Policy Luncheon, February 26, 1991
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lead_400_015_all_tr.txt - Transcription (Scripto)
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- 6 Pages
- File Name (Dublin Core)
- lead_400_015_all
- Title (Dublin Core)
- Policy Luncheon, February 26, 1991
- Date (Dublin Core)
- 1991-02-26
- Date Created (Dublin Core)
- 1991-02-26
- Congress (Dublin Core)
- 102nd (1991-1993)
- Policy Area (Curation)
- Congress
- Record Type (Dublin Core)
- schedules (time plans)
- Rights (Dublin Core)
- http://rightsstatements.org/vocab/CNE/1.0/
- Language (Dublin Core)
- eng
- Collection Finding Aid (Dublin Core)
- https://dolearchivecollections.ku.edu/index.php?p=collections/findingaid&id=26&q=
- Physical Location (Dublin Core)
- Collection 007, Box 400, Folder 15
- Institution (Dublin Core)
- Robert J. Dole Institute of Politics, University of Kansas, Lawrence, KS
- Archival Collection (Dublin Core)
- Robert J. Dole Republican Leadership Collection, 1985-1996
- Full Text (Extract Text)
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x
(the following line is underlined)
SCHEDULE FOR THE WEEK OF FEB. 25, 1991
(the following line is underlined)
TODAY, TUESDAY, FEB. 26
THE SENATE WILL RECONVENE AT 2:30 P.M. TODAY, AND AT 3:00 IT IS EXPECTED THAT THE SENATE WILL BEGIN CONSIDERATION OF S. 419, THE R.T.C. FUNDING BILL. SEVERAL AMENDMENTS ARE EXPECTED TO BE OFFERED, THEREFORE, VOTES COULD OCCUR DURING TODAY'S SESSION.
(the following line is underlined)
WEDNESDAY, FEB. 27
RESUME CONSIDERATION OF THE R.T.C. BILL. VOTES CAN BE EXPECTED TO OCCUR.
(the following line is underlined)
THURSDAY, FEB. 28
FOLLOWING CONSIDERATION OF THE R.T.C. BILL, THE SENATE COULD CONSIDER THE COMMITTEE FUNDING RESOLUTION. AMENDMENTS ARE EXPECTED TO BE OFFERED, THEREFORE, VOTES CAN BE EXPECTED TO OCCUR.
(the following line is underlined)
FRIDAY, MARCH 1
IT IS UNCLEAR AT THIS POINT WHETHER THE SENATE WILL BE IN SESSION, HOWEVER, NO VOTES WILL OCCUR DURING FRIDAY'S SESSION OF THE SENATE.
(end of page 1)
(page 2)
(this sheet is marked-up and annotated with blue ink pen)
POLICY LUNCHEON AGENDA
(the following line is underlined)
Tuesday, February 26, 1991
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Schedule:
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1. RTC Funding / *MAY BE DELAYED BECAUSE OF METZ*
◦ Up to 15 amendments may be offered
◦ Possible filibuster by Senator Metzenbaum
(the following line is underlined)
2. Committee Funding Resolution
◦ Possible amendments to reduce at least:
Foreign Relations (17% increase)
Judiciary (4.2% increase)
Finance (25% increase)
(the following line is underlined)
3. Persian Gulf Supplemental
◦ Hearings began this morning. Byrd wants Floor action this week, and wants Bill kept (underlined) clean (end underlined). Funding for Israel likely to be (underlined) big (end underlined) issue.
4. Alexander Nomination: May be ready this week
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Other Issues:
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1. Troop Benefits
• Republican input to Senator McCain critical to prevent "Democrats Agenda" from being adopted.
(the following line is underlined)
2. TRADE FAST TRACK Authority
• ADMINISTRATION WILL BE SENDING UP REQUEST. BELIEVE CRITICAL TO SUCCESSFUL COMPLETINO OF GATT AND MEXICO NEGOTIATIONS
(end of page 2)
(page 3)
10AM
2/26/91
Possible Amendments to the RTC Funding Act
1. Kerrey (Neb.) Would expand the Oversight Board to include 3 more independent private sector members and the FDIC Chairman. The Chairman of the new board would be an independent member. The RTC board would be abolished.
2. Metzenbaum. Would reduce funding to $10 billion. He may also want to use considerable floor time.
3. Harkin. Would reduce funding to $10 billion, require an analysis of who gained from the thrift mess, require ideas to make the RTC more efficient, and require a discussion of revenue options to pay for the cleanup.
4. Graham. Would seek to stimulate a faster pace of RTC asset sales by linking the availability of half of the $30 billion to the amount of asset sales.
5. Dodd. Would require the Treasury to report on existing authority of the government to provide direct capital infusion into banks and provide further analysis of the credit crunch.
6. Akaka. Would require an inventory of properties with special natural, cultural, recreational, or scientific significance; require suitable maintenance; and assist governmental agencies and nonprofit groups in purchasing them.
7. Daschle. Would require GAO to prepare an analysis of who benefits from RTC payments, focusing on the income distribution of insured depositors. Future requests for RTC funding would need to propose a financing method with the costs having a similar distribution to that found by the GAO.
8. Kassebaum. Would encourage the RTC to hire private management and sales firms to handle properties that are still not sold 60 to 120 days after entering a receivership.
9. Chafee. Would expand the 1990 Crime Act to cover fraud affecting credit unions and private insurance funds. Would also require Justice Department to assist state and local prosecutors to evaluate private insurance funds.
10. Chafee. Would provide financial assistance to states with a collapsed private deposit insurer.
11. Heinz. Would give the FDIC priority of claims. This has passed the Senate 8 times and been rejected by the House each time.
12. Administration. Limits indemnification provision of the RTC Funding Act.
(end of page 3)
(page 4)
Economic Indicators
February 26, 1991
U.S. Senate Republican Policy Committee
Don Nickles, Chairman
Rick Lawson, Staff Director
U.S. EXPORTS SURGE IN 1990
Trade figures for 1990 are in, and they show that U.S. exports continue to grow, as they have since 1985. (bolded) Merchandise exports totaled $394 billion in 1990, an increase of $30 billion or 8.3% over 1989. (end bolded)
The International Trade Commission estimates that $1 billion in exports creates about 20,000 jobs. If that is the case, (bolded) over a half-million jobs were created in the export sector last year.
Exports grew faster than imports 220 in 1990, causing the merchandise 200 trade deficit to shrink. (end bolded) The trade 1982 1983 1984 1985 1986 1987 1988 1989 deficit for 1990 was $101 billion, down from $109 billion in 1989. The deficit would have fallen to $91 billion if oil import prices had remained constant, according to the Commerce Department. In any event, the improvement is welcome news. The trade deficit has decreased every year since 1987, when it peaked at $157 billion.
(bolded) Export growth is expected to continue in 1991. (end bolded) Why is the export sector doing so well? First, the value of the U.S. dollar is very competitive on foreign exchange markets. Second, and more importantly, U.S. manufacturers have maintained an outstanding productivity growth record. Manufacturers are reaping the rewards of their extensive investment of the 1980s. Productivity, measured as output per hour worked, has grown 42% for manufacturing since 1982, compared to just 12% for all U.S. business. Making all workers more productive and efficient is the key to rising standards of living, and the manufacturing sector is the shining star of the U.S. economy.
(line graph labeled "U.S. MERCHANDISE EXPORTS"; x-axis: years from 1982 through 1990; y-axis: billions of dollars from 200 through 400 billion; graph shows a general increase beginning in 1983)
(bar graph labeled "MANUFACTURING AND BUSINESS PRODUCTIVITY GROWTH"; x-axis: years from 1982 through 1990; y-axis: percent change from previous year; graph shows a general increase in manufacturing productivity growth throughout all years, an increase in all business productivity growth from 1983 through 1988, and a decrease in all business productivity growth in 1982 and from 1989 through 1990
(end of page 4)
(page 5)
OTHER ECONOMIC INDICATORS
• (bolded) Real gross national product (end bolded) declined at a 2.1% annual rate in the fourth quarter of 1990. Negative growth is expected in the first quarter of 1991, also. Most analysts of the "Blue Chip" Economic Indicators are expecting a relatively mild recession, with a recovery occurring by June. Total GNP was $5.52 trillion (current dollars, seasonally adjusted annual rate) in the fourth quarter of 1990. [Commerce Dept.]
• (bolded) The unemployment rate (end bolded) edged up 0.1 points to 6.2% in January 1991. According to the household survey, 116.9 million persons were employed and 7.7 million were unemployed. The number of unemployed persons has risen by 1.2 million since January 1990. [Labor Dept.]
• (bolded) Personal income (end bolded) grew 0.7% or $34 billion to $4.75 trillion in December 1990 (seasonally adjusted annual rate). Most of this increase came from a rise in wage and salary income. [Commerce Dept.]
• (bolded) Inflation (end bolded) has cooled somewhat after last fall's energy price increases. The (bolded) consumer price index (end bolded) rose 0.4% in January 1991. Declines in energy prices were offset by increases in food, apparel and housing. The (bolded) producer price index (end bolded) declined 0.1% in January, due mainly to declines in energy and food prices. This index also fell in the preceding month, by 0.6%. These declines should be reflected in a lower CPI in the months ahead. [Labor Dept.]
• (bolded) The industrial production index (end bolded) fell 0.4% to 106.5 (1987=100) in January 1991, the fourth consecutive monthly decline. Between January 1990 and January 1991, the index declined 0.9%. [Federal Reserve]
• (bolded) Durable goods orders (end bolded) rebounded by 4.4% or $5.1 billion, to $121.6 billion (seasonally adjusted) in December 1990. The gain was welcome news after a 10.1% decline the previous month. [Commerce Dept.]
• (bolded) Business inventories (end bolded) fell 0.7% to $810.7 billion in December 1990 (seasonally adjusted). Managing inventories during a recession is important because a buildup is costly to finance and signals a lack of demand for the production of goods. Thus far, the level of inventories is considered to be acceptable. [Commerce Dept.]
• (bolded) Housing starts (end bolded) fell 12.8% to 850,000 in January 1991 (seasonally adjusted annual rate). This level is the lowest since 1981. Housing starts are down 45% since December 1989. [Commerce Dept.]
• (bolded) Retail sales (end bolded) fell 0.9% to $148.2 billion in January 1990. A 4.4% drop in auto sales was largely responsible for the decline. [Commerce Dept.]
• (bolded) Interest rates (end bolded) have been falling over the past couple of months. Three-month Treasury bills were yielding about 6.0% and 30-year Treasury bonds about 8% in mid-February. Short term rates have fallen over 1-1/2 points and long term rates are down a full point from six months ago. The prime lending rate is currently 9.5%. [Treasury Dept. and Federal Reserve]
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Staff Contact: Dale Jahr, 224-2946
(end of page 5)
(page 6)
Economic Indicators
February 26, 1991
U.S. Senate Republican Policy Committee
Don Nickles, Chairman
Rick Lawson, Staff Director
THE U.S. ECONOMY IN THE GLOBAL SETTING
(the following line is italicized)
Throughout the 1980s, critics sought to discredit Republican economic policies in many ways: the U.S. was losing its competitive edge, our foreign competitors were more productive than we were, our industrial base was eroding. It was easy for our opponents to lodge accusations before the results were fully understood. The facts are in now, and the decade of the 1980s found the United States to be in excellent standing relative to our foreign competitors. The following talking points were prepared by the Council of Economic Advisors.
(the following line is bolded)
The United States remains the largest and most productive economy in the world.
• With less than 5 percent of the world's population, the United States produces about 25 percent of the world's total output.
• The U.S. economy is more than twice the size as the next largest economy, that of Japan.
• U.S. productivity is also higher than in other major industrialized nations; in 1989, productivity -output per hour worked - in Germany and Japan was only about three-fourths of that in the United States.
(the following line is bolded)
The U.S. economy is not "deindustrializing."
• Manufacturing productivity grew at a 3.6 percent rate during the 1980s, versus 1.4 percent for 1973-1979.
• Manufacturing's share of U.S. output actually increased from 22.5 percent in 1977 to 23.3 percent in 1990.
• In 1989, the U.S. accounted for a larger share of the industrial output of the countries of the Organization for Economic Cooperation and Development (OECD) - the 24 largest industrial market economies - than it did in 1970.
(the following line is bolded)
The United States is the world's largest exporter of goods and services.
• Real exports of goods and services increased an average of over 12 percent annually from 1986 to 1990, and total exports now exceed $670 billion a year.
• The merchandise trade deficit declined by 28.1 percent from 1987 to 1989. In the first 11 months of 1990, the deficit in merchandise trade was 6.9 percent lower than for the same period in 1989.
(the following line is bolded)
Merchandise trade balances with the European Community (EC) and Japan have improved substantially.
• The $22.6 billion merchandise trade deficit with the EC in 1986 became a $6.1 billion surplus in 1990.
• For 1990, the bilateral merchandise trade deficit with Japan was down 16 percent from 1989. The deficit for this period improved by $8 billion, from -$49.1 billion to -$41.1 billion.
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Staff Contact: Dale Jahr, 224-2946
(end of page 6)
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