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 Second Class Postage No. 965500 "THE PEOPLES NEWSPAPERS Established 1918 Published Every Thursday By The Charlotte Post Publishing Co., Inc. 1524 West Blvd.. - Charlotte, N.C. 2820B Telephone (704) 376-0496 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 second Class Postage No. 965500 Paid At Charlotte, N.C. under the Act of March 3,1878 Member National Newspaper Publishers Association North Carolina Black Publishers Association Deadline for all news copy and photos is 5 p.m. Monday. All photos and copy submitted become the property of the POST, and will not be returned. National Advertising Representative Amalgamated Publishers, Inc. 45 W. 5th Suite 1403 New York, N.Y. 10030 ^ (212 ) 489-1220 2400 S. Michigan Ave. chlcago. III. ΜΜΙβ Calumet 5-0200 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

Page Text

This is the computer-generated OCR text representation of this newspaper page. It may be empty, if no text could be automatically recognized. This data is also available in Plain Text and XML formats.

Return to page view