Ripon Forum Summer 2001

Page 1

B ecause we want our family to have a long history, too.

A t Pfizer, we've cared for generations. Since 1849, we've refused to believe that the ills of the world can't be cured. We're determined to

find cures for the diseases that touch all our families. We search day in, day out, year in, year out looking for treatments for diabetes, for the cure for cancer. for new antibiotics to fight

deadly new strains of bacteria. We've worked with a passion for over a century and a half. This year we're devoting $5 billion to research. Why do we work so hard?

Because families are depending on us.

Life is our life's work.




RIpON FORUM Contents


Moving Forward ........................................................... ............... 4 A R ipon Editorial PresUknt H on. Bill Frenzel

Safeguarding America's Meat .............. ......... ........................ ........ 6 Dr. Catherine E. Woteki, Ph.D. , R.D.

Exccutive Dirtttor


H a~u

Cornrr.uUeation DiRaor.

A Ripon Interview with Jack Quinn A New Partnership ............................................. ........ ........... ...... . 9 Ashleigh R oberts

Editor Ashldgh Roberu

DnignlArt Dil'Kl;on Christina F. Valis

A Ripon Interview with]. Dennis Hastert Earning the Majority ............................................ ....................... 12 Ashleigh R oberts




2001 Rough Rider Dinner ....... ................................................... . 16


Restoring the Majority: The GOP Challenge in California ............................................... 18

CCI ...ww.c~i·$C'rvices.C()m

Philippe M elin

" 2001 by The Ripon Society All Rights Rescn-ed One Year Subscription: 120.00 individuals IIO.OOslUden ts

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

addirional mailing off,ces.

Medicare Reform: Still Time To Get it Right .............................. ....................... .. .... 28

Postmasler, send

D eborah Steelman

I'criodic:au post paid

u Wuhinglon. D.C.:lOd

address changes 10; The Ripon Forum

'f'k RiJlt'" Forum ( ISN 0035-5526) is published quarterly byThe Ripon Society.

501 Capilol Court, NE

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 i upportcd by chaple r dues, individual contributions, and n:\'cnucs (rom ils publications.

Suile 300 Washington. D.C 20002


Forum • Sommer 200 I

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: ]

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

So, while eating edi[Orial crow, RF wonders what hap pened to the adults.

Working Majority, The 50-50 Spli t." In the same issue,

Today, our hobbled Republican elephant remains deter-

published only weeks ago, the editorial noted a new sense

mined, but the D emocrats control the Senate and do so through

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

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.

Republican majorities. The l07,h Congress exhibits a quiet

H e said, ~ In order to best represent my state of Yermo nt, my

maturity, marked with new confidence and a long over-

own conscience and principles I have stood for my whole life, I will leave the Republican Party and become an Indepcndent.~

due sense of unity. Members are focusing


on in-

dusion and less on the divisions that have derailed Republican efforts in the past. ~ ~ Thc

H owever, SenatOr Jeffords did not stop at becoming an Independent. H e joined the Democrat Caucus. thus toppling

newfound Republican unity is a sign to the

country and the world that the Grand Old Parry is ready

the former Republica n majority and deposing Republican Chairmen. In effect, he became a D emocrat.

to govern. Republicans have stnlggled long enough with

Jeffords defection abruptly put an end to Republican con-

their message and their differences and it appears as

t rol of the Congress. It had been the fir st time RepUbli cans

though the internal shakedown is


uThe message is simple. When Republicans work together, they can drive public policy. The diversity and independence of Republicans makes unity a challenge,

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.

but the 107'" Congress has proved it is possible. Adult

The Senate leadership and 20 committees. along with

leadership in both the executive and legislative branches will do much [0 res[Ore the public's faith in govcrnment.~

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 lig htning. The White H ouse 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 dr um . As Nebraska Senator Chuck H agel warned, 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 M

changed his status to Independent, but remained in the Republican Confe rence until the next election. H e could have indulged in an act of political heroism by resigning and run ning as an Independenl. Republican candidate Jeffords asked his colleagues to endorse 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 Washing ton Pos t column, veteran po litical reporter, David Brode r opined, "A loner in temperament, Jeffords took no one with him. " Wrong. Jim Jeffords took all of his old Republican colleagues out and put his new D emocrat col leagues in: On the outs are many good Ripon Re publicans: T ed Steven s , Di c k Lugar, J o hn Warner, Pete Domenici, Arlen Specte r, Pat Roberts, Orrin H at c h, Olympia Sno\\le, Chuck H agel, Susan Collin s and Mitch M cConnell not to mention a host of other committe e and su b -c ommittee chairmen. On t he ins arc Robert Byrd, Tom H arkin, Carl Levin, Paul Sarbanes, Kent Conrad, Fritz H ollings, M ax Baucus, Pat Leahy, Chris Dodd , Ted Kennedy, and of course, J im Jeffords. These are dramatic changes. A s a result, the need for healing and unity is stronger than ever. Let us now fully real ize the challenges that accompany peace in th e big tent. RF urges

"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." how ro broaden our Party, in o rder 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 the m, even as we ask respect for ourselves. Vvc must also consider their views, even as we expect consideration of our own. Obviously, Jim J effords did not feci the Republican leadership afforded him toleration or respect. I-Ie did not feel comfortabl e in the big tent. H e 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 muc h more than that. Hi s act of conscience involved far more than standing

our Republica n le adership and the White H ouse to put th e words respect and tolerance into deeds. inally, 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 admiratio n for those who put principle first. H owever, Senator Jeffords' decisio n was one small step for principle and one briant step for a Democrat majority. That being said, the Republican Party may have finally seen

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 majority lights in the offices of all of his former colleagues. H e 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. H e cou ld have

the last of the backbench bomb throwers. While Ripon is disappointed by the recent turn of events, it is our hope that the CO P can now begin work on an agenda that encompasses the entire Party rather than focu sing o n concessions that only please its fac tio ns. The message is still the same, if anyonc is willing to li stcn.

Ripon Forum • 5ommef" 200 I



Safeguarding America~s Meat Strict regulations protect the nation's beefsupply 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 E ncephalo pathy o r BSE, is a vexing problem to health and agriculnlrc in several European countries. In the 19805, SSE infected catde herd s in Britain and then spread to other European coumries. As a result, leading govern ment 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- infected cattle is lin ked to a new, invari:ably fatal brain di sease o f young men and


c all e d


v a ri a nt

Cre utz feldt -J akob Di se as 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 ho w many people this new d isease wi ll ultimately infect. Not knowing for certain how the infectious agent is transmitted, he:llth authorities are moving to prevent blood donations from peop le 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 med ia coverage of the HSE epidemic in British a n tic and the related vCJD epidemic in people h as 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. Unlike 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 accepted hypothesis o f how BS E arose pro\'es to be correct, it 's a disease that has jumped from one species {sheep} to another species {cattle} to a third species (humans). 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 IV/ A IDS. Some experts predict that 70 percent of the new diseases that will affect people in the fururc will arise fro m o rganisms that now infect animals. BS E causes progressive and fatal attacks 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 fro m the work of D r. Stanley Prusiner. For discovering the

cause of this new disease and the elucidation 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 identified an d the carcasses be incine rated so no potentially infected meat can make its way 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 diagnosed 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, public hcalth and agriculrure officials have put into place strict measures to protect their publics and their economies.

"The disease takes years to develop, both in cattle and in people, and there is no reliable blood test to 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 warmblooded 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 pathogens of bacteria and parasites are wrapped within a new cell. ut in the case oITSE-causing prions, once the mi s-s haped protein is present in the body, it act s 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 apparem. The name "spongiform encephalopathies" 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 techniques usually used to kill infectious organisms - heat, acid and radiation . The fi rst 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

PROTECTIVE STEPS In the United States, both the Department of Agriculnlre (US DA) and the

Department of H ealth and Human Services (HH S) acted to protect human and animal health. In 1989 when the magnitude and seriousness of the British epidemic became apparent, USDA prohibited the importation of cattle and other ruminants, and most ruminant products from coun tries affected with BSE. Th roug h its Anima l a nd Pl ant H eahh Inspectio n Se rvice (APHI S), US DA tracked down 496 cattle from the UK and Ireland t hat 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 iginal 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 assessment. US DA and the livestock industry have developed an active BSE edu cation prog ra m for vete rin ar ian s, slaughterhouse and market owners, and others associa ted with the livestock industry. US DA inspectors in slaughter plants exami ne incoming animals for neurologi cal signs and symptom s of BSE. Any suspicious animals are taken


away for autopsy and their carcasses are destroyed. To protect human health, the Department 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 fi SE 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 ruminants. The Centers for Disease Control has instituted an active human surveillance 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 H ealy, President of the American Red C ross, argues that more needs to be more on the human health side. Without a simple and reliable blood test for screening both people and cattle, the safety of our blood hanks, tissues for transplantation, or our food supply will not be known, she says. Dr. H ealy wa nts to see more funding dedicated to research than the current SI4 million in prion research supported by the f ederal government 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 population. n 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

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 veterinarian s working in slaughter plants so they will be able to detect the abnormal behavior associated with BSE-infected cattle. At the moment, 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 lable, USDA should require its usc in routin e market surveillance for infectious di seases and harmful chemicals. In his Nobcl laurcate address, Stanley Prusiner comments on the p"h of l the scientific investigation of the rnmilial fonn of C reunfeld-Jakob disease. He also discusses the enormous resistance from the


"The protective measures have sealed off our borders to importing live animals from areas of the world with BSE."


scientific community to the idea that a protein 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 capable 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 measures 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 ofAgricullllrl.

ANew 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




~~---------------------------" ~ Qllinn diJrossD Mw Yoill30th DiItrictwith RF Editor Ashkigh RWerts.

about some of the challenges in the 107'· Congress Im d hif strategy for r/anding by the people of Buffalo and supporting Bush's legislative agenda.

RF: In your last election , you received 67 percent of the vote. How does that happen to a Republican in the mosr highly unionized district in the country?

RF: Congress ma n, you a re a well- known Republican but you don't represent a typical Republican district. Can you describe your constinlency?

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 rtunate to be returned a few times.

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 bluecollar conservative district more than it is Democrat or Republican. RiJXlfl Forum • Summer 200 I

RF.. Labor groups have traditionally been strong supporters of

rhe Democratic Parry. D o think the Republican Party has a chance to change that? Congrtssman Quifm: Absolutely and posi tively. I am a perfect example of that. The last time out, 1 was endorsed by the unions. 9

They financially support me and are politically acrive. If the Republican Party is interested, I think there are all kinds of o ppo rtunities. 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 Workers (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. he 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 Working Group on Labor can put you at odds with the President. H ow 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 campaigns, 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 President, so be it. But, he will know ahead of time where I am and


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 Administration and point out possible areas of conflict. Your meeting 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 Members met with II intern atio nal uni on presidents including J ohn 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 Republicans. There is no doubt that the meeting last Tuesday was the largest group ever assembled. I think there were 11 international 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 Republicans 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 Members can understand what it is that the Union members need. RF' President Bu sh issued an executive ord er in Febr uary effective ly ba nning 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 a mende d t hat orde r, now allowing for t he m on fe d e ral 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 H ouse 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?

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 fl oor this week? Co ngressman QlIinn: 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 businessteachers, 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 not perfect, but it works.


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 Administration know early where we have some heartburn and where we are going to have problems. any 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. DavisBacon 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 H ouse. h will be for me. Congressman Frank Lobiondo from New Jersey 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 mum wage?


increase mini-

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 Democrats 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

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"".; 2child"n

Religion: Catholic Education: Si... CoIIego, B.A. (1973); S.U.N.YBufbIo, 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: II

Earning the Majority

j/h the narrowlst of margins in


U.S. HouSt,

(Ind the US. Smale n(JfJJ in Democrat


po/i/iral allalyus would have prdieted Re/JUh/ieam

in Congrm are ruaring paHage

of Pmident


two top legislative priorities, lax reliefand ((Iu{a/ion,

within six months. But aflu msiam ofpartisan gridlocR, the United Statu House ojRepmmlaliw! is makingprogms. On May 17, 2001 The Forum was able 10 Illill with the man behind the sunes, SpeakerJ Dennis Haster/. Although hI! was 'fJirtllally unkn()'U)11 to tm general public in Deumber 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 diffumces 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 design. 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


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

RF: Let's assum e the tax relief and educat io n bills a re eonfereneed a nd th e Presid ent sig ns bo th into law. What is next fo r the Republican Co ngress?

I n the I-louse, we did a health care bill, balanced 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, RepuhliClIns were able to go home with a solid legislative 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 pharmaceutical drug bill, get it done and get it signed so we can take those legislative accomplishments on the campaign trail and beat the odds. he historical odds say that in the first midterm 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 focus on campaign basics. You cannot be lack:.daisical, sit back and expect the seated President to win it for YOll.


Photo by Man" Tamil

RF": Despite the narrow margin of Republicans to D emocrats, House Republicans have been able to move President Bush's top legislat ive goals ;n regard to tax relief, the budget and now educatio n. How has the leadership been able to accomplish these goals?

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 cannOt be commandeered by somebody in the H ouse or Senate who will push that number over the top. T he other important presi dential initiative is education and it is on the legislative 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 approved 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:Th ere has bee n a big change in th e White House in terms of style, to ne and policy goals. What cha nges have made you r leadersh ip responsibiliti es eas ie r?

"Republicans have strong beliefs in our 'big tent' party, but both the moderates and the conservatives have committed to a common agenda and we have been able to get things done."

Speulur H asla l: It 's nOt just the leadership. Our members have really pulled tOgether quite well. Republicans have strong beliefs in our abig tent" pany, but both the moderates and the conservatives have committed to a common agenda and we have been able to get things done. They have both sacrificed for the common good. 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 together 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 H ou se 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 H ouse'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 H ouse and vice ve rsa. That really helps get the message out.

RF: H ave there bee n c hanges in th e Admini stration 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, disagreeing with the President creates a whole rift in the Party.

So, what has to be done can be reaUy difficult. here we re 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: It changes somewhat as time and issues change. But if we pull together and work together, we can get things

SfÂĽdff l1aJUrl t1ullin~1 biJ Irrislaliw pis wit" RF Editor Ashltigh RDlMrll.

D e mocra tic leade rship a nd what is yo ur assessment on di visio ns wit hin th e Republican ra nks in th e H ou se? Speaker H aSlerl : There are som e Democrat leaders that ge t al ong with re ally well. Othe rs go under the premi se that if they help the Republican s get anything done, it make s it harde r 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 reac h across the aisle . You have to tone down the rhetoric to get things done . And, there arc som e real things you can do on a biparti san basis. But if the rhetori c is filled with political or parti san ve nom, you arc never go ing to get anybody o n board with you. That I S true fo r both parties.

"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." 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 c h about the Republi ca n Revo luti on or par tisan acrimony. Two qu estio ns: What is your relations hip with the

RF: The Democ rats a re well unit ed in oppositi on to the Rep ubli ca n agenda. Ca n yo u keep both th e moderate a nd co nservative Re publi ca ns united to th e extent that they will not de rail the President 's agenda?

SpeaRer H aslerl: There are two situation s. The H ou se is one situation and the Senate is another. In the H ouse, 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 age nda. If we don't move our age nda, we don't keep the majority. It 's that si m ple. 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 energy neglect. I go back to En e rgy Secretary B ill Richardson's comment. ~they were sleepi ng at the swit ch.~ You can't fix this thing ove r night. It took eight years of no energy pol icy to come to fruit ion.

R F: M any 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 yo ur 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. W e have successes because Republicans work Together. lcrc 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 o f 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' 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

had two wee ks yo u could take o ff a nd d o a ny thing you wa nted to d o , what wo uld it be? Y OIl

SpeaJ:~r Hast"t: Two weeks? That's easy, I would go home.


Asbleigh Roherts is the editor ofThe Ripon Forum.

VITAL STATS: J. DENNIS HASTERT Birth Date: )'"'''Y 2. 1942

Party: Iopublica' Political Philosophy: Apragmatic conservatin

Hot IHue: AIopublica, majority Home: Yomil~. lIIinoi. Family: ""ried 10)", 1. 111; 2child..,

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.....: dhallOn@mail.hou...!"


Ripon Holds 2001 Ro By Ashlcigh

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 H ealth and H uman Services Secretary Tommy G. Thompson , Se nator D on N ic kle 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 200 1 Rough Riders,~ said the Honorable Bill Frenzcl, 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 2 6'~ 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 homas (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 n alion,~ Frenzel said. "Often in the face of adversity. these leaders have not faltered, nor abandoned their pri nciples." Frenzcl said they were worthy successors to the leadership mantic of a president who understood the relationship of politics 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 d ust and sweat and 16

Ripon Forum • Summer 200 I

Rider Awards Dinner



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 devotions. 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 inclusive 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. H ouse 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 restore the core values of the Republican Party. This year's awardees have pushed for innovative policy solutions 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 take us into the next.


Ripon Forum • Summer 200 I


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

state privately say that if major reforms are not made, the party is not worth their in vestment.

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 persuaded GOP legislalOrs to back him instead of dealing with Democrat leaders in Sacramento, won fai r redistricting. H e earned the GOP 24 of California's 53

WHAT CAN BE DONE The dramatic events of the last six 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 redistricting 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 extreme, Republican Party registration has

years show that a reversal of fortune is possible. Perhaps not in 2002 or 2004, but certainly in time for 2008 when California 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 revival of the California GOP. I. A NEW IMAGE: A change in the party's

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 victory si nce 1994.Governatorial candidate

declined dramatically and is less than 35 percent. Despite a growing effort by mainstream Republicans to clect new leader-

image, led by concerned Republicans speaking out in their own communilies, and eventuallycchocd by new leadership in the California Republican Party. 2. STRONGER GRASSROOTS: A revival of the

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.

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

party 's traditional emp ha sis on grassroots doo r-to-door volunteer efforts 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 fighting chance to win back majorities. Let 's look at each of these items starting ,vith the Party's image. California Republicans relied for years on the theory that so-called " Reagan Democ rats ~ or bluecollar workers wooed by conservative Republican positions on cultural issues would provide the swing votes to elect Republican majorities. 1999 sttldy sponsored by the then mainstream Assembly o f Republican Leadership con cluded 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 decision on abortion ignited concern, particularly 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 issue, 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 stillregistered Republ ican women voters. T hese defections will become pennanent losses to the party unless a future generation of candidates and a new party image wins them baek. Even more damaging has been the carnage suffered by the GOP among H i s~ panic voters. Pro-choice Governor \ -Vilso n, who worked h:lrd to keep GO P


Ripon Forum • Somrner 200 I

women loyal to the part")~ chose (0 crackdown on illegal immigration and government benefi ts fo r illegal aliens who were already in the nation, a shrill issue in his campalh'11· \ -Vhile these issues comm:mded majority support in California and won h im re-election there, they went a long way in alienating the H ispanic community, particularly young H ispanics who perceived it as anti- Hispanic rhetoric that polarized the electorate along ethnic lines, T he damage done has extended beyond 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 refusal to cooperate in imposing price controls, reveals the ncar intellectual bankruptcy of the Democratic Party in California. The crises provides an extraordinary 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 o f freedom, hope. opportunity, growth, diversity and personal responsibility. President Bushs recent success on educa-

tion policy, which reversed years of a Democratic polling advantage and crafted a bipartisan Congn:ssional majority for stronger accounrnbilitywhilc retaining local conrrol ofeducation, is an example of \.mat can be done with leadership at the national k.....·cl. Republican

from the party. Californians wan t economic prosperity and the lower taxes and fiscal rovonsibility that are essential to such growth. But most will reject a "nanny" government 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 California 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:LParty 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 throughout 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. In 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 encourage diversity r:nher than call their opponents 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.~ n 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 overwhelming majority of Californians who believe that more should be done to conserve our natural resources and prOtect the environment. Key leaders in the Administration appear to recognize this problem and arc


working to ensure nt:\v initiatives to conserve energy, promOte alternative sources of power, and toughen regulations on key elements of air and water pollution. Hopefully these initiatives will overshadow early public rela tion s meltdowns on arsenic in drinking water and the reversal on regulating carbon emissions 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 welcome at the White H ouse.

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 H isp:mic commu-

"This is not a battle that can be won on the telephone, on the golf course or over drinks at the country club."

EXPANDING THE BASE The most important issue fo r the revival of the GOP in California must be ethnic outreach, particularly to Hispanics. The Party should simply and dearly admit 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, welcomi ng immigrants as a valuable element ofsociety, 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. H ispanicsare open to the GO P's message of opportunity. California Assemblyman 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 responded. But simply changing positions on issues 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 meetings, 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 victories in 2000 with a massive street-level and shoe-leather turnout campaign that in the final days and hours of the campaign 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 Democrals on the ground. Turnout mail :md phone banks were no match on Election Day for personal contact with voters. Grassroots activists from the socially conservative 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 prochoice 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. I nteres 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 Republi ca n Youth M ajority arc working to meet this challenge. They arc recruiting 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 2 1st Century PAC mounted a broad-based candidate recruiting campaign uniting moderates and inclusi\'e conservatives that nearly toppled the state parry's ruling hierarchy. It plans to do so again in 2002. or 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 WI SH 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 G overnor in 2002. When asked if she would consider running, Rice said, '" love my j o b.~ She Ripon Forum ' Sommer 200 1

also said, ~l love Californ ia.~ The news headline: "Condi Rice doesn't say no.~ II makes one wonder iÂŁBush 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 ofone 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 California Republicans.

THE ROLE OF INDEPENDENTS California's open primary, which allowed 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 Republican 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 increase 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 regardless of their political parry. T he impact 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~fo nn in the California Parry will have much impact on its electoral prospects at the legislative and C ongressional level unless there are fair districts that wilJ elect competitive 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 majority. But powerful Democrat interest groups, including labor, public~mpl oyecs, trial lawye rs, and other si ngle interest groups that fund Democrats in California, 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 Decide n to remove the redistricting power permanemly 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 produce 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 to con- II] tend with . Philippe M tlin is the Exrcutive Dir(!(/or o[ the Republimrt Youth M ajority, a pro-choice organizillion flttlicafttlto promoting (J socially tolemllt andj iscally conservative appro(ICh to gO'llen/flu nl. 21

ADifferent 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 Secu rity program. Quickly gaining II "pula/ion/or laclding the fI(Ition's tough Shaw is du/ieated 10 keeping the system lolvent for lutll re

generaliom. 11/ a hill he (o-allthoud withformer 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 ofthou 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 Security 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 Social 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." 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 government 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 Subcomm it tee, you've been in vo lved with the iss ue for mallY yea rs. Wh at ha s ca used you to c hange 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 becau se th e D e moc 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

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 campuses. My goal is to energize the young people so they will demand

that Congress acts. he 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. It 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 Members 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 200 1

-::~===~:::;;2J ~


Congrnsmlm Cluy Shuw,jr. tliscus$ts his mm agl /Othe lIation's youth.

Congress and America have to focu s on it. We all need to know how the systc!m works. RF: Some Republican naysayers warn that D emocrats have historically politiciu d and dcmagogued proposals for Social Security 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 FI CA 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. tarting 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 Sta rt 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 H ouse Ways and l'V leans Chairman Bill Archer and I put together actually creates a 520 trillion surplus. In existing law, there is a 520 trill ion deficit . T hose are huge figure s. But we have to start now. The longer we wait, the more difficult it witl be.


RF: Other observers say reform of Social 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 system. 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 "oldc st~ districts in the counlry as far as the age of my constituents. But we can preserve Social Securiry for them 'nd strengthen it for their children and grandchildren.


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,•• (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 em ocratic 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. For more than 15 years, New Democrats have pushed and pulled our donkey party back into the political mainstream. We had to, out of political necessity. In 1984, the party of Franklin Rooseve lt , H arryTruman and John Kennedy 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 preside ncy agai n in the 20th century.

The national parry had clearly lost its way. Rather than giving up, New Democrats formed the Democratic Leadersh ip

iog considerable res istance, the OLe bu ilt a modern, progressive D emocrat Parry that tackled America's challenges through modern means and fresh ideas. 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 H ouse. I n 1996, he was reelected. It was t he fi rst time in six d ecades that a D emocrat retained the presidency. Because his political success was built on his New Dem oc rat ideas, C linton's victories redefined 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

Democratic Leadel'sh~ Council

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 Democrat s for national leadership. Qverco m-


ideas, it will survIve Vice Pre sid en t Gore's fai lure to win the presidency in the 2000 election.

REFORMING A NATIONAL PARTY What arc the lesson s that can be learned about reforming political parties from the New Democrat ex peri e nce? irst, 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 motivating factor. Sometimes it's a national crisis, like the Great Depression was for Franklin Roosevelt. For New Democrats, the factor was consistent electoral defeat threatening the national party's very survival. Third , reformers need a clear strat egy and a singleminded purpose. Our strategy was to offer modern means that furthered the party's traditional principles and ideals. We knew that pursuing 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 aspirations of too many Americans. So we shaped a progressive agenda that connected with ordinary Americans. Fifth, a persuasive presidential candidate is essential. For the conservatives,


Ronald Reagan fllied that role in 1980. For us, it was Bill Clinton. He was the messenger and the marketer ofour movement. Clinton took our ideas into the presidential primaries, and by winning the nomination and the election - and then by governing as a New Democrat, he redefined our party. Though the DLC was formed in 1985, it really intensified its effortS to redefine the Democrat Party four years later. The 1988 presidcntial election was a terrible disappointrnclH to all Democrats, but it \VlI.S especially difficult for party reforme~. Not only did we lose an eJection we expected to win, the 1988 campaign was eerily reminiscent oflosing Democrat campaigns during the nvo pmoious decades.

TAKING ACTION So in 1989, the DLC adopted a fourpart strategy to change the Party. Stage one was ~reality therapy." It was an honest assessment of why Democrats were consistently losing elections. This seems

Michael Dukakis won a higher percentage of self- identified DemocratS in 1988 than Jimmy Carter did in 1976. In fact, in some polls he won a high er percentagc 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 redefine the Party to cnsu rc hard working, middle class Americans were nOt fe cling 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 D LC, we issued 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 ~ th c purpose of the D emocratic Party is to ex ~ pand opportunity not government,~ that "econom ic growth is the prerequisite for

"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."


elementary, but it is extraordinary diffi cult to get a party to face the real reason it loses elections. While we were roundly criticized for doing it, OLe findings were critical 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 earning between 520,000 and 550,000 a year voted Republican by better than a 5- 4 margm. We were also losingbccause the number 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 redefinin g statements because mos t Am erican s di dn't believe D emocrats 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 criti0 1 moments came in the 1991 convention in Cleveland, when with people reprcsenting 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 challenged liberal D emocratic orthodoxy. It took on tough issues, calling for fiscal

an insurgent party faction. Most Democratic leaders still opposed us.

TESTING THE MESSAGE Despite the oppositio n, New Dc moc rats believed that rank - and file D emoc 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 redefined Democratic Party. Today the D emocrats stand for economic growth not just redistribution, for fi scal responsibility nor ~ tax and spend," for work not welfare, for prt.'venting crime and punishing criminals not explaining away their behavior, and for empowering not bureaucratic govemment. ll1at'sstarklydiffercnt 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 country, New Democrats arc emerging as the Party's most dynam ic leaders. T he New Democrat Coalitions in both the U.S. H ouse and Senate are fast becoming the largest and most important forces in their respective caucuses. New D emocrat 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~or i ty party agai n. Best of all, the movement is still young with its best years ahead.

"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."

discipline, welfare reform, national service, public school c hoice, cha rte r schools, and legislation like the Brady bill when the Democratic lead ers of both houses of Congress were sti ll opposed to it. T11 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 important De mocrats. T he Reverend Je sse Jackson ca me to demonstrate against the O LC. Liberal s led by Iowa Senator 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 D emoc rats in the H ouse 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 D emocrats. 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 D emocra t ic agenda by testing it among vote rs in the Democ ratic primaries. hat'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 candidate at its convention. H owever, 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-


AI From is the founder and chief exeruti'lJe o/JiuroJthe D emocratic 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 Co ngress suggest thai what was o nce 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 d rug 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. H alfWay me:l.sures hold the limelight today: block !,'Tanrs, a variety of drug-only insurance bills or drug-only add-ons to the current o utmoded prog ram. 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 program. 28

The current system is notoriously, almost maniacally, convolul'ed and complex. According to the Mayo C linic, the rules and regulati o ns promulgllted by H eFA over the years now run to morc than 100,000 pages- much more ma ssive than the (ax code an d arc beyo nd 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 reimbursed as ~ medi cally necessary. ~ The claims review and appeal s process for denied coverage is ridiculously long 524 days, on average, from initiatio n to completion, according to the Heritage fmllldation - and claims arc rcjccu:d more frequ ently in Medicare than in priva te health insurance systems. Almost all M edicare providers can furn ish sto ries of Kafkaesque encounters with H efA. 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 contractor 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 originally 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 coverage of the most serious medical needs. again falling short of commercial standards. T he lack of drug coverage is exhibit A, but the re is more. M edicare doesn't cover non- rehabilitative long-tenn care, catastrophic expenses, many preventive care services or dentistry, hearing aids or glasses. Medicare does not cover cholesterol screening even though cardioV'.lscuRipon

Forum • Summer 200 1

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 COStsharing (what worker pays 5776 the first day he or she must be admitted to a hospital?), Mt:dicare turns out to be something far less than the comforting securityblanket we all want for seniors. On average, about 22 percent of the typical senior's income is spent on health services no t covered by Medicare. he program is economically unsound as well, full ofcontradictory incentives and unworkable controls. The copays and deductiblcs private insurance uses to give beneficiaries some sense ofoost-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 alternatives. 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 ofsuch measures is to depress the supply of goods and services 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 hospitals must adjust the mix of services they provide to compen sa te fo r payments that do not adequately refle ct cost. As a result, 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 t ween 15 months and 5 years. Further, because some devices must be approved by M edicare on a region-byregion basis, the same technology may not be available nationwide. The same impediments stand in the way of o ther medical innovations - new surgical procedures and new drugs for hospital usc. If the same principles were applied 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 dynamic change. This inflexibility is pervasivc and without a doubt constitutes the greatest weakness of the M edicare system over the long term. It is almost purposefully 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 Vi ctor 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 no t be supported by our society. In addition, biomedical 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 trcatmen! 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 coverage, Medicare today is now disconnected, uncoordinated, inadequate, expensive, and unrespon sive. And any attempt to add drug-only covcngc to this structure is like adding a new fl oor on a building with a crumbling founda -

"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 long term."

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.

strated that the incremental benefit of pre-

tion. We can do better. My background in Medicare date s back over two decades to my years working for the late Senator John Heinz.. H e was a passionate believer in Medicare as a foundation fo r seniors'

There is no question that providing 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

scribing cardiovascular drugs cxccedl..-d the incremental costs. Using that data to compute a "cost-Qf-living" indo: for heart at-

health and income securi ty. M y term in President Reagan's OMB taught me that M edicare can be run more effi -

through inc rementa l changes which con tinues the current Medicare system of centralized con trol and administered

tacks, they showed that the indo: had actually been declining at an annual rate of 1.1

ciently by changing the way we buy services. During my service o n 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 benefits, reduce costs, and reduce administra-

prices. We will need the individual choice and control, the aligned incen-

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 - isfalling over (ime, whereas (onvenlional medical care price indexes have suggested a rapid riu." More recently, Columbia University economist Frank Lichtenberg has documented a similar cost/benefit return for pharmaceutical innovation in gene ral. H e calculates that ou r nati o n'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

tive hassles f-or providers. ecently, 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


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

D eborah Steelman is Vi(t Pm itient, of Corporate Ilffairsfor Eli Lilly and Company

and brought to market breakthrough drugs that

I "The Costs :Uld Benefits of lntcnsive T ~tmcnt

have helped millions ofpeople through dle slog

for Cardiovascular Disease," by David Cutler. Mark McClellan (now a member of the Coun-

of depression and the disability of schizophrenia Ourinnov.ltion \vill expand the horizon. ofproducti\'C life in a multirude ofuralS for millions of people for years to come. Although now ridd led with difficulties, let us not lose sight of the fact that Medicare's contributions to the way we live

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 Institution Pn:ss, 1999. Ripon FOI'lJffi • Surrvncr 200 I


HOII) do )'011 ac/Jieve

fintl1lcial security?

We can help you do both.

Some would Sl~J'

it's a malter of lIcclI111ulafing assets.

To Ibem, u'e u'ould

stO', )'ol/ 're balf rigbl. Because, if)'oll 're 1101 also proll!cfillg tbe assels ),011

Il'Ork bard to bllitt/, ),oll r II'CII/I/) (:ri11

II{mis/J qllick(", Ir0 11IItiers/fwd

bow asset groll'l/) and proteelioll call ll'ork foge/ber.

Protection against risk in all its forms. After morc than a hundred rears in the insurance business, we'\'e learned a great deal about managing risk. Today, we offer a complete array of protection products 10 help guard clients againS( all kinds of risk-from disability 10 ,tccidcnlS, taxes and market volatility. Superior asset management. Prudential is a leading asset manager, with more than $37 1 billion in assets under management.-

We offer a full complement of ilwCSl/llcnt products that seck 10 help investors achieve superior riskadjusted returns over the long tenn.

Expert advice. Around the world, thousands of Prudential professionals are advising c~ ents on their most important 6nancial needs--from insurance and investments to real estate and financial planning. Call for our free brochure. Mal/agillg tVllr Weall/) discusses

the essential steps to growing and protecting your assets.

1-800-THE-ROCK ext. 5364 or visit liS at:

Prudential ~ Financial Growing and Protecting Your Wealth~

Prudenlial flnCllKioi b a lfj"¥iltlllClfk 01 Prudenliol, NtwOrk, Ill, one! it aff~icrtes.l!lSUrOrKe iWoch.l(~ iswed by The Prudenlicrl lMUralll1 Company 01 Mlerir:o. Stturilies iWc.I~ and!oefVit:n offered by PrIJ(O Sec"ur~ (Ofporolion (member SIP(). 80tk (amponies ore louted at lSI Brood Street, Hewark, HJ 011 02. Red eslalt broktfoge Iff¥!l:es arl offered iIIrough 11M Network 01 independet1!1y owned ond operated fralllhisets 01 Thl Prudentja) RtIIl bloll Affiliates, 1111. EfIUO) HGUSiI\(l Oflportuniry. (i) AI orl Prulitnrial camponies. lrlveslment advisory Iff¥iles orl offered iIIrough Prudenlial Finan{ial Plonnirlg Smites, a divilioll of PrU{O Ser.uri1ies Corporatioft. All 01 iIIe {omponies menrianed are respomiblt IOf rhtir own financial {ond~ian ond (ootrll(luol obligotiolll. Avoilobilil'l of disIlbilil'l in{omt inwrOlll1 varies by {orrier and 11011. •Al5e~ under management 01 of 12/31/00.

Visit onr wcbsitc for information


npcoming Ripon Socicty cvcnts!




RrpoNFoRUM 501 Capitol Court, NE, Suite 300 Washington, D. C. 20002