The Loan Arranger
Domestic issues reign today. The New York Times
and Los
Angeles Times lead with the AFL-CIO's open-ended loan to the Teamsters
to help during the UPS strike. The Washington Post goes with the steep decline in the welfare
rolls in the year since welfare reform went into effect--a story USA Today
already did earlier this week. And USAT leads with findings that a new
heart drug is extremely effective in saving the lives of angioplasty
patients.
However, the whole point of the USAT piece is that the drug's expense
could limit its availability to only the very sickest people. But it's hard to
evaluate this claim because USAT 's only statement about expense is the
unqualified assertion that the drug "costs $1,350." For how much? And does that
amount yield the life-saving result? (If so, it seems like a bargain.)
The two Times each report that John Sweeney, AFL-CIO president,
announced yesterday that the unions affiliated with his organization would lend
the Teamsters $10 million a week--to be used for strikers' benefits--for "many,
many weeks." Both papers quote Sweeney saying, "Because their fight is our
fight, we are making this strike our strike." The loan shows how high the
stakes are, not just for UPS, and for the Teamsters, but also for the entire
labor movement. UPS chairman James Kelly responded with the warning that a
two-week strike could mean the layoff of 15,000 union workers and once again
called for President Clinton to intervene.
The NYT reports that UPS is losing between $30-$50 million a day, and
the LAT says the dispute "is on its way to becoming the biggest and
costliest strike in a generation."
The Post welfare piece includes this statement made yesterday by
President Clinton: "But a year later, I think it's fair to say the debate is
over. We now know that welfare reform works." There's also mention of a White
House study's conclusion that about 40 percent of the decline in welfare rolls
is attributable to the economy, with 31 percent based on state welfare policy
changes, and the remaining 29 percent being caused by "other factors."
The NYT reports that the American Medical Association has agreed for
the first time ever to allow its name to be used in paid endorsements of
health-related products--made by the Sunbeam Corp.
The Wall Street Journal 's "Tax Report" reports that corporate
taxes now account for only 13 percent of total IRS collections, down from 24
percent in 1960. The column also reveals that since the tax bill began taking
shape, the price of H&R Block shares has gone up about 30 percent.
In her column today, Maureen Dowd of the NYT assumes the persona of
JFK Jr. to explain the editorial stance of George magazine thus: "I've
heard about substance abuse, and I'm staying away from substance."
