North Carolina Newspapers

Monday, August 29, 1983The Daily Tar Heel7D POLITICS '83-'84 A lot of money, no candidates . . yet By KELLY SIMMONS u Gov. Jim Hunt A little more than one year remains before the 1984 Senate election, but Sen. Jesse Helms and Gov. Jim Hunt are off and running, spending a great amount of money along the way. Neither party has announced an official candi dacy in the 1984 election. In fact, neither party will even acknowledge an active campaign. But from April 1 through June 30 of this year, the Helms for Senate Committee spent an average of $52,061 a week on campaign costs. The Helms re-election committee placed 3,937 advertisements criticizing Hunt and praising Helms in 167 news papers; 25,542 advertisements on 100 radio stations and 353 commercials on 15 television stations from April through June. The now defunct North Carolina Campaign Fund spent $724,000 for advertisements and mail ings directed against Helms, without promoting Hunt's name, during the time it was in existence. John Bennett, a Hunt political aide, said the Hunt Committee expects to spend about $5 million before the fall election. Hunt supporters have pre dicted that Helms will spend $14 million on the 1984 campaign. Out-of-state contributions to both funds have lined the "pockets for campaigning this summer. Eighty-three percent of the contributions of $1,000 or more are from out of state on the Hunt side and about 56 percent of the contributions of $1,000 to $5,000 to the Helms campaign are from outside North Carolina. Helms' ads, which ran in small daily and weekly newspapers across the state, criticized Hunt. In return, a Hunt press secretary, Brent Hackney, called the ads "sleazy." And the Helms committee removed the ads. Anti-Hunt ads in North Carolina newspapers have connected the governor with liberal leaders like Chicago Mayor Harold Washington, Sen. Ed ward Kennedy, D-Mass., and the Rev. Jesse Jackson. One ad criticized Jackson's drive to register more black voters in the state. Hunt's aides have called the ads racist, but Helms supporters argue that they are necessary to counterattack the liberal attack on Helms. At either end, they are both fighting a battle which neither will admit has begun. Besides the extravagant amount of money the two camps are spending, both have received sup port from religious leaders during the past several months. In July, the Rev. Jerry Falwell made several stops in the state to promote Helms. "If for some reason a determination were made that we're going to have a benevolent dictatorship and only one person could run it I don't want that, never going to have it I wouldn't have to think twice. I'd say Jesse Helms," Falwell said in a Charlotte conference of lay people July 5. Falwell said during his voter registration drive that he hopes to increase N.C. conservative voters by 200,000. Falwell' s voter registration drive began six weeks after Jesse Jackson, president of operation PUSH (People United to Serve Humanity) started his North Carolina crusade to register 250,000 Southern black voters in the state before the 1984 election. However, Falwell said his registration drive was not in response to Jackson. Religion, race and money are going to play ma jor roles in the 1984 race, but, as of yet, negative campaigning from the Helms camp has not af fected a strong Hunt lead. A Charlotte Observer poll released this summer said that Hunt would defeat Helms if the election were held now. Hunt supposedly leads Helms 50 percent to 31 percent among all residents in a statewide survey. He holds his strongest lead among black voters 73 percent to 9 percent over Helms. The poll reports show that Helms leads Hunt only among those who think Reagan has done a good or excellent job, among registered Republicans, voters in large towns and in house holds with incomes between $25,000 and $30,000. Democrats outnumber Republicans 3 to 1 in the poll. Hunt's spokesman, Gary Pearce, said he was surprised that the Hunt camp held such a domi nant lead over Helms because of the negative ad vertising the Helms committee has been running against Hunt. However, Hunt's support is steady throughout the state. He holds the lead among blue and white collar workers and among those highly educated as well. The support on both sides will grow, and the media costs will mount. With 15 months to go before the fated election, Helms' expenses are already approaching the average cost of an entire Senate campaign in 1982, which was $1,746,230, according to the New York Times. Helms ran the most expensive campaign in history in 1978, spending almost $7.5 million to defeat North Carolina Insurance Commissioner John Ingram. He won that race. Just goes to show you what a little money will do for you. And there will be a lot of it in this race. But, of course, no one's in the race . . . yet. Kelly Simmons, a junior journalism major from Reidsville, is an editorial writer for The Daily Tar Heel. A student's town By JOHN CONWA Y They decide what the level of taxes and services will be for residents. They decide how much development should take place, in addition to the location and type. They decide where roads should go. Why do so few people seem to take interest in what they do? They, in this case, are members of the Chapel Hill Town Council. The problem of voter apathy is not unique to Chapel Hill, but in a well educated community such as this, voter interest and participation should be much greater than that recorded in i the past' "" '" 'V1 In the 1981 municipal elections in Chapel Hill, only 31 percent of the registered voters went to the polls. In neighboring Carrboro, the voter turnout was only 6 percent better. Student interest in municipal elections is even more dismal than that of permanent residents. Although there are no statistics available, town officials estimate that less than 10 percent of the University's 22,000 students vote in local elec tions. This would be understandable if students had no stake in Chapel Hill. But for most, Chapel Hill becomes home. And the decisions that local elected officials make have a definite impact on students' lives in Chapel Hill and Carr boro. With local municipal elections less than three months away, some candidates are already mak ing formal and informal announcements of their candidacy. And there will be some issues in this election which will be of special interest to students. Almost every present member of the Chapel Hill Town Council believes that density and development will be key issues in this year's elec tion. "If there's a single issue, it's growth and how to manage it," said Jonathan Howes, an incum bent on the council who is expected to run again this year. "Many people feel that growth is changing the community for the worse." The development dilemma centers on the ques tion of density how many people should be allowed per square foot in Chapel Hill. Neighborhoods with single family dwellings generally oppose the nearby building of high- density apartment complexes and con dominiums. With the student population at the University continually increasing each year, there will be a need for high-density, low- to moderate-income apartments. The Town Council makes decisions regarding density and development, and the stu dent body can make its voice heard by voting in the local elections this fall. Another issue of student concern that the council will be acting on is the thoroughfare plan. Most students probably don't even know what a thoroughfare plan is, let alone what it proposes. Some of the proposals of this plan include the j. one-way pairing of Franklin and Rosemary Streets, widening of the U.S. 15-501 Bypass and extending Pittsboro Street, which would require the removal of the Kappa Alpha Fraternity house, as well as the relocation of portions of other downtown buildings. All this has a definite impact on the University community. Yet how many students will vote in the November elections to show their concern? Any student who has a car in Chapel Hill knows that parking is a problem. The Town Council is now considering a proposal to con struct one, or possibly two, parking decks on Rosemary Street. The proposal has come under strong fire from residents who believe the parking decks would destroy the attractiveness of the downtown area. Issues like development, road plans and park ing confront Town Council members each year. But students can't seem to take a few minutes out of their days to register and vote. This year, Student Government, along with the Elections Board, will make a concerted effort to get students to register to vote. Hopefully, they will make student voter registration more con venient. It's well worth the time to become acquainted with candidates in this year's elections in Chapel Hill and Carrboro and to learn where each can didate stands on student-related issues. That way, if the council votes to raise transportation costs or limit apartment construction in Chapel Hill, students will have a right to complain. John Conway, a junior journalism major from Cumberland, Md., is city editor oj "The Daily Tar Heel. Field of contestants grows, but issues are secondary By CHRISTINE MANUEL The governor of North Carolina is ranked among the weakest ten governors in the nation, according to "Politics in the American States." But there are at least 10 well-known politicians in the state who are fighting for the job, which goes up for grabs in 1984. .When Jim Hunt leaves his post as governor after eight years, his heir will have the opportunity to. shape North Carolina politics well into the next decade. Hunt has established the office as a powerful force across the state, largely because Hunt was the first governor in the state's history to succeed himself. Hunt says he will remain neutral throughout the up coming campaign, but the 10 contenders are now scurrying to gather support from around the state. . The most interesting development in the race is, for an unusual twist, on the Republican side. For the first time in recent history, it seems there will be a real fight for the Republican nomination. U.S. Rep. Jim Martin of Davidson will give up his secure seat in the House to run for governor and has strong support in the Pied mont and west. He is rather conservative, yet is in dependent from the National Congressional Club, an organization begun by Sen. Jesse Helms. The Congressional Club, which concentrates on na tional elections, has dominated the Republican party in the state almost to the point that the Club is indeed the party. But now Martin has a chance to strengthen the Republicans so that they may truly become a major force in state politics. North Carolina has for too long had a one-party Legislature, and seeing a strong Republican party on the state level can only be good for state government. But the Congressional Club does not seem ready to unlock its grip on the Republican party. Last week, Bill Cobey, former UNC athletic director and candidate for the U.S. House, announced that he may run for governor. In his unsuccessful race against Rep. Ike Andrews, Cobey was strongly backed by the Congres sional Club. He also ran against Lt. Gov. Jimmy Green in 1980, giving him experience in organizing a statewide race. A conservative who campaigned as a family man, Cobey still remains close to the Congres- Urging economic awareness fis fs!v -r- X v.o:-, w ( 1 L ft i i h mi Sen. Jesse Helms sional Club and has already received the Club's en dorsement for governor. The third Republican considering entering the race is State Sen. Cass Ballenger of Hickory. Ballenger has had the most experience in state government of the three Republicans, having served five terms in the Senate. He has been quietly campaigning for the Republican nomination for almost a year, but still does not have the statewide prominence of the other two candidates. But Ballenger has wide , contacts , "among the state's Republicans. , . , , , ,, . a, There have also been reports that Martin supporters have urged Ballenger to leave the race for the sake of a strong Republican Party. If Martin and Ballenger split the traditional Republican vote, the Congressional Club will surely keep its hold over the party. The Democratic side is no less complicated. The race is already congested and the party divided. State Attorney General Rufus Edmisten holds the best position of the seven democrats. One poll in June showed that 28 percent of the state's Democrats favor Edmisten, making him by far the leader. He also has an impressive organization and statewide visibility. As the state's chief law enforcer, he has been in the limelight announcing drug busts, consumer protection laws and other popular causes. Political analysts have said they think Edmisten is almost certain to end up in a run-off facing either state Insurance Commissioner John Ingram, Charlotte Mayor Eddie Knox or former " state Commerce Secretary D.M. "Lauch" Faircloth. Ingram, who ran against Helms for the Senate in 1978, has gained statewide noteriety in recent years. He is a maverick among the state's Democrats who frown on his unpredictable style. Ingram has little organization and has trouble raising funds, yet he has a loyal group of supporters whom he can count on for the 1984 election. Knox has served as Charlotte's mayor since 1979 and has also served as a state senator and chairman of the state Advisory Budget Commission. Knox is cur rently courting the black vote, by supporting black Charlotte mayoral candidate Harvey Gantt. Although Gantt has in return supported Knox, their en dorsements seem strained. Gantt and Knox bitterly ran against each other for mayor of Charlotte in 1979. Another problem Knox faces is financial support within the Charlotte area, his stronghold. With Martin in the race, many conservative Charlotte businessmen are giving their support to the Republican. And being from Charlotte doesn't help him around the rest of the state. Political analysts have noticed that voters in most states are wary of candidates from the state's largest city. Faircloth, one of the best fund raisers in the party, is a wealthy Clinton businessman who is quickly find ing support among the state s conservaUye Democrats and busihessmen? AS i Hunt's 'C&rnmerce Secretary, he brought many hew'jbbs to the siate.'AIthough he has remained close to Hunt, Faircloth does not have state wide recognition and has never before run for any political office. He was also an aide to former N.C. governors Terry Sanford and Bob Scott. Thomas Gilmore of Guilford County was the secretary of Human Resources during Hunt's first term. A sincere politician who campaigns for a more open state government, Gilmore is considered only a longshot to win. However," he does have considerable strength in the Greensboro area. Former Superior Court Judge Lacy Thornburg resigned his post in March to run and was first to of ficially announce for the office, but he still remains a relative unknown. Thornburg, who is from Sylva, is running strong only in his native west, and may carry many mountain counties. Only a few months ago, Lt. Gov. Jimmy Green was almost a sure candidate for the governorship. But the two-term lieutenant governor was indicted on bribery and conspiracy charges in June and awaits trial. Green has denied all the allegations, but his political future still seems bleak. He was low in the polls even before his indictment. Green does have strong supporters who have been loyal to him throughout his legal prob lems. There you have it the field of contestants. And if you noticed that issues seem to be secondary in this election, you may be right. For now, who will be North Carolina's next governor depends more on fund raising, regional support and unified parties. So much for issue politics. Christine Manuel, a junior journalism and political science major from Fayetteville, is state and national editor of The Daily Tar Heel. By CHARLES ELLMAKER "High federal deficits? That's bad. (Isn't it?)" Perhaps. "The dollar's getting stronger in Japan? ''Good. Now's the time to buy that new Datson. " Not exactly. "The U.S. Government owes over $1 trillion? Why doesn't the Treasury just print more money?" OK. Much of the national news each day focuses on the U.S. economy. Financial buzz words like "prime rate" and "Ml" are heard frequently, but seldom understood. . t Many Americans have lapsed into economic il literacy, feeling secure in giving automatic, safe responses to what they're sure is bad or good, and certainly politically influencing, economic news. Citizens find it easy to criticize economic decisions made by key office holders, especially President Ronald Reagan, because they feel safe in following the lead of more knowledgeable critics. Of course, everyone cannot be as knowledgeable as economists about the financial matters of the country, so they must rely on those "in the know" to supply them with competent information. Still, Americans should have a rudimentary knowledge of how the American economic system runs and should hear arguments from both critics and ad vocates of economic policies before making up their minds about high-level decisions. Many Americans have no concept of the possible effects of high deficits on the economic well-being of the country. Or how exchange rates affect the balance of trade and American buying power over seas. Or how the money supply can influence the rate of inflation. Ironically, even a basic knowledge of economics may not be enough in this case since economists constantly argue about the effects of such factors. There are no clear-cut answers to economic prob lems." Case in point: Many economists believed that recession and inflation were opposing forces. They were baffled by the recession of the early-to-middle seventies when the economy slowed to a crawl and inflation soared to double digits. Now economists are debating the effects of high deficits. While most agree that in the long run high deficits cannot continue, they still disagree over whether they will significantly affect the amount of loan money available to the private sector. Since the government borrows from private sources whenever it spends more than it collects in tax revenue, many economists believe that the money being invested in the federal government will not be available for private lending, effectively shut ting out the private sector from loan money. The result would be high interest rates and a sharp decline in economic activity: a recession. Federal Reserve Board Chairman Paul A. Volcker created such a situation soon after his ap pointment by former President Jimmy Carter by artificially raising the interest rate the Federal Reserve banks charge private lending institutions. Banks and other institutions subsequently raised their rates to individual and corporate borrowers. Since few could afford to borrow money at in flated interest rates,' business activity slowed dramatically, causing massive layoffs. Still, Volcker's strategy worked to drastically reduce the inflation rate, his primary goal. The Reagan administration has been panned for record deficits over the past two years, and much of the blame for the recession was placed with Reagan. Yet, Volcker's tight-money policy certainly in fluenced the recession and the subsequent drop in inflation more than supply-side economics. Thus, give credit where it is due. Reagan didn't create the recession, but then again he shouldn't take credit for what has been a Federal Reserve orchestrated recovery, either. Probably the most significant contribution Reagan could have made toward a sound fiscal policy was his reappointment of Volcker as chair man of the Reserve Board. Reagan knew a good thing when he had it, and his pragmatic decision to reappoint Volcker despite Volcker's original ap pointment by Carter has been lauded by Republicans and Democrats alike. Volcker has now lowered the Federal Reserve lending rate sufficiently to allow banks a freer hand in their lending policies, spurring constant, but cautious, growth in the economy, and while most economists agree that the huge deficits accrued by the Reagan administration's tax-cutting and in creased defense-spending measures are not now in fluencing significantly the amount of borrowable money left to the private sector, some economists warn that sustained high deficits could crowd out private borrowers in only a few years. And Volcker remains cautious about a too-fast recovery that could propel inflation back near dou ble digits. His move to raise the Federal Reserve lending rate one-half of a percentage point shows his commitment to holding inflation down by limiting money supply growth. Unemployment, once at post-war levels, has shrunk slowly as corporations remain cautious about increasing productivity, and thus manpower, until they can be sure that the recovery will be sus- tained. Since Volcker is continuing his successful cam paign against inflation, it is up to the Reagan ad ministration to guard against allowing deficits to swallow up funds needed by the private sector to drive the expanding economy. With the economy a key issue as the 1984 presidential campaign approaches, it is vital for voters to base their electoral decision on sound economic awareness. Although shades of gray abound when determining who caused what in the economic arena, greater awareness of the how's and why's of the economy can help ensure that voters will know what to expect through 1988. Charles Ellmaker, a senior English and jour nalism major from Orange Park, Fla., is a stqff writer for The Daily Tar Heel. 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