Editorials & Comments
Wanted: A New Economy
There is a growing belief in
America that the conventional
conservative rhetoric about too
much government, particularly
from the "New Deal" of the 1930s
through the "Great Society" of
1960s and beyond, can no longer
supply answers to the complex
problems faced by what is called
the "free enterprise" capitalistic
system.
Ironically, conservative econo
mic thinkers have had difficulty
since the very beginning of our
nation's history in explaining
their so-called "free-enterprise"
system. The Founding Fathers -
the framers of the Constitution -
did not want freedom of trade,
the late historian Richard Hof
stadter has said. They had aban
doned classical economic think
ing and felt that failure to
regulate trade was one of the
central weaknesses of early
American political economy.
Furthermore, it was public
funds and public policy that
helped build the roads, canals,
railroads, establish protective
tariffs and provide bank and
corporate charters. In effect,
government intervention, or
more accurately involvement in
the economic affairs of the na
tion from the Colonial period
through the 1930s is a part of the
traditional political economy of
the nation because it is charact
erized by the paradox of the
emerging free market system
with the assistance of govern
ment which has been persistent
ly denied.
Myth Lives
This denial of the role of
government in helping to create
the free enterprise system un
doubtedly led Professor Michael
D. Reagon to write, "The myth
of a self-régulating, individually
operated free enterprise system
was exploded by the crash of
1929. It was formally buried by
the Employment Act of 1946, by
which it became the explicit
responsibility of the national
government to promote maxi
mum production, employment,
and purchasing power. Yet the
myth lives on."
The myth has survived Rich
ard Nixon's embrace of liberal
economic policies, the attacks of
Milton Fredman, the drift to
ward greater corporate mono
poly and the increasingly vague
utterances about too much go
vernment. The fact is, govern
ment's involvement in the eco
nomy beyond its constitutional
requirement - and thus the rea
son for its bigness · has been
brought about by both the activi
ties and demands of consumers,
organized labor and the business
community itself largely in ac
cord with the Employment Act of
'46.
For example, the nearly bank
rupt Chrysler Corp., the nation's
10th largest corporation, has
■ —— I
asked the federal government
for a loan guarantee of $1.5
billion. Part of overall plan calls
for the United Auto Workers to
make concessions of $203 million
in its new three year contract
with the firm. Chrysler would be
required to give its employees
$150 million worth of stock over
the four-year life of the guaran
tees. This too is nothing new
since through pension funds,
employees of American business
now own at least 25 percent of its
equity capital, which is more
than enough for control.
Chrysler's need to seek a loan
from the federal government
while at the same time charging
that government regulations
were the cause of its problems
brings to mind more clearly the
fact that big business, like big
labor, clings to an outdated set of
values that are incompatible
with today's reality.
iViurpiiy7s Foint
Thomas A. Murphy, board
chairman of another auto
maker, General Motors, said it
best in these words: "...we busi
ness people are not consistent in
what we say. Too often we rail
against foreign competition. We
oppose government handouts -
except those ($77 billion annual
ly) used to boil out (our) particu
lar companies or particular in
dustries. We are dead set against
controls on prices - but wage
controls might be worth a look."
Republican George (the son of
Henry) Cabot Lodge puts Mur
phy's point of view in clearer
perspective in his book, "The
New American Ideology." He
contends that the traditional
ideology of free enterprise is
disintegrating and that by cling
ing to this outdated ideology
business people and public of
ficials are failing to face reality.
A result of this failing has led to
the iuse of ineffective policy
decisions for the solving of some
of the nation's most serious
problems such as inflation, un
employment, poverty and the
energy crisis. Each of these has
serious implications for the eco
nomic well being of black
Americans.
It is unfortunate too that
government is guilty of failing to
face reality when in conflict with
traditional ideology. For
example, when the Federal
Reserve Board rasied the dis
count rates for commercial
banks in October to help off-set
the nation's inflationary problem
the President immediately told
the building trade unions that the
government not cause any loss of
jobs or slow down in their
industry.
The myth of free enterprise
and the reality of government
involvement in the nation's eco
nomic affairs should be enough
to warn us that we need to search
for a new economic ideology.
MUTUAL
AID
COOPERAT®,
7VMT/V71
Blacks Destiny In Own Hands
Brooks Praises National
Call For Education ( Kerhaul
A comprehensive re
port issued Wednesday by
the Carnegie Council on
Policy Studies in Higher
Education is a call for
major adjustment within
our secondary school sys
tem that all North Caro
linians must hea-," N. C.
Labor Commissioner John
C. Brooks said today.
Brooks praised the re
port particularly for ad
vocating massive efforts to
provide job training for
high school students.
"This study provides
much welcomed support
for my proposais that
tyorth Carolina high
jchools and private em
ployers provide apprent
iceship opportunities for 16
ind 17-year-olds," Brooks
laid of the 322-page report
Entitled "Giving'' Youth a
Better chance: Options for
Education, Work and Ser
vice."
The Carnegie study call
ed specifically for new ap
prenticeship programs for
16- and 17-year-olds, and
>ther work-study combina
ions for high school youth.
'College youth have been
assisted by federal initia
ives far more than non-col
egiate youth, and it is time
λ redress the balance,"
lie report said.
Brooks concurred with
he study's finding that
'failure to act poses the
langer of creating a per
nanent underclass, a self
jerpetuating culture of po
verty.
"For three years now, I
lave been referring to the
'icious cycle of poverty
hat is a way of life for
viorth Carolina families.
Current North Carolina
ugh school curricula and
7ETA youth programs are
nadequate to relieve suf
iciently this situation for
he future. What is now
teeded is provision for the
training in industrial skills
needed by so many of our
youth and wanted by so
many industries," Brooks
said.
"Citing these needs is not
intended to take away any
thing at all from the va
riety of scholarships, loans
and college work-study op
portunities which have
been made available to
college-bound students.
Such financial assistance
enables many students to
attain a higher education
than would otherwise be
possible," Brooks explain
ed.
Noting high unemploy
ment rates for minority
youth, Brooks reiterated a
proposal he first made in a
January, 1978 speech to the
Governor's Conference on
Balanced Growth and Eco
nomic Development, in
Charlotte.
iNorui Carolina must ae
velop a more logical and
comprehensive program to
ease the transition from
education to employment
for the full 35 percent of
youth who now do not elect
additional education or
training after age 16. I
recommend that 16- and
17-year-olds have the op
tion in their high schools of
participating in apprent
iceship programs certified
by the N. C. Department of
Labor (as are all apprent
iceship programs in the
state). The youth would
work for pay with a private
firm while receiving on
the-job training in such
high-skill crafts as mach
ine or automotive repair,
or tool-and-die making,
while continuing part-time
instruction in the high
school," Brooks stated.
"At age 18, the apprent
ice would transfer to a
community college or vo
cational institute to com
plete a high school degree
program and continue ne
cessary skill-related in
struction.
"By age 20, the apprent
ice could receive not only a
high school diploma, but
also certification as a jour
neyman craftsman. As a
journeyman, an individual
may earn well over $20,000
a year, in an occupation
that offers the reasonable
expectation of a secure
career for the future.
"This option would give
many 16- and 17-year-olds a
greater incentive to stay in
school, even if they do not
want to go on to college.
Upon completion of the
high school curriculum,
there wouldn't be just a
diploma and the prospect
of a low-paying job, if
indeed a job at all. Rather,
the graduate would have
learned specific skills and
be headed toward a satisfy
ing, productive and well
paying job," Brooks said.
Re-Enforcement
Of Living Witnesses
Sought
Dear Mr. Johnson:
Can you print an appeal
for help for me in the
CHARLOTTE POST?
I would appreciate the
re-inforcement of living
witnesses -- anecdotes, re
miniscences, impressions -
for a "Portrait of Langston
Hughes in His Own
Works," of those who knew
him, met him, were influ
enced by, and had any
connection whatsoever
with him. Thank you.
Sincerely,
Kathleen A. Hauke
Department of English
University of Rhode Island
Kingston, RI02881
TO
BE
EQUAL
LVernon E. Jordan, Jr
1979-A Mixed Year
1979 began with a stunned nation trying to
understand the mass suicides in Jonestown
and it ended with an angry nation concerned
with Americans held hostage by Iran, in
gross violation of international law and any
standards of accepted diplomatic pracf
In between came twelve months wl*
continued hardship for poor people, some
important gains for minorities, and some
setbacks as well.
Perhaps the most important plus in 1979
was the Supreme Court s WEBER decision.
Especially after the disappointing result of
the BAKKE case the previous year,
WEBER brought fresh hope to millions.
In its decision the Supreme Court upheld
an affirmative action plan condemned by
some as an unconstitutional quota system.
The Court's action gave a Dig boost to
affirmative action just when it looked as if it
might be swept away by the rightward tide.
The Court also laid down some ground
rules on what makes an affirmative action
program acceptable. Since those rules are
consistent with every such program I've
ever heard of, the outlook for progress on
this front is bright.
The WEBER case takes on greater
important since it came against the back
drop of continued high black unemployment
ana a predicted recession that may yet
inflict heavv damage on black workers.
Well, that kind of thinking is all wrong. No
That recession, now starting^ was de
liberately engineered to curb inflation. It's
the old story - you beat inflation by
damping down the whole economy. If people
lose their jobs, why it's only a temporary
inconvenience. They'll be "back at work
when the recession ends, and inflation will
be under control then. It's a small price to
pay for controlling inflation.
Well, that kind of thinking is all wrong.
Not only does it make the poorest people
pay the greatest price for controlling
inflation, but it won't work. In the seventies,
we've had both high inflation and high
unemployment, ana there's no reason to
expect conventional economic policies to
work now.
The nation's economic problems may
factor behind the withdrawal from support
for minority rights and for the rise of fnpge..
groups like the Klan. When the economy is
expanding, the majority isn't worried about
competition from minorities. But in hard
times, everyone takes a "me-first" attitude
and sees iustice for others as a personal
threat.
That's also part of the reason for the
disarray of the old civil rights coalition in
the seventies. The last and most devastat
ing blow to the coalition came in the
summer, when Andy Young's resignation
from his post as UN Ambassador led
directly to increased tensions between Jews
and blacks.
Young's departure from the Administrat
ion setoff shock waves of anger in the black
community. It has still not been fully
explained to most people's satisfaction.
But the immediate effect was to intensify
friction between blacks and Jews, since
Young's resignation came in the wake of his
meeting with a representative of the Palest
ine Liberation Organization.
Long-smoldering resentments about nu
merous issues broke to the surface and the
groups are now engaged in dialogues to try
to re-establish their past partnership on
behalf of civil rights.
In a way, the break may have been
healthy in that it provides a basis for
realistic coalitions based on each group
being completely aware of the other's
position. Sometimes a fractured bone, when
it hpals is strnn0i»r than it hoH heen haf<w<>
THE CHARLOTTE POST
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Published Every Thursday
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61 Years Of Continuous Service
BILL JOHNSON...Editor Publisher
BERNARD REEVES...General Manager
By Alfred* L. Madison
Special To The Poet
.. President Carter recent
ly presented a defense bud
get to the Senate Armed
Service Committee, with
an astronomical increase.
His I960 budget called for a
3 percent increase. Now his
five-year military plan
calls for an annual defense
increase of 4.85 percent.
This is added to the already
3 percent 1980 increase
which means, roughly an 8
percent rise for 1981. This
plan will increase the bud
get in constant dollars in
successive years by; 5.8
percent, 10.6 percent, 15.5
percent and 25.4 percent.
While this increase caused
by defense spending is go
ing on, there is an attempt
to balance the budget. This
can only be done through
either and outrageous in
crease in taxes or a cut in
the social programs
In testifying before the
Armed Service Committee,
Secretary of Defense
Brown said he and the
President drew up this de
fense plan after consulta
tion with the Military Ser
ies and Joint Chiefs of
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From The White House
Americans Can Work On Several Problems At On*» TSma
sent Russion capabilities
can be proved.
The President's message
says "It is not merely the
deterrence of direct mili
tary attacks on the United
States that we seek; we
also must deter attacks on
our friends and allies."
This certainly seems to
mean that American citi
zens; the poor, needy and
middle class will have to
bear the burdens of defend
ing European countries.
This huge defense bud
get, presented at this time
when there is a climate of
hysteria existing in this
country over Iran while
diverting attention from
domestic problems is Just
about to pass congress Mr
Carter knows that this is a
satisfactory step to the
huge defense budget pro
ponents, which he hopes
will get SALT II passed
The opponents are jumping
on this political ploy to get
their objectives into the
agreement
Nineteen senators have
sent a letter to the Presi
dent setting forth their con
siderations for revision of
thd treaty.
One of the points present
ed by the nineteen senators
is great concern for SALT
to deter Soviet aggressive
ness in the Third World. In
a conversation with Senat
or John Warner, one of the
nineteen, we discussed the
African leaders' reason for
Soviet aid; that the western
countries fail to aid black
Africans in their fight for
freedom from white op
pression and I wanted to
know if this point has been
considered. He stated that
the prime concern of the
African countries is free
dom, however, at that point
his time ended.
It does appear that the
executive and legislative
branches are tying too
ther the astronomical dL
fense budget with SALT II,
and domestic problems
which bear heavily on the
American people are being
lost because of the election
of the President and one
third of the senate.
City Council Faces Great Challenge
continued from page 1
growth" will be hear α
again in the New Year as
city and county officials
participate in a Growth
Symposium, a series of
community forums and
planning sessions to deter
mine growth problems for
the total community.
"Charlotte is a boom
town,·· said Dannelly "We
need to do all we can to
keep Charlotte a beautiful
city. We need incentives to
distribute growth in under
developed areas "
As new industry moves
into the area, Leeper fa
vors the formation of a
recruitment task force to
look at the kinds of jobs
these companies will bring
to the Queen City.
"We should examine how
what these companies offer
relates to our problems of
unemployment," he said.
"We don't Just want big
name firms coming in that
bring with them their own
people. We need companies
willing to train OUR un
employed."
According to Leeper, the
black community will be
especially hit by inflation
in the liMO's, and black
business and black jobs
will suffer the most.
"Black unemployment is
always higher than aver
age,'' he said. "They miss
those who are so discour
aged they aren't even look
iift for work anymore The
gap between black and
white income continues to
widden. Local and state
governments must sddrees
this problem."
The councilmen all urged
citizens to become more
involved in the affsirs of
city government. "It's Im
portant to get involved in
deciding who holds public
office," said Leeper. Coun
cilmen Leeper, Dannelly
and Carroll will continue to
work with the Task Force.
m
ujun «aocunoN
MJ
Alfreda L. Madison
Staff.
Secretary Brown con
stantly made it known the
increase Is based on Soviet
capabilities, and it is hoped
that this proposal, being
presented at this time, will
aid in getting SALT II
passed by the congress It
is reasonable to assume
that the knowledge of So
viet weaponry came
through our Intelligence
agency Yet, a great ob
stacle to SALT II has been
that Soviet military power,
after acceptance of SALT
II, could not be verified. So
one wonders if these pre