THE NEED for a lower unemployment rate, plus public efforts to create new jobs, was stressed by 25 of the 50 congressional candidates who responded to an Illinois Issues questionnaire seeking suggestions to alleviate fiscal problems in government. Like the candidates seeking election to the Illinois General Assembly, their views also suggest different means for tackling the problem.
Taking all of the candidate suggestions, five general categories were formed. But a candidate was not limited to one suggestion, and may have responded with several ideas in more than one category. While responses from the candidates can be generally grouped, their individual answers ranged from specific proposals to general rhetoric regarding their economic ideas. Not every candidate is quoted directly in the summary, but the numbers) accompanying candidate biographies on the following pages indicate that a candidate answered a question and into which category his or her response would fit.
The major categories of suggestions to ease governments' fiscal problems are:
1. Holding the line on spending, or reducing current expenditures.
2. Improving the business climate.
3. Reordering of spending priorities.
4. Reorganizing She legislative and/ or executive departments, programs and policies, and improving the attitude of public officials.
5. Altering tax structures, rates and collection procedures.
1. Adoption of innovative and comprehensive policies which would put more persons back to work was the most frequently suggested idea for reducing government spending and the related budgetary deficit. Abner J. Mikva (D., Evanston),for example, contends that lowering the current unemployment rate (which fluctuates between 7and 9 per cent) to 4 per cent would result in a budget surplus of more than $4 billion. Enactment of the Full Employment and Balanced Growth Act of 1976 (also known as the Humphrey-Hawkins Bill) was noted as one means for attaining that goal by Ralph H. Metcatfe (D.,Chicago). Tim Hall (D., Dwight) and Paul Simon(D., Carbondale). This legislation requires the U.S. government to devise a permanent institutional framework so the President, Federal Reserve Board and Congress can cooperatively develop policies necessary to provide productive employment for Americans 16 years of age and older. In addition, the bill mandates the enactment of specific government subsidized programs to achieve the goal of a 3 per cent maximum unemployment rate within four years after it becomes law.
Contending that the " free enterprise system cannot provide all the employment solutions without 'help' or 'interference' from the government, " Hall still wants to see an actual cost figure for some of the policies that could be enacted by the act. A Library of Congress study, he says, has placed a $12 billion government price tag for creating a program of four million additional public service jobs. Simon also wants to test the effect of public service jobs on social and economic factors that might be affected by putting people to work. This, he states, can be measured through a demonstration project in a select 20 small county area. All persons who want to work would be offered jobs through both government and the private sector.
An opposite " hands off policy was outlined by Philip M. Crane (R., Mount Prospect). Stressing that government subsidies to the "able-bodied-corporate and otherwise " should be eliminated, he believes that " business, agricultural interests and individuals should rely on their own skills and initiative. " Ronald Buikema (R., South Holland),moreover, wants legislation which would limit the maximum number of persons that government could employ, and a subsequent 5 percent reduction in the federal payroll during the next fiscal year. In addition, Mikva says that the federal government should become the employer "of last resort," but John B. Anderson (R., Rockford)does not want any further government burden on"the natural productivity of the economy. A. A Rayner, Jr.(R., Chicago) and Matthew Ryan (D.,Washington) are willing to consider government as an employer to prevent personal dehumanization
22 / October 1976 / Illinois issues
An alternative philosophy which would require proof of citizenship for employment was offered by Edwin L. Frank (D., Hoffman Estates)." Approximately two and one-half million illegal aliens," he says, "are gainfully employed without contributing to their share of the nearly $13 billion in services they receive annually. " These persons, Frank feels, could be given short-term public service jobs. Other ideas recommended for reduced spending include the implementation of a youth work-school program with a semi military format to curtail violence, the prison population and related costs, by Rayner; introduction of zerobase budgeting for greater control of government spending and the elimination of unnecessary bureaucracy, by Martin A. Russo (D., South Holland); a five-year extension of federal revenue sharing according to the present formula, by Buikema; adoption of an overall economic policy to reduce the percentage of income that government spending takes from individuals, by John F.Urbaszewski (R., Chicago), and a $50 billion cut in the $95 billion subsidy budget, by John Craver(D., London Mills).
Frank Annunzio (D., Chicago) and Paul Findley (R., Pittsfield) both stress that economizing measures are vital for reducing a national debt that is said to already equal one-half of the Gross National Product (GNP). While crediting the Congressional Budget Office for eliminating piecemeal appropriations, Findley still contends that the current $50 billion plus deficit has to be eliminated so the new budgetary process can work effectively. Annunzio stresses that existent government-business competition fostered by the national debt has resulted in higher interest rates and inflation. " No one is trying to say that reducing government spending is an answer to all our economic woes," Peter G. Prine as (R., Carbon-dale) noted, "but rather that it is the necessary first step to curing them. " He labels government's 42per cent spending rate as "excessive."
2. Another area of major concern to the candidates was the application of government incentives to foster a better business climate in the private sector. Citing a possible $16 billion increase in tax revenues from the creation of one million jobs, Marilyn D. Clancy (D., Oak Park) also noted that welfare benefits would be reduced by some $2 billion. This, she contends," is a sound investment with a good return for our citizens' psyches as welt as our actual physical needs. "Suggestions for achieving this, though, vary.
Frank, for example, wants to give businesses tax incentives in return for capital investments which create new jobs or enable them to compete for and expand foreign market operations, but Ryan wants to revoke and Buikero a seeks to restrict government incentives to American capital being invested abroad. Hall contends that government must make industrial assistance programs available to private firms to supplement any new government-created jobs, while Anna Wall Scott(D., Urbana) wants to give additional money to areas creating employment. Henry J. Hyde (R.,Park Ridge) feels that favorable tax incentives would allow industry to expand, invest in new equipment, increase production, and ultimately, create more jobs. Enforcement of competitive pricing and wage controls in the oil, steel and automotive industries was suggested by Ronald A.Rodger (D.. Tinley Park). He also thinks that antitrust laws should be strengthened.
3. The need to determine if every government program justifies its cost was also mentioned by some of the respondents when a reordering of funding priorities was discussed. Crane, for example, announced a proposal that would uniformly cut $52.5 billion from 14 major functional areas to encourage greater administrative efficiency. Not leaving out "any sacred cows, "he views this idea as " a starting point " from which further discussion and action can develop. Urbasiewski thinks that the priority issue revolves around the question of present need. Citing the Civil Aeuronautics Board as one example of"many old programs which are no longer important," he contends that "several hundred million dollars " could be allocated to health, education and other vital programs through its termination.
Other suggestions include the adoption of "sunset laws" for all government agencies(Rodger), reduction in federal impacted school aid and abolishment of social welfare programs that are not meeting their expectations (Buikema); reduction of defense spending (Scott and Craver)and development of a system to determine the "nation's fat" and subsequent ways to" work it off"(Thomas Joseph Wajerski, R., Chicago). Wajerski feels, though, that the national economy is improving but that inherent variables produce a different assessment each day.
Continued on page 25.
October 1976 / Illinois Issues / 23
4. Several of the respondents indicated that a structural reorganization of government agencies was also needed to save revenue. Calling for action to "debureaucratize" and consolidate duplicating agencies. Tom Railsback (R., Moline) has established a House Budgetary Committee to coordinate budget considerations. Crane wants amore sweeping change that would involve the elimination of several regulatory agencies which he feels are "counter productive for the business-man, expensive for the consumer and hard on taxpayers," These regulations, he says, are costing she average American family $2,000 a year.
Program reform was another area of concern. Focusing on public aid, Tom Corcoran (R.,Ottawa) and Scott believe that increased federal financial responsibility for portions of the welfare system could result in more efficient operation. Buikema particularly wants changes in the food stamp program to remove artificial eligibility, close loopholes stop fraud and error rates, and review the funding formula. He believes such action would stop " the trend of extending benefits to the middle class. " From a different perspective, RODGER WANTS TO end welfare and replace it with a work program. Other reform measures include the abolishment of any programs which restrict the economy or benefit special interest groups(Urbaszewski), and the creation of a new Hoover Commission to review all Defense Department spending for waste without threatening national security (Buikema).
Prineas also feels that officials must become more "truthful" for government to operate more efficiently. He feels government terminology and the truth are not always synonymous. "When government says 'tax cut,' what they really mean is smaller increase in taxes,'" Prineas states. He blames this "interpretation" for the public's declining confidence in government and its leaders.
5. Taxation was the final subject discussed by some of the candidates. All of these respondents felt that a reform of current taxing structures was needed to close existing loopholes that are believed to benefit the wealthy. Buikema feels that this can be best accomplished by the enactment of a minimum income tax to ensure that all parson spay an equitable per cent of their income to the federal government. Prineas also wants federal tax laws altered to " stop the federal government from getting a greater share " of individual income. Scott, in addition, would consider a negative income tax arrangement. She. feels this system could make additional funds available for welfare programs without a tax increase.ž
October 1976 / Illinois Issues / 25