle is lin ked to a new, invari
:ably fatal brain di sease of young men
and women call ed new va ri ant
Creutzfeldt -Jakob Di seas e {vCJ D }.
About 100 people have d ied from the
6
new di sease, and public health expe rts
are carefully monito ri ng fo r new cases
to determ ine how many people this new
d isease wi ll ult imately infect.
Not knowing for certain how the in
fectious agent is transmitted, he:llth au
thorities are moving to prevent blood do
nations from people who lived in the
United Kingdom for more than a short
period of Time and requiring the use of
disposable surgical instruments for some
operations.
H eavy media coverage of the HSE
epidemic in British a n tic and the related
vCJD epidemic in people has led many
Americans to ask themselves if the same
could happen here, what p recautionary
steps are being taken and if more should
be done.
A NEW DISEASE Scientists find BSE fascinating. Un
like most diseases, it's caused not by bac-
teria, a vi rus or a parasite, but rather by a
mis-shaped protein. If the currently ac
cepted hypothesis o f how BSE arose
pro\'es to be correct, it 's a disease that has
jumped from one species {sheep} to an
other species {cattle} to a third species (hu
mans).
For a human disease to originate in
animals is nOt unusual. That happens with
the annual flu epidemics, and animals may
also have been the source of the virus that
causes H I V / A IDS. Some experts predict
that 70 percent of the new diseases that
will affect people in the fururc will arise
from o rganisms that now infect animals.
BSE causes progressive and fatal at
tacks on the brain and nervous system. But
the disease is d ifficult to diagnose because
there is no existing test that can be used in
live animals. Much of what the scientific
community knows about the fa mily of
BSE- like diseases stems from the work of
D r. Stanley Prusiner. For discovering the
cause of this new disease and the elucida
tion onts mode of action, Dr. Prusiner was
awarded the Nobel Prize in 1997.
BSE belongs to a family of diseases
that arc called Transmissible Spongiform
number continues to increase as new cases
are reported in other Europe:m coumries.
To contain the spread of the disease, government authorities require that the entire
herd of cattle be slaughtered when a new
BSE case is identi-
"The disease takes years to develop, both in cattle and in people, and there is no reliable blood test to
fied an d the car
casses be incine r
ated so no poten
tially infected meat
can make its way
determine infection."
Encephalopath ies or T SE's. The TSE's
arc caused by priollS, which are narurally
occurring protei ns in the cells of warm
blooded animals. Unlike bacteria, vi ruses, and parasites, TSE-causing prions contain
no DNA or RNA. Although the priom
replicate, they do nOt do so in the same
ways as pathogens. T he pathogens of viruses duplicate their generic material and
wrap it in a protein coat while the patho
gens of bacteria and parasites are wrapped
within a new cell.
S ut in the case oITSE-causing prions,
once the mi s-s haped protein is
present in the body, it acts as a
template for other prion proteins to refold
to the abnormal shape. Once that occurs,
the protein can't change back to its original
shape to perform its functions within the
cell, and as more abnormal prion proteins
accumulate, nonnal cell functions begin to
break down.
In the brain, holes begi n to form long
before changes in behavior become appar
em. The name "spongiform encephalo
pathies" refers to the way infected animal
brain tissue looks - like a sponge. Prions
arc almost impossible to get rid of because they arc resistatu to the sterilization tech
niques usually used to kill infectious or
ganisms - heat, acid and radiation .
The fi rs t BSE case was diagnosed in
Great Britain in 1986. So far, about
190,000 cattle have been affected. T his
Ripon Forum • Summer 200 I
into the human
food supply or be rendered into animal
feed and continue the cycle onnfection.
The first ten causes of human vCJD were described in 1996 and linked to the
consumption ofBSE-infectcd meat. Since
then, more than 85 people ha\"C been diag
nosed in the UK, Ireland and Fr.1I1ce. The
disease takes years to develop, both in cattle
and in people, and there is no reliable blood
test to detennine infection. As a result, pub
lic hcalth and agriculrure officials have put
into place strict measures to protect their
publics and their agricultur.tl economies.
PROTECTIVE STEPS In the United States, both the De
partment of Agriculnlre (US DA) and the
Department of Health and Human Ser
vices (HHS) acted to protect human and
animal health. In 1989 when the magni
tude and seriousness of the British epi
demic became apparent, USDA prohib
ited the importation of cattle and other
ruminants, and most ruminant products
from coun tries affected with BSE.
Th roug h its Anima l and Plant
Heahh Inspectio n Se rvice (APHI S), US DA tracked down 496 cattle from
the UK and Ireland that were imported
between 1981 and 1989 when the ban
went into place. On ly four out of the
original grou p arc still alive and they
arc under quarantine. None of the or igi
nal group showed evidence of BSE.
In 1997 APHIS exten ded the ban
on importing live animals and rumi nant
products to all of Europe until they
cou ld complete a thorough risk assess
ment. US DA and the livestock indus
try have developed an active BSE edu
cation prog ram for veterin ar ian s,
slaughterhouse and market owners, and
others associa ted with the livestock in
dustry. US DA inspectors in slaughter
plants exami ne incoming animals for
neurologi cal signs and symptoms of
BSE. Any suspicious animals are taken
7
away for autopsy and their carcasses are
destroyed. To protect human health, the Depart
ment of Health and Human Services put
con trols on ruminant-derived products
that go into drugs. Blood centers arc responding to FDA's requirement to exclude
donors who lived in places where fiSE and
vCJ D have been identified. FDA recently
surveyed animal feed manufacturers to
determine the level of compliance to its
ban on feeding ruminant products to ru
minants. The Centers for Disease Con
trol has instituted an active human sur
veillance program for vCJ D. To date, these collective actions have
proven to be effective. No cases of BSE
or vCJD have been detected in the US.
HOW SAFE ARE WE! The protective measures have sealed
off our borders to importing live animals
from areas of the world wi th BSE.TIley
have largely ceased the feeding of meat, blood and bone meal to ruminants, which
is the means of propagaring a prion-caused
epidemic. The measures have stopped the
import of beef from BSE countries and
taken steps to prevent human- to-human
transmission through blood and blood
products. But is it enough? In a recent editorial in the weekly
8
journal Sti(flu, Bernadine Healy, President
of the American Red C ross, argues that more needs to be more on the human
health side. Without a simple and reli
able blood test for screening both people
and cattle, the safety
emerge, so il's extremely important that
the ruminant feeding ban be scrupulously
followed to prevent propagating the disease if it should occur.
USDA needs to continue its periodic
retraining of veterinarians working in
slaughter plants so they will be able to
detect the abnormal behavior associated
with BSE-infected cattle. At the mo
ment, the prevalence of prion disease in
catt le is not known when cattle are
slaughtered for human consumption. But when a reliable test becomes avai l
able, USDA should require its usc in
routin e market surveillance for infec
tious di seases and harmful chemicals.
In his Nobcl laurcate address, Stanley
Prusiner comments on the 'Ot,",,,,, p"h of l the scientific investigation of the rnmilial
fonn of C reunfeld-Jakob disease. He also
discusses the enormous resistance from the
of our blood hanks,
tissues for transplan
tation, or our food
supply will not be
known, she says.
Dr. Healy wants
to see more funding
dedicated to research
"The protective measures have sealed off our borders to importing live animals from areas of the world with BSE."
than the current SI4 million in prion re
search supported by the f ederal govern
ment last year. She argues that the US.
should also expand its surveillance of vCJD and BSE and establish tissue banks like
the UK. and Swit"LCrland are doing to Test
fo r the presence of prions in the popula
tion.
On the agri culture side, BSE
prevcntion steps mUSt be followed
and thc import ban on both animals
and meat products should stay in place. USDA inspectors need to remain vigilant
against the potential for illegal tr.illic in
live animals and meat across the northern
and southern borders and through U.S.
po rts. Scient ists don't ru le out the
possibility that S SE could spontaneously
scientific community to the idea that a pro
tein is indeed an infectious agent in CJD
and several other diseases of animals and
people that were originally attributed to ~slowviruscs. ~ Understanding how the prion
protein folds and refolds into a shape ca
pable of causing disease will help scientists
to understand other degenerative diseases.
Although the sciemific fascination
with these exotic diseases will continue,
pubic health, safety and education mea
sures must continue to safeguard the
nation's beef supply and prevent fur- r."I ther spreading of this new disease. ....
Dr. Cathlrinl E. Woflki, Ph.D. , R. D, is fhl
Former Undu Suutary for Food Safity af
fM U. S. Drparlmmt of Agricullllrl.
A New Partnership US, RepresentativeJack Quinn (R-NY) Builds a Labor-GOP Dialogue
lIy Ashlcigh Ilobel'IS, 1'0,,"", Edi lor
ongressman jack Qumn is an example of the "big
ten'" Ripon embraces, A Pro-Iahor Republican,
Congressman Quinn is not Jour typical M ember
oj CongreH, bul he is (1 Parly loyalist who
staunchly defends his (omli/uents in New York.
~ -" •
Wh ere many people could let diffirences divide them,
Congressman Quinn worksfor unity tlnd sees (o mpromise
as progrelS. Often refirred to as a Reagan R epublican, he
is amiable (lnd po/itically shrewd. He began his career in
Ccmgrers with a stunning upset in 1992 and has
(ontinued to defeat Democrat efforts /0 unseat him. Part
of his fUCC(SS stems from his own, independent leadership
style and hIS ability fa reach ali t 10 labor groups. [n the
!-louse, Quinn is also known for leading the figh t to
In(reau !lllfllmum wage. On May 17, 2001,
Congressman Quinn talked with the R ipon Forum
~~---------------------------" ~ O:m~JSmanJa(J. Qllinn diJrossD Mw Yoill30th DiItrictwith RF Editor Ashkigh RWerts.
about some of the challenges in the 107'· Congress Imd hif strategy
for r/anding by the people of Buffalo and supporting Bush's
legislative agenda.
RF: Congress man, you are a well-known Republican but you don't represent a typical Republican district. Can you describe
your constinlency?
Congressman Quinn: As a marter of fact, I represent a typical Dcmocratdistrict. It's threc to one Democrat. Buffalo, New York,
is one of the most highly unionized cities in the United States. It
is 29 percent unionized . Even when union numbers arc going
down nationally, Buffalo numbers remain at 29 . But it is a blue
collar conservative district more than it is Democrat or Republi
can.
RiJXlfl Forum • Summer 200 I
RF: In your last election , you received 67 percent of the vote.
How does that happen to a Republican in the mosr highly union
ized district in the country?
Congrtssman Quinn: My staff and I work hard. r ve been home
every weekend for eight years and we vote the district. It doesn't
always make some in the Republican leadership happy, but we
think it is what the people of BuffaJo want and we've been fo rtu
nate to be returned a few times.
RF.. Labor groups have traditionally been strong supporters of
rhe Democratic Parry. Do think the Republican Party has a
chance to change that?
Congrtssman Quifm: Absolutely and posi tively. I am a perfect ex
ample of that. The last time out, 1 was endorsed by the unions.
9
They financially support me and are politically ac
rive. If the Republican Party is interested, I think
there are all kinds of opportunities.
RF: What is the core aspect of the Republican
message that appeals to them?
"When we talk about cutting taxes, balancing the budget and people keeping more of their own money, working families understand that."
COllgffssman Quin,,: I have said to the leadership that I have known here - Bob Michael, Newt
Gingrich and now Denny Hastert. I have told
them from the start, if they will let me deliver the Republican
message the way that I think it needs to be delivered, we will be
fine.
For instance, I can go to the floor of the United Auto Work
ers (UAW) hall. When we t:llk about cutting taxes, balancing the
budget and people keeping more of their own money, working
f:1milies understand that. They agree with that.
The difficulty, many times, is how the message is delivered
here. I need the flexibility to deliver that message myself. It
cannot be the gospel according to Newt Gingrich. It cannot
be the gospel according to J.e. Watts. \Ve just cannot deliver with the hard edges. The problem is not the message. It is
deliverable and it works, ifi t is correct.
RF: Being pro-labor and the Co-Chair of the Republican Work
ing Group on Labor can put you at odds with the President. How
do you support your President and your constituents?
CongrtSsman Qui",,; Well, it has not put us at odds often . But it
has only been five months, so it is likely that it will. But I will tell
you, I have to vote the people I rcpresem back in Buffalo. And I
think the people in Buffalo arc reflective of the majority of the
people in the country. If you notice how they run these cam
paigns, Republicans nUl to the right in the primaries and the
Democrats run to the left. But they can't wait until it is over so they
can get back to the middle, which is where I think Buff.tlo stands.
So, when I have to do that, if it is in opposition to our Presi
dent, so be it. But, he will know ahead of time where I am and
10
why I have to be there. It is very, very important to let them,
either my leadership or the President, know when I am not with
them. T hey have to know early and they have to know why.
RF: Congressman, you have also tried to reach out to the Ad
ministration and point out possible areas of conflict. Your meet
ing with the new Labor Secretary was canceled wi th fi ve hours of
notice. I-Iow did you feci about that, and what kind of a message
docs that send not only 10 Republicans, but also to labor groups?
Congressman Quin,,: I don't think it sends any message except
that the Labor Secretary is very busy early in the administration.
I don't think they even have a full staff over there yet. So, we are
willing to give her and the administration Ihe benefit of the doubt.
We are very anxious to re-schedule the meeting and we have called
and suggested some alternative dates.
RF: On May 8, 200 I, you and several other Republican Mem
bers met with II intern atio nal uni on presidents including
John Sweeney of Ihe AFL-CIO to discuss ways to work together
in the 107'" Congress. Do ),ou think the talks were successful?
Congressman Qui,,,,: It was very productive and positive. T he
meeting was an extension of meetings that have been going on
for about fou r or five years on a smaller scale. They arc usually
with two or three union presidems and maybe four or five Re
publicans. There is no doubt that the meeting last Tuesday was
the largest group ever assembled. I think there were 11 interna
tional presidents and 17 Republicans.
Ripon Forum • Sommer 200 r
The meeting was not positive on an issue or vote basis. It
also wasn't productive in the sense that one would say, some Re
publicans convinced the AFL-CIO to endorse them. But it was
productive from this standpoint, we arc communicating. We arc
talking with each other. That is the key. The union movement
understands the Republican point of view and Republican Mem
bers can understand what it is that the Union members need.
RF' President Bush issued an executive ord er in February
effective ly banning the use o f Project Labor Agreements (PLA's), which are contracts between a building t rades council
and constructio n project owners or man agers. He has since
amende d that orde r, now allowing for them on fed eral
projects. H as he gone far enough?
Congressman Quilln: It is a good start. I believe he has to go
further. For instance, the next logical step for him might be to say
that any project, any approved federal project, ought to allow
PLA's. That would be the result of a letter we wrote and we had
33 House members sign it.
RF: O bviously, there arc some differences between your views
and the administrat ion. , Vhat is your strateb'Y for handling these
diffe rences without di\1ding the party?
Congressman Quinn: One of them is the communications effort
we are making with the Secretary of Labor to allow as much of a
~heads up~ in advance. Our strategy is to let our own Administra
tion know early where we have some heartburn and where we are
going to have problems.
Many of us, maybe 20 to 30 Republicans in the House of
Representatives, already have voting records on labor issues.
Project labor isn't new. M inimum wage isn't new. Davis
Bacon isn't new. There is the comp-time issue and paycheck
protection. None of these arc new issues. We have all had votes
on this before.
It will be very difficult for Republican Members to change
their votes justbccause there is someone ncw in thc White House.
h will be for me. Congressman Frank Lobiondo from New Jer
sey is the other Member that works with me on many of these
issues. We're interested in letting the White House know what
those issues arc and how we can work together.
RF: Can you tell me a little bit about your bill 10 increase mini
mum wage?
Congressman Quinn: My theory last year was to get a deal and we
didn't. It's a balancing act. How much of a tax incentive can you
add and keep the raise at a dollar? You try to bringas many Demo
crats with the increase and as many Republicans as you can on
the tax side. That fell through last year.
Ripon FOf\IITl • Summer 200 I
The Democrats immediately raised the stakes to a dollar and a half once we got a new President and Administration. I essentially took the old bill and filed it so we would have a backstop. We are gcning another one ready at a do!lar to file next weck.
The talk is that it will be the vehicle to get any tax cut done.
And they arc talking capital gains now. I think that will drive a lot of Democrats away, whcther it's a buck and a half or not. Capital
gains will drive them away. It would have to be smaller. You have
to pay attention to the small businesses out there, [he restaurant
owners and the convenience store owners. In my opinion, if they
try to do capital gains on a minimum wage bill, it will drop all of the Democrats off the bill and some of the RepUblicans.
RF: As a fo rmer teacher, what do you thin k about the Education
bill that is on the floor this week?
Congressman QlI inn: I think the Education Bill is pretty sound.
think there are some odds and ends that we do not like. But J am
hearing from the people back home in the education business
teachers, administrators and others - that they like it. ' Ve have
some spruci ng up to do when we are through with everything,
but basically it is pretry sound. I was talking to Congressman
Mike Castle about it today and we think we arc okay. It is [J not perfect, but it works.
VITAL STATS: JACK QUINN
Birth Date: April 13, 1911
Party: Republican
Political Philosophy: Pro-labor, moderate Republican
Hot Issue: labor
Home: Hamburg. New York
Family: Married 10 Mary Beth M<And"".; 2 child"n
Religion: Catholic
Education: Si ... CoIIego, B.A. (1973); S.U.N.Y BufbIo, M.A. (197B)
Professional Experience: Congressman. U.S. House of Represent1tives (1992.present); Hamburg Town Supervisor (1983· 92); junior High School Engli.h Teach" and Basketball, football and Track Coach, Orhard Park Central School (1973-19B3)
Web Address: www.house.gov/quinn
II
Earning the Majority
j/h the narrowlst of margins in fhe U.S. HouSt,
(Ind the US. Smale n(JfJJ in Democrat hands,/~
po/i/iral allalyus would have prdieted Re/JUh/ieam
in Congrm are ruaring paHage of Pmident BUlhs two top legislative priorities, lax relief and ((Iu{a/ion,
within six months. But aflu msiam of partisan gridlocR, the United
Statu House ojRepmmlaliw! is makingprogms. On May 17, 2001
The Forum was able 10 Illill with the man behind the sunes, Speaker J Dennis Haster/.
Although hI! was 'fJirtllally unkn()'U)11 to tm general public in De
umber 1988, CongrtIlfllll1l Hastert was well known in the Houufor
his ability 10 negotiate tlt/iwlt issues and rtoch a (omemus. As the 51"
Sptaktr of/he H ouse oJRepmentativls mars the middle ofhis montl
lerm, he sti/l does not SUR the spotlight. Nrun-flultsS, public attention
has jrxuud on his ahilily and effirll10 work through partisan diffu
mces and pass I~gjslation.
RF: Mr. Speaker, I)olitical observers have said you came by your
leadership position by circumstances not of your own plan or de
sign. You, yourscl( ha\'e stated that you did not seek the Speakership.
Wedo not hearthat talkduring this session. What haschanged?
Sp~ak~r Hastert: Well, I've already said I accepted this job and I
accepted it with the responsibility that I would try to accomplish
key goals. First of all, get things done. I think we needed to stop
the rhetoric and start to produce legislation for the American
people. We did that.
12
SptaJ~r flasftrt lalh aboul the 10716 Congms with RF Editor Ashleigh Rob~rfs.
There were a lot of doubters out there who said we would
never be able to keep the majority, but we were able to produce.
Ripon Forum • 5o.Jmmer 200 I
In the I-louse, we did a health care bill, bal
anced the budget and paid down the debt. We actually preserved Social Security lind passed
a tax cut. There was a pharmaceutical drug
bill that we did on our side and a patient bill
of rights that we did on our side. So, Repuhli
ClIns were able to go home with a solid legis
lative record and talk about those things.
That was my agenda and my plan. And, we
are going to do it again. People arc already s,'l)'ing
that we cannot keep the majority. We say" .. e have
to erun it.That is wh)'\vc need ro finish the educa.
cion bill, provide tax relief and make some changes
in our mde policies. We want to do a patient
bill of rights again. We also want to do a phar
maceutical drug bill, get it done and get it signed
so we can take those legislative accomplishments
on the campaign trail and beat the odds.
The historical odds say that in the first mid
term election of a new President, the party
of that president loses Memhcrs. I think
we can buck those odds. To do it, you have to
be aggressive and pass legislation . You must
show that you can make a difference. You have
to earn your way.
Second, you must build the grassroots,
raise the dollars for Members 10 run and fo
cus on campaign basics. You cannot be lack:.
daisical, sit back and expect the seated Presi-
dent to win it for YOll.
RF": Despite the narrow margin of Republicans to Democrats, House Republicans have been able to move President Bush's top
legislat ive goals ;n regard to tax relief, the budget
Photo by Man" Tamil
RF: Let's assum e the tax relief and educa
t ion bills a re eonfereneed and th e Presid ent
signs both into law. What is next for the Re
publican Co ngress?
Speaker H aslerl: We have what I call the
'Three E's' - the economy, education and
energy. With the economic issues, the tax
bi ll is probably the most important piece.
Paying down the debt is another piece. We're
going to do an admirable job on that in this budget. We have set a goal benveen four and
five percent of growth. It will take hard work
to keep that. T he appropriations bills can
nOt be commandeered by somebody in the
H ouse or Senate who will push that num
ber over the top. T he other important presi dential ini
tiative is education and it is on the legisla
tive front burner right now. After those two
issues are concluded, it is crucial to begin
work on a long-term energy plan for this
coun try. In addition to the T hree E's, there
arc also some trade issues that need to be
addressed. The President needs to get ap
proved trade authority. AU of these issues
affect the daily lives and pocketbooks of
Americans and they are all out there and
ready to roll.
RF:There has bee n a big change in th e White House in terms
of style, to ne and policy goals. What changes have made you r
leadersh ip responsibiliti es eas ie r?
and now education. How has the leadership been
able to accomplish these goals?
Speulur H asla l: It 's nOt just the leadership. Our
members have really pulled tOgether quite well. Re
publicans have strong beliefs in our abig tent" pany,
but both the moderates and the conservatives have
"Republicans have strong beliefs in our 'big tent' party, but both the moderates and the conservatives have committed to a
committed to a common agenda and we have been
able to get things done. They have both sacrificed
for the common good.
common agenda and we have been able to get things done."
Nobodywould be benefited, at least in our Party, if we couldn't get things done and lost our ability to hold the
majority. It has hcen a common effort of everybody working to
gether to keep this majority. People have sacrificed, been very
cooperative and worked hard to get thinb>1i done.
Ripon Forum • Summer 200 I
Spealltr Haslerl: Since being in the majority, the idea was to
pass legislation and then posture ourselves to get something signed at the other end of Pennsylvania avenue. Obviously,
with a President of your own party, it makes it a lot eas ier.
13
In the House of Representatives, I always feh
like Republicans were going back home with 220
little snare drums trying to get our message across
the country. But we were competing against the
White House's bass drum and the power of the
bully pu lpit.
At least now, we have harmonized what we are
saying. Everything Republicans say here is echoed
by the White House and vice versa. That really helps get the message out.
RF: Have there bee n changes in th e Admini stra
tion that make your leadership more diffi cult ?
Speaker H alterl : I am saying this in a kind way. It used to be that anytim e you didn't agree with the
President you could lambaste the Democrats and
say that the Pres ident was ill advised. Today, dis-
agreeing with the President creates a whole rift in the Party.
So, what has to be done can be reaUy difficult.
There were a lot of issue s on the edu cation bill
where so me Republi can Members really didn't
agree with the President, Yet, you had to keep a bi-partisan
bill on track, keep Republicans happy and keep the President happy. It tends to expand your job description a little bit.
RF: You constantly travel the country on behalf of Republican
candidates. \ /\fhat is the main theme of your remarks?
Speaker H aslerl: I t changes somewhat as time and issues change.
But if we pull together and work together, we can get things
Sf¥dff l1aJUrl t1ullin~1 biJ Irrislaliw pis wit" RF Editor Ashltigh RDlMrll.
Democra tic leade rship and what is yo ur assessment on di
visio ns wit hin th e Republican ra nks in th e H ouse?
Speaker H aSlerl : There are some Democrat leaders that
get al ong with re ally well. Othe rs go under the premise
that if they help the Republican s get anything done, it
make s it harder for them to take back the majority. So there
is a rift or harsh partisa nship and sometimes you wi ll see that. It is visible in the H ouse and the Senate .
But my view is that you have to reach across the aisle .
You have to tone down the rhetoric to get things done .
And, there arc some real things you can do on a biparti san
basis. But if the rhetori c is filled with political or parti san
"In the House of Representatives, I always felt like Republicans were going back home with 220 little snare drums trying to get our message across the country. But we were competing against the White House's bass drum and the power of the bully pulpit."
ve nom, you arc never go
ing to get anybody o n
board with you. That I S
true fo r both parties.
RF: The Democrats are
well unit ed in oppositi on
to the Rep ubli ca n
agenda. Ca n yo u keep
both th e moderate a nd
done for the American people. Getting things done gives us the
ability to own this place, as far as a majority is concerned. When
those things stop gening done, Republicans are at great peril.
So, it is always kind of a pep talk that says let's get things done. Let's move forwa rd.
RF: Si nee th e Newt Gingrich days, people don 't hea r as
mu ch about the Republi ca n Revo luti on or par tisan acri
mony. Two qu estio ns: What is your relationship with the
co nservative Republi ca ns united to th e extent that they will not de rail the President 's agenda?
SpeaRer H aslerl: There are two situations. The H ouse is
one situation and the Senate is another. In the House, ou r
M embers have reacted very well. They know that we need
to stay together and if we don't stay together, we cannot
move our agenda. If we don't move our age nda, we don't
keep the majority. It 's that si mple.
Ripon FOI"Ufll • Surrwner 200 I
"That is just my nature. I try to get things done. But I am very reticent for anybody to put me on a pedestal and make an example of me. As soon as they put you on a pedestal in this town, it gets easy to get knocked off. I just want to keep this ball rolling. We have successes because Republicans work together."
ti me. T here is no magic wand
that you arc going to wave and
be able to solve the problems
caused by eight yea rs of en
ergy neglect. I go back to
En e rgy Secretary B ill
Richardson's comment. ~they
were sleepi ng at the switch.~
You can't fix this thing ove r
night. It took eight years of
no energy pol icy to come to
fruit ion.
RF: Many political observers arc beginning to give you credit
for a leadership style that has prod\, ced legislative victori es
fo r President Bush a nd th at you arc coming in to your own as
an e ffective Speaker. A ny co mme nts?
S~aker Hasla'f:That is just my nature. 1 try to get things donc.
But I am very reticent for anybody to put me on a pedestal and
make an example of me. As soo n as they put you on a pedestal
in this town, it gets casy [0 get knocked off. I just want to
keep thi s ball rolling. We have successes because Republicans
work Together.
Tlcrc is not anyone person who is respon sible, and I am
very hesitant to take any of that responsibi lity. I will take
the responsibility when we have problems. But, ou r success
is because a lot of people have worked together to get things
done. I have a g reat leadership team. From the whip to the
majority leader to J. C. Watts to all of the people who work
together to get out our message and get things done. There is
a lot of credit to go around.
RF: In regard [ 0 [he nation's g rowing energy problem, what is
[he Republican Congress going to do?
Spealur Hastert: Probably the same thing the Republican Senate
is going to do. There arc three phases. Some things can be done
right away. We don't just need to talk about conservation; we need
to work on it.
There arc some things we can do by adm inistrative fiat. In
regulation fo r instance, there is two-thirds unused capacity at some
of the western dams. We can open that up, but you have to deal
with some water rights to do it. We can also address California's
peaking problem. There arc other issues out there for immediate
conservation. I drove a gas-electric car. It has just as much zip
and uses 50 percent less fuel.
Those arc the types of things we need to take a look at. Some
of the proposals arc immediate. Some of them will t'd.ke 18 months
to two years to put in place and some of them will take a long
Ripon F()I'"UIl"l • Surrvncr 200 I
RF: If YOIl had two wee ks
yo u could take off and d o any thing you wanted to d o, what
wo uld it be?
SpeaJ:~r Hast"t: Two weeks? That's easy, I would go home. m Asbleigh Roherts is the editor of The Ripon Forum.
VITAL STATS: J. DENNIS HASTERT
Birth Date: )'"'''Y 2. 1942
Party: Iopublica'
Political Philosophy: A pragmatic conservatin
Hot IHue: A Iopublica, majority
Home: Yomil~. lIIinoi.
Family: ""ried 10)", 1. 111; 2 child .. ,
Religion: Pro", ... "
Education: WbuIOll CoIiOgt. 8J. (1964); No""om lIIinoi. U,innity. "J (1961)
Professional Experience: Spukor. U.S. H .... of
Iop""'''li", (Im·pro ... I); Cong"""". U.s. H .... of !epmon ....... (1986·pmotIl); ! .. " Iop ............ lllinoi. Gonml Assombly (1980-1986); High School Hi.tory T_ and Wro.di,! C .. cII. Yml~ High School (196S·1980)
E·maIl Add ..... : [email protected] ... !"
15
Ripon Holds 2001 Ro
he Ripon Society proudly announced the 2001 Rough
Rider Award recipients at its annual dinner on May I.
2oot, in Wash ington, D.C. T he awarclees included
Health and Human Services Secretary Tommy G.
Thompson , Se nator Don N ickle s (R- Okla.),
Congressman Michael C. Oxlcy (R-O hio) and Congresswoman
Nancy L.Johnson (R-Conn.).
~ h is with great honor that I prescnt you with the 2001
Rough Riders,~ said the Honorable Bill F renzcl, President of the
Ripon Society. ''Tonight's awardces represent the broad spectrum of the GOP and highlight the basic themes that unite our Party"
T he Rough Rider award is named after the nations 26'~
president, T heodore Roosevelt, and his beloved Rough Riders.
About 500 pcople attended the event, which was Co-Chaired
by Senaror Chuck J-I agel (R-Neb.) and Congressman Bill T ho
mas (R- N. M .).
Each honoree received a framed sabre and scabbard as a
symbol of the courage, conviclion and perseverance that marked
President Teddy Roosevelt's career.
"A replica of Teddy's CoI.v-alry sabre was presented to these
modem Rough Riders who have nOI been afraid to tackle the
most difficult problems confronting our nalion,~ Frenzel said.
"Often in the face of adversity. these leaders have not faltered,
nor abandoned their pri nciples."
F renzcl said they were worthy successors to the leadership
mantic of a president who understood the relationship of poli
tics and heroism, and onc time described it this way:
~The credit belongs to the man who is actually in
thc arcna; whose filce is marred by dust and sweat and
16
By Ashlcigh
Ripon Forum • Summer 200 I
Rider Awards Dinner rOI'l"11 Editor
Ripon Forum • Summer 200 I
blood; who strives valiantly; who errs and comes short
again and again because there is no effort without error
and shortcoming; who does actually strive to do the
deeds, who knows the great enthusiasm, the great devo
tions. who spe nds himself in a worthy cause. " The Rough Rider Awards Dinner was inspired by these
words and the dynamic vision of Teddy Roosevelt, a leader
who re-energized not only his parry but also the nation with
strong beliefs about capitalism, conservation and democracy
in the early 20,h ce ntury. l oday, Republicans still believe most
Americans support the ide:us of a smaller, more efficient and inclu
sive governmcnl. Congresswoman Johnson, who was honored for her work on
health care, said the sabre and scabbard would hang proudly in
her office. "I am honored that my work as a member of Congress was
considered significan t enough to garner this award," she said. "]
am also honored to join with previous winners of the Rough Rider
Award, including U.S. House Speaker Dennis Hasten, who has
never given up in his quest to make a difference." The Ripon Society proudly bestows the Rough Rider Award
on the men and women who continue to bring the message of
Lincoln , Roosevelt and Reagan to our citizens and work to re
store the core values of the Republican Party.
This year's awardees have pushed for innovative policy solu
tions on a wide range of issues and we believe the Republican
President who led our nation at the dawn of the last cenrury would
be proud of these leaders fo r it is their principles that will
m take us into the next.
17
Restoring the Majority: The GOP Challenge in California
II)' I)hilippc Melin
nly six yem ago the Republican
Party was on a roll in California.
With a Republican Majority in
the Assembly, a Republ ican
Governor and a hi story of
Republican Presidential victories in six of
the past seven elections, California was
perceived as a bast ion of the new
Republican Majority that appeared to be
emerging nationally.
Governor Pete Wilson, who per
suaded GOP legislalOrs to back him in
stead of dealing with Democrat leaders in
Sacramento, won fai r redistricting. H e
earned the GOP 24 of California's 53
Congressional scats, on ly two shy of a
majority.
Now, only six short years later the
Party has hit a disastrous low. There has
not been one major statewide GOP vic
tory si nce 1994.Governatorial candidate
Lungren's landslide loss in 1998 and
former Vice Presiden t Gore's 12 point
margin of victory in 2000 appear to put
the state solidly in the Democrat's base.
18
Republicans hold only 30 of the state's
80 Assembly scats. T he Party lost four
Congressional scats in the 2000 elections,
and stands to lose as many as four to five
more in a Democrat controlled redis
tricting process. Such a loss could be the
decisive event in shifting control of the
U.S. H ouse of Represenratives to the
Democrats.
Hurt by the GOP's image as too ex
treme, Republican Party registration has
declined dramatically and is less than 35
percent. Despite a growing effort by main
stream Republicans to clect new leader
ship, the Party organization is still narrowly
contro lled by a coalition, whose leaders
preferred Gary Bauer ro George W . Bush
in 2000. Senior Bush supporters in the
state privately say that if major reforms are
not made, the party is not worth their in
vestment.
WHAT CAN BE DONE The dramatic events of the last six
years show that a reversal of fortune is
possible. Perhaps not in 2002 or 2004, but
certainly in time for 2008 when Califor
nia will playa major role in selecting the
next generation of Republican leadership
that will succeed George W. Bush.
There arc five key elements to a re
vival of the California GOP.
I. A NEW IMAGE: A change in the party's
image, led by concerned Republicans
speaking out in their own communi
lies, and eventuallycchocd by new lead
ership in the California Republican
Party.
2. STRONGER GRASSROOTS: A revival of the
party 's traditional emp ha sis on
grassroots door-to-door volunteer ef
forts and a rebuilding of the party's
grassroots donor base.
Ripon Fonm • Summer 200 I
1. BEITER CANDIDATES: A new generation
of candidates with a new message.
4. REACHOUTTO INDEPENDENTS: Continued
efforts to bringindepcndentvoters back
into the GO P coalition.
5. FAIR REDISTRICTING: Redistricting that
will give Republican candidates a fight
ing chance to win back majorities.
Let 's look at each of these items start
ing ,vith the Party's image. California Re
publicans relied for years on the theory that
so-called "Reagan Democrats ~ or blue
collar workers wooed by conservative Re
publican positions on cultural issues would
provide the swing votes to elect Republi
can majorities.
A 1999 sttldy sponsored by the then
mainstream Assembly of Republican
Leadership concluded that thi s
demographic group had, for many reasons
including the con traction of the defense
industry. dec lined d ramati ca lly. In
addition, two new groups, middle class
H ispanics and suburban, socially moderate
women had replaced them as the swing
constituency.
The conservative 1989 Webster de
cision on abortion ignited concern, par
ticularly by moderate Republican women,
that the Supreme Court was only one vote
away from overturning Roe vs. Wade and
allowing states to outlaw abortion.
Since that decision and the refusal of
the Part)' to moderate its stand on the is
sue, there has been a continuing exodus of
GOP women from both GOP candidates
and from the party itself. Polls have shown
that both Lungren and Bush's loss was due
in part to massive defections among still
registered Republ ican women voters.
T hese defections will become pennanent
losses to the party unless a future genera
tion of candidates and a new party image
wins them baek.
Even more damaging has been the
carnage suffered by the GOP among H is~
panic voters. Pro-choice Governor \ -Vil
son, who worked h:lrd to keep GO P
Ripon Forum • Somrner 200 I
women loyal to the part")~ chose (0 crack
down on illegal immigration and govern
ment benefi ts fo r illegal aliens who were
already in the nation, a shrill issue in his
campalh'11·
\ -Vhile these issues comm:mded ma
jority support in California and won him
re-election there, they went a long way in
alienating the H ispanic community, par
ticularly young H ispanics who perceived
it as anti- Hispanic rhetoric that polarized
the electorate along ethnic lines,
T he damage done has extended be
yond California as liberal activists usc the
California example for their own efforts
to po larize the Hi spanic community
ag-dinst Republicans. As the Hispanic
popu lat ion grows dramat ically and a
Congn:ssional support for greater local £lcx:ibility in federal education assisClllCC has made
an important contribution to this success.
In California the energy crises and the
almost pat hetic effort of Governor Grey
Davis, first to minimize the crises wh ile
Bill C linton W'J S in the White H ouse and
then to blame it on President Bush's re
fusal to cooperate in imposing price con
trols, reveals the ncar intellectual bank
ruptcy of the Democratic Party in Cali
fornia. The crises provides an extraordi
nary new opportunity fo r RepUblicans to
win on a simple message of managerial
competence.
But th:lt message will be drowned out
unJess the GOP is able to neutra.lize the
issues that have driven swing voters away
"In California the energy crises and the almost pathetic effort of Governor Grey Davis, first to minimize the crises while Bill Clinton was in the White House and then to blame it on President Bush's refusal to cooperate in imposing price controls, reveals the near intellectual bankruptcy of the Democratic Party in California."
greater share register to vote. this trend
cannot be ignored.
THE SOLUTION The Party can and must neutralize its
image of negativism on these issues and
refocus the party on its basic messages of
freedom, hope. opportunity, growth, diver
sity and personal responsibility.
President Bushs recent success on educa
tion policy, which reversed years of a Democratic polling advantage and crafted a biparti
san Congn:ssional majority for stronger ac
counrnbilitywhilc retaining local conrrol of edu
cation, is an example of \.mat can be done with
leadership at the national k. .... ·cl. Republican
from the party. Californians wan t eco
nomic prosperity and the lower taxes and
fiscal rovonsibility that are essential to such
growth. But most will reject a "nanny" gov
ernment that seeks to lcgis.late morality or
one thatsceks to pit one ethnic group ahrainst
anot her for partisan gain .
O n the difficult and bitterly divisive
issue of abortion, the party will never reach
a consensus. California Bush leader Gerry
Pars~"y recognized this by appointing a Cali
fornia delegation to the GOP national con
\ 'CI1rion whose leadership supponed n:nl<Wing
the abortion plank from the GOP platfonn.
!-l ard core social conservatives who
run the Califo rni:L Party structure still have
"
not forgiven Bush activists for this move
and many will fight to stop a similar move
at the state level. For some, a deep mora.]
conviCTion that abortion should be outlawed
is more important than winning a majority.
But regardless offights over the party
platform, a new generation of Republican
leaders can and must change the party
image simply by speaking out to make pro~ choice Republicans more visible through
out the state.
Silence by the mainstream majority
of California Republicans at the grassroots
level, who still believe that abortion is a
matter to be setrled between a women and
her doctor and not by the government,
simply allows the vocal minority to define
the party. The party cannot win without both it's pro-choice and it's pro-life wings,
but in order to \vin supporters of both sides
must feel that they have a voice and can
speak their minds in party circles.
I n other words, these battles will be
fought in primaries, but the losers must
not feel o.cluded from the party. The best
party leaders wiU recognize and encour
age diversity r:nher than call their oppo
nents traitors to the cause. As Newt Gingrich once said, ~ I f there isn't a lot of
fighting going on under the tent, the tent isn't big enough.~
In recent weeks, another long festering
issue for some of the same moderate
swing voters is a problem that must be
addressed, the environment. The GOP has
long suffered a polling deficit on this issue
with voters giving Democrats a big edge
as the party best able to handle the issue.
Unfortunately, while recent decisions
of the new administration can be argued
on policy grmlllds, the cumulative effect
creates a serious risk of alienating the over
whelming majority of Californians who believe that more should be done to con
serve our natural resources and prOtect the
environment. Key leaders in the Administration ap
pear to recognize this problem and arc
working to ensure nt:\v initiatives to con
serve energy, promOte alternative sources
of power, and toughen regulations on key elements of air and water pollution. Hope
fully these initiatives will overshadow early
public rela -tion s melt-
vote or the state at large. The GOP must
show its face in the Hispanic Community
at the grassroots level. GOP volunteers and if necessary, paid field organize rs,
should be working in Hisp:mic commu-
downs on ar
senic in drink
ing water and
the reversal on
regulating car
bon emissions
"This is not a battle that can be won on the telephone, on the golf course or over drinks at the country club."
that mayor
may not contribute to global warming.
Californians should not hesitate to
encourage the Administration to be even
more pro-active on the environmental
front. Their efforts are likely to be wel
come at the White House.
EXPANDING THE BASE The most important issue fo r the re
vival of the GOP in California must be ethnic outreach, particularly to Hispanics.
The Party should simply and dearly ad
mit that it made a mistake in 1994. The
mostly Anglo majority that elected Pete
Wilson no longer exists and the parry must
look to the future and not the past.
George W. Bush has been a leader on
this issue and his rhetoric in Texas, wel
comi ng immigrants as a valuable element
of society, has won him majorities and near
majorities among Hispanic voters in his
home state. With time, new faces and
voices in the GOI~ that message can work
in California as well.
Hispanicsare open to the GO P's mes
sage of opportunity. California Assem
blyman Abel Maldonado recently tells
audiences about his anS\ver to a youngqucstioner in his district who asked, mlsn't the
Democratic Parry the party for the poor?" "Do you want to be poor?~ he re
sponded.
But simply changing positions on is
sues witl not win the GOP the H ispanic
nities and at special events ro reach new
potential volunteers and activists.
This is not a battle that call be won
on the telephone, on the golf course or over
drinks at the country club. This banle will
be won at county fairs, community meet
ings, on college campuses and in street
corner restaurants.
The grassroots battle will not only be
waged in the I-l ispaniccommunity. Unions
and other Democrat allies won their vic
tories in 2000 with a massive street-level
and shoe-leather turnout campaign that
in the final days and hours of the cam
paign swamped Republican Members of
Congress in dose races like the ones of
Brian Bilbray of San Diego and Steve
Kuykendall of Los Angeles.
These candidates simply had not invested the resources to match the Demo
crals on the ground. Turnout mail :md
phone banks were no match on Election
Day for personal contact with voters.
Grassroots activists from the socially con
servative wing of the Party did provide strong su pport for symparheric GOP can~
didates. such asJim Rogan's losi ng bid for
re-election. But hard-core conservative
volunteers were less available for pro
choice nndidates like Bilbray and
Kuykendall, whose centrist positions made
them electable in their swing districts.
Developing a strategy, based partially
but not exclusively on mobilizing sn.dent
Ripon Forum • Sommer 200 I
and young professional volunteers, is an
essential feature of a COP revival in
California. The:se volunteers, who must
reflect the diversity of the state's population, will be the seed corn of the new
Republican Party.
Interes tingl y, both tradi ti o nal
groups with big- tent leadership like th e
California Young Republicans and new
groups like the pro-c hoice, pro-environment and fi scltlly conse: rvative Repub
li ca n Youth Majority arc working to
meet this challenge. They arc recruit
ing not only volunte:ers but candidates,
especially at the grassroots level fo r County Central Committee, which shapes
the make-up of the state's official party
structure. Brooks Firestone's 21 st Century PAC
mounted a broad-based candidate recruit
ing campaign uniting moderates and in
clusi\'e conservatives that nearly toppled
the state parry's ruling hierarchy. It plans
to do so again in 2002.
For candidate recruitment al every level,
diversity is a key word. The C:.t.lifornia
population and soon the majority pool
of registered voters will no longer be white, non -Hispanic. If white males decided
California and national elections, Bob
Dole might well have just been rc-elected
to a second tenn. Future California tickets,
especially fo r statewide offi ce, must be led
by women and ethnic minorities. This may
be the best way to send the message of
inclusion to the new constituencies who
often see the GOP as dominated by older white males.
COULD IT WORK? A recent survey by the Republican
Group, the WISH list, showed that black, pro -c hoi ce former Stanford Provost
Condaleeza Rice defeated even Arnold
Schwanzenegger to be the top choice of
California COP voters for Governor in
2002. When asked if she would consider
running, Rice said, '" love my job.~ She
Ripon Forum ' Sommer 2001
also said, ~l love California.~ The news
headline: "Condi Rice doesn't say no.~
II makes one wonder i£Bush would give
up his National Security Advisor ro have
the Governor of California be a close ally.
It also poses the question, would Rice give
up being National Security advisor for the
possibility of one day being ab l~ to hire one?
Unlikely, but who knows. Even the
thought is an intriguing possibility that
could energize a new generation of Cali
fornia Republicans.
THE ROLE OF INDEPENDENTS California's open primary, which al
lowed all voters to participate and which
was passed by a 60 percent margin in 1996,
was struck down by the U.S. Supreme
Court in 2000. In a little noticed but fun damental shift that the California Repub
lican legislators unanimously endorsed and
that the California GOP adopted a rules
change that allows independents to vote
in the Republican primary. This change,
fo r which Senate LeaderJim Bruheshould
get the credit, could go a long way to in
crease voter participation in GOP affairs. However, some GOP activists are
talking about an even more fundamental
shift that would allow the rop two vote
geners to run in the general election re
gardless of their political parry. T he im
pact of such a shift will no doubt be hotly
debated in the coming months. But if
adopted, it could fundamentally alter the
dynamics of California politics.
THE BOUNDARIES
OF REDISTRICTING Finally, no amount of internal r~fonn
in the California Parry will have much
impact on its electoral prospects at the leg
islative and Congressional level unless there are fair districts that wilJ elect com
petitive Republicans.
Republicans in Sacramento hold out
the hope that a deal can be struck with
Democrats to preserve the stanIS (IUO, par-
ticularly the 20 seats that form a critical part of the GOP's Congressional major
ity. But powerful Democrat interest
groups, including labor, public~mployecs,
trial lawye rs, and other si ngle interest
groups that fund Democrats in Califor
nia, will be pushing for control of the U.S.
I-louse of Representatives. A gerrymander
that took four or five more Congressional
scats to the Democrat column would go a
long way towards achieving this goal.
Led by the California tax-cutting
group People's Advocate and GOP House
Ways and Means Chairman Bill Thomas,
some C:diforn ia leaders are supporting an initiative called "Let the Voters Deciden
to remove the redistricting power perma
nemly from the legislatu re and allow a
nonpartisan commission to draw the lines
with final approval by the voters. If such
an initiative qualifies for the ballot this
summer, it will provide a powerful bar
gaining tool fo r Republ icans dealing
with th e legislature on redi stri cting
plans thi s fal l.
If Democrats in Sacramento pro
duce a blatant gerrymander, outraged
voters might well respond to the appeal, ~Takc the power away from the politi
cians and give it back to the people.~
Withou t the hope of taking four or live
new scats in Californi a, Democrat hopes
for retaking the House in 2002 would
virtwtlly disappear. Vv'it h fa ir redistr icting, good can
didates, a strong grassroots rel' ival and
a new image, the California GOP could
be back in the majority within twO to
four years. None to soon fo r the national
GOP that has it's own challenges, which
are nOt entirely different
tend with . to con- II]
Philippe Mtlin is the Exrcutive Dir(!(/or o[
the Republimrt Youth Majority, a pro-choice
organizillion flttlicafttlto promoting (J socially
tolemllt and j iscally conservative appro(ICh to gO'llen/flu nl.
21
A Different Approach US. Representative E. Clay Shaw,fr. (R-Fla.) invites America's
Youth to help solve the nation's growing Social Security problems
By Ashlcigh !Iobel'ls, FOl"llill Edilor
ongTtsSm(1t1 E. Clay Shll'W, j r. is well kmm.mfor spearheading
1m wrlfore reform Irgislalion that lead to one of the most
important soc;al changel ill rumt dunr/($. Now, he has
lalun on the cOllllf ry's aging Social Security program.
Quickly gaining II "pula/ion/or laclding the fI(I tion's tough
/S$U(J, Shaw is du/ieated 10 keeping the system lolvent for lutllre
generaliom. 11/ a hill he (o-allthoud with former l"'ayl and M eans Chairman
Bill Arch", Congressman Shaw promo/fJ the use of income tax (redits
to lund personal retiremenl (1((ollnfs. Still, the (hal/mgr is daunting.
Not only dors Shaw "pwent the dislr;ft with the highest percentage
of thou O'I.JtT the aglo[65, "/llny politicians rifer to Social &curify as
the third mil 0/ politirs. While many Membm would prefir not 10
lou(h the system until it is absolutely nuessary, Congressman Shaw
outlintd a new approach with lhe R ipon Forum on May 17, 2001,
and shared his plam to gel Amerital youth involvtd in the prouss.
RF: This fall , you are taking a different approach to Social Secu
ri ty reform . I understand you are planning several events 011
Florida college campuses. Tell us about your plans. ,
Congressman Shaw: It is very important [hat we mobilize young
people. They need to know that there is a ben er way to insure
22
COlIgrmmall E. Clay Shaw.]r. laMs aboul S()(ial Suuril] Riform with RF Editor Ashltigh Roberts.
Ripon Forum • Summer 2001
their financia l fu tllte, and that we can also save Social Security
fo r their parents and grandparents. If we start now, we can build
a better and stronger system arou nd the existing one.
T hen: is one thing we know for certain. Over the next 75
years America is facing a deficit in the Social Security system of
message to CQUllter that so we can bring the Democrats on board for a sensible solu tion to the whole problem.
RF: Mter being granted the right to vote years ago, America's
youth arc well known for their political apathy and low-voter turn
out. What makes you think they will be a political factor in So-
cial Security reform?
"Beginning in just 15 years, the system is not going to have enough payroll taxes coming in to sustain it. The federal government is going to have to step up to the plate and either put some more tax dollars into it -and that means raise taxes or cut benefits - or act now and get something done."
Congressman Shaw: You bring
them into the solution and you
engage them. You have to seek
them out. H opefully, we can get
a real discussion on campus and
in the co ll ege newspapers. I
think we can get good turnouts
at the hearings I am goi ng to
hold on Florida's college cam
puses. My goal is to energize the
young people so they will demand
over S20 trillion. No ecollomy can sustain that. We have got to move.
Beginning in just 15 years, the system is not going to have
enough payroll taxes coming in to sustain it. T he federal govern
ment is going to have to step up to the plate and either put
so me more tax dollars inlO it - and that mean s raise taxe s
or cut benefits - or act now and ge t something done.
RF; As the Chairman of the Socia l Securi ty Subcommit
tee, you've been in vo lved with the iss ue for mallY yea rs.
What ha s ca used you to change yo ur focus and take th is
issue to America's yout h?
Congressma n Sha w: W e need a publi c outcry. The only
thing th e Congress hears is, 'd on't cha nge my benefits .'
That is because th e Democ rats have been very successful
in convinc ing se niors that any chan ge in the system is go
ing to affect their benefits. Republicans need to send a positive
that Congress acts.
The hearing we are planning right now will be at Florida
Atlantic University in Boca Raton. We are goi ng to bring
the senior citizens in and let them sit on one side and bring
the students in and let them sit on the mher to create an open
dialogue between the two. I t will be an interesting experiment
because these groups usually don't express their concerns in rhe
presence of the other.
RF: What is your message to the young people of this country?
Congressman Shaw: Let me tell you, over 50 percent of the Mem
bers of the U. S. Congress don't have a fu ll understanding of how
Social Security works today. I am not sure that I would know if I
wasn't so involved with it. It is something that most people don't
seem to focus on. But it is so important and it consumes so much
of ou r national budget that young people can't afford not to get
involved. It is so important to keeping people out of poverty that
,
Ripon FOI'VITl • Summer 2001 -::~===~:::;;2J ~
Congrnsmlm Cluy Shuw,jr. tliscus$ts his mm agl /O the lIation's youth.
Congress and America have to focus on it. We all need to know
how the systc!m works.
RF: Some Republican naysayers warn that Democrats have his
torically politiciu d and dcmagogued proposals for Social Secu
ri ty refoml with o\·erwhelming political success. In your own
Congressional class of 1980, 26 Republicans lost their seats in
1982, in part due to Social Security attack advertisements. If
Social Security is acmarially sound unci12034, why touch the third
rail of politics in 2002?
Congressman Shaw: For two reasons. First, I disagree that the system is actuarially sound until 2034. We will no longer be able
to pay the benefits with the FICA tax beginning in 2016.
Now, there are those that say all you have to do is turn in the
treasury bills because that is what they arc for. But how are you
going to payoff the treasury bills? The federal govern ment is
going to have to do it. So we will have to raise taxes to pay for the
benefits, cut the benefits or go back in the red and borrow money.
Starting that year, we arc looking at a deficit of 520 trillion that will span from 2016 until 2075. That is what we can
avoid. That is why we should act now and the solution is
individual retiremen t accounts. If we start puning money into
them now and Start getting the benefITS of private sector
investment, we can bui ld these accounts up so that we only
have a short period of deficit spending. Then the program
grows.
The program that J have devised actually runs a surplus
over the same period of time of over 520 tri ll ion. The legislation that former House Ways and l'Vleans Chairman Bill Ar
cher and I put together actually creates a 520 trillion surplus.
In existing law, there is a 520 trill ion deficit . T hose are huge
figures. But we have to start now. The longer we wait, the
more difficult it witl be.
, RF: Other observers say reform of So
cial Security is long overdue and that
you and President Bush deserve credit for
making the long-term structural changes
that will strengthen and preserve the sys
tem. What has prompted you to rake on
this bold and challenging refoml?
Congress man Shaw: Newt Gingrich
originally asked me to take this on after I
fini shed welfare reform. I did not know it
go: \vas going to become my career in Con
~ gress, but it has. I took it on as a challenge.
j The more T looked into it and the more I 'l.; worked at it, the more I understood there
realiy was a solution out there.
h is going 10 rake a little bit of courage. I have one of the
"oldcst~ districts in the counlry as far as the age of my constitu-
ents. But we can preserve Social Securiry for them
strengthen it for their children and grandchildren. 'nd m
VITAL STATS: E. CLAY SHAW, II.
BIrth ..... April It. 1m
.... ..... 1icII PaIIIbII'hIooaphy. ItodoraII!
Hot Iuur. SociaIleclrity ....... , It.IJoodordaIt, Florida
"., "~ _." "'" "I. ~ ~( , 'f • . .. . OI!', .• •
, .
ho,'" 1IarrioII .. EniIit Cosrar; I doiWnn
I"WOIl: CadooIic
E ..... II"'" 1_ Uoi.onIty. l.A. (1"1); UlIiuollity" Jlab l,lIJJ (IHI); 1_ UoiuoniIy,j.D. (I"')
Pu' nl.1III EIpwt ••• c..,. ,-,U.s. _If.. ...... IIIMs(I~lt. hql',.."""'(1m.II);
It. ... 1,,.. 'fiIHIIJor (1ffl.15J; r.n I '"" CiIr C, •• io""" (1971-73); ProaiaIc..., (1"""1; It. .... nolo 0i0I ........ (IHI-6tJ; AaocioltlllooiciP JooIIt (1"'-71).
Web Mha: .............. ,....,
Ripon Forum • Summer 200 I
New Democrats Move to the Middle The D emocratic leadership council discusses
its strategy to redefine the Democrat Party
By AI F.-om
eforming a political party gives
new meaning to the Democrat
and Republican Party mascots,
the donkey and the elephant.
Like tryi ng to
lead a stubborn donkey or an elephant that doesn't
want to budge, it isn't easy
to move a political party.
The national parry had clearly lost its
way. Rather than giving up, New Demo
crats formed the Democratic Leadersh ip
iog considerable res istance, the OLe
bu ilt a modern, progressive Democrat
Parry that tackled America's challenges
through modern means and fresh ideas.
For more than 15
years, New Democrats
have pushed and pulled
our donkey party back
into the political main
stream. We had to, out of
political necessity.
In 1984, the party of Franklin Rooseve lt ,
H arryTruman and John
Democratic Leadel'sh~ Council
The resuh:Just eight
years afte r the 1984 de
bacle. Bill C linto n ,
fo rmer chair of the DLe and leader of th e New
D emocrat movemen t ,
won the White House.
I n 1996, he was re
elected. It was the fi rst
time in six decades that
a D emocrat retained the
presidency.
Because his political
success was built on his
New Democ rat ideas,
C linton's victories redeKennedy and the party
that led Amenca to most of its economic
and social progress in the 20th cen tury.
lost 49 states. By 1992, it had lost five
of the last six presidential elections . and
most experts said it would not win the
presidency agai n in the 20th century.
Ripon forum • Summer 200 I
Council and set out to rebuild the party
by redefining it. We believed if we stood
fo r good ideas that con nected with the
everyday needs of the American people, voters would once again turn to Demo
crat s for national leadership. Qverco m-
fined the party. When, after some early setbacks, he put those ideas into action,
he reinforced the new definition of the
Democrat Party and dearly put it in the
vital center of American politics. And
because the movement is grounded in
25
\
ideas, it will survIve Vice Presid en t
Gore's fai lure to win the presidency in
the 2000 election.
REFORMING A NATIONAL PARTY What arc the lessons that can be
learned about reforming political parties from the New Democrat ex peri
ence?
Firs t, in the American political system,
parti es are defined during th e
presidential nomination and election
process. Unlike a parliamentary system,
American parties don't hold conferences
to determine party policy. To most voters,
the parties stand for what their presidential ca ndidates stand for. New Democrats
understood that when they changed the
DLC focus in 1989 from a fo rum debating
new ideas to forgi ng a winning agenda for
a New Democrat presidential candidate.
Second, real reform requires a moti
vating factor. Sometimes it's a national
crisis, like the Great Depression was for Franklin Roosevelt. For New Democrats,
the factor was consistent electoral
Ronald Reagan fllied that role in 1980. For
us, it was Bill Clinton. He was the mes
senger and the marketer of our movement.
Clinton took our ideas into the presiden
tial primaries, and by winning the nomi
nation and the election - and then by
governing as a New Democrat, he rede
fined our party.
Though the DLC was formed in
1985, it really intensified its effortS to re
define the Democrat Party four years later.
The 1988 presidcntial election was a ter
rible disappointrnclH to all Democrats, but
it \VlI.S especially difficult for party reform
e~. Not only did we lose an eJection we expected to win, the 1988 campaign was
eerily reminiscent oflosing Democrat cam
paigns during the nvo pmoious decades.
TAKING ACTION So in 1989, the DLC adopted a four
part strategy to change the Party. Stage one was ~reality therapy." It was an hon
est assessment of why Democrats were
consistently losing elections. This seems
Michael Dukakis won a higher percent
age of self- identified DemocratS in 1988
than Jimmy Carter did in 1976. In fact, in some polls he won a high er percent
agc than Lyndon Johnson did in 1964.
It was clear that Dcmocrats could no
longer win the White House by on ly turning out the base. We needed to re
define the Party to cnsu rc hard work
ing, middle class Americans were nOt
fecling left behind.
T he need to redefine the party led
New Democrats to stagc two of the
stratcgy: The development of a new phi~
losophy. In 1990, wh en Bill Clinton took over as chair of the DLC, we is
sued Tht N tw Or/tlms Du /arolion, a
simple philosophical statement that told
vOters what we stood for. We sa id we believed that "the
promisc of America is equal opportu ~
nity, not cqual outcomes", that ~ thc pur
pose of the Democratic Party is to ex~
pand opportunity not government,~ that
"econom ic growth is the prerequisite for
defeat threatening the national
party's very survival.
Third , reformers need a
clear strat egy and a single
minded purpose. Our strategy
was to offer modern means that
"Not only did we lose an election we expected to win, the 1988 campaign was eerily reminiscent of losing Democrat campaigns during the two previous decades."
furthered the party's traditional
principles and ideals. We knew that pur
suing that strategy would engender great
resist'.lnce from party regulars. But we took
the hits and kept goi ng forward.
Founh. ideas maner. New Democrats
believed that winning coalitions in the in
formation age had to be built around ideas
and nOt merely interest groups. Dcmo·
Cfats were losing because their ideas were out of touch with the hopes and aspira
tions of too many Americans. So we
shaped a progressive agenda that con
nected with ordinary Americans.
Fifth, a persuasive presidential can
didate is essential. For the conservatives,
26
elementary, but it is extraordinary diffi cult
to get a party to face the real reason it loses
elections. While we were roundly criti
cized for doing it, OLe findings were criti
cal to charting a new course.
We discovered that Democrats were
losing because too many of the very people
New Deal and New Frontier policies
helped move into the middle-class were
voting Republican. In 1988, voters earn
ing between 520,000 and 550,000 a year
voted Republican by better than a 5-4
margm.
We were also losingbccause the num
ber of Democrats had shrunk dramatically.
opportunity fo r all," and that "despite
the fall of communism, the world is still
a dangerous place." To most people
those weren't earthshaking beliefs. But
for Democrats, they werc redefining
statements because mos t Am erican s
di dn't believe Democrats bel ieved in
them.
Stage three of our strategy was the
development and articulation of specifi c ideas that turned the new philosophy into
a full -fledged governing agenda. The criti-0 1 moments came in the 1991 conven
tion in Cleveland, when with people rep
rcsenting all 50 stares, we passed a set of
Ripon forum • Summer 200 I
resolutions detailing our new governing
agenda.
The N rw Choice resolutions offered
a set of progressive policy proposals groundcd in mainstream values that chal
lenged liberal Democratic orthodoxy. It took on tough issues, calling for fiscal
an insurgent party faction. Most Demo
cratic leaders still opposed us.
TESTING THE MESSAGE Despite the oppositio n, New
Dcmocrats believed that rank -and
file Democ rats and most Americans
tion of the party just by putting his New
Democrat ideas into action. But over the
course of his eight years in office, he did
just that. The result is a radically rede
fined Democratic Party.
Today the Democrats stand for eco
nomic growth not just redistribution, for fi scal responsibility nor ~ tax and
"In retrospect, the Cleveland Convention may have been the most important event in the resurrection of the Democratic Party. But at the same time it was an anathema to many important Democrats. The Reverend Jesse Jackson came to demonstrate against the DLC. Liberals led by Iowa Senator Tom Harkin and Ohio Senator Howard Metzenbaum held a counter conference."
spend," for work not welfare,
for prt.'venting crime and pun
ishing criminals not explaining
away their behavior, and for
empowering not bureaucratic govemment. ll1at'sstarklydif
fercnt than the way the party
was defined a decade ago.
Despite our fail ure to win
the White H ouse last year,
there is no going back. The
New Democrat movement is
growing, and in city hal ls and
state legislatures across the discipline, welfare reform, national ser
vice, public school choice, cha rter
schools, and legislation like the Brady bill
when the Democratic lead ers of both
houses of Congress were sti ll opposed
to it. T 11 retrospect, the Clevc\and Con
vention may have been the most im
portant event in the resurrection of
the Democratic Party. Bu t at the time
it was an anathema to many impor
tant De mocrats. T he Reverend Je sse
Jackson came to demonstrate against
the O LC. Liberal s led by Iowa Sena
tor Tom H arkin and Ohio Senator
H oward Metzenbaum held a counte r
confe rence. Members of the United
Auto Workers protested ou r NA FTA
position. Even moderate Democ rats
in the House lectured me about poi
soning their relati onships with key
interest grou ps.
When the convention was over, Bill
Clinton and the DLC had outlined a
radically redefining agenda for Demo
crats. But it was still just an agenda of
RifXlO Forum • Summer 200 I
would suppo rt the agenda if they were
given the opportunit y. So after
Cleveland we moved to stage four of
our strategy: M ake the New Dem o+
crat agenda th e defining Democra t ic agenda by testing it among vote rs in
the Democ ratic primaries.
That's exactly what Bill C linton did . Calling it [he New Covenant,
C linton put the New Democrat
themes of opportunity, responsibi lity,
community and the agenda we developed
at Cleveland before voters. Despite a few
bumps along the road, C linton won the nomination, and the New Democrat
philosophy and governing agenda
redefined the Democratic Party.
Just a year after the tumultuous Cleveland Convention, a united Democratic
Parry ratified a New Democrat platform and nominated a New Democrat candi
date at its convention.
However, we learned soon enough
after the 1992 election that it would be no
easy endeavor for Clinton to overcome
party resistance and cement the redefin i-
country, New Democrats arc emerging as
the Party's most dynam ic leaders.
T he New Democrat Coalitions in
both the U.S. House and Senate are fast
becoming the largest and most important forces in their respective caucuses.
New Democrat governors have re
claimed statehouses in California and
across the South fro m Mi ss iss ippi to
North Carolina. There is not one
Democratic governor who docs not gov+
ern as a New Democrat.
Just a small insurgency fighting for
survival a decade and a half ago, New
Democrats now define the Party and have
put it on the prec ipice of becoming
America's m~ority party agai n. Best of
all, the movement is still young with
its best years ahead.
AI From is the founder and chief exeruti'lJe
o/JiuroJthe Democratic Leadmhip COllneil
(DLC), (UI idea action center 0/ the ~Third
Way"gO'lJem/ngphilosophy that is reshaping
progressive politics in the United States and
(lro/lUd the globe.
27
Medicare Reform: Still Time To Get It Right by nebnrah Steelman, Vicc I),"csidcnl , Co'"pOI"a le Arrai,"s, 1\li tilly and Company
ece nt s ignals from some in
Congress suggest thai what was
once an in spiring agenda for
modernizing Medicare is being
whi ttled down to a single isslIc
how to add a prescription drug benefit. If
a stand· alonc prescription drug benefit
passes, Medicare will f.'lCC a bleak future.
The lack of outpatient drug coverage is
unquestionably an enormous shortcoming,
but we must not luse sight of the fact that
it is by no means Medicare 's only major
one.
HalfWay me:l.sures hold the limelight
today: block !,'Tanrs, a variety of drug-only
insurance bills or drug-only add-ons to the
current outmoded program. But these
measures sati sfy neither fcal need nor political imperative?
The future can be different: com
prehensive coverage can be available to
all seniors at less ri sk to the taxpayer and
to seniors than posed by the current pro
gram.
28
The current system is notoriously,
almost maniacally, convolul'ed and com
plex. According to the Mayo C linic, the
rules and regulati ons promulgllted by
H eFA over the years now run to morc
than 100,000 pages- much more ma s
sive than the (ax code an d arc beyond
humans capacity for compliance. Yet
providers mu st do everything in their
power to comply, because it is these rules that specify what procedures will be re
imbursed as ~medically necessary. ~ The
claims review and appeal s process for
denied coverage is ridiculously long -
524 days, on average, from initiation to
completion, according to the Heritage
fmllldation - and claims arc rcjccu:d
more frequently in Medicare than in pri
va te health insurance systems.
Almost all M edicare providers can
furn ish stories of Kafkaesque encoun
ters with HefA. One note in PhYJicians Payment Update will have to stand for
thousands. H C FA has told Medicare
contractors that any time they receive
an unsolicited, voluntary refund check
from 11 provider or supplicr, they must contact He FA. Specifically, the contrac
tor must:
find out why the refund check was cut.
find out how the payment problem was
identified by the provider.
find out why the incorrect bill was origi
nally submitted.
take corrective steps to prevent similar
errors from happening. Yet for all this, Medicare has a higher
fraud fate than private insurance plans.
Medicare is ful l of holes in irs cover
age of the most serious medical needs.
again falling short of commercial stan
dards. T he lack of drug coverage is ex
hibit A, but the re is more. M edicare doesn't cover non- rehabilitative long-tenn
care, catastrophic expenses, many preven
tive care services or dentistry, hearing aids
or glasses. Medicare does not cover cho
lesterol screening even though cardioV'.lscu-
Ripon Forum • Summer 2001
lar disease is the leading cause of death in
the United StatC$. These necessary services
are routinely covered by commercial and
employer-sponsored private health plans.
Once you add Medicare's stiff COSt
sharing (what worker pays 5776 the first day he or she must be admitted to a hos
pital?), Mt:dicare turns out to be something
far less than the comforting securityblan
ket we all want for seniors. On average,
about 22 percent of the typical senior's
income is spent on health services not cov
ered by Medicare.
The program is economically unsound
as well, full of contradictory incentives
and unworkable controls. The copays
and deductiblcs private insurance uses to give
beneficiaries some sense of oost-consciousncss
arc hopelessly anachronistic in Medicare.
Medicare's hospital deductible totals about
92 percent of the average beneficiary's
monthly Social Security benefit! What
reasonable person wouldn't insure against
thi s throug h Medigap o r other
supplemental insurance? But at the other
end of the spectrum, the annual deductible
for Part B, which covers physicians and
many outpatient services, is so low it begs overuse. And eve n thi s deductible
disappears once the sensible seniors has
pu rchased the in surance necessary to
protect agllinst the catastrophic potential
of a hospital admission (federal guidelines
dictate the design of M edigap policies.)
Medicare has no sensible coverage
and utilization incentives. Medicare docs
not help beneficiaries navigate the spectrum of health care therapies and alterna
tives. Medicare has no way to discover and
pu rsue the treatments that offer the best
value for the monC)'. Instead, the program
relies on component cost management price
controls to try to keep spending in check. The inevitable effect of such measures
is to depress the supply of goods and ser
vices under the controls, thus reducing the
quality of care offered to seniors.
Medicare's payment rates arc not up-
Ripon Forum • Summer 200 I
dated at intervals
that reflect the
adoption by physicians of the best
and latest medical
technologies, and doctors and hos
pitals must adjust
the mix of services
they provide to
compen sa te for
payments that do not adequately re
flect cost. As a re
sult, patients may
receive older and
cheape r care
rath er than th e
best available care.
As one con
sequen ce of thi s
approach, the time be tween a
new medi ca l
device's approval
for medica l use
and its acceptance
by Medi care can
be be tween 15
months and 5
years. Further, because some devices must
be approved by M edicare on a region-by
region basis, the same technology may not be available nationwide.
The same impediments stand in the
way of other medical innovations - new
surgical procedures and new drugs for hos
pital usc. If the same principles were ap
plied to a new outpatient drug benefit, the
value of that benefit would decline steadily
and rapidly.
Nledicare routinely tries to impose
static comrols on a field undergoi ng dy
namic change. This inflexibility is perva
sivc and without a doubt constitutes the
greatest weakness of the M edicare sys
tem over the long term. It is almost pur
posefully anachroni stic. And, in this
case, the fl aw transce nds even the best intentions of )-IC FA's managers - any
major change in Medicare requires an act
of Congress.
Of course, there is a school of thought
that holds that erecting barriers to new
technology is desirable and necessary. For
example, the eminent health econom ist
Victor Fuchs attribUTes the steady growth
of health expenditures almost exclusively
to the development and deployment of
new technologies. Therefore, he argues,
"the most importatu strategy for slowing
that growth is to slow the development and
diffusion of new technology."
This Luddite th inking will not be
supported by our society. In addition, bio
medical innov-,nion is our only hope of
29
bringing down the high cost of treatmen!
and the far higher cost of d isease.
In the case of pharmaceuticals, there is
a growing body of evidence to support that
view. In a landmark 1997 study of the trcat
men! of heart attacks l , researchers demon-
government spends our taxes on that can
even come close to that kind of value?
In any case, it should be clear that,
quite apart from its lack of drug cover
age, Medicare today is now discon
nected, uncoordinated, inadequate, ex-
pensive, and unrespon
"Medicare routinely tries to impose static controls on a field undergoing dynamic change. This innexibility is pervasive and without a doubt constitutes the greatest weakness of the Medicare system over the
sive. And any attempt
to add drug-only cov
cngc to this structure
is like adding a new
fl oor on a building with
a crumbling founda -
tion.
We can do better.
My background in
Medicare date s back
over two decades to my
years working for the
late Senator John long term."
strated that the incremental benefit of pre
scribing cardiovascular drugs cxccedl..-d the
incremental costs. Using that data to com
pute a "cost-Qf-living" indo: for heart at
tacks, they showed that the indo: had actu
ally been declining at an annual rate of 1.1
percent. Their conclusion is worth quoting:
~Rf!{ei'C)ing more in improvtf/ health
than we pay in treMment costs implitSlhal
medical care is a more productive in'INstmfnl
than Ihe average uu for our funds outside
Ihe mldi(DI u(lor. And it implils thaI a
true (ou-0l-living indlx for hlart attack
(are- a pri(l indexfor heallh after a hlart
attack - is falling over (ime, whereas (on
venlional medical care price indexes have
suggested a rapid riu."
More recently, Columbia University
economist Frank Lichtenberg has docu
mented a similar cost/benefit return for
pharmaceutical innovation in gene ral.
H e calculates that ou r nati on's total
spending on new pharmaceuticals from
1970 to 1990 has produced a benefit to
society equivalent to a 40 perce nt return
on investment. Is the re anything else
30
Heinz.. H e was a pas
sionate believer in
Medicare as a foundation fo r seniors'
health and income securi ty. My term
in President Reagan's OMB taught me
that M edicare can be run more effi
ciently by changing the way we buy ser
vices. During my service on the Medi
ca re Commission chaired by Senator
John Breaux and Congressman Bill
Thomas, I leamed that there is a better way
to manage Medicare, a way to improve ben
efits, reduce costs, and reduce administra
tive hassles f-or providers.
Recently, I joined Eli Lilly and
Company, a 125-year-old company
that produccs, among other miracles,
the insulin that has kept millions from the
dread effects of diabetes. We also discovered
and brought to market breakthrough drugs that have helped millions of people through dle slog
of depression and the disability of
schizophrenia Ourinnov.ltion \vill expand the
horizon. of producti\'C life in a multirude of uralS
for millions of people for years to come.
Although now ridd led with difficul
ties, let us not lose sight of the fact that
Medicare's contributions to the way we live
now is enormous. 1t is the reason we have
the world's best hospitals. the world's most
well-trained physicians, and in short, the
world 's best health care. This program is
worth investing in. We will spend more
to maintain and improve it, and we will
spend more to cover necessary benefits like
pharm aceuticals. As Republicans, we
need to acknowledge this, and we need
to lead the way in Medicare reform so
that we are get more fo r taxpayers'
money. As my mom says, gening old
isn't for sissies. But it isn't for spen d
thrifts o r micro-managers either.
There is no question that provid
ing drug coverage is essential and that
we will spend more of our tax dollars to
achieve this. 'We arc a society built on
the pursui t oflife, liberty and happiness
and dedicated to individual choice.
H ow will we finance the high quality of
health care in which we believe?
Certainly that answer is not found
through inc rementa l changes which
con tinues the current Medicare system
of centralized con trol and administered
prices. We will need the individual
choice and control, the aligned incen
tives and the efficiencies made possible
by comprehensive benefit packages ad
miniStered very differently than the way
Medicare is run today.
Comprehensive reform of Medicare
is the only lasting answer to the r.-I shortcom ings of the present system. W
Deborah Steelman is Vi(t Pm itient, of
Corporate Ilffairsfor Eli Lilly and Company
I "The Costs :Uld Benefits of lntcnsive T ~tmcnt
for Cardiovascular Disease," by David Cutler.
Mark McClellan (now a member of the Coun
cil of Economic Advisors in the White House
and one of the an:hiteca of the fOrthcoming
B"'" M"'= .dOnn ".,.,.,..I) '"" J"""h Neo.....oouse, in Mtasuring fix PrUts o/'MttlitaJ
Trratmmts,Jack E. Tripplct,ed .. Brookings In
stitution Pn:ss, 1999.
Ripon FOI'lJffi • Surrvncr 200 I
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