Slow and Steady
News of slower second quarter economic growth leads at the Los Angeles
Times and New York Times .
The Washington Post leads with President Clinton's
pledge to testify "completely and truthfully" at his grand jury questioning in
two weeks.
Asia's financial woes and the effects of the General Motors strike kept
growth of the nation's gross domestic product at a modest 1.4%, down from last
quarter's scalding 5.5%. The news isn't so bad, though, as all three papers
report that the current seven-year expansion seems to be withstanding the Asian
storm nicely. The LAT calls it a "slow-but-respectable performance" and
the NYT deems the economy's pace "modest but still healthy." On the
awesome impact of the GM shutdown, the LAT notes that it shaved a full
percentage point from second quarter growth.
President Clinton has announced that he will answer questions under oath in
two weeks, but will have no comment on the Lewinsky matter until then. The
President's testimony will be transmitted live to the federal courthouse,
allowing jurors to pose questions via the prosecutor. The WP reports the
President "maintained a casual, unaffected appearance" before reporters,
despite waiting for the FBI's report on the existence of "DNA material" in Ms.
Lewinsky's dress. Amid criticism from Clinton supporters, Ken Starr has
announced that he will take an unpaid leave of absence from his nearly $1
million per year post at a Chicago law firm where he defended clients such as
GM and Meineke Discount Muffler.
An above-the-fold NYT piece reports that an IBM subsidiary has
pleaded guilty to selling computers to Russia that can simulate nuclear weapons
testing. With no prior convictions, a contrite IBM received the maximum fine
possible: $8.5 million.
Direct legislation gets a closer look in a WP story on the debate
over Oregon's direct voter initiatives. Defenders cite initiatives' ability to
express public frustration with government. Critics claim the process is too
susceptible to monied interest groups and upsets the "checks and balances of
the legislative process." While no one wants to abolish the initiatives
altogether, most agree reforms are needed.
An LAT front page article reveals a "serious slump" among dozens of
Silicon Valley firms. Again, Asia's financial troubles are to blame along with
cheaper PCs and slower PC sales. Having already seen downsizing this spring,
the industry faces another round of wage reductions and layoffs. This past
year, industry stalwarts like Intel and Hewlett-Packard have trimmed payrolls
through plant closings, forced retirements, and pay cuts in the once
unstoppable Valley. The LAT reports that one industry has thrived during
the slump: job and career counseling.
