Chapter Ten: The Reagan-Bush Years

The 1980s began with nothing unremarkable. The voters, lulled by Reagan's soothing non sequiter, "There you go again, Jimmy," as Carter made a campaign point, elected a movie actor as President of the United States. Ronald Reagan got 50.7 percent of the popular vote but 489 electoral votes to 49 for the incumbent Jimmy Carter. He got 41.0 percent of the popular vote. To the dismay of the far right of the Republican Party, George Bush was nominated as Reagan's vice-presidential running mate. In the primaries leading up to the party convention, Bush described Reagan as preaching "voodoo economics," sometimes known as supply side economics.

When Reagan took office on January 20, 1981 he promised to reverse the trend toward big government and to rejuvenate the economy by implementing this untested theory of supply side economics. By cutting taxes, Reagan claimed, the economy would stimulate so much growth that tax revenues would actually rise. In May, 1981, Congress approved legislation implementing this theory. Revenue did rise with normal economic expansion, but Reagan went on a spending spree, particularly for national defense. According to the Statistical Abstract of the United States for 1996, the gross federal debt of the country for the fiscal year ending in October,1980 was $908,503,000,000 (billion). For the fiscal year ending in October, 1992 the gross federal debt was an estimated $4,002,136,000,000 (trillion). This was the debt inherited by President Clinton when he took the oath of office on January 20, 1993.

On the same date in 1981, Algerian aircraft left Teheran in Iran with fifty-five hostages held at the U.S. Embassy by Iran for 444 days. Carter had frozen Iranian assets in the United States and negotiated endlessly with their captors. The release of the hostages came too late to help Carter get reelected, but it did help Reagan to begin his administration on a triumphant note. There may be no better way to exalt Reagan's accomplishments while in office than by reading his own words.

One may browse the Internet and find a Home Page for Ronald Reagan. According to the text, it had been "visited" 67678 times since March 24, 1995. Apparently, the Great Communicator himself did not edit the text. In a section dedicated to praising the Standard of Living, the text states: "Poverty rates also show a marked improvement during the [1981-89] expansion, despite what you may have heard from the liberal media." According to the Statistical Abstract of the United States for 1996, the number of people (white, black, and Hispanic) below the poverty level increased in almost every year between 1981 (31.8 million) and 1992 (39.3 million). Children under 18 years of age were hardest hit. The redistribution of both wealth and income became more and more skewed in favor of a diminishing number of people. The rich got richer and the poor got poorer.

During his eight years as president, Reagan made certain the Supreme Court was in conservative hands. While Nixon appointed William Rehnquist, it was Reagan who elevated him the position of Chief Justice. Reagan also appointed Antonin Scalia, Sandra Day O'Connor, and Anthony Kennedy. Later President Bush appointed David Souter and Clarence Thomas. In the twelve years from 1980 to 1992, either Reagan or Bush appointed about 60 percent of the federal judiciary -- courts of appeal, district courts, the Tax Court and the Court of Claims.

In 1995, Occidental Chemical Company agreed to pay $129 million in cleanup costs for Love Canal, a site near Niagara Falls in New York. The settlement agreement all but ended sixteen years of litigation. Actually, toxic waste had been dumped in Love Canal as far back as World War II. Homes had been built on the polluted site and sold to unsuspecting buyers. With the discovery of hazardous and toxic waste, the residents had to move out. The Federal Emergency Management Agency handled the residential relocation, and it will receive $27 million under the settlement agreement approved by the District Court. The Environmental Protection Agency will receive the rest for money spent on cleanup, $102 million.

Corporate America, its stockholders, and its officers were the principal beneficiaries of the Reagan-Bush years. Possibly the greatest redistribution of wealth and income in American history occurred in this twelve-year period.

In the 1960s and 1970s, Congress enacted laws to protect the environment from further degradation. The National Environmental Policy Act, the Clean Air Act, the Clean Water Act, the Endangered Species Act, the Toxic Waste Act, and the Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA)were only six such laws. CERCLA established standards to determine liability for the costs of pollution cleanup. Litigation to compel corporate America to comply with these laws has occupied the time and energy of the federal courts and environmental organizations ever since 1969.

With a few exceptions, corporate America sued to avoid compliance. In cases reaching the Supreme Court, it often narrowed the reach of environmental laws. Vermont Yankee Nuclear Power Corporation v. Natural Resources Defense Council,Inc., 435 U.S. 519 (1978). There, it held that while the National Environmental Policy Act established "significant substantive [environmental] goals for the nation," it, in fact, only "imposed responsibilities that were essentially procedural." In another case, Agins v. City of Tiburon, California, 447 U.S. 255 (1980), landowners appealed a decision of the California Supreme Court that held zoning restrictions did not represent a Fifth Amendment "taking." The Supreme Court affirmed, noting that "the determination that governmental action constitutes a taking is, in essence, a determination that the public at large, rather than a single owner, must bear the burden of an exercise of state power in the public interest."

In 1973, Congress enacted the Endangered Species Act. It protects those birds, animals, and other creatures against threatened extinction. The snail darter is an endangered species and no action, such as the construction of a dam, may be taken that would threaten the snail darter with extinction. In Tennessee Valley Authority v. Hill, 437 U.S. 153 (1978) the Supreme Court held it could not defer to an administrative agency's expertise to independently weigh the costs and benefits of preserving the snail darter compared to the construction of a dam. Only Congress may create exceptions to an absolute rule.

Ever since, corporate America has tried to weaken the Endangered Species Act by amendment or repeal. During this period, these same interests have tried to find a way around compliance. The northern spotted owl's journey through the courts is a symbol of what it takes to compel compliance. In one case, a federal judge in 1991 described a "remarkable series of violations of the environmental laws" by the federal agencies entrusted with administering public forests of the United States and protecting species against extinction. Seattle Audubon Society v. Evans, 771 F. Supp. 1081, 1089 (W.D, Wash. 1991), affirmed at 952 F.2nd 297 (9th Cir. 1991). During the Bush years, the fight to secure compliance involved a shadowy political battle in Congress. Corporate America sought to obtain exemptions from laws the courts found the federal agencies were violating.

During the Reagan-Bush years, the Bureau of Land Management, the U.S. Forest Service and the Fish and Wildlife Service colluded with various members of corporate America to allow clear-cutting of old growth timber. At the same time, corporate America and these government agencies resisted every effort to list the northern spotted owl as threatened within the meaning of the Endangered Species Act (ESA).

In 1995, the Supreme Court finally agreed that the Fish and Wildlife Service adopt a regulation in 1975 that protected both the spotted owl and red-cockaded woodpecker. Babbitt v. Sweet Home Chapter of Communities for a Greater Oregon, 115 S. Ct. 2407 (1995). Those who brought the action were small landowners, logging companies and families dependent on the forest products industries in the Northwest and Southeast area of the country. Their complaint alleged that application of the regulation defining habitat modification as a prohibited act had injured them economically. They had challenged the statutory validity of Secretary of the Interior's regulation defining "harm." Both species were finally protected by law. The Supreme Court held only that the regulation defining "harm" was reasonable and included modification of the habitat of the spotted owl and the red-cockaded woodpecker.

During the time Reagan was associated with Hollywood, he was a member of the Screen Actors Guild and appeared in B-movies like One More for the Gipper in the 1930s. He also appeared in Star Wars, another B-movie of the 1939-40 series of like mass appeal. In this one, Reagan played the part of a Secret Service agent in a film with a contemporary ending. A mystery ray gun capable of shooting enemy aircraft down was the secret weapon protected by the character played by Reagan.

Some historians claimed that fantasy weapons like the ray gun supplied Reagan with the missing link to his Strategic Defense Initiative (SDI) in 1985, often described as "Star Wars." This initiative cost taxpayers billions of dollars with nothing to show for all this federal largesse to keep "the Evil Empire" of the old Soviet Union at bay. This phrase was used as the United States refused to concede it had lost the war in Vietnam; through violence and masculine strength, defeat could be redeemed, transformed into victory in other larger fields of battle. In Rambo, Sylvester Stallone as the hero protecting the children of the next generation from some technological horror. Like everything Hollywood produced, the bottomline was money, not any cultural message. And people nationally are upset by the violence of television and the sex of films corrupt our "values." And Star Wars is not yet dead. In December, 1995, conservatives have resorted to televised ads to persuade Congress to revive key elements of the Strategic Defense Initiative (SDI). In fact, the Senate has passed a measure already approved by the House authorizing the Pentagon to spend $438 million to develop an SDI system by 2003. Even in 1983 when Reagan offhandedly proposed this system, it included space-based sensors capable of detecting enemy warheads speeding toward the United States high above the atmosphere, as well as heat-seeking missiles that could destroy them. The estimated cost of an SDI system by 2002 was $40 billion. However, $30 billion had already been spent between 1983 and 1995.

Reagan gave his infamous "Evil Empire" speech to the House of Commons in London on June 8, 1982. The text retrieved from The Reagan Home Page on the Internet appears to have been sanitized by removal of the phrase. However, its title incorporated it: "The Reagan Home Page: Evil Empire Speech." Reagan was in London to sell the idea of reducing the number of strategic ballistic missile warheads.

What I am describing now is a plan and a hope for the long term -- the march of freedom and democracy which will leave Marxism-Lenism on the ash heap of history as it has left other tyrannies....And that's why we must continue our efforts to strengthen NATO even as we move forward with our zero-option initiative in the negotiations on intermediate-range forces and our proposal for a one-third reduction in strategic ballistic missile warheads.

In 1968, the United States signed the Nuclear Non-Proliferation Treaty (NPT), and it was ratified by the Senate. Article I states in part: "Each nuclear-weapon State Party to the Treaty undertakes not to transfer to any recipient whatsoever nuclear weapons or other nuclear explosive devices ....to any other state. The treaty was to last for 25 years, but Article X of the NPT allows any party to withdraw from the treaty if it decides "that extraordinary events related to the subject matter of this treaty have jeopardized the supreme interests of its country." In 1972, the United States and the then Soviet Union signed SALT I, and one of its most important components was the Anti-Ballistic Missile Treaty which was ratified by the Senate after President Nixon and Leonid Breszhnev, General Secretaty of the Communist Party, Soviet Union had both signed SALT I.

The ABM treaty regulated anti-ballistic missiles that theoretically could be used to destroy incoming intercontinental ballistic missiles (ICBMs). The treaty limited each side to only one ABM deployment site and 100 interceptor missiles. These limitations prevented either party from defending more than a small fraction of its entire territory, and thus kept both sides subject to the deterrent effect of the other's strategic forces. Not by coincidence, the entire nuclear deterrence system bore the acronym, MAD, for mutually assured destruction. In the closing days of 1995, a group of conservative Republicans threatened to upset the uneasy equilibrium of the ABM Treaty and add complications to securing an unconditional renewal of the NPT. They have recommended renewed research and deployment of the Reagan-inspired Star Wars Initiative. Congress sent President Clinton a defense appropriation measure that Clinton vetoed. It contained monety for Reagan's Star Wars proposal.

In his veto message, Clinton stated that an Anti-Ballistic Missile of the sort proposed by Star Wars proponents, would be a violation of the ABM Treaty. In turn, this fact could in turn trigger a withdrawal from the Nuclear Non Proliferation Treaty (NPT) on the part of Moscow. Newly-elected members of the Duma and militant Communists like General Alexandr Lebed applauded on the sidelines. Secretary of Defense William Perry addressed the threa t problem in testimony before the Senate Foreign Relations Committee on March 1, 1995. His testimony appears in Defense Issues, Vol. 10, Number 25. In part, the Secretary stated:

With the demise of the Soviet Union and the end of the Cold War, the world has begun to move away from that dangerous state of affairs. The nuclear threat to the United States was now greatly reduced and of a different form. Cooperative efforts to reduce and eliminate nuclear weapons in the former Soviet Union have contributed greatly to U.S. security. These developments, however, are neither complete nor irreversible. Russia's transformation to a stable democracy and a market economy is still in its early stages. The Russian arsenal remains the only force capable of threatening U.S. national survival. Furthermore, the spread of nuclear and other weapons of mass destruction now poses a larger and growing threat to U.S. and global security. The former Soviet Union is a potential source of nuclear material for states eager to develop their own nuclear capability. We must avoid a return to the large arsenals of the Cold War and prevent proliferation of such weapons.

SDI, if expanded, could produce nuclear instability. The development and deployment of the Star Wars anti-ballistic missiles or space-based sensors to direct them to any incoming ICBM would threaten the other members of the nuclear club. It seems very much as though some of the proponents of Star Wars technology actually believed the disinformation sent to three presidents by tainted CIA national estimates.

In 1985, Aldrich Ames of the CIA went to work for the KGB. For at least ten years, until his conviction for espionage in 1995, Ames sold Moscow nearly every secret about American espionage activities in Russia. With his help, the KGB insinuated volumes of false information into the United States intelligence-gathering system, some of it reaching, as the media suggest, three past presidents of this country. Some of this information heavily influenced American defense spending and foreign policy decisions during the 1980s. As misleading information spiralled into the agency from sources controlled by the KGB, CIA analysts passed it up the line to policy makers without any disclaimers, even in cases where the sources were knowingly tainted. It would be difficult to imagine a more effective way of incapacitating the CIA and blinding the American government. There is no publicly-disclosed report on the nature and extent of Ames' treachery; nor is there likely to be one, given the secrecy in which the CIA operates.

Reagan could serve only two terms as president by virtue of the Twenty-Second Amendment to the Constitution adopted in 1951. However, his vice-president was George Bush who had every intention of running for the office of president in 1988. The Democrats nominated Michael Dukakis, a successful governor of Massachusetts. Bush retained Lee Atwater and Roger Ailes as campaign strategists. They relied on what the mainstream press described as "sleazy gutter politics." This team wasted no time on the niceties of political conduct on the campaign trail. Willie Horton was a convicted killer. Under Massachusetts law, Horton could be furloughed and had been on eight different occasions without incident. On the ninth furlough he was arrested in a stolen car and charged with rape of the car owner's fiancé. Atwater made certain that Dukakis got saddled with the blame for Willie Horton's crime. Dukakis was seen as soft on crime. Horton was black, so his crime became almost a nationwide household word as various writers spread the story. The Bush campaign aired a "revolving door justice" television ad and kept the pressure on Dukakis right up through the presidential election campaign in November. Bush got 53.4 percent of the popular vote and 426 electoral votes. Dukakis trailed badly and got only 111 electoral votes with 45.6 percent of the popular vote. George Bush was sworn in as president on January 20, 1989. Dan Quayle was his vice president.

President Bush had been the Director of the Central Intelligence Agency in the 1970s and probably should have foreseen the collapse of the Soviet empire and communism itself. The incumbent General Secretary of the Communist Party, Konstantin Chernenko, died in March, 1985. Mikhail Gorbachev was poised to take over and was sponsored by Andrei Gromyko, a thorough Stalinist. Gorbachev openly argued that Lenin was to be admired; yet Gorbachev was welcomed by Bush like a new star in the heavens. General Dmitri Volkogonov, formerly propaganda chief of the Red Army, had quite different views about both Lenin and Stalin. They appear in his books, Stalin: Triumph and Tragedy published in 1995 and another about Lenin published in 1994, Lenin: A New Biography. Volkogonov described both as monsters who killed to maintain their own power, but it was Lenin was really the father of Russian terrorism, merciless and totalitarian. Lenin never lived long enough to have authorized the killing of the royal family and thousands of others. Lenin certainly knew about the regicide. He died in 1923. Stalin died in 1953 and must accept the responsibility of authorizing the killing of millions of Russians. Gorbachev's belief in party reform via heresy in 1988 -- he advocated perestroika (restructuring) -- clearly presaged the collapse of communism. The Soviet Union collapsed in 1989.

Mikhail Gorbachev, who was popular in the United States, lasted about five years. His successor as General Secretary of the Communist Party was Boris Yeltsin. Actually, his title was changed to president after a free election in which Yeltsin was elected by a significant margin. Late in 1995, Yeltsin appointed Yevgeny Primakov as Foreign Minister. Primakov was an Arabic-speaking spy who worked with the KGB and advanced in power by riding the right horses. One of them was Saddam Hussein who wanted United Nations sanctions against Iraq lifted so he could buy Soviet arms with cash from sales of Iraqi oil. Further elections in Russia occurred in June, 1996, and some knowledgeable people predicted civil war if Yeltsin lost.

Right now, China is Russia's biggest arms customer. It uses hard currency from trade with the United States to buy tanks, aircraft and other military hardware from Russia. Neither China nor Russia has a human rights policy, but Russia will use its political clout to head off or veto any condemnation of China's abysmal record in human rights. Primakov may succeed bringing about a new and cordial relationship between Moscow and Beijing. In 1955, Mao split with Moscow, calling Khrushkev a revisionist. Russian nationalists may yet take Russia back to Stalinist orthodoxy. Fortunately, General Dmitri Volkogonov has written a detailed account of Stalin's bloody régime.

Volkogonov had access to the highest sources in writing his books, and Gorbachev had the same or better access to intelligence sources, including KGB files. Presumably he used these sources in writing his own book, Perestroika: New Thinking published in 1988. This book talked in terms of restructuring and glasnost, openness in public affairs. Both concepts in reality contradicted the very basis of party rule. And soon, Gorbachev paid the price.

David Pryce-Jones commented on this situation in his book The Strange Death of the Soviet Empire published in 1995. "Gorbachev's reforms were in the direction of law and accountability," he wrote. "By that yardstick, the KGB would stand exposed as the criminal organization that it was, not only for its terrorization in the past, but for its position above the law in the present. The last chairman of the KGB, Vladimir Kryuchkov, duly joined the other conspirators in the coup in August, 1991. Its purpose was to restore the absolute power of the [Communist] Party and the secret police."

One might think that the Central Intelligence Agency was capable of analyzing the massive documentation behind a coup, but it was probably occupied elsewhere. Or President Bush was too busy organizing his reelection campaign during 1992 after the anti-Gorbachev coup. Bush's New World Order was very much on his mind, a society dedicated to peace and security, freedom and the rule of law. Apparently, the president forgot that he had authorized the attack on Panama in 1989 in violation of international law. And the Kremlin took advantage of the American presence in the Persian Gulf War with all its complexities to order a crackdown in the Baltic states heading off any third party challenge to this remaining part of its empire.

The Soviet conspirators acted only after Central European countries had won their freedom from communist rule. East Germans, Poles, Czechs, Hungarians, Bulgarians, and Rumanians, for the most part, gained their freedom without violence. However, the elections in later years marked a resurgence of hardline Communists in Hungary and Rumania. East German elections occurred in 1990, and unsurprisingly, the Germans voted for reunification. It may have been a mistake. If one eliminates the make-work projects authorized in Bonn, unemployment in East Germany hovers around 50 percent in 1996. The great playwright, Václev Havel was elected president of Czechoslovakia, and Hungary had its first free elections in 1990. Poland's Solidarity movement rejected Communism overwhelmingly in 1990, though it surfaced again in 1995. In 1994, Slovakia negotiated its divorce from Czechoslovakia, and Havel presides over the Czech Republic.

Recovery from forty years of Communist rule in what was Czechoslovakia was difficult. The Russians left the environment in ruins. Prague's water and air are still polluted. However, in one area, book publishing, recovery has shown progress. Before 1989, the Czech distribution apparatus was choked with books published by and for Communists. Writers like Ivan Klima and Josef Skvorecky were graduates of the underground press who flourished during and after Communist censorship. Klima, for example, was Jewish and spent some time in a German concentration camp. That experience plus life under Communism shaped his writing as he explains in The Spirit of Prague. Skvorechy has written many books, of which Talking Moscow Blues may be the best. Communist censors, for reasons clear to no one, considered the saxophone a decadent musical instrument. Yet in this book, he writes about local orchestras either playing without the sax or fighting the censors. The American Booksellers Association sent representatives of the American publishing industry to Prague where, with individual help, they restored Czech publishing to good health. In 1994, a PEN International Congress convened in Prague with writers from all over the world in attendance.

The Cold War finally ended with the collapse of the Soviet Union in 1989. Without Force or Lies: Voices from the Revolution of Central Europe in 1989 edited by William M. Brinton and Alan Rinzler, told the story of this historical transition with essays by Andrei Sakharov, Václav Havel, Norman Manea, Reiner Kunze, G‰nter Grass, Adam Michnik, and many others in this book published by Mercury House in 1990. The press trumpeted the end of the Cold War, and politicians followed suit with talk of a peace dividend. George Kennan, however, offered a sober analysis in his book, At a Century's End: Reflections 1982 to 1995. He wrote that Cold War policies were carried out at a frightful cost to the American people.

We paid with forty years of enormous and otherwise unnecessary military expenditures. We paid through the cultivation of nuclear weaponry to the point where the vast and useless nuclear arsenal had become (and remains today) a danger to the very environment of the planet...

During the period of domestic readjustment to a peace time economy, Iraq's dictator, Saddam Hussein, attacked and occupied Kuwait on August 2, 1990. President Bush told the nation on television that Hussein's naked aggression could not be allowed to stand. Various resolutions of the United Nations Security Council established a framework within which Bush mobilized the West to evict Iraqi troops from Kuwait. After bombing Baghdad and Iraqi armed forces relentlessly, Bush ordered the coalition forces with token Arab units to advance on all fronts. His order was dated January 16, 1991. By February 28, 1991 Iraqi troops had been routed, and possession of Kuwait was restored to its corrupt monarchy.

The president ordered a cease fire leaving Iraqi forces in possession of aircraft, tanks, and artillery then used by Hussein to slaughter Kurds and Shi'ite Moslems within Iraq. Most of the weapons used in this genocidal killing were those dual use weapons -- civilian and military -- exported by American arms merchants. All these arms merchants needed was a permit of the Bush Department of Commerce. American helicopters were prominent on the list of permits disclosed by Commerce. Not long after the United States began withdrawing its forces from Saudi Arabia, the anti-Gorbachev coup ended in 1991 with his ouster and the accession of Boris Yeltsin. The American presidential election in 1992 was only a year away.

From a high approval rate of his performance in Iraq, George Bush rapidly lost ground in the polls. Voters had become more aware of domestic economic problems. Working America was losing ground to a recession that probably began in early 1990. Also, in the last twenty years, the rate of economic progress, as measured by the statistics of wages and family income, were gloomy. They showed that economic growth had slowed greatly compared with any time since the Civil War. Productivity -- the output of goods and services the economy produces per hour of work -- had declined from an annual average rate since 1870 of 2.25 percent to 1 percent in 1973, less than half of its historical rate. Thus, working America earned far less in the twenty years since 1973 than it would have with productivity at an historic low. Jeffrey Madrick goes into this problem in depth in his book The End of Affluence published in 1994 by Random House.Had productivity grown at 2.0 percent since 1973, a typical family of four would have earned an estimated $60,000 more a year than it did and more than $5,000 in 1995 alone. In fact, wages have stagnated since at least 1985.

In effect, the United States has two economies existing side-by-side, one poor or living close to the poverty line, the other working harder at lower pay just to stay ahead of inflation. A third economy consists of about 5 percent of the nation's population in 1995, about 13,000,000 people who own an estimated 65 percent of the income and wealth of the United States, perhaps more. Thousands, indeed hundreds of thousands of working Americans have been laid off in the last fifteen years since 1980, and those still working share a deep sense of unease and insecurity about their future.

In 1992, the actual presidential campaign featured George Bush, Bill Clinton, and Ross Perot. Clinton was elected with 43 percent of the popular vote of 104.4 million people and 370 electoral votes. Bush got 37.4 percent of the popular vote and 168 electoral votes. Perot got 18 percent of the popular vote and no electoral votes. The 1992 campaign will be remembered for many reasons; one of them was communications. During the campaign, Bill Clinton made extensive use of both radio and television talk shows on a scale never-before used. Curiously, Reagan and Bush were presidents during the period the communications infrastructure expanded at an exponential rate, but George Bush did not make use of the new digital communications available in 1992. Ronald Reagan, the Great Communicator, didn't need to; he was amiable and forgetful at times, but he was well liked. Bill Clinton promised a new covenant with the people, and voters believed him.

Domestically, and during the Reagan-Bush years, the 1980s also marked the beginning of truly massive entertainment conglomerates. In 1985, for example, News Corporation of America, founded by Australian magnate Rupert Murdoch took over the film and television operations of 20th Century Fox. A few years later, Sony Corporation acquired the Columbia Pictures and Tri-Star film companies, and shortly thereafter, Japan's Matsushita Electric Industrial Co. purchased MCA-Universal. Warner Communication, parent company of Warner Brothers, merged with Time, Inc. to become Time Warner, Inc. In 1987, Gulf+Western renamed itself Paramount and acquired Simon & Schuster, one of America's largest publishers of trade books. Random House was the other. In the early 1990s, Paramount was the target of a hostile takeover by QVC, a cable network, and Viacom, another cable network. Viacom prevailed, and the combination was Paramount Communications with its huge library of films. There is little doubt that technology drove all these business combinations. With the expansion of cable bandwidth -- more channels on both television and cable -- these companies had to have access to content to entertain viewers between televised sports, such as football, basketball, baseball, hockey, tennis, and golf. By the year 2000, entertainment broadly defined will probably be the largest industry in the United States.

This and other industries will be propelled by a technology that was familiar to only a handful of entrepreneurs before 1980. Thomas Watson of International Business Machines was one of them, and Bill Gates of Microsoft was another. In 1980, Compact Computer was no more than a gleam in someone's eye, but in ten years its sales of personal computers led the pack. IBM was in trouble, because of its corporate culture and its failure to see that the personal computer would someday be even more powerful than all but a few mainframe computers. Steven Jobs was one of the founders of Apple Computer Corporation which is showing signs of corporate aging, while Hewlett-Packard, founded in a garage in 1965, is now a giant.

Toward the end of the decade of the 1980s, multimedia technology surfaced. It represented a marriage of the telephone, film, and the computer. By using a Compact Disk-Read Only Memory (CD-ROM), a user could receive a combination of text, sound, photos, and video footage. Hardly anyone knew what to do with this new technology, and some book publishers were thinking of publishing the last book and closing down. It hasn't happened and won't; there will probably be some textbooks on CD -- ROMs. But no one wants to read fiction on a computer monitor or hear someone reading perfectly visible text as it scrolls across or down the screen. The CD-ROM has been used mostly for storing information. The Random House Unabridged Dictionary, Bowker's Books in Print Plus Reviews, and the Encylopedia Britiannica have all been reduced to one such medium, and there will undoubtedly be many more such uses. One of them is a history of the war in Vietnam on CD-ROM narrated by Dan Rather. It will have sound, video clips, photos, essays and articles from the New York Times with field dispatches and cultural icons of the era.

Bill Clinton and those who close to him during the 1992 campaign understood the high impact of effective communications in the new media. Just before the election, for example, his staff produced and sold a CD-ROM with video clips of key scenes in the campaign beginning before the New Hampshire primary of February, 1992. Clinton saw himself as the agent of change moving the economy closer to the American dream. The American dream meant an economy in which people who work hard can get ahead and each new generation lives better than the last one. It also meant a political system in which most people feel they can affect public decisions and elect officials who will speak for them. In her 1992 book, Reviving the American Dream: The Economy, the States & the Federal Government, Alice M. Rivlin wrote:

In recent years, the dream has been fading. Americans are worried about their economic future and they should be. For nearly two decades, the much-vaunted American economy has been performing below par. Wage earners have found their take-home pay buying less. Families have kept up their standard of living by working more hours and having both spouses in the work force. Young people look at their job prospects and wonder whether they will do as well as their parents or will be able to own a house. Parents worry about their children's future. Many children face bleak futures; one in five now lives in poverty. Pocketbook worries are compounded by fear that the quality of American life is deteriorating. Violence is pervasive; city streets and parks are unsafe; drug addiction is epidemic; racial tensions are high. Toxic wastes, dirty air, and traffic gridlock increase the hazards and reduce the enjoyment of daily living, especially in densely populated areas. The American democratic system, though admired around the world, is not confronting the public problems that concern its citizens most. The federal government can lead an international coalition to victory in the Middle East, but appears far less decisive at home. The budget deficit has paralyzed policy for more then a decade. Neither major political party has a convincing domestic agenda; neither can articulate a clear view of what the federal government ought to do. State and local governments are not sure of their roles, but are being forced to cut their activities in the face of serious financial crises.

Having said all this in 1992, Alice Rivlin went to work for Bill Clinton in early 1993. Initially, she headed the presidential Office of Management and Budget (OMB). The last person leaving Clinton's Transition Office in Little Rock, Arkansas heard the refrain, "It's the economy, stupid." For the years between 1992 and 1994, this phrase may have been useful, but all this changed in 1995, when a Republican Congress took over for the first time in forty years.





All contents © 1996 William M. Brinton
All photographs © Archive Photos, New York
All film © Archive Film, New York