[Congressional Record Volume 142, Number 40 (Thursday, March 21, 1996)]
[Extensions of Remarks]
[Pages E408-E409]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     TRIBUTE TO NEW YORK CITY MAYOR ABE BEAME ON HIS 90TH BIRTHDAY

                                 ______


                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                       Wednesday, March 20, 1996

  Mrs. MALONEY. Mr. Speaker, today I rise to pay tribute to the 
Honorable Abe Beame, Mayor of New York City and dedicated public 
servant. Today, March 20, 1996, we are happy to celebrate the 90th 
birthday of Mayor Beame and we remain forever grateful for his many 
years of service to New York City.
  Abraham David Beame became New York City's first Jewish Mayor in a 
landslide election in 1973. At the time he entered office, the City had 
a $12 billion budget and $1.5 billion deficit. At the end of his 
administration, in 1977, New York City had a cash surplus of $250 
million. Under his guidance, New York City also regained its reputation 
as a national center--it was the host to the Democratic National 
Convention and the Bicentennial's Operation Sail. During his tenure, he 
convinced the United States Open to remain in Flushing Meadows.
  These successes are largely attributable to his many years of 
experience as the City's Budget Director and Comptroller. Because of 
the dire fiscal situation and Washington's refusal of support, Mayor 
Beame was forced to take drastic economic measures. Mayor Beame cut the 
City's spending by $100 million, reduced the work force by 65,000, and 
he convinced the trustees of the five pensions funds to buy nearly $4 
million in New York City bonds. Such drastic measures, born of fiscal 
experience and skill and sound management procedures, returned New York 
City to the road to fiscal health.
  Mayor Beame had begun his public service in 1946 with a position in 
the budget office of Mayor William O'Dwyer. He eventually rose to 
Budget Director and was later elected to the position of City 
Comptroller. Describing himself as a New Deal Liberal, Mayor Beame won 
the Democratic party nomination for Mayor in 1965, but was defeated by 
John Lindsay. It was not until 8 years later, in 1973, that Mayor Beame 
would declare victory and become the 104th Mayor of New York City.
  Ninety years ago today, on March 20, 1906, Abraham David Beame was 
born in the East End of London. His parents were fleeing from Warsaw, 
Poland where his father had participated in an underground movement 
against the Russian Czar. They were en route to New York City, and the 
cold water tenement on Stanton Street in the Lower East Side, where 
Mayor Beame would spend his childhood.
  While in the seventh grade at P.S. 160, Abe Beame began working after 
school in the paper factory where his father was foreman. He would 
continue working at the factory and contributing part of his paycheck 
to his parents throughout high school and while attending Baruch 
College at night. In February of 1928, the same month he graduated from 
college, Abe Beame married Mary Ingerman, whom he had met over a game 
of checkers at a gathering of the University Settlement, a community 
organization. The Beame's moved to Brooklyn, where they had two sons 
and where they began a life heavily involved in City politics. Before 
joining Mayor O'Dwyer's budget office in 1946, Abe Beame was an 
accountant and public school teacher in Brooklyn, and a member of the 
Madison Democratic Club. Mary Beame was to remain devotedly at his side 
for 67 years. Since leaving office, Mayor Beame's commitment to public 
service has continued through his participation in dozens of 
philanthropic organizations that benefit the city and nation.
  Today, on his 90th birthday, I am very pleased to recognize Mayor 
Abraham David Beame's contribution to the great City of New York and 
thereby to the Nation. I ask that my colleagues join with me in this 
celebration by paying tribute to his nearly 70 years of accomplishments 
and dedication to public service.

[[Page E409]]



                                 WAGES

                                 ______


                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                       Wednesday, March 20, 1996

  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, March 20, 1996, into the Congressional Record.

                                 Wages

       The issue of stagnant wages for American workers has moved 
     to the top of the political agenda. It has become a leading 
     issue in the 1996 presidential campaign, the focus of 
     speeches by congressional leaders, and a prime topic for 
     magazine covers and news features. Some believe that it will 
     be the dominant national political issue in the U.S. for 
     years to come.
       The concern is understandable. Adjusted for inflation, the 
     wages of middle-class Americans have basically not increased 
     for years. People are working hard, being responsible, and 
     trying to make things better for their families, yet they 
     face rising prices and mounting bills and few increases in 
     pay. They are holding second or third jobs, and both parents 
     often must work, and that means less time for community 
     involvement, reading to their kids, or Little League games.
       On top of this, workers have been shaken by AT&T's layoff 
     of 40,000 employees, and most Americans have a family member 
     or friend who has lost a job to corporate downsizing. People 
     expect to see layoffs and frozen wages during tough economic 
     times, but they can't understand why all this is happening 
     when the U.S. economy is growing, unemployment is low, 
     companies are seeing record profits, the stock market is 
     soaring to record levels, and compensation for CEOs is 
     skyrocketing.
       All of this has led to acute job insecurity and concern 
     about the future. Far too many Americans believe that hard 
     work and company loyalty are no longer being rewarded, and 
     that the American promise of opportunity and a better future 
     is slipping away. They are not proponents of big government, 
     but they wonder if they will get any help out of Washington.


                         extent of the problem

       The problem of stagnant wages is getting a lot of attention 
     now, but it is not new. The wages of American workers 
     basically doubled between 1947 and 1973, with some of the 
     strongest gains among moderate-income workers. But since 
     1973, hourly wages for the average American have lagged some 
     10-15% behind inflation. The situation is slightly better now 
     than a few years ago, but wage growth is still weak. 
     Moreover, since 1979, 98% of the growth in income in the U.S. 
     has gone to the top 20% of U.S. households. Some people have 
     been doing very well in today's economy, but not the average 
     American worker. This is not just a personal problem for 
     those families affected; it will ripple across the economy if 
     our workers cannot afford to buy the products we make.
       While some economists are fairly optimistic about future 
     wage increases--citing rising productivity, falling prices, 
     tighter labor markets--others are worried. The greatest 
     concern is over the impact of global competition and 
     technology on less skilled, less educated workers.


                            no easy answers

       The national attention to stagnant wages is healthy and 
     long overdue, but we must address the problem carefully 
     rather than jump at the first solution offered. The problem 
     has been with us for twenty years and the causes are complex; 
     it will not be solved overnight. Indeed, some of the 
     proposals could make things worse. For example, given the 
     importance of exports to states like Indiana, the proposal 
     for a stiff tariff on imported goods could boomerang and 
     devastate many of our industries, particularly agriculture.


                         addressing the problem

       Several steps can be taken to help workers. Among the most 
     important is to create opportunity for them by providing them 
     the tools to succeed in the new economy. Education and job 
     skills are essential. We simply have to put into place 
     effective low-cost college loans, school-to-work 
     apprenticeships, training vouchers for laidoff workers, and 
     effective vocational and adult education.
       We also need to make work pay for people at the bottom of 
     the income scale. Work is better than welfare or 
     unemployment. We need to raise the minimum wage and keep the 
     earned income tax credit for working families. We also need 
     to ease the transition from job to job. Health insurers 
     should not be able to cut someone off who loses a job, 
     pensions should be portable, unemployment insurance, job 
     search assistance, and job training should be available at 
     one-stop career centers.
       But of course most of the effort has to be by individuals 
     and private companies. Each person must make the most of the 
     opportunities offered, and private companies must do 
     everything they can to help workers make a transition. We 
     certainly need more business investments that make even low-
     skilled workers productive, and investments in people like 
     the GI Bill that upgrade the workforce. We should end the 
     myriad of subsidies and tax breaks for particular companies 
     and industries that provide no public benefit. Corporate 
     welfare in the United States totals billions of dollars each 
     year.
       I am skeptical of sweeping measures to prevent job loss or 
     protect laid-off workers. If we go too far we will deter 
     firms from hiring and discourage the unemployed from finding 
     new work.
       Nothing is more important than raising the economic growth 
     rate. The solution to economic anxiety in the country is to 
     expand jobs and opportunities. There is no substitute for 
     sound macroeconomic policies. In the present context that 
     means cutting the deficit, expanding markets, cutting 
     government spending, reducing regulation, increasing 
     productivity by investing in people, plant and equipment, 
     infrastructure, and technology, and running a monetary policy 
     to allow for faster economic growth.


                               Conclusion

       One of the toughest challenges today is how to make sense 
     of what's happening in the American economy, with the new and 
     often alarming economic reality. This economy has produced 
     record profits for some corporations, but it has produced 
     pink slips and falling wages for many workers. On many broad 
     measurers, it's one of the healthiest economies we've had for 
     several decades with many Americans living better, but there 
     are too many Americans working harder just to keep up and 
     they have many concerns about the financial security of their 
     families. Our nation is struggling today to find the right 
     way to deal with the discontent of the American worker. Few 
     challenges have higher priority.

                          ____________________