GORE vs. BUSH.B.E. reviews the platforms of this year's presidential candidates AFFIRMATIVE ACTION affirmative action, in the United States, programs to overcome the effects of past societal discrimination by allocating jobs and resources to members of specific groups, such as minorities and women. , ACCESS TO CAPITAL, SOCIAL SECURITY. The next president of the United States The head of the Executive Branch, one of the three branches of the federal government. The U.S. Constitution sets relatively strict requirements about who may serve as president and for how long. , whether Vice President Al Gore Noun 1. Al Gore - Vice President of the United States under Bill Clinton (born in 1948) Albert Gore Jr., Gore or Texas Governor George W. Bush, will have a significant amount of power over the fate of these and other issues. While the president is not the sole policymaker of the government, he will set the mood for the nation and have a strong influence over its economic direction. To help you make an educated decision, the BLACK ENTERPRISE Board of Economists studied the platforms of each candidate and took a closer look at some of their proposals. Among other items, it reviewed the Bush tax plan to stimulate the economy, and Gore's approach to continuing the programs that have been in place for the past eight years. "If the lowest tax bracket Tax Bracket The rate at which an individual is taxed due to a particular income level. Notes: Each income class is taxed at a different level. Generally, the more you make the more you are taxed. is cut from 15% to 10% (as Bush proposes), the impact is likely to be substantially greater on blacks who fall more heavily into that lower income than ... whites. That's a positive thing," says Dr. Andrew Brimmer Andrew Felton Brimmer (born on September 13, 1926) is a noted economist, academic, and business leader who was the first African American to have served as governor of the Federal Reserve. , president of Brimmer and Co., an economic policy and research company based in Washington, D.C. However, Dr. David Swinton, president of Benedict College Benedict College is an historically African-American liberal arts college located in Columbia, South Carolina. Founded in 1870 by northern Baptists, it was originally a teacher's college. It has since expanded into a four-year college. , in Columbia, South Carolina Columbia is the state capital and largest city of South Carolina. As of 2006, estimates for the population of the city proper is 122,819[1]. Columbia is the county seat of Richland County, but a small portion of the city extends into Lexington County. , cautions that there is no such thing as a free good. "If they cut taxes and they want to be fiscally responsible and they don't want to build the deficit up again, they are going to have to cut programs or not expand programs," says Swinton. "Gore does not see tax policy as a major way to go about moving either the economy or a social agenda," says Dr. Margaret Simms, vice president of the Joint Center for Political and Economic Studies The Joint Center for Political and Economic Studies ("Joint Center"), headquartered in Washington, DC, is a national, nonprofit research and public policy institution or think tank. , Washington, D.C. "He's proposing a fairly modest universal savings plan that would be subsidized sub·si·dize tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. ; raising standard deductions The name given to a fixed amount of money that may be subtracted from the adjusted gross income of a taxpayer who does not itemize certain living expenses for Income Tax purposes. ; offering lifelong learning Lifelong learning is the concept that "It's never too soon or too late for learning", a philosophy that has taken root in a whole host of different organisations. Lifelong learning is attitudinal; that one can and should be open to new ideas, decisions, skills or behaviors. accounts--things more of that nature than any broad tax cuts." "One might argue that some of these might work to the benefit of African Americans African American Multiculture A person having origins in any of the black racial groups of Africa. See Race. because they are more likely to need these kinds of incentives in order to engage in savings behavior," suggests Simms. That's the reason why BE had its Washington correspondent interview the men who would be president: to review how their programs and policies will affect you. In candid can·did adj. 1. Free from prejudice; impartial. 2. Characterized by openness and sincerity of expression; unreservedly straightforward: In private, I gave them my candid opinion. discussions, the two presidential nominees In United States politics and government, the phrase presidential nominee has two distinct meanings. The first is somebody chosen by the primary voters and caucus-goers of this party to be the party's nominee for President of the United States. reveal their platforms. Use it as a guide before you pull the lever in November. BLACK ENTERPRISE: In what way do you think black businesses could benefit most from your tax cut? GEORGE W. BUSH: Well, for two reasons. One, when you reduce the taxes on people who have income, it gives them more money. And the more money somebody has the more likely it is that somebody is going to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. , if they're a small business person, in their business. Secondly, a reduction in marginal rates provides more capital in the private sector, and the more capital there is in the private sector, the more likely there is going to be funding for entrepreneurship. B.E.: BLACK ENTERPRISE caters to black entrepreneurs. How would a Bush administration support the growth and development of those businesses? BUSH: Let me preface pref·ace n. 1. a. A preliminary statement or essay introducing a book that explains its scope, intention, or background and is usually written by the author. b. An introductory section, as of a speech. 2. these remarks by saying I have been an entrepreneur. I think it's important to have a president who has understood entrepreneurship, and understands the frustrations of a small business person, [someone] who understands the ups and downs ups and downs pl.n. Alternating periods of good and bad fortune or spirits. ups and downs Noun, pl alternating periods of good and bad luck or high and low spirits of trying to start a business. It doesn't matter whether the entrepreneur is African American or Anglo or Hispanic. We've shared the same experiences--payroll and capital. Secondly, it is very important for people to understand the role of government is not to try to create wealth, but an environment in which entrepreneurs should flourish. Which means certain macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. issues. B.E.: Well, you're right in that it doesn't matter what color you are in terms of some of the shared experiences, like payroll and taxes, but it does matter in terms of access to capital, and black entrepreneurs have historically had a very difficult time getting that access. BUSH: Well, that's why I support the Community Reinvestment Act Community Reinvestment Act (CRA) Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. . I think it's important for banks to be reaching out, particularly in the neighborhoods in which banks exist. B.E.: But not all black-owned businesses are located in black communities. BUSH: Well, you know, a good idea is going to attract capital. There's small business help, there's small business loans we can help with, and I'll keep the SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government alive and actively promoting minority businesses. I can't tell a bank "Make a loan to XYZ XYZ interj. Informal Used to indicate to someone that the zipper of his or her pants is open. [ex(amine) y(our) z(ipper).] ," but I can tell a bank to be mindful mind·ful adj. Attentive; heedful: always mindful of family responsibilities. See Synonyms at careful. mind . B.E.: Now, in terms of the Small Business Administration, what sort of things would a Bush administration do to strengthen the small business investment companies in terms of financing businesses. A lot of their loans are little more than micro-loans and often entrepreneurs need ... BUSH: ... bigger loans, bigger help. ... every program is going to be reviewed. When I put somebody in place at the SBA, I'm going to say "How are we doing in terms of minority outreach? Are we encouraging entrepreneurial growth?" That will be a goal of my administration. I can't think of a better goal than to encourage entrepreneurship in the African American community. I think it's so incredibly important, and so I would ask, "Is progress being made?" You know, I'll take your word for it, they're micro-loans and if the micro-loans aren't effective in encouraging entrepreneurship we better come up with a different strategy. B.E.: When the Republicans took over the majority of the House, they constantly threatened to get rid of the Department of Commerce which has oversight over the Minority Business Development Agency. So what would be your plans regarding the Commerce Department? BUSH: I think every agency needs to be reviewed as to whether programs are effective or not. I want all programs analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. . And if they're effective, we ought to make them work better, and if they're not meeting the goals, if they're not meeting the expectations, then something else has to happen. B.E.: Do you have any plans to improve the proportion of federal contracts that go to black-owned businesses? For example, the Clinton administration Noun 1. Clinton administration - the executive under President Clinton executive - persons who administer the law , worked out a deal with the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. to increase the amount of contracts going to black-owned businesses. BUSH: Here's what I want your readers to know. I don't believe in quotas. I don't. I think quotas will pit groups of people against each other. I do believe in what I call affirmative AFFIRMATIVE. Averring a fact to be true; that which is opposed to negative. (q.v.) 2. It is a general rule of evidence that the affirmative of the issue must be proved. Bull. N. P. 298 ; Peake, Ev. 2. 3. access, affirmatively af·fir·ma·tive adj. 1. Asserting that something is true or correct, as with the answer "yes": an affirmative reply. 2. helping people access contracts. The idea of working with mentors, or in this case the idea of convincing automobile companies to increase black contracting, is a good idea. And I think those ideas make sense so long as the program isn't a quota. Because quotas will never achieve what we want. What we want is ownership, and small business growth, and wealth to be spread throughout all of our society. B.E.: And do you agree that African American business people need a little bit more help than white entrepreneurs? BUSH: Not necessarily. It all depends on what you mean by that. If you mean does it make sense like in contracting for highways, mentoring programs to help start-up companies start-up company A new business. ? You bet. B.E.: Well existing companies often need help, too. BUSH: Well, it depends on what you're talking about. I mean it's kind of a general statement. And I don't want to disillusion dis·il·lu·sion tr.v. dis·il·lu·sioned, dis·il·lu·sion·ing, dis·il·lu·sions To free or deprive of illusion. n. 1. The act of disenchanting. 2. The condition or fact of being disenchanted. your readers. And I bet a lot of your readers agree with me. We can't have a quota system Quota System can refer to:
tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. the quota for another group of people. What we need to do is have a proactive system that says contracting is important, and contracts need to be smaller. B.E.: I think it's nice to have this kind of color-blind col·or·blind or col·or-blind adj. 1. Partially or totally unable to distinguish certain colors. 2. a. Not subject to racial prejudices. b. attitude, but that's just not a reality in a lot of these agencies. Do you think there has to be some sort of benchmark? There are plenty of businesses that want to do business but they [the agencies] don't always call them. BUSH: I don't mind calling people accountable as to whether there's minority participation, absolutely. And I'm going to ask the questions, "How are you doing on outreach? How are you doing attracting minority firms? How are you doing encouraging small businesses?" And I expect there to be strong minority outreach. What I'm telling you, though, is I don't want there to be a set quota. What I think we need to do is have a president who says: "How are we doing in encouraging what we want to have happen?" which is growth of business opportunity for all segments. B.E.: Regarding affirmative action, would your administration continue the "mend it, don't end it" approach? AL GORE: I support affirmative action because I think it's still needed. "Mend it, don't end it" is simply a recognition that there are court challenges that have focused on some aspects of older affirmative action programs that might make them vulnerable to being shut down. Mending affirmative action means improving it to ensure its continuation. Let me tell you why I support it. Take the example of the young entrepreneur who graduates from college and has a great idea for a new business. If that entrepreneur is in the majority community, the first telephone call usually is to a family member to raise investment capital. But the African American community is in different circumstances. African American family wealth averages one-tenth of majority family wealth because that's a category that reflects the accumulated deprivation and diminished opportunity over many generations. I support [affirmative action] strongly. My opponent does not. My opponent his vowed to end it. B.E.: What would your administration do under the SBA to strengthen the small business investment companies and enhance the amount and availability of private equity capital for black businesses? GORE: Well, first of all my No. 1 priority is making sure we keep our prosperity going and keep our economy growing as we go into the 21st century to create good jobs not just for the few but for all our people. It is not a coincidence that our focus on the economy has resulted in record low unemployment for African Americans and the higher median income among African American entrepreneurs. I announced [under the Clinton administration] an unprecedented agreement between SBA and the Big Three U.S. automakers to increase subcontracting awards to minority businesses by nearly $3 billion over the next three years. That's a nearly 50% increase over current levels. B.E.: What sort of plans do you have to help improve the proportion of federal contracts that go to black-owned businesses? And, what kinds of initiatives will you propose to ensure that private industry participates much in the same way the auto industry has been doing in the past three years? GORE: Well, I strongly support programs such as the SBA's 8A program, which helps minority-owned businesses become competitively viable. I believe we need to do much more to identify qualified minority-owned firms and assist their efforts to win contracts by educating them about federal procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. opportunities such as online access to open government bids, providing technical assistance to enable them to compete more effectively and including them in the pool of qualified bidders. B.E.: Is there a way you can make the lending agencies more receptive receptive /re·cep·tive/ (re-cep´tiv) capable of receiving or of responding to a stimulus. to them? GORE: I strongly support the Community Reinvestment Act and the CDFI CDFI Community Development Financial Institutions [Community Development Financial Institutions] fund initiative to require that a percentage of the funds collected from a community are invested back in the community. B.E.: But many black businesses aren't in a community. They're downtown. GORE: Well, but many are. And for the others, the SBA and the insistence on affirmative action goals can create many new opportunities. B.E.: Do you think the Department of Commerce might play a role in helping small and minority-owned businesses conduct the research they need to be more competitive? GORE: Secretary Ron Brown worked hard to move the Commerce Department into a more active role in providing just such assistance and I strongly support that. I also was one of the authors years ago of the Small Business Innovations Research Program, which also has outreach to minority firms. B.E.: How would you structure your plan to invest retirement income? We're interested in knowing some of the details that would protect people if they decided to participate. GORE: I have proposed a program that's basically Social Security plus instead of my opponent's Social Security minus. He proposes to divert di·vert v. di·vert·ed, di·vert·ing, di·verts v.tr. 1. To turn aside from a course or direction: Traffic was diverted around the scene of the accident. 2. 16% of the trust fund monies into the stock market. I think that's a mistake. Instead, I want to protect Social Security and then give a very generous new tax incentive to encourage savings on top of Social Security so individuals who have found it difficult to save in the past will get a monetary benefit from doing so, and the lower and low-middle income groups will get the largest incentives and those are the groups where we need to make the most gains in promoting more savings. Protect Social Security, protect Medicare, but give new incentives in the form of tax credit, which go even to people who don't pay any taxes to save more. B.E.: A few years ago you were very active in the enterprise zone programs, which will end soon. What new or continued efforts will be made to help businesses in inner cities continue? GORE: I want to continue the enterprise zone, and I have called for a third round for the empowerment zone and for full funding for the second round and a continuation of benefits for the first round. I have been encouraged by the level of bipartisan support. Some of the Republican leadership in the congress is less than enthusiastic but basically it has bipartisan support.
Tale Of The Tape
GORE BUSH
Social Security/Investments:
Maintain current Social Offers an option to divert
Security contribution scale 2% of the 12.4% individuals
and benefits. Offer a tax currently pay in employer/
credit that would match a employee payroll tax for
portion of funds contributed Social Security into a
by an individual toward his private retirement fund.
retirement.
Tax Policies
Proposes tax breaks in Proposes to cut marginal
targeted areas, such as income tax rates to 10%-33%
taxfree universal savings from the current 15%-39%.
accounts for people saving
to buy a home, get married,
or pay for college.
Affirmative Action
Supports the current Favors keeping affirmative
affirmative action program action but proposes to do
but makes no decisive away with the quota system.
statements about its future
implementation.
Access to Capital/Minority Business Contracts
Plans to continue the Clinton Supports mentoring programs
initiative that encouraged and wants to break up federal
the automotive industry to procurement contracts to give
increase the number of smaller business owners a
contracts to black-owned chance to compete with larger
businesses. Plans to ensure firms. Disagrees with
that agencies do not simply establishing benchmarks or
bundle a series of small quotas to ensure inclusion.
contracts in order to award
them to a single large
contractor.
Education
Proposes a 401(j) account, Supports charter schools and
which would be similar to voucher system. Plans to
401(k) but would be usable expand federal funding for
by every citizen for early childhood education.
lifelong learning and job
training to upgrade skills.
Read more from the Board of Economists on the presidential candidates or the entire BE interview on www.blackenterprise.com. Find out how Bush defines the president's role and Gore's views on the digital divide. |
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