Forex Up Ich

Unser Unternehmen verfügt über mehr als 10 Jahre Erfahrung im Bereich Devisenmarkt. Forex Ltd bietet eine breite Palette von Produkten, einschließlich Anlagestrategien für Aktien, Indizes, festverzinsliche, Forex-Instrumente und Rohstoffe Markt, professionelle Schulungen, technische und Wellenanalyse und Online-Finanzmärkte Nachrichten. Unser Team von qualifizierten und qualifizierten Fachkräften mit langjähriger Erfahrung und unserer preisgekrönten Methodik, unterstützt durch bewährte Indikatoren, sorgen dafür, dass unsere Kunden qualitativ hochwertige Dienstleistungen und Produkte erhalten, die den höchsten Weltstandards entsprechen. Online-Quotes Unternehmen News Die Handelsgeschäfte mit Metallen und Kontrakten für Differenzen (CFDs) auf Aktien und ETFs werden am 20. Februar 2017 nicht verfügbar sein. Handelsgeschäfte mit Metallen und Kontrakten für Differenzen (CFDs) auf Aktien und ETFs werden im Januar nicht verfügbar sein 16, 2017. alle newsTURN-KEY TRADING STRATEGIE UNSERE VORTEILE MetaTrader 4 Plattform Freie technische Analyse Keine Deal Desk Execution Konten in USD, GBP, EUR Hedging erlaubt Freier Praxiskonto Fixed Spread mehr METATRADER 4 NEU ZU FOREX ACTIVE TRADER ZinssätzeForex Handel mit Alpari: Zuverlässigkeit und Innovation im Handel Warum Alpari heute wählen Alpari ist einer der weltweit größten Forex Broker. Dank der Erfahrung, die das Unternehmen mit jahrelanger Arbeit erworben hat, ist Alpari in der Lage, seinen Kunden ein breites Spektrum an qualitativ hochwertigen Dienstleistungen für den modernen Internethandel am Devisenmarkt anzubieten. Über eine Million Kunden haben sich für Alpari als vertrauenswürdigen Lieferanten von Forex Services entschieden. Was ist Forex Der Forex (FOReign EXchange) Markt erschien Ende der 1970er Jahre, nachdem viele Länder beschlossen, ihren Währungswert von der des US-Dollars oder Gold zu lösen. Dies führte zur Bildung eines internationalen Marktes, auf dem die Währung frei ausgetauscht und gehandelt werden konnte. Heute ist Forex der größte Finanzmarkt der Welt. Es ist nicht wichtig, wo Sie leben oder auch wo Sie gerade sind, solange Sie Zugang zum Internet haben, ein Handels-Terminal (ein spezielles Programm für den Handel Forex) und ein Konto mit einem Forex-Broker, alle Instrumente und Chancen von Forex sind Offen für dich Wer sind Händler Händler sind Leute, die auf dem Forex-Markt arbeiten und versuchen, die Richtung zu ermitteln, in der die Preise einer Währung gehen und einen Handel für den Kauf oder Verkauf dieser Währung machen werden. Als solche, durch den Kauf einer Währung billiger und verkaufen sie für mehr, Händler Geld auf dem Forex-Markt zu verdienen. Händler treffen ihre Entscheidungen auf der Grundlage der Analyse aller Faktoren, die die Preise beeinflussen können, so dass sie genau ausarbeiten können, in welche Richtung sich die Preise bewegen. Profit kann handeln Devisen auf den Fall im Preis einer Währung, so wie Gewinn kann auf einen Anstieg der Preis einer bestimmten Währung gemacht werden. Darüber hinaus können Händler Trades auf dem Forex-Markt von überall auf der Welt machen, sei es London oder Timbuktu. Wo können Sie lernen, wie man Forex handeln Für Anfänger, die gerade ihre ersten Schritte auf den Forex-Markt genommen haben, empfehlen wir die Einschreibung auf einen der Investment Academys Bildungs-Kurse. Die Kurse werden Ihnen nicht nur die Grundlagen des Devisenmarktes beibringen, sondern auch Methoden der Analyse des Forex Market und wie man häufige Fallstricke vermeidet. Mit der Ausbildung von der Investment Academy erhalten Sie wertvolle theoretische Kenntnisse, die Sie beim Handel anwenden können. Darüber hinaus erfahren Sie über Money Management, lernen, die Kontrolle über Ihre Emotionen zu nehmen, zu entdecken, wie Handelsroboter nützlich sein können und vieles mehr. Sie können an den Kursen teilnehmen aus dem Komfort Ihres eigenen Hauses: online. Wöchentliche finanzielle Analysen und Nachrichten, gebrauchsfertige Handelsideen sowie kostenlose analytische Dienstleistungen auf der Website von Alpari39s werden Ihnen helfen, die richtigen Entscheidungen zu treffen, wenn Sie Forex handeln. Wie können Sie handeln Forex Wenn Sie noch nie mit Forex gearbeitet haben, können Sie testen alle Chancen der Handelswährung auf einem Demo-Konto mit virtuellen Fonds. Mit einem Demo-Konto können Sie den Forex-Markt von innen erkunden und Ihre eigene Handelsstrategie entwickeln. Sie können immer von fertigen Lösungen profitieren, indem Sie sich mit Rückmeldungen anderer Händler vertraut machen. Nachdem Sie ein Konto eröffnet haben, ob es sich um eine Demo oder Live-Konto, müssen Sie ein spezielles Programm herunterladen, um auf dem Forex-Markt ein Handels-Terminal zu arbeiten. Im Terminal können Sie Marktkurse verfolgen, Trades durch Öffnen und Schließen von Positionen machen und mit Finanznachrichten aktualisieren. Sie können wählen, von Terminals für PC als auch für mobile Geräte: alles was Sie brauchen, um Ihre Arbeit mit Forex so bequem wie möglich zu machen. Sie können mit dem Handel auf dem Forex Devisenmarkt beginnen, wobei Alpari irgendwelche Geldmittel auf Ihrem Konto hat. Wenn Sie versuchen, Forex auf einem Live-Konto zu versuchen, aber um die Risiken so niedrig wie möglich zu halten, versuchen Sie den Handel mit einem nano. mt4 Konto, wo die Währung in Eurocent und US-Dollar Cents gehandelt wird. Online Forex und CFD Handel Risiko Warnung: Forward Rate Agreements, Optionen und CFDs (OTC Trading) sind Hebelprodukte, die ein erhebliches Verlustrisiko bis zu Ihrem investierten Kapital tragen und möglicherweise nicht für alle geeignet sind. Bitte stellen Sie sicher, dass Sie die damit verbundenen Risiken vollständig verstehen und kein Geld investieren, das Sie sich nicht leisten können. Bitte beachten Sie unseren Haftungsausschluss. Easy Forex Trading Ltd (CySEC ndash Lizenznummer 07907). EasyMarkets ist ein Handelsname von Easy Forex Trading Limited, Registriernummer: HE203997. Diese Website wird von Easy Forex Trading Limited betrieben Durch die Verwendung von easymarkets stimmen Sie zu unserer Verwendung von Cookies, um Ihre Erfahrung zu verbessern. Eingeschränkte Regionen: easyMarkets Group of Companies erbringt keine Dienstleistungen für Bürger bestimmter Regionen wie die Vereinigten Staaten von Amerika, Israel, Iran, Syrien, Afghanistan, Myanmar, Nordkorea, Somalia, Irak, Sudan, British Columbia, Ontario und Manitoba .

Iob Forex Tt Rate

OFFICE CARD PREISE 45 24 27 Feb 2017 aktualisiert um 17.1 12.46 Uhr UNIT CURRENCY SELLING. TT BILLS 1 USD 66,7 66,82 66,73 66,85 66,3 66,42 66,27 66,39 1 EUR 70,81 70,73 70,85 70,77 70,1 70,03 70,06 70,77 70,1 70,03 83,07 70,07 70,07 83,07 83,07 83,07 83,71 70,07 83,07 83,07 83,07 70,71 66,57 66,67 66,67 66,77 66,57 66,48 65,74 65,73 65,71 65,7 100 JPY 59,48 59,7 59,51 59,73 58,83 59,04. OFFICE CARD PREISE 45 27 Feb 2017 aktualisiert um 12.46 Uhr UNIT CURRENCY SELLING. TT BILLS 1 USD 66,82 66,85 66,42 66,39 1 EUR 70,73 70,77 70,03 8,03 8,53 8,53 1 SGD 47,64 47,66 47,11 1,94 1,69 0,69 0,69 5,51 5,61 5,61 0,69 5,51 5,61 5,61 5,61 5,61 5,61 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,51 5,53 5,53 5,53 5,51 5,51 5,51 5,53 5,53 5,53 5,51 5,51 4,0 1 AUD 51,45 51,48 50,89 50,83 1 DKK 9,51 9,51 9,41 9,41 1 NOK 8 8 7,91 7,91 1 SEK. OFFICE CARD PREISE 45 24 Feb 2017 aktualisiert um 17.1 hrs UNIT CURRENCY SELLING. TT-BILLS 1 USD 66,7 66,73 66,3 66,27 1 EUR 70,81 70,85 70,1 70,06 8,52 8,51 1,94 1,81 1,69 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 7,51 5,51 7,51 5,51 5,51 7,51 7,51 8,51 7,51 8,51 8,51 8,51 7,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 1 AUD 51,36 51,39 50,8 50,74 1 DKK 9,52 9,52 9,42 9,42 1 NOK 8,01 8,01 7,93 7,93 1 SEK. Mehr. BÜROKARTEN PREISE 45 23 24 Feb 2017 aktualisiert um 17.13 17.1 hrs UNIT WÄHRUNG VERKAUF. TT-BILLS 1 USD 66,93 66,7 66,96 66,73 66,53 66,3 66,5 66,27 1 EUR 70,78 70,81 70,82 70,85 70,08 70,70 70,02 70,05 70,04 70,07 83,07 83,07 83,07 83,07 83,01 83,07 83,07 83,07 83,81 83,07 83,07 83,67 83,01 83,41 66,46 66,56 66,74 66,74 65,67 65,71 100 JPY 59,27 59,48 59,3 59,51 58,62 58,83. OFFICE CARD PREISE 45 24 Feb 2017 aktualisiert um 17.1 hrs UNIT CURRENCY SELLING. TT-BILLS 1 USD 66,7 66,73 66,3 66,27 1 EUR 70,81 70,85 70,1 70,06 8,52 8,51 1,94 1,81 1,69 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 7,51 5,51 7,51 5,51 5,51 7,51 7,51 8,51 7,51 8,51 8,51 8,51 7,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 1 AUD 51,36 51,39 50,8 50,74 1 DKK 9,52 9,52 9,42 9,42 1 NOK 8,01 8,01 7,93 7,93 1 SEK. OFFICE CARD PREISE 45 23 Feb 2017 aktualisiert um 17.13 Uhr UNIT CURRENCY SELLING. TT-BILLS 1 USD 66,93 66,96 66,53 66,5 1 EUR 70,78 8,64 8,55 8,55 1 SGD 47,48 47,5 46,96 46,94 1,94 1,6 USD 1,69 5,54 5,54 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,51 5,51 5,51 5,51 5,54 5,54 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,54 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,51 1 AUD 51,6 51,63 51,04 50,98 1 DKK 9,51 9,51 9,41 9,41 1 NOK 8,03 8,03 7,94 7,94 Mehr. OFFICE CARD PREISE 45 22 23 Feb 2017 aktualisiert um 13.55 17.13 Uhr UNIT WÄHRUNG VERKAUFEN. TT BILLS 1 USD 67.07 66,93 67,1 66,96 66,67 66,53 66,64 66,5 1 EUR 70,66 70,78 70,7 70,82 69,96 70,08 69,93 70,04 66,06 83,07 83,03 83,04 83,04 83,03 83,03 83,09 83,04 83,04 83,03 83,07 83,06 83,04 83,03 83,03 66,46 66,46 65,71 65,7 65,68 65,67 100 JPY 59,29 59,27 59,32 59,3 58,64. OFFICE CARD PREISE 45 23 Feb 2017 aktualisiert um 17.13 Uhr UNIT CURRENCY SELLING. TT-BILLS 1 USD 66,93 66,96 66,53 66,5 1 EUR 70,78 8,64 8,55 8,55 1 SGD 47,48 47,5 46,96 46,94 1,94 1,6 USD 1,69 5,54 5,54 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,51 5,51 5,51 5,51 5,54 5,54 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,54 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,51 1 AUD 51,6 51,63 51,04 50,98 1 DKK 9,51 9,51 9,41 9,41 1 NOK 8,03 8,03 7,94 7,94 1 SEK. OFFICE CARD PREISE 45 22 Feb 2017 aktualisiert um 13.55 Uhr UNIT CURRENCY SELLING. TT BILLS 1 USD 67.07 67,1 66,67 66,64 1 EUR 70,66 70,7 69,96 1,94 1,94 4,56 8,56 1,94 5,57 4,56 4,56 4,56 4,56 4,56 4,56 4,56 4,56 4,56 4,56 4,56 8,56 8,56 8,56 8,56 8,56 8,56 8,56 8,56 8,56 1 AUD 51,65 51,68 51,08 51,02 1 DKK 9,49 9,49 9,39 9,39 1 NOK 8,03 8,03 7,94 7,94 1 SEK. Mehr. OFFICE CARD PREISE 45 21 22 Feb 2017 aktualisiert um 12.38 13.55 Uhr UNIT CURRENCY SELLING. 66,67 66,64 1 EUR 71,13 70,66 71,17 70,7 70,63 69,67 71,17 69,77 59,67 59,32 59,24 59,29 59,27 59,32 58,54 58,64 58,56 58,61 1 HKD 8,66 8,66. 46,82 46,8 1 AUD. OFFICE CARD PREISE 45 22 Feb 2017 aktualisiert um 13.55 Uhr UNIT CURRENCY SELLING. 66,67 66,64 1 EUR 70,66 70,7 69,96 69,93 1 GBP 83,9 83,94 83,07 83,03 8,96 1,98 5,03 5,65 5,65 5,65 5,65 5,65 5,65 5,64 5,64 5,64 5,64 5,64 5,64 5,64 5,69 KD 46,82 46,8 1 AUD 51,65 51,68 51,08 51,02 1 DKK 9,49 9,49 9,39 9,39 1 NOK 8,03 8,03 7,94 7,94 1 SEK 7,47 7,47 7,39 7,39 1 NZD 48,15 48,17. Zuletzt aktualisiert am. OFFICE CARD PREISE 45 21 Feb 2017 aktualisiert um 12.38 Uhr UNIT CURRENCY SELLING. 66,67 66,64 1 EUR 71,13 71,17 70,43 70,39 1 GBP 83,7 83,74 82,87 82,83 1 CAD 51,16 51,19 50,6 50,57 1 CHF 66,9 66,93 66,17 66,14 100 JPY 59,24 59,27 58,59 58,56 1 HKD 8,66 8,66. 46,82 46,8 1 AUD 51,58 51,61 51,01 50,95 1 DKK 9,57 9,57 9,47 9,47 1 NOK 8,04 8,04 7,95 7,95 1 SEK 7,5 7,5 7,42 7,42 1 NZD 48,15 48,17. Zuletzt aktualisiert am. Mehr. OFFICE CARD PREISE 45 20 21 Feb 2017 aktualisiert um 12.05 12.38 Uhr UNIT WÄHRUNG VERKAUF. TT BILLS 1 USD 67.06 67.07 67.09 67.1 66.66 66.67 66.63 66.64 1 EUR 71.26 71.13 71.3 71.17 70.55 70.43 70.51 70.39 1 GBP 83.49 83.7 83.53 83.74 82.66 82.87 82.62 82.83 1 CAD 51.35 51.16 51.38 51.19 50.79 50.6 50.76 50.57 1 CHF 66.96 66.9 66.99 66.93 66.23 66.17 66,2 66,14 100 JPY 59,33 59,24 59,36 59,27 58,68. OFFICE CARD PREISE 45 21 Feb 2017 aktualisiert um 12.38 Uhr UNIT CURRENCY SELLING. TT BILLS 1 USD 67.07 67,1 66,67 66,64 1 EUR 71,13 71,17 70,43 70,39 1 GBP 83,7 83,74 82,87 82,83 1 CAD 51,16 51,19 50,6 50,57 1 CHF 66,9 66,93 66,17 66,14 100 JPY 59,24 59,27 58,59 58,56 1 HKD 8,66 8,66 8,56 8,56 1 SGD 47,34 47,36 46,82 46,8 1 AUD 51,58 51,61 51,01 50,95 1 DKK 9,57 9,57 9,47 9,47 1 NOK 8,04 8,04 7,95 7,95. OFFICE CARD PREISE 45 20 Feb 2017 aktualisiert um 12.05 Uhr UNIT CURRENCY SELLING. TT BILLS 1 USD 67.06 67.09 66,66 66,63 1 EUR 71,26 71,3 70,55 70,51 1 GBP 83,49 83,53 82,66 82,62 1 CAD 51,35 51,38 50,79 50,76 1 CHF 66,96 66,99 66,23 66,2 100 JPY 59,33 59,36 58,68 58,65 1 HKD 8,66 8,66 8,56 8,56 1 SGD 47,37 47,39 46,85 46,83 1 AUD 51,57 51,6 51,01 50,95 1 DKK 9,59 9,59 9,48 9,48 1 NOK 8,05 8,05 7,96. Mehr. Link zu diesem Änderungsprotokoll Änderungen an der Seite iob. in47ForexRate. aspx werden auf dieser Seite protokolliert, wie sie erkannt werden. Sie können mit diesem Protokoll verknüpfen, indem Sie das HTML unten in Ihre Seite einfügen. Es produziert einen Link, der so aussieht: change logOFFICE CARD PREISE 45 24 27 Feb 2017 aktualisiert um 17.1 12.46 Uhr UNIT CURRENCY SELLING. TT BILLS 1 USD 66,7 66,82 66,73 66,85 66,3 66,42 66,27 66,39 1 EUR 70,81 70,73 70,85 70,77 70,1 70,03 70,06 70,77 70,1 70,03 83,07 70,07 70,07 83,07 83,07 83,07 83,71 70,07 83,07 83,07 83,07 70,71 66,57 66,67 66,67 66,77 66,57 66,48 65,74 65,73 65,71 65,7 100 JPY 59,48 59,7 59,51 59,73 58,83 59,04. OFFICE CARD PREISE 45 27 Feb 2017 aktualisiert um 12.46 Uhr UNIT CURRENCY SELLING. TT BILLS 1 USD 66,82 66,85 66,42 66,39 1 EUR 70,73 70,77 70,03 8,03 8,53 8,53 1 SGD 47,64 47,66 47,11 1,94 1,69 0,69 0,69 5,51 5,61 5,61 0,69 5,51 5,61 5,61 5,61 5,61 5,61 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,51 5,53 5,53 5,53 5,51 5,51 5,51 5,53 5,53 5,53 5,51 5,51 4,0 1 AUD 51,45 51,48 50,89 50,83 1 DKK 9,51 9,51 9,41 9,41 1 NOK 8 8 7,91 7,91 1 SEK. OFFICE CARD PREISE 45 24 Feb 2017 aktualisiert um 17.1 hrs UNIT CURRENCY SELLING. TT-BILLS 1 USD 66,7 66,73 66,3 66,27 1 EUR 70,81 70,85 70,1 70,06 8,52 8,51 1,94 1,81 1,69 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 7,51 5,51 7,51 5,51 5,51 7,51 7,51 8,51 7,51 8,51 8,51 8,51 7,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 1 AUD 51,36 51,39 50,8 50,74 1 DKK 9,52 9,52 9,42 9,42 1 NOK 8,01 8,01 7,93 7,93 1 SEK. Mehr. OFFICE CARD PREISE 45 23 24 Feb 2017 aktualisiert um 17.13 17.1 hrs UNIT WÄHRUNG VERKAUF. TT-BILLS 1 USD 66,93 66,7 66,96 66,73 66,53 66,3 66,5 66,27 1 EUR 70,78 70,81 70,82 70,85 70,08 70,70 70,02 70,05 70,04 70,07 83,07 83,07 83,07 83,07 83,01 83,07 83,07 83,07 83,81 83,07 83,07 83,67 83,01 83,41 66,46 66,56 66,74 66,74 65,67 65,71 100 JPY 59,27 59,48 59,3 59,51 58,62 58,83. OFFICE CARD PREISE 45 24 Feb 2017 aktualisiert um 17.1 hrs UNIT CURRENCY SELLING. TT-BILLS 1 USD 66,7 66,73 66,3 66,27 1 EUR 70,81 70,85 70,1 70,06 8,52 8,51 1,94 1,81 1,69 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,51 7,51 5,51 7,51 5,51 5,51 7,51 7,51 8,51 7,51 8,51 8,51 8,51 7,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 8,51 1 AUD 51,36 51,39 50,8 50,74 1 DKK 9,52 9,52 9,42 9,42 1 NOK 8,01 8,01 7,93 7,93 1 SEK. OFFICE CARD PREISE 45 23 Feb 2017 aktualisiert um 17.13 Uhr UNIT CURRENCY SELLING. TT-BILLS 1 USD 66,93 66,96 66,53 66,5 1 EUR 70,78 8,64 8,55 8,55 1 SGD 47,48 47,5 46,96 46,94 1,94 1,6 USD 1,69 5,54 5,54 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,51 5,51 5,51 5,51 5,54 5,54 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,54 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,51 1 AUD 51,6 51,63 51,04 50,98 1 DKK 9,51 9,51 9,41 9,41 1 NOK 8,03 8,03 7,94 7,94 Mehr. OFFICE CARD PREISE 45 22 23 Feb 2017 aktualisiert um 13.55 17.13 Uhr UNIT WÄHRUNG VERKAUFEN. TT BILLS 1 USD 67.07 66,93 67,1 66,96 66,67 66,53 66,64 66,5 1 EUR 70,66 70,78 70,7 70,82 69,96 70,08 69,93 70,04 66,06 83,07 83,03 83,04 83,04 83,03 83,03 83,09 83,04 83,04 83,03 83,07 83,06 83,04 83,03 83,03 66,46 66,46 65,71 65,7 65,68 65,67 100 JPY 59,29 59,27 59,32 59,3 58,64. OFFICE CARD PREISE 45 23 Feb 2017 aktualisiert um 17.13 Uhr UNIT CURRENCY SELLING. TT-BILLS 1 USD 66,93 66,96 66,53 66,5 1 EUR 70,78 8,64 8,55 8,55 1 SGD 47,48 47,5 46,96 46,94 1,94 1,6 USD 1,69 5,54 5,54 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,51 5,54 5,54 5,54 5,54 5,51 5,51 5,51 5,51 5,54 5,54 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,54 5,51 5,51 5,51 5,51 5,51 5,51 5,51 5,53 5,51 5,51 1 AUD 51,6 51,63 51,04 50,98 1 DKK 9,51 9,51 9,41 9,41 1 NOK 8,03 8,03 7,94 7,94 1 SEK. OFFICE CARD PREISE 45 22 Feb 2017 aktualisiert um 13.55 Uhr UNIT CURRENCY SELLING. TT BILLS 1 USD 67.07 67,1 66,67 66,64 1 EUR 70,66 70,7 69,96 1,94 1,94 4,56 8,56 1,94 5,57 4,56 4,56 4,56 4,56 4,56 4,56 4,56 4,56 4,56 4,56 4,56 8,56 8,56 8,56 8,56 8,56 8,56 8,56 8,56 8,56 1 AUD 51,65 51,68 51,08 51,02 1 DKK 9,49 9,49 9,39 9,39 1 NOK 8,03 8,03 7,94 7,94 1 SEK. Mehr. OFFICE CARD PREISE 45 21 22 Feb 2017 aktualisiert um 12.38 13.55 Uhr UNIT CURRENCY SELLING. 66,67 66,64 1 EUR 71,13 70,66 71,17 70,7 70,63 69,67 71,17 69,77 59,67 59,32 59,24 59,29 59,27 59,32 58,54 58,64 58,56 58,61 1 HKD 8,66 8,66. 46,82 46,8 1 AUD. OFFICE CARD PREISE 45 22 Feb 2017 aktualisiert um 13.55 Uhr UNIT CURRENCY SELLING. 66,67 66,64 1 EUR 70,66 70,7 69,96 69,93 1 GBP 83,9 83,94 83,07 83,03 8,96 1,98 5,03 5,65 5,65 5,65 5,65 5,65 5,65 5,64 5,64 5,64 5,64 5,64 5,64 5,64 5,69 KD 46,82 46,8 1 AUD 51,65 51,68 51,08 51,02 1 DKK 9,49 9,49 9,39 9,39 1 NOK 8,03 8,03 7,94 7,94 1 SEK 7,47 7,47 7,39 7,39 1 NZD 48,15 48,17. Zuletzt aktualisiert am. OFFICE CARD PREISE 45 21 Feb 2017 aktualisiert um 12.38 Uhr UNIT CURRENCY SELLING. 66,67 66,64 1 EUR 71,13 71,17 70,43 70,39 1 GBP 83,7 83,74 82,87 82,83 1 CAD 51,16 51,19 50,6 50,57 1 CHF 66,9 66,93 66,17 66,14 100 JPY 59,24 59,27 58,59 58,56 1 HKD 8,66 8,66. 46,82 46,8 1 AUD 51,58 51,61 51,01 50,95 1 DKK 9,57 9,57 9,47 9,47 1 NOK 8,04 8,04 7,95 7,95 1 SEK 7,5 7,5 7,42 7,42 1 NZD 48,15 48,17. Zuletzt aktualisiert am. Mehr. OFFICE CARD PREISE 45 20 21 Feb 2017 aktualisiert um 12.05 12.38 Uhr UNIT WÄHRUNG VERKAUF. TT BILLS 1 USD 67.06 67.07 67.09 67.1 66.66 66.67 66.63 66.64 1 EUR 71.26 71.13 71.3 71.17 70.55 70.43 70.51 70.39 1 GBP 83.49 83.7 83.53 83.74 82.66 82.87 82.62 82.83 1 CAD 51.35 51.16 51.38 51.19 50.79 50.6 50.76 50.57 1 CHF 66.96 66.9 66.99 66.93 66.23 66.17 66,2 66,14 100 JPY 59,33 59,24 59,36 59,27 58,68. OFFICE CARD PREISE 45 21 Feb 2017 aktualisiert um 12.38 Uhr UNIT CURRENCY SELLING. TT BILLS 1 USD 67.07 67,1 66,67 66,64 1 EUR 71,13 71,17 70,43 70,39 1 GBP 83,7 83,74 82,87 82,83 1 CAD 51,16 51,19 50,6 50,57 1 CHF 66,9 66,93 66,17 66,14 100 JPY 59,24 59,27 58,59 58,56 1 HKD 8,66 8,66 8,56 8,56 1 SGD 47,34 47,36 46,82 46,8 1 AUD 51,58 51,61 51,01 50,95 1 DKK 9,57 9,57 9,47 9,47 1 NOK 8,04 8,04 7,95 7,95. OFFICE CARD PREISE 45 20 Feb 2017 aktualisiert um 12.05 Uhr UNIT CURRENCY SELLING. TT BILLS 1 USD 67.06 67.09 66,66 66,63 1 EUR 71,26 71,3 70,55 70,51 1 GBP 83,49 83,53 82,66 82,62 1 CAD 51,35 51,38 50,79 50,76 1 CHF 66,96 66,99 66,23 66,2 100 JPY 59,33 59,36 58,68 58,65 1 HKD 8,66 8,66 8,56 8,56 1 SGD 47,37 47,39 46,85 46,83 1 AUD 51,57 51,6 51,01 50,95 1 DKK 9,59 9,59 9,48 9,48 1 NOK 8,05 8,05 7,96. Mehr. Link zu diesem Änderungsprotokoll Änderungen an der Seite iob. in47ForexRate. aspx werden auf dieser Seite protokolliert, wie sie erkannt werden. Sie können mit diesem Protokoll verknüpfen, indem Sie das HTML unten in Ihre Seite einfügen. 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Forex Wikipedia Indonesien

Forex Trading, Aktienindizes, Öl, Gold und CFDs von XM Forex Trading, Aktienindizes, Öl, Gold und CFDs von XM Legal: XM ist ein Handelsname von Trading Point Holdings Ltd, Registriernummer: HE 322690, (12 Richard Verengaria Street , Araouzos Castle Court, 3. Stock 3042 Limassol, Zypern), die im Besitz von Trading Point of Financial Instruments Ltd (Zypern), Registriernummer: HE 251334, (12 Richard Verengaria Straße, Araouzos Schlosshof, 3. Stock, 3042 Limassol, Zypern) . Diese Website wird von Trading Point of Financial Instruments Ltd. betrieben. Der Handelspunkt der Financial Instruments Ltd wird von der Cyprus Securities and Exchange Commission (CySEC) unter der Lizenznummer 12010 reguliert und bei der FCA (FSA, UK) unter der Nr. 538324. Der Handelspunkt der Finanzinstrumente AG ist gemäß der Richtlinie über Märkte für Finanzinstrumente (MiFID) der Europäischen Union tätig. Risiko-Warnung: Forex Trading beinhaltet ein erhebliches Risiko für Ihr investiertes Kapital. Bitte lesen und sicherstellen, dass Sie unsere Risk Disclosure vollständig verstehen. Eingeschränkte Regionen: Trading Point of Financial Instruments Ltd erbringt keine Dienstleistungen für Bürger bestimmter Regionen wie die Vereinigten Staaten von Amerika. :, -,. IFOREX . - -,. . -,. Mobile -,,. . - iPhone Android iFOREX Gruppe: Formula Investment House Ltd,, SIBAL131060. ICFD Limited,, (CySEC) 14311. eBrkerhz Befektetsi Szolgaltato Zrt. , II73.0592000 III73.059-42002. Formula Investment House Ltd. Forex, CFD (). , Forex CFD,. Aufrechtzuerhalten. -,. Aufrechtzuerhalten. IFOREX,. . ,,,. F. I.H. Formula Investment House Clearing Ltd. 2016 iFOREX IFOREX iFOREX Gruppe. ,,.forex indonesien wikipedia Anda sedang mencari info tentang forex indonesien wikipedia. Kami menyediakan info seputar forex, belajar forex dan Handel valas di Website ini. Anda juga bisa mencari artikel lain di blog ini Jika tidak menemukan artikel yang di cari di PanduanValas. Bisa juga melakukan pencarian dengan kata kunci lain selain forex indonesien wikipedia atau kalian bisa anfrage menggunakan halaman kontak yang tersedia. Silahkan juga lihat berbagai topik seputar forex yang kami siapkan dibawah ini. Forex indonesien wikipedia benar-benar tepat sasaran diperlukan Kami dari team Panduanvalas berkomitmen untuk memberikan informasi cara belajar forex kostenlos yang efektif dan tepat sasaran. Materi belajar forex dalam bahasa indonesien yang kami sajikan Belajar forex untuk pemula Jika anda baru saja mengenal dunia forex handel atau handel valas, biasanya kesulitan dalam bagaimana cara belajarnya. Banyak dari materi seputar forex yang beredar Roboter forex atau Expert Advisor (EA) merupakan metode Handel dengan bantuan sistem secara otomatis. Dengan menggunakan EArobot Handel, und ein tidak perlu melakukan transaksi secara Handbuch, semua proses transaksi kaufen. Gambar grafik f (x) 2X 1 adalah candlestick forex wallpaper f (x) 2 bahasa indonesien f (x) 15x berarti forex adalah penipuan forex arti tl x istilah bisnis Bisnis Handel Yang Hoax forex tipu fungsi Sieg. Asien yaitu Jepang, Singapur, dan Hongkong. Lalu ke pasar Eropa yaitu Jerman dan Inggris, dan akhirnya sampai ke pasar Amerika Serikat. Forex Indonesien Forex Trading online di Indonesien Mulai. Bagaimana cara kerja forex Mungkin pertanyaan ini sering muncul dalam pikiran anda, terutama saat masih baru terjun. Dalam artikel ini kami coba jelaskan bagaimana cara kerja Handel forex secara. Cara Bermain forex untuk pemula Bagaimana cara bermain forex yang aman bagaimana cara handel forex bagi pemula Pertanyaan ini sering muncul didalam benak kita saat pertama mengenal handel. Banyaknya Oknum dan Penipuan Forex Trading online Sering Dijadikan Kedok Bagi Oknum Penipu di Indonesien. Banyak-Programm Investasi Cara Cepat Kaya Yang Mengatas-Namakan Forex Trading, Padahal Dalam Keniataannya Hanya Berupa. Ini, handel forex tidak selalu harus memerlukan modal besar lagi. Saat teknologi internet belum terjangkau banyak masyarakat, Handel forex di Indonesien memang identik dengan modal besar. Anda harus mengeluarkan modal Satu hal dasar yang perlu diketahui dalam belajar forex Jam Trading forex di Indonesien ataupun Marmelade Handel Forex Dunia Sama Saja Sebetulnya, Tidak Ada Perbedaan. Dalam pergerakannya

Forex Willkommen Bonus Ohne Einzahlung

Starten Sie Trading Online mit 50 Gratis Bonus Handel Jetzt mit den besten Handelsbedingungen Warum wählen Sie uns MXTrade, mit seinen exklusiven Geschäftsbedingungen und erfahrenen Team gedeiht bei der Erhaltung einer professionellen und gleichzeitig freundlichen Engagement mit seinen Kunden. Unsere Firma Position auf dem Markt macht einen Unterschied, da es alle Vorteile bietet, die Kunden wirklich suchen. Unser Ziel als Forex-Broker ist es, den Weg durch den Einsatz von reinen niedrigen Spreads, Cuttingedge-Technologien, Pionier-Systemen und flexible Trading-Account-Typen zu führen. Diese Handelsvorteile können Einzelhandel und institutionelle Kunden helfen, ihren Handel auf die nächste Ebene zu bringen. Unsere ECN-Ausführung sorgt dafür, dass Sie den niedrigstmöglichen Floating-Spread-Preis erhalten, ohne versteckte Gebühren oder zusätzliche Provisionen. Wir bieten eine Auswahl an verschiedenen Account-Pakete an, die allen Kundenbedürfnissen entsprechen, einschließlich islamischer Konten. Unser engagiertes Support-Team steht Ihnen zur Verfügung. Über 10 Sprachen Unterstützung, kostenlose 1-on-1 Personal Training, kostenlose Bildungs-Kurse MXTrade ist eine Marke im Besitz und betrieben von Grizzly Limited. MXTrade und Grizzly Limited sind von der MFSA nicht zugelassen oder zugelassen, um Investitions - oder sonstige Finanzdienstleistungen in oder aus Malta zu erbringen, die nach maltesischem Recht lizenziert oder zugelassen sind. RISIKO-WARNUNG Der Handel mit CFDs und Spot FX Contracts beinhaltet ein hohes Risiko. CFDs Handel kann nicht für jedermann geeignet sein, so dass Händler müssen sicherstellen, dass sie vollständig anerkennen alle finanziellen und rechtlichen Aspekte und akzeptieren jegliche Gefahr von Verlusten, die in ihrer Investition auftreten könnte. Unabhängige Beratung sollte bei Bedarf gesucht werden. FOREX WILLKOMMEN BONUS OHNE KAUTION GET IHRE BONUS UND FÜHLEN GESCHMACK ZU FOREX Nicht alle Makler (Handelszentren) bieten einen kostenlosen Einzahlungsbonus forex ermöglichen es, zu spielen und zurückzuziehen. Der Kunde ist gelernt und sobald der Kunde anfängt, das Handelszentrum zu gewinnen (DC) findet einen Weg, um ihm kein Geld zu zahlen. Vollständige Garantie für freies (wie z. B. freier Bonus ist) nobony wird in der Lage zu geben, aber zumindest gibt es Handelszentren, die nicht die Reputation der Betrug Kunden durch die Bereitstellung keine Einzahlungsbonus Forex. Fühlen Sie Forex im Geschmack - wie ist es, wer es einmal gemacht hat - weiß. Ein Mann bekommt einen unauslöschlichen Eindruck, wie sein Geld zunimmt oder abnimmt. Einige Händler sagen direkt, dass sie auf Forex gehakt sind. Diese Abhängigkeit ist wie eine Sucht. Der Handel sollte vernünftig sein, man muss in der Lage sein, die Graffics zu fangen und nicht alles in einen Deal zu bringen und alles zu verlieren. 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Promotionsregel Einzahlungsbonus kann nur einem verifizierten Konto gutgeschrieben werden. Hebel 200: 1, Mindesthandelsgröße 0,01 Los. Es wird keine Agentenkommission für den Handel auf Bonuskonten gutgeschrieben. Für den Bonushandel wird ein spezieller Willkommenskonto eröffnet. Der Bonus kann nicht zu einem anderen Kontotyp hinzugefügt werden (Gold, Platin oder IB). FW Markets können Kunden Bonusanwendungen jederzeit ohne vorherige Ankündigung ablehnen oder Gründe für diese Entscheidung begründen. FW-Märkte können jederzeit ohne vorherige Ankündigung einen Kundenbonus kündigen. Jede Person kann nur einmal teilnehmen und das Öffnen mehrerer Bonuskonten (einschließlich der Verwandtschaftsidentitäten) ist verboten. Jegliche missbräuchliche oder betrügerische Versuche, einschließlich unerwarteter Handelsstrategien, auf diese Promotion können zu Bonus - und Trades-Kündigungen führen, einschließlich der Möglichkeit einer Gewinnentzugsabstimmung. FW-Märkte behalten sich das Recht vor, Bonus-Antrag zurückzuweisen oder ein Konto zu sperren oder die Geschäfte zu entfernen und zu profitieren, wenn es eine teilweise oder vollständige Übereinstimmung von IP, Klienten persönliche Daten oder eine Angabe von Konten eines gleichen Eigentümers gibt. Sie können Profit-Fonds aus Ihrem 10 Cash Reward-Konto ohne Einschränkung zurückziehen, wenn Ihr Handelsvolumen auf 2 Los angesammelt wird. Jede Situation, die in diesen Regeln nicht beschrieben ist, unterliegt der Entscheidung der Gesellschaft. Die FW-Märkte behalten sich das Recht vor, diese Aktion mit einer Benachrichtigung in den Unternehmensnachrichten zu ändern, zu aktualisieren oder zu stornieren. FW Markets LTD wurde 2013 in St. Vincent und die Grenadinen unter der Lizenznummer 20997 IBC 2013 registriert. Die Gesellschafts - und Korrespondenzadresse ist Cedar Hill Crest, P. O. Box 1825, Villa, St. Vincent und die Grenadinen. Mehr Risiko-Warnung: Die Investition in Finanzinstrumente sowie der Handel mit FOREX und anderen Leveraged Derivaten beinhaltet ein hohes Risiko und ist möglicherweise nicht für alle Anleger geeignet. Der Handel solcher Finanzinstrumente kann sowohl Verluste als auch Gewinne auf die relativ geringen Bewegungen des zugrunde liegenden Marktes erhöhen. FW Markets LTD oder seine Beamten sind nicht verantwortlich für Verluste, und vor dem Handel sollte man einen unabhängigen Berater oder eine professionelle Einrichtung bei Bedarf konsultieren. Weitere Informationen entnehmen Sie bitte der Gefahrwarnung, die auf unserer Website zur Verfügung steht. Kopiere Copyright 2015. Alle Rechte vorbehalten.

Forex Tradingcharts Com

TradingCharts Die Quelle für kostenlose Marktzitate, Charts und News - - über 30.000 Rohstoff-Futures-Zitate. Börsenkurs und Forex-Raten und Charts nach nordamerikanischen und internationalen Forex-Währungen, Futures-Kontrakte und Aktien. Preis-Charts TradingCharts Charts Tausende von Preis-Charts täglich, nach fast jedem Lager amp Rohstoff-Markt. Und jedes große und kleinere Forex-Währungspaar (Devisen) - plus viele international gehandelte Aktien und Rohstoff-Futures. Die Charts zeichnen technische Indikatoren wie Schließpreis, Handelsvolumen und gleitende Durchschnitte, die für technische Analysen geeignet sind, um Markttrends zu identifizieren. Intra-Day-Quotes Intra-Tage-Waren-Zukunft Zitate. Forex zitiert amp Börsenkurse sind verfügbar. Zitate werden während jedes Trading-Tages kontinuierlich aktualisiert und verzögert die absolute Mindestzeit, die von jedem Wechselkurs benötigt wird. Preise Zitate amp Commodity Charts - Free TradingCharts ist die führende Quelle für kostenlose Futures - und Rohstoffpreise Zitate und Charts sowie andere Marktinformationen, einschließlich Futures Und Warennachrichten. TradingCharts verfolgt viele Rohstoffe und Finanzindikatoren, so dass die Informationen in Form von kostenlosen Rohstoffkarten und Intraday-Rohstoffzitaten zur Verfügung stehen. Eine Fülle von informativen Ressourcen steht den Beteiligten die Rohstoff-Futures-Märkte zur Verfügung. Genießen Sie schnellen Zugriff auf die Rohstoffpreise Charts und Zitate, in denen Sie am meisten interessiert sind mit dem personalisierten Diagrammen Menü. Seien Sie sicher, das online Commodity Traders Forum zu überprüfen. Ein freundlicher Treffpunkt, wo sich Warenhändler und Rohstoffmakler treffen, um Handelsstrategien zu diskutieren und Erfahrungen auszutauschen. Sie werden auch ein großes Verzeichnis von Rohstoffmaklern entdecken. Ein Online-Glossar der Futures-Terminologie und ein kurzer Bildungskurs zum Rohstoffhandel. "Mein Menuquot Fast Access" Ihr Ziel für freie Forex Charts. Willkommen in der Premier-Ressource für alle Ihre Forex-Chart braucht. Egal, was Ihre Erfahrung Ebene, werden wir halten Sie im Einklang mit dem Markt und helfen Ihnen auf Ihrem Weg zu einem erfolgreichen Händler. Wenn Sie bereits ein erfahrener Trader sind, haben Sie hier die Gelegenheit, einige der faszinierenden Eigenschaften von Devisenhandels-Charts wiederzuerlangen, die Ihr Verständnis des Themas erfrischen und vielleicht sogar neue Einblicke auf dem Weg erwerben können. EURUSD: Wo die Aktion ist Alle Währung Paar Charts Unsere umfangreiche Forex Charts Abschnitt umfasst die neun beliebtesten Währungspaare. Jede Symbolseite enthält ein Echtzeit-Live-Diagramm mit historischen Daten zu allen nützlichen Frequenzen. Wir analysieren auch das Paar und erzählen von den Eigenschaften und wie man es handelt. AUDCAD AUDCHF USDZAR Was ist ein Forex Chart Forex Trading beinhaltet den Verkauf einer Währung, und der gleichzeitige Kauf eines anderen mit dem Zweck der Schließung der Position zu einem späteren Zeitpunkt mit einem Gewinn. Anders als in den Aktien - oder Rohstoffmärkten, in denen die Preise routinemäßig in USD notiert sind, kann der Preis einer Währung in einer anderen Währung aufgrund der im Wesentlichen Tauschart von Devisentransaktionen, in denen leben, sowie historische Forex-Charts verwendet werden, um Trends zu identifizieren Und Eintrittspunkte für Trades. Der Forex-Markt ist der liquideste und aktivste Markt der Welt. In jeder zweiten Sekunde wird eine enorme Menge an Transaktionen durchgeführt, wobei der gesamte Tagesumsatz regelmäßig auf Billionen von Dollars geschätzt wird. Wenn wir nicht von einem analytischen Werkzeug wie einem Forex-Diagramm Gebrauch machten, um die Daten in eine kompaktere Form zu bringen, wo es visuell untersucht und analysiert werden könnte, wären wir im Besitz eines riesigen Meeres von schwierig, Zahlen zu interpretieren. Das Forex Trading Chart ist dann eine visuelle Hilfe, die die Erkennung von Trends und Muster im Allgemeinen einfacher macht und macht die Anwendung von technischen Tools der Analyse überhaupt möglich. Die Charts werden nach der Art und Weise, wie die Preisaktion dargestellt wird, sowie der Zeitrahmen des zu prüfenden Zeitraums kategorisiert. Stellen Sie sich vor, dass wir ein 4-stündiges Candlestick-Diagramm des EURUSD-Paares haben. Dies bedeutet, dass jeder Leuchter auf dem Diagramm die Preisdaten einer vierstündigen langen Periode in einer kompakten Form präsentiert. Was in diesem Zeitraum passiert, ist irrelevant. Wenn wir ein stündliches Diagramm gewählt hätten, würde jeder Leuchter auf dem obigen Diagramm durch vier verschiedene Leuchter ersetzt werden. Es gibt viele Möglichkeiten der Darstellung der Preis-Aktion auf einem Forex Trading Chart. Bar-Charts, Candlestick-Charts, Linie Forex Trading Charts sind ein paar der vielen Optionen zur Verfügung, mit jedem bietet seine eigenen Vorteile in einigen Aspekt der Analyse und Utility. Aber sie alle tun dasselbe: Sie zeichnen die Preise eines Tages (oder eine gewisse mathematische Manipulation der Preisdaten) auf die Zeitreihen auf der horizontalen Achse, die dann von den Händlern verwendet wird, um die Marktaktion zum Zweck zu bewerten und zu verstehen Einen gewinn erzielen. Da Währungen in Paaren gehandelt werden, ist es unpraktisch und nicht sehr nützlich, ein reines USD-Forex-Diagramm zu zeichnen. Stattdessen haben wir die Möglichkeit, ein Diagramm des USDJPY-Paares oder des AUDUSD-Paares zu zeichnen (oder vielmehr das Software-Plot zu haben), da es nur möglich ist, eine Währung in Bezug auf eine andere zu zitieren. Auf der anderen Seite gibt es einige Forex-Charts, die gewichteten Durchschnitt dieser Währungspaare nehmen, um einen Gesamtindex für eine Währung abzuleiten. Der berühmte USD-Index ist ein gutes Beispiel. Charts sind die Schlüssel, die es uns erlauben, die Geheimnisse des Devisenhandels freizuschalten. Das Thema deckt einen großen Boden, und nur durch kontinuierliche Praxis können wir erwarten, die Notwendigkeit fließend und Know-how in der Bewertung zu erwerben. Die Sprache der Forex-Charts ist wirklich die Sprache des Devisenhandels. Es wird einige Zeit dauern, es zu lernen, aber wenn Sie so ein Muttersprachler sind, sind Ihre Phantasie und Kreativität die Grenzen für Ihr Potenzial. Wir bieten aktualisierte Forex-Charts auf den beliebtesten Währungspaaren sowie weitere Informationen über technische Analysen mit Hilfe von Forex Charts in unserem Forex Charts Bereich. Broker für Chartisten Die Auswahl eines Brokers kann langweilig sein, deshalb haben wir die Zeit verbracht, die beliebtesten und seriösen Broker zu vergleichen und zu untersuchen. Kombiniert mit der Forschung und den variablen Plattformen, die bei der Auswahl eines Maklers wichtig sind, der am besten zu Ihnen passt. Wir haben eine Liste der empfohlenen Devisenmakler zusammengestellt. Premier Forex Trading News-Site Gegründet im Jahr 2008, ist ForexLive die führende Devisenhandel News-Website bietet interessante Kommentar, Meinung und Analyse für echte FX Trading-Profis. Holen Sie sich die neuesten brechen Devisenhandel Nachrichten und aktuelle Updates von aktiven Händlern täglich. ForexLive Blog-Posts Feature führende technische Analyse Charting Tipps, Forex-Analyse und Währung Paar Handel Tutorials. Finden Sie heraus, wie Sie Schwankungen in globalen Devisenmärkten nutzen und unsere Echtzeit-Forex-News-Analyse und Reaktionen auf Zentralbanknachrichten, Wirtschaftsindikatoren und Weltveranstaltungen sehen können. 2017 - Live Analytics Inc v.0.8.2659 HIGH RISK WARNUNG: Der Devisenhandel trägt ein hohes Risiko, das für alle Anleger nicht geeignet ist. Leverage schafft zusätzliche Risiko - und Verlustrisiken. Bevor Sie sich entscheiden, Devisen zu handeln, sollten Sie sorgfältig Ihre Anlageziele, Erfahrungsniveau und Risikobereitschaft berücksichtigen. Sie könnten einige oder alle Ihre ursprüngliche Investition verlieren nicht Geld investieren, dass Sie sich nicht leisten können, zu verlieren. Erziehen Sie sich auf die Risiken im Zusammenhang mit Devisenhandel, und suchen Sie Rat von einem unabhängigen Finanz-oder Steuerberater, wenn Sie irgendwelche Fragen haben. BERATUNG WARNUNG: FOREXLIVE bietet Referenzen und Links zu ausgewählten Blogs und anderen Quellen von Wirtschafts - und Marktinformationen als Bildungsdienst für ihre Kunden und Interessenten und unterstützt die Meinungen oder Empfehlungen der Blogs oder anderer Informationsquellen nicht. Kunden und Interessenten werden empfohlen, die in den Blogs oder anderen Informationsquellen angebotenen Meinungen und Analysen sorgfältig im Kontext des Kunden oder der Perspektiven individueller Analyse und Entscheidungsfindung zu berücksichtigen. Keiner der Blogs oder anderer Informationsquellen soll als eine Erfolgsbilanz angesehen werden. Die bisherige Wertentwicklung ist keine Garantie für zukünftige Ergebnisse und FOREXLIVE berät Kunden und Interessenten, alle Forderungen und Vertretungen, die von Beratern, Bloggern, Geldmanagern und Systemverkäufern gemacht wurden, sorgfältig zu überprüfen, bevor sie Geld investieren oder ein Konto bei jedem Forex-Händler eröffnen. Alle Nachrichten, Meinungen, Recherchen, Daten oder sonstigen Informationen, die auf dieser Website enthalten sind, werden als allgemeiner Marktkommentar bereitgestellt und stellen keine Anlage - oder Handelsberatung dar. FOREXLIVE lehnt ausdrücklich jegliche Haftung für irgendwelche verlorenen Kapital oder Gewinne ohne Einschränkung ab, die direkt oder indirekt aus der Nutzung oder dem Vertrauen auf diese Informationen entstehen können. Wie bei all diesen Beratungsleistungen sind die bisherigen Ergebnisse niemals eine Garantie für zukünftige Ergebnisse. Viewing Touch Klicken Sie auf eine beliebige Stelle, um zu schließen

Iq Options Trading Strategie

Bis zu 91 feste Auszahlungen 1 Trades 10 Kaution Überprüfen Sie iqoption TOTALLY kostenlose Demo-Konto HIGH RISK INVESTMENT WARNUNG: Trading Binary Options tragen ein hohes Risiko und können zum Verlust aller Ihrer Fonds führen. IQ-Optionen 8211 IQ Optionsprüfung, UK kostenlose Demo, Login IQ Option ist der innovativste Binär-Option-Broker. Der Bonus 8211 vom 12.2016 gibt es keine Boni mehr auf IQ Option. IQ Option bietet viel mehr als das und es macht es branchenführendes Angebot in der Binary Option Industrie. Kostenlose Demo-Konto, keine Zahlung und Registrierung erforderlich bis zu 91 festen Gewinn Stand der Technik mobile Plattform Einlagen beginnen von 10 so it8217s einfach zu starten Investitionen Transaktionen nur 1 sind ideal für Anfänger mit niedrigen Einlagen interaktive Web-basierte Ausbildung schnell und einfach Abhebungen und Ablagerungen kostenlose Turniere und sehr attraktive Buy-Ins Turniere am zuverlässigsten Binary Option Broker besten Affiliate-Programm in der Branche die Anführungszeichen von Thomson Reuters Fonds gehalten sicher in der Europäischen Bank IQ Option in Großbritannien (Wales, Schottland, Nordirland, England) Irland Wenn you8217ve Jemals gefragt über den Handel binäre Optionen, da8217s eine gute Chance, dass Sie vielleicht von IQ Option in Großbritannien gehört haben. In der Europäischen Union hat die IQ Option in den letzten fünf Jahren eine große Folge gewonnen. Best of all, im Gegensatz zu einigen binären Handelsplattformen, die eine große anfängliche Beteiligung verlangen, erfordert die IQ Option in Großbritannien nur ein Minimum von 10 Pfund, um loszulegen. Diese hoch zugängliche Plattform bedeutet, dass selbst die vorsichtigsten Investoren ihre Füße ins Wasser tauchen können. IQ Optionsprüfungstabelle: Binäre Optionsstrategien Erfolgreiche Binäroptionen Der Handel ist abhängig von fundierten Handelsstrategien. Eine Handelsstrategie ist ein Plan, warum ein Händler eine Position einnehmen wird, wenn ein Trader sich entscheiden wird, es zu nehmen, und wie lange sie es behalten werden. Eine Handelsstrategie kombiniert Einstiegsstufen, Ausstiegsniveaus und Geldmanagement, um einen Plan zu formulieren, der einige der höheren Risikorelemente aus dem Entscheidungsprozess eliminiert. Einige Händler folgen einer Handelsstrategie starr und machen wenig oder keine Zulagen für Veränderungen in den Märkten. Andere Händler haben flexiblere Handelsstrategien, müssen aber darauf achten, nicht zu viel dem Zufall zu überlassen. Binäre Optionen Strategien von Mircea Binäre Optionen Strategien von Monique Ammala EURUSD Trading Strategie Strategie mit Moving Averages Inside Bar Strategie Apfel (AAPL) Trading-Strategie 60 Zweite Trading-Strategie Warum Sie eine Binär-Options-Strategie brauchen Eine klar definierte Strategie für binäre Optionen Handel wird sicherlich zu erhöhen Ihre Aussichten, Ihre Investitionen in Gewinn zu verwandeln. Wenn ein Trader mit binären Optionen mehr erfahren wird, können sie fortschrittlichere Insiderstrategien einbinden. Dazu gehören Bearish Strategy, Range-Volatility Trading, Binary Fence Trading, unvorhersehbare Marktbewegung und Money Management. Binäre Optionen sind hervorragend für die Umsetzung verschiedener Strategien, die keine großen Investitionen benötigen. Es ist jedoch wichtig, eine parallele Strategie zur Begrenzung des Verlustrisikos anzugehen. Obwohl der Handel mit binären Optionen durch die All - oder Nichts-Option macht es möglich, große Gewinne zu generieren, kann es auch den Großteil Ihrer anfänglichen Investition in Gefahr bringen. Vor der Annahme einer Strategie ist es wichtig, ein Verständnis für die verschiedenen Markttendenzen zu gewinnen. Die kurzfristige Natur der binären Optionen ermöglicht es Ihnen, Ihre Strategie von einem Handel zu einem anderen zu ändern, ohne den Faden zu verlieren, was auf dem Markt passiert. Dies wird Ihr Wissen über die Marktbedingungen schnell verbessern und Ihnen helfen, Verbindungen zwischen den verschiedenen Ereignissen und Tendenzen zu identifizieren. Einige populäre Strategien, die regelmäßig auf dem Standardoptionsmarkt verwendet werden, wie etwa die Deckung von Investorenpositionen durch umgekehrte Positionen (Call against Put), sind bei der Anwendung auf binäre Handelsoptionen stark vereinfacht. Die Risiken sind im Voraus bekannt und ihre Kontrolle hängt von der Trader Fähigkeit, ihre Positionen in einer intelligenten Weise durch die korrekte Verteilung ihres Kapitals zu decken. Ein weiterer Vorteil von Trading-Strategien mit binären Optionen ist, dass die höheren Gewinne ermöglichen eine einfachere und schnellere Abdeckung von Verlusten. How To Trade Volatility 8211 Chuck Norris Style Wenn Handel Optionen, eine der härtesten Konzepte für Anfänger Händler zu lernen ist Volatilität und speziell WIE ZU TRADE VOLATILITY. Nach dem Erhalt zahlreicher E-Mails von Personen zu diesem Thema, wollte ich einen eingehenden Blick auf Option Volatilität zu nehmen. Ich werde erklären, welche Option Volatilität ist und warum es wichtig ist. Ill diskutieren auch den Unterschied zwischen historischer Volatilität und impliziten Volatilität und wie können Sie dies in Ihrem Handel, einschließlich Beispiele verwenden. Ill dann schauen Sie sich einige der wichtigsten Optionen Trading-Strategien und wie steigende und fallende Volatilität wird sie beeinflussen. Diese Diskussion gibt Ihnen ein detailliertes Verständnis davon, wie Sie Volatilität in Ihrem Handel verwenden können. OPTION TRADING VOLATILITY EXPLAINED Option Volatilität ist ein wichtiges Konzept für Option Händler und auch wenn Sie ein Anfänger sind, sollten Sie versuchen, zumindest ein grundlegendes Verständnis haben. Die Option Volatilität spiegelt sich im griechischen Symbol Vega wider, das als der Betrag definiert ist, den der Preis einer Option im Vergleich zu einer Veränderung der Volatilität verändert. Mit anderen Worten, eine Option Vega ist ein Maß für die Auswirkung von Änderungen der zugrunde liegenden Volatilität auf den Optionspreis. Alles andere gleich (keine Bewegung in Aktienkurs, Zinssätze und kein Zeitablauf), werden die Optionspreise erhöht, wenn es zu einer Erhöhung der Volatilität und Abnahme kommt, wenn eine Verringerung der Volatilität vorliegt. Daher ist es zu der Begründung, dass Käufer von Optionen (die, die lange entweder Anrufe oder Puts), von erhöhter Volatilität profitieren und Verkäufer von einer verminderten Volatilität profitieren werden. Dasselbe gilt für Spreads, Debit Spreads (Trades, wo man bezahlt, um den Handel zu platzieren) wird von einer erhöhten Volatilität profitieren, während Credit Spreads (Sie erhalten Geld nach dem Platzieren des Handels) von einer verminderten Volatilität profitieren. Hier ist ein theoretisches Beispiel, um die Idee zu demonstrieren. Let8217s Blick auf eine Aktie bei 50. Betrachten Sie eine 6-Monats-Call-Option mit einem Ausübungspreis von 50: Wenn die implizite Volatilität 90 ist, ist der Optionspreis 12,50 Wenn die implizite Volatilität 50 ist, ist der Optionspreis 7,25 Wenn die implizite Volatilität ist 30, der Optionspreis ist 4,50 Dies zeigt Ihnen, je höher die implizite Volatilität, desto höher der Optionspreis. Im Folgenden sehen Sie drei Screenshots, die einen einfachen, at-the-money langen Anruf mit 3 verschiedenen Ebenen der Volatilität widerspiegeln. Das erste Bild zeigt den Anruf, wie es jetzt ist, ohne Veränderung der Volatilität. Sie können sehen, dass die aktuelle breakeven mit 67 Tagen bis zum Verfall ist 117,74 (aktuelle SPY Preis) und wenn die Aktie stieg heute auf 120, würden Sie 120,63 in Gewinn haben. Das zweite Bild zeigt den Anruf gleichen Anruf, aber mit einem 50 Anstieg der Volatilität (dies ist ein extremes Beispiel, um meinen Punkt zu demonstrieren). Sie können sehen, dass die aktuelle breakeven mit 67 Tagen bis zum Verfall ist jetzt 95,34 und wenn die Aktie stieg heute auf 120, hätten Sie 1.125.22 in Gewinn. Das dritte Bild zeigt den Anruf gleichen Anruf, aber mit einer 20 Abnahme der Volatilität. Sie können sehen, dass die aktuelle breakeven mit 67 Tagen bis zum Verfall ist jetzt 123,86 und wenn die Aktie stieg heute auf 120, würden Sie einen Verlust von 279,99 haben. WARUM IST ES WICHTIG Einer der Hauptgründe für die Notwendigkeit, die Option Volatilität zu verstehen, ist, dass es Ihnen erlaubt zu bewerten, ob Optionen sind billig oder teuer durch den Vergleich von Implied Volatility (IV) zu Historical Volatility (HV). Unten ist ein Beispiel für die historische Volatilität und implizite Volatilität für AAPL. Diese Daten können Sie ganz einfach von ivolatility erhalten. Sie können sehen, dass zu der Zeit, AAPLs Historical Volatility war zwischen 25-30 für die letzten 10-30 Tage und die aktuelle Ebene der impliziten Volatilität ist etwa 35. Dies zeigt Ihnen, dass Händler erwarteten große Züge in AAPL gehen im August 2011. Sie können auch sehen, dass die aktuellen Ebenen der IV, sind viel näher an der 52 Woche hoch als die 52 Woche niedrig. Dies deutet darauf hin, dass dies potenziell eine gute Zeit war, um Strategien zu betrachten, die von einem Sturz in IV profitieren. Hier sehen wir diese grafisch dargestellten Informationen. Sie können sehen, dass es eine riesige Spitze Mitte Oktober 2010 gab. Dies fiel mit einem 6 Tropfen AAPL Aktienkurs zusammen. Drops wie diese Ursache Investoren zu ängstlich werden und diese erhöhte Ebene der Angst ist eine große Chance für Optionen Trader, um zusätzliche Prämie über Netto-Verkauf Strategien wie Credit Spreads abholen. Oder, wenn Sie ein Inhaber von AAPL Lager waren, könnten Sie die Volatilität Spike als eine gute Zeit, um einige abgedeckte Anrufe zu verkaufen und abholen mehr Einkommen als Sie in der Regel für diese Strategie. Im Allgemeinen, wenn Sie sehen, IV Spikes wie diese, sie sind kurz gelebt, aber bewusst sein, dass die Dinge können und werden schlimmer, wie im Jahr 2008, also nicht nur davon ausgehen, dass die Volatilität wieder auf normale Ebenen innerhalb von wenigen Tagen oder Wochen. Jede Optionsstrategie hat einen griechischen Wert, der als Vega bekannt ist, oder Position Vega. Deshalb, da sich die impliziten Volatilitätswerte ändern, wird sich die Strategieentwicklung weiter auswirken. Positive Vega-Strategien (wie lange Puts und Anrufe, Backspreads und lange Stranglesstraddles) am besten, wenn implizite Volatilitätsniveaus steigen. Negative Vega-Strategien (wie kurze Puts und Anrufe, Verhältnis Spreads und kurze erwürgt Straddles) am besten, wenn implizite Volatilitätsstufen fallen. Klar, zu wissen, wo implizite Volatilität Ebenen sind und wo sie wahrscheinlich sind, nachdem Sie einen Handel platziert haben, kann den Unterschied in das Ergebnis der Strategie zu machen. HISTORISCHE VOLATILITÄT UND IMPLIZIERTE VOLATILITÄT Wir kennen die historische Volatilität wird berechnet, indem wir die Bestände über die Preisbewegungen messen. Es ist eine bekannte Figur, da sie auf vergangenen Daten basiert. Ich möchte in die Details gehen, wie man HV zu berechnen, da es sehr einfach ist, in Excel zu tun. Die Daten sind für Sie auf jeden Fall leicht verfügbar, so dass Sie in der Regel nicht brauchen, um es selbst zu berechnen. Der wichtigste Punkt, den Sie hier wissen müssen, ist, dass im Allgemeinen Aktien, die in der Vergangenheit große Preisschwankungen hatten, ein hohes Maß an historischer Volatilität haben werden. Als Optionen Trader, sind wir mehr daran interessiert, wie flüchtige eine Aktie wird wahrscheinlich während der Dauer unseres Handels sein. Historische Volatilität gibt einen Leitfaden, wie flüchtig eine Aktie ist, aber das ist keine Möglichkeit, zukünftige Volatilität vorherzusagen. Das Beste, was wir tun können, ist, es zu schätzen, und dies ist, wo Implied Vol kommt. 8211 Implizite Volatilität ist eine Schätzung, die von professionellen Händlern und Market Maker der zukünftigen Volatilität einer Aktie gemacht wird. Es ist ein wichtiger Beitrag in Optionen Preismodelle. 8211 Das Black Scholes-Modell ist das populärste Preismodell, und während ich hier im Detail in die Berechnung eingegangen bin, basiert es auf bestimmten Eingaben, von denen Vega am meisten subjektiv ist (wie die zukünftige Volatilität nicht bekannt sein kann) und daher gibt Wir die größte Chance, unsere Sicht auf Vega im Vergleich zu anderen Händlern zu nutzen. 8211 Implizite Volatilität berücksichtigt alle Ereignisse, von denen bekannt ist, dass sie während der Laufzeit der Option auftreten, die einen erheblichen Einfluss auf den Kurs der zugrunde liegenden Aktie haben kann. Dies könnte beinhalten und Gewinn Ankündigung oder die Freisetzung von Drogen-Studie Ergebnisse für ein pharmazeutisches Unternehmen. Der aktuelle Stand des allgemeinen Marktes ist auch in Implied Vol. Wenn die Märkte ruhig sind, sind die Volatilitätsschätzungen niedrig, aber in Zeiten der Marktspannung werden die Volatilitätsschätzungen erhöht. Eine sehr einfache Möglichkeit, das allgemeine Marktniveau der Volatilität im Auge zu behalten, ist die Überwachung des VIX-Index. WIE ERHÖHEN SIE VORTEILE DURCH TRADING IMPLIZIERTE VOLATILITÄT Die Art, wie ich gerne durch den Handel implizite Volatilität profitiere, ist durch Iron Condors. Mit diesem Handel verkaufst du einen OTM Call und einen OTM Put und kaufst einen Call weiter auf die Oberseite und kaufst einen Put weiter auf den Nachteil. Lets Blick auf ein Beispiel und nehmen wir an, dass wir den folgenden Handel heute (Okt 14,2011): Verkaufen 10 Nov 110 SPY Puts 1.16 Buy 10 Nov 105 SPY Puts 0.71 Verkauf 10 Nov 125 SPY Anrufe 2.13 Kaufen 10 Nov 130 SPY Anrufe 0.56 Für diese Handel, würden wir einen Netto-Guthaben von 2.020 erhalten, und das wäre der Gewinn auf dem Handel, wenn SPY zwischen 110 und 125 bei Verfall endet. Wir würden auch von diesem Handel profitieren, wenn (alles andere gleich), implizite Volatilität fällt. Das erste Bild ist das Auszahlungsdiagramm für den oben erwähnten Handel, gleich nachdem er platziert wurde. Beachten Sie, wie wir kurz sind Vega von -80.53. Dies bedeutet, dass die Nettoposition von einem Rückgang der Implied Vol. Das zweite Bild zeigt, wie das Auszahlungsdiagramm aussehen würde, wenn es einen 50-Drop in Implied Vol. Das ist ein ziemlich extremes Beispiel, das ich kenne, aber es zeigt den Punkt. Der CBOE Marktvolatilitätsindex oder 8220Der VIX8221, wie er häufiger genannt wird, ist das beste Maß für die allgemeine Marktvolatilität. Es wird manchmal auch als der Fear-Index bezeichnet, da es ein Proxy für das Niveau der Angst auf dem Markt ist. Wenn die VIX hoch ist, gibt es eine Menge Angst auf dem Markt, wenn die VIX niedrig ist, kann es darauf hinweisen, dass die Marktteilnehmer selbstgefällig sind. Als Optionshändler können wir den VIX überwachen und ihn nutzen, um uns bei unseren Handelsentscheidungen zu helfen. Sehen Sie sich das Video unten an, um mehr zu erfahren. Es gibt eine Reihe von anderen Strategien können Sie beim Handel implizite Volatilität, aber Iron Kondore sind bei weitem meine Lieblings-Strategie, um die Vorteile der hohen Ebenen der impliziten vol. Die folgende Tabelle zeigt einige der wichtigsten Optionen Strategien und ihre Vega Exposition. Ich hoffe, Sie haben diese Informationen nützlich gefunden. Lassen Sie mich wissen, in den Kommentaren unten, was Sie Lieblings-Strategie für den Handel implizite Volatilität ist. Heres zu Ihrem Erfolg Das folgende Video erklärt einige der oben diskutierten Ideen im Detail. Sam Mujumdar sagt: Dieser Artikel war so gut. Es hat viele Fragen beantwortet, die ich hatte. Sehr klar und in einfachem Englisch erklärt. Danke für Ihre Hilfe. Ich war auf der Suche nach den Auswirkungen von Vol und wie man es zu meinem Vorteil nutzen Das hat mir wirklich geholfen Ich möchte noch eine Frage klären. Ich sehe, dass Netflix Feb 2013 Put Optionen haben Volatilität bei 72 oder so, während die Jan 75 Put Option vol ist um 56. Ich dachte an eine OTM Reverse Kalender zu verbreiten (ich hatte darüber gelesen) Aber meine Angst ist, dass der Jan Option würde am 18. ablaufen und die vol für Feb wäre immer noch gleich oder mehr. Ich kann nur Spreads in meinem Konto (IRA) handeln. Ich kann diese nackte Option nicht verlassen, bis die vol nach dem Einkommen am 25. Januar fällt. Vielleicht werde ich meine lange bis März8812 rollen müssen, aber wenn die vol drops8212-. Wenn ich eine 3Monat SampP ATM Call Option an der Spitze eines dieser Vol Spikes kaufe (ich verstehe Vix ist die implizite Vol auf SampP), wie weiß ich, was Vorrang auf meine PL hat. 1.) Ich werde auf meiner Position von einem Anstieg der zugrunde liegenden (SampP) profitieren, oder, 2.) Ich werde auf meiner Position von einem Crash in Volatilität Hi Tonio verlieren, es gibt viel Variable im Spiel, es hängt davon ab, wie weit Die Aktie bewegt sich und wie weit IV fällt. Grundsätzlich wäre für einen ATM-Long-Aufruf der Anstieg des Basiswerts den größten Einfluss. Denken Sie daran: IV ist der Preis für eine Option. Sie wollen kaufen und ruft, wenn IV unter normal ist, und verkaufen, wenn IV nach oben geht. Der Kauf eines Geldautomaten an der Spitze einer Volatilität Spike ist wie auf den Verkauf zu warten, bevor Sie ging shopping8230 In der Tat können Sie sogar HÖHER als 8220retail bezahlt haben, 8221 wenn die Prämie, die Sie bezahlt wurde über dem Black-Scholes 8220fair Wert .8221 Auf der anderen Seite sind Optionspreismodelle Faustregeln: Bestände gehen oft viel höher oder niedriger als das, was in der Vergangenheit passiert ist. Aber es ist ein guter Ort zum Starten. Wenn Sie einen Anruf nennen 8212 sagen AAPL C500 8212 und obwohl der Aktienkurs von ist unverändert der Marktpreis für die Option ging nur von 20 Dollar auf 30 Dollar, Sie gewann nur auf einem reinen IV-Spiel. Gut lesen Ich schätze die Gründlichkeit. Ich verstehe nicht, wie sich eine Veränderung der Volatilität auf die Rentabilität eines Kondors auswirkt, nachdem Sie den Handel platziert haben. Im obigen Beispiel ist die 2,020 Gutschrift, die Sie verdient haben, um den Deal zu initiieren, der Höchstbetrag, den Sie jemals sehen werden, und Sie können alles verlieren 8212 und vieles mehr 8212, wenn der Aktienkurs über oder unter den Shorts geht. In Ihrem Beispiel, weil Sie 10 Verträge mit einem 5-Bereich besitzen, haben Sie 5.000 Exposure: 1.000 Aktien mit jeweils 5 Dollar. Ihr Max-Out-of-Pocket-Verlust wäre 5.000 minus Ihre Eröffnungsgutschrift von 2.020 oder 2.980. Sie werden niemals jemals einen Gewinn haben, der höher ist als der 2020, den Sie mit oder einem Verlust schlimmer als der 2980 eröffnet haben, was so schlimm ist, wie es möglich ist. Allerdings ist die tatsächliche Lagerbewegung völlig nicht korreliert mit IV, die nur die Preishändler sind, die zu diesem Zeitpunkt rechtzeitig zahlen. Wenn Sie Ihre 2.020 Gutschrift und die IV steigt um einen Faktor von 5 Millionen, gibt es keine Auswirkungen auf Ihre Cash-Position. Es bedeutet nur, dass die Händler derzeit zahlen 5 Millionen Mal so viel für den gleichen Condor. Und selbst bei diesen hohen IV-Ebenen wird der Wert Ihrer offenen Position zwischen 2020 und 2980 8212 100 von der Bewegung der zugrunde liegenden Aktien angetrieben. Ihre Optionen erinnern sich an Verträge zu kaufen und zu verkaufen Lager zu bestimmten Preisen, und dies schützt Sie (auf einem Kondor oder anderen Kredit-Spread-Handel). Es hilft zu verstehen, dass Implizite Volatilität ist nicht eine Zahl, die Wall Streeters kommen auf mit einer Telefonkonferenz oder eine weiße Tafel. Die Optionspreise Formulare wie Black Scholes sind gebaut, um Ihnen zu sagen, was der beizulegende Zeitwert einer Option in der Zukunft ist, basierend auf Aktienkurs, Time-to-Expire, Dividenden, Zinsen und Historic (das heißt, 8220what ist tatsächlich über die Vergangenes Jahr8221) Volatilität. Es sagt Ihnen, dass der erwartete faire Preis sagen sollte 2. Aber wenn die Leute tatsächlich zahlen 3 für diese Option, lösen Sie die Gleichung rückwärts mit V als unbekannt: 8220Hey Historische Volatilität ist 20, aber diese Leute zahlen, als ob es war 308221 (daher 8220Implied8221 Volatilität) Wenn IV fällt, während Sie die 2.020 Gutschrift halten, gibt es Ihnen eine Gelegenheit, die Position früh zu schließen und halten Sie eine Menge der Gutschrift, aber es wird immer kleiner als die 2.020 Sie nahm in. That8217s weil Schließen Die Kreditposition wird immer eine Debit-Transaktion erfordern. Sie können Geld für das In und das Out verdienen. Mit einem Condor (oder Iron Condor, der sowohl Put - als auch Call-Spreads auf dem gleichen Bestand schreibt) ist dein bester Fall für die Aktie, um genau zu rechnen, sobald du dein Deal schreibst, und du nimm dein Sweetie für ein 2.020-Dinner. Mein Verständnis ist, dass, wenn die Volatilität sinkt, dann der Wert des Eisernen Kondors schneller abfällt, als es sonst wäre, so dass Sie es zurückkaufen und Ihren Gewinn sperren können. Der Kauf von 50 Max-Gewinn wurde gezeigt, um Ihre Wahrscheinlichkeit des Erfolgs drastisch zu verbessern. Es gibt einige Experten gelehrt Händler zu ignorieren, die griechische Option wie IV und HV. Nur ein Grund dafür ist die Preisgestaltung der Option ausschließlich auf der Aktienkursbewegung oder der zugrunde liegenden Sicherheit. Wenn der Optionspreis lausig oder schlecht ist, können wir unsere Aktienoption immer ausüben und in Aktien umwandeln, die wir im selben Tag besessen oder verkaufen können. Was ist Ihre Kommentare oder Ansichten über die Ausübung Ihrer Option durch die Ignorierung der Option griechisch Nur mit Ausnahme für illiquide Lager, wo Händler können schwer zu finden Käufer, um ihre Aktien oder Optionen zu verkaufen. Ich habe auch festgestellt und beobachtet, dass wir nicht notwendig sind, um die VIX zu handeln Option zu überprüfen und darüber hinaus einige Aktien haben ihre eigenen Charaktere und jede Aktie Option mit verschiedenen Option Kette mit verschiedenen IV. Wie Sie wissen, Optionen Handel haben 7 oder 8 Börsen in den USA und sie sind anders als die Börsen. Sie sind viele verschiedene Marktteilnehmer in den Options - und Aktienmärkten mit unterschiedlichen Zielen und ihren Strategien. Ich ziehe es vor, zu überprüfen und gern auf Aktien-Option mit hohem Volumen offenen Zinsen plus Option Volumen aber die Aktien höher HV als Option IV. Ich habe auch beobachtet, dass eine Menge von Blue-Chip, Small Cap, Mid-Cap-Aktien im Besitz von großen Institutionen können ihre prozentuale Holding und Kontrolle der Aktienkurs Bewegung zu drehen. Wenn die Institutionen oder Dark Pools (da sie eine alternative Handelsplattform haben, ohne zu den normalen Aktienbörsen zu gehen) ein Aktienbesitz von etwa 90 bis 99,5 hält, dann bewegt sich der Aktienkurs nicht viel wie MNST, TRIP, AES, THC, DNR, Z , VRTX, GM, ITC, COG, RESI, EXAS, MU, MON, BIIB, etc. Allerdings kann HFT-Aktivität auch dazu führen, dass die drastische Preisbewegung nach oben oder unten, wenn die HFT herausgefunden, dass die Institutionen leise durch oder verkaufen ihre Aktien Vor allem die erste Stunde des Handels. Beispiel: Für Kredit-Spread wollen wir niedrige IV und HV und langsame Aktienkurs Bewegung. Wenn wir eine Option wünschen, wünschen wir eine niedrige IV in der Hoffnung, die Option mit hoher IV später zu verkaufen, besonders vor dem Erwerb der Ankündigung. Oder vielleicht verwenden wir Debit-Spread, wenn wir lange oder kurz eine Option anstelle von direktionalen Handel in einer volatilen Umgebung zu verbreiten sind. Daher ist es sehr schwierig, Dinge wie Aktien - oder Optionshandel zu verallgemeinern, wenn sie zum Handel Optionsstrategie kommen oder nur Aktien kaufen, weil einige Aktien unterschiedliche Beta-Werte in ihren eigenen Reaktionen auf die breiteren Marktindizes und Reaktionen auf die Nachrichten oder irgendwelche Überraschungsereignisse haben . Nach Lawrence 8212 Sie sagen: 8220Beispiel: Für Kredit-Spread wollen wir niedrige IV und HV und langsame Aktienkurs Bewegung.8221 Ich dachte, dass im Allgemeinen, man will eine höhere IV-Umgebung bei der Bereitstellung von Credit Spread Trades8230und die umgekehrt für Debit Spreads8230 Vielleicht I8217m verwirrt8230

Finanzierung Hochschul Optionen Kompromisse Und Dilemmata

1. Bemerkungen des Präsidenten zur Ansprache der Zukunft der Berechtigungskonferenz, Bryn Mawr, Penn. - 13. Dezember 1993 Sehr geehrte Damen und Herren, es ist mir ein Vergnügen, hier zu sein. Ich freue mich auf diese Konferenz mit großer Vorfreude für einige Zeit. Ich möchte der Kongressabgeordneten Margolies-Mezvinsky dafür danken, dass ich das zusammengekommen bin und mich hier einladen möchte. Ich danke dem Präsidenten McPherson und dieser wundervollen Institution für die Gastgeberin. (Beifall) Ich freue mich, dass Sprecher Foley und Kongressabgeordneter Penny hier für den Kongress sind und Senator Kerrey und Senator Walker, Ihr eigener Senator, sind hier, um über diese wichtigen Themen zu sprechen. Ich möchte auch allen Leuten danken, die dazu beigetragen haben, diese Konferenz zusammenzubringen und allen Leuten in unserer Verwaltung, die eingeladen wurden, und sind hier teilzunehmen. Wir haben die Stadt in Washington heute ziemlich verschlossen und es ist nur eine Art von hier nach Pennsylvania gekommen, um über Berechtigungen zu sprechen. (Lachen und Applaus) Das ist ein sehr ernstes Thema, das der nachdenklichen Aufmerksamkeit würdig ist, die es heute geben wird. Ich hoffe, es wird eine große nationale Diskussion über die Themen geben, die wir heute besprechen, und ich hoffe, dass dies der Beginn einer Debatte sein wird, die für die nächsten Jahre durchlaufen wird. Ich lief für den Präsidenten, weil ich dachte, dass unsere Nation wirtschaftlich in die falsche Richtung gehe, und dass unsere Gesellschaft auseinander kam, wenn sie zusammen kommen sollte. Ich wollte hart arbeiten, um Arbeitsplätze zu schaffen und die Einkommen für die große Masse der Amerikaner zu erhöhen und zu versuchen, unser Land wieder zusammenzubringen, indem wir die Bande der Familie und der Höflichkeit und der Gemeinschaft wiederherstellen, ohne die wir nicht hoffen können, den amerikanischen Traum an die Studenten, die hier bei Bryn Mawr sind oder die Studenten, die zurückkommen werden. Um dies zu tun, müssen wir alle - ohne Rücksicht auf Partei oder Philosophie - zumindest damit einverstanden sein, den wirklichen Problemen dieses Landes zu begegnen: 20 Jahre stagnierende Löhne 30 Jahre Familienrückgang, konzentriert stark unter den armen 12 Jahren, in denen unsere Die Schuld hat sich vervierfacht, aber die Investition in unsere Zukunft hat uns mit Zwillingsdefiziten, einem massiven Haushaltsdefizit und einem weniger publizierten Investitionsdefizit zurückgelassen - die Kluft zwischen dem, was wir investieren müssen, um zu konkurrieren und zu gewinnen, und was wir in Bezug auf erhalten Neue Fähigkeiten und neue Möglichkeiten. Diese Dinge sind verknüpft. Die Schaffung von Arbeitsplätzen im Wachstum erfordert, dass wir sowohl das Haushaltsdefizit als auch das Investitionsdefizit senken. Hohe Staatsdefizite halten Investitionen - Interessensraten hoch, sie verdrängen private Forderungen nach Kapital, sie nehmen mehr Regierungsgeld, um die Schulden zu bedienen. All dies neigt dazu, Investitionen, Produktivität, Arbeitsplätze und letztlich, Lebensstandard zu reduzieren. Das Defizit hat sich in den letzten 12 Jahren so dramatisch erhöht, weil es auf der Ausgabenseite und auf der Einnahmenseite passiert ist. Die Verteidigung hat sich bis 1987 dramatisch erhöht, aber seither ist es scharf herabgestiegen. Allerdings ist der Ort der Verteidigung, wie auch später sehen, mehr als überholt durch eine Explosion im Gesundheitswesen Kosten steigen für die Regierung bei etwa dreimal die Rate der Inflation. Zinsen auf die Schulden sind offensichtlich mehr erhöht, wenn die Zinsen waren hoch als jetzt, aber immer, wenn die angesammelten Staatsverschuldung steigt. Und die größere Zahl der armen Menschen in unserem Land hat unweigerlich zu größeren Ausgaben für Programme geführt, die auf die Armen ausgerichtet sind. Auf der Einnahmenseite wurde der Steuersenkungsschnitt von 1981 auf etwa doppelt so hoch wie der Prozentsatz unseres Einkommens, der ursprünglich von Präsident Reagan vorgeschlagen wurde, da der Präsident und der Kongress einen Bieterkrieg eingegangen sind. Und dann im Jahr 1986 verabschiedeten wir Indizierung, ein Prinzip, das eindeutig fair ist, aber reduziert die Wachstumsrate der Bundeseinnahmen durch die Anpassung der Menschen Steuern nach unten als Inflation schob ihre Einkommen nach oben. Und schließlich hat eine verlängerte Periode des sehr langsamen Wachstums die Staatseinnahmen deutlich reduziert und das Defizit ergänzt. Wenn man sich diese Tabelle anschaut, werden Sie sehen, dass wir ein Defizit geerbt haben, das eigentlich geplant war - als ich das Amt nahm, für das Geschäftsjahr, das Ende September endete - über 300 Milliarden. Es war offensichtlich, dass - und es wurde nach oben geleitet. Das war die Linie - die blaue Linie hier ist, was ich fand, als ich Präsident wurde. Es war klar, dass etwas getan werden musste. Ich habe den Kongress gebeten, das größte Defizitreduktionspaket in der Geschichte zu verbringen. Es hatte 255 Milliarden in echten durchsetzbaren Ausgabenkürzungen von Hunderten von Programmen. Jetzt können wir klar machen, was du meinst. Wenn Sie hören, das Wort Ausgaben Reduzierungen oder Schnitte in Washington Begriffe, kann es bedeuten, zwei Dinge. Einer ist eine Verringerung der Zunahme der Staatsausgaben aus dem vorangegangenen Fünfjahresbudget, was immer noch eine Zunahme der Ausgaben ist, aber nicht so viel wie es wäre, wenn die neue Verringerung nicht stattgefunden hätte. Das zweite, was es bedeuten könnte ist, was du meinst, wenn du sagst, schneiden, was du verbringst weniger als du, bevor du das Wort benutzt hast. (Lachen) Und es ist wichtig zu wissen, wem du sprichst. Allerdings sind beide gut in Bezug auf die Verringerung der Defizit über einen Zeitraum von fünf Jahren. Wir haben nicht nur die Rate der Zunahme reduziert, sondern tatsächlich Hunderte von Kürzungen in diesem Jahr angenommen. Das Haushaltsjahr, das am 1. Oktober begann, hat weniger Ausgaben als im Vorjahr in 342 getrennten Konten des Bundeshaushaltes. Bereinigt um die Inflation bedeutet dies eine diskretionäre Ausgabenkürzung von 12 Prozent in den nächsten fünf Jahren, mehr als bei den beiden vorangegangenen Verwaltungen. Wenn dies nach dem Wall Street Journal, dann bis 1998, diskretionäre Ausgaben - das ist die Nicht-Berechtigung Ausgaben und Diskontierung Zinsen auf die Schulden, die Dinge, die wir Entscheidungen über jedes Jahr - wird weniger als 7 Prozent Von unserem jährlichen Einkommen etwa die Hälfte der Ebene war es in den 1960er Jahren. Zusätzlich zu den diskretionären Ausgabenkürzungen reduzierte unser Budget die Ansprüche, was die Verringerung der Agrarsubventionen veranlasste und die Einkommensempfänger der Sozialversicherung dazu veranlasste, mehr Steuern auf ihr Einkommen zu zahlen, die Erstattungen an Medicare-Anbieter zu senken und andere Anpassungen in Medicaid und in Veteranen vorzunehmen Vorteile. Jetzt sind alle diese Schnitte schon auf den Büchern. Wir schneiden auch - mit Hilfe der Vice Presidents National Performance Review - über 250.000 Positionen aus den Bundesschulden, vor allem durch Abrieb und Vorruhestand in den nächsten fünf Jahren. Wurden endlich versucht, das System in einer Weise zu reformieren, die es uns ermöglicht, Milliarden von Dollars in diskretionären Ausgaben durch Reform des Personalbudgets zu sparen und vor allem Beschaffungssysteme - wenn der Kongress alle drei dieser systematischen Reformen genehmigen wird. Wir haben auch einige Steuern verabschiedet - eine bescheidene 4,3 Cent-a-Gallone-Gas-Steuer, die bislang kaum gefühlt wurde, weil wir den niedrigsten Preis in Öl in vielen, vielen Jahren haben, so dass der Benzinpreis seit dem Gas abgereist ist Steuer wurde angelegt Wir haben auch die Top-1,2 Prozent der Amerikaner gefragt, höhere Einkommensteuern zu zahlen, weil ihre Einkommen am meisten anstiegen und ihre Steuern in den letzten 12 Jahren am meisten gefallen sind. Die Körperschaftssteuer auf Konzerne mit Einkommen über 10 Millionen pro Jahr wurde angehoben. Mittelklasse-Familien zahlen etwas weniger Steuern, weil wieder von den Anpassungen für die Inflation. Und Steuern wurden für 15 Millionen Familien geschnitten, die für sehr bescheidene Löhne gearbeitet haben, als ein dramatischer Anreiz, sie dazu zu bringen, auch weiterhin die Arbeit über das Wohlergehen zu wählen. Als Kongressabgeordnete Mezvinsky und ihre Kollegen für diesen Wirtschaftsplan stimmten, stimmten sie für Ihre wirtschaftliche Zukunft, für niedrigere Defizite, höheres Wachstum und bessere Arbeitsplätze. Sie haben gestimmt, um die Ausgaben zu senken. Sie haben nicht gestimmt, um die Steuern auf den Mittelstand zu erheben. Und ehrlich gesagt, die Arten von Radio-Anzeigen, die gewesen sind - das ist die einzige politische Sache, die ich heute sagen werde (Lachen) - aber die Art von Radio-Anzeigen, die hier in diesem Bezirk geführt wurden, dienen nicht der Öffentlichkeit Interesse, weil sie nicht die Wahrheit sagen. (Beifall) Wenn jemand sagen will, dass wir keine Einkommenssteuern an die Spitze von 1,2 Prozent des amerikanischen Volkes haben sollten, lassen Sie sie das im Radio werben. Wenn jemand sagen will, dass die Körperschaftsteuer über 10 Millionen pro Jahr im Einkommen nicht aufgeworfen werden sollte, lassen Sie sie das im Radio werben. Wenn jemand sagen will, dass die Gassteuer unfair war, lassen Sie sie das im Radio anbieten. Aber versuch nicht zu sagen, das amerikanische Volk gab es keine Budgetkürzungen und sie zahlten alle Steuererhöhungen, denn das ist einfach nicht wahr. Und wir haben eine Menge Arbeit in diesem Land zu tun und viele ehrliche Meinungsverschiedenheiten zu haben, müssen wir nicht unsere Energie auf andere Dinge aufwenden. Und wenn Sie nicht glauben, dass die Vorderseite des Wall Street Journal heute Morgen lesen. Das ist kaum das Hausorgan meiner Verwaltung. (Lachen) Lesen Sie die Vorderseite des Wall Street Journal heute morgen über die beispiellosen Schnitte, die dieses Budget gemacht hat. Es macht niemanden irgendwie gut, weiterhin Dinge über diesen Wirtschaftsplan zu behaupten, die nicht wahr sind. Die Märkte hatten es herausgefunden. Das ist, warum die Zinssätze fallen und die Investition ist. Thats, warum Inflation ist unten und mehr Arbeitsplätze in diese Wirtschaft in den letzten 10 Monaten als in den letzten vier Jahren gekommen sind. Die Märkte haben es herausgefunden. Alle Rauch und Spiegel und Radio-Anzeigen in der Welt konnte nicht verwirren die Menschen, die Investitionsentscheidungen zu treffen und lesen Sie die Kleingedruckten. (Beifall) Das ist die gute Nachricht. Jetzt reden wir über die anhaltenden Probleme, die wirklichen Probleme. Der Wirtschaftsplan, den der Kongress verabschiedet hat, repräsentiert die rote Linie. Das ist, wie viel weniger das Defizit sein wird. Und die Summe zwischen diesen beiden Zeilen ist, wie viel weniger unsere Gesamtschuld wird bis 1998 sein. Die gelbe Linie stellt dar, wo wir gehen können, durch konservative Schätzungen, wenn der Gesundheitsplan angenommen wird. Sie haben noch ein Betriebsdefizit, und die Staatsverschuldung wird sich noch um diesen Betrag erhöhen, aber nicht um diesen Betrag. So sind wir mit dem Wirtschaftsplan deutlich besser. Wir müssen übrigens weitere Schnitte machen, um diese rote Linie zu treffen. Waren nicht damit fertig. Wir werden es noch besser machen, wenn wir etwas über die Gesundheitsversorgung tun - ich sage mehr darüber in einer Minute - aber es gibt noch mehr zu tun. Die Schulden dieses Landes sind jetzt über 4 Milliarden. Das bedeutet, dass unsere kumulierten Schulden mehr als zwei Drittel unseres Jahreseinkommens ist. Es ist wichtig, dass die Schulden, als Prozentsatz unseres Jahreseinkommens, nach unten gehen. Es ist viel zu hoch, viel höher als es außerhalb der Kriegszeit war. Es ist wichtig, dass das jährliche Defizit in Prozent unseres Einkommens sinken wird. Es wird unter diesem Plan untergehen, aber wir können mehr tun, um zu versuchen, die Gesamtschuld und das Defizit als Prozentsatz unseres Einkommens zu reduzieren. Beide sind zu hoch. Nun schauen wir uns das nächste Diagramm an. Ich denke, du hast es alle im Publikum. Diese Tabelle zeigt nur, wo Sie Geld gehen. Wenn Sie Bundessteuern bezahlen oder wenn die Regierung - in Ihrem Namen - Geld in Schulden leiht, vergeben wir 47,4 Prozent an Anreden - das ist es, was heute hier zu sprechen ist - etwa 21 Prozent bei der Verteidigung Unten, wie youll sehen in einer Minute etwa 18 Prozent auf Nicht-Verteidigung, diskretionäre, die konstant gehalten wird und etwa 14 Prozent in Zinsen auf die Staatsverschuldung. Lass uns das nächste Diagramm ansehen. Diese Tabelle gibt Ihnen eine Vorstellung davon, welche Ausgabenkategorien in welche Richtung geleitet werden. Durchschnittliches jährliches reales Wachstum - jetzt möchte ich dir sagen, was das bedeutet. Ich habe in Washington sehr lange gelebt, also verwende ich immer noch gewöhnliche Bedeutungen für Worte. (Lachen) Wenn du echt auf einem Regierungsdiagramm sehe, bedeutet das für die Inflation angepasst. (Lachen). Das findet niemals in einem Wörterbuch, aber das ist es, was es bedeutet. Mit anderen Worten, das sind die Zahlen, die um die Inflation bei einem prognostizierten Inflationswachstum von mehr oder weniger dreieinhalb Prozent pro Jahr angepasst wurden. Wenn du siehst, wirst du verteidigen. Ehrlich gesagt, reduzierten sie so sehr, wie ich glaube, dass wir verantwortungsvoll können und in der Tat mehr als wir verantwortungsvoll können, wenn der Kongress die Beschaffungsreform weitergeben wird, so dass die Verteidigungsabteilung kaufen kann, was sie für unsere nationale Verteidigung zu effizienteren Preisen benötigt. Aber ich hoffe das wird passieren Andere Berechtigungen - kommen gut dazu in einer Minute, was diese anderen Ansprüche sind - sie werden auch im Vergleich zur Inflation hinuntergehen. Das ist im Grunde die Berechtigungen für die Armen und die Veteranen Vorteile und Landwirtschaft Vorteile. Nicht-Verteidigung diskretionär ist ein wenig unter Null, wie Sie sehen. Das ist alles für die Ausbildung, für die Ausbildung, für die Technik, für die Verteidigung Umwandlung, für Sie-Name-es, alles für die Infrastruktur, für Straßen alles, was wir Geld ausgeben, dass wir eine Option haben, nicht Geld dafür ausgeben - gut kommen Zurück zu diesem - geht im Verhältnis zur Inflation hinunter. Wenn es hier keine Inflationszahlen gäbe, wäre es eigentlich nur ein kleines bisschen über der Linie, aber es ist funktionell null. Für alle praktischen Zwecke, wenn ich die Geldmenge erhöhen will, zum Beispiel, verbringen wir für Head Start in Pennsylvania um eine Million Dollar, müssen wir etwas anderes um eine Million Dollar schneiden. Wir erhöhen nicht den Gesamtbetrag dieser Art von Ermessensausgaben. Die Nettozinsen werden steigen, und wieder wird dies für die Inflation angepasst, so dass es weiter steigt, weil die Höhe der Schulden weiter steigt. Die soziale Sicherheit wird wieder steigen, um die Inflation angepasst zu werden. Hier geht es um - das ist die Bevölkerung, die in der Sozialversicherung effektiv zunimmt. Es gibt arent neue Vorteile hinzugefügt werden, so wird es ein paar Prozent Wachstum in der Bevölkerung zwischen jetzt und 1998. So wird es steigen durch die Menge der zunehmenden Zahl von Menschen auf soziale Sicherheit. Und schau was passiert mit gesundheitlichen berechtigung Es geht mehr als doppelt so viel wie soziale Sicherheit, mehr als dreimal so viel wie Nettozins, und alles andere geht hinunter. Nun, das ist was passiert Lass uns auf die nächste Tabelle gehen. Wie die Grafik hier zeigt, sind die neuen Einnahmen in diesem Jahr. Nun, die neuen Einnahmen beinhalten die Steuererhöhungen, von denen wir gerade gesprochen haben. Sie sind etwa 40 Prozent dieses Umsatzwachstums. Der Rest seiner nur gewöhnlichen Erhöhungen der Steuereinnahmen an die Regierung kommt von steigender Beschäftigung oder steigende Einkommen. So ist es - jedes Jahr - und Inflation - so jedes Jahr bekommen wir ein Umsatzwachstum. Diese Umsatz-Chart ist etwa 60 Prozent gewöhnlichen Umsatzwachstum, 40 Prozent neue Steuern. Wie Sie sehen können, geht das Ganze auf Defizitabbau, Zinserhöhungen und Berechtigung steigt. Das ist, wo das Geld ging. Achtzig Prozent der neuen Einnahmen, einschließlich Steuern und Umsatzwachstum ging an Defizitabbau und Zinserhöhungen um 20 Prozent von ihnen ging auf Berechtigungssteigerungen. Wie Sie sehen können, lässt das nicht viel Platz für jede Art von zukünftigen Investitionen. Dies ist etwas, das vermutlich sowohl Senator Kerrey als auch Kongressabgeordneter Penny heute sprechen wird. Aber es ist, wie ich glaube, ein fairer Konsens im Kongress unter Republikanern und Demokraten, unter Liberalen und Konservativen, dass es einige Dinge gibt, auf denen wir nicht genug Geld ausgeben, um uns ins 21. Jahrhundert zu bringen. Wir haben uns nach dem letzten Mal in eine Kiste gestellt, um aus diesem Defizitgeschäft zu arbeiten, damit wir nicht die Flexibilität haben, diese wachstumsorientierten Investitionen in den öffentlichen Sektor zu machen. Das ist ein dilemma So haben wir zwei anhaltende Dilemmata, wenn man - ein, wir haben immer noch ein Defizit und ein Schuldenproblem zwei, gibt es Dinge, die buchstäblich über 80 Prozent des Kongresses - beide Parteien - zustimmen würden, dass wir mehr dazu investieren sollten Wir können einfach nicht mehr investieren wegen des Problems, das wir mit dem Budget haben. Könnten wir jetzt in die nächste Grafik gehen, gehen wir in die nächste Tabelle. Nun, das gibt dir ein Bild von Berechtigungsausgaben. Und ich weiß, dass Alice Rivlin schon einmal etwas darüber gesprochen hat - und sie weiß viel mehr darüber, als ich es je will - aber ich denke, es lohnt sich, wieder zurückzukehren, denn das ist eine Berechtigungskonferenz. Also lohnt es sich zu konzentrieren, was ein Anspruch ist. Und wenn du hörst, dass die Leute diesen Begriff benutzen, was sie sind. Also schau dir das an Diese Berechtigungsprogramme sind Programme, die Vorteile für Personen mit bestimmten Merkmalen bieten. Leute, die den Test der Förderfähigkeit für das Programm treffen, erhalten es, ungeachtet einiger vorher geplanter Betrag für dieses Programm. Das ist, warum theyre genannt Ansprüche. Zum Beispiel hat jemand, der in den Social Security Trust Fund bezahlt hat, zusammen mit seinem oder ihrem Arbeitgeber, der 65 ist, wird zollrechtlich zur Sozialversicherung. Sie gehen einfach in die Sozialversicherungsanstalt mit den Dokumenten, die beweisen, dass Sie berechtigt sind und youre, die den Scheck erhalten, egal wieviele andere Leute für Sozialversicherung qualifizieren. Da seine schwer zu wissen, im Voraus genau, wie viele Menschen für die Vorteile gelten, Kongress nicht beiseite legen eine bestimmte Menge an Geld, wie es für die diskretionären Ausgaben Programme. Stattdessen richtet es sich einfach an die Schatzkammer, um Zahlungen an alle zu leisten, die sich bewerben und für die Leistungen nach den Gesetzen qualifizieren. Es gibt zwei Hauptarten von Berechtigungen. Und du kannst nur sehen, wenn du hier oben schaust, was sie sind. Sie sind die dazugehörigen Ansprüche, die Sie haben, etwas, weil Sie es bezahlt haben. Seine vertragsorientierte Die soziale Sicherheit ist ein Beitrag. Medicare ist ein Beitragsberechtigung. Bundesrente ist ein Beitragsberechtigung. Du hast die Arbeit gemacht, du legst das Geld beiseite, du bringst es zurück Dann gibt es die Berechtigungen für die Bedürftigen oder Ansprüche, die in einer speziellen Kategorie sind, weil man nicht voraussagen kann, wie viel wird jedes Jahr gebraucht werden. Die Ansprüche für die Bedürftigen würden AFDC, ergänzende Sicherheit Einkommen, die Medicaid-Programm, medizinische Versorgung für die Armen. Die Landwirtschaft ist in einer eigenen Kategorie. Es wurde als Berechtigung behandelt, zum Teil weil es in der Weltwirtschaft so verfangen ist, dass es unmöglich ist, von Jahr zu Jahr vorauszusagen, wie viel der Unterstützungssubventionen benötigt werden. Nun werden die beitragsorientierten Ruhestand manchmal auch als bürgerliche Ansprüche bezeichnet, weil sie allen zugute kommen. Der Mittelstand, oder Herr Peterson wird Ihnen in ein paar Minuten erzählen, die Oberbürgermeister oder die Reichen - wenn Sie bezahlen, erhalten Sie es zurück und die Kosten des Lebens erhöhen. Nun, die arme Völker Berechtigung, sagte ich, sind vor allem in der Kategorie von wie AFDC und Lebensmittel Briefmarken und Medicaid. Aber lassen Sie mich Ihnen etwas über diese Berechtigungen zeigen, weil die meisten Leute, denke ich, das nicht wissen. Die soziale Sicherheit beträgt 43 Prozent. Medicare ist 18 Prozent, Medicaid ist 11 Prozent, Bundes-Ruhestand ist 8 Prozent, Arbeitslosigkeit ist 5 Prozent - offensichtlich geht es nach oben oder unten, je nachdem, was die Arbeitslosenquote ist und wie lange Menschen sind arbeitslos. Lebensmittelstempel sind 4 Prozent, andere sind 11 Prozent. In der anderen haben Sie Landwirtschaft, Veteranen, ergänzende Sicherheit Einkommen - das ist für niedrigere Einkommen ältere Menschen - und AFDC. Das Wohlfahrtsprogramm dieser 11 Prozent beträgt 2 Prozent. Der durchschnittliche monatliche Wohlfahrtsgeld in Amerika ist heute noch niedriger, für die Inflation angepasst, als vor 20 Jahren. Das Programm ist teurer, weil es mehr arme Leute gibt. Aber ich finde es sehr interessant, darauf hinzuweisen. Die meisten Menschen sind überrascht zu wissen, dass das Wohlfahrtshaushalt etwa zwei Prozent der Ansprüche oder etwa ein Prozent des gesamten Bundeshaushaltes beträgt. Nun, die Berechtigungsprogramme für die Bedürftigen, wie Sie sehen können, machen etwa 12 Prozent des gesamten Budgets aus oder etwa ein Viertel der Berechtigungsausgaben. Die größten Ansprüche sind Sozialversicherung und Medicare. Sie sind etwa 61 Prozent der Gesamtsumme. Wenn Sie föderalen zivilen Ruhestand und militärischen Ruhestand hinzufügen, haben Sie über zwei Drittel der Ruhestand dort - der Ansprüche dort. Nun, ich denke, es ist wichtig, darauf hinzuweisen, nur im Vorbeigehen, dass hinter jedem dieser Berechtigungen theres eine Person. Darum ist es so umstritten, als sie im Kongress diskutierten. Es sind nicht nur organisierte Interessengruppen, es gibt Leute, die glauben, dass sie buchstäblich berechtigt sind, etwas zurückzuholen, das sie bezahlt haben. Es sind die bürgerlichen Ansprüche, die uns vereint haben und uns zusammengebracht haben, die auch die stärksten Wahlkreise haben und die größten Kontroversen provozieren, wenn wir uns damit beschäftigen. Und diese Programme sind auch in menschlicher Hinsicht sehr wichtig. Und ich könnte auch nur erwähnen, dass - wenn man Medicare ansieht, vor Medicare, gab es eine gute Chance, dass Amerikaner, wenn sie älter wurden, wohltätige Pflege brauchen würde, würde einfach ohne Gesundheitsversorgung tun. Heute sind fast 34 Millionen Menschen zu einem Arzt zu sehen, oder medizinische Versorgung wegen der Medicare-Programm zu bekommen. Die soziale Sicherheit hat sich wörtlich verändert, was es bedeutet, alt zu sein. Anfang 1985 war zum ersten Mal in unserer Geschichte der Prozentsatz unserer älteren Menschen, die über der Armutsgrenze waren, besser als der Prozentsatz der Gesamtbevölkerung. Mit anderen Worten, die Armutsquote für ältere Menschen war niedriger als die Armutsquote der Gesamtbevölkerung. Es ist sehr schwer zu sagen, dass das eine schlechte Sache war. Das war - ich streite - eine gute Sache. Wir sollten dieses ganze Programm nicht sehen, mit anderen Worten, als Wohlfahrt. Es ist kein Wohlfahrtsprogramm. Heißt das, dass es keine Änderungen in ihm geben sollte. Es bedeutet nur, dass wir sehr empfindlich sein sollten über die Tatsache, dass dies etwas ist, was gearbeitet hat. Wegen dieser Programme sind wir ein gesünderes Volk. Wir sind ein einheitliches Land. Wir behandeln ältere Menschen mit größerer Würde, indem wir ihnen erlaubten, einen anständigen Ruhestand zu erlangen und einen bürgerlichen Lebensstandard zu behalten, unabhängig von dem, was ihre Kinder tun müssen, und um sie auf lange Sicht unabhängiger zu machen. Dies ist ein riesiges Geschäft in einem Land, wo die am schnellsten wachsende Gruppe von Menschen, in Prozent, sind Menschen über 80 Jahre alt. (Beifall) Das ist eine große Sache. (Applaus) Nun empfahl ich, mehr von den Einkommen der Top 10 oder 12 Prozent der Sozialversicherungsempfänger, irgendwo in diesem Bereich, zur Besteuerung, und Kongress verabschiedet eine modifizierte Version dieses Plans. Das war eine Berechtigung. Ich dachte, es wäre eine angemessene Sache zu tun, weil eine Menge Leute in den oberen Einkommen Ebenen, per Definition, haben auch andere Einnahmequellen, und werden wieder, was sie bezahlt in Social Security plus vernünftiges Interesse Wachstum in einem relativ kurzen Zeitraum Der Zeit, also dachte ich, dass es fair war, das zu tun. Wir empfehlen, dass die höheren Einkommensleute mehr für Medicare-Vorteile zahlen. Ich denke, das ist vernünftig zu tun, weil die Medicare Zahlung selbst nur einen kleinen Prozentsatz der Gesamtkosten von Medicare. Wo ich denke, wir sollten die Linie zeichnen, ist jedoch zu versuchen, der älteren Mittelschicht passiert zu haben, was mit dem nicht älteren Mittelstand passiert. Auf der ganzen Welt, heute und in allen fortgeschrittenen Ländern der Welt, ist die Mittelklasse unter Angriff. Die Einkommensungleichheit hat sich in den letzten 12 Jahren erhöht. Es wird sehr schwierig für die Arbeitnehmer, eine bürgerliche Lebensweise zu erhalten. Wir müssen alle ändern. Weve hat unsere Regierungspolitik zu ändern. Die Menschen müssen viel höhere Fähigkeiten erwerben und sich für ein Leben lang engagieren. Es gibt viele Dinge, die man machen muss. Aber der allgemeine politische Punkt, denke ich, ist gültig. Wir wollen nicht mit einem Problem umgehen, wie das Defizit, das verschärft wird, weil die bürgerlichen Einkommen der Völker stagnierten, indem sie für die bürgerlichen Älteren die gleiche Einkommensstagnation hatten. Also ich denke, es gibt Dinge, die wir tun können, um damit umzugehen. Sie werden später besprochen. Wir haben einige Dinge getan, um mit den Ansprüchen im letzten Budget umzugehen. Aber lassen Sie uns nicht sagen, dass es eine schlechte Sache war, die Armut bei älteren Menschen drastisch zu reduzieren, oder dass es für unsere Konsumentenwirtschaft eine schlechte Sache ist, eine große Anzahl von bürgerlichen Menschen in ihren Ruhestandsjahren zu pflegen. Das bedeutet, dass wir ehrliche, spezifische und klare Diskussionen darüber haben müssen, so unbelastet wie möglich durch diese Art von rhetorischen Bomben, die in der Luft von links und rechts fliegen. Sprechen Sie einfach durch und hören Sie einander und fragen uns, was wird die praktische Wirkung der vorgeschlagenen Änderung A, B oder C sein und werden wir alle sicherer sein, werden unsere Kinder und unsere Enkelkinder besser dran, dies wird helfen, zu stabilisieren und zu erhöhen Die Mittelklasse Ballast unserer Gesellschaft Und ich denke, wir sind im Rande, vielleicht, diese Diskussion in keinem kleinen Maß wegen dieser Art von Konferenz zu haben. Nun, lass uns los und lasst uns anschauen, was ich denke, das eigentliche Problem in den Ansprüchen ist, ist eindeutig das Gefahrensignal für den langen Lauf. Lass uns das nächste Diagramm ansehen. Wie Sie sehen können, vor 20 Jahren Gesundheit Ausgaben und Ansprüche - Medicare und Medicaid - 13 Prozent der gesamten 1983, 19 Prozent der gesamten 1993, 30 Prozent der gesamten 2003, 43 Prozent der insgesamt. Denken Sie daran - und dies ist mit der Zahl der älteren Menschen steigen wie verrückt, so dass die Bevölkerung der Menschen Zeichnung Soziale Sicherheit geht nach oben, rechts Und immer noch, schauen Sie sich das. Also, klar, das ist der Teil der Staatsausgaben, die außer Kontrolle ist. Das ist der Teil der Berechtigungsausgaben, der außer Kontrolle ist. Jetzt lass mich es nur durch ein paar weitere Charts illustrieren, echt schnell. Lass uns auf die nächste gehen. Non-Defense-Ermessensausgaben gehen in Prozent unseres Einkommens ab. Sozialversicherungsausgaben als Prozentsatz unseres Einkommens sind solide, stabil hier. Es könnte im nächsten Jahrhundert aufgehen, wird vorausgesetzt, wenn alle Babyboomer hineingehen. Ich hörte, wie Frau Rivlin das als die Präsidentengeneration bezeichnete. (Lachen) Ich bin der älteste der Babyboomer. Aber trotzdem sehen Sie, es ist ein stabiler Prozentsatz des Bruttosozialprodukts. Und der Kongress, im Jahr 1983, nachdem die bipartisanische Kommission für soziale Sicherheit Empfehlungen für die Festsetzung der Sozialversicherung gemacht hatte, versuchte, diese Zahl stabil zu halten, indem sie allmählich den Ruhestand von 65 yo 67, um etwa einen Monat im Jahr über einen längeren Zeitraum begann Nur im nächsten Jahrhundert. Jetzt geht es weiter zum letzten. Diese Grafik zeigt Ihnen, dass im Gegensatz zu Social Security und diskretionäre Ausgaben, medizinische Ausgaben geht wie eine Rakete. Medicare und Medicaid haben sich seit 1982 verdreifacht. Medicare und Medicaid wird bald mehr als soziale Sicherheit kosten. Und nächstes Jahr zum ersten Mal - in großem Maße, weil Medicaid ein staatlich-föderales Matching-Programm ist, damit jeder Staat mit der Bundesregierung Geld einbringen muss - im nächsten Jahr werden die Bundesstaaten zum ersten Mal mehr ausgeben Geld für die Gesundheitsversorgung als Bildung. Und da wir - und da ich das unterstützt habe, sehe ich noch andere Gegenwart und ehemalige Gouverneure um diesen Tisch - in den 1980er Jahren sagten wir zu der nationalen Regierung, "Du hast ein Problem mit dem Defizit. Du tust, was du tun musst, um mit deinen anderen Problemen umzugehen. Das ist ein sehr ernstes Gefahrensignal. Wenn Sie möchten, dass die Staaten mehr erziehende Menschen ausgeben, um Kinder zu dem Punkt zu bekommen, wo sie konkurrieren können, um die Arbeit zu erlernen - um die Staaten zu haben, die alle plötzlichen Ausgaben mehr auf Gesundheitswesen als Bildung sind, ist ein sehr ernstes Gefahrensignal für die Verteilung der Zuständigkeiten zwischen dem Staat und der Bundesregierung. Jetzt haben wir einige Optionen. Wenn wir Medicare und Medicaid Ausgaben zu kontrollieren wollen, haben wir grundsätzlich einige Optionen. Und um fair zu sein, wieder möchte ich in den 1980er Jahren unter der Reagan - und Bush-Regierung sagen - die beiden Verwaltungen und der Kongress der Vereinigten Staaten haben versucht, auf verschiedenen Dingen zusammenzuarbeiten, um Medicare und Medicaid Ausgaben zu kontrollieren. Sie haben die gesamte Preiskontrolle von Krankenhäusern und Ärzten entfernt. Sie haben versucht, eine Reihe von Dingen zu machen. Aber was ist passiert Wenn Sie den Preis eines bestimmten Produktes in dieser Umgebung kontrollieren, was passiert, können die Anbieter mehr Produkte liefern, ich meine, mehr von demselben Produkt, richtig Sie erhöhen das Volumen, wenn Sie den Preis senken und das Geld noch steigt . Das ist ein Problem. Zweitens hat sich die Armut in den 80er Jahren erhöht und unter den Armen und den - sowohl dem Leerlauf als auch dem Armen - weiter zunehmen, und das dringt das Medicaid-Budget hoch. So kontrollierte die Einheitspreise nicht. Die andere Sache, die Sie argumentieren konnten, dass wir tun konnten, ist zu versuchen, die Kategorien innerhalb von Medicare und Medicaid im Grunde zu kontrollieren, nur weniger ausgeben. Mit anderen Worten, auch wenn sie Berechtigungen sind, sagen wir nur, dass wir weniger auf bestimmte Kategorien verbringen werden, indem wir sowohl das Volumen als auch den Preis kontrollieren. Gibt es ein Problem damit, dass es ja ist. Was ist ein Arzt oder Krankenhaus wird Ihnen sagen, dass es eine Menge Kostenverlagerung in diesem Gesundheitssystem, und seine eine der Ursachen der steigenden Preise und Ineffizienz. Die Kostenverlagerung erfolgt weitgehend auf zwei Arten - wenn Krankenhäuser sich um Personen kümmern müssen, die keine Versicherung haben oder wenn sie staatlich finanzierte Gesundheitsversorgung weniger als ihre Kosten für die Bereitstellung des Dienstes bieten, verschieben sie die Kosten auf den privaten Sektor. So konnten wir dieses Defizit nach unten bringen - wir könnten das tun - ich will - lass uns auf, wir könnten das machen. Wir könnten nur schneiden, wie viel würde auf Medicare und Medicaid verbringen, obwohl seine eine Berechtigung, in Bezug auf Preis pro Einheit und Volumen. Wir können uns einfach hinsetzen. Aber wenn wir das tun, was wird passieren Diese Kosten werden von den Gesundheitsdienstleistern verschoben werden, um die Menschen, die bereits versichern mit dem Einfluss, dass es eine versteckte Steuererhöhung auf Unternehmen und auf Mitarbeiter werden. Die Angestellten werden es wahrscheinlich sehen, dass sie keine Lohnerhöhungen bekommen, die sie sonst hätte bekommen können. Unternehmen werden es sehen, wenn sie mehr auf Krankenversicherungsprämien ausgeben und weniger in das Geschäft reinvestieren oder Gewinne einnehmen müssen. Ich denke nicht, dass es eine gute Sache ist zu tun. Deshalb hat unsere Regierung argumentiert, dass, wenn Sie wirklich wollen, um dieses Problem zu lösen, müssen Sie zurück und haben umfassende Gesundheitsreform. Dies ist das einzige Land in der Welt, das nicht einen Weg finden, um dieses Problem zu lösen, das gibt nicht - die nur fortgeschrittene Nation, das ist - das gibt keine grundlegende Gesundheitsversorgung für alle seine Bürger in einem Rahmen, der die Kosten in der Öffentlichen und privaten Sektor. Wir verbrachten 14,5 Prozent unseres Einkommens im Gesundheitswesen. Niemand ist über zehn Deutschland und Japan sind neun. Die gesundheitlichen Ergebnisse anderer Länder sind in etwa ähnlich wie unsere. Wir können nicht dahin kommen, wo sie sind, weil wir mehr auf Technologie und mehr auf, im Grunde, teure Behandlungen als andere Länder zu tun, und mehr auf medizinische Forschung. Und das ist gut Und wir können nicht hinunter, wo sie tun, weil wir mehr Gewalt und höhere Raten von AIDS und andere sehr teure Krankheiten als andere Länder haben. Aber wir könnten es besser machen. Und wenn wir es nicht besser machen, in meinem Urteil werden wir uns in Schwierigkeiten befinden. Jetzt hatten wir eine unparteiische Analyse von der angesehenen Firma von Lewin-VHI letzte Woche über unseren Gesundheitsplan. Diese Firma forscht über die Ökonomie der Gesundheitsversorgung für Unternehmen, Gewerkschaften, Verbrauchergruppen. It includes people who served in the Reagan and Bush administrations as budget and health officials. They say that our plan will reduce the deficit. We think it will reduce it even more than they will. I wont get into the details of that today. Were here to talk about entitlements. The point I want to make is I believe you dont entitlement control, you dont get ultimate deficit control unless you do something about Medicare and Medicaid. I believe you dont get that done just by cutting Medicare and Medicaid unless you want to hurt the private sector. Therefore, I think we have to have some sort of health reform. Thats what I believe. You have to decide if you believe that, but I think its important. (Applause.) Let me just close with this. This is the lead editorial in this mornings Washington Post. It says -- on the entitlements mess -- and it says as follows: quotNor have all the entitlements been badly behaved in recent years in terms of costs. The health care programs are the budget busters. By contrast Social Security costs have risen in quotstately fashionquot with population and inflation. And the costs of all the other entitlements taken together, including those that support the poor has declined in real termsquot -- remember what quotrealquot means in Washington, less than the rate of inflation. quotThe real federal budget problemquot -- thats the normal word quotrealquot. Here they mean real like you do. (Laughter.) quotThe real federal budget problem isnt entitlements, its health care. quot So I say to you we can talk about these other entitlements and we should. As we talk about them, let us not make our middle-class squeeze problem worse than it is already. Thats one of the profound problems that is driving this country. One of the reasons that Senator Wofford is in the Senate today, is because of the anxieties of middle-class workers in Pennsylvania. Let us continue to work on this deficit. Let us realize the deficit is too big and the debt is much too large as a percentage of our gross national product. Let us realize that there are two problems with it. One is the deficit and the other is we arent investing enough. But on the entitlements issue, I would argue the real culprit is health care costs, and we can only address it if we have comprehensive health care reform. And let me close by saying one more time, if Marge Mezvinsky hadnt voted for that budget, we wouldnt be here celebrating economic progress or talking about entitlements. Wed still be back in Washington throwing mudballs at each other. And I respect her for that and Im glad to be here today. (Applause.) 2. Remarks on Signing the Social Security Independence and Program Improvements Act of 1994 -- August 15, 1994 Thank you very much. Thank you, Senator Moynihan, Chairman Gibbons, Secretary Shalala. To all the distinguished Members of Congress who are here, especially Senators Mitchell and Dole and the Speaker and to one who is not here, Andy Jacobs, who worked so hard on this endeavor, let me thank you all. Let me especially thank Senator Moynihan, who identified the need to reestablish the Social Security Administration as an independent agency 11 years ago. I was sitting here thinking, when I saw him up here so full of pride that this day had finally come to pass, of two things. First of all, about 8 months ago, Senator Moynihan said to me, quotWe have a lot of important business to do this year. And well have to fight like crazy on all of it. But if you will just come out and say, youre for an independent Social Security agency, I think we can do this unanimously. And that would be a very good thing for Congress to do. quot Laughter And then I was wondering whether, if we waited 11 years we could be unanimous about every issue that comes before us. Laughter I want to thank Senator Moynihan for his persistence and guidance and all the others who have worked so hard on this legislation. When Franklin Roosevelt made a speech to the New York legislature in 1931, he said this: quotThe success or failure of any government must be measured by the well-being of its citizens. quot That was the goal that moved him 59 years ago yesterday. On that day, in a ceremony in the Cabinet Room, just behind us, he signed the Social Security Act into law. And that is what guides us today. With an independent Social Security Administration, we are reinventing our Government to streamline our operations so that we can serve the American people better. We are strengthening those things which Social Security ought to do and taking precautions to make sure it does not do things which it ought not to do. It is proving that Government can still work to improve peoples lives. And now Social Security, we know, will work even better. For millions of Americans, that signature 59 years ago transformed old age from a time of fear and want to a period of rest and reward. It empowered many American families as well, freeing them to put their children through college to enrich their own lives, knowing that their parents would not grow old in poverty. Nine years ago, thanks to that effort, for the first time in the history of the United States, the elderly had a lower poverty rate than the rest of the population. In fighting for Social Security and for so much else, President Roosevelt knew that the American people always would have a personal stake in overcoming the status quo when the need was great enough. That is something we should all remember as we go into the next few weeks, as we delay the August recess, as we struggle to come to grips with the challenges of this age, the challenge of crime, the challenge of health care. These kinds of changes are difficult, but they always have been. In 1935, even Social Security as we know it nearly died in a congressional committee, as Senators considered stripping away the old-age pension. Congress almost left town with this and other critical work unfinished. But they found the grit to work on through the summer of 1935, when they didnt have as much air-conditioning as we have today. And they accomplished so much in that period now known as the Second Hundred Days. President Roosevelt said then that that session of Congress would be regarded as historic for all time. What we do here today maintains that historic commitment. If we keep focus on the work we are sent here to do, what we do here today can be but the precursor of things that we also can do to benefit the American people that will be historic for all time. Now Id like to ask the folks here to join me as I sign this bill. In the beginning, I will for a letter or two at least, use the pen that President Roosevelt used 59 years ago yesterday. Vielen Dank. Written Statement on Signing the Social Security Independence and Program Improvements Act of 1994 Today I am pleased to sign into law H. R. 4277, the quotSocial Security Independence and Program Improvements Act of 1994.quot Fifty-nine years ago, President Franklin Delano Roosevelt signed the original Social Security Act, creating one of the most important and successful Government programs of all times. With the enactment of H. R. 4277, we are beginning a new chapter in the history of the Social Security program, one which recognizes the programs importance by elevating the stature of the agency responsible for its administration. Once combined with a genuine reform of our health care system, we will have fulfilled the vision of the original architects of the Social Security system to provide Americans protection against the vicissitudes of old age and ill health. Establishing the Social Security Administration as an independent agency within the executive branch reflects my commitment to maintain the confidence of all Americans in the Social Security program. I sincerely hope that it will reassure those currently paying into the system that they too will receive benefits when they retire. For nearly 60 years, the Social Security Administration has done an admirable job of carrying out its principal mandate: ensuring that Americans receive the Social Security benefits to which they are entitled. The agencys new status recognizes and strengthens our commitment to this tradition of public service. As I have stated many times, my Administration is committed to quotputting people first. quot Consistent with this philosophy, I issued Executive Order 12862 directing public officials to quotembark upon a revolution within the Federal Government. to provide service to the public that matches or exceeds the best service available in the private sector. quot Establishing an independent Social Security Administration will enhance its ability to meet this goal and provide quotworld class servicequot to all Americans. I also want to highlight that H. R. 4227 includes important provisions designed to strengthen the integrity of the disability programs administered by the Social Security Administration. For example, recipients disabled due to substance abuse will now only receive benefits for a limited time (generally 36 months). These recipients must also undergo appropriate, available treatment. Finally, I must note that, in the opinion of the Department of Justice, the provision that the President can remove the single Commissioner only for neglect of duty or malfeasance in office raises a significant constitutional question. I am prepared to work with the Congress on a corrective amendment that would resolve this constitutional question so as to eliminate the risk of litigation. Again, I am pleased to approve H. R. 4277 and to reaffirm my commitment to carrying out the Social Security program for the benefit of our Nations citizens. William J. Clinton The White House, August 15, 1994. 3. Presidents Statement on Signing H. R. 3161-- March 29, 1996 Today I have signed into law H. R. 3136, a bill providing for an increase in the public debt limit, an increase of the Social Security earnings limit, and increased flexibility for small businesses to comply with regulations. I applaud yesterdays bipartisan congressional vote to maintain the Nationss creditworthiness and financial integrity. With the signing of this bill, millions of Americans will, once again, be secure that this great Nation will stand behind its obligations to pay not only beneficiaries of Federal programs but bondholders as well. Over 8 months ago, Secretary of the Treasury Rubin wrote to the leaders of the Congress, urging them to pass an increase in the debt limit sufficient to extend through the current political season. Secretary Rubin pointed out that attempting to use the prospect of a Federal Government default to achieve leverage in a budget debate was not in the best interests of the American people. Now that we no longer need to focus our efforts on avoiding a default, we can turn our full attention to continuing to bring down the budget deficit as we have successfully done for the last 3 years. When I took office, the deficit was 290 billion -- and rising. By the end of fiscal 1995, the deficit was 164 billion. As a share of the economy, we have cut the deficit by more than half. And just yesterday, the Congressional Budget Office announced its estimate that the deficit for the current fiscal year will fall to 140 billion -- thus cutting the deficit that I inherited in half and fulfilling my commitment to do so in my first term. We should now continue this progress -- and limit future increases in the public debt -- by reaching an agreement to balance the budget by 2002. Over the last several months, I have worked closely with congressional leaders to reach agreement on balancing the budget. In fact, we have about 700 billion in common savings, enough to balance the budget and provide a modest, targeted tax cut. Let me reiterate: I am committed to reaching an agreement with the Congress to balance the budget -- and to reaching that agreement this year. I also am pleased that this legislation increases the Social Security earnings limit. Currently, retired workers ages 65 through 69 who earn wages above a certain amount have their Social Security benefits reduced by 1 for every 3 in earnings. Over 900,000 Social Security beneficiaries lose some or all of their benefits. This reduction in benefits discourages work by senior citizens who are able and willing to do so. Raising the earnings test will increase the standard of living of the elderly and help the Nations economy. This legislation also responds to the legitimate concerns of small businesses regarding regulatory burdens. The bill includes several recommendations of the White House Conference on Small Business that I have supported. In addition, it codifies a number of my reinvention initiatives that will help small businesses comply with Federal regulations and, just as important, enable them to become meaningful partners in the regulatory process. Finally, this legislation increases congressional accountability for regulations, providing expedited procedures for the Congress to review those regulations. I have long supported this concept, and my Administration endorsed the Senates efforts of last year in this regard. I am, however, concerned about changes that the House made to this bill, which will unduly complicate and extend this congressional review process. We will work with the Congress to resolve these concerns. WILLIAM J. CLINTON THE WHITE HOUSE March 29, 1996 4. Excerpts From Presidents 1998 State-of-the-Union Address -- January 27, 1998 When I took office, the deficit for 1998 was projected to be 357 billion, and heading higher. This year, our deficit is projected to be 10 billion, and heading lower. (Applause.) For three decades, six Presidents have come before you to warn of the damage deficits pose to our nation. Tonight, I come before you to announce that the federal deficit -- once so incomprehensibly large that it had 11 zeroes -- will be, simply, zero. (Applause.) I will submit to Congress for 1999 the first balanced budget in 30 years. (Applause.) And if we hold fast to fiscal discipline, we may balance the budget this year -- four years ahead of schedule. (Applause.) You can all be proud of that, because turning a sea of red ink into black is no miracle. It is the product of hard work by the American people, and of two visionary actions in Congress -- the courageous vote in 1993 that led to a cut in the deficit of 90 percent -- (applause) -- and the truly historic bipartisan balanced budget agreement passed by this Congress. (Applause.) Heres the really good news: If we maintain our resolve, we will produce balanced budgets as far as the eye can see. We must not go back to unwise spending or untargeted tax cuts that risk reopening the deficit. (Applause.) Last year, together we enacted targeted tax cuts so that the typical middle class family will now have the lowest tax rates in 20 years. (Applause.) My plan to balance the budget next year includes both new investments and new tax cuts targeted to the needs of working families: for education, for child care, for the environment. But whether the issue is tax cuts or spending, I ask all of you to meet this test: Approve only those priorities that can actually be accomplished without adding a dime to the deficit. (Applause.) Now, if we balance the budget for next year, it is projected that well then have a sizeable surplus in the years that immediately follow. What should we do with this projected surplus I have a simple four-word answer: Save Social Security first. (Applause.) Thank you. Tonight, I propose that we reserve 100 percent of the surplus -- thats every penny of any surplus -- until we have taken all the necessary measures to strengthen the Social Security system for the 21st century. (Applause.) Let us say to all Americans watching tonight -- whether youre 70 or 50, or whether you just started paying into the system -- Social Security will be there when you need it. (Applause.) Let us make this commitment: Social Security first. Lets do that together. (Applause.) I also want to say that all the American people who are watching us tonight should be invited to join in this discussion, in facing these issues squarely, and forming a true consensus on how we should proceed. Well start by conducting nonpartisan forums in every region of the country -- and I hope that lawmakers of both parties will participate. Well hold a White House Conference on Social Security in December. And one year from now I will convene the leaders of Congress to craft historic, bipartisan legislation to achieve a landmark for our generation -- a Social Security system that is strong in the 21st century. (Applause.) Thank you. 5. Excerpts From Presidents Speech in Champaign-Urbana, Illinois -- January 28, 1998 Now, the last thing I want to ask your help on in the coming year -- because were going to have a big dialogue about it -- is something that all of you students probably never think about, and that is Social Security and your retirement. I dont know about you, but when I was your age I never thought about it. (Laughter.) I thought I would live forever, always young. And what Senator Moseley-Braun said is true, the older you get, the faster time goes. I never will forget, once a few years ago I saw a man who was 76 years old at an airport, meeting his brother, getting ready to go to his sisters funeral. And I said, what are you thinking about And he said, oh, Im thinking about when we were five years old, how we used to play together. He said, you know, Bill, it doesnt take long to live a life. I say that to say that even the young must care for the future. Even the young must think about their obligations to generations yet unborn that America must work as a seamless web of community, always doing what is best for today and tomorrow. Now, whats that got to do with Social Security There are polls that say that young people in their 20s think its more likely that they will see UFOs than that they will ever collect Social Security. (Applause.) And all of you know that the Social Security system is supposed to be in trouble. Now, what does that mean It is not in trouble today. Nobody today has got any problems drawing their money. In fact, today we collect more money in Social Security taxes every year, quite a bit more, than we pay out. The problem is that when the baby boomers retire --starting with me Im the oldest of the baby boomers -- people my age and down about 18 years younger, we are the largest group of Americans that have ever lived, except the group that started first grade last year, -- second grade, or third grade, whatever it is, something in grade school -- because weve got more children in schools now, public schools, than we had during the baby boom generation for the first time. But were going to have 18, 20, 25 years where there will be a huge number of people on Social Security in their retirement years compared to the people who are paying in. That is the issue. Now, the question is, what is the best way to prepare for the retirement of the baby boomers in ways that do not either rob those people who need it of their secure retirement, or impose intolerable burdens on our children, who, in turn, will be burdened in raising our grandchildren. I dont know anybody in my generation who believes that we ought to just take it out on you and put our feet up when we turn 65 and turn away from the obligations we have to contribute to the further growth and vitality of people who are younger than we are. So the question is, what is the fairest way to change this Whats best for people who are on Social Security now Whats best for the baby boomers Whats best for young people in their 20s and 30s just starting to pay into the system Whats best for the kids that are in high school now who havent even started. Were going to spend a year having forums all across the country, completely non-partisan, trying to bring people in and debate it. And then about a year from now, Im going to convene the leaders of Congress and were going to try to craft historic bipartisan legislation to reform Social Security, to save it for the 21st century, to make sure its there not just for the baby boomers, but for everybody in this audience and all your children, too, so well have a system that works, so that people who work hard and do their part will know theyll have elemental retirement security and that we can do it without bankrupting the country. I think we can do it. I know we can do it. But its going to take your good-faith involvement -- people of all ages. (Applause.) And since what we do may affect how you proceed throughout your entire work life, weve got to have people involved in their 20s, in their 30s. The young people of this country have got to be involved in this debate. It will affect you as much as anybody else. But if we do it, it will be just sort of like balancing the budget. You know how people said, oh, youll never get that budget balanced, youll never do that, thats just something politicians talk about. It is a huge thing to do. Why We spend less money on debt, we invest more money in our future, we have a stronger economy. The same thing will be true of Social Security. Once we make the adjustments necessary to fix it, the increase in confidence, the increase in savings, the increase in belief in the future of this country as we go forward together will be absolutely astonishing. And we need you to be a part of it. 6. REMARKS BY THE PRESIDENT ON SUBMISSION OF 1999 BUDGET-- February 2, 1998 East Room 10:44 A. M. EST THE PRESIDENT: Thank you very much for that warm welcome. Good morning. Thank you, Mr. Vice President, Mr. Bowles, members of our economic team, members of the Cabinet and administration. And I thank the large number of members of Congress who have come here today, and others, all of you here for the submission of the first balanced budget in 30 years, one that will truly strengthen our nation for the 21st century. This budget marks the end of an era, an end to decades of deficits that have shackled our economy, paralyzed our politics, and held our people back. It can mark the beginning of a new era of opportunity for a new American Century. Consider what has been achieved in so short a time. In the 12 years before I took office, trickle-down economics led to an explosion in the federal deficit which quadrupled our national debt in only 12 years. Government deficits soaked up trillions of dollars in capital that should have been used for productive investment. Massive deficits led to high interest rates that slowed growth. And massive deficits also paralyzed the Congress in their attempts to invest in our future, as we spent more and more and more of the taxpayers dollars just to pay interest on the debt we had run up. The new economy was being held back by old political ideas and arrangements. The deficit was more than an economic reality it was a powerful symbol that government had simply failed to meet its most basic obligations. And doing something about the deficit was one of the reasons I ran for President in 1992. The day I took office, the deficit was projected to be about 300 billion for that year. For five years, beginning in 1993, as the Vice President said, the Congress and the American people have worked tirelessly to put our economic house in order. We have worked hard here to put our fiscal house in order. The government is the smallest its been in 35 years. And deficit reduction has given us lower interest rates, higher investment, and, I might add, lower unemployment, more taxpayers, and more funds to invest in Americas future. That is the gamble we took in 1993 -- a gamble now that I thought was not such a gamble at all. But it did, as the Vice President said, cost several members of Congress their jobs. Wherever they are today -- wherever they are -- I hope they know and remember that we passed that budget in 93 by one vote in the Senate and by one vote in the House and we did not have a vote to spare. And everybody that stood up, and especially those who lost their seats, can know they gave 14 million Americans jobs that would not have been there otherwise and a brighter future for all the American people, and Im very grateful for that. (Applause.) I also want to point out, as the Vice President did, that the job to be finished and to eliminate the structural deficit, came with a balanced budget agreement last year. And we should applaud all those in both parties who were part of that. Because it will not only enable us to achieve a balanced budget, it will enable us to maintain a balanced budget long into the future if we stay with the disciplined framework that was embraced last year by very large majorities in both Houses of both parties. And that is very important. Its one thing to get the deficit down, another thing to hold it there. And that balanced budget agreement will not only go from a much smaller deficit down to balance, but also will hold it there if we stay with the discipline. We have not done all this work to let it go. Now, I believe, if we will stay with the plan, we can balance the budget without further cuts. Indeed, the balanced budget I submitted shows we can balance the budget and still hire 100,000 new teachers and modernize 5,000 schools. We can balance the budget and allow hundreds of thousands of middle-aged Americans who have no health insurance through no fault of their own to buy into Medicare. We can balance the budget and still extend child care to a million more children. And above all we can balance the budget and save Social Security first. (Applause.) In other words, it is obvious that you can have a smaller government but a more progressive one that gives you a more stronger America. Weve done more than simply balance the budget, more than just line up numbers on a ledger. We have restored the balance of the values in our policy, restored the balance of confidence of between government and the public. Now, well have a balanced budget not only next year but as far as the eye can see. We have to use this opportunity to build a stronger America. And lets just talk about that. First and foremost, we project that the budget will not only balance, it will actually run a surplus of 9.5 billion next year and over 200 billion over the next five years -- fully 1 trillion over the next 10 years. This budget reserves that surplus -- I want to say it again -- this budget reserves that surplus, saving it until we have taken the steps necessary to strengthen Social Security into the next century. One of the reasons that balancing the budget has been hard is that we have insisted on a balanced budget that honors our values. Finding a way to reduce red ink without shrinking the circle of opportunity has been at the heart of our efforts. And when we started, most people said you couldnt do it. They said there is no way to cut the rest of government enough to reduce the deficit and increase investment in important areas. But that is an important achievement as well. Now it is most important of all that we balance the budget while renewing our commitment to save Social Security. When I left Washington last week and went to Champaign, Illinois, and La Crosse, Wisconsin, I was moved by the strength and depth of the American peoples priority for the surplus they created. I think they want us to save Social Security first, as well. And I hope all of you, and members of Congress in both parties, will support that. We have a great opportunity now to take action now to avert a crisis in the Social Security system. We have a great opportunity now to be able to tell all these young people who are shadowing their Cabinet and administration leaders that Social Security will be there for them when they retire. We have a great opportunity, those of us in the baby boom generation, to tell our own children that when we retire and start drawing Social Security, it isnt going to bankrupt them to take care of us and undermine their ability to take care of their own children. We need to do this. We dont need to take any shortcuts, we dont need to take any short-term benefits. Before we do anything with that surplus, lets save Social Security first. (Applause.) The budget continues our efforts at education reform. As I said, it enables us to hire 100,000 new teachers working with states to reduce class size to an average of 18 in the 1st, 2nd, and 3rd grades, and to help modernize or build 5,000 schools. It helps to give our parents the tools they need to meet their responsibilities at home and at work, among other things allowing people between the ages of 55 and 65 who lose their health insurance to buy into the Medicare program. It includes a breakthrough investment in child care through tax credits, vouchers for states, scholarships for care givers. It will help America to meet its obligations in international leadership -- meet our obligations to stabilize the worlds financial markets, to pay our dues to the United Nations, to continue our support of our military so that our men and women in uniform can continue to do the job for us. It will provide tax cuts in research and development to help meet the challenge of global climate change in a way that enables us to grow the economy while actually improving the environment. It continues to support our urban empowerment strategy, bringing more private sector investments to our hardest-pressed cities and neighborhoods while continuing to put 100,000 police officers on the streets and giving our children something to do after school, so more of them can stay out of trouble and on a path to success. It will lead to future generations the gift of scientific and medical advances. The 21st Century Research Fund, the largest funding increases ever for the National Institute of Health, the National Science Foundation, and the National Cancer Institute, will speed the progress of biomedical breakthroughs in the fight against many of our deadliest diseases. The budget funds these initiatives by continued cuts in government programs, by closing unwarranted tax loopholes, and from the passage of tobacco legislation, which, as every passing day shows, is critically important to the future of our children and therefore of our country. (Applause.) This budget meets the test I set out before Congress last week: no new spending initiatives, no new tax cuts unless they can actually be accomplished without adding a dime to the deficit. For more than two centuries, Americans have strengthened our nation at every critical moment with confidence, unity, a determination to meet every challenge. For too long the budget deficit, a worsening crime wave, the seemingly unsolvable welfare difficulties -- they all seemed to challenge our innate American confidence. In the past five years, the American people have met these challenges and have moved to master them. Now we have a chance, in a period of peace and prosperity with renewed confidence, to build for the future. Thats what this balanced budget does. Now, it is -- I am going to close my remarks now, by asking the Vice President to give me a magic marker so that I can be the first person to actually certify what the budget will say for the coming year. Even we can do this. I am technologically challenged, therefore, were not doing this on a computer. (Laughter and applause.) END 10:55 A. M. EST 7. REMARKS BY THE PRESIDENT ON SOCIAL SECURITY -- February 9, 1998 Gaston Hall, Georgetown University, Washington, D. C. THE PRESIDENT: Thank you very much. Special thanks to those of you who had to wait all night to get in. (Laughter.) Hope you wont be disappointed. (Laughter.) Mr. Vice President, Father ODonovan, to all the groups here who are concerned with Social Security, especially to Congressman Penny and the Concord Coalition, and John Rother and the AARP, I thank you all for being here. I thank Senator Bob Kerrey, who when he cast the decisive vote for our budget in 1993 said that he would do so only if I were also committed to dealing with the long-term structural problems of Social Security, to heal the deficit there as well. I thank Gene Sperling and the members of my staff who worked with us on this. And thank you, Mannone Butler, for embodying what this struggle is all about. Werent you proud of her She did a great job I think. Vielen Dank. (Applause.) When I first ran for President six and a half years ago now, I came to this hall to set out my vision for 21st century America, and a strategy for achieving it. Often in the years since I have come back here to discuss our nations most demanding challenges. And on many occasions, but none more relevant than today, I have recalled the assertion of my freshman professor in the history of civilizations course, Carroll Quigley, that the distinguishing characteristic of Western civilization in general and the United States of America in particular is what he called future preference -- the idea that the future can be better than the present or the past that each of us has a personal, moral responsibility to work to make it so, to plan for it, to work for it, to invest for it. There is no better example of that principle for the strength of America than the opportunity and the duty all of us as Americans have now to save Social Security for the 21st century. So today I return to discuss what we have to do to achieve that and why it is so important. You know, there was a recent poll which said that young people in the generation of the students here felt it was far more likely that they would see a UFO than that they would draw Social Security. (Laughter.) And others may think that its a long way off, as Mannone said, and the Vice President said he thought it was a long way off. A couple of days ago I went to New Mexico to visit our national labs -- you may have seen the story. And our national labs at Los Alamos and Sandia and Lawrence Livermore, where we do a lot of the research that not only helps us to preserve the security of our smaller and smaller nuclear arsenal, but helps us to deal with our environmental questions and a lot of other fascinating challenges of the future. But anyway, after I finished this, I had lunch with a few of my friends, including a man that I went to Georgetown with. And at the end of the lunch, he whipped out this photo and gave it to me, and we were sitting in a park together, about a week after I graduated in 1968. And I looked at that photo and I said, my goodness, where did all the time go It seems like it was yesterday to me. I say that to make this point: It may seem a long way away from the time you now -- where you are until you will need retirement. It may seem a long way away before most of your parents need retirement -- but it isnt. And great societies plan over long periods of time so that individual lives can flower and take root and take form. And that is what we have to do today. Social Security is a lot more than a line in the budget. It reflects some of our deepest values -- the duties we owe to our parents, the duties we owe to each other when were differently situated in life, the duties we owe to our children and our grandchildren. Indeed, it reflects our determination to move forward across the generations and across the income divides in our country, as one America. Social Security has been there for Americas parents in the 20th century, and I am determined that we will have that kind of security for the American people in the 21st century. We are entering this new millennium, the new century, with restored confidence -- the Information Age, a growing global economy, theyre changing the way we live and work. And the scope and pace of change, well, it may seem commonplace to those of you who have grown up with it, but to people my age it is still truly astonishing. And I can tell you, it is without historical precedent. For a long time our country failed to come to grips with those changes and we paid the price in a stagnant economy and increasing inequality among our working families, in higher child poverty, in record welfare rolls, higher crime rates, other deepening social problems. Before the present era we had only run budget deficits, and the deficit I think came to symbolize what was amiss with the way we were dealing with the changes in the world. We had only run budget deficits for sound economic reasons -- either because there were some overwhelming need to invest or because there was a recession that required stimulation of the economy, or because there was a national emergency like war. The idea that we would just simply have a structural deficit and run one year in and year out was unheard of. But that is exactly what has happened throughout your lifetime. And it got so bad in the 1980s that between 1981 and 1992 the total debt of the country was quadrupled -- quadrupled -- in a 12-year period, over and above the previous 200 years. That raised interest rates. It took more and more tax money away from investments in education, for example, or the environment to pay interest on the debt. It slowed economic growth and it definitely compromised your future. Five years ago I determined that we had to set a different course, to move past the debate that was then paralyzing Washington and, frankly, didnt have much to do with the real world, between those who said government was the enemy, those who said government was the solution and as long as you can fight about something, then you dont have to get down to the nitty-gritty of dealing with the real problems. When the British Prime Minister was here last week, Tony Blair, we stressed that we both think, and many other leaders increasingly around the world are beginning to think that this debate is fruitless and that there has to be a third way -- that 21st century government, Information Age government, must be smaller, must be less bureaucratic, must be fiscally disciplined and focus on being a catalyst for new ideas and giving you and all other Americans the tools they need to make the most of their own lives. For five years we have reduced the size of the deficit, reduced the size of government, dramatically reduced the budget deficit by over 90 percent, but continued to invest in your future. And in very dramatic ways thats changed the experience of going to college. Student loans that are guaranteed by the government have been made less expensive and easier to repay. There are hundreds of thousands of more Pell Grant scholarships, 300,000 more work-study slots. AmeriCorps has allowed 100,000 young people to earn money for college while serving in their community. There are now tax-free IRA accounts for college education. Last year we enacted the HOPE Scholarship, which is a 1,500 tax credit for the first two years of college. And then theres a lifetime learning tax credit for junior and senior years for graduate schools and for adults who have to go back for further training. For the first time in history, while reducing the deficit by 90 percent, we can honestly say if youre willing to work for it, whatever your circumstances, you can go on to college in the United States, and that is a very important achievement. Now, all of these things have worked together to give us the strongest economy in a generation -- almost 15 million new jobs, the lowest unemployment rate in 24 years, the lowest inflation rate in 30 years, the highest homeownership in history, average incomes rising again. Ive submitted to Congress for 1999 the first balanced budget in 30 years. All that is a remarkable achievement. But, as I said, we have to be thinking about the future. And all of you know to a greater or lesser degree of specificity, every one of you know that the Social Security system is not sound for the long-term, so that all of these achievements -- the economic achievements, our increasing social coherence and cohesion, our increasing efforts to reduce poverty among our youngest children -- all of them are threatened by the looming fiscal crisis in Social Security. Today I want to talk about what it is and how we propose to deal with it. And as the Vice President said, we should use the economic good times. That old saying that you dont wait for a rainy day to fix the roof is good for us today its very sunny outside. And on this sunny day, we should deal with Social Security. In very specific terms, weve got a great opportunity because it is projected that we stay with the present budget plan, that taking account of the fact that we wont always have the greatest economic times as weve had now -- there will be times when the economy will grow faster, times when it will grow slower, we may recessions -- but structurally, we have eliminated the deficit, so that over time we should have a balanced budget, and over time, most times we should be running a surplus now if we stay with the discipline we have now over the next couple of decades. Now, if thats so, it is now estimated that with normal ups and downs in economic growth, over the next 10 years, after 30 years of deficits, that the United States will have a budget surplus in somewhere in the range of a trillion dollars in the aggregate over the next 10 years. I have said before we spend a penny of that on new programs or tax cuts, we should save Social Security first. I think it should be the driving principle of this years work in the United States Congress -- do not have a tax cut, do not have a spending program that deals with that surplus -- save Social Security first. That is our obligation to you and, frankly, to ourselves. And let me explain that. This fiscal crisis in Social Security affects every generation. We now know that the Social Security trust fund is fine for another few decades. But if it gets in trouble and we dont deal with it, then it not only affects the generation of the baby boomers and whether theyll have enough to live on when they retire, it raises the question of whether they will have enough to live on by unfairly burdening their children and, therefore, unfairly burdening their childrens ability to raise their grandchildren. That would be unconscionable, especially since, if you move now, we can do less and have a bigger impact, especially since we now have the budget surplus. Let me back up just a minute, mostly for the benefit of the young people in the audience, to talk a little bit about the importance of this effort. Its hard for even people in my generation to understand this, much less yours. But early in this century, to be old meant to be poor. To be old meant to be poor. The vast majority of people over 65 in America early in this century were living in poverty. Their reward for a lifetime of work, for doing right by their children, for helping with their grandchildren, unless their kids could take care of them, was living in poverty. If you ever have a chance you ought to read some of the books that have thousands of letters that older people sent to President Roosevelt, begging him, in the words of one typical letter writer, to eliminate -- and I quote -- quotthe stark terror of penniless, helpless old age. quot Thats what prompted President Roosevelt to launch the Social Security system in 1935, to create what he called the cornerstone of a civilized society. Now, for more than half a century Social Security has been a dramatic success. If you just look at the first chart over here on the right, you will see that in 1959 -- I dont see as well as I once did -- (laughter) -- the poverty rate among seniors was still 35 percent. As recently as 1959, still over a third of seniors lived in poverty. By 1979, it had dropped to 15.2 percent. By 1996, it had dropped to 10.8 percent. To give you an idea of the profound success of the program over the last 30 years -- as you know, there have been increasing number of children being raised in single-parent households, where the incomes are not so high -- the child poverty rate in America is almost twice that. But no one can begrudge that. So the first thing we need to say is, Social Security has succeeded in ending the stark terror of a penniless old age. And that is a terrific achievement for the American society. Now, its also known, however, that the changes that are underway today will place great stresses on the Social Security safety net. The baby boomers are getting grey. When my generation retires -- and Im the oldest of the baby boomers I was born in 1946, Im 51 -- and the generation is normally held to run for the 18 years after that, thats normally what people mean when they talk about the baby boomers -- it will dramatically change the ratio of workers to earners, aggravated by increasing early retirements and other things, offset by gradual increase in the Social Security retirement age enacted back in 1983. So if you look at that, thats the second chart here. In 1960, there were 5.1 Americans working for every one person drawing Social Security. In 1997, theres still 3.3 people working for every one person drawing Social Security. In 2030, the year after the Social Security trust fund supposedly will go broke unless we change something, at present projected retirement rates -- that is, the presently projected retirement age and same rates -- there will be two people working for every one person drawing Social Security. Now, if you look at that plus the present investment patterns of the funds of which are designed to secure 100 percent security and, therefore, get a somewhat lower return in return for 100 percent security for the investments, thats what will cause the problem. So if you look at the presently projected retirement and the presently projected returns, that will cause the problem. Its very important you understand this. Once you understand this, you realize this is not an episode from the X Files, and youre not more likely to see a UFO if you do certain specific things. On the other hand, if you dont do anything, one of two things will happen -- either it will go broke and you wont ever get it or if we wait too long to fix it, the burden on society of taking care of our generations Social Security obligations will lower your income and lower your ability to take care of your children to a degree most of us who are your parents think would be horribly wrong and unfair to you and unfair to the future prospects of the United States. So whats the bottom line You can see it. Today, were actually taking in a lot more money from Social Security taxes enacted in 1983 than were spending out. Because weve run deficits, none of that money has been saved for Social Security. Now, if you look at this little chart here, from 1999 forward well be able to save that money -- or a lot of it, anyway. Well be able to save a lot of it that will go into pure surplus in the budget. It can be invested. But other things will have to be done, as well. That will not be enough. And if nothing is done by 2029, there will be a deficit in the Social Security trust fund, which will either require -- if you just wait until then -- a huge tax increase in the payroll tax, or just about a 25 percent cut in Social Security benefits. And let me say today, Social Security -- I want to put that in, too, because I want you all to start thinking about this -- Social Security was conceived as giving a floor for life. It is not enough to sustain the standard of living of almost any retiree retiring today. So you also will have to make provisions for your own retirement savings, and you should start early when you go out and go to work, with a 401(k) plan or whatever. But this is what is going to happen unless we change. if we change now we can make a big difference. I should also point out that Social Security also goes to the spouses of people when their widowed. Social Security also goes to the disabled. Theres a Social Security disability program. Cassandra Wilkins, whos here with us, who the Vice President recognized, ran the Social Security disability program for me when I was governor. Its a very important program. But all of these things should be seen in terms of these economic realities. Now, again I say, if we act soon, less is more. If we can develop a consensus as a country to act soon we can take relatively modest steps in any number of directions to run this 2029 number well out into the future in ways that will keep Social Securitys role in providing some retirement security to people without unfairly burdening your generation and your ability to raise your children to do that. And I can tell you, I have had countless talks with baby boomers of all income groups and I havent found a single person in my generation who is not absolutely determined to fix this in a way that does not unfairly burden your generation. But we have to start now. We have to join together and face the facts. We have to rise above partisanship, just the way we did when we forced the historic balanced budget agreement. This is -- as you can well see, this is reducible to stark mathematical terms. This need not become a partisan debate. Oh, there ought to be a debate, a good debate on what the best way to invest the funds are. There ought to be a good debate on what the best trade-offs are between the changes that will have to be made. But it ought to be done with a view toward making America stronger and, again, preserving the ties that bind us across the generations. I have asked the America Association of Retired Persons, the AARP, a leading voice for older Americans, and the Concord Coalition, a leading voice for fiscal discipline, to organize a series of four nonpartisan regional forums this year. The Vice President and I will participate. I hope the Republican and Democratic leadership will also participate. I was encouraged that Speaker Gingrich said the other day that he felt we should save the surplus until we had fixed the Social Security first. The first forum, which will set out before the American people the full nature of the problem -- essentially, what Im doing with you today with a few more details -- will be in Kansas City on April 7th. Then in subsequent ones we will hear from a variety of experts and average citizens across all ages. It is very important to me that this debate involve young people -- very important, because you have a huge stake in it and you need to imagine where you will be and what kind of investment patterns you think are fair for you and how you think this is going to play out over the next 20, 30, 40 years. We want people of all ages involved in this. This national call also will spread to every corner of the country, to every member of Congress. There are other private groups which have to play a role. The Pew Charitable Trust has launched a vital public information campaign -- Americans Discuss Social Security. On March 21st, I will help kick off the first of many of their town hall meetings and teleconferences. Now, when we go out across the country and share the information and get peoples ideas -- then, at the end of the year in December, I will convene a historic White House Conference on Social Security. And then, in a year, I will call together the Republican and Democratic leaders of the House and Senate to begin drafting comprehensive, bipartisan landmark legislation to save the Social Security system. This national effort will require the best of our people -- and I think it will get the best of our people. It will ask us to plan for the future. It will ask us to be open to new ideas, not to be hide bound and believe that we can see the future through the prism of the past. But it will ask us to hold on to the old values that lifted our senior citizen from the burden of abject poverty to the dignity of a deserved good, solid old age. Keep in mind, most of you who are sitting out here can look forward to a life expectancy well into your 80s. Most of you, by the time you get to be my age, if you live to be my age, your life expectancy will probably be by then 90 or more. Were going to have to rethink this whole thing. But we have to do it with a view towards preserving the principles and the integrity of our society, binding us together across the generations and across the income divides. We can do this. President Roosevelt often called us to the spirit of bold, persistent experimentation. We will have to do that. But he also reminded us that our greatest challenges we can only meet as one nation. And we must remember that. With our increasing diversity, and the way we work and live, and our racial and ethnic and other backgrounds -- religious backgrounds -- we still have to be, when it comes to treating people with dignity and fulfilling our obligations to one another, one nation. Acting today for the future is in some ways the oldest of American traditions. Its what Thomas Jefferson did when he purchased the Louisiana Territory and sent Lewis and Clark on their famous expedition. Its what Abraham Lincoln did when at the height of the Civil War, he and the Congress took the time to establish a system of land grant colleges, which revolutionized the future of America. Its what we Americans did when, in the depths of the Depression, when people were only concerned about the moment, and 25 percent of the American people were out of work, our Congress and our President still took the time to establish a Social Security system, that could only take flower and have full impact long after they were gone. That is what we do when we do best -- what Professor Quigley called quotfuture preference. quot What I prefer is a future in which my generation can retire, those who are not as fortunate as me can retire in dignity, but we can do it in a way that does not burden you and your ability to raise our grandchildren. Because I believe the best days of this country lie ahead of us if we fulfill our responsibilities today for tomorrow. Vielen Dank. (Applause.) 8. REMARKS BY THE PRESIDENT TO THE NATIONAL MORTGAGE BANKERS ASSOCIATION -- March 2, 1998 Hyatt Regency Hotel Washington, D. C. 10:40 A. M. EST THE PRESIDENT: Thank you all so much. Thank you, Marc, and Paul Reid and Mike Ferrell and all the officers and staff of the Mortgage Bankers Association to our National Treasurer and members of the National Association of State Treasurers. Im delighted to be here, along with Frank Raines, my OMB Director, who used to spend some time with some of you, and Gene Sperling and others on our staff. I have looked forward to this day for a long time, just to be able to thank you for the work that all of you have done in giving America the highest homeownership rate in the history of the Republic. It means a lot to a lot of people out there in the country and I appreciate your role in this historic achievement and I thank you very much. (Applause.) In my State of the Union address I called upon all our people to strengthen our country for the new century ahead. Historically, that has always meant deepening the meaning of Americas freedom, strengthening our union, and drawing our people closer together across all the lines that divide us and, clearly, always widening the circle of opportunity. Now, we are seeing a remarkable increase in the circle of opportunity. In addition to reaching the highest level of homeownership in history, millions of Americans have been able to refinance their mortgages, which has amounted to billions and billions of dollars in tax cuts for families -- putting more money in their pockets, freeing up more for investment and savings. Access to capital has spread to minorities who for years have been locked out of the economy. And I appreciate what Marc said about going to New York. We do see increasing homeownership rates for minorities now and I hope it will continue. Our capital markets are the strongest in the world, and clearly they have played a major role in helping us to do well in this new economy. Today, what Id like to do is talk to you just for a few minutes about why we have to follow a consistent strategy of fiscal discipline and investment in our future, in our people. The strategy that has worked for the last five years we must continue into the next century. I also want to talk about how all the discussions surrounding the tax system and the IRS fit into this -- what is the right way to cut taxes, what is the right way to reform the IRS, what is the wrong way to do it. I especially want to comment on what I believe strongly is a misguided scheme recently introduced in the Congress that I believe could take us back to policies which have failed us in the past. These are good times for our country, with a new economy powered by technology, nurtured by the ingenuity of the human mind, enlarged by our newfound fiscal discipline at home and increasing trade among all nations. Over the past five years our new economy has produced now almost 15 million new jobs, with the highest percentage of those jobs in the private sector of any recovery in memory. Unemployment is the lowest in 24 years business investment is growing at 11 percent, the fastest pace in 30 years since 1993, family incomes are up about 2,200. Today we have fresh new evidence that the economy continues to grow. Personal income rose six-tenths of one percent last month alone. Our social problems, from crime to welfare, are bending to our efforts. The welfare rolls are the lowest in 27 years the crime rate the lowest in 24 years. We now have literally a system in which we have opened the doors of college education to all people in this country who are willing to work for it, with tax credits, with IRAs, with better student loans and tax deductibility for the interest on those loans, more Pell Grants, more work-study positions. We are adding 5 million children from working families to the ranks of those with health insurance. Combined with our record levels of homeownership, the American Dream is clearly within reach for more and more American families. This did not happen by accident, but no one alone can claim credit for it. It was the product of a remarkable concerted endeavor by tens of millions of Americans. But it also was supported by the economic policies that we have followed with discipline and consistency over the last five years. We moved beyond the sterile debate between those who said government was the problem and those who said it was the solution, to a new way, a new government for the Information Age that gives our people the tools they need to make the most of their own lives, that is unashamedly a catalyst for new ideas where the old ones dont work, that is a good partner with the private sector. We have the smallest government here in Washington since President Kennedy was in office. But it is still more progressive, more active. It is smaller, but the nation is stronger. We put in place a three-part economic strategy, rejecting these false choices from the past. First, restoring fiscal discipline and conquering the deficits that hobbled growth, spiked interest rates, and robbed our economy of capital for investment throughout the 1980s. Second, investments in our people, in science and technology, in education and job training and health care, so that everyone has a chance to reap the rewards of growing prosperity. And, third, we responded to the global nature of the new economy by opening new markets to our goods and services. The strategy is clearly working. There is renewed confidence in the American economy. Its stability, its strength, its steady growth are the envy of the world. More than ever we are also investing in the future. A record two-thirds of Americans almost --as Marc said, almost two-thirds -- now live in their own homes and we must finish the job. I agree with you that the most important thing we can do in this session of Congress is to support Secretary Cuomos plan to raise the FHA loan limit. We can pass it and we must. (Applause.) Now, last month I submitted to Congress the first balanced budget in a generation. If we are fortunate and if we can work together with our allies around the world to minimize the impact of the recent difficulties in Asia on our own economy, Mr. Raines says that well probably have a balanced budget this year. Instead of deficits, America can now look forward to about a trillion dollars in surpluses over the next 10 years. Now, that is a tempting target in an election year in Washington. first of all, let me remind you they have not materialized yet. And we shouldnt count those chickens before they hatch. Secondly, we should remember what we did to the long-term strength of America when we quadrupled the debt of this country in the 12 years from 1981 through 1992. And we should not repeat that error again. Finally, we shouldnt use the surplus for any new tax cuts or new spending programs until we have confronted the challenge of saving Social Security first. I think that is very important. (Applause.) All of you are generally familiar with the problem -- its projected that the Social Security trust fund will not cover payments starting in the year 2029. Thats the year when all the baby boomers will finally be in the Social Security system and at presently projected birth and immigration rates and labor force participation rates, it means that there will be only about two people working for every person drawing Social Security. Now, those things could all change to some extent but no matter what, it is clear that the generation of the baby boomers entering the Social Security system will be quite larger than the generation just following it. Indeed, the generation now in public schools, starting last year, is the first generation in American history larger than the baby boom generation. I do not know a single person my age or younger -- because Im the oldest of the baby boomers -- I hate that but its true -- (laughter) -- I dont know a single person who doesnt think about the problems we could create for our children if we dont make the changes now in the Social Security system we need to. No one wants to burden our children and their ability to raise our grandchildren. On the other hand, it is important to remember that its just since 1985 that senior citizens have been less poor than the rest of us. That is an astonishing achievement for a country that 60 years ago had 70 percent of its seniors living below the poverty line, many of them in abject poverty. Now, if we make small changes today with discipline, we can deal with this issue. And I also want to point out something all of you know, which is that hardly anybody -- even though Social Security helps people keep body and soul together -- hardly anybody in America can retire and maintain his or her standard of living on Social Security alone. So we must also do more to help Americans save for their own retirement. Weve done a lot of work with the 401(k) plans and other things we need to do more. So were going to work in this next year very hard in what I hope will be a completely nonpartisan way to acquaint the American people with the details of the challenge before us, to explore all the alternatives, and then to come up with a solution, which I hope the Congress will pass early next year to deal with this. You say, well if you pass it in 1999, 2029 -- thats 30 years away. First of all, those of you in the audience who are my age or older know that 30 years can pass in the flash of an eye. But, secondly, I would remind everyone that the longer we wait to deal with this, the more severe actions will be required to deal with it. If we move now, with modest but disciplined changes, we can do a great thing to ensure the financial strength of America in the 21st century and to preserve the compact that binds us together across the generations. I cannot emphasize how strongly I feel about this. Now, there are other economic challenges we face as well, and Ill just mention two very briefly. One is, how do we extend the benefits of enterprise that have brought so much to America in the last few years to those who still have not felt the impact of the economic recovery, principally in the inner cities and isolated rural areas. We have a whole range of proposals in that regard, a lot of them coming out of Secretary Cuomo, a lot of them coming out of the Vice Presidents community empowerment initiative. But I think it is very important that we recognize that these people who are still unemployed or underemployed are the great target we have for the rest of us to keep the economy growing with low inflation, so we can do what is morally right to try to expand opportunity to people who still dont have it and help the overall American economy as well. The second point Id like to make is that if we want to continue to see this economy grow, we have to have people who are skilled enough and well trained enough and well educated enough to take positions in tomorrows economy, not yesterdays economy. There was a study which came out a couple of weeks ago, I cant remember the exact number, but there was something like nearly 400,000 openings in America today for people in information technology related jobs. And when you go to some of our larger inner-city neighborhoods where the unemployment rate is still 10 percent, you say, well, what is wrong with this picture Well, we got one indication of what is wrong with this picture last week when we saw that our 12th graders in the International Math and Science Survey scored 19th among 21 countries in their performance in math and science. So the other big economic issue before America is how to make our system of elementary and secondary education as good as our system of higher education. No one doubts that we have the best system of colleges and universities in the world we should not rest, and we cannot rest, until we have the best elementary and secondary education in the world. It is a major economic issue for our country. (Applause.) Anyway, its against this background that I think you have to see the emerging debate, or, if you will, the continuing debate, on the tax system -- what taxes should be cut and how and the IRS, how should we go about collecting taxes. This is a hazardous discussion that its easier for me to enter into maybe because Im not on the ballot anymore. (Laughter.) Since theres no such thing as a positive thing anyone ever wants to say about this. But we need to think about it. This debate can be a very healthy thing. We should always be examining, you know, whether there are changes in the tax system we could have which would either be fairer, or which would achieve our common objectives more, or which would grow the economy faster. And we should always be looking for ways that through either common sense or new technology we can ease the burden on our people of paying taxes -- always. The door should never be shut to reform and there will always be more to do, no matter what system we adopt. I think all of us know that. But the point I want to make today is that this debate must occur within the context of our commitment to a long-term economic strategy that will work for our people. It should occur within a context of our commitment to maintain economic confidence in the future. There is a right and a wrong way to do reform. And the right way must involve our continued commitment to fiscal discipline, to investing in our people and to making the future a predictable and confident one in terms of our economic policy. Now, within that context, over the last five years weve worked hard to reform our tax laws. Weve honored our responsibilities as parents with the 500 per child tax credit. Weve rewarded work by more than doubling the Earned Income Tax Credit, which basically is designed to say if youre a parent and you work 40 hours a week your child ought not to be in poverty. Over 2 million children have been lifted out of poverty because of the changes in the Earned Income Tax Credit. (Applause.) Weve recognized the importance and the cost of college education -- with the HOPE Scholarship tax credit, which is worth 1,500 a year for the first two years of college lifetime learning credits for junior and senior years and graduate schools the tax deductibility of student loan interest payments and other initiatives. Weve encouraged homeownership by eliminating capital gains on almost all home sales. And weve helped Americans save for their retirement, for their education and health care costs, by expanding IRAs. At the same time, billions of dollars in tax loopholes that were more wasteful have been closed. This year, the balanced budget proposal I presented to Congress continues to help working families with new tax cuts to make child care more affordable, our economy stronger, and our environment cleaner by meeting the challenge of climate change. We also had to continue our work to improve the operations of the IRS. Like every American and the majority of IRS employees, who are trying hard to do their jobs well, I get outraged when I hear about abuses in the IRS. But we are making changes, and we must continue to do so. Ive already signed into law 40 tax simplification measures and a new Taxpayer Bill of Rights. As of February the 20th, less than two weeks ago, 10.7 million Americans had filed their tax returns electronically for this year -- thats a 19 percent increase over last year 3.8 million Americans have filed by telephone -- thats a 25 percent increase over last year. The average telephone conversation is 10 minutes. I think thats pretty good, and I hope more will continue to do that. We are having problem resolution days, which have been widely publicized by the media, and I thank them for that, in every IRS district, at least once a month, where the IRS employees are open -- they open the offices at night or on the weekends, people come in with their tax problems, and we try to resolve them in a quick and informal way. I think all these things are very important. We just approved new regulations to protect so-called innocent spouses, who are left with tax liabilities by their spouses, that they had no role in undertaking. Now, theres more to do, but a lot has been done. Among the new reforms proposed are new citizen advocacy panels, new systems to file taxes by phone or computer to make it even more easy and more widely used, stronger taxpayer advocates, phone lines opened 24 hours a day, further relief for innocent taxpayers. Late last year, the House passed these reforms almost unanimously. I think there were over 400 votes for them, and only three or four against. So, again let me say, I hope that the Senate will quickly pass this legislation and send it to me for my signature. Its a good bill, and it will do a lot of good for Americans. Now, we need to continue to do these kinds of things, and we need to be open to broader reforms of the tax system. But there are some people in Congress who have made a proposal that I think would not fit within the formula of economic discipline and confidence that I believe we have to stay with. Under the guise of reform, they have proposed what, to me, is an irresponsible scheme -- to eliminate our tax laws without any system to replace them. Now, at first glance, this might look good. Sunset the tax code, when everybody knows there will be no more tax code that will shake everyone up, and then they will come forward with a responsible alternative. And, trust me, everything will be fine. Thats the message. Once you know that the old code is gone and on a date certain it wont be there, well, everyone will surely have to come up with something, and it must be something that will be better. Dont worry about the details. Thats what this proposal is, and it has a lot of appeal. Its like saying you cant go on a diet until the refrigerator is empty. But if you think about it, it only works if you know that you can fill the refrigerator up again and what will be in there. Now, instead of proposing reform, this proposal is really economic uncertainty. What we have done is to restore some confidence and predictability to the American economy. When you knew that we were going to stay on a path of fiscal discipline and the deficit was not going to go to 300 billion a year, was not going to go to 370 billion a year -- which was what it was predicted to be for this year when I took office -- instead of 10 billion or zero, which is what its going to be. This is a way of going back to that era -- a total economic uncertainty. What would it do Think about your business. It would cripple families and businesses ability to plan and save for the future while the uncertainty existed. It would undermine the fiscal progress of the last five years. No one concerned about fighting crime would even think about saying, well, three years from now were going to throw out the criminal code and well figure out what to put in its place. No one would do that. That is what this proposal is. That is exactly what some people in Congress are proposing to do. Now, think about what repealing the tax laws with no known alternative would mean. It would mean that you would know there would be no home mortgage deduction, but you wouldnt know what would be in its place. There might be no charitable contribution deduction, but you wouldnt know what would be in its place. We would repeal the Roth IRA, but you wouldnt know what would be in its place. All that would be certain about this proposal is uncertainty. And again I say, as all of you in this room well know, uncertainty is the enemy of economic growth. We live in a world where there is a lot of change and unpredictability and uncertainty by definition in the nature of this new economy. But to do well you have to at least know what the rules are. Our economy is growing because consumer confidence and business investment are at record highs. Last week the two indexes of consumer confidence came out -- one was at a 30-year high, the other was at an all-time high. What people think is going to happen, as all of you know, in an economy, is just as important as what, in fact, is happening today. Almost every business investment has tax consequences. With no ability to predict the consequences, businesses might decide to postpone, cancel or pare back on plans to buy new computers, build a new factory, hire new workers. How could you plan, construct or finance a new apartment complex or shopping center if you couldnt calculate the return on investment, because you couldnt determine the tax consequences. Business growth would stall in that kind of uncertainty. And economic uncertainty is no friend to families. The scheme to abolish the tax code could threaten nearly every American familys best laid plans for the future. For example, mortgage rates are low now. People are refinancing their mortgages all the time. This has been a wonderful thing for America. What would happen to family behavior with regard to homeownership if people thought the home mortgage deduction might disappear. Would students be as serious about going to college if they thought the HOPE scholarships and the other tax credits and interest deductions wouldnt be there. Would families think twice about how much they were going to give to their church or their synagogue or their favorite charity if they thought there would be no tax deduction for it. We were just talking about the Social Security reform and how no matter how we reform Social Security, people have to save more for their retirement. Will young families who have a hard enough time paying their bills really be setting aside money for their retirement if they think the tax incentives or pensions or 401(k)s and IRAs are about to evaporate. In other words, I just think its wrong to shut down the old tax system and tell people its going to be shut down by a date certain without saying, at the same time, what is going to be in its place. None of us would say that no one on earth couldnt devise a better tax system than we have. There may be better options. But I think before we say were going to get rid of the one we have on a date certain, we need to know what were going to replace it with. And I would implore you, if you agree with me, to make that case to your member of Congress without regard to party. Again, I dont see this as particularly a partisan issue. I just think it sounds great. I will vote for a bill to get rid of this cursed tax code. Vielen Dank. (Laughter.) Its almost irresistible, you know, but so was the sirens song. We must continue to have predictability in the investment climate. We must continue to have predictability when it comes to savings. We must continue to have a framework, which will keep us doing what weve been doing for the last five years. And that means, by the way, it means we have to continue to be open to changes in the tax law and in the way the IRS operates, and in all of these systematic things that we have to continue to modernize. Of course we must. But we mustnt buy a pig in a poke. We have to continue to proceed with discipline: scrapping the home mortgage deductions. Scrapping other middle class tax cuts without presenting a clear alternative is simply reckless for the economy, reckless for businesses, reckless for families budgets. I will not permit it if I can stop it. But it shouldnt pass in the first place, and I hope you will help us on that. (Applause.) Now, again I say, Congress should pass the IRS reforms that are before it. It should pass further tax cuts. But we should balance the budget, do nothing with the surplus until we have saved Social Security, not abolish the tax code until we know what were going to replace it with. Were going to change around here. This system has proved that we are capable of change. No one should stand in the way of constructive change, but we should stay with the plan that we know works. You look at where we are today in your business compared to where we were five years. Look at where we are today with the people that you work to serve compared to where we were five years ago. Imagine where you want to be 10 years from now. Imagine what you want the future to look like for your children and your grandchildren, to do those things, which will build that future. Vielen Dank. (Applause.) 9. REMARKS BY THE PRESIDENT IN SATELLITE ADDRESS TO PEW CHARITABLE TRUSTS quotAMERICANS DISCUSS SOCIAL SECURITYquot -- March 21, 1998 THE PRESIDENT: Thank you. Id also like to thank Rebecca Rimel. And Im delighted to join the Pew Charitable Trusts and all of you for this important discussion of Social Security. The Pew Trust has done a great service to the country for making this possible. We have to discuss how we can ensure that one of the greatest achievements of this 20th century continues to serve our people very well into the next. Before I start, let me tell you about -- a little bit about my upcoming visit to Africa. Because tomorrow, Im going to embark on the most extensive trip ever taken to that continent by an American President, where I hope to introduce Americans to a new Africa -- a place where democracy and free markets are taking hold. I hope all of you will follow my travels closely. These are good times for America. We have 15 million new jobs, the lowest unemployment in 24 years, the lowest core inflation in 30 years, the highest homeownership in our history. Last month, I was pleased to present the first balanced budget in a generation. Indeed, we can now look forward to 1 trillion of surpluses over the next decade. But I dont believe we should spend a penny of this surplus until we have saved Social Security first for the 21st century. I am very pleased with the strong support the American people have shown for this meeting and for meeting this challenge. I thank quotAmericans Discuss Social Securityquot for leading the way. For 60 years, Social Security has meant more than a monthly check in the mail. It reflects our deepest values -- our respect for our parents, our belief that all Americans deserve to retire with dignity. We cant break this solemn compact between the generations. And if we act soon -- and responsibly -- we can strengthen Social Security in ways that wont unfairly burden any generation. So I challenge my own generation to act now to protect our children, to ensure that Social Security will be there for them after a lifetime of hard work. And I challenge young people to do their part, as well, to get involved in our national effort to strengthen Social Security for the 21st century. In the coming months, the Vice President and I will attend a series of nonpartisan forums to help reach a national consensus on how to go forward. In December, Ill convene a White House Conference on Social Security, with a view to early 1999, when I hope and believe we can craft historic, bipartisan legislation to save Social Security. In the darkest days of the Great Depression, Americans had the courage to commit to a daring plan whose impact would not be fully known for a generation. In the midst of these prosperous times, we must strengthen that commitment for generations yet to come. Your views will be vital to our work here in Washington, and I look forward to hearing your comments. Vielen Dank. THE PRESIDENT: Let me try to respond a little bit to what all the folks said. Obviously, I dont know in the previous meetings exactly how much information was out there and how much not. And were in the process, as I said, of a year-long dialogue. But let me just offer a couple of observations. In 1983, there was a bipartisan commission to deal with the problem in Social Security. And they came up with a whole set of changes which included, very slowly over a period of years, raising the retirement age to 67 for people drawing full Social Security benefits --which will happen sometime in the next century -- because the average life expectancy is much longer. When Social Security was enacted and the retirement age was 65, the average American did not live to be 65 years old. So that happened. Then there was an increase in the payroll tax back in 83, and it was estimated that for a period of time Social Security would bring in more money than it paid out, and that the money could safely be pledged, in effect, to buy government bonds, to finance the deficit. And thats what has essentially happened. Now, Ive done my best to try to turn that situation around by getting us back to balance and now moving us into surplus so that we can recover some of these funds in the future to deal with the long-term challenge of Social Security. But heres the basic problem -- which Im sure you understand. In 2029, all the baby boomers will be 65 or over. Most of them will be in the retirement system. At that time, if we continue to work at present rates, retire at present rates and grow our population at present rates, there will be only about two people working for every one person drawing. Even today, very few people can actually live on only their Social Security income. But its important to remember that if we didnt have Social Security income, nearly half the seniors in this country would not be above the poverty line. So the trick is how to make this system last beyond 2029 without having undue new tax burdens on younger people who are trying to raise their children what options are out there for doing that and how can we also make it easier, as many of you said, to save for your own retirement. The one think I think is very important is that young people understand especially what the realities are. I mean, I saw a survey the other day that said that some people -- a lot of people in their 20s thought it was more likely that they would see a UFO than that they would ever draw Social Security. Now, thats not accurate. We can easily save this system. And we may be able to do a number of things, including some of the things that some of you suggested that would give a higher rate of return on the investment. But under presently conceivable circumstances, no matter what we do with the Social Security system, Americans should be saving more for their own retirement. So were working very hard right now to make it easier, for example, for more people in small businesses and more self-employed people to take out 401(k) plans to take those plans with them when they move jobs to have a system that would guarantee the security of that kind of retirement savings. And weve done a number of things in the last two years -- there is some more legislation before Congress now. And some of you in these hearings may have even greater ideas about what we can do to make it easier for people to save for their own retirement. But I always tell people that we actually have two things we have to do. We have to secure the safety, the soundness and the salvation of Social Security into the 21st century and look at all the options that have been raised here by you. But we also have to educate the American people that they must save more for their own retirement and then we have to make it easier for them to do so and to succeed in doing so. The last point Id like to make is this: because of the reductions in the deficit, the reduction in interest rates, we may have already added a few years to the life of the Social Security trust fund. We can put a lot of years on the life of the fund, we can stabilize the fund. And now that weve eliminated these chronic, huge deficits of the last decade and a half, we can set this thing right. And if we act now-- meaning early next year -- with the support of the American people across party lines and regional lines and income lines, we can make modest changes today that will have a huge impact in the next century. So the last thing Id like to say to all of you is, one of you said that you wanted us to do what we needed to do in a hurry and in a non-partisan, fair way. Thats the message I think that all of us need to hear -- all the members of Congress, all the members of our administration. We do not need to put this off. Many people are afraid that anything you do to Social Security is political dynamite. I think its worse dynamite to walk away from a problem when we can solve it with discipline, modest, far-sighted actions now that will have a huge impact 20 and 30 years from now. So I thank you. I was profoundly impressed by what you had to say, and I wish I had more time to go through all your questions. I know in two hours, Ken Apfel, our Social Security Administrator, will be on this program and hell be able maybe to pick up some of the more specific questions you asked me and others that you doubtless will have for him. And again let me thank the Pew Charitable Trust. This is a wonderful public service. 10. RADIO ADDRESS OF THE PRESIDENT TO THE NATION -- March 21, 1998 The Oval Office 10:06 A. M. EST THE PRESIDENT: Good morning. Today, I want to talk about Social Security and how all of us can ensure that one of the greatest achievements of this century continues to serve our people well into the next. These are good times for America. We have 15 million new jobs, the lowest unemployment in 24 years, the lowest core inflation in 30 years, the highest homeownership in history. Over the past five years, weve reduced the size of government and nearly eliminated the budget deficit -- even as weve expanded opportunities for education, strengthened our families, invested in our people. But this is no time to rest, its a time to build. Last month, I sent to Congress the first balanced budget in a generation. Instead of deficits, America can now look forward to 1 trillion in surpluses over the next 10 years. But as I said in the State of the Union, we must not spend a penny of this surplus until we have saved Social Security first. For 60 years, Social Security has meant more than an ID number on a tax form more than a monthly check in the mail. It reflects our deepest values -- our respect for our parents and our belief that all Americans deserve to retire with dignity. Social Security has changed the face of America. At the beginning of this century, to be old meant to be poor. As President Roosevelt said, quotThe aged worn-out worker, after a life of ceaseless effort and useful productivity must look forward in his declining years to a poorhouse. quot Even in 1959, more than a third of all seniors were poor. But today, thanks to Social Security, that number has dropped to 11 percent. But without Social Security, even in these times of prosperity, half our elderly would live in poverty. Now, if we dont act, the Social Security trust fund will be depleted by the year 2029, and payroll contributions will only cover 75 percent of benefits. We mustnt break the solemn compact between generations. We must be guided by a strong sense of duty to our parents, but also to our children. Now, if we act soon and responsibly, we can strengthen Social Security in ways that will not unfairly burden any generation -- retirees, the baby boomers, their children or their childrens children. So I challenge my generation to act now, to protect our children and ensure that Social Security will be there for them after a lifetime of hard work. I challenge young people to do their part, to get involved in this national effort to strengthen Social Security for the 21st century. Im pleased that so many Americans are already taking steps to meet this challenge. Later today Ill be discussing the future of Social Security with 1,200 Americans in a satellite meeting sponsored by the Pew Charitable Trusts. And in the coming months, the Vice President and I will attend a series of non-partisan forums that will help us reach a national consensus on how to go forward. In December, Ill convene a White House Conference on Social Security, so that by 1999 we can craft historic, bipartisan legislation to save Social Security for the 21st century. In the darkest days of the Great Depression, Americans had the courage and the vision to commit to a daring plan whose full impact would not be known for a generation. Today, in the midst of the best economy in a generation we must strengthen that commitment, our commitment, for generations yet to come. Thanks for listening. END 10:10 A. M. EST 11. ADDRESS BY THE PRESIDENT TO A NATIONAL FORUM ON SOCIAL SECURITY -- April 7, 1998 Penn Valley Community College Kansas City, Missouri THE PRESIDENT: Thank you very much, ladies and gentlemen. Good morning. Thank you, Governor Carnahan, for your leadership on so many areas and your friendship. Id like to thank the leaders of this fine institution for welcoming us here and for the mission they perform every day. I thank Senators Kerrey and Santorum for their concern, longstanding, for Social Security reform and their presence here, and Representatives Hulshof and Pomeroy, who are participating in the program, and Representative McCarthy, and also Representative David Dreier from California, who is a native of Kansas City, who are here. I thank the members of our administration who have come who will be participating: the Director of the Office of Management and Budget, Frank Raines the Deputy Secretary of the Treasury, Larry Summers the Director of the National Economic Council, Gene Sperling and the Administrator of Social Security, Ken Apfel. Attorney General Nixon, Treasurer Graeber, Insurance Commissioner Sebelius, thank you all for being here. Mayor Cleaver, thank you for hosting us. I dont know if Mayor Marinovich is here or not, but if she is, hello. (Laughter.) Id also like to thank the leaders of the AARP, including Horace Deets, and the leaders of the Concord Coalition, including Martha Phillips, for their hosting of this forum. The AARP has long been a leading voice for the elderly, the Concord Coalition long a leading voice for fiscal responsibility over the long run, and their willingness to work together is very important. Id also like to thank the Speaker of the House, the Senate Majority Leader, and the House and Senate Democratic leaders for nominating and being represented here today by the members of Congress who are on the program. As the Governor said, this is a good time for America and a time of great hope. Our economy is the strongest in a generation. Many of our social problems are on the mend. Our leadership in the world is unrivalled. Within the next year, we will have a balanced budget. And where once there were deficits projected as far as the eye can see, we now have projected surpluses as far as the eye can see -- a trillion dollars worth over the next decade. But this sunlit moment is not a time to rest. Instead, it is a rare opportunity to prepare our nation for the challenges and the opportunities of the 21st century -- or in the words of the old saying, to fix the roof while the sun is shining. In the coming century, the aging of our society will present both great challenges and great opportunities. I hope to live to be one of those people and so, to me, its a high-class problem. But because a higher percentage of our people will be both older and retired, perhaps our greatest opportunity and our greatest obligation at this moment is to save Social Security. In the State of the Union address, I called on Congress to set aside every penny of any surplus until we had dealt with Social Security first. Both parties in both chambers of Congress have joined in this call. That is the good news. Today we turn to the business at hand -- building public awareness of the nature and scope of the problem, and building public consensus for the best changes. Clearly, we will strengthen Social Security and reform it only if we reach across lines of party, philosophy, and generation. And that is one reason for the broad representation of age groups in this audience today. We have to have open minds and generous spirits. And we all have to be willing to listen and to learn. For too long, politicians have called Social Security the quotthird railquot of American politics. Thats Washington language for, its above serious debate. This year we must prove them wrong. This conference, with its wide participation, is a good start. On the political calendar, 1998 is an election year. But on the Social Security calendar, we must resolve to make it an education year, when we come to grips with the problems of the system and come together to find the answers. This issues is complicated, so we need the best ideas -- whatever their source. The issue is controversial, so we have to have a national consensus on both the nature of the problem and the direction we must take. Thats why Ive asked all the members of Congress to also host town hall meetings in their own districts. Ill be talking with several of them by satellite later today. And well hold more additional forums like this one around the country. In December, there will be a White House Conference on Social Security. In January, I intend to convene the leaders of Congress to draft a plan to save it. With this effort we can forge a national consensus, and we must. For 60 years, Social Security has meant more than an ID number on a tax form, more than even a monthly check in the mail. It reflects our deepest values, the duties we owe to our parents, to each other, to our children and grandchildren, to those who misfortune strikes, to our ideals as one America. Missouris native son, Mark Twain, once said, quotIve come loaded with statistics, for Ive noticed a man cant prove anything without statistics. quot So I thought we would begin today with a few statistics. Today, as the first chart shows, 44 million Americans depend upon Social Security, and for two-thirds of our senior citizens it is the main source of income. For 18 percent of our seniors it is the only source of income. But Social Security is more than just a retirement program. Today you can see that more than one in three of the beneficiaries are not retirees. They are children and spouses of working people who die in their prime. They are men and women who become disabled, or their children. So Social Security is also a life insurance policy, and a disability policy, as well as a rock-solid guarantee of support and old age. That is why we have to act with care as we make needed repairs to the program occasioned by the huge growth in retirees. Since its enactment over 60 years ago, Social Security has changed the face of America. When President Roosevelt signed the bill creating the Social Security system, most seniors in America were poor. A typical elderly person sent a letter to FDR begging him to eliminate quotthe stark terror of penniless old age. quot Since then, the elderly poverty rate has dropped sharply. You can look here and see that in 1959 the poverty rate was over 35 percent for retirees. In 1979, it had dropped to 15.2 percent. In 1996, the poverty rate is down below 11 percent. Now, theres something else I want to say about this. Even though most seniors need other sources of income in addition to Social Security to maintain a comfortable lifestyle: if Social Security did not exist, today half of all American retirees would be living in poverty -- 60 percent of all women. Fifteen million American seniors have been lifted out of poverty through the Social Security system. Today the system is sound, but the demographic crisis looming is clear. The baby boomers -- 76 million of us -- are now looking ahead to their retirement. And people, clearly, are living longer, so that by 2030, there will be twice as many elderly as there are today. All these trends will impose heavy strains on the system. Lets look at the next chart here. You can see that in 1960, which wasnt so long ago, there were over five people working for every person drawing Social Security. In 1997, last year, there were over three people --3.3 people -- working for every person drawing. But by 2030, because of the increasing average age, if present birthrates and immigration rates and retirement rates continue, there will be only two people working for every person drawing Social Security. Now, heres the bottom line. The Social Security Trust Fund is sufficient to pay all the obligations of Social Security -- both retirement and disability -- until 2029, after which it will no longer cover those obligations. Payroll contributions will only be enough to cover 75 cents on the dollar of current benefits. If we act now, we can ensure strong retirement benefits for the baby boom generation without placing an undue burden on our children and grandchildren. And we can do it, if we act now, with changes that will be far simpler and easier than if we wait until the problem is closer at hand. For example, a 100 billion of the budget surplus, if used for Social Security, would add a year or more to the solvency of the Trust Fund with no other changes being made. Other changes, which could be made, can be phased in over time, and keep in mind, small changes decided on now can have huge impacts 30 years from now. So how should we judge the proposals to change the Social Security system Here are principles that I believe we should follow, and theyre on the next chart here. I believe, first of all, we have to reform Social Security in a way that strengthens and protects a guarantee for the 21st century. We should not abandon a basic program that has been one of the greatest successes in our countrys history. Second, we should maintain universality and fairness. For half a century, this has been a progressive guarantee for citizens we have to keep it that way. It was not until 1985 that the poverty rate among seniors was lower than the poverty rate for the population of America as a whole. It is an astonishing achievement of our society that it is now so much lower, and we should not give it up. Third, Social Security must provide a benefit that people can count on. Regardless of the ups and downs of the economy or the financial markets, we have to provide a solid and dependable foundation of retirement security. Fourth, Social Security must continue to provide financial security for disabled and low income beneficiaries. We can never forget the one in three Social Security beneficiaries who are not retirees. And fifth, anything we do to strengthen Social Security now must maintain our hard-won fiscal discipline. It is the source of much of the prosperity we enjoy today. Now, these are the principles that will guide me as we work to forge a consensus. I hope theyre ones that all of you can also embrace. This national effort will call on the best of our people. It will require us to rise above partisanship. It will require us to plan for the future, to consider new ideas, to engage in what President Roosevelt once called quotbold, persistent experimentation. quot It will remind us that there are some challenges that we can only meet as one nation acting through our national government, just as there are others we can better meet as individuals, families, communities. This is also a challenge for every generation. To the older Americans here today, let me say, you have nothing to worry about. For you Social Security is as strong as every. To the younger people here today who may believe that you will never see a Social Security check -- indeed, I saw a poll which purported to be serious that said that Americans in their twenties thought it was more likely they would see a U. F.O. than that they would every draw Social Security. (Laughter.) That skepticism may have been well founded in the past, but just as we put our fiscal house in order, we can and must put Social Security in order. And above all, to my fellow baby boomers, let me say that none of us wants our own retirement to be a burden to our children and to their efforts to raise our grandchildren. It would be unconscionable if we failed to act, and act now, as one nation renewing the ties that bind us across the generations. Vielen Dank. (Applause.) END 11:39 A. M. CDT ADDITIONAL REMARKS BY THE PRESIDENT Penn Valley Community College Kansas City, Missouri THE PRESIDENT: Good afternoon. Thank you, Ken. As Ken said, Im speaking to you from Kansas City, where were talking about what we must do as a nation to strengthen Social Security for the 21st century, and Im looking forward to continuing to talk with you today. Let me begin by thanking Representatives Bob Borski, Ben Cardin, Nancy Johnson, Jim Kolbe, and Jerry Weller for holding these town meetings across our nation. For each of you lawmakers, these forums are not the only way youve worked to strengthen Social Security. Representatives Borski and Cardin are cosponsors of key legislation to establish the Save Social Security First Reserve Fund. Representative Borski supports saving any budgetary surplus for investment in Social Security, and I know Representative Cardin does as well. Now, Representative Johnson has been a strong advocate for SocialSecurity beneficiaries. She has urged her fellow members of Congress to continue to act with fiscal restraint as they debate what to do with the budget surplus. Representative Kolbe is one of our foremost experts on retirement and pension policy and is the sponsor of a resolution to establish a joint commission on Social Security reform. And Representative Weller has been a powerful voice for protecting the Social Security trust fund and was an original cosponsor of the Social Security Preservation Act. Together, all of you are proving that we can work in a bipartisan way to make sure that Social Security is as solid for our children as it was for our parents, and I thank you for that. As you know, this year, working together with Congress, well be balancing the budget for the first time in 30 years. We have a right to be proud of that achievement, but we must also build on it. In the State of the Union, I called on Congress to set aside every penny of any budget surplus until we save Social Security first. Social Security is deeply woven into our nations social fabric. For 60 years, its meant more than an ID number on a tax form, even more than a monthly check in the mail. It reflects our deepest values and the duties we owe to one another. Today 44 million Americans depend upon Social Security. For two-thirds of our seniors, its the main source of income. And one in three beneficiaries are non-retirees. Social Security is life insurance and disability benefits as well as a rock-solid foundation of retirement security. Today Social Security is sound, but a demographic crisis looms if we fail to act. For over the next 30 years, 76 million baby boomers will retire. By 2030 there will be twice as many elderly Americans as there are today. If we dont act now, by then payroll contributions will only cover 75 percent of benefits. Thats why Ive challenged our nation to act now to strengthen Social Security for the 21st century. Here are the principles, I want to follow for meeting this challenge. First, any reform should strengthen and protect Social Security for the 21st century. We cant abandon the basic core program thats been one of the great successes of our nations history. Second, we must maintain the universality and the fairness of Social Security. For a half-century this program has been a progressive guarantee for citizens. We have to keep it that way. Third, Social Security must provide a benefit people can count on. Regardless of the ups and downs of the economy or the financial markets, we must make certain that Social Security will provide a foundation of retirement security. Fourth, Social Security must continue to provide financial security for disabled and low income beneficiaries. We can never forget the one out of three Social Security beneficiaries who arent retirees. And fifth, any strengthening of Social Security must maintain Americas hard-won fiscal discipline, one of the main reasons were enjoying our prosperity today. These are the five principles that will guide me on Social Security, principles by which Ill judge all possible proposals. Theyre principles I believe can and should guide us all as we work to forge a national consensus for reform. Above all, I know that we can strengthen Social Security only if we reach across the lines of party, philosophy, and generation with open minds and generous spirits. For too long, politicians have called Social Security the third rail of American politics. Thats Washington language for, you cant really discuss any changes seriously. This year we have to prove them wrong. I know that on the political calendar 1998 is an election year. But on the Social Security calendar, lets all resolve to make 1998 an education year, a year we come to grips with the problems of the system and come together to find the answers. These forums are a very hopeful beginning, and Im pleased to have had this chance to start this vitally important dialogue with all of you today. This December well host a White House conference on Social Security, and in January Ill convene the leaders of Congress to draft a plan to save Social Security for the 21st century. Im confident well meet this challenge as Americans always do -- by working together, honoring our values, and preserving the solemn compact between generations that helped to build our nation. Now Id like to turn the discussion over to Congressman Borski. Bob, take it away. (Applause.) THE PRESIDENT: Thank you very much, Congressman. Let me try to go back over some of what all of you said. First of all, Congressman Cardin talked about the need to increase private saving some others did. Congressman Borski talked about the fact that there were still some people on Social Security living in poverty. Let me try to address those things together, along with some of the other concerns which were mentioned. It is true that there are still about 11 percent of our elderly people in America living in poverty. But its important to recognize that thats a lower percentage than in the overall population in America, and that its just been since 1985 that the poverty rate among seniors was lower than the overall poverty rate. Now, what can we do to make it better There have to be other sources of income. There have to be other sources of private savings. And that is -- of course, the possibility that some part of that could come out of Social Security reform is one of the things were discussing. But over and above that, Id like to point out that Congress has done a lot of work with our administration over the last five years, first of all to save 8.5 million pensions that were underwater when I took office, to stabilize 40 million others, and to make it increasingly more attractive for employees on modest wages and for small business employers to take out 401(k) plans, and then to make it easier for people to move from job to job and take their 401(k) with them. Weve also dramatically expanded the availability of IRAs. So weve tried to do some things already to help increase the ability and the attractiveness of saving, over and above Social Security. I dont think, no matter what we do with Social Security, the American people are going to have to be sensitized, the younger generation is, to do more to save for their own retirement. On the other hand, I think it would be a great mistake, even for the youngest members of these audiences today, to believe that we shouldnt preserve Social Security as a universal guarantee, because without Social Security today almost half the seniors in America would be living in poverty, even though most seniors have income over and above that. So the trick is to save Social Security, but also to have more income coming to people from private savings. Now, let me mention just one or two other things. Nancy Johnson talked about wanting -- made one Medicare statement about annual physicals. I believe that more and more, as people live to older ages and are healthier, well have to do more preventive care within the Medicare program. Nancy, you know, weve worked hard to deal with -- to have more mammographies, for example. Were doing other preventive screening now. I think the more of that we do, the more were going to save over the long run. And, more importantly, well improve the length and the quality of life. And she said, people want to know whether the seniors can count on Social Security. The answer to that is, absolutely yes. The Social Security trust fund, according to Mr. Apfel, who has got a legal responsibility to tell the truth about it, is stable until 2029. In 2029, shortly thereafter, the taxes coming in will only cover about 75 percent of our obligations. One of the reasons we want to move now is that by making relatively modest changes now we can extend the life of the Social Security trust way out beyond 2029. Can young people, the high school students here, look forward to drawing Social Security The answer to that is, they certainly can if we do our jobs here in the next several months. You know, a few years ago, I can understand your skepticism because we were running huge deficits, we were projected to have 300 billion a year deficits as far as the eye can see. Now were going to have a balanced budget sometime in the next year, and its projected well have a trillion dollars in surpluses over the next decade -- more than enough money, if we do some other things to fix the Social Security system for the younger people listening here today. But I want to say again, no matter what we do to Social Security, those of you who are 16, 17, 20, and 21, I know its hard to think about the end of your life, your later years when youre that age, but you will have to do more, through your employer or through your own individual efforts, to save for your own retirement over and above Social Security if you want to maintain your standard of living when you retire. Now, Mr. Kolbe asked a couple of questions about rasing the retirement age, and then Mr. Weller asked about specific plans. Let me say, I dont want to dodge any of that, but I think all those proposals should be out there on the table. And I think that the most important thing now is if I advocate a specific plan right now, then all the debate will be about that. The first thing weve got to do is to get the American people solidly lined up behind change. Lets stick with these basic principles Ive outlined, and I want to encourage other people to come forward with their ideas. In December, well all sit down, come up with our -- well all put our various ideas on the table, and well begin hammering out a plan that we can present in January. I still hear some new ideas almost every week coming from Democratic and Republican members of Congress and private citizens that I think should be aired. If I put a specific plan on the table now, it will undermine and weaken debate, not strengthen it. I do agree with those of you who say it ought to be possible for us to save Social Security without a payroll tax increase. I dont think we ought to automatically rule out any ideas over the next 30 to 50 years, as some would do, but I think that we plainly know that we can do this and provide for increased strength of the system without a payroll tax increase, given current assumptions. So I believe that will be possible. Now, let me just answer one last question. You asked about rating the Social Security fund. Let me say that that just depends on how you look at. The Social Security trust fund is basically a guarantee that certain obligations will be paid out to retirees, including the COLA, as well as to the disabled and to those who are the survivors who are eligible to be paid under it. Now, in 1983, when the Social Security reforms were passed, it is true that the government was collecting more in Social Security taxes than were needed in any given year to pay for that. So rather than raise other taxes to pay for other governmental expenses, the rest of the government borrowed and gave a bond to the Social Security trust fund, with the full faith and credit of the United States behind it, a legal obligation to pay back the money with interest to the Social Security trust fund when it was needed to pay out. And so there is no reason to believe that all the money thats been taken out since 1983 will not be paid back in as soon as its needed to meet the legal obligations of the Social Security trust fund. By doing that, by borrowing that money and paying it back, we didnt do anything to affect the obligations of the fund to pay Social Security recipients in the future. But we did keep the government from borrowing more money out in the private sector, competing with the private sector for money, and running interest rates up. So I think on balance its been a safe and sound thing to do, and I do not believe that the raid has occurred on the Social Security trust fund. It would be a raid if the money were not paid back when its due to be paid to you, but the money will be paid back when its due to be paid to you. And thats one of the things that we have to make sure is never interfered with, the legal obligation of the United States government to replenish that trust fund and pay back the money when its needed for the recipients. Vielen Dank. (Applause.) 12. RADIO ADDRESS BY THE PRESIDENT TO THE NATION -- April 25, 1998 The Oval Office 10:06 A. M. EDT THE PRESIDENT: Good morning. This morning Id like to talk to you about one way we are working to restore Americans faith in our national government, in our efforts to shore up Social Security and other vital benefits by cracking down on fraud and abuse. For 60 years, Social Security has meant more than just an ID number on a tax form, even more than a monthly check in the mail. It has reflected our deepest values, the duties we owe to our parents, to each other, to our children and grandchildren, to those who misfortune strikes, to those who deserve a decent old age, to our ideal of one America. Thats why I was so disturbed some time ago to discover that many prisoners who are, by law, barred from receiving most of these federal benefits, were actually collecting Social Security checks while locked up behind bars. Inmates were, in effect, under our law, getting away with fraud, primarily because it was so difficult to gather up-to-date information on criminals in our nations more than 3,500 jails. But thanks to an unprecedented federal, state, and local cooperation, as well as new, innovative incentive programs, were now finishing the job. The Social Security Administration has produced a continually updated database that now covers more than 99 percent of all prisoners, the most comprehensive list of our inmate population history. And more important, the Social Security Administration is using the list to great effect. By the end of last year we had suspended benefits to more than 70,000 prisoners. That means that over the next five years we will save taxpayers 2.5 billion -- thats 2.5 billion -- that will go toward serving our hard-working families. Now were going to build on the Social Security Administrations success in saving taxpayers from inmate fraud. In just a few moments I will sign an executive memorandum that directs the Departments of Labor, Veterans Affairs, Justice, Education and Agriculture to use the Social Security Administrations expertise and high-tech tools to enhance their own efforts to weed out any inmate who is receiving veterans benefits, food stamps, or any other form of federal benefit denied by law. We expect that these comprehensive sweeps by our agencies will save taxpayers millions upon millions of more dollars, in addition to the billions already saved from our crackdown on Social Security fraud. We will ensure that those who have committed crimes against society will not have an opportunity to commit crimes against taxpayers as well. The American people have a right to expect that their national government is always on guard against every type of waste, fraud and abuse. It is our duty to use every power and every tool to eliminate that kind of fraud. We owe it to the American people to ensure that their Social Security contributions and other tax dollars are benefiting only those who worked hard, played by the rules, and are, by law, eligible to receive them. Thats exactly what were trying to do. Thanks for listening. END 10:11 A. M. EDT 13. REMARKS BY THE PRESIDENT ON THE REPORT OF THE SOCIAL SECURITY AND MEDICARE TRUSTEES -- April 28, 1998 The Rose Garden 1:55 P. M. EDT THE PRESIDENT: Five and a half years ago, America chose a new course of fiscal discipline and ecOnomic growth, balancing our budget and investing in our people. Holding fast to that course, our people have built the strongest economy in a generation. The success of this strategy cannot be cause for complacency, however. Instead, it offers us an opportunity and an obligation to act boldly to strengthen our nation for the new century. Above all, we can harness our unsurpassed prosperity to uphold our duty to our parents, to our children and to each other through Social Security and Medicare. Ive just been briefed by the four Social Security and Medicare trustees for the administration: Secretaries Rubin, Shalala, Herman and Social Security Commissioner Ken Apfel. The trustees have issued their annual report on the future financial health of these vital programs. The trustees have told us today that the Balanced Budget Act I signed into law last year has significantly improved the financial future for Medicare. The unprecedented reforms included in that law have cut the so-called 75-year deficit of Medicare in half -- even as we have extended new preventive benefits, provided more health choices for Medicare beneficiaries, and instituted other reforms that extended the life of the Medicare trust fund for a decade. In fact, because of the bipartisan steps taken last year, the long-term prognosis for Medicare is stronger than it has been in over a decade. A bipartisan commission is now at work to craft further steps to strengthen the complex program into the 21st century. I look forward to their recommendations. The trustees also report that the strength of our economy has led to modest improvements in the outlook for Social Security. They project that economic growth today will extend the solvency of the Social Security trust fund by three more years, now to 2032. Todays report is encouraging. It shows we can honor our values and meet our most fundamental obligations, even as we balance the budget. However, these modest improvements only underscore the fundamental challenge we face. We must act to make certain that Social Security is as strong for our children as it has been for our parents. Above all, let me say again, we must save every penny of any budget surplus of any size until we have strengthened Social Security. Ive been heartened by the support this approach has received from lawmakers from both parties. But as estimates of the possible surplus have grown, the demand for new tax and spending initiatives that could upend our fiscal discipline have grown as well. Fiscal responsibility created our prosperity. Fiscal irresponsibility could undercut it. So I will resist any proposals that would squander the budget surplus, whether on new spending programs or new tax cuts, until Social Security is strengthened for the long-term. Once more I will insist that we save Social Security first. In the coming months we will work to build public awareness of the nature and scope of the challenge, and to build public consensus for solutions. We must proceed with care, remembering that Social Security offers our people not only a guarantee of retirement security, but also a life insurance and a disability insurance policy as well. Any changes we make now will be far easier than if we wait until the problems of Social Security are at hand. We will strengthen Social Security only if we reach across lines of party philosophy and generation, as we did when we drafted last years balanced budget. And if we make this year a year of education on Social Security, Im confident we will come together to take the necessary steps next year. Finally, let me say that as we continue to take the necessary steps to sustain the growth of our economy, we must look ahead to the challenges that remain. Today, once again, I have asked Congress to strengthen Americas commitment to the International Monetary Fund and the U. N. In this new era, the health of our economy will be deeply affected by the health of the world economy, and the security of the United States is clearly affected by the security of the rest of the world. Failure to act on these matters will put at risk both global economic stability, which will affect our own, and the prosperity that has widened the opportunity that we have enjoyed in this country -- the very prosperity which has made possible the progress on Social Security and Medicare that I announced today. Weve got a real opportunity here, and a rare one, to act today to provide for our childrens tomorrows. We should seize the moment, and Im confident that we will. Q Mr. President, Newt Gingrich says your administration postures more and achieves less than any administration in America history. How do you respond THE PRESIDENT: Well, I think the achievements speak for themselves. And he said a lot of things last night that I dont think it would serve any useful purpose for me to respond to. There is enough negative political talk in Washington every single day without the President adding to it. I want to focus on the challenges facing our country, and thats what I intend to do. Q Mr. President, he also said that you should tell your supporters to stop attacking the independent counsel, Ken Starr. THE PRESIDENT: I dont have -- Ive already told you, Mr. Gingrich said a lot of things last night that I dont think deserve a response, and I think it would not serve the American public well for me to waste my time doing it. I think I need to be focused on the public issues that affect them, and thats what I intend to do. Q Do you have any thought of firing Ken Starr I mean, he made that suggestion. THE PRESIDENT: Of hiring him Q Firing him, sir. (Laughter.) He said, if you want, you could do it in the morning. I mean, have you ever thought of that THE PRESIDENT: First of all, thats not what the statute says. Q Im just quoting him, sir. THE PRESIDENT: I know, but I dont want to respond to what he said. Q Are you concerned that the Canadian Prime Ministers visit is undermining your efforts to isolate Castro THE PRESIDENT: Wait, wait, Ill take both, but -- go ahead. Q Are you concerned that the Canadian Prime Ministers visit to Cuba is undermining your efforts to isolate Castro THE PRESIDENT: Well, Canada and most other countries in the world do not agree with the extent of our embargo. But Canada has been a good, loyal ally in the cause of human rights. And I talked to the Prime Minister at some length both on the telephone and when I saw him about the importance of advocating a human rights agenda, and I believe that he will do that. I think he will push for democracy and human rights in Cuba. And if he does that effectively and makes that case, the same case that President Cardoso of Brazil made when we were in Chile -- when he said that it would be possible for Cuba to preserve its social contract in health care and education and still make the transition to democracy, and thats what they should be working on now -- then it could serve our common goal. We can have different approaches to a common goal and I think we do have a common goal. Go ahead, Helen, Im sorry. Q I was asking, are you threatening a veto for any tax cuts THE PRESIDENT: I tried to make it clear that I will do my best to stop any legislation that does not honor the principle of saving Social Security first. There are lots of good ideas out there that deserve to be evaluated in the coming months about what we should do to promote long-term security and stability for not only our parents, but the younger generation, and secure Social Security, and they all ought to be debated. But when we move we ought to move in the context of Social Security reform. Then, after thats out of the way, we can see what the Treasury looks like and what else should be done. But I think we need to deal with Social Security first. And I still believe that a majority of members of both Houses in Congress and both parties believe that. I hope they do and I hope theyll stick with it. Q Do you have any ideas of how to save it THE PRESIDENT: Well, sure I do. But as I said in the first forum -- and I think Ive been proved right -- you see Senator Moynihans got a proposal out there, Senator Kerreys got a proposal out there, there are many proposals that have been offered by various Republican members of the Congress. It is important for me to keep this process going and get these ideas out there. And if I were to actually take a position now, it would undermine debate and public education and immediately focus on the specific piece of legislation, which I think is the worst thing we can do. We know -- every survey of American opinion shows that theres a far different level of understanding about this issues today even than there was a year ago. Nearly everybody knows that something substantial, really substantial, has to be done to reform the Social Security system to accommodate the baby boom generation and then, subsequent, the generations after that. And yet there is a dramatic difference of opinion across the age lines about what exactly should be done and what the facts are. So we have to -- we really need to continue this effort were making in this calendar year to educate the public and to get all the ideas out there, and to encourage all the proposals to be viewed against the backdrop of how it fits into the overall scheme of things. And then I think what youll see is -- and what I certainly hope youll see -- is very rapid action early next year. I have a plan. Were going to end up in December with a conference here, were going to meet with the leaders of both parties in Congress, and Im going to do my best to hammer out a plan, which then will be a centerpiece of what I recommend to the American people and the Congress early next year. Q Mr. President, on the Iraqi report at the U. N. -- Q May I ask on the U. N. and the IMF, sir Despite what you said, it seems unlikely Congress will pass funding this year. Can you spell out in more detail what you think will happen if theres not funding Do you have any other mechanism to give -- THE PRESIDENT: Well, let me just make it clear that Secretary Rubin has done a good job, I think, managing a difficult situation. But lets just look at Asia, for example. Theres been a lot of talk about whether the IMF should be active in Asia, what it should be doing. The United States has had a good deal of success over the last five years by exercising economic leadership to open more markets to American products and services on terms that were fair not only to ourselves, but to our trading partners. About a third of our economic growth has come as a result of that increase in trade. Just under a third of our exports are going to Asia. Now, I think, therefore, it is clear that it is in our long-term interest for the IMF to be involved in trying to stabilize those Asian economies and help them to recover. In our personal interest, how can we expect to be the leader of the world and also to benefit, personally, economically, from a system that we wont contribute to, and we wont pay our fair share on I think, virtually, every American now believes -- or at least a huge majority -- when it comes to the United Nations that in this interdependent world we should share responsibilities. I think people liked it when we shared responsibilities in Haiti, when we shared responsibilities in Bosnia. And were saying to the world, yes, we want to continue to lead the world toward peace and freedom we understand this is an important part of our security and our prosperity but were having a little political spat in the United States, and we dont think we ought to pay our dues to the U. N. We think that different rules apply to us, and we have a right not to pay our way, so we can have this fight over an issue that is unrelated to our U. N. responsibilities or our IMF responsibilities. I dont think that is a responsible, mature message to send to the world by the leading country in the world. I think that if we want to lead, we ought to lead and we ought to lead by example by paying our way. Thats what I believe. And I hope that Ill be able to prevail upon the Congress to make some progress in that direction. 14. BY THE PRESIDENT OF THE UNITED STATES OF AMERICA--A PROCLAMATION -- May 4, 1998 OLDER AMERICANS MONTH, 1998 In just over a decade from now, the first of Americas 77 million baby boomers will celebrate their 65th birthdays. Fortunately, visionary programs like Social Security, Medicare, and the Older Americans Act will help to make life easier for them as they reach this milestone. For more than 60 years, Social Security has provided our older citizens with a measure of economic security. For more than 30 years, Medicare has given them access to quality health care and the latest in medical advances. And older Americans in need of greater assistance have been able to look to programs under the Older Americans Act for the critical home and community-based care services that have enabled millions of elderly men and women to live independently. Together, these farsighted measures have played a major role in dramatically reducing the poverty rate and extending the longevity of older Americans, allowing our citizens to grow old with dignity and peace of mind. This years Older Americans Month celebration centers around the theme quotLiving Longer Growing Stronger in America. quot As we enter a new century and address the challenges of an aging America, we must commit ourselves to the health and welfare of our older Americans and to protecting and strengthening Medicare and Social Security. One of the most important achievements of the Balanced Budget Act that I signed last summer was its unprecedented reform of the Medicare program. This bipartisan effort extends the life of the Medicare Trust Fund for a decade, includes new health plan choices, and adds coverage of preventive benefits. The legislation also established the National Bipartisan Commission on the Future of Medicare to, among other things, review and analyze the financial condition of Medicare so that it remains as strong for our children as it has been for our parents. We must respond with equal resolve to the increasing strains on the Social Security system. Now that we have succeeded in dramatically reducing the Federal budget deficit, I have called on the Congress to reserve all of the anticipated budget surplus until we have a comprehensive plan to strengthen Social Security for the 21st century. We are holding a series of regional conferences throughout the year to engage in a national discussion on the future of Social Security, both to raise awareness of the problem and to allow all Americans to contribute their ideas for a solution. At the end of the year, I will host a bipartisan White House Conference on Social Security to summarize the lessons we learn from this dialogue and to map out an effective strategy that will enable us to ensure that Social Security will be there for future generations of Americans. During Older Americans Month -- and throughout the year -- I encourage all Americans to pay tribute to our older citizens and to follow their example by planning for the future. As individuals, we should take care of our health through proper diet, exercise, and appropriate preventive care, and we should plan for our future financial security by participating in retirement and savings programs. As families and communities, we can help older Americans to remain active and independent members of our communities. And as a Nation, we must recognize our obligation to those who will come after us by preserving and strengthening Medicare and Social Security for the 21st century and beyond. NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim May 1998 as Older Americans Month. I call upon Government officials, businesses, communities, educators, volunteers, and all the people of the United States to acknowledge the contributions older Americans have made, and continue to make, to the life of our Nation. IN WITNESS WHEREOF, I have hereunto set my hand this fourth day of May, in the year of our Lord nineteen hundred and ninety-eight, and of the Independence of the United States of America the two hundred and twenty-second. WILLIAM J. CLINTON 15. REMARKS BY THE PRESIDENT ON PROJECTED BUDGET SURPLUS -- May 26, 1998 The Rose Garden 11:32 A. M. EDT THE PRESIDENT: Thank you, Jack. And let me thank the other members of the economic team. This is of course very good news for the American people, as the chart shows. Now its official that this year, well ahead of the most ambitious schedule, America has balanced the budget. In fact, as the chart shows, the achievement of the American people will not stop there. OMB predicts that the budget surplus will be 39 billion this year, the largest dollar surplus in our history, the largest surplus as a share of the economy in more than 40 years. America can now turn off the deficit clock and plug in the surplus clock. Given the speed with which our nation has reached this remarkable milestone, it is perhaps all too easy to forget how hard it was and how far weve come. Just six years ago, because of the drag of deficits, our people were running place, our nation was falling behind, interest rates were high and so was unemployment. On the day I took office the deficit was projected, this year, to be 350 billion. How did this greatest projected deficit in history turn into the greatest projected surplus The old-fashioned way, we earned it. Our nation earned it as a result of hard work by the American people and, as the Vice President said, we earned it here in Washington with the help of two visionary actions in Congress. First, the courageous vote by the Democrats in 1993 in the midst of withering, extreme criticism that led to a cut in the deficit of 90 percent. And then the truly historic bipartisan balanced budget agreement passed by Congress last year that finished the job. I think it would also be wrong if I didnt mention, as Mr. Lew did, that the reinventing government efforts headed by the Vice President played a major role. We not only have the smallest government since the Kennedy administration, with more than 300,000 fewer people, we also have savings in excess of 130 billion during the budget period as a result of those efforts. And Mr. Vice President, I am very grateful for what you have done. Now that were about to have the first surplus since Neil Armstrong walked on the moon, we face a crucial decision about what to do with it. We can use these good times to honor those who put in a lifetime of work and prepared for the future retirement of the baby boomers by saving the Social Security system for generations to come. Or we can give into the temptation in this election year to squander our surpluses the moment they start coming in. I think the choice is clear. We got to where we are today with 4.3 percent unemployment, more than 15 million new jobs, the lowest inflation in over 30 years, low interest rates, high growth, the highest homeownership in history by doing what was right for the American economy over the long run. That is what we should do now. Social Security has been a cornerstone of our society for the last six decades, but the present system is not sustainable as we look forward to the full retirement of the baby boom generation. We have to protect it for the 21st century. I was deeply heartened after I spoke about this at the State of the Union, that there were broad public statements of support from the leaders of both parties in both Houses in Congress about saving Social Security first. However, in recent weeks, senior Republican leaders in the House of Representatives seemed to have retreated from that pledge. In this election year, some now want to raid this surplus for initiatives instead of preserving every penny of the surplus until we strengthen Social Security. We cannot ignore the long-term challenge, which we have a unique opportunity and responsibility to meet now, in favor of short-term schemes that, however popular in the moment, could compromise our future. Let me be clear: I will oppose any budget that fails to set aside the surpluses until we have strengthened Social Security for the 21st century. Let me also be clear that does not mean that in the future there could never be a tax cut. It simply means that we need to know how were going to pay for the challenges of reforming Social Security. Once we know that -- and we should know that sometime next -- I would hope early next year because of the work being done this year -- then we can have a debate about what ought to be done if there are funds that still are unaccounted for and unobligated. Today, our economy is the envy of the world. But the progress was not predestined nor is its future guaranteed. We cannot abandon the strategy of fiscal discipline and investments in the future which has brought us to this moment. Instead, we should work together across party lines to maintain fiscal responsibility, to save Social Security first, to prepare for an even brighter future. Again, let me thank the members of the economic team, those who are here and those who proceeded them, for their work in this remarkable effort and every member of Congress whose votes have contributed to it. Vielen Dank. Q: Mr. President, over the weekend, those same Republican leaders-- I defer to Sarah. Q: -- overcome the disruption which we face with the computers as millennium starts April 1, 99. That will disrupt all -- PRESIDENT CLINTON: Well, let me say that were very concerned about that, Sarah, And I asked John Koskinen, formerly a deputy at OMB and before that, a man who had a very distinguished career in the private sector, to come back into public service to supervise and coordinate our efforts to deal with the computer 2000 problem. Its not something that grabs the headlines everyday but it is, in fact, a profound challenge, not only for the United States but for every country -- which is every country now -- that has extensive reliance on computers. And there are a lot of very complex questions. There are computer hook-ups where people at both ends have computers that can be programmed to move easily to 2000, but theres something in the connection in between which wont. This is a very complicated problem. Interestingly enough, we discussed it in some detail at the G-8 meeting in England recently, and I can tell you that we are working very hard on it. Were working very hard, first of all, to monitor the progress of every government agency to see that theyre ready, and some are doing better than others because some have more profound challenges than others. And, secondly, we want to do what we can to be supportive of the private sector in the United States and their efforts to make these adjustments. But it is a very big problem. And I would urge -- since youve asked the question, I would urge everyone in America who hears this exchange to make sure that they have done everything they can do within their own business sectors to be ready for this. And we also agreed, by the way, when I was in England to work with other countries so that we can help share information and do everything we can do make sure that when the new millennium starts, its a happy event and not a cyberspace headache. Q: Mr. President, over the weekend Republican leaders called on you to postpone your trip to China, or at the very least, not have a welcoming ceremony in Tiananmen Square. What will you do, sir THE PRESIDENT: I think it would be a mistake to postpone the trip to China. Our partnership with China has succeeded in persuading the Chinese not to transfer missile technology and other dangerous materials to nations that we believe should not have them. We have seen some advances on the human and political rights fronts recently. We have worked closely with them in North Korea. Today, we are working with them to try to diffuse the tension and prevent a new nuclear race in South Asia. So I think we have a broad range of issues to deal with, and I think we have enough evidence now to justify the partnership that weve had. So I believe we ought to go forward. 16. REMARKS BY THE PRESIDENT TO SAVER SUMMIT -- June 4, 1998 Hyatt Regency Hotel, Washington, D. C. THE PRESIDENT: First let me say a special word of thanks to the members of Congress who are here and especially those who sponsored the legislation which created this summit. I thank Governor Allen and Secretary Herman for doing their sort of bipartisan introduction thing. I couldnt help wondering what all of us looked like up here to all of you. (Laughter.) I bet we look like a bunch of school boys in the spelling bee dying for the recess bell. (Laughter.) But this has actually been better -- its been enlightening for me. The most encouraging thing of all that was said to me, from a purely selfish point of view was when the speaker said, if I got to be 50 I could look forward to living another 30 years. Yesterday I was in Cleveland and I went to an elementary school to see some work that some of the AmeriCorps volunteers are doing, and I was shaking hands with all these little kids. And it really is true that they say the darndest things. And this young boy was six or seven years old, maybe, a little bitty boy, and he said, quotAre you the real Presidentquot And I said, yes. And he said, quotAnd youre not dead yetquot (Laughter.) And I realized -- I didnt know what he meant. First I thought hed been reading the local newspaper here. (Laughter.) And then I realized that to him the President was George Washington or Abraham Lincoln and he actually thought it was a qualification of the job that you had to be deceased to hold it. (Laughter.) It was an amazing encounter. (Laughter.) But now, Ive been reminded of the actuarial tables and Im ready to go back to work. (Laughter.) Let me say just a couple of words by way of introduction. Most of what should be said has already been said, and very eloquently. And I thank all the previous speakers. But I would like to make one point that has been alluded to, but I want to try to drive it home. Were living in a time where we have the lowest unemployment rate in 28 years, the lowest welfare roles in 27 years, the lowest crime rates in 25 years, the lowest inflation rate in 32 years, the smallest government in 35 years, and the highest home ownership in history. And were about to have a balanced budget and a surplus for the first time in 29 years. This has given this country enormous self-confidence. We know that when we work together we do get things done. We do not know when well have a time like this again. All of our reading of human history teaches us that nothing ever stays the same forever. If we cant deal with this issue now, when will we ever deal with it We have an obligation to deal with this challenge, and deal with it now. And we have an opportunity to do so. (Applause.) The balanced budget has freed up capital. Its led to an increase in -- the efforts in fiscal responsibility have led to a significant increase in our national savings rate, even as individual savings have gone down. And thats been very good to this point because its enabled us to have lower interest rates, higher investment, and higher growth. And you see here the relationship between savings and investment and growth, which has already been alluded to. So weve had an increase in net national savings and a decline in the budget rate and its led to more growth. But the problem is that we have to have more personal savings as well. And we have to deal with the problems presented especially by Social Security and with the fact that there are 50 million Americans without private pensions, and by the fact that very few people are doing any savings above Social Security in whatever pension they have or dont have for their own retirement. So this is a deeply personal issue that Senator Lott, I thought, grippingly discussed, and its also a big issue for our country. We have the opportunity and the obligation, I believe, to deal with a lot of our other long-term challenges, but a lot of our other long-term challenges affect our children and affect children who have a poverty rate much higher, almost twice as high, as senior citizens. Unless we deal with this issue, unless we nail down Social Security for the 21st century and stabilize it, and unless we deal with the need for more private pension coverage, and unless we deal with the need for more savings, it will also -- make no mistake about it -- it will impair in a direct financial way our ability to fulfill our responsibilities to our children who are living in difficult circumstances and now we can help to chart a different future, and eventually it will undermine the self-confidence were now enjoying and it will make people very short-sighted again when we could be dealing with these issues that will shape the future 10, 20, 30, 50 years from now. So I think its a very, very important thing. And the answer to Senator Lotts question, lets begin with Social Security. And I want to thank him for what he said and for what he said to me in private, and to both the Speaker and Senator Lott and the other Democratic leaders of the Congress. I believe, while I think this savers summit should keep meeting, I dont believe we should wait until all of your meetings here in advance to deal with the Social Security issue. The demographics are too clear. We now have until 2032 before it starts to run a deficit, but thats very misleading. With modest changes now, we can have huge impacts later. If you wait, the closer you wait, the more dramatic the changes you have to make just to pay the bills. So my view is that we should continue to have these forums around the country, these bipartisan forums we should continue to solicit advice but our goal ought to be to have the Congress take up Social Security reform as the first order of business early next year and finish in the first half of 1999, saving Social Security for the 21st century, so that we baby boomers do not bankrupt our children in their ability to raise our grandchildren. And my commitment is to try to get that done on that timetable. (Applause.) In order to do it, I have to say I still believe that we have to resist two temptations with the budget surplus. The first temptation is to say, well, its large and projected to be growing -- and maybe Ive just been in executive positions too long in public life, but those projections dont mean a lot because sometimes they dont pan out. Now, weve been real lucky for the last five years, all our projects have been too conservative and weve done better than weve projected. But I think the first thing we have to do is to resist the tendency to spend the surplus on spending our tax cuts until we have dealt with the Social Security issue. The second thing I think we have to do is to resist the temptation to take one thing, even it seems like a very good thing to a large number of people, like the individual accounts, and deal with that without knowing how youre going to deal with the whole system. So what my view is -- that we ought to say that were going to pass comprehensive reform. And I dont rule in or out any ideas here on that. Thats not my purpose. And I solicit all of your ideas. But I just think it would be a big mistake, knowing what the magnitude of the money were talking about is, to miss this chance to say were going to hold on to this surplus until we pass comprehensive reform. Then if there is money over and above that after we do this --I hope in early 1999 -- we can have a wonderful, old-fashioned American political debate about what the best way to proceed is -- whether we should cut taxes, invest the money, pay down the debt -- we can have that debate. But I think we should commit ourselves again to the idea that saving Social Security first is the right policy for America and the right thing for the 21st century. And I hope we will do that. (Applause.) Now, let me say, in addition to that, we have some very specific proposals which I think respond at least in part to the concerns which were raised by earlier speakers on pension matters. The Vice President mentioned the Retirement Protection Act, which passed, I believe, with an almost unanimous vote in Congress in late 1994, to protect the pension benefits of more than 41 million workers. But I want to build on that. In the balanced budget proposal that I have presented to Congress, I proposed to offer tax credits to small businesses who start pension plans to help them deal with the problems, the costs that you mentioned of starting the programs up and getting the advice. It could work, I think, in the first year, about 1,000 for small business, which should cover the costs involved in the start-up. It would encourage employers who dont provide pension plans to give workers the option of contributing to IRAs through payroll deductions, the budget would. The budget also cuts the vesting period for 401(k)s from five years to three years. Eventually -- Ill make a prediction -- it may not happen in our time here, but eventually we will have to figure out how to have people paying, investing continuously, no matter how frequently they change jobs, because, if you look at all modern advanced societies, you have a higher and higher percentage of people doing part-time work, you have a higher and higher percentage of people doing more than one job, and you have more rapid turnover. You have a very high rate of vitality and activity in the business community. It means a lot of places being started, but the more businesses that start, the more youre going to have that also wont go on, that wont make it. And in the increasingly churning, dynamic world, we are going to have to focus very carefully on that. This is something I believe, by the way, that I think the Saver Summit could really work on in the years ahead because of the congressional legislation, you know, having you meet again in a couple of years and then again in a couple of years after that. But for right now -- we know enough now to know we can preserve financial stability in a responsible way and cut this vesting period from five to three years. And I hope very much that well be able to do that in the budget discussions with the legislation that passes this year. Finally, theres an easy to administer, defined benefit plan thats part of our budget proposal, and I hope the Congress will pass that. Also, in an effort to encourage more workers to enroll in the 401(k)s that are already available to them, we have made it clear that employers can automatically enroll workers in the 401(k) plan unless the workers themselves choose to opt out. Now, currently, most companies require the employees to opt in to the 401(k) plans, a process that takes some time and some paperwork. Companies that have cut out the paperwork with automatic enrollment policies that then the employees can opt out of report participation rates of about 90 percent, as compared to an overall participation rate of 67 percent for companies offering 401(k)s. So thats something that you will discuss. It sounds like a small thing, but its one thing that can really affect a very large number of people in getting them into the business of saving for their own retirement. Let me just say, lastly, we all know we have to do more about personal savings. We have worked together in a bipartisan way to expand the availability of IRAs and the attractiveness of them so that people could invest in IRAs and then withdraw tax free if the money were used for education purposes or health emergencies or other things of that kind. But we need, clearly, to do more. And this is an area where, quite apart from the 401(k) issues and the pension areas, I invite you to give your best ideas to the administration and to the Congress. Because -- let me just give you an idea of what a difference it could make. A person who could afford to save 5 a day for 40 years would have 300,000 by the time he or she retired, at just a modest return, above and beyond Social Security and pension. Young people have a unique opportunity. If we can get it into their minds early, if you save 2,000 a year beginning at age 25 and you retire at 65, you have 328,000. If you wait until youre 45 to start, you only have 78,000. So that really matters. And let me finally say that -- let me end where I began. This is a moment of real self-confidence for our country. People have the emotional space to think about the long-term. If you just think about your own businesses, your own families, raising your kids if your child is sick and youre really worried, and youre child is 10 years old, its hard to work up the emotional space to think about where your child is going to college and how much it will cost. If you think you cant pay the electric bill at your business, its pretty hard to think about whether youre going to buy a piece of expensive equipment next year that will make you productive five years from now. Events intrude on nations just as they do on people in their individual, personal, and business lives. We have been given a gift, and we have to use it. This is a wonderful moment, but it is a moment of responsibility that we dare not squander. Some of you probably know this, but it makes the point, finally, that if we have a saving nation, it means we have a nation of people who think about the future and who believe in it. When Benjamin Franklin died -- you know, a penny saved is a penny earned -- he left 2,000 pound sterling to the cities of Boston and Philadelphia, with only one caveat -- nobody could spend any of it for 200 years. By 1990, the 2000 pound sterling had matured into 6.5 million -- quite conservatively invested. By leaving that money to people 200 generations removed from himself and his family -- I mean, 200 years removed -- Benjamin Franklin made a simple, powerful, eloquent statement that he believed in the promise of America, he believed in the future of America, and he was prepared to contribute to it in a truly astonishing way. Well, we dont have to ask the American people to save for 200 years, but we do have to make sure they can think about tomorrow and prepare for it. And this is a magic moment to do it. Vielen Dank. (Applause.) 17. REMARKS BY THE PRESIDENT VIA SATELLITE TO THE REGIONAL CONGRESSIONAL SOCIAL SECURITY FORUMS -- July 27, 1998 Albuquerque, New Mexico THE PRESIDENT: Thank you, Ken. First of all, let me say Id like to thank the Older Womens League who are watching in Chicago Congressman Mike Castle of Delaware and his group Congressman Earl Pomeroy of North Dakota, whos had such a leading role in this effort, and his group and Congressman David Price of North Carolina. I thank you all for hosting this forum. Our economy is the strongest its been in a generation. We have the lowest unemployment rate in 28 years, the lowest crime rate in 25 years, the lowest percentage of our people on welfare in 29 years, the first balanced budget and surplus in 29 years, the lowest inflation rate in 32 years, the highest home ownership in history, and the smallest national government in 25 years. But this sunlit moment is not a time to rest. Instead, it offers us a rare opportunity to prepare our nation for the challenges ahead. And one of our greatest challenges is to strengthen Social Security for the 21st century. As you know, I believe strongly that we must set aside every penny of any budget surplus until we have saved Social Security first. Fiscal responsibility gave us our strong economy. Fiscal irresponsibility would put it at risk. And whether we save Social Security first I will not be moved, but on how we save Social Security-- that will require us to have open minds and generous spirits. It will require listening and learning and looking for the best ideas wherever they may be. We simply must put progress ahead of partisanship. The stakes couldnt be higher. For 60 years, Social Security has reflected our deepest values -- the duties we owe to our parents, to each other and to our children. Today, 44 million Americans depend upon Social Security. For two-thirds of our seniors it is the main source of income. And nearly one in three beneficiaries are not retirees, for Social Security is also a life insurance policy and a disability policy, along with being a rock-solid guarantee of support in old age. Today, Social Security is sound, but a demographic crisis is looming. By 2030, there will be twice as many elderly as there are today, with only two people working for every person drawing Social Security. After 2032, contributions from payroll taxes will only cover 75 cents on the dollar of current benefits. So we must act, and act now, to save Social Security. How should be judge any comprehensive proposals to do this I will judge them by five principles. First, I believe we must reform Social Security in a way that strengthens and protects a guarantee for the 21st century. We shouldnt abandon a basic program that has been one of Americas greatest successes. Second, we should maintain universality and fairness. For a half-century this has been a progressive guarantee for our citizens. We have to keep it that way. Third, Social Security must provide a benefit people can count on. Regardless of the ups and downs of the economy, or the gyrations of the financial markets, we have to provide and dependable foundation for retirement security. Fourth, Social Security must continue to provide financial security for disabled and low-income beneficiaries. We can never forget that one in three Social Security beneficiaries are not retirees. And fifth, anything we do to strengthen Social Security now must maintain our hard-won fiscal discipline. It is the source of much of the prosperity we enjoy today. Now, all this will require us to plan for the future, to consider new ideas, to engage in what President Roosevelt called quotbold, persistent experimentation. quot I thank you for doing your part and for participating in this important national effort to save Social Security. Now Id like to hear from all of you. I guess we should start with Betty Ongeley of the Older Womens League in Chicago. Then well go onto Representative Mike Castle in Wilmington, Delaware then to Representative Earl Pomeroy in Bismarck, North Dakota and then to Representative David Price in Raleigh, North Carolina. So lets begin. THE PRESIDENT: Thank you. Ill be glad to comment on that. Lets go now to Congressman Pomeroy in North Dakota. And again let me thank you all for the leading role youve played in this right from the beginning, and for your efforts to increase retirement benefits generally for seniors. THE PRESIDENT: Well, first of all, let me say that were having this forum today in Albuquerque, New Mexico, with a number of experts whose opinions range across the spectrum from believing that we should have a large portion -- some believe almost half of the present payroll tax -- converted over a period of 20 or 25 years into individual investment accounts, to those who believe maybe you should have a small percentage tax of payroll tax or a small annual payment to people for individual investment accounts, to those who believe that the Social Security trust fund itself should invest, beginning with a modest amount, a limited amount of its funds to increase the rate of return. So let me try to answer all these questions. Let me begin by going back to Betty Ongeleys question about the impact on women. First of all, I think its quite important that we maintain in the Social Security system the life insurance benefits. Because so many women are the primary home raisers of their children -- even if theyre in the work force -- I think maintaining this life insurance benefit for the children when the wage earner is killed or disabled is terribly important. And that is, I think, a very important thing. Now, the second thing I would say is, I personally believe were going to have to do some things beyond the Social Security system to help women to deal with the fact that they live longer and that today their earnings base is not as great because theyre out of the work force for an average of 11 years. On the question of getting pay up, I think that there is legislation in Congress that would deal with the equal pay issue, which would solve some of the other problems. And I would like to see more aggressive work done on that, to do even more work to enforce the equal pay requirements of our law for women. So, if I could just leave that there. Now, let me move into the questions raised by the other people who called. And I want to give Ken Apfel a chance to talk, especially if I make a technical mistake. In various ways, you all asked the same questions about the private accounts. First of all, lets back up and realize why were dealing with this. By 2030, there will be only two people working for every one person drawing Social Security. The average rate of return on the investment any worker makes on Social Security will go down as more people live longer and more people are in the retirement funds, because government securities, while theyre 100 percent certain, dont have a particularly high rate of return, like any kind of 100 percent certain investment. So the question is then raised, well, if -- over any 30- or 40-year period, an investment portfolio that, lets say, was 60 percent in stocks and 40 percent in government bonds, or 40 and 60 the other way, would have an average rate of return far higher. And even after you take account of the stock market going down and maybe staying down for a few years, shouldnt we consider investing some of this money, because, otherwise, well have to either cut benefits or raise taxes to cover them, if we cant raise the rate of return. So -- and I think those are the three main options. And younger people especially, many of whom are used to doing things on their own, accessing information over the Internet, and also have only experienced a growing stock market, which has been growing since 1980, and which, since 1993, has virtually tripled, have been especially interested in these individual accounts. So let me just try to deal with these issues. First of all, what about individual accounts and how could we set them up There are, I think, basically two basic options that have been options that have been advanced. One is, should we take a one percent, or two percent, or some percentage of the payroll tax and, instead of putting that into Social Security, put it into a mandatory savings account for workers and then they can invest it in stocks if they like Whats the downside of that The downside of that is twofold. Basically, your investments might lose money and you might not be so well-off with them when you retire, so that the combination of your investment fund, plus your guaranteed Social Security fund might be smaller than would have otherwise been the case. The second issue thats related to that is that if individuals are investing like this, the administrative costs of managing it can be quite high -- much, much higher than Social Security -- so that even though you might earn a higher rate of return, a lot of it would be taken right back from the people who are handling your accounts. So we have to work through that. What about having the government do it What about having everybody have an account -- a number, in effect, attached to their name for this money, but having some public source invest this money Congressman Castle asked a question, as well as Congressman Price, and I think Mr. Weber in North Dakota asked this question. Now, the virtue of that is that if the government were making these investments, you could do two things. Number one, youd have much lower administrative costs. Number two, you could protect people who retire in the bad years, because you would average the benefits. And as I said, as we know, over any 30- or 40-year period -- and the average person will work 40 years -- the average rate of returns are higher. So you could always reap the average rate of return. Now, if you were a particularly brilliant investor, youd get less than you would have if youd done it own your own, but on the other hand, you wouldnt get burned. And if you happen to be among unfortunate people who retired in a long period where the market wasnt doing well, like it was in between 1966 and 1982, youd still be held harmless for that because of the overall performance of the market. People worry about having the government invest that much money. There may be a way to set up an independent board immunized from political pressure to do it, but sill, that would be a whole lot of money coming from, in effect, one source, going into the stock market. So were looking at the experience of Canada and some other countries to see what we can learn about that. And were also looking at the experience of Chile, as a place where theyve used individual accounts, to see what the pluses and minuses are. I think -- what I would like to say is, if we go down this road, we need to make sure that behind this theres still a rock-solid guarantee of a threshold retirement that people will be able to survive on. And then we can debate the relative merits of these individual accounts versus individual guarantees within these bigger units. But I think Ive given you the main arguments, pro and con, of both the individual accounts and the government units -- government investment -- Im sorry. Let me just add one thing, if I might, because I think it was Mr. Weber who talked about a lot of -- either that or Congressman Pomeroy talked about a lot of the people in North Dakota that depend upon Social Security have very modest incomes from the farm or from other sources. One kind of modified proposal that has been debated is the question of whether, instead of dedicating a percentage of payroll to an individual account we should use the surpluses over the next several years to guarantee workers, lets say, 500 a year. If you did that, obviously, as a percentage of income -- and that would amount to quite a bit after a few years of getting that 500 check in an investment account -- obviously, as a percentage of income, the impact on lower-wage workers would be far greater than the impact on higher-income workers, because the 500, and then the 1,000, and then the 1,500 and 2,000 and so on would be a much bigger percentage of a lower-wage workers income than just giving everybody one percent of payroll. So the dollars would be much bigger if your payroll was bigger. So thats another thing weve been asked to consider by various people, whether or not the fairest way to do it would be to just give a cash grant into the account of each Social Security-covered person who is paying in. And thats also being debated. And you all may have an opinion about that you want to forward to us. THE PRESIDENT: I would also emphasize -- and, again, I dont want to further complicate this discussion -- but I believe we have to do two things. I think we have to reform Social Security in a way that makes it viable and available for the baby boom generation when all of us get into retirement age, and it doesnt bankrupt our children or our childrens ability to raise our grandchildren. But over and above that, we have to do some other things, which a number of the members of Congress who are here in New Mexico and out there at these forums have been interested in -- to increase the options for retirement savings beyond Social Security. Right now, Social Security is responsible for lifting about half the American senior population out of poverty, who would be in poverty without it. But most seniors do not rely solely on Social Security. And more and more seniors, as we live longer, will need other sources of income, as well. So were going to work hard on this, but were also working on legislation to provide other avenues of retirement savings over and above this. Thank you very much, all of you, for joining us. Commissioner Apfel and I are going to go back to work here in Albuquerque and were going to try to listen to the arguments of these experts on the questions youve asked: Should the government invest in private securities, in the stock market, or should Social Security funds be invested in the stock market And if so, should it be done by a public entity or should it be done by individuals with individual accounts And well try to get the pros and cons out and make sure theyre widely publicized, and we welcome your views, as well. Vielen Dank. END 11:55 A. M. MDT 18. RADIO ADDRESS OF THE PRESIDENT TO THE NATION -- September 19, 1998 The Oval Office 10:06 A. M. EDT THE PRESIDENT: Good morning. I want to talk to you this morningabout what I believe we must do to continue building a stronger Americafor our children and our grandchildren in the 21st century. Were in a time of great prosperity, and even greater promise. For nearly six years Ive done everything in my power to create theconditions for that prosperity and to make sure all Americans can sharein it. Today, we have nearly 17 million new jobs, the lowestunemployment in 28 years, the lowest inflation in 32 years, the smallestpercentage of our people on welfare in 29 years, the lowest crime rate in 25 years and the highest homeownership in history. All Americans have a right to be proud of what together we have achieved. But we cant let these good times lull us into a dangerous complacency. The turmoil we see today in economies all around the world reminds us that things are changing at a rapid rate. We cant afford to relax. Instead, we must use our new prosperity, the resources it produces and the confidence it inspires to build a more prosperous future for all our people. In just 12 days now we will have the first balanced budget and the first budget surplus since Neil Armstrong walked on the moon in 1969. This remarkable achievement is the product of hard work by the American people, by lawmakers of both parties who put progress ahead of partisanship. We have waited 29 years for this moment. Now we must ask ourselves, what should we make of it. Above all, I believe we must use this moment of prosperity to honor the duty across generations and strengthen Social Security for the 21st century. Seventy-five million baby boomers will be retiring over the next two decades. We must act now across party lines to make Social Security as strong for our children as it has been for our parents. In my State of the Union address I said we should reserve every penny of that hard won surplus until we had taken the steps to save Social Security first. At the same time, I did propose tax cuts for education, for the environment, to help families pay for child care. But not a penny of these cuts comes out of the surplus. Every one is fully paid for in my balanced budget. My plan also provides tax relief to families while preserving the strength of the Social Security system. That is very important. When all the baby boomers retire there will only be about two people working for every person drawing Social Security. We can make moderate changes now and make sure that those who retire will be able to retire in dignity, without imposing on, burdening or lowering the standard of living of their children and grandchildren. Unfortunately, the Republicans in Congress have a different idea. The black ink in the budget hasnt even had a chance to dry -- indeed, it hasnt appeared yet. But they already want to drain the surplus to fund a tax plan before we make the most of our opportunity, our historic opportunity to save Social Security. Ive already made it clear that if Congress sends me a bill that squanders the surplus before we save Social Security, I will veto it. But Republicans in the House of Representatives are proceeding anyway, and will try to pass their tax bill next week. I believe strongly that this is the wrong way to give American families the tax relief they deserve, the wrong way to prepare our nation for the challenges of the future. So today I say again to the Republican leadership: go back to the drawing board. Look at the targeted tax cuts for working families I proposed. Scholarship for the first two years of college and college credits thereafter IRA incentives to save for children. They all take effect this year, theyll all be on your tax forms in April and all of them are fully paid for. So I say to Congress send me a plan like that, a plan with targeted tax relief while preserving all the surplus until we have saved Social Security. Send me a plan that rebuilds our crumbling schools, that helps working families with child care, and supports small businesses in getting pension plans -- and pay for it. Send me a tax cut that keeps us on the path of fiscal responsibility, that honors our obligations to our parents and our children. If Congress sends me a tax cut plan like that, Ill gladly sign it. This is a time of great hope for our nation but a time where continued global economic growth demands continued American economic leadership. Fiscal responsibility has created our prosperity, and fiscal irresponsibility would put it at risk. Lets do the right thing to provide for the security of our parents and opportunity for our children into the 21st century. Thanks for listening. END 10:12 A. M. EDT 19. REMARKS BY THE PRESIDENT ON INCOME AND POVERTY REPORT -- September 24, 1998 The Rose Garden 12:20 P. M. EDT THE PRESIDENT: She was terrific, wasnt she Lets give her another hand. I thought she was great. (Applause.) Congressman Cardin, welcome. I know youre proud of your constituent here. Jessica, welcome. Were glad to see you. I think Congressman Blagojevich is here. We welcome him, along with Senator Ephraim Gonzalez, who is the President of National Hispanic Caucus of State Legislators and Councilman Robert Cantana of Buffalo. Let me once again thank Monique for her remarkable statement and her even more remarkable life. Im delighted to be joined here by our economic team -- by Erskine Bowles and Secretary Rubin, Secretary Herman, Gene Sperling, Jack Lew, Janet Yellen, Larry Summers. Their tireless, often literally sleepless work has been very instrumental in sparking and maintaining what soon will be the longest peacetime boom in American history. Officials of the Census Bureau who are here today, I want to thank all of you. Were going to be talking a little bit about some Census Bureau statistics. Sometimes we take your hard work and statistics for granted. The fact is that you ensure that our democracy is truly representative. And let me say in that connection once again, Congress must not hamstring the Census Bureaus efforts to maintain the most up-to-date, accurate scientific methods to produce the year 2000 census. They deserve the chance to succeed. (Applause.) Monique Miskimon has shown us today once again that every American counts. That means that every American deserves to be counted. Now, before I get into the details of the very positive economic report, which Monique and her daughter so vividly represent, I think we all want to say just a few words and reflect on the powerful impact of Hurricane Georges. In the Caribbean islands, businesses and homes have been swept away tragically, many lives have been lost. Meanwhile, the projected track of the storm places the hurricane center over or near the Florida Keys late tonight or early tomorrow morning. As we speak, were helping the people of Florida prepare for the hurricane. Weve already sent assistance to Haiti and the Dominican Republic. Obviously, were working with the officials in Puerto Rico and the Virgin Islands. James Lee Witt, the Director of the Federal Emergency Management Agency, has informed me that FEMAs Region Six Emergency Response Team arrived in Tallahassee, Florida, at 10:00 a. m. this morning. Here in Washington, the FEMA Emergency Support Team is operating at Level One, its highest level, on a 24-hour basis. Our support teams and our prayers are with those in the Caribbean as they begin to rebuild, and those in the Florida Keys as they brace for the impact of the storm. Now, as President, from my first day here, I have done my best to fulfill a commitment I made to the American people: first of all, to restore the reality of the American Dream -- of opportunity for all responsible citizens, of a community in which we all count and work together -- and secondly, to reclaim the future for our children, to strengthen our country for the century ahead. To accomplish that mission, we began first with an economic strategy to shrink the deficit and balance the budget, to invest in the education and skills of our people, and to expand the export of American goods. The census report released this morning represents one more years worth of compelling evidence that this economic strategy is working, and that there are lots more people out there like Monique Miskimon. The report shows that last year the income of the typical American household grew at nearly twice the rate of inflation. Since we launched our economic plan in 1993, the typical familys real income has risen by more than 3,500. Thats an extra 3,500 that hardworking families can put toward their childrens education or a down payment on a first home. Income for typical African American and Hispanic families increased by more than 1,000 last year alone. This report also shows that our growing economy is giving more and more families a chance to work their way out of poverty. The poverty rate fell to 13.3 percent, and while we still have plenty of room for improvement, the African American poverty rate fell to another record low. Hispanic poverty saw the largest one-year drop in two decades. Child poverty has dropped in the past four years, more than in any four-year period in the last three decades. And the Earned Income Tax Credit, which Monique spoke of a moment ago, has raised more than 4 million people out of poverty in the last year alone. The report this morning shows that economic growth continues to raise incomes, lift millions out of poverty, and extend opportunity. It also shows that we have more to do. Since 1993, every income group has benefitted from our nations economic growth and the lowest 20 percent of our people in terms of income have had the highest percentage increases. Thats the good news, after over 20 years of increasing inequality. But that inequality is still too high, and it simply means there are too many American families out there working hard, doing everything we could possibly ask of them, and still having a hard time getting ahead. We have to use our prosperity and the confidence that it inspires to help our hardest pressed families and our hardest pressed communities to ensure economic growth for all Americans. The most important thing we have to do, of course, is to maintain the economic strategy that got us here in the first place -- above all, the strict fiscal discipline that has given us low interest rates, low inflation, big investments and more jobs. Exactly a week from today, we will have the first balanced budget and surplus since Neil Armstrong walked on the moon in 1969. Unfortunately, this week in the House of Representatives, the Republicans are moving forward with a proposal that drains the new surplus to pay for their tax plan. We can cut taxes. Indeed, my balanced budget includes targeted tax cuts for child care, for education, for environmental clean-up. But tax cuts must be paid for in full if we are to expand opportunity in the years to come. I say again, we have been waiting for 29 years to see the red ink turn to black. We have a huge baby boom challenge coming when all the baby boomers retire. Social Security, as presently constituted, cannot sustain that retirement. We have to reform Social Security if we want to have it for our parents -- thats me, when the baby boomers retire -- without undermining the standard of living of our children and grandchildren. So I say again, let us not get into this surplus we have worked for 29 years for -- or weve waited for 29 years for and worked for 6 years for. Lets dont get into that and spend it in an election year tax cut until we have saved Social Security for the 21st century, for the sake of our children and our grandchildren. (Applause.) Second, we have to continue to invest in our people and lift them all up. I was deeply disappointed this week when 95 percent of the Republicans in the Senate voted not to raise the minimum wage. To reject an increase in the minimum wage when there are still so many people working full-time and raising children in poverty, when the unemployment rate and the inflation rate is so low, I believe is a mistake and sends the wrong signal to the American people. I thank the 95 percent of the Democratic Caucus in the Senate who voted for the increase in the minimum wage. Working Americans deserve it. Im disappointed, with only a week left in the fiscal year we rejected this, and I havent quit fighting for it. I think eventually we will get it in the next several months if we have to wait until next year, we will get it. But Im also disappointed -- as I said, a week from today we end the fiscal year and we start a new one. And theres still been no action in the Congress on our vital education investments. Indeed, what action there has been in the House of Representatives has been negative, has been a setback for education. Congress should work with us to enact my plan, paid for in the balanced budget, to reduce class size to an average of 18 in the early grades to hire 100,000 teachers to teach those children in smaller classes to rebuild or to construct or repair 5,000 schools so our kids will have good, adequate, safe schools to attend to hook up all of our classrooms -- all of them, even in the poorest neighborhoods -- to the Internet by the year 2000 to improve early literacy by funding the program to send volunteers in to make sure that every eight-year old can read to lift our childrens sights with voluntary national standards and clear means of measuring them. Now, if we hope to maintain our economic growth well into the next generation, we have to give every American child a world-class elementary and secondary education. So I say again, weve been here for months and months theres just a week left in the budget year -- lets finally have action to improve our public schools and give all of our kids a world-class education. (Applause.) The third thing Id like to say is we have to continue to lead in the global economy if we want the American economy to continue to grow. Were enjoying unsurpassed economic prosperity, but all of you read the papers every day, you see the news at night, you know there are troubles elsewhere in the world. You know our friends in Asia and Russia are facing great turmoil. You know were trying to keep our big trading partners and friends in Latin America from having the negative effect of that turmoil reach them even though they are pursuing good policies. Thats why its important for Congress to fund our Americas share of the International Monetary Fund, because the International Monetary Fund helps the countries that are helping themselves to return to growth, and serves as an insurance policy against having the financial crisis spread to the countries that are doing the right thing and keeping Americans at work by buying our products. Again I say, there is no reason not to do this. Weve only got a week left in the budget year. Weve been talking about it all year long. The problem has only gotten worse. It is time now to say, were doing this because its what America owes as the world leader and more importantly, were doing it because it is absolutely necessary to keep American economic growth going. (Applause.) Finally, let me say that with just a week left in this budget year, Id still like to see the Congress pass a decent patients bill of rights, one that covers -- (applause). Our bill would provide protections to all Americans, simple ones. If you get in an accident, you can go to the nearest emergency room, not be hauled to one halfway across town. If your doctor tells you you need to see a specialist, you can see one. If it comes down to a dispute about whether a medical procedure should or should not be applied, the decision should be made by a doctor, not an accountant. Your medical records ought to be protected in privacy. If your employer changes health care providers, it shouldnt affect you if you happen to be in the middle or a pregnancy or a chemotherapy treatment, or some other thing that would be entirely disruptive and dangerous and damaging to your health care if you had to change doctors in the middle of the procedure. Now, we do that for everyone. The House passed a bill on a partisan vote, completely party-line vote, that doesnt protect 100 million people and doesnt provide any of those protections to the people that are covered. The Senate Majority Leader actually shut down business in the Senate a few days ago to keep them from voting for it, so they wouldnt be recorded -- they wouldnt be recorded as killing the patients bill of rights -- but they could kill it and still satisfy the insurance companies that are doing their best to do it. Theres still time. We havent broken for the election yet. We can still do the right thing by the American people. But we have to think about it, we have to focus on it, and we have to put our priorities where they ought to be. I think its worth fighting for the patients bill of rights in the closing days of this congressional session. (Applause.) Again, I want to thank the economic team here and our supporters in the Congress, including those who are here today, for giving more Americans a chance to live the story that Monique has told us about. I want to thank her for coming today and bringing her beautiful daughter. I know we all wish them well. Our prayers are with the people who are about to be affected and those who have been affected by the hurricane. And I ask that all of us focus on using these last days of this congressional session to think about the American people, to think about our responsibilities, to think about what got us here over the last six years, and instead of departing from it, to bear down and build on it. That is my goal and thats what we ought to do. Vielen Dank. (Applause.) Q: Mr. President, do you see any way out of an impeachment inquiry THE PRESIDENT: Well, let me answer you this way: the right thing to do is for us all to focus on whats best for the American people. And the right thing for me to do is what Im doing. Im working on leading our country, and Im working on healing my family. And if you look at what we announced today, what does it tell you It proves, number one, that the course we have followed has been the right course for America. Thats what it proves. After six years, it cant be an accident anymore. But the second thing it proves is that it is utterly foolish for people to be diverted or distracted from the urgent challenges still before us. I told you that we had a record -- a record low in African American unemployment and poverty a record low in the poverty rate for children, of African American children. Do you know what that record low is Its about 39 percent. In other words, its breathtakingly high. Thats just one statistic. So what does that tell me It tells me that the right thing to do is, if we all put progress over partisanship, put people over politics, put the American people first -- what would we do Well, we would keep the budget balanced. We would save Social Security before we squandered the surplus. We would improve our schools. We would clean up our environment. We would pass the patients bill of rights. And we would keep the economy going. Thats what we would be focused on. Thats what I am focused on. Thats the way out. The way out here -- and the only way out is for people in Washington to do what the folks in America want them to do, which is to take care of their concerns, their children, and their future. Thats what I mean to do, and Im going to do my best. (Applause.) THE PRESIDENT: Good morning. Yesterday, after nine days of difficult negotiations on Marylands Eastern Shore, Israeli and Palestinian leaders signed an agreement that restores hope for peace in the Middle East. It strengthens security, increases cooperation against terrorism, and brings both sides closer to the day when they can live together as free people. Keeping the peace process on track will require continued courage by Israelis and Palestinians in the months ahead. But this agreement shows what is possible when the will for peace is strong. And Im proud that, together, we were able to make real progress. America will continue to work for a just and lasting peace in this land that is holy for so many people throughout the world. Now, Id like to talk with you about an historic opportunity we face here at home. Ten days from now, the American people will head to the polls for one of the most important elections in recent years. You will help select a Congress that will determine whether we seize this moment of prosperity to save Social Security for the 21st century. Earlier this month we celebrated Americas first budget surplus in 29 years. But even before the black ink was dry, some in Congress were determined to squander our surplus on an unwise election year tax plan. But we turned back these efforts. The balanced budget I signed this week protects our hard-won surplus until we save Social Security first. As a result, the new Congress will have the best chance ever to ensure that the baby boomers can retire in dignity, without imposing unfair burdens on our children. As we begin the process of reform, I have proposed five core principles to guide our way: First, we have to reform Social Security in a way that strengthens and protects the system for the 21st century. We simply cannot abandon a program that represents one of our countrys greatest successes. Second, we should maintain universality and fairness. Third, Social Security must provide a benefit people can count on, regardless of the ups and downs of the economy or the financial markets. Fourth, Social Security must continue to provide protection for disabled and low-income Americans. And finally, any reforms we adopt must maintain our fiscal discipline. Today Im proud to announce the next important step well take in putting these principles to work. On December 8th and 9th, well hold the first-ever White HouseConference on Social Security to help pave the way toward a bipartisan solution early next year. Unfortunately, some in Congress already may be backing away from this historic opportunity. Just last week, the Senate Majority Leader said he may not be willing to join me in our efforts to save Social Security. That would be a grave mistake. As with so many other long-term challenges, if we act now, it will be far, far easier to resolve the problem than if we wait until a crisis is close at hand. I believe we must save Social Security and do it next year. I pledge to work with anyone from any party who is serious about this task. We cannot let partisanship derail our best opportunity to strengthen Social Security for the 21st century. For more than 60 years now, Social Security has formed the sacred bond between the generations. In the words of one elderly woman three generations ago, quotit is a precious shield against the terror of penniless, helpless, old age. quot If the Congress you elect in 10 days chooses progress, it can strengthen that shield for generations to come. But if it chooses partisanship, this historic opportunity will be lost. You have the power to shape a Congress that will keep our Social Security system as strong for our children as it was for our parents. You have the power to elect a Congress pledged to save Social Security first. Thanks for listening. 21. REMARKS AT ROUNDTABLE DISCUSSION ON WOMEN AND RETIREMENT SECURITY -- October 27, 1998 THE VICE PRESIDENT: Ladies and gentlemen, on behalf of the President I want to welcome all of you. Please be seated. I want to acknowledge members of the Presidents Cabinet and team here: the Secretary of Labor, Alexis Herman the Deputy Secretary of Labor, Kitty Higgins the Director of Office of Personnel Management, Janice Lachance the Chair of the Council of Economic Advisors, Janet Yellen the Director of the National Economic Council, Gene Sperling and the Deputy Director, Sally Katzen also the Deputy Social Security Commissioner, Jane Ross and the Deputy OMB Director, Sylvia Mathews. And were pleased to be joined by Congressman Ben Cardin and also Betty Freidan and other distinguished guests who are present with us today. Were very grateful to all of you for being here. And in particular we are focusing today on what to do to strengthen Social Security for the 21st century and to strengthen it especially for the millions of American women who depend on it and who depend on it more than men. We would like to say a special word of thanks to those who are joining us from around the country by way of satellite here today. I guess thats the satellite hook-up there. We welcome people from Boston, New York, Philadelphia, Atlanta, Chicago, Dallas, Kansas City, Denver, Seattle, Birmingham, and Richmond, California. Were honored that youre here. And, incidentally, we had first hoped to hold this important roundtable last week. And as you may have noticed and you may remember, President Clinton had a sleepless night for about 40 hours there with Prime Minister Netanyahu and Chairman Yasser Arafat and their delegations. They were putting the finishing touches on that agreement that takes such an important new step towards peace in the Middle East. And because of that this was rescheduled. Mr. President, I have a feeling that not only is everybody here understanding of that, but, again, congratulations and thank you for that important agreement. (Applause.) THE PRESIDENT: Thank you. THE VICE PRESIDENT: So were picking up today where we left off back a week ago. And it reminds me of how many important things have taken place right here in this room. Nearly a month ago I was proud to stand here in this room with President Clinton for the announcement that America had posted its first budget surplus since Neil Armstrong walked on the moon. And at that point, and actually, long before that surplus materialized, it seemed like everybody had a different idea about what should be done with the budget surplus. But President Clinton ended that debate with four memorable words in his State of the Union address at the beginning of this year -- save Social Security first. That expression has forestalled the spending or wasting or use in any way of that budget surplus until we can save Social Security first. It would have been easy to join in with those who had risky budget-busting tax schemes or some other idea for using that money. But for the generation of Americans who saved Private Ryan, President Clinton committed us to saving Social Security first. And thats what were going to do with the budget surplus. That leadership couldnt have come at a better time, because over the next decade projections show more than 1.5 trillion in surpluses for Social Security. But consider this: 75 million baby boomers are going to be retiring over the next 15 to 20 years. Today there are more than 3 people working for each Social Security beneficiary, and by the year 2030 there will be only 2 people working for each Social Security beneficiary. Thats just the fundamental fact of life that we have to adjust to. And it constitutes a serious challenge. By reserving the surplus until we fix Social Security, we can meet that challenge in a way that preserves the dignity of our seniors in retirement. We all know that its a lifeline for millions of Americans and especially women. And older women, on average, get more than half of their income from Social Security. For 25 percent of elderly women, a Social Security check is the only income they receive. And of course, this is not just a story of numbers and statistics, it is also one of faces and families. And I want to acknowledge and introduce to you the people who will be joining us on this panel today: Bernice Myer, from Seattle. Bernice works with older Americans and disable seniors, helping them with personal care, shopping and cleaning. She expects to receive a small pension from a previous job when she retires in 15 years, but her current job doesnt have a pension plan. Shes depending on Social Security to be a major part of her retirement. Were also joined by Molly Lozoff from Miami Beach. Molly is a retired real estate broker and a 77-year-old widow who receives a Social Security check each month. When she was 35, her husband had an incapacitating stroke which left him unable to speak for the rest of his life. She became his legal guardian and in the process of getting her own life together, she discovered that there were programs that provide assistance for the minor children of disable parents -- government programs. She believes that the assistance that she received back then enabled her children to become the successful adults that they are today. Also with us today is Wilma Haga from my home state of Tennessee. Shes from Bristol, the birthplace of country music -- where the Carter family made their first recording, Mr. President. (Laughter.) And Wilma is a 76-year-old retired cafeteria worker with a small pension. Eight years ago her husband died, and she receives his Social Security check each month. Wilma says that she could not survive without Social Security and would do anything to help people understand how important it is to women like her. And there are lots of them. Were also joined by Lucy Sanchez from right here in Washington, D. C. And over the course of 8 months her husband had heart surgery twice. To care for her husband, Lucy was able to use our Family and Medical Leave law. Today Mrs. Sanchez says, quotIf I had to go to work I would have been useless. Family and Medical Leave allowed me to do what I had to do because, no matter what, family comes first. quot And youre going to see how that ties in to this event here today in just a minute. Now, finally, we are joined by Tyra Brown, a 20-year-old psychology major at Howard University, originally from Oklahoma City. Tyra is an honor student, a Ronald McNair scholar, and an AmeriCorps member. Her mother passed away when Tyra was only 15 years old. Thanks to Social Security, Tyra was able to receive Social Security survivors benefits until the age of 18. The message of these stories is clear: Strengthening Social Security is not just a fiscal responsibility, it is a profoundly moral responsibility. It is about preserving our oldest and most cherished values. Nobody understands that better than President Bill Clinton. For decades now, few elected officials have been willing to take on this important challenge. Everybody here has heard Social Security referred to as the third rail -- people were afraid to touch it. Well, President Clinton believes that its so important to Americas future we cant afford not to take it on. And actually, if you study these numbers and statistics, you come away immediately with the conclusion the sooner the better, because the sooner we do take it on, the easier it will be to fix it in the right way. His leadership is making an enormous difference for our seniors and for all generations. Ladies and gentlemen, it is my great pleasure and honor to present our President, Bill Clinton. (Applause.) THE PRESIDENT: Thank you, ladies and gentlemen. Welcome to the White House. I want to thank the Vice President, the members of the administration, Congressman Cardin, all the panelists who are here, the satellite audience at the 12 other sites across our country. Id like to say a special word of appreciation and welcome to Betty Freidan, who has written with such insight and appreciation for the challenges women face as they grow older. Were here to talk about the special impact of the challenge to Social Security on the women of the United States. I would like to put it in, if I might, a larger context. Six years ago, when the Vice President and I came here, we brought a new vision of government against a backdrop of a 290 billion deficit and the kind of problem were here to talk about today that we knew was looming in the future. We believed that we could give the American people a government that would live within its means, but at the same time invest in and empower our people. It led to an array of new policies in education and the economy, the budget, the environment, in health care, in crime, welfare reform. Indeed, it led to the very effort to reinvent government, to use the Vice Presidents phrase, and the great effort that he made in that regard. But over the last six years we have been more active, among other things, in family matters and health matters, and a whole range of domestic areas, while giving the American people the smallest federal establishment since President Kennedy was here. And the results, I think, have been quite good for our people, in terms of prosperity, opportunity is abundant, communities are stronger, families are more secure. This year, all year long, I have told the American people and done my best to persuade the Congress that it is terribly important to build on this prosperity and its newfound confidence to meet the remaining challenges this country faces on the edge of a new century -- particularly, and perhaps most important, the need to save Social Security and to prepare for the retirement of the baby boomers. On December 8th and 9th we will hold the first ever White House Conference on Social Security, with a goal of paving the way toward a truly bipartisan national solution early next year. Social Security, as many of you know from your own experience, and as all our panelists will be able to discuss in one way or the other, is more than a monthly check or an ID number. It represents a sacred trust among the generations. It represents a trust not only between grandparents, parents and children, those in retirement and those that work, but also the able-bodied and those who are disabled. It is our obligation to one another and it reflects our deepest values as Americans. And it must maintain a rock-solid guarantee. We have a great opportunity to save Social Security. As all of you know, just this month we closed the books on our first balanced budget and surplus in 29 years. It is the product of hardworking Americans who drive the most powerful economic engine our country has had in a generation the product of hard choices by lawmakers who put our nations long-term economic interest very often above their own short-term political interest. It is an achievement that all Americans can be proud of. But we have to ask ourselves to what end has this been done. Of course, balancing the budget is essential for our own prosperity in this time of intense global competition. But it also gives us a chance to do something meaningful for future generations by strengthening Social Security. And doing that will help to keep our economy sound and help to keep our budget balanced, as we honor our duty to our parents and our children. As the Vice President said, soon there will be many more older Americans. I hope that he and I will be among them. (Laughter.) Two of the 75 million baby boomers who will be retiring over the next 30 years. By the year 2013, what Social Security takes in will no longer be enough to fund what it pays out. And then well have to dip into the trust fund as provided by law. But by 2032, as this chart on the left makes clear, the trust fund itself will be empty and the money Social Security takes in will soon be only enough to pay 72 percent of benefits. Now, thats the big reason I wanted to reserve the surplus until we decide what to do about Social Security. Every American must have retirement security in the sunset years. We plan for it, count on it, should be able to rely on it. That holds true for women, as well as men. But in the case of women, Social Security is especially important. On average, women live longer than men women make up 60 percent of all elderly recipients of Social Security -- 72 recipients over the age of 85, as you can see here. For elderly women, Social Security makes up more than half their income. And for many it is literally all that stands between them and the ravages of poverty. You can see what the poverty rate is for elderly women -- its 13.1 percent with Social Security without it, it would be over 50 percent. Study after study shows us that women face greater economic challenges in retirement than men do, for three reasons. First, women live longer. A woman 65 years of age has a life expectancy of 85 years. A man 65 years of age has a life expectancy of 81 years. Second, for comparable hours of work, women still have lower lifetime earnings than men, although were working on that. Third, women reach retirement with smaller pensions and other assets than men do. Now, Social Security has a number of features to help women meet these challenges. And we have done a lot of work over the last six years to try to help make it easier for people to take out their own pensions and to make it more attractive for small businesses to help to provide pensions for their employees, which could have a disproportionate impact, positive impact for women in the years ahead. But the hard fact remains that too many retired women, after providing for their families, are having trouble providing for themselves. Now, we have worked these last six years to expand pension coverage, to make the pensions more secure, to simplify the management of pension plans. Weve worked for the economic empowerment of women, to end wage discrimination and strengthen enforcement of the Equal Pay Act. But we must do more until women earn 1 for every 1 men earn for the same work and today were only three-quarters of the way there. We must work harder to give retired women the security they deserve that they could not get for themselves in the years they were working. Today, I am announcing two concrete steps we must take. First, I propose that workers who take time off under the Family and Medical Leave Act should be able to count that time toward retirement plan vesting and eligibility requirements. Sometimes the few months spent at home with a child mean the difference between pension benefits and no pension benefits. That is precisely the wrong message to send to people who are trying to balance work and family. Millions and millions of people have now taken advantage of the Family Leave Act when a family member was desperately ill or a baby was born. None of them should have lost time for retirement vesting and eligibility benefits. Second, I am proposing that families be given the choice to receive less of their pension when both spouses are living, leaving more for the surviving spouse if the breadwinner dies. That should help keep elderly widows out of poverty in their twilight years. And the poverty rate for single women, for elderly widows is much higher -- almost -- about 40 percent higher than that 13 percent figure there. These proposals build on the work of Congressman David Price of North Carolina and Senator Barbara Boxer and Senator Carol Moseley-Braun. They will make a difference for our mothers, our wives, our sisters and some day for our daughters. But let me emphasize again the most important thing we can do for future generations is to strengthen Social Security overall. When I said in my State of the Union address I would reject any attempt to spend any surplus until we save Social Security, I knew the congressional majority wanted to drain brilliance from the surplus even before it appeared on the books, much less having the ink dry. And not just this year, but permanently. Now, I am not opposed to tax cuts, and my balanced budget we have tax cuts for education, for child care, for the environment, and for making it easier for people to get pensions. Im just opposed to using the surplus to fund tax cuts until we have used all we need of it to save the Social Security system for the 21st century. The threat of a veto put a stop to that effort in this last Congress. The next Congress will be the Congress I call upon actually to move to save Social Security for the 21st century. It should not be a partisan issue, and we should not have another partisan fight to save the surplus until we reform Social Security. But recently, Republican leaders are still saying the surplus should go to fund tax cuts first, and the Senate Majority Leader has suggested that he may not even be willing to work with me to save Social Security. Well, I hope thats just election season rhetoric. After all, they were willing to work with the insurance lobbyists to kill the patients bill of rights. (Laughter.) And then they worked with the tobacco companies to kill our teen smoking bill to protect our children from the dangers of tobacco. And they were happy to work with the special interest who were determined to kill campaign finance reform. I think the Senate Majority Leader will be able to find time to work with me to save Social Security. (Applause.) And I certainly hope so. I say this partly with a smile on my face, but in dead seriousness. This issue will not have the kind of money behind it that the tobacco interests can marshal or the health insurance companies can marshal against the patients bill of rights. And everybody here with an opinion is going to have to give up a little of it if were going to make the right kind of decision to get there. This is the sort of decision that requires us to open our minds, open our eyes, open our ears, open our hearts, think about what America will be like 30 years from now, not just what its like today, and imagine what it will be like when those of us who arent retired will be retired and our children will be raising our grandchildren -- increasingly, when those of us who are retired will be looking after our great-grandchildren as the life expectancy goes up and up. This requires imagination. And it will be hard enough under the best of circumstances. It would be foolish to take this projected structural surplus that has been built in for six hard years of effort and squander it, until we know what it will cost to have a system that all Americans, without regard to party, can be proud of. Now, this is an issue that offers us that kind of choice between progress and partisanship moving forward, turning back putting people over politics. In 11 days we will elect a Congress that will determine the future of Social Security. We need one that is 100 percent committed to saving Social Security first to putting the long-term security of the American people -- our parents and our children -- ahead of the short-term politics. Now let me say I am eager to hear from our panelists. I think its important to note on this day with this subject that one of Americas first great advocates for Social Security was the Secretary of Labor, Frances Perkins. As Secretary Herman would tell you, Frances Perkins name now graces the Department of Labor building, just down Pennsylvania Avenue. She was the first woman to hold that office, or any other Cabinet office. Years later, on the 25th anniversary of Social Security, Frances Perkins looked ahead and said this, quotWe will go forward into the future a stronger nation because of the fact that we have this basic rock of security under all our people. quot That foundation, that rock, was laid by Frances Perkins and Franklin Roosevelt. It is up to all of together, women and men, to make sure that rock will hold up all our people in the 21st century. Vielen Dank. (Applause.) Molly, why dont you go first Tell us your story and your familys experience with Social Security. FRAU. LOZOFF: Thank you, Mr. President. Mr. President, Mr. Vice President and my fellow Americans, the month was October and the year was 1955. I was a happy 33-year-old mother of four wonderful children. I was a stay-at-home mother. My husband was a successful realtor until that fateful day, when he suffered a severe stroke that left him paralyzed an unable to express himself for the remaining 14 years of his life. After the initial shock, I realized that I had to get busy and prepare myself for a career in order to be able to provide for my children and my disabled husband. It took about a year for me to become his legal guardian, handle his finances and earn my real estate license. During that time I learned of this new Social Security program, which started in 1956 -- fortunately for me -- that offered disability insurance for minor children of a disabled provider. It was such a relief to know that my government was going to help me survive this crisis. I believe to this day that this assistance enabled my children to confront this severe family problem and allowed them to become the fine, successful, caring human beings they are today. Without this assistance I could not have fared as well. It gave me the solid base that I needed to build my familys future. Many years have passed, and at this time in my life I find that I am once again turning to my government for help through the Social Security program. The amount that I receive every month enables me to provide for my basic living expenses. I know quite a few of my contemporaries in Florida who could not go on without their Social Security benefits. For some its literally life-sustaining. Im so proud we have a President who feels a tug on his heart for our plight, the plight of the elderly. We should strongly support his efforts to use some of the budget surplus to ensure that the Social Security system will survive and continue to help those in need, well into the next millennium. Thank you, Mr. President, were so proud of you. (Applause.) THE PRESIDENT: Id just like to say -- I think I speak for everyone in this room, I guess some bad things happen to everybody in life and a lot of us were probably feeling nonetheless that we cant imagine how we would have dealt with what you have obviously dealt with so magnificently. And if Social Security helped, then I think we can all be grateful that it did. We thank you very much. FRAU. LOZOFF: There are many people in my place, I know, today. THE VICE PRESIDENT: Mr. President, I refer to Tyra Browns story earlier. A lot of people commonly think of Social Security as a retirement program. And they dont stop to think that out of the 44 million Americans that receive Social Security, one-third of them are either survivors or disabled Americans. And a lot of them, some 3.8 million beneficiaries, are children and almost 2 million of them are survivors of deceased parents. Tyra, could you tell us your story, which represents a story that millions of others -- similar to that of millions of other children. FRAU. BROWN: Thank you, Mr. President, thank you, Mr. Vice President, for inviting me here today. Its good to know that you both are working hard and using your leadership to help strengthen Social Security. My name is Tyra Brown, and Im from Oklahoma City, Oklahoma. Im currently a junior here at Howard University, a historically black university, in Washington, D. C. While in school Im working with AmeriCorps as a jump-start member, and I work in a Head Start center tutoring preschool children who are struggling with literacy skills and social development. Im working toward the day when every child will enter prepared to succeed. After I earn my Bachelors Degree at Howard I plan to go on to graduate school and become a child psychologist. I enjoy working with children who need a helping hand, and I believe that as an American family, we all need to do what we can to help each other out. That is why I think Social Security is so important. It was there for me and I want it to be there in the future. Most people think of Social Security as a retirement program, and it is. But what a lot of people dont know is that the Social Security system also helps out millions of people like myself who are not retired. When I was 15, I had a terrible experience -- I lost my mother to heart failure. And she worked very hard for me all of her life to provide for me, and after she passed my grandmother became my legal guardian. And we received Social Security survivors benefits to help us with some of the expenses. It wasnt easy, but the Social Security really helped, and we could count on that income to be there every month. And I dont think we could have made it otherwise without it. When my mom was alive she paid into the Social Security system, and although she wasnt able to get her retirement benefits, her Social Security contributions did help provide for me when I needed support. And Im not alone. There are millions of other survivors out there who count on Social Security every month. Now as Im beginning to think about my own future, I think about that guarantee. As I pay into Social Security I want to be sure that it will be there for my retirement or in case of any other tragic circumstances, guaranteed. I know that Social Security needs to be strengthened and I know that there has to be a way to do it to preserve that vital guarantee. Thats why, Mr. President, I was very glad to hear your State of the Union address. We need to save Social Security first. It touches millions of lives in America. It has touched mine, and I hope it will be strong for generations to come. Vielen Dank. (Applause.) THE PRESIDENT: We have heard from a student and a retiree. Now Id like to call on someone who is working and planning for retirement. And Id like to mention something that I mentioned in my opening remarks, to which the Vice President also referred, and that is that 60 percent of women workers, both part - and full-time, work at jobs that do not provide a pension. And as I said, we have worked very hard on this for the last six years and weve tried to come up with all kinds of proposals that would facilitate more employers providing pensions. And we will do more on that. But meanwhile, we are where we are. Most Americans, even on Social Security, have some other source of income. But as you see from the chart, over half the women in this country who are retired would be in poverty but for Social Security. So Id like for Bernice Myer to talk a little bit about the challenges that shes facing and how shes trying to deal with the prospect of retirement in the job that shes in. MS. MYER: Thank you, Mr. President and Mr. Vice President. Im Bernice Myer. Im a home care aide in Seattle, Washington. Im 49 years old and have been working in service professions all of my life, all low paid. I feel that my work is very valuable to the people I serve and to society as a whole. I enjoy my work and have appreciated the opportunities Ive had in each position. One of my concerns as I grow older is where will -- a little anxiety as to whether or not I will have money available for my living. I have no pension plan currently and live basically paycheck to paycheck. So Im very dependent upon what will happen. Im a member of the Office and Professional Employees Union and am working to increase wages for home care aides. And we see some progress, but its slow and I doubt that the progress I would like to see will happen in my lifetime. I think this important work and I hope that eventually pay received will match the value of the work. I want to thank the President and the Vice President for this table conference, lifting up Social Security benefits. Im depending on them being there when I retire. (Applause.) THE PRESIDENT: One of the questions that well be asked to deal with, that most younger people who are interested in this will ask us to deal with, is the question of how much flexibility individual citizens should be given, and should there be alternative investment strategies for the Social Security fund. There will be a lot of these questions asked by young people, particularly. And I think it is important to keep in mind that there is always a balance between greater flexibility with the prospects of greater return on the trust fund and rock solid certainty. And, ironically, to people in Bernices position, shed actually be better off with both, because if you dont have a pension you need a higher income out of Social Security, but if you dont have a pension you have very little room for risk. And there are -- if you think about it, our society for decades, by and large, made a bargain with our critical service workers -- the people that pick up our trash every day, or the police that patrol our streets, or the teachers that teach our children -- we say, okay, well get you the best pay we can, but even though youll never get rich, at least youll have a pension as well as Social Security. Now theres been an explosion, in the last 10 years especially, in America, of trying to provide more direct services to people in-home. And most everybody believes thats a good thing -- it promotes more independence, a greater sense of security of the people receiving the services. But there are huge numbers of Americans, like Bernice, out there who are performing critical services and taking our country in a direction most people who have studied this believe we need to do more of. And one day eventually theyll all be covered by some kind of an organizational system that will give them a decent retirement plan. But, meanwhile, youve got people like Bernice that are out there doing things that we should have been doing as a society long before, that are making this a better place, that dont yet either have the bargaining power, the political support or whatever necessary to have the pensions that they need -- either that or the economics of reimbursing for the service are not sufficient to support a pension. It is wrong to let people like her do all this work for us and not at least be able to rely on an adequate Social Security system in retirement. This is not an isolated story. This is a person who represents a growing number of Americans, not a shrinking number of Americans, doing something that most experts believe is making us a better society. I didnt want to take so much time, but I just think its very important that you understand we picked these people -- theyre very compelling, I think, all of the panelists but theyre also representative, not isolated cases. And I think its important to think about this when we make these plans for the future. (Applause.) THE VICE PRESIDENT: And, Mr. President, women are more likely to be in that kind of situation. And I know youve been saying this for a long time, and Ben Cardin has been saying it for a long time, and others -- but I remember not too long back when I had the privilege of going to one of the forums on Social Security, this one at Rhode Island. Carolyn Lukensmeyer (phonetic) and her colleagues were hosting these events all over the country -- I think you went to two or three of them. And before that event, the women members of the caucus in the House and Senate all wrote a letter the me saying, we see youre going up there to Rhode Island, heres some facts we want you to keep in mind. I knew a lot of them, but I must say, they brought out some facts that really deserve a lot more attention. Of course, all of them are on the table here today. But they have to do with the fact that women do live longer and pay in less for a lot of historical and life reasons. Anyway, Wilma Haga here is representative of some people that we have with us today who can sort of tell us about what it would be like without it. I believe I mentioned shes from Bristol, Tennessee -- (laughter.) MS. HAGA: You did. THE VICE PRESIDENT: Wilma is 76 and her husband died eight years ago. And Social Security has made a great big difference. In our part of the country, Wilma, and all over the country, really, it used to be that older widows were very likely to be extremely poor. Many counties used to have what they called poorhouses -- before my time, but Ive surely heard about them. And without Social Security theyve estimated that more than 60 percent of all older widows would be living in poverty. Now, in your life you have not had to face those circumstances mainly because of Social Security. Tell us about that. FRAU. HAGA: Okay. Mr. President, Mr. Vice President, Im so happy to be here, and thank you for inviting me. I just feel real honored and excited to be with you all today. I am 76 years old and my husband, Alvin, and me had two sons -- Mike and Thomas. Al and I both had a high school education, but we werent able to go to college. But we were absolutely determined that our two boys would go to college. For 28 years I worked in the school cafeteria, and every week Id put my paycheck in the bank to take care of those boys education. So my husband was an electrician, but he also worked three or four other jobs so that we could save all the money that we could for them. Im pleased that both of my sons did get a college education. Mike, in fact, is a seminary graduate. He works for you, Mr. President. (Laughter.) He works as an appointee at the Department of Agriculture and Im so proud of him. And Thomas, my oldest son, has a very successful business in Texas, investment business. Im proud of both of them. As a widow on a modest income, I am keenly aware of the importance of Social Security. When I retired, after almost 28 years, I received a pension of only 200 a month from the school system. My monthly Social Security benefit totaled all of 300. Fortunately, my husband was still alive, and so I was not completely dependent on that 500 for all my income. I dont know how I would have survived with that money alone. My husband died in 1991, Mr. President and Mr. Vice President. When that happened, my Social Security benefit was replaced by his. I got a raise of nearly 600 a month at a time that I really needed it. Now, between my monthly Social Security check of 915 and my pension, I can live very well. In fact, Im proud that I can live independently and productively without any assistance from either one of my sons. There are millions of widows all over America just like me -- women who didnt earn all that much. But we now have the blessing of knowing that our years of hard work paid off, both in the success of our children and in having our government guarantee that we will have a secure old age. I owe it to my sons and my grandchildren to make sure that they have this same kind of security. Again, Mr. President and Mr. Vice President, thank you so much for inviting me here today. Most importantly, thank you for providing the leadership needed and for making the future of Social Security a top priority. (Applause.) THE PRESIDENT: We asked Lucy Sanchez to come here to talk about the Family and Medical Leave Act and its effect on her life, because I think its important to point out that while both men and women are equally eligible for the Family and Medical Leave Act, women are far more likely to take advantage of it -- and they should not lose a year of eligibility, in terms of retirement vesting, when they do. Keep in mind, if men and women all had retirement systems in addition to Social Security, and they were more or less equal, then our task of dealing with handling the baby boomers in the retirement system would be much, much easier. And so anything we can do now to equalize the impact of retirement earnings among similarly situated people 20 years from now will change and make less difficult the changes we are going to have to make anyway in the Social Security system. I think its very important for everybody to kind of keep that in mind. So when I announced earlier today, a few moments ago, that we wanted people not to lose credit in retirement vesting when they access the Family and Medical Leave Act. I think its important -- we have an illustration of why its important to have this law on the books and why it is inconsistent with being pro-work or pro-family to disallow retirement vesting just because people are taking advantage of the law. FRAU. SANCHEZ: Thank you, Mr. President and Mr. Vice President, for inviting me to be here today. My experience is very recent. My husband went to walk the dogs one morning a year ago. Halfway home he suffered a dissection of his aorta -- thats a tear. He managed to make it home and climbed our front steps and opened the door. He collapsed against the door jam and called my name. Luckily, I was home. He has a genetic condition called Marfans Syndrome, which affects the bodys connective tissue. The most serious problems associated with Marfans Syndrome involve the cardiovascular system, and the aorta, which is the main artery carrying blood away from the heart, is wider and more fragile than normal. So instead of driving to work together that morning we drove to the emergency room at the Washington Hospital Center here. We had the advantage of being pretty certain we knew what had happened, and we told the ER staff, and he was in surgery within an hour. Meanwhile, I phoned his office and explained, and I phoned my office and explained. I didnt go back to work for 90 days. He actually had two surgeries that time and was in the intensive care unit for 11 days and in the hospital for three weeks. He came home sick, weak, confused, frightened, disoriented, unsteady. He didnt know when he was hungry. He didnt know when he needed to sleep. He didnt know what pills to take. So I could be there to take care of him. He recovered sufficiently to return to work in February. Then it happened again in May. Both times he needed around-the-clock care from me. They say trouble comes in threes so in July, my 85-year-old mother landed in the hospital with major health problems. And I was able to fly to Kentucky to be with her, to bring her home, and to make more permanent arrangements. All of this was in the last 12 months, and who else is there to care for your family but you. Because thats why we have families, thats why were part of families. We care for each other. And it is because of the Family and Medical Leave Act that I could care for my mother and my husband three different times this year. I was out of work for 90 days, but I was not out of a job. I knew my job would be there without having to ask my boss for special favors. Im sure she would have given them, but I didnt have to resort to that. I knew my seniority wouldnt be affected, and the fact that there was a plan in place to take care of lifes exigencies -- and life is nothing but unexpected -- was a great relief. When your life is in turmoil it is just enormously comforting to know that that is there. I did wonder what would happen to employee pension plans that I participate in -- would they continue, would they be affected, would they -- when I was actually lucky enough to be on annual leave and sick leave, for most of the time my paycheck continued. But should I have had to take even more time, I didnt know whether that would negate the plan or interrupt it. I just didnt know what would have happened if I hadnt been vested. I believe that the Family Medical Leave Act is one of the finest pieces of legislation, a real contribution to the well-being of the American family and especially women, because women are the care-givers, as we all know. We dont anticipate personal disasters. We tend to think of all of us as invincible, especially our own families. But it isnt always that way. This act is important to anyone, but especially women. I dont believe that people who take family medical leave should suffer pension loss, so Im very happy to hear of this new plan. Women usually put their needs after everyone elses. They tell us not to, but we do it anyway. And pension loss would put women who dont have much saved for the future at an even greater disadvantage. I want to thank you, Mr. President and Mr. Vice President, for your leadership in the enactment of Family Medical Leave. Im fortunate enough to work for an employer, the National Association of Social Workers, who strongly advocated for the Family and Medical Leave Act. And as we all know, professional social workers routinely help people juggle family care and work issues. And may I also just add as an amendment that Frances Perkins was a social worker. (Laughter.) Eventually, the pieces of my life came back together. Everyone is well. And I would hope that no one would ever have to use Family and Medical Leave Act as I did, but regrettably, I know better. Vielen Dank. (Applause.) THE PRESIDENT: Well, thank you for sharing your story with us. We can all see how recent it has been and how difficult it has been for you, and you were very brave to come here and talk with us today. And we thank you for that very much. We believe -- the Vice President and I and our spouses -- that the Family Leave law ought to be expanded some. (Applause.) Weve tried in two Congresses to do that and havent gotten very far. But well keep plugging away at it, because I think unless people have been in this situation where theyre afraid theyre going to lose their job, or wreck their retirement because theyre just doing whats necessary to hold their families together, they cant imagine it. And the law is actually a great -- its actually good for businesses, too, because it doesnt put any employers at a competitive disadvantage if it applies to all employers equally. It tends to minimize the cost, the burden of risk, for that. And I thank you very much for what you said. But I think if we can take this whole family leave issue out of the whole -- just eliminate it in terms of whether your retirement vests or not, I think it would be a good thing to do. Modest cost to the retirement systems, enormous benefit to the stability of families. So I thank you very, very much for that. Well, I think our panelists have done a great job, and I want to thank them for that. (Applause.) Again, what we attempted to do today was to show that on the present facts that women have a disproportionate interest the stability of the Social Security system and in the adequacy of the benefit because they are disproportionately likely to need it and more likely to have other assets -- or less likely to have other assets. We also wanted to emphasize the disability and child survivor benefits, which our panelists have so eloquently done. None of this, however, is an excuse to avoid making the hard decisions we have to make because of the demographic changes that are occurring. It is just that we have to be mindful of it. And what Im hoping we did today was not to confuse anyone, that weve still got hard decisions to make, but to say that we ought to be especially sensitive to how these decisions affect women -- number one. And number two, we ought to be steely in our determination not to let the surplus go until we figure how much cost is involved and how were going to balance all the difficult choices that have to be made and the risks that will have to be taken because weve got to maintain the social cohesion that Social Security has given us. Think about what we got out of Molly being able to live her life under the circumstances and raise her children. Think about what society got out of that. Think about what society is going to get out of Tyra Brown because she was not abandoned when her mother suddenly passed away at the age of 15. And we were all sitting there watching her talk, just feeling better being Americans, werent we, every one of us. Dont you think it was worth it to take care of her -- help her grandmother take care of her for three years We all got something out of that, and shes got 60 years or more of giving back to society, that were all going to benefit from that. So I think as we -- we identified, all of us, with each one of these panelists as they talked to us about their lives. And so Ill say again, none of this lets us off the hook for making the hard decisions, but it ought to make us determined to be more sensitive to how they affect women, number one and determined not to let the surplus go, in case we need it to fill in the patches of the decisions to make sure that we can have more stories like this 10, 20, 30, 40 years from now. Vielen Dank. (Applause.) 22. Why President Clintons quotSave Social Security Firstquot Position Is Right for America - October 30, 1998 THE WHITE HOUSE Office of the President President Clinton and Vice President Gore Have Fixed Our Fiscal Deficit Now We Must Fix Our Generational Deficit. In 1992, Americas budget deficit was 290 billion. a record dollar high. This past year, we had a 70 billion budget surplus the first budget surplus since 1969, the largest dollar surplus on record, and the largest as a share of the economy since the 1950s. The achievement of the first budget surplus in a generation provides a unique opportunity to save Social Security for the 21st century. President Clintons quotSave Social Security Firstquot Position Is Right For America. In the Fall of 1997, when the prospects for the first budget surplus in a generation emerged, many members of Congress rushed out with expensive new ways to spend that surplus, from new spending on government programs to costly tax plans. But in his State of the Union address last January, President Clinton put Americas long-run economic interests ahead of short-run politics by demanding that we reserve every penny of the budget surplus until we have strengthened Social Security for the 21st century. President Clintons commitment to quotsave Social Security firstquot is right for our economy and right for our future. We Have Fixed Our Budget Deficit, Now We Must Fix Our Generational Deficit. Reserving budget surpluses until we save Social Security gives us an additional resource to meet the costs of comprehensive reform. That is why President Clinton resisted all such proposals this year, from the hundreds of billions of dollars on a transportation bill to a 700 billion tax-cut plan. If we relaxed that fiscal discipline before we save Social Security, we could have found ourselves on a slippery slope and ended up squandering the surplus and weakening the prospects for bipartisan Social Security reform. The Budget Surplus Is Fundamentally a Social Security Surplus. Over the next 10 years, surpluses in the Social Security Trust Fund account for 98 percent of our overall projected surpluses. Since nearly all the surplus comes from Social Security, it makes sense to save the surplus until we know how much is needed to save Social Security. Preserving the Surplus Helps Create a Strong Incentive for Actually Getting Social Security Reform Done. It is normally impossible for any democracy to tackle long-term problems while the crisis is still only on the horizon. Putting the surplus off-limits until we address saving Social Security provides a strong impetus for all of us to do something to solve a fiscal challenge early so we can prevent a crisis later. If we eliminated this incentive, we may have jeopardized Social Security reform itself. We Should Not Deviate from Our Successful Three-Part Economic Growth Strategy. In 1993, President Clinton and Vice President Gore put in place a three-part economic strategy to cut the deficit to help reduce interest rates and spur business investment to invest in education, health care, and technology so that America was prepared to meet the challenges of the 21st century and to open markets abroad and lead the world economy so that American workers would have a fair chance to compete and win across the globe. This morning, we learned that the economy is growing at a solid and strong 3.3 percent rate, and since President Clinton took office, the private sector has expanded at a nearly 4 percent rate. With unemployment the lowest in 28 years, the core inflation the lowest in more than 30 years, and the highest homeownership rate on record, it is clear that the Presidents economic growth strategy is working -- we should not deviate from it. 23. REMARKS BY THE PRESIDENT AT ST. SEBASTIANS PARISH CHURCH -- October 30, 1998 Woodside, New York 1:43 P. M. EST THE PRESIDENT: Thank you very much for the warm welcome. Thank you, Monseigneur Finnerty, for greeting me when I came through the door of St. Sebastian. Thank you, my longtime friend Claire Shulman (phonetic), for being here. Thank you, Joe Crowley, for presenting yourself as a candidate for Congress. He got good marks from Chuck Schumer as an athlete, and you must have noticed that hes quite a large man. I told him that next January Id like him to be one of the whips in the Congress to get the votes gathered up, because I think people would be reluctant to say no to him. (Applause.) I love coming to Queens. I never will forget the first time I came out here when I was running for President in 1992, and Harold Ickes was helping me. And he said, were going to go out to Queens and were going to meet with the Queens County Democratic Committee. And Congressman Tom Manton is the chairman of the committee. And he said, I think we can get them to be for you. I said, now, why in the world would they endorse me Most of those people have probably never thought about Arkansas, much less been there. And he said, yes, but theyre a lot like you out there in Queens. Youll be right at home. Youll like that. So we got on the subway and there was a television camera or two with me. And no one in New York knew who I was at the time, so they probably thought we were filming a commercial or something. We were on the subway banging everybody around, and then we got off and took a beautiful walk to the place where we had the committee meeting. And Tom had already convened the committee, and I walked up the stairs, and at length they introduced me. And it was a setting sort of like this, and I was coming in from the back and we walked down the middle of the aisle. And I got about halfway down the aisle and there was this real tall African American man standing there on the aisle, a member of the Democratic Committee in this county. And he put his arm around me and he said, hey, Governor. He said, dont worry about this. He said, I was born in Hope, Arkansas, too. Youre going to be just fine. (Laughter and applause.) Tom Manton has been taking care of me ever since. And I want you to know that he has done a wonderful job in Congress and I appreciate what he did for you and for New York and for our country. And I will miss him very much. Thank you, friend. Vielen Dank. (Applause.) You know, on the way out here we were standing out in the hall and I first met Gert and we started laughing about John Glenn going up in space yesterday. And she said she thought that was a fine thing for a young man like him to be doing. (Laughter.) I want you to hold that thought, because Im coming back to it. (Laughter.) Theres a real reason why were here today. And finally let me thank Chuck and Iris Schumer for their friendship to me. I was in their home in 1992 over in Brooklyn. And I met their friends and relatives and the people with whom they worship. It was quite an exciting day for me. I have been proud of the campaign that they have made together with their family and friends -- starting out against overwhelming odds, bravely soldiering on, and, Id say, doing right well on this eve of another election. Id like to ask all of you to think about something as New Yorkers, as well as Americans. New York at extraordinary times has given this country extraordinary leadership in the United States Senate. New York gave the American people Robert Wagner and Herbert Layman (phonetic) and Jacob Javitz and Pat Moynihan in the United States Senate. New York gave the American people Robert Kennedy in the United States Senate. And once Robert Kennedy said, and I quote: quotThere is no basic inconsistency between ideals and realistic possibilities. quot Ive worked with Chuck Schumer a lot. Hes an idealist who is always struggling to get something done. And the longer I serve as your President, believe it or not, and in spite of everything, the more idealistic I am about America, what it stands for, what it means, and what it can do but the more determined I am that every day should be used to turn ideals into action. (Applause.) When it comes to education or Social Security or health care, when it comes to all those ideas, I can think of no person with whom I have worked in these last six years in the entire Congress who I think has more ability to turn ideals into action than Chuck Schumer. And that is one reason I am very proud to be here by his side and in support of him today. Now, let me say also to all of you, this is not an ordinary election. I want you to go vote Tuesday, even if you are not going to cast your ballot the way I want you to. I hope you will, however. But I want you to go, because in this election were going to choose the Congress of the 21st century. Really, the decisions that will be made, a lot of them in the next couple of years, will shape the way we as a people will live for far more than the next two years. For six years, since the people of New York gave the Vice President and me and Hillary and our whole team a chance to serve, weve turned the countrys economic policy around. Weve changed our social policy. We have essentially tried to make America work again so that we could take advantage of these incredible changes that are going on in the world and have a very strong economy, but make sure we kept a human face on it -- that we gave everybody a chance to benefit from his or her labors, and that we took care of those who through no fault of their own needed a little help to get by, and that we tried to bring the country together instead of driving it apart. And after six years, we saw again today that our economy grew at 3.3 percent in the last quarter. Weve had the lowest unemployment rate in 28 years, nearly 17 million new jobs, the lowest percentage of Americans on welfare in 29 years, the first balanced budget, as you heard Chuck say, in 29 years, and a surplus. For the first time in history, last week, thanks in part to the heroic efforts of New Yorks Secretary of Housing and Urban Development, Andrew Cuomo, we announced a year and a half ahead of time that we had met our goal. Now over two-thirds of the American people live in their own homes for the first time in the history of the United States. So we are moving in the right direction. That is a good thing. (Applause.) And as I told somebody, we had also reduced the size of the federal bureaucracy so that the federal government is now the smallest it was since the last time John Glenn went around the Earth. Now, I thank Tom for what he said. Our administration has tried to be a force for peace and freedom around the world. Weve worked hard to help the Irish reconcile with one another. Were working hard to promote peace in the Middle East, and we had a big breakthrough there last week on this day -- we announced it on this day last week. If I seem a little slow of speech today, youll have to forgive me, but on that last day I was up 39 hours without sleep. And the real way we made the agreement was I was the last one standing -- (laughter) -- and so they finally agreed so they could go to bed. (Laughter.) I say that because America has unique responsibilities and unique opportunities. Today I announced a program that I believe will help us to keep the world economy growing and to roll back some of the financial turmoil you read about thats engulfing the rest of the world. Now, thats a big deal because a quarter of our growth in the last six years has come from our ability to sell what we have to sell to other people. So that more and more, the success of every American business -- even small businesses here in Queens -- will be indirectly affected, at least, by the success of our friends and neighbors throughout the world. Now, against that background, at this golden moment for our country, I think we have to look ahead to the future and say, well, what are we going to do with the first surplus in 29 years What are we going to do with the lowest unemployment rate in 29 years What are we going to do with this time when we seem to be doing pretty well, but a lot of our friends are in trouble around the world. What are we going to do with all those neighborhoods in New York City and elsewhere which havent yet felt the economic recovery of the last six years Shall we just sort of relax and enjoy it, which means that at midterm elections half the people just stay home Or shall we instead look ahead to the future and say, you know, times like this dont come along very often. Those of you out here whove seen a lot of years, how many periods in American history have we had like this Not many in your lifetime. Not many. And nothing lasts forever. So that when you have these times like this, it is terribly important that we as Americans look to the future and take on our real challenges. To me, thats the most important decision the American people have to make. Do you want to think big, think about what America should be like for your children, your grandchildren, your great grandchildren. What can we do now when we are strong to give that kind of America to the Americans of the 21st century. Thats what this whole saving Social Security issue is about. When I heard Gert talking about it, I thought, you know, Social Security for us has become even more than a check in the mail -- even though fully one-half the seniors in America would be in poverty today without it. Even though most people have some other source of income in addition to their Social Security, nonetheless, if there were no Social Security, half the seniors in the country would be in poverty without it -- instead of the 11 percent, which is the actual rate today. Its a huge deal. Were talking about untold millions of lives changed. But in addition to the money, it is the symbol of our determination to honor family, to honor the contributions of those who went before us, to honor the proposition that in America we want to reward people who are good at what theyre doing. We dont begrudge the athletes their success, the businesspeople their success. But we know that a country is great because of the great mass of people who get up every day, work their hearts out, obey the law, pay their taxes, raise their kids, and build up neighborhoods. And they should be a part of our prosperity. We dont believe in leaving people behind who do their part for America. And Social Security symbolizes that. Now, whats the issue here Why is Social Security in trouble First of all, if youre getting a check now, relax, youre going to be fine. Thats not the issue. The issue is this: we are living longer. The baby boomers are coming up for retirement, and those of you who gave birth to baby boomers know that until this crowd started school last year -- this crowd of children in school -- the baby boomers were the largest American generation ever, and larger than our children. So that when we retire, the baby boomers, there will only be about two people working for every one person drawing Social Security. To give you an idea, today there are more than three people working -- about three and a half people working for every one person drawing Social Security. In addition to that, there will be more and more and more women retiring and living on Social Security because women, on balance, have a longer life expectancy. And they are less likely to have pensions or personal savings. For 25 percent of the women on Social Security, its the only income they receive. Now, when the 75 million baby boomers retire and when there are only two people on Social Security for every one person --two people working for every one person drawing -- we will in about 20 years start having to pay out of the Social Security trust fund, as provided by law, benefits, because the annual income wont be enough to cover the annual outgo. Then in about 34 years, even the trust fund wont be enough to cover the benefit. Heres what this is all about. If we start now and make some modest changes now that dont have to affect people on Social Security at all, and if we use this money that we have in the surplus -- which I think I should add was produced entirely by the Social Security tax itself -- then we can make modest changes and preserve Social Security in the 21st century in a way that will accommodate the changing population patterns and still make sure its there for the people who need it. If we do not do that, if we say, well, heck, we waited 29 years for this surplus, lets take the money and run, lets have a little fun, give me a tax cut, give me a new program, give me this, give me that -- before we know whether we need this money to save Social Security -- and keep in mind it was produced by the Social Security tax -- and we miss this opportunity, then whats going to happen Sooner or later, within a few years -- keep in mind, every year that goes by the problem is only going to get tougher, its not going to get easier, because you have less time to fix a big problem -- then sooner or later well be forced with the choice of either saying, well, Im sorry, we cant do this so were just going to have to cut benefits 22 percent, in which case a lot of seniors will be in deep trouble. Or well say, our conscience wont let us live with ourselves so were going to raise the taxes 22 percent -- and thats a whopping tax increase -- and keep in mind the payroll taxes paid by small businesses in years where they make money and years when they dont make any money. The payroll taxes paid by people on modest incomes as well as by wealthy people. And if we did that, wed be saying, okay, we didnt fix this when we had a chance back in 1999, and because we didnt do it now were going to have to lower the standard of living of our children and their ability to raise our grandchildren because we didnt do the right thing. Now, the generation that got us through World War II and built the greatest middle class in history and was educated by the GI Bill knows that America should do right by the future. This is a huge issue. For a long time I thought that this would be a completely bipartisan issue. All year long we had forums around the country, Democrats and Republicans together, talking about these ideas, honestly debating what the options were. But then the leadership in the House of the other party wanted to have a huge and permanent tax cut right before the election -- disproportionately benefitting upper income people like me -- before we did anything to fix Social Security and before we knew what it would cost. Well, we beat that. Thanks to Chuck Schumer and Tom Manton and a lot of other people, we rolled that back. But just the other day they reaffirmed their desire to do that, to deplete this surplus before we know how much we need for Social Security. And the Majority Leader in the Senate said that he might not even want to work with me on fixing Social Security. So I say to you, I did not come here to trouble you about your Social Security. Your Social Security is okay. If we dont do anything, youll be fine. But if you believe its been a good thing and if you want it there for the baby boomers, for your children, and if you want your children to be able to retire without having to undermine the incomes and the standard of living of your grandchildren, then I implore you to speak with a loud and clear voice and say, look, we have lived a long life and sometimes you cant do the easy thing. We shouldnt take the money and run. We should save the money, save the surplus, and fix Social Security. If theres anything left over, then we can talk about what to do about it. But we cannot endanger this fundamental compact between the generations that has helped to make America what it is today. Save Social Security first. (Applause.) Thats the big reason I wanted to come here, the big reason Im proud to stand with Chuck Schumer. There are other things. You heard -- I think it was Tom who said we voted in this budget -- we got one of our most important ideas in this budget: to hire 100,000 teachers to take class size down to an average of 18 in the early grades. But if you go around New York, you will see a lot of school buildings with rooms that cant be used. If you go to Florida, where I was yesterday -- I went to a little town in Florida not very long ago, a small town. I went to one elementary school, there were 12 trailers out back -- one school, 12 trailers to accommodate all the extra kids. So one of the things we didnt succeed in doing in this election -- and again I ask you to think about your grandchildren and your great-grandchildren -- if were going to have more teachers and smaller classes, they have to have someplace to teach. That means we have to build schools where we need them and we have to repair schools where we have them. We have school buildings in the cities of this country -- like New York and Philadelphia and Chicago -- that are priceless buildings. No one could afford to build such buildings today. Theyre great buildings, but theyve been allowed to fall into such disrepair that they cant even be hooked up to the Internet. And all this work were doing to bring our kids into the modern age is not possible. So thats another big issue that I think is important. And I thank Chuck Schumer and Tom Manton for their support for building and repairing 5,000 schools. And we need to do that next year. Weve tried to get a patients bill of rights passed for a year, and the health insurance companies persuaded the majority in Congress to beat us. But, you know, Chuck talked about Medicare. We have the same challenges in Medicare, by the way, we do in Social Security. But one of the things that bothers me is more and more Americans are in managed care plans and HMOs. Now, that can be good if they just save money that would have otherwise have been wasted. Dont forget, six years ago inflation in health care costs was going up at three times the rate of inflation. And for elderly people that was a really troubling thing, since you use more health care. It was going to bankrupt the country. So to manage the system better is a good thing. But to manage the system only to save money without regard to whether its good for health care is not a good thing. Doctors, not accountants, should ultimately make health care decisions. (Applause.) Were trying to pass this patients bill of rights that simply says, look, we believe very strongly that we should have a law which says every person should have a right to see a specialist if his or her doctor recommends it that every person in an accident should have a right to go to the nearest emergency room, not one halfway across New York City just because thats the one thats covered by the plan that if a person is in a treatment -- a chemotherapy treatment or a young woman being by an obstetrician, whos pregnant, and their employer changes health care plans, well, you ought to be able to keep the doctor youre dealing with until the treatment is over, until the baby is born and that your medical records ought to be private. Now, this is something that affects Americans of all ages, but disproportionately seniors who are in managed care plans. A lot of seniors want to go into managed care plans -- Medicaid, Medicare -- because they give prescription drugs which otherwise arent covered. There are a lot of good things. But in the end everybody ought to have those rights, those basic rights. And thats a big issue in this election that affects you and your children and your grandchildren. So finally let me just say that there are a lot of things out here that you have to think about. And Ive been urging the American people to vote and hoping we can get a little more balance in this Congress so that we can have people like Chuck Schumer who will put Social Security first, who will pass a patients bill of rights, who will make it possible for us to modernize and build our schools in short, who will be thinking about the long term. The temptation is great for people just to pass -- they say, gosh, things are going so well, why is the President so agitated Because my job is to think for all the American people about next year and five years and 10 years and 20 years down the road. And I would argue that those of you who are senior citizens, your job is to think for all the American people about next year and 10 years and 20 years down the road. We were sitting here talking about John Glenn going up 36 years ago, and Tom Manton said, I remember when he went the first time and it seems like it was yesterday. Doesnt it to you, the ones that remember it It seems like it was yesterday. I remember once I met a man who is a friend of mine, who was 76 at the time, at an airport in Little Rock, and he looked terribly sad. And I said, why are you so sad He said, well, my sister just died and Im here to meet some family members. And he said, when you came up to me, Bill -- he said, I was thinking about when we were five years old. He was 75. And he put his hand on my shoulder and he said, let me tell you something, it doesnt take long to live a life. And all of you know that. We all are given our share of time here. We all try to make the best we can. We all try to build our families and build our lives, enjoy our friends, pursue our faiths. America is the greatest country in the world for giving us that chance. All we all owe back to America is good citizenship. So I ask you, please, at this golden moment for our country, stand up for the proposition that we should save the Social Security system before we throw this money that weve worked six years to build up stand up for the proposition that every person ought to have decent integrity in their health care system stand up for the proposition that children you and I may never know should have a world-class education in the 21st century. I ask you for that and for your help for this good man, Chuck Schumer, and for all people who are always thinking about Americas tomorrows. Thank you and God bless you. (Applause.) 24. REMARKS BY THE PRESIDENT BEFORE MEETING ON SOCIAL SECURITY - November 4, 1998 The Cabinet Room 1:15 P. M. EST THE PRESIDENT: Good afternoon. Now that the election is over, it is time to put politics aside and once again focus clearly on the peoples business. In yesterdays election I think the message the American people sent was loud and clear: We want progress over partisanship, and unity over division. We should address our countrys great challenges. Above all, now we must address the challenge to save Social Security for the 21st century. We have work to do in other areas as well. We should move forward to pass a patients bill of rights. We should strengthen our schools by finishing the job of hiring 100,000 teachers and then passing the school modernization initiative, to give us 5,000 remodeled or new schools. We should increase the minimum wage. We should pass campaign finance reform. We must maintain our fiscal discipline to strengthen our own economy and maintain our efforts to stabilize the global economy. But above all now, we have to seize this opportunity to save Social Security. And were about to have another meeting here, one of many, in anticipation of the White House conference. I have spoken tonight and today with Senator Lott and Speaker Gingrich, with Senator Daschle and Mr. Gephardt, to ask them to join with me in this effort. On December 8th and 9th we will hold the first ever White House Conference on Social Security, bringing together people from Congress and the administration, from the public and experts of all persuasions. We will only be able to do this if we reach across party lines, reach across generational lines, indeed reach across philosophical lines, to forge a true national consensus. I believe we can do it. I believe we must do it. Yesterdays election makes it clear that the American people expect us to do it. Q To what do you attribute, Mr. President, the Democratic gains I mean, was there one factor that you think was really the motivation THE PRESIDENT: Well, let me say Im very proud of what our party did yesterday in the face of the tide of history and an enormous financial disadvantage. I think its clear what happened. I think that they stayed together they had a message that was about the American people, their needs, their opportunities, and their future. I think that they won because they had a clear message that was about America -- about saving Social Security, and improving education, and passing the patients bill of rights, and raising the minimum wage and those other things. I think thats why they won. And they were able to get an enormous outpouring of support in all quarters of the country. And Im very proud of what they did. But I think they did it by putting progress over partisanship. Q Mr. President, do you think the election results will have an impact, or should have an impact on the impeachment inquiry THE PRESIDENT: Thats in the hands of Congress and the American people. Ive said that before Ill say it again. I have nothing else to say about that. Q Mr. President, the Republicans have made no secret of the fact that they intend to look at these elections and draw a lessons in terms of how they conduct an impeachment inquiry. What lesson would you hope they draw from these elections on that point THE PRESIDENT: Thats a decision for them to make. Im not involved in that and Im not going to comment on it. I think that the lesson all people should draw is that the people who were rewarded were rewarded because they wanted to do something for the American people. They wanted to do something to pull this country together and to move this country forward. If you look at all the results, theyre clear and unambiguous. The American people want their business, their concerns, their children, their families, their future addressed here. Thats what the message of the election was. And because the Democrats were able to do that in a unified fashion, even while being badly outspent and while running against a tide of history that goes back to, really to 1822, they were able to have an astonishing result. And Im grateful for that. But I think that people of both parties who care about these issues and want to pull the country together should now put the election behind us, put Social Security reform and education and health care reform before us, and go forward. Thats what I want to do. Q -- the outcome is a vindication of your policies THE PRESIDENT: I think it is a vindication of the policies and of the general policy of putting partisanship behind progress and of putting people before politics, and of trying to find ways to bring people together instead of to divide them. It was clearly a vindication of the message that the Democrats put out there on education, health care, Social Security and the minimum wage, campaign finance reform, the environment, a number of other things. A lot of people worked very hard in this election -- the Vice President did, the First Lady did, a lot of people did -- but I think the American people basically said to all of us -- all of us -- we sent you there to work for us and we want you to find a way to do it, to address the challenges we face and to bring this country together and move this country forward. I think that was the loud, clear, completely unambiguous message of the election. Q -- the election of Ventura in Minnesota -- THE PRESIDENT: I dont know. I think that youre going to have a lot of politicians spending time in gyms now. (Laughter.) 25. REMARKS BY THE PRESIDENT ON MEDICARE FRAUD -- December 7, 1998 Room 450 Old Executive Office Building 12:50 P. M. EST THE PRESIDENT: Thank you. I would like to welcome you all here today and thank Margaret Dixon for those fine remarks. I thank Deborah Briceland-Betts for representing the Older Womens League so well, and Nancy Ann Min-Deparle for the great job she does as our HCFA Administrator. I welcome our friend, George Korpius and representatives from the National Council of Senior Citizens. And I want to say a special word of appreciation to Senator Tom Harkin, who has been on top of this issue for a very, very long time, and has long needed more support from administrations. And we certainly tried to give him ours, but he has been a real trailblazer and we thank him. Id like to also thank, as others have, the HHS and especially June Gibbs Brown, the Inspector General and Mike Mangano, the Deputy Inspector General, who is here today. Id also like to say one other word about Senator Gore, Sr. who was mentioned by Nancy Ann. Al Gore, Sr. was a leader in the development and the passage of the original Medicare bill over 30 years ago. And that is one of the many, many things we remember him for at this time of his passing. For more than 30 years now, Medicare has been more than a government program. It has been a way that we could honor our obligations to our parents and our grandparents an expression of the old profound American belief that the bonds of mutual love and support among the generations must remain strong. Any threat, therefore, to the integrity of Medicare is a threat to these bonds. And that is one of the main reasons that our administration has worked so hard to strengthen Medicare. The balanced budget bill I signed last year extended the life of the Medicare Trust Fund for a decade. We also established a commission currently working to help Medicare meet the needs of the baby boom generation and the rising costs that inevitably come as we all live longer and longer and require more health care. It is a troubling financial problem, but as a social matter it is a happy challenge. It is what I would call a high-class problem that we are all living longer and longer. But it does present us with certain real challenges which we have to face, and I look forward to getting the report from Senator Breaux and the Medicare Commission, and the working on a bipartisan basis with the next Congress to resolve this important matter. Today, Im announcing additional steps to strengthen Medicare by fighting the threat of Medicare fraud. Every year, Medicare is cheated out of billions of dollars, money that translates into higher taxes on working Americans, higher copayments in premiums for elderly Medicare recipients. This has become, as I said, especially significant as we grow older and more and more of us become eligible for Medicare. Im proud of what we have already done to fight fraud and abuse and waste. Since 1993, weve assigned more federal prosecutors and FBI agents to fight health care fraud. Weve increased prosecutions by over 60 percent, convictions by 240 percent, saved 20 billion in health care claims. Money that would have lined the pockets of scam artists now is helping to preserve the Medicare Trust Fund and to provide high-quality, affordable health care. But there is still more we can do. The private sector health care contractors that are responsible for fighting waste, fraud and abuse too often are not living up to their responsibilities. We recently learned that one-fourth of those contractors have never reported a single case of fraud, even though the Inspector General is quite certain that fraud is pervasive in this area. Therefore, we are using new authority we fought for to create new weapons in the fight against fraud. Beginning this spring we will empower new, specialized contractors, Medicare fraud hunters, who will focus on waste, fraud and abuse. These new fraud hunters, by tracking down scams and waste, can bring real savings to Medicare and strengthen the system for the 21st century. Im also requiring all Medicare contractors to notify the government immediately when they learn of any evidence of fraud, so that we can detect patterns of fraud quickly and take swift action to stop them. And Im asking HCFA to report back to me early next year with a comprehensive plan to fight waste, fraud and abuse further in the Medicare program. In the fight against Medicare fraud, Congress must also do its part. And I am encouraged by the bipartisan oversight hearings being held in Chicago this week by Senators Collins and Durbin. When it returns next year Ill ask Congress to pass legislation that can save Medicare another 2 billion over the next five years. First, legislation that will allow us to empower our new fraud hunters to spot overpayments and keep crooked medical service providers from getting into the Medicare system to start with. Second, the legislation will allow Medicare to pay much lower rates for prescription medications. Under current law Medicare loses hundreds of millions of dollars each year by paying as much as 10 times more than the private sector does for certain drugs. Its just wrong. Third, the legislation will force private insurers to pay claims that they are legally responsible for, so that Medicare does not get stuck with the bill. This happens more often than you would think. Fourth, legislation will allow us to crack down on medical providers, particularly those claiming to deliver mental health care who bill for services they never, in fact, provide, a large and, unfortunately, growing problem, according to our recent reports. By passing these common-sense measures to fight Medicare waste and fraud, Congress can do more than help save taxpayers money. It can demonstrate a bipartisan desire to preserve and strengthen Medicare for the future. If we took these actions now, we can help to assure that the system that has served our parents and grandparents so well will be there to serve our children and grandchildren well into the 21st century. Thanks to the advocates who are here -- Senator Harkin and others -- Im confident that is exactly what we will do next year. Thank you very much, and happy holidays. (Applause.) 26. REMARKS BY THE PRESIDENT IN OPENING WHITE HOUSE CONFERENCE ON SOCIAL SECURITY -- December 8, 1998 Marriott Wardman Park Hotel Washington. D. C. THE PRESIDENT: Good morning, ladies and gentlemen. Let me begin by welcoming all of you and acknowledging Senators Daschle and Santorum, Congressman Gephardt and Congressman Shaw, who will speak, and the very, very large delegation we have from the United States Congress, members of both parties right out here to my left. I thank you all for coming. I think the fact that we have such a large representation from the Congress, as well as leaders of various organizations of people throughout the United States and people concerned about the Social Security issue, is a testament to the profound importance of this issue and the commitment of the American people to do something about it. I thank Secretary Rubin, Secretary Herman, Secretary Daley, and Gene Sperling, Jack Lew, Ken Apfel, and John Podesta, representing the administration, for their presence here. This is the first ever White House Conference on Social Security. There are all of you here in Washington, plus thousands of people watching at 60 satellite sites in all 50 states. Id also like to apologize for my early departure. I had hoped to be here for as much of this conference as I could, but, as all of you know, there is a service in Tennessee today for the father of our Vice President, former United States Senator Albert Gore, Sr. who was a true, great public servant. He and his generation built the entire postwar order from Medicare to the interstate highway system, both of which he himself had a personal role in creating. They were civic institutions that have helped save our nation and our world in the half-century since. Now it is our turn to be builders, to renew the institutions that have made America strong. In this time, America faces no more important challenge than the need to save Social Security for the 21st century. Social Security is and must remain a rock-solid guarantee. It is a sacred trust among the generations, between parents and children, grandparents and grandchildren between those in retirement and those at work, between the able-bodied and the disabled. It embodies our obligations to one another and our deepest values as Americans. This year, I and a lot of people in this room, a lot of members of Congress, have spent a lot of time listening to the American people and speaking with them about Social Security. This White House Conference, a gathering of lawmakers, experts, Americans from all walks of life, marks an important step in the direction of saving Social Security for the 21st century. Well hear a lot of ideas expressed about what course we should take. Let me shock you by saying I think there will be some differences of opinion expressed in this room. But we should begin this process on common ground, agreeing above all on the importance of acting and acting now, while we can, during prosperous and productive times that Americans have worked so hard to achieve. Our economy is indeed a powerful engine of prosperity. In its wide wake it creates something every bit as important as jobs and growth -- the opportunity to do something meaningful for Americas future and the confidence that we can actually do it -- an opportunity to save Social Security for the 21st century. I hope history will record that we seized this opportunity. Earlier this year I said we should reserve any surplus until we save Social Security first. We have done so. We should take the next step and act now. It is more than an opportunity it is a solemn responsibility -- to take the achievement of past generations, the Americans who, according to President Roosevelt, had a rendezvous with destiny, and to renew the social contract for a new era. Through war and peace, from recession to expansion, our nation has fulfilled its obligation to older Americans. It is hard, thankfully, to remember the time when growing old often meant growing poor. It seems impossible to believe, but in many cases, retirement meant being relegated to a rest home and the degradation of dependence. The normal aches and pains were accompanied by the unbearable pain of becoming a burden to ones children. Thats why Social Security continues to offer much hope, much confidence, much peace of mind. It is one of the most important and ambitious undertakings in our nations entire lifetime. President Roosevelt said, there is no tragedy in growing old, but there is tragedy in growing old without means of support. Soon we will face a rising challenge in providing that support, as every one of you knows. Before too long, there will only be about two people working for every one person eligible to draw Social Security. As our panelists will discuss, we are actually going to have many, many older Americans. Just last night Hillary and I were discussing a recent health report that infant mortality last year dropped to an all-time low and the life expectancy of Americans rose to an all-time high, over 76 years. Some would argue that this problem we have with Social Security is, therefore, a high-class problem. I know that the older I get, the more high-class the problem looks to me. It is, nonetheless, a significant challenge: 75 million baby boomers retiring during the next two decades. By 2013, what Social Security takes in will no longer be enough to fund what it pays out. Thats just 15 years away. Then well have to use the proceeds from the trust fund. By 2032, just 34 years away, the money Social Security takes in will only be enough to pay 72 percent of benefits. Now, there are many ways to deal with this, but there is only one way to get it done. Let me say to all the people on all sides of this debate, the only way we can save Social Security and avoid what I think is a result that none of us want, which is either a dramatic cut in the standard of living of retirees in America, a dramatic increase in the taxes on working Americans and the lowering of the standard of living of the children and grandchildren of the baby boomers -- the only way we can avoid that is by working together, putting progress ahead of partisanship, placing the long-term interest of the nation first. Already some are predicting that we are simply incapable of doing this in Washington. I am determined to prove them wrong. I hope everyone of you are determined to do so as well. (Applause.) What does this mean It means, first of all, not that we should forget about what we think is right. It means each of us should articulate what we think is right, and those who believe they disagree should listen to them. We should all listen to people who have different opinions they might be right and we might be wrong. Secondly, it means that our differences cannot take the form of personal attacks. This is a complex issue and I have found that on this issue most people believe what they really believe -- we do not need to let our differences disintegrate into personal attacks. Third, in the end all of us in some sense will have to sacrifice our sense of the perfect to work together for the common good. There is in this process no room for rancor. The stakes are too high, the issues far too important. Its not about politics, its about doing right by young Americans and older Americans and the future of America. The whole point of this conference is to open honest debate and to build consensus, not to shoot down ideas or insist that one side or the other has to go first. Secretary Riley, our Secretary of Education, said that one of his greatest lessons from South Carolina politics was the old saying that Im for change and you are, too you go first. (Laughter.) Im prepared to do whatever it takes to move us forward. But lets agree, we have to march together. Thats the only path to the finish line. Our ears, our minds must remain open to any good idea and to any person of goodwill. In judging any proposal I believe we should be guided by five principles. First, as I have said, we must strengthen and protect the guarantee of Social Security for the 21st century. Second, we must maintain universality and fairness. Later panelists will discuss the impact of reform on different groups. The First Lady was scheduled to discuss the special impact on women, who on average live longer than men, so depend on Social Security more. Now, keep in mind that only 4.6 percent of elderly married women are living in poverty. For elderly single women, the number is about 20 percent. Those who think we can wait should never forget that fact either. When we judge any plan to save Social Security we need to ask whether it cuts the poverty rate among single elderly women and other groups in our population that are still at significant risk. (Applause.) I must say, I have been quite impressed that proposals that span the conventional ideological spectrum have shown a sensitivity to this and to taking vulnerable people out of poverty and giving them the secure retirement they deserve. Third, I believe we must construct a system where Social Security can be counted on regardless of the ups and downs of the economy or the markets. Fourth, Social Security must continue to provide financial security for disabled and low income beneficiaries. One in three Social Security beneficiaries are not retirees, and we must never forget that. And fifth, any proposal must maintain our hard-won fiscal discipline. It has helped to fuel the prosperity Americans enjoy today. That is, after all, what gives us the chance to do this in at least a less painful manner. I look forward to transforming these ideas into action. Let us begin firm in our faith that Social Security can bind our people not only across generational divides, but across party lines. Let me say, too, in that regard, I am grateful for the presence here of Senator Santorum and Congressman Shaw from the Republican majority, and the Minority Leader, Senator Daschle and Congressman Gephardt. I thank you very much for your presence here. And now Id like to turn it over to them to make some opening remarks so we can get on with the work of this conference. Let me say this before I sit down. You have to decide that we are going to do this. You have to tell these members of Congress that you will support them if they act. If you come here representing a particular point of view and you know these members of Congress agree with you, you should ask them to defend your point of view, but to be willing in the end to make a decision that will deal with the problem. This will only get harder, every single year we avoid resolving this it will get harder and harder and harder. And everybodys favorite idea will have a less beneficial impact the longer we wait. Now is the time to do this. Vielen Dank. (Applause.) 27. REMARKS BY THE PRESIDENT AT SOCIAL SECURITY AND Y2K EVENT -- December 28, 1998 Room 450 -- Old Executive Office Building THE PRESIDENT: Let me say, one of the things that she might have told you is that before she volunteered for the National Council of Senior Citizens for 20 years, she was an employee until 1972, when she retired, of the Bureau of Engraving and Printing. Therefore, she worked for the Treasury Department. And on New Years Eve, she will be 90 years old. (Applause.) Ladies and gentlemen, before I get into my remarks, because this is the only opportunity I will have to appear before the press today, I think I should say a few words about an incident early this morning over the skies of Iraq, where American and British air crews were enforcing a no-fly zone in Northern Iraq. They were fired on by Iraq surface-to-air missiles. They took evasive action, returned fire on the missile site, and returned safely to their base in Turkey. We enforce two no-fly zones in Iraq, one in the North, established in 1991 another in the South, established in 1992, which now stretches from the southern suburbs of Baghdad down to the Kuwaiti border. The no-fly zones have been and will remain an important part of our containment policy. Because we effectively control the skies over much of Iraq, Saddam has been unable to use air power to repress his own people or to lash out again at his neighbors. Our pilots have the authority to protect themselves if theyre threatened or attacked. They took appropriate action today in responding to Iraqs actions. Once again, I want to tell you I am very proud of the work they do, the risks they take, the skill and the professionalism with which they do it. They attacked because they were attacked. And they did the appropriate thing. We will continue to enforce the no-fly zones. Now, let me say, this is a very happy announcement today. And I want to thank Secretary Rubin -- who most people associate with saving the economy, not saving Social Security, but thats an important part of his job, too. I want to thank Kathy Adams, who is one of the those people in the government that makes it go and never gets enough credit for it. So Im delighted to see her up here and through her, all the other people who work every day to make America work. Ive already told you about Pauline Johnson Jones. And I want to say, too, I have been very moved by how passionate Ken Apfel has been about making sure that this problem got solved, and today we saw that he has a vested interest in it -- (laughter.) He doesnt want his father to cut him out of his will -- (laughter) -- and everybody always needs to be in better stead with their in-laws. (Laughter.) You know, this Y2K problem is a stunning problem -- oh, one other thing. I want to acknowledge the presence here in the audience of the member of Congress from Guam, Congressman Robert Underwood, his wife and their five children. Theyre here were delighted to see all of them. Were delighted that theyre here with us in this cold weather, instead of on warm and sunny Guam today. We just heard that the new millennium is only 368 days away. And we want it to be a carefree celebration. The reason were here today is to announce that on New Years Day 2000, and on every day that follows, people like Pauline can rest easy because the millennium bug will not delay the payment of Social Security checks by a single day. The Social Security system is now 100 percent compliant with our standards and safeguards for the year 2000. To make absolutely certain, the system has been tested and validated by a panel of independent experts the system works, it is secure. And therefore, older Americans can feel more secure. I thank all those who are responsible. This is a good day for America. Vielen Dank. (Applause.) The Social Security Administration and the Financial Management Service can be proud. The Social Security Agency was the very first one to start work on the Y2K problem its been a leader and a model ever since. They couldnt have done it, these two agencies, if they hadnt worked as a team. Social Security generates the Social Security payments the Financial Management Services issues those payments. They are in this together. Indeed, were all in this together. This involves not just federal agencies, but every one who depends upon a computer, which is every one directly or indirectly. Federal and state governments and local governments, businesses large and small, the year 2000 problem reveals the connections between all of us. We also, I want to point out, have been working very hard with other countries -- Sally Katzen just told me that there was a meeting at the United Nations recently where we met with representatives of 120 other countries who are all now working together to solve this, because, as all of you know, a lot of our economy is tied up with economic endeavors throughout the world, so even a problem a long way from our shores can have ramifications within our borders. And of course, we dont want any of our friends and neighbors hurt by this change, either. People are meeting this challenge, but I think a lot of people can still hardly imagine what caused this. I mean, computers, after all, are supposed to save us time, right And I was describing this Y2K problem to Hillary, and she got so technophobic that I gave her a little digital alarm clock for Christmas and she gave it back to me after I talked to her about it, and she said, why dont you just go get me one that winds up that I can change in my hand. (Laughter.) It happened, you know, because in the older computers the memory put on the chip was precious and much more limited than the phenomenal capacity of computer chips today, so that, in effect, they were all programmed, these older computers, just to change the last two digits on the four numbers of any date. And so what would happen is, when you get to the year 2000, it would show 1900 instead of 2000, because there is no provision for the 19 to go to 20, because of the limitations of memory in the older computer chips. The problem is, obviously, that a lot of new computers are also interconnected with older computers and a lot of people cant even be sure what chips are in what computers and what links are there. Thats what makes this labor-saving device of the computer present the most labor-intensive problem imaginable. Retired people have had to come back -- people with skills in working with the old computers have had to come back to help all kinds of businesses figure out how to unravel this problem. It sounds so simple, but it is so mammoth because you have to identify what computers and what chips are where and what the interconnections are. And so its an enormous, enormous effort, and we really, all of us, are so indebted to these people who have been recognized today with these two agencies, and to others all across the country who are working on this problem in the public and in the private sectors. I say again, the American people dont know who -- or didnt before today -- know who Kathy Adams was. They dont know any of the people who are working with her. But when they get the checks for the first Social Security payment in the new millennium, it will be because of them. And I would just ask the American people today to be very sensitive, because there are people like Kathy Adams working in all these agencies, in state and local government and all these businesses throughout the country, and they need to be encouraged. And those who have not yet undertaken this task need to get on it and get on it now because we just have a little more than a year to get the job done. Now, we have made sure that Social Security checks will keep coming in the year 2000. Id also like to say that after we got the computer problem behind us, we have to continue to focus on the larger issue, the policy issue, which is to make sure the Social Security checks keep coming throughout the 21st century. All of you know that at present rates of contribution and payment, present rates of retirement, present rates of aging and birth and immigration, we estimate that the Social Security trust fund will be exhausted in about 34 years. We have typically tried to keep the life of the trust fund at about 75 years to make sure it was absolutely stable. Thirty-four years seems like a long time away -- I suppose the younger you are, the further away it seems. It doesnt seem so far to me now, because things that happened 34 years ago are implanted in my mind as if they occurred only yesterday. But we are going to face early next year a great challenge of fashioning a bipartisan solution to save Social Security for the 21st century. I tell everybody it is a formidable problem, but it will only get worse if we delay it. And it is a high-class problem -- we have this problem because were living longer. The average life expectancy of the American people, as reported just a few weeks ago, exceeds 76 years. And that is a high-class problem. We should be grateful for this problem. When Social Security was established and there was no early retirement at 62, and you couldnt draw until 65, the average male life expectancy in America was 56 -- in the 1930s. So weve gone from 56 to over 76, and of course, for women its a couple of years higher. And as Pauline says, women are especially dependent on Social Security for reasons that I think would be obvious to anyone, and therefore, have a particularly large stake in our resolving this problem in a prompt and appropriate way. Now, in the last year -- in this year, 1998 -- I have gone around the country and held these bipartisan forums. Members of Congress in both Houses and both parties have taken a special interest and have been very good to attend these forums. Just a few days ago, we had a two-day first White House Conference on Social Security. The second day I went over to Blair House and met with nearly 50 members of Congress from both parties and both Houses. It was an astonishing outpouring of genuine interest. Now, I dont want to minimize the problems, and theyre different from the Y2K problem. The Y2K problem, you know what to do to fix it once you identify it. Here weve identified it and there are obvious differences about what should be done to fix Social Security for the 21st century. But we all know that there are basically only three options: We can raise taxes again, which no one wants to do because the payroll tax is regressive. Over half the American people who are working pay more payroll tax than income tax today. We can cut benefits and it might be all right for someone like me who has a good retirement plan, but its not a very good idea for someone like Pauline. Or we can work together to try to find some way to increase the rate of return. And there are a number of options that we are discussing. The point I want to make to all of you is that we have the same obligation to fix the system in policy terms for the 21st century that these fine people we honor today have discharged in fixing the Y2K problem. And if we approach it with the same can-do attitude and the same determination to reach a result, we can achieve that. So today we celebrate and I hope the celebration that we have today will steel our determination to make sure that people like Pauline can be making this speech 50 years from now. Thank you very much, and happy New Year. (Applause.)Code GB, Ingersoll Hall, Room 201 (831) 656-3953, DSN 756-3953 Rene G. Rendon, D. B.A. Associate Professor Code GB, Ingersoll Hall, Room 331D (831) 656-3464, DSN 756-3464 The Acquisition and Contract Management curriculum is an interdisciplinary program which integrates management theory, accounting, economics, finance, behavioral science, management theory, operationssystems analysis, and specific courses in acquisition and contracting. The 815 curriculum includes a concentration option in strategic purchasing. Student input includes officers and civilians from all DoD services, other federal agencies and allied nations. The curriculum is designed to provide officers and civilians with the skills to serve effectively in systems buying offices, field contracting offices, contract administration offices, and contracting policy offices. Competency: Our graduates will be: Effective Contract managers. Requirements for Entry A baccalaureate degree with above-average grades is required. Completion of at least two semesters of college algebra or trigonometry is considered to be the minimum mathematical preparation. An APC of 345 is required for entry. International students should refer to the Admissions section for current TOEFL and entrance requirements. January and July. Requirements for the Master of Business Administration (MBA) degree are met en route to satisfying the Educational Skills Requirements. Acquisition and Contract Management Subspecialty Completion of this curriculum qualifies naval officers as Acquisition and Contract Management Subspecialists with a subspecialty code of 1306P, Army officers as Functional Area 51C, and Marine Corps officers with a 9656 MOS. The curriculum satisfies mandatory Defense Acquisition University (DAU) contracting courses required by the Defense Acquisition Workforce Improvement Act (DAWIA). Typical Subspecialty Jobs Director of Contracts Contracts and Business Policy Staff Officer Deputy Assistant Secretary of the Navy (Acquisition) Typical Course of Study: Curriculum 815 US Navy students also complete an additional four courses leading to the Naval War College Command and Staff program diploma. International students take IT1500 American Life and Institutions and IT1600 Communication Skills for International Officers in Quarters one and two. Principles of Acquisition Production and Quality Management USN and USMC only students may complete three additional War College classes for JPME certification USN and USAF only USMC and US Army only Educational Skills Requirements (ESR) Acquisition Management - Curriculum 815 Subspecialty Code 1306P Management Fundamentals: The graduate will understand the theory of and have an ability to apply accounting, economic, mathematical, statistical, managerial, and other state-of-the-art management techniques and concepts to problem solving and decision-making responsibilities as military managers. Advanced Management Concepts: The graduate will have the ability to apply advanced management and operations research techniques to defense problems. This includes policy formulation and execution, strategic planning, defense resource allocation, cost benefit and cost effectiveness analysis, federal fiscal policy, computer-based information and decision support systems, and complex managerial situations requiring comprehensive integrated decision making. Acquisition and Contracting Principles: The graduate will have an understanding of and will be able to apply the principles and fundamentals of acquisition and contracting within the federal government, including knowledge of the acquisition laws and regulations, particularly the Federal Acquisition Regulation (FAR) and the DoD FAR Supplement (DFARS) the unique legal principles applied in government contract law and the Uniform Commercial Code and the application of sound business principles and practices to defense contracting problems. Further, the graduate will be able to apply innovative and creative approaches not only to resolve difficult acquisition and contracting issues but to significantly influence the legal and regulatory structure within which acquisition decision making occurs. Finally, the graduate will have the ability to conceptualize, develop and execute strategic business alliances and relationships necessary to the successful acquisition of goods and services. Acquisition and Contracting Policy: The graduate will have an ability to formulate and execute acquisition policies, strategies, plans and procedures a knowledge of the legislative process and an ability to research and analyze acquisition legislation and a knowledge of the government organization for acquisition, including Congress, the General Accounting Office, the Office of Federal Procurement Policy, the federal and military contracting offices, the Boards of Contract Appeals, and the court system. Contracting Process: The graduate will understand the theory of and have the ability to manage the field contracting, contingency contracting, supplies and services contracting, system acquisition, and contract administration processes. This involves a knowledge of the defense system life cycle processes, including requirements determination, funding, contracting, ownership, and disposal an ability to evaluate military requirements, specifications, and bids and proposals an ability to utilize the sealed bid, competitive proposals and simplified acquisition methodologies a comprehensive knowledge of all contract types and their application in defense acquisition an ability to conduct cost and price analyses and an ability to negotiate various contracting actions, including new procurement, contract changes and modifications, claims, equitable adjustment settlements, and noncompliance issues. Business Theory and Practices: The graduate will have an understanding of the business philosophy, concepts, practices, and methodologies of the global commercial industrial base, and the ability to apply these to the federal government acquisition environment. Federal and Defense Budgeting: The graduate will have an ability to apply economic and accounting principles, including monetary and fiscal theories, to defense acquisition and contracting issues. Program Management: The graduate will have an understanding of the basic principles and fundamentals of Program Management, with particular emphasis on the Procuring Contractor Officers and Administrative Contracting Officers roles and relationships with the Program Manager. Acquisition Workforce: The graduate will satisfy all requirements of the Defense Acquisition Workforce Improvement Act (DAWIA) and mandatory contracting courses required by the Defense Acquisition University (DAU) at Levels I, II, III. Ethics and Standards of Conduct: The graduate will have an ability to manage and provide leadership in the ethical considerations of military acquisition, including the provisions of procurement integrity, and to appropriately apply defense acquisition standards of conduct. Strategy and Policy: Officers develop a graduate-level ability to think strategically, critically analyze past military campaigns, and apply historical lessons to future joint and combined operations, in order to discern the relationship between a nations policies and goals and the ways military power may be used to achieve them. This is fulfilled by completing the first of the Naval War College course series leading to Service Intermediate-level Professional Military Education (PME) and Phase I Joint PME credit. Analysis, Problem Solving, and Critical Thinking: The graduate will demonstrate the ability to conduct research and analysis, and proficiency in presenting the results in writing and orally by means of an applied project and a command-oriented briefing appropriate to this curriculum. Systems Acquisition Management - Curriculum 816 James (Chris) Statler, CDR, USN Code GB, Ingersoll Hall, Room 201 (831) 656-3953, DSN 756-3953 John Dillard, COL, USA (Ret.) Code GB, Ingersoll Hall, Room 336 (831) 656-2650, DSN 756-2650 The Systems Acquisition Management curriculum is an interdisciplinary program designed to integrate business principles, program leadership and management theory, operations analysis, and systems engineering applications. It is uniquely tailored to federal government acquisition management and intensive exposure to the fundamental principles of the acquisition environment. The courses in this curriculum apply business analysis and problem solving techniques essential to effective major system program management within the structure of DoD acquisition management. It further focuses on the decisions and problems facing the acquisition manager, the various forces at work within industry and government, and the impact of acquisition policies and strategies. Student input includes officers and civilians from all DoD Services, other federal agencies, and allied nations. Competency: Our graduates will be: Able to apply state-of-the-art acquisition concepts to acquisition scenarios. Requirements for Entry A baccalaureate degree with above-average grades is required. Completion of at least two semesters of college algebra or trigonometry is considered to be the minimum mathematical preparation. An APC of 345 is required for entry. International students should refer to the Admissions section for current TOEFL and entrance requirements. January and July Requirements for the Master of Business Administration (MBA) degree are met en route to satisfying the Educational Skills Requirements. Systems Acquisition Management Subspecialty Completion of this curriculum qualifies an Army officer for Functional Area 51 and a Marine Corps officer for MOS 9657. Department of Defense civilians are typically members of the acquisition work force as specified by the Defense Acquisition Work force Improvement Act (DAWIA). This curriculum satisfies the mandatory Defense Acquisition University (DAU) program management education required by the Defense Acquisition Work force Improvement Act (DAWIA) for Program Management through Level III and provides up to 14 additional DAU equivalencies in other functional areas. Typical Subspecialty Jobs Program ManagerDeputy Program ManagerProgram Office: ArmyAir ForceNavyMarine Corps Acquisition Category I through III (ACAT I - III) Programs Program Executive Officer (PEO) staff Matrix Organization Staff Army Materiel Command (AMC) Naval Air Systems Command (NAVAIR) Naval Sea Systems Command (NAVSEA) Air Force Systems Command Army Communications - Electronics Command (CECOM) Marine Corps Systems Command (MARCORSYSCOM) Force Development Officer Test and Evaluation Officer Acquisition Logistics Officer Director, Acquisition Career Management, Office of the Assistant Secretary of the Army (Acquisition, Logistics and Technology): ASAALT (DACM) Typical Course of Study: Curriculum 816 The 6-quarter matrix below is for US Army and USAF students. USN, USMC and international students follow a 7-quarter program. USN students may add JPME courses. International students also take IT1500 American Life and Institutions and IT1600 Communication Skills for International Officers in quarters one and two. Application Project or Thesis Educational Skills Requirements (ESR) Systems Acquisition Management - Curriculum 816 Management Fundamentals: The graduate will understand the theory of and have an ability to apply accounting, economic, mathematical, statistical, managerial, and other state-of-the-art management techniques and concepts to problem solving and decision-making responsibilities as Department of Defense managers. The graduate will have the ability to think creatively, addressing issues and problems in a dynamic, challenging environment. Advanced Leadership and Management Concepts: The graduate will have the ability to apply advanced leadership, management and operations research techniques to defense problems. This includes policy formulation and execution, strategic planning, defense resource allocation, project leadership, cost benefit and cost effectiveness analysis, federal fiscal policy, computer-based information and decision support systems, and complex managerial situations requiring comprehensive integrated leadership abilities. Program Leadership and Management Principles: The graduate will have an understanding of and will be able to apply the principles, concepts, and techniques of Program Leadership and Program Management to the acquisition of major defense weapon systems. This includes the principles of risk management and tradeoff decision analysis using Total Ownership Cost, schedule and performance dynamics from a total life cycle management perspective. Program Management Policies: The graduate will have an ability to formulate and execute defense acquisition policies, strategies, plans and procedures an understanding of the policy-making roles of various federal agencies of the executive, legislative and judicial branches of the U. S. government, particularly the Department of Defense (DoD), the General Accounting Office (GAO), congressional committees, the Office of Management and Budget (OMB) and an understanding of the strategies necessary to influence policy development and implementation. Systems and Acquisition Process: The graduate will understand the theory of and have an ability to lead program teams and manage the systems acquisition process. This involves the system life cycle process for requirements determination, research and development, funding and budgeting, procurement, systems engineering, including systems of systems, test and evaluation, manufacturing and quality control, integrated logistics support, ownership and disposal the interrelationship between reliability, maintainability and logistics support as an element of system effectiveness in defense system and equipment design and embedded weapon system software, particularly related to current policies and standards, software metrics, risk management, inspections, testing, integration, and post-deployment software support. Contract Management: The graduate will understand the role of the contracting process within the acquisition environment, including financial, legal, statutory, technical, and managerial constraints in the process . Business Theory and Practices: The graduate will have an understanding of the business and operating philosophies, concepts, practices and methodologies of defense industry with regard to major weapon systems acquisition, particularly the application of sound business practices. Government and Industry Budgeting and Financial Management: The graduate will have an understanding of and an ability to apply the principles of government and private organizational financing, including corporate financial structures, cost and financial accounting, capital budgeting techniques, financial analysis, and Defense financial management and budgeting processes to include the Planning, Programming, Budgeting Execution System (PPBES). Acquisition Work force: The graduate will satisfy all requirements of the Defense Acquisition Workforce Improvement Act (DAWIA) and mandatory program management courses required by the Defense Acquisition University (DAU) at Levels I, II, and III. Ethics and Standards of Conduct: The graduate will have an ability to manage and provide leadership in the ethical considerations of defense acquisition, including the provisions of procurement integrity, and to appropriately apply defense acquisition standards of conduct. Analysis, Problem Solving, and Critical Thinking: The graduate will demonstrate the ability to conduct research and analysis, and proficiency in presenting the results in writing and orally by means of an applied project and a command-oriented briefing appropriate to this curriculum. Financial Management Curriculum James (Chris) Statler, CDR, USN Code GB, Ingersoll Hall, Room 201 (831) 656-3953, DSN 756-3953 Academic Associate (837) Donald E. Summers, M. S. Code GBDs, Ingersoll Hall, Room 337 (831) 656-3632, DSN 756-3632 Financial Management - Curriculum 837 The objective of the Financial Management Curriculum is to prepare officers for business, financial, and analysis positions within the DoN and DoD. Financial Managers assist the DoNs decision-making processes at all levels by providing accurate, timely and relevant information and analysis. They are concerned with the optimal allocation of human, physical and financial resources to achieve the DoNs goals and objectives while assuring efficient and effective expenditure of public funds. Graduates of the Financial Management Curriculum will be prepared for assignment to positions in strategic planning, business analysis, financial analysis, budgeting, accounting, business and financial management, and internal control systems and auditing. Graduate courses cover topics such as financial reporting standards, cost standards, cost analysis, budgeting and financial management, internal control, auditing, management planning and control systems, strategic resource management, quantitative techniques used in planning and control, system acquisition and program management, and the Planning Programming, Budgeting Execution System (PPBES) used within the Department of Defense. Competency: Our graduates will be: Able to apply state-of-the-art financial management concepts to military management problems. Requirements for Entry A baccalaureate degree with above-average grades is required. Completion of at least two semesters of college algebra or trigonometry is considered to be the minimum mathematical preparation. An APC of 345 is required for entry. International students should refer to the Admissions section for current TOEFL and entrance requirements. January and July Requirements for the Master of Business Administration (MBA) degree are met en route to satisfying the Educational Skills Requirements. Financial Management Subspecialty Completion of this curriculum qualifies a U. S. Navy officer as a Financial Management Subspecialist, subspecialty code 3110P. Completion qualifies a U. S. Marine Corps officer for MOS 8844. Typical Subspecialty Jobs Comptroller: Naval BasesNaval Air StationsSYSCOMs Budget Analyst: Office of Budget, N-82 SYSCOMS, U. S. STRATCOM Public Works Officer: CONUSOUTCONUS Comptroller: Naval Hospitals Business Financial Managers: Program Offices Action OfficerProgram Analyst: OSD Budget Analyst: OPNAV Fiscal Officer: BUMED Budget Officer: CINPACFLTCINCLANTFLT N-82, Director, Office of Budget and Fiscal Management Division. Typical Course of Study: Curriculum 837 Curriculum elective or JPME Equivalent to DAU courses ACQ101 amp ACQ102. May be replaced by MN3331. May be replaced by GB3031 for international students. Students may elect to complete a thesis. Educational Skills Requirements (ESR) Financial Management - Curriculum 837 Subspecialty Code 3110P Management Fundamentals: The graduate will have the ability to apply quantitative techniques, accounting, economics, finance, organization theory, information technology, and other state-of-the-art management techniques and concepts to military management problems. Also, the graduate will know basic management theory and practice, embracing leadership, ethics, written and oral communication, organization design, team building, human resource management, conflict resolution, quality assurance, cost-benefit analysis, risk analysis, stakeholder analysis, and planning within military organizations, as well as military sub-units and activities. This ensures internal and external constituencies are considered in resource management. Strategic Vision and Defense Budgeting: The graduate will understand the roles of the executive and legislative branches in strategic planning, setting federal fiscal policy, allocating resources to national defense, budget formulation, budget negotiation, budget justification, and budget execution strategies, including the principles of Federal Appropriations Law. In addition, the graduate will have knowledge of all aspects of the federal, Defense, and Navy budget cycles including the Planning, Programming, Budgeting, and Execution System with emphasis on budget formulation and execution. Funds Management: In support of approved programs, the graduate will be able to manage appropriated, revolving, and non-appropriated funds in compliance with regulations of the Comptroller of the Navy and the federal government. Also, the graduate will be able to develop and review financial reports, analyze budget execution against operating and financial plans, develop alternate plans based on analyses of an activitys financial performance, and prepare recommendations or make decisions regarding the reallocation or reprogramming of funds. The guidelines of the Defense Finance and Accounting System and the Federal Accounting Standards Advisory Board are relevant. Accountability, Control, and Auditing: The graduate will be able to acquire and analyze financial data and communicate the results to a diverse audience, including maintaining an integrated financial information system and appropriate internal controls to ensure timely, accurate, and consistent financial information. In accordance with the auditing standards of the U. S. Government Accountability Office, the Defense and Navy audit organizations, and the professional standards of the American Institute of Certified Public Accountants, the graduate will learn to apply audit techniques that enforce sound internal accounting and administrative controls, safeguard defense assets, and assure the completeness and integrity of financial reports. Acquisition and Program Management: The graduate will understand the purpose and concepts, fundamentals and philosophies of the defense systems acquisition process, and the practical application of program management methods within this process. This includes systems acquisition management the systems acquisition life cycle user-producer acquisition management disciplines and activities and program planning, organizing, staffing, directing, and controlling. This satisfies the Defense Acquisition University education equivalency requirements for defense acquisition professionals as specified in Congress Defense Acquisition Workforce Improvement Act (DAWIA) Economy, Efficiency, and Effectiveness: The graduate will have the skills for solving complex and unstructured management problems in which alternatives must be identified, evaluated, and selected in accordance with economical procurement of resources, efficient utilization of resources, and effective accomplishment of overall Defense and Navy goals and objectives. This includes costbenefit analysis, systems analysis, cost estimation, value engineering, business process reengineering, and application of relevant OMB and Defense regulations. Cost Management and Analysis. The graduate will be able to design, implement, and evaluate different costing systems encountered within Defense and Navy organizations and activities, as well as those found in private sector organizations conducting business with the federal government. In addition to private sector cost management policies and practices, the graduate will understand the application of Defense unit costing guidelines to functional business areas, and the Office of Management and Budgets Cost Accounting Standards for major suppliers of goods and services to the federal government. Strategic Resource Management. The graduate will have knowledge of strategic vision and strategic core competency concepts for setting long-range goals and objectives designing programs to achieve objectives assigning individual responsibility for resource management, actions, and decision making measuring performance reporting results and evaluating and rewarding performance. This includes assessing customer needs and customer satisfaction, making recommendations, and implementing improvements in the effective delivery of goods and services to customers or users. Innovation and Creativity. The graduate will demonstrate innovation and creativity in developing solutions to complex financial, budget, and program management issues that increase program effectiveness and customer satisfaction, while controlling the efficient utilization of financial, physical, and human resources. This involves the ability to identify problems and potential concerns, providing leadership, and teaming with others in the decision making process, and obtaining support for recommended decisions or courses of action. Strategy and Policy. Officers develop a graduate-level ability to think strategically, critically analyze past military campaigns, and apply historical lessons to future joint and combined operations, in order to discern the relationship between a nations policies and goals and the ways military power may be used to achieve them. Fulfilled by completing the first of the Naval War College series leading to Service Intermediate-level Professional Military Education (PME) and Phase I Joint PME credit. Curriculum Sponsor and Educational Skill Requirements Approval Authority: Financial Management (837): Chief of Naval Operations (N8N82) Financial Management (Energy Specialty) - 838 The objective of the Financial Management 8211 Energy Specialty Curriculum is to prepare officers for business, financial, and analysis positions within the DoN and DoD and also to provide an advanced education in energy-related problem solving. Financial Managers assist the DoNs decision-making processes at all levels by providing accurate, timely and relevant information and analysis. They are concerned with the optimal allocation of human, physical, financial, and energy resources to achieve the DoNs goals and objectives while assuring efficient and effective expenditure of public funds. Graduates of the Financial Management 8211 Energy Specialty curriculum will be prepared for assignment to positions in strategic planning, business analysis, financial analysis, budgeting, accounting, business and financial management, and internal control systems and auditing. Graduate courses cover topics such as energy economics, energy strategy and policy, financial reporting standards, cost standards, cost analysis, budgeting and financial management, internal control, auditing, management planning and control systems, strategic resource management, quantitative techniques used in planning and control, system acquisition and program management, and the Planning Programming, Budgeting Execution System (PPBES) used within the Department of Defense. Competency: Our graduates will be: Able to apply state-of-the-art financial management concepts to military management problems. Requirements for Entry A baccalaureate degree with above-average grades is required. Completion of at least two semesters of college algebra or trigonometry is considered to be the minimum mathematical preparation. An APC of 345 is required for entry. International students should refer to the Admissions section for current TOEFL and entrance requirements. January and July 18 months (six quarters) Requirements for the Master of Business Administration (MBA) degree are met en route to satisfying the Educational Skills Requirements. Financial Management Subspecialty 3113-P: Financial Management with Energy Focus Typical Subspecialty Jobs AVIATORN432D FLY HRS PROGRAM SUP PLNSPEC ASST TASK FORCE ENERGYN43E LIAISON RampDN402B LOG TECH LOGISTICSSPECIAL ASSIST FOR OPER LOGS SUP LOGLOGISTICSPLNS OFF (N412) TRA PLN AVFLGTAIROPSFHP PRCM MGMTSURFACE MOBILITY PROG MGR N-82, Director, Office of Budget and Fiscal Management Division and N45, Energy and Environmental Readiness Division. Typical Course of Study: Curriculum 838 Educational Skills Requirements (ESR) Management Fundamentals Strategic Vision and Defense Budgeting Funds Management Accountability, Control and Auditing Acquisition and Program Management Economy, Efficiency, and Effectiveness Cost Management and Analysis Strategic Resources Management Innovation and Creativity Strategy and Policy and Energy Emphasis. The graduate will understand the fundamental concepts and be familiar with the basic functional areas of energy within the Department of the Navy (DON) and the Department of Defense (DOD). The graduate will be able to employ costing for energy efficiency technologies and protocols understand and compare energy generation systems and their costbenefits interpret risk and reward with regard to energy security and energy management summarize energy consumption and logistics during warfare operations demonstrate understanding of energy acquisition policy, strategy, and budgeting and be knowledgeable of energy sources including alternatives to petroleum and their costbenefits. Curriculum Sponsor and Educational Skill Requirements Approval Authority Chief of Naval Operations (N8N82) and (N45) Information Management Curriculum The Information Age has generated a revolution in the means in which we conduct business and warfare. New technologies have changed the traditional views of the marketplace, supply chain management, and logistics. As the range and complexity of computer applications have grown, the need to manage and exploit those resources has increased. This curriculum provides both the technical skills and business acumen to deal with a constantly evolving digital world. James (Chris) Statler, CDR, USN Code GB, Ingersoll Hall, Room 201 (831) 656-3953, DSN 756-3953 Code IS, Glasgow West, Room GW-3012 (831) 656-2778, DSN 756-2778 Logistics Information Technology - Curriculum 870 The Logistics Information Technology graduate shall have the knowledge skills and competencies to: 1) Manage the acquisition of Information Systems 2) Manage Information Systems and infrastructure support afloat and ashore 3) Solve Information Systems engineering and management problems individually and in teams 4) Effectively manage and lead in todays constantly changing digital world 5) Develop and implement effective strategies and policies to take advantage of technological opportunities and mitigate risk 6) Assimilate new technologies and transform organizations, processes, and strategies to compete in the marketplace or on the battlefield. These general education skill requirements are supported by the following topical educational skill requirements. Competency: Our graduates will be: Able to effectively manage Logistics Information Technology. Requirements for Entry A baccalaureate degree with above-average grades is required. Completion of at least two semesters of college algebra or trigonometry is considered to be the minimum mathematical preparation. An APC of 345 is required for entry. International students should refer to the Admissions section for current TOEFL and entrance requirements. Requirements for the Master of Business Administration (MBA) degree are met en route to satisfying the Educational Skills Requirements. Completion of this curriculum qualifies a U. S. Navy officer as a Logistics - Information Technology subspecialist (subspecialty code 1309P). The 1309P code is applicable only to Supply Corps Officers (310031053107). Typical Subspecialty Jobs Project Program Manager, Hardware Systems Command Business Systems Center, Project Officer Business Manager, PEO CIO, Acquisition Office Naval Supply Systems Command Typical Course of Study: Curriculum 870 NW3230 required for USN and USMC students completing JPME take all four Naval War College classes. Students may elect to complete a thesis. International students take American Life and Institutions (IT1500) and Communication Skills for International Officers (IT1600) in quarters 1 and 2. Educational Skills Requirements for Logistics Information Technology - Curriculum 870 Subspecialty 1309P Management Fundamentals. The graduate will have the ability to apply state-of-the-art concepts, tools, and methodologies from public management and business to manage DoNDoD organizations. This ability will be developed in course work that includes economic, statistical. mathematical, organizational, and managerial theories as well as long-range strategic planning techniques. Information Systems Technology: The officer will have a thorough knowledge of information systems management to include: 1) computer system components 2) computer networks: network architectures, protocols and standards 3) database management systems: database technologies, object-oriented databases, data warehouses, OLAP, technical and administrative issues involved in the design, implementation and maintenance of database management systems. Decision Support and Knowledge Management Systems: The student will have a thorough knowledge of problem identification, formulation, and application of systems to support decision making. The student will understand the purpose of executive information systems, group decision support systems, and contingency management systems and their potential impacts on public organizations and missions. The student will also be familiar with knowledge collection technologies designed to capture, categorize, store, retrieve and present knowledge. Computer Security: The student will gain fundamental knowledge of the methods for ensuring integrity, confidentiality, authentication, and availability of computer resources, distributed databases, and networks. Information Systems Analysis and Management: The officer will have a thorough knowledge of the following concepts to effectively manage the application of information systems to organizational goals: 1) Managerial Concepts: decision-making theory, microeconomics, marketing, operations analysis, statistics, financial management, organizational development, and research methodologies 2) Evaluation of Information Systems: cost-performance (effectiveness) analysis selection, evaluation, acquisition, installation and effective utilization of information systems hardware and software risk assessment 3) Systems Analysis and Design: information systems feasibility, life cycle management, system requirements determination, system performance evaluation, conversion and maintenance of legacy systems, post-implementation evaluation 4) Management of Information Systems: metrics evaluation, monitoring, capacity planning, human resource management, budgeting and financial control of computer centers, design of effective organization structure, understanding architectural constraints, control and security (INFOSEC) policies, and training requirements for both the user and support staff 5) Adapting to Technological, Organizational, and Economic Changes: Evaluation of potential impacts of new technology on information systems and organizational strategy. Military Applications: The officer must be able to combine analytical methods and technical expertise with operational experience for effective military applications to include: 1) DoD Decision-Making Process on Information Systems: DoD, DoN, OMB, and congressional decision making on information systems matters 2) Information Technology Acquisition Management: Acquisition policies and procedures of the DoD, including: statutory framework, acquisition planning, contracting, and the planning, programming, and budgeting system 3) Joint Professional Military Education (JPME) Level 1. Independent Research: The graduate will demonstrate the ability to conduct independent research analysis and proficiency in communicating the results in writing and orally by means of a field application study. The research in information technology and its management will include problem formulation, decision criteria specification, decision modeling, data collection and experimentation, analysis, and evaluation. Defense Management Curricula The Defense Management Curricula serve U. S. and international officers. The overriding objective of the curricula is to provide students with the analytical skills and critical thinking ability to solve problems and make decisions they confront in both operational and staff jobs. Students may design their own concentrations to meet their organizations unique staffing and operational needs. International officers in the Resource Planning and Management for International Defense curriculum blend courses from the Graduate School of Business and Public Policy and the National Security Affairs Department into an integrated Defense Resource program of study. James (Chris) Statler, CDR, USN Code GB, Ingersoll Hall, Room 201 (831) 656-3953, DSN 756-3953 Defense Business Management - Curriculum 809 Code GBSu, Ingersoll Hall, Room 209 (831) 656-2768, DSN 756-2768 This interdisciplinary curriculum integrates within the defense context coursework in accounting, economics, mathematics, communications, management theory, and operationssystems analysis. As a result, students develop the analytical, critical thinking, and problem-solving skills not only to understand and critically assess the processes by which management in a defense organization is accomplished, but also to manage and allocate wisely defense resources, evaluate written research, and analyze products of others throughout their careers. In addition, this curriculum permits students to design their own concentration. Students work with their Academic Associate to determine the concentration areas and courses that meet their sponsoring agency needs. Students are free to choose among any of the specific management areas available. For example, a student may elect to specialize in the relevant portion of a functional area, such as financial management, logistics, human resources and organization management, acquisition, or manpower and personnel analysis. Or, the student may choose to follow a general management program, which would include an overall balance of courses from many functional areas. Requirements for Entry A baccalaureate degree with above-average grades is required. Completion of at least two semesters of college algebra or trigonometry is considered to be the minimum mathematical preparation. An APC of 345 is required for entry. International students should refer to the Admissions section for current TOEFL and entrance requirements. January and July Requirements for the Master of Business Administration degree are met en route to satisfying the Educational Skills Requirements. Determined in consultation with the Academic Associate. Typical Course of Study: Curriculum 809 Students may elect to complete a thesis. Educational Skills Requirements (ESR) Defense Business Management - Curriculum 809 Management Fundamentals. The graduate will have the ability to apply quantitative techniques, accounting, economics, finance, organization theory, information technology, and other state-of-the-art management techniques and concepts to military management problems. Also, the graduate will know basic management theory and practice, embracing leadership, ethics, written and oral communication, organization design, team building, human resource management, conflict resolution, quality assurance, cost-benefit analysis, risk analysis, stakeholder analysis, and planning within military organizations, as well as military sub-units and activities. This ensures internal and external constituencies are considered in resource management. Strategic Vision and Defense Budgeting: The graduate will understand the roles of the executive and legislative branches in strategic planning, setting federal fiscal policy, allocating resources to national defense, budget formulation, budget negotiation, budget justification, and budget execution strategies, including the principles of Federal Appropriations Law. In addition, the graduate will have knowledge of all aspects of the federal, Defense, and Navy budget cycles including the Planning, Programming, Budgeting, and Execution System with emphasis on budget formulation and execution. Funds Management: In support of approved programs, the graduate will be able to manage appropriated, revolving, and non-appropriated funds in compliance with regulations of the Comptroller of the Navy and the federal government. Also, the graduate will be able to develop and review financial reports, analyze budget execution against operating and financial plans, develop alternate plans based on analyses of an activitys financial performance, and prepare recommendations or make decisions regarding the reallocation or reprogramming of funds. The guidelines of the Defense Finance and Accounting System and the Federal Accounting Standards Advisory Board are relevant. Accountability, Control, and Auditing. The graduate will be able to acquire and analyze financial data and communicate the results to a diverse audience, including maintaining an integrated financial information system and appropriate internal controls to ensure timely, accurate, and consistent financial information. In accordance with the auditing standards of the U. S. Government Accountability Office, the Defense and Navy audit organizations, and the professional standards of the American Institute of Certified Public Accountants, the graduate will learn to apply audit techniques that enforce sound internal accounting and administrative controls, safeguard defense assets, and assure the completeness and integrity of financial reports. Acquisition and Program Management. The graduate will understand the purpose and concepts, fundamentals and philosophies of the defense systems acquisition process, and the practical application of program management methods within this process. This includes systems acquisition management the systems acquisition life cycle user-producer acquisition management disciplines and activities and program planning, organizing, staffing, directing and controlling. This satisfies the Defense Acquisition University education equivalency requirements for defense acquisition professionals as specified in Congress Defense Acquisition Workforce Improvement Act (DAWIA) Economy, Efficiency, and Effectiveness: The graduate will have the skills for solving complex and unstructured management problems in which alternatives must be identified, evaluated, and selected in accordance with economical procurement of resources, efficient utilization of resources, and effective accomplishment of overall Defense and Navy goals and objectives. This includes costbenefit analysis, systems analysis, cost estimation, value engineering, business process reengineering, and application of relevant OMB and Defense regulations. Cost Management and Analysis. The graduate will be able to design, implement, and evaluate different costing systems encountered within Defense and Navy organizations and activities, as well as those found in private sector organizations conducting business with the federal government. In addition to private sector cost management policies and practices, the graduate will understand the application of Defense unit costing guidelines to functional business areas, and the Office of Management and Budgets Cost Accounting Standards for major suppliers of goods and services to the federal government. Strategic Resource Management. The graduate will have knowledge of strategic vision and strategic core competency concepts for setting long-range goals and objectives designing programs to achieve objectives assigning individual responsibility for resource management, actions, and decision making measuring performance reporting results and evaluating and rewarding performance. This includes assessing customer needs and customer satisfaction, making recommendations, and implementing improvements in the effective delivery of goods and services to customers or users. Innovation and Creativity: The graduate will demonstrate innovation and creativity in developing solutions to complex financial, budget, and program management issues that increase program effectiveness and customer satisfaction, while controlling the efficient utilization of financial, physical, and human resources. This involves the ability to identify problems and potential concerns, providing leadership, and teaming with others in the decision-making process, and obtaining support for recommended decisions or courses of action. Strategy and Policy. Officers develop a graduate-level ability to think strategically, critically analyze past military campaigns, and apply historical lessons to future joint and combined operations, in order to discern the relationship between a nations policies and goals and the ways military power may be used to achieve them. Fulfilled by completing the first of the Naval War College series leading to Service Intermediate-level Professional Military Education (PME) and Phase I Joint PME credit. Defense Systems Management-International - Curriculum 818 James Hitt, CAPT, USN Code GB, Ingersoll Hall, Room 232 (831) 656-2470, DSN 756-2470 This curriculum is designed for international students. It provides international officers with the core MBA interdisciplinary techniques of quantitative problem-solving methods, management theory, management science, economic analysis, and financial management. These skills enable the officers to manage and allocate defense resources, evaluate written research, and analyze products of others throughout their careers. The curriculum will further provide the officers with the specific functional skills required for effective leadership and defense resources management. This curriculum permits students the opportunity to design their own concentration. Concentration areas and courses are determined after consultation with the Academic Associate. The 818 program allows students to design a program of course work specific to management effectiveness in the host countrys military system. The student may elect to specialize in the relevant portion of a functional area, such as financial management, logistics, human resources and organization management, or manpower and personnel analysis. Or, the student may choose to follow a general management program, which would include an overall balance of courses from many functional areas. International students are free to choose any of the specific management curricula available. Requirements for Entry A baccalaureate degree with above-average grades is required. Completion of at least two semesters of college algebra or trigonometry is considered to be the minimum mathematical preparation. An APC of 345 is required for entry. International students should refer to the Admissions section for current TOEFL and entrance requirements. January and July Requirements for the Master of Business Administration (MBA) degree are met en route to satisfying the Educational Skills Requirements. Determined in consultation with the Academic Associate. Typical Course of Study Resource Planning and Management - International - Curriculum 820 James Hitt, CAPT, USN Code GB, Ingersoll Hall, Room 232 (831) 656-2470, DSN 756-2470 The Resource Planning and Management for International Defense curriculum is an interdisciplinary program designed exclusively for officers and civilian employees in defense agencies of other countries. The program focuses on economic analysis, the management of financial, material, and human resources, domestic and international political institutions, civil-military relations, and the role of international law. The curriculum includes a combination of existing courses within the Graduate School of Business and Public Policy and the Department of National Security Affairs, and courses especially designed for this program. In the majority of courses, international students will study and learn with U. S. students from several other management and national security affairs curricula. Requirements for Entry A baccalaureate degree with above-average grades is required. Completion of at least two semesters of college algebra or trigonometry is considered to be the minimum mathematical preparation. An APC of 345 is required for entry. International students should refer to the Admissions section for current TOEFL and entrance requirements. January and July Requirements for the Master of Business Administration (MBA) degree are met en route to satisfying the Educational Skills Requirements. Typical Course of Study: Curriculum 820 Master of Science in Management Programs James (Chris) Statler, CDR, USN Code GB, Ingersoll Hall, Room 201 (831) 656-3953, DSN 756-3953 To prepare graduates for public service in management and leadership roles in the Defense establishments of the United States or allied nations. The program prepares graduates to manage in complex organizations and to conduct rigorous analyses of organizational problems, policies, and operations. To accomplish these goals, the program places particular emphasis on developing students quantitative and analytical skills and their ability to model complex phenomena. The Master of Science in Management degree requires: Completion of a minimum of 48 credit hours of graduate-level courses, at least 12 hours of which are at the 4000 level. Completion or validation of the Management Fundamentals program, which consists of a total of 32 quarter-hours of 2000 and 3000 level courses, including a minimum of the following hours by discipline: Accounting and Financial Management Completion of an approved sequence of courses in the students area of concentration. Completion of an acceptable thesis. Approval of the candidates program by the Dean, GSBPP. MSM Management Fundamentals Educational Skill Requirement: The graduate will have knowledge and ability to apply concepts and methodologies from the fields of accounting, financial management, economics, organization, management, strategy, and quantitative methods in developing policies for leading and managing DoNDoD programs and organizations. Core Competencies: Our graduates will be: 1. Effective defense managers. 2. Effective participants in DoD policy processes. 3. Effective problem solvers 4. Responsible public servants. 5. Able to interact effectively with a diverse defense work force. 6. Effective overseers of industry participation in defense management Defense Systems Analysis - Curriculum 817 Donald E. Summers, M. S. Code GBDs, Ingersoll Hall, Room 337 (831) 656-3632, DSN 756-3632 This curriculum provides officers with the fundamental interdisciplinary techniques of quantitative problem-solving methods, behavioral and management science, economic analysis, and financial management. The curriculum educates students to evaluate others research and analysis and to develop in them sound management and leadership skills. This curriculum is an interdisciplinary program that integrates mathematics, accounting, economics, behavioral science, management theory, operationssystems analysis, and a subspecialty into an understanding of the process by which the defense mission is accomplished. Competency: Our graduates will be: Able to analyze complex military problems. Requirements for Entry A baccalaureate degree with above-average grades is required. Completion of at least two semesters of college algebra or trigonometry is considered to be the minimum mathematical preparation. An APC of 345 is required for entry. International students should refer to the Admissions section for current TOEFL and entrance requirements. January and July Requirements for the Master of Science in Management (MSM) degree are met en route to satisfying the Educational Skills Requirements. U. S. Marine Corps officers completing this curriculum fulfill the requirements for MOS 8852. Programs and Resources, Headquarters Marine Corps Typical Course of Study: Curriculum 817 Curriculum Elective Course Vvariable. May be 3000 or 4000 level course. Educational Skills Requirements (ESR) Defense Systems Analysis - Curriculum 817 Management Fundamentals. The graduate will have the ability to apply quantitative techniques, accounting, economics, finance, organization theory, information technology, and other state-of-the-art management techniques and concepts to military management problems. Also, the graduate will know basic management theory and practice, embracing leadership, ethics, written and oral communication, organization design, team building, human resource management, conflict resolution, quality assurance, cost-benefit analysis, risk analysis, stakeholder analysis, and planning within military organizations, as well as military sub-units and activities. This ensures internal and external constituencies are considered in resource management. Strategic Vision and Defense Budgeting: The graduate will understand the roles of the executive and legislative branches in strategic planning, setting federal fiscal policy, allocating resources to national defense, budget formulation, budget negotiation, budget justification, and budget execution strategies, including the principles of Federal Appropriations Law. In addition, the graduate will have knowledge of all aspects of the federal, Defense, and Navy budget cycles including the Planning, Programming, Budgeting, and Execution System with emphasis on budget formulation and execution. Modeling and Analysis: The graduate will be well-versed in applications of probability and statistics to the modeling, simulation, and analysis of military decision problems. The graduate will have gained knowledge in all aspects of analytical studies, including reviewing, critiquing, highlighting critical assumptions, recognizing strengths and weakness of applied analytical methodologies, and evaluating study recommendations. In addition, the graduate will be able to design and conduct analytical studies. This includes formulating problems, using the analytical process to define study requirements, applying appropriate analytical methodologies, and presenting the results effectively both orally and in writing. Acquisition and Program Management. The graduate will understand the purpose and concepts, fundamentals and philosophies of the defense systems acquisition process, and the practical application of program management methods within this process. This includes systems acquisition management the systems acquisition life cycle user-producer acquisition management disciplines and activities and program planning, organizing, staffing, directing and controlling. This satisfies the Defense Acquisition University education equivalency requirements for defense acquisition professionals as specified in Congress Defense Acquisition Workforce Improvement Act (DAWIA) Economy, Efficiency, and Effectiveness: The graduate will have the skills for solving complex and unstructured management problems in which alternatives must be identified, evaluated, and selected in accordance with economical procurement of resources, efficient utilization of resources, and effective accomplishment of overall Defense and Navy goals and objectives. This includes costbenefit analysis, systems analysis, cost estimation, value engineering, business process reengineering, and application of relevant OMB and Defense regulations. Cost Management and Analysis. The graduate will be able to design, implement, and evaluate different costing systems encountered within Defense and Navy organizations and activities, as well as those found in private sector organizations conducting business with the federal government. In addition to private sector cost management policies and practices, the graduate will understand the application of Defense unit costing guidelines to functional business areas, and the Office of Management and Budgets Cost Accounting Standards for major suppliers of goods and services to the federal government. Strategic Resource Management. The graduate will have knowledge of strategic vision and strategic core competency concepts for setting long-range goals and objectives designing programs to achieve objectives assigning individual responsibility for resource management, actions, and decision making measuring performance reporting results and evaluating and rewarding performance. This includes assessing customer needs and customer satisfaction, making recommendations, and implementing improvements in the effective delivery of goods and services to customers or users. Innovation and Creativity: The graduate will demonstrate innovation and creativity in developing solutions to complex financial, budget, and program management issues that increase program effectiveness and customer satisfaction, while controlling the efficient utilization of financial, physical, and human resources. This involves the ability to identify problems and potential concerns, providing leadership, and teaming with others in the decision-making process, and obtaining support for recommended decisions or courses of action. Strategy and Policy. Officers develop a graduate-level ability to think strategically, critically analyze past military campaigns, and apply historical lessons to future joint and combined operations, in order to discern the relationship between a nations policies and goals and the ways military power may be used to achieve them. Fulfilled by completing the first of the Naval War College series leading to Service Intermediate-level Professional Military Education (PME) and Phase I Joint PME credit. Curriculum Sponsor and ESR Approval Authority: Programs and Resources (PampR), HQ, USMC Manpower Systems Analysis - Curriculum 847 Ingersoll Hall, Room 204 (831) 656-2951, DSN 756-2951 The Manpower Systems Analysis Curriculum (MSA) leading to the MSM degree is designed for U. S. and international officers. Officers enrolled in the Manpower Systems Analysis curriculum at the Naval Postgraduate School undertake the challenge of an academic program designed to fill leadership and analytical roles in military manpower personnel, training, and education management. MSA subspecialists are responsible for developing and analyzing policies to ensure that the Navy and DoD are recruiting, training, utilizing and retaining personnel in the most efficient and effective ways possible. MSA is an analytical curriculum intended to develop skills necessary to perform and evaluate manpower analyses and manage the Navys Human Resource community of interest. As such, the curriculum emphasizes mathematical, statistical, and other quantitative and qualitative analysis methods. Successful completion of the curriculum yields an officer skilled in conducting manpower personnel, training, and education policy analysis. The areas covered in the MSA curriculum include an understanding of manpower, personnel, training, education policy development, managing diversity, compensation systems, enlistment supply and retention models, manpower training models, manpower requirements determination processes, career mix, enlistment and reenlistment incentives, training effectiveness measures, and hardwaremanpower trade-offs. Students gain familiarity with current models and methods of manpower analysis and economics as well as military manpower organizations, information systems and issues. The curriculum directly supports the Navy Human Resource Community of Interest. Competency: Our graduates will be: Able to analyze military manpower or personnel problems. Requirements for Entry A baccalaureate degree with above-average grades is required. Completion of at least two semesters of college algebra or trigonometry is considered to be the minimum mathematical preparation. Additional preparation in calculus and statistics is advisable. An APC of 345 is required for entry. International students should refer to the Admissions section for current TOEFL and entrance requirements. Prospective students electing MSA as a curriculum must be adequately prepared by their undergraduate course work and comfortably oriented to a quantitatively and analytically rigorous graduate curriculum. Requirements for the Master of Science in Management (MSM) degree are met en route to satisfying the Educational Skills Requirements. Completion of this curriculum qualifies an officer as a Manpower Systems Analysis Subspecialist, subspecialty code 3130P. U. S. Marine Corps officers completing this curriculum fulfill the requirements for MOS 8840. OPNAV, N-1, Chief of Naval Personnel and Subject Matter Expert, OPNAV, N14, Director of Strategic Planning and Analysis Military Personnel Plans and Policy and Headquarters - United States Marine Corps (Manpower amp Reserve Affairs) Typical Subspecialty Jobs Military Personnel Policy and Career Progression (N13) Joint Manpower Management Branch, JCS (J-1) Manpower Resources Branch, Director Total Force ProgrammingManpower (N12) Manpower and Training Analyst, DCNO (Resources, Warfare Requirements and Assessment (N801D) Manpower Plans, COMCDRPACCOMCDRLANT (N1) Naval Manpower Analysis Center (NAVMAC) Bureau of Medicine and Surgery, BUMED Marine Corps MCCDC and MampRA Headquarters - United States Marine Corps Manpower amp Reserve Affairs (MampRA) Marine Corps Combat Development Command (MCCDC) Typical Course of Study: Curriculum 847 Strategy and War Educational Skills Requirements (ESR) Manpower Systems Analysis - Curriculum 847 Subspecialty Code 3130P Management Fundamentals - Organization and Management: The graduate will have the ability to apply contemporary management principles, organizational theory, and social science methodology to the development, implementation, and management of effective MPTampE policies and programs throughout DoNDoD. The graduate will have the ability to use and understand computer systems in problem solving and will have a basic understanding of management information systems and E-Business. Budgeting and Financial Controls: The graduate will have an understanding of basic financial management practices of DoNDoD and will be able to conduct cost benefit analyses and participate in the budgetary planning of commands andor DoN programs. The graduate will have an understanding of the Planning, Programming, Budgeting Execution System (PPBES) and the ability to analyze the impact of budgetary changes on DoNDoD manpower and personnel programs and policies. Automated Data Analysis: The graduate will possess the skills in data manipulation, statistics, and exploratory data analysis to be able to formulate and execute analyses of a wide variety of manpower, personnel, and training issues. The graduate will have proficiency in computing and interactively apply a variety of methods to large-scale DoN and DoD databases. The graduate will have a working understanding of the manpower information systems. Management Fundamentals - Analytical Techniques: The graduate will be able to apply mathematical, statistical, accounting, economic and other analytical techniques and concepts to day-to-day military management issues. The graduate will be able to gather and analyze qualitative data. The graduate will also be able to use these techniques and concepts as a participant in the long-range strategic planning efforts of the Navy and DoD. Advanced Quantitative and Qualitative Analysis: The graduate will have the ability to apply a wide range of advanced organizational, economics, statistical, and mathematical techniques and concepts to manpower and personnel policies and issues. These include the use of econometric techniques in the quantitative analysis of large-scale DoNDoD manpower and personnel databases, of qualitative techniques in the analysis of survey and personnel data, of manpower decision support systems, and of Markov models in the analysis of force structure and manpower planning, forecasting, and flow models. Manpower Systems Analysis Fundamental Concepts: The graduate will have an understanding of the fundamental concepts and basic functional areas of manpower, personnel, training, and education (MPTampE) within DoNDoD as listed below, as well as an understanding of the MPTampE systems and their interrelationships. Manpower. Requirements determination billet authorizations billet costs end strength planning and total force planning and programming. Personnel. Recruiting accession plans and policies officer and enlisted community management attrition retention compensation and readiness. Training. Applications of theories of learning instructional technologies the systems approach to training evaluation of training effectiveness and cost and the relationship between training and fleet readiness. Manpower Systems Policy Analysis: The graduate will have the ability to analyze critically the strengths and weaknesses of proposed manpower, personnel, and training policies and to suggest alternatives that recognize the potential impact on DoNDoD program planning, resources, and objectives. Joint Military Strategic Planning: The graduate will have an understanding of the development and execution of military strategy, the effects of technical developments on warfare, and the processes for formulating U. S. policy, the roles of military forces, joint planning, and current issues in the defense organization. This understanding will include expertise on the combined use of active and reserve forces in joint warfare. Evaluation, Innovation, and Creativity: The graduate will demonstrate individual initiative and creativity in the application of the skills and knowledge gained from the Manpower Systems Analysis program. The graduate will select a manpower, personnel, training, or education policy or management issue of importance to DoNDoD, develop a plan to investigate the issue, analyze all of its aspects, suggest a solution as appropriate, and report the significant findings and recommendations in writing by means of a thesis. Curriculum Sponsor and ESR Approval Authority Chief of Naval Operations (N14) Executive Degree Programs James (Chris) Statler, CDR, USN Code GB, Ingersoll Hall, Room 201 (831) 656-3953, DSN 756-3953 Executive Master of Business Administration (for Military students) - Curriculum 805 Kenneth Doerr, Ph. D. Code GBHh, Ingersoll Hall, Room 313 (831) 656-3625, DSN 756-3625 William D. Hatch II, CDR, USN (Ret.) Code GBHh, Ingersoll Hall, Room 339 (831) 656-2463, DSN 756-2463 The Executive Master of Business Administration (EMBA) is a defense-focused general management program for more senior DoN officers (805) and senior DoN civilians (see 807 curriculum). The program design and coursework capitalizes on the current managerial and leadership experience of program participants. Specifically, the EMBA goals are to provide participants with A solid background in management fundamentals Focus on financial management and acquisition knowledge and abilities Analytical and critical thinking skills to make decisions under conditions of extreme uncertainty Opportunities for interaction so that managers can learn from each other Projects and activities relevant for todays knowledge-driven, team-based environment The EMBA is a 24-month, part-time, distance learning degree program. Classes meet once a week, approximately 6-7 hours per day, depending on course units. Competencies: Our graduates will: 1. Develop a senior-level leadership mindset toward people, processes, and organizational systems. 2. Learn to think critically and analytically to make quality decisions under conditions of uncertainty. 3. Learn about defense-relevant public service values and implement decisions taken to promote those values. 4. Synthesize information from a wide range of areas to research or help guide research of a complex, defense-related problem. Requirements for Entry The program has the following admissions criteria: Undergraduate degree from an accredited four-year college or university APC of 245 (GPA gt 2.6) The 805 EMBA program entry dates are March and September (807 entry date is January). Completion of this program results in an Executive Master of Business Administration degree. Requirements for the degree are met by: Completing 39 hours of core EMBA courses, including Capstone Project courses, and 17 credit hours of an approved sequence of BPP electives, for a combined total of 56 credit hours The 17 hours of approved electives can be tailored to meet student sponsor needs and Remaining a student in quotgood academic standingquot as defined by NPS criteria. Completion of the EMBA degree program qualifies an officer for subspecialty code 3100P, Resource Management-Defense Focus. Educational Skill Requirements Approval Authority: N8N82 Typical Course of Study: Curriculum 805 Collaborative Problem Solving II Educational Skills Requirements (ESR) Executive MBA - Curriculum 805 Subspecialty Code 3100P Business Ethics and Moral Development: The graduate will understand the ethical challenges of the global Defense business environment facing senior Navy corporate business leaders and resource managers, and develop the critical thinking and analytical skills required to address complex issues. In addition, the students will develop a personal approach to achieve ethical outcomes in the decision making process. Complex Systems Thinking. The graduate will be able to diagnose complex Navy and DoD problems from a systems perspective and offer solutions that maintain system alignments. Managing and Leading Complex Change. The graduate will understand the managerial and leadership levers required to institute and manage complex change and the implementation strategies necessary to ensure change initiatives reach all organizational levels. Strategic Thinking. The graduate will have knowledge of senior-level decision-making processes under conditions of significant uncertainty within the unique context of DoD organizations. In addition, students will learn how to implement these decisions, evaluate their effectiveness, and determine steps to take if desired outcomes arent reached. Analysis for Efficiency and Effectiveness: The graduate will be able to use various statistical methods to solve complex and unstructured problems in which alternatives will be evaluated and selected based on cost and systems analysis factors. This includes the use of probability theory, decision models and decision analysis, decision trees, forecasting, and simulation to make decisions under conditions of uncertainty with competing objectives. Program Management Policies: The graduate will have an ability to execute Defense acquisition policies, strategies, plans and procedures an understanding of the policy-making roles of various federal agencies of the executive, legislative and judicial branches of the Government, particularly the Department of Defense (DoD), the General Accounting Office (GAO), congressional committees, the Office of Management and Budget (OMB) and an understanding of the strategies necessary to influence policy development and implementation. System Acquisition Process: The graduate will understand the theory of the systems acquisition process. This involves the major system life cycle process for requirements determination, research and development, funding and budgeting, procurement, systems engineering, test and evaluation, manufacturing and quality control, integrated logistics support, ownership and disposal the interrelationship between reliability, maintainability and logistics support as an element of system effectiveness in Defense systemequipment design and embedded weapon system software, particularly related to current policies and standards, software metrics, risk management, inspections, testing, integration, and post-deployment software support. Federal and Defense Budgeting. The graduate will understand the roles of the executive and legislative branches in setting FederalDefense fiscal policy, allocating resources to national defense, budget formulation, negotiation, and execution strategies. In addition, the graduate will have knowledge of all aspects of the Federal, Defense, and Navy budget cycles including the Planning, Programming, Budgeting and Execution (PPBE) process with emphasis on budget formulation and execution of the budget authority provided by Congress in response to DoD budget requests, including an evaluation of the expected benefits to be derived under funded programs. Defense Financial Management. The graduate will understand how appropriated, revolving, and non-appropriated funds are to be managed in compliance with regulations of the Comptroller of the Navy and the federal government. Also, the graduate will understand and be able to review financial reports, ask pointed questions about budget execution against operating and financial plans, assess the quality of alternate plans based on analyses of an activitys financial performance, and determine the quality of recommendations regarding the reallocation or reprogramming of funds. The graduate will be familiar with federal and private sector financial reporting systems, standards, and practices. Cost Management and Analysis: The graduate will be able to understand and evaluate different costing systems encountered within Defense and Navy organizations and activities as well as those found in private sector organizations conducting business with the federal government. In addition to private sector cost management policies and practices, the graduate will understand cost accounting standards applicable to Federal organizations and to private sector suppliers of goods and service to the federal government. Defense Economics. The graduate will be able to apply the fundamental tools of micro - and macroeconomic theory to Defense management and resource allocation decisions. Additionally, the student will understand markets and their interactions with Defense acquisition and contracting processes, the national security implications of globalization, and efficiency in Defense decision making. OperationsSupply Chain Management: The graduate will understand the management of manufacturing and service operations and how Defense managers can effectively design and control operational processes to achieve world-class performance in these types of operations. The student will also have a knowledge of the use of strategic purchasing initiatives to derive a competitive advantage from Defense procurement and sourcing strategies to achieve increased efficiency and enhanced performance in the global Defense and commercial supply chain management environments. Evaluation, Innovation, and Creativity: The graduate will demonstrate innovation and creativity in developing solutions to complex financial, budgetary, personnel, program management, or acquisition issues in response to the business need of a senior naval clientstakeholder. This involves the ability to identify and evaluate problems or opportunities, team with others to conduct in-depth analysis, and recommend courses of action for the client to better execute assigned Navy responsibilities. The solutions will be given to the client in a formal presentation and a technical report. Executive Master of Business Administration (for Civilian students) - Curriculum 807 Kenneth Doerr, Ph. D. Code GBHh, Ingersoll Hall, Room 313 (831) 656-3625, DSN 756-3625 William D. Hatch II, CDR, USN (Ret.) Code GBHh, Ingersoll Hall, Room 339 (831) 656-2463, DSN 756-2463 The Civilian Executive Master of Business Administration (EMBA) is a defense-focused general management program for more senior DoN civilians. The program design and coursework capitalizes on the current managerial and leadership experience of program participants. Specifically, the EMBA goals are to provide participants with A solid background in management fundamentals Focus on financial management and acquisition knowledge and abilities Analytical and critical thinking skills to make decisions under conditions of extreme uncertainty Opportunities for interaction so that managers can learn from each other Projects and activities relevant for todays knowledge-driven, team-based environment The Civilian EMBA is a 24-month, part-time, distance learning degree program. Classes meet once a week, approximately 6-8 hours per day, depending on course units. Competencies: Our graduates will: 1. Develop a senior-level leadership mindset toward people, processes, and organizational systems. 2. Learn to think critically and analytically to make quality decisions under conditions of uncertainty. 3. Learn about defense-relevant public service values and implement decisions taken to promote those values. 4. Synthesize information from a wide range of areas to research or help guide research of a complex, defense-related problem. Requirements for Entry The program has the following admissions criteria: GS-12 and above or equivalent Undergraduate degree from an accredited four-year college or university APC of 245 (GPA gt 2.6) The Civilian EMBA program entry date is January. Completion of this program results in an Executive Master of Business Administration degree. Requirements for the degree are met by: Completing 39 hours of core EMBA courses, including Capstone Project courses, and 17 credit hours of an approved sequence of BPP electives, for a combined total of 56 credit hours The 17 hours of approved electives can be tailored to meet student sponsor needs and Remaining a student in quotgood academic standingquot as defined by NPS criteria. Educational Skill Requirements Approval Authority: N8N82 Typical Course of Study: Curriculum 807 Collaborative Problem Solving II Educational Skills Requirements (ESR) Civilian Executive MBA - Curriculum 807 Business Ethics and Moral Development: The graduate will understand the ethical challenges of the global Defense business environment facing senior Navy corporate business leaders and resource managers, and develop the critical thinking and analytical skills required to address complex issues. In addition, the students will develop a personal approach to achieve ethical outcomes in the decision making process. Complex Systems Thinking. The graduate will be able to diagnose complex Navy and DoD problems from a systems perspective and offer solutions that maintain system alignments. Managing and Leading Complex Change. The graduate will understand the managerial and leadership levers required to institute and manage complex change and the implementation strategies necessary to ensure change initiatives reach all organizational levels. Strategic Thinking. The graduate will have knowledge of senior-level decision-making processes under conditions of significant uncertainty within the unique context of DoD organizations. In addition, students will learn how to implement these decisions, evaluate their effectiveness, and determine steps to take if desired outcomes arent reached. Analysis for Efficiency and Effectiveness: The graduate will be able to use various statistical methods to solve complex and unstructured problems in which alternatives will be evaluated and selected based on cost and systems analysis factors. This includes the use of probability theory, decision models and decision analysis, decision trees, forecasting, and simulation to make decisions under conditions of uncertainty with competing objectives. Program Management Policies: The graduate will have an ability to execute Defense acquisition policies, strategies, plans and procedures an understanding of the policy-making roles of various federal agencies of the executive, legislative and judicial branches of the Government, particularly the Department of Defense (DoD), the General Accounting Office (GAO), congressional committees, the Office of Management and Budget (OMB) and an understanding of the strategies necessary to influence policy development and implementation. System Acquisition Process: The graduate will understand the theory of the systems acquisition process. This involves the major system life cycle process for requirements determination, research and development, funding and budgeting, procurement, systems engineering, test and evaluation, manufacturing and quality control, integrated logistics support, ownership and disposal the interrelationship between reliability, maintainability and logistics support as an element of system effectiveness in Defense systemequipment design and embedded weapon system software, particularly related to current policies and standards, software metrics, risk management, inspections, testing, integration, and post-deployment software support. Federal and Defense Budgeting. The graduate will understand the roles of the executive and legislative branches in setting FederalDefense fiscal policy, allocating resources to national defense, budget formulation, negotiation, and execution strategies. In addition, the graduate will have knowledge of all aspects of the Federal, Defense, and Navy budget cycles including the Planning, Programming, Budgeting and Execution (PPBE) process with emphasis on budget formulation and execution of the budget authority provided by Congress in response to DoD budget requests, including an evaluation of the expected benefits to be derived under funded programs. Defense Financial Management. The graduate will understand how appropriated, revolving, and non-appropriated funds are to be managed in compliance with regulations of the Comptroller of the Navy and the federal government. Also, the graduate will understand and be able to review financial reports, ask pointed questions about budget execution against operating and financial plans, assess the quality of alternate plans based on analyses of an activitys financial performance, and determine the quality of recommendations regarding the reallocation or reprogramming of funds. The graduate will be familiar with federal and private sector financial reporting systems, standards, and practices. Cost Management and Analysis: The graduate will be able to understand and evaluate different costing systems encountered within Defense and Navy organizations and activities as well as those found in private sector organizations conducting business with the federal government. In addition to private sector cost management policies and practices, the graduate will understand cost accounting standards applicable to Federal organizations and to private sector suppliers of goods and service to the federal government. Defense Economics. The graduate will be able to apply the fundamental tools of micro - and macroeconomic theory to Defense management and resource allocation decisions. Additionally, the student will understand markets and their interactions with Defense acquisition and contracting processes, the national security implications of globalization, and efficiency in Defense decision making. OperationsSupply Chain Management: The graduate will understand the management of manufacturing and service operations and how Defense managers can effectively design and control operational processes to achieve world-class performance in these types of operations. The student will also have a knowledge of the use of strategic purchasing initiatives to derive a competitive advantage from Defense procurement and sourcing strategies to achieve increased efficiency and enhanced performance in the global Defense and commercial supply chain management environments. Evaluation, Innovation, and Creativity: The graduate will demonstrate innovation and creativity in developing solutions to complex financial, budgetary, personnel, program management, or acquisition issues in response to the business need of a senior naval clientstakeholder. This involves the ability to identify and evaluate problems or opportunities, team with others to conduct in-depth analysis, and recommend courses of action for the client to better execute assigned Navy responsibilities. The solutions will be given to the client in a formal presentation and a technical report. Executive Degree Programs James (Chris) Statler, CDR, USN Code GB, Ingersoll Hall, Room 201 (831) 656-3953, DSN 756-3953 Master of Science in Contract Management (DL) - Curriculum 835 Matthew Kremer, CDR, USN, M. S. Code GB, Ingersoll Hall, Room 203 (831) 656-6397, DSN 756-6397 Christina Hart, Ph. D. Code GB, Ingersoll Hall, Room 318 (831) 656-6269 DSN 756-6269 The Master of Science in Contract Management (MSCM) degree is designed to provide civilians in the Department of Defense (DoD) and other federal government agencies an advanced education in the concepts, methodologies and analytical techniques necessary for successful management of acquisition and contracting within complex organizations. The curriculum focuses on problem solving and decision making within the acquisition environment utilizing case studies, teaming exercises, hands-on applications, active participation, and other similar activities. Lecture and laboratory tasks require the application of critical thinking to problem solving within actual situations. The MSCM Program embodies an interdisciplinary approach to problem solving and analysis, including quantitative financial analysis, economics, and public and private sector operations. The curriculum is designed to provide civilians with the knowledge, skills, and abilities to manage and lead effectively in systems buying offices, field contracting offices, contract administration offices, and contracting policy offices. Competencies: Our graduates will be effective contract managers. Requirements for Entry Candidates for the program must have achieved the following: a baccalaureate degree with a minimum undergraduate quality point rating (QPR) of 2.20. January, April, July, October. (Dependent on cohort availability) Eight Distance-Learning Quarters Navy Department civilians may apply for the MSCM by submitting an online application, and adhere to your service or agency application process. For further information, contact the Academic Associate for this curriculum or the Program Officer. The Master of Science in Contract Management degree requires: Completion of a minimum of 48 credit hours of graduate-level courses, at least 12 that are at the 4000 level. (Credit hour requirement does not include 4 hours assigned for the Joint Applied Project.) Completion of an acceptable Joint Applied Project, with at least one advisor from the Graduate School of Business and Public Policy. Approval of the candidates program by the Dean, Graduate School of Business and Public Policy. Typical Course of Study: Curriculum 835 Joint Applied Project Educational Skills Requirements (ESR) Contract Management - Curriculum 835 Advanced Management Concepts. The graduate will have the ability to apply advanced management theory and techniques to problems in both the public and private sectors. This includes policy formulation and execution, strategic planning, resource allocation, federal fiscal policy, computer-based information and decision support systems, and complex managerial situations requiring comprehensive integrated approaches. The graduate will have the ability to apply state-of-the-art management concepts and practices to problem solving and decision-making responsibilities as middle and senior managers. Acquisition and Contracting Principles. The graduate will have an understanding of and will be able to apply the principles and fundamentals of acquisition and contracting within the federal government including knowledge of the acquisition laws and regulations, particularly the Federal Acquisition Regulation (FAR) and the Defense FAR Supplement (DFARS) the unique legal principles applied in government contract law and the Uniform Commercial Code and the application of sound business principles and practices to Defense contracting problems. Further, the graduate will be able to apply innovative and creative approaches not only to resolve difficult acquisition and contracting issues but to significantly influence the legal and regulatory structure within which acquisition decision making occurs. Finally, the graduate will have the ability to conceptualize, develop and execute strategic business alliances and relationships necessary to the successful acquisition of goods and services. Contracting Process. The graduate will understand the theory of and have the ability to manage the field contracting, system acquisition and contract administration processes. This involves a knowledge of the defense system life cycle processes, including requirements determination, funding, contracting, ownership, and disposal an ability to evaluate military requirements, specifications, and bids and proposals an ability to utilize the sealed bid, competitive proposals and simplified acquisition methodologies a comprehensive knowledge of all contract types and their application in Defense acquisition an ability to conduct cost and price analyses and an ability to negotiate various contracting actions including new procurement, contract changes and modifications, claims, equitable adjustment settlements, and noncompliance issues. Acquisition and Contracting Policy. The graduate will have an ability to formulate and execute acquisition policies, strategies, plans and procedures a knowledge of the legislative process and an ability to research and analyze acquisition legislation and a knowledge of the government organization for acquisition, including Congress, the General Accounting Office, the Office of Federal Procurement Policy, the federal and military contracting offices, the Boards of Contract Appeals, and the court system. Business Theory and Practices. The graduate will have an understanding of the business philosophy, concepts, practices and methodologies of the commercial industrial base (both domestic and global) and the ability to apply these to the federal government acquisition environment. Defense Financial Management and Budgeting. The graduate will have an ability to apply sound financial management theories, principles and practices to defense acquisition and contracting issues, including fiscal and monetary policy. Production and Quality Management. The graduate will have an understanding of principles and fundamentals of Production and Quality Management, with particular emphasis on the Procuring Contracting Officers and Administrative Contracting Officers roles and relationships with industry and the Government Program Manager. Analysis and Application. The graduate will demonstrate an ability to apply acquisition, contracting and management principles in dealing with the significant issues encountered in managing the contracting process in one of the following areas: (1) major weapon systems acquisition, (2) research and development, (3) field procurement, and (4) facilities contracting. Ethics and Standards of Conduct. The graduate will have an ability to manage and provide leadership in the ethical considerations of military acquisition, including the provisions of procurement integrity, and to appropriately apply Defense acquisition standards of conduct. Acquisition Work force. The graduate will satisfy all requirements of the Defense Acquisition Workforce Improvement Act (DAWIA) and mandatory contracting courses required by the Defense Acquisition University (DAU) at Level III. Analysis, Problem Solving and Critical Thinking. The graduate will demonstrate the ability to conduct independent research and analysis, and proficiency in presenting the results in writing and orally by means of a thesis and a command-oriented briefing appropriate to this curriculum. Master of Science in Program Management (MSPM) - Curriculum 836 Code GBNb, Ingersoll Hall, Room 206 (831) 656-3620, DSN 756-3620 Christina Hart, Ph. D. Code GB, Ingersoll Hall, Room 318 (831) 656-6269 DSN 756-6269 The Master of Science in Program Management (MSPM) degree is designed to provide primarily civilians (officers may participate with sufficient time on station to complete the program) in the Department of Defense (DoD), other federal agencies, and a limited number of DoD contractor personnel, an advanced education in the concepts, methodologies and analytical techniques necessary for successful management of programsprojects within complex organizations. The curriculum focuses on leadership, problem solving and decision making within the acquisition environment utilizing case studies, teaming exercises, hands-on applications, active participation and integrative exercises. Lecture and laboratory tasks require the application of critical thinking to problem solving within notional and actual situations. Student input includes civilians (officers) from all DoD services and other federal agencies. The curriculum is designed to provide graduates with the knowledge, skills and abilities to manage and lead effectively in the federal government acquisition environment. Competencies: Our graduates will: 1. Be effective managers of defense organizations. 2. Be effective participants in DoD policy making. 3. be leaders and program managers in the DoD acquisition system. Requirements for Entry Candidates for the program must have achieved the following: a baccalaureate degree with a minimum undergraduate quality point rating (QPR) of 2.20 full certification at Level II or higher in any discipline under the provisions of the Defense Acquisition Workforce Improvement Act (DAWIA) (or equivalent certification for non-DoD personnel). In addition to institutional funding support, students must also provide a command endorsement letter of support from their command or home organization. April and October (dependent on sufficient demand) Eight Distance-Learning Quarters The Master of Science in Program Management degree requires: Completion of a minimum of 48 credit hours of graduate-level courses, at least 12 which are at the 4000 level. Completion of an acceptable joint applied project, with at least one advisor from the Graduate School of Business and Public Policy. Approval of the candidates program by the Dean, Graduate School of Business and Public Policy. The Curriculum Sponsor is the Director, Acquisition Career Management (DACM) in the Office of the Assistant Secretary of the Army (Acquisition, Logistics and Technology). The curriculum satisfies the mandatory Level III Defense Acquisition University (DAU) in Program Management and provides numerous other DAU certifications satisfying requirements of the Defense Acquisition Workforce Improvement Act (DAWIA) and provides qualifying training and education for critical acquisition positions. (For those who have not already obtained certification in the Test amp Evaluation Systems Engineering and ManufacturingProduction, Quality Assurance career fields, this program achieves Level II in these career fields, as well as satisfying Intermediate Software Acquisition Management (SAM 201)). Typical Course of Study: Curriculum 836 Joint Applied Project Educational Skills Requirements (ESR) Program Management - Curriculum 836 Management Fundamentals. The graduate will understand the theory of and have an ability to apply accounting, economic, mathematical, statistical, managerial and other state-of-the-art management techniques and concepts to problem solving and decision-making responsibilities as Department of Defense managers. The graduate will have the ability to think creatively, addressing issues and problems in a dynamic, challenging environment. Advanced Leadership and Management Concepts. The graduate will have the ability to apply advanced leadership, management and operations research techniques to defense problems. This includes policy formulation and execution, strategic planning, defense resource allocation, project leadership, cost benefit and cost effectiveness analysis, federal fiscal policy, computer-based information and decision support systems, and complex managerial situations requiring comprehensive integrated leadership abilities. Program Leadership and Management Principles. The graduate will have an understanding of and will be able to apply the principles, concepts, and techniques of Program Leadership and Program Management to the acquisition of major defense weapon systems. This includes the principles of risk management and tradeoff decision analysis using Total Ownership Cost, schedule and performance dynamics from a total life cycle management perspective. Program Management Policies. The graduate will have an ability to formulate and execute Defense acquisition policies, strategies, plans and procedures an understanding of the policy-making roles of various federal agencies of the Executive, Legislative and Judicial branches of the Government, particularly the Department of Defense (DoD), the General Accounting Office (GAO), Congressional committees, the Office of Management and Budget (OMB) and an understanding of the strategies necessary to influence policy development and implementation. Systems Acquisition Process. The graduate will understand the theory of and have an ability to lead program teams and manage the systems acquisition process. This involves the system life cycle process for requirements determination, research and development, funding and budgeting, procurement, systems engineering, including systems of systems, test and evaluation, manufacturing and quality control, integrated logistics support, ownership and disposal the interrelationship between reliability, maintainability and logistics support as an element of system effectiveness in Defense systemequipment design and embedded weapon system software, particularly related to current policies and standards, software metrics, risk management, inspections, testing, integration, and post-deployment software support. Contract Management. The graduate will understand the role of the contracting process within the acquisition environment including financial, legal, statutory, technical and managerial constraints in the process. Business Theory and Practices. The graduate will have an understanding of the business and operating philosophies, concepts, practices and methodologies of the defense industry with regard to major weapon systems acquisition, particularly the application of sound business practices. Government and Industry Budgeting and Financial Management. The graduate will have an understanding of and an ability to apply the principles of government and private organizational financing including corporate financial structures, cost and financial accounting, capital budgeting techniques, financial analysis, and Defense financial management and budgeting processes to include the Planning, Programming, Budgeting Execution System (PPBES). Acquisition Workforce. The graduate will satisfy all requirements of the Defense Acquisition Workforce Improvement Act (DAWIA) and mandatory Program Management courses required by the Defense Acquisition University (DAU) at Levels I, II, and III. Ethics and Standards of Conduct. The graduate will have an ability to manage and provide leadership in the ethical considerations of defense acquisition, including the provisions of procurement integrity, and to appropriately apply defense acquisition standards of conduct. Analysis, Problem Solving and Critical Thinking. The graduate will demonstrate the ability to conduct research and analysis, and proficiency in presenting the results in writing and orally by means of an applied project and a command-oriented briefing appropriate to this curriculum. Curriculum Sponsor and ESR Approval Authority 836 U. S. Army ASAALT (DDACM) Non-Degree Professional Development Programs The Graduate School of Business and Public Policy also administers several non-degree professional development programs consisting of both graduate education and professional courses taught in residence or via distance learning modes. Below is a brief explanation of each program. Certificate in Stability, Security and Development in Complex Operations - Curriculum 210 Karen Guttieri, Ph. D. Quarters E Building 279 The purpose of the program is to provide a professional education program to the civil affairs community focusing on the relevant, requisite skills identified by the Department of Defense, as necessary for implementing Irregular Warfare, on a global scale. NPS faculty have studied post-911 shifts in operational environments and adaptations in the various CA doctrines, force structure, training and deployments. This program develops a conceptual framework for analyzing key civil affairs and psychological operations and provides graduate level education to participants in order to enhance their effectiveness as they plan and execute complex operations. The program aims to capture civil affairs and psychological operations operational and tactical innovations, and resulting lessons. Requirements for Entry A baccalaureate degree with above-average grades is desired. An academic profile code of 365 is required. DL: 15 Oct821124 Nov IR: 27 Nov821121 Dec DL: 14 Jan821123 Feb IR: 25 Feb821122 Mar DL: 1 Apr821111 May IR: 13 May821131 May DL: 24 Jun82113 Aug IR: 5 Aug821130 Aug Graduate Certificate Requirements Requirements for the Certificate in Stability, Security, and Development in Complex Operations are met by successful completion of all three courses. The Security, Stability and Development in Complex Operations (SSDCO) Certificate Program consists of three courses delivered in hybrid residence status. Phase one of the certificate involves distance learning over a three to four week period. Phase two entail four weeks of intensive in-residence coursework. Phase three of the certificate includes three to four weeks of distance learning to complete required coursework for course grade (as opposed to a passfail). The program content and projects challenges the student academically and addresses problems of interest to the DoD with specific emphasis on the challenges of civil-military relations and human dynamics. Advanced Acquisition Program (AAP) - Certificate in Program Management - Curriculum 211 Code GBDj, Ingersoll Hall, Room 336 (831) 656-2650, DSN 756-2650 The Advanced Acquisition Program (AAP) is a 12-month, part-time, distance learning graduate certificate program that can also earn graduate credit toward NPS masters degree programs. Designed for both the DoD acquisition workforce and other professionals working with system acquisition and program management processes, the Advanced Acquisition Program provides a flexible, on-site alternative for education and Defense Acquisition Workforce Improvement Act (DAWIA) Program Management Level III certification. The AAP provides Acquisition Professionals and those associated with the DoD acquisition process an education resource for achieving DAWIA Level III Certification in Program Management with no student travel. This program is funded by the students parent command, and is designed to accommodate professionals who are unable to travel away from the office for weeks of education. Schedules are coordinated with sponsoring commands, avoiding conflicts with major projects and deadlines The AAP is a three-phased graduate certificate program of seven courses delivered over four NPS academic quarters. While the three phases must be completed in sequence, there is no requirement to complete them in the normal one-year timeframe (four academic quarters). AAP is a graduate-level program of in-depth acquisition and program management education, earning successful students 19.5 graduate credit hours towards a masters degree. It also provides DoD students with up to 195 hours of Continuous Learning under the USD (ATampL) Continuous Learning Program (CLP), 31.5 Continuing Education Units (CEU), 6.33 Business Credits toward the requirement for 24 for the GS-1102 series. The combined courses are equivalent to Defense Acquisition Universitys ACQ101, ACQ201, PMT250 and PMT352. Requirements for Entry A baccalaureate degree with above-average grades is desired. At the beginning of any quarter throughout an academic year (Jan, Apr, Jul, Oct). Graduate Certificate Requirements Requirements for the graduate certificate in program management are met by successful completion of all seven courses. Graduate credit is obtained by maintenance of a 3.0 grade point average on a 4.0 scale. Should a graduate of the Advanced Acquisition Program matriculate into the Master of Business Administration degree program in the Systems Acquisition Management (816) curriculum, or the Master of Science in Program Management (836), graduate credit for AAP courses will be applied to the curricula as appropriate. U. S. Army Tank Automotive Command, Warren, MI U. S. Army Soldier Support Center, Natick, MA U. S. Navy Undersea Warfare Center, Newport, RI U. S. Navy Surface Warfare Center, Dahlgren, VA. The program is administered with a phased approach: Phase I is a full-quarter distance-learning course taught via VTC (6 hours in class per week) concentrating on Acquisition and Program Management breadth. Students who have completed ACQ101, 201, and PMT250 can omit this phase. Phase II is a series of five one-week courses (40 hours in class per week) taught on-site at the command. Phase III is a full-quarter, distance-learning course taught via VTC (4 hours of class per week) concentrating on Program Leadership through examination of case studies from actual Defense systems, IPT exercises, and application and written analysis of program management concepts. Required Courses: Curriculum 211 Acquisition Management Distance Learning Program (AMDLP) - Curriculum 212 Christina Hart, Ph. D. Code GB, Ingersoll Hall, Room 318 (831) 656-6269 DSN 756-6269 The Naval Postgraduate School offers acquisition management distance education graduate acquisition courses that satisfy certain Defense Acquisition University (DAU) mandatory training requirements and Defense Acquisition Workforce Improvement Act (DAWIA) requirements for 24 semester-hours of business subjects. These courses can also be taken for continuing education that can lead to a masters degree program. These courses are offered primarily by video tele-education (VTE) distance learning methods. Requirements for Entry Courses are offered to both military and federal civilians. Undergraduate degree is preferred. Courses must be sponsored in full by a federal organization. Organizations interested in sponsoring courses must have a standards-based H.320- compatible system with a dial-up network capability at 384KPS (3- ISDN lines). The NPS AMDLP program manager can help arrange cost sharing partnerships between various interested organizations. Contact the AMDLP program manager for more information and the latest price list. Available Program of Courses NPSDAU equivalent courses are listed in the below matrix. Advanced Principles of Defense Acquisition and Program Management DAU: ACQ101201, PMT250 Available: Every quarter Fundamental Principles of Defense Acquisition and Program Management Available: Every quarter Advanced Principles of Defense Acquisition and Program Management Available: Every quarter Fundamental Principles of Government Acquisition and Contracting DAU: CON90. 100, 121, 124 and 127 Management Functions and Decision-making Techniques for Best Value Competitively Negotiated Contracts Examination of the Federal Government Legal Structure for Contracts with Private Industry Concepts, Processes and Methods of Strategic Logistics Planning and Execution Principles and Concepts of Production and Quality Management in Defense Acquisition Management of Mission Critical Computer Resources In defense Software Acquisition Systems Engineering in the Defense Acquisition and Project Management Environment Management of Advanced Systems Engineering Available: Every Quarter Test and Evaluation of Defense Weapon Systems Army Cost Management Certificate (DL) - Curriculum 214 (Inactive) Teresa (Terry) Rea Code GB, Ingersoll Hall, Room 231A (831) 656-7962, DSN Program: This program is closed to new admissions. Previous catalog descriptions of this program are found in the Past Edition Archives at this link: nps. eduAcademicsAdmissionsRegistrarAcademicCatalog. Certificate in Civil Military Operations and the Rule of Law (Res amp DL) - Curriculum 215 Paula Philbin, Ph. D. Ingersoll Hall, Room 364B Well-functioning justice institutions and government bound by the rule of law are vital to security and development. America8217s interest in the rule of law abroad is expressed in the 2010 US National Security Strategy, calling for the US to quotimprove its capability to strengthen the security of states at risk of conflict and violence, quot including internal, external, and regional security, quotrespect for human rights and the rule of lawquot and quotadministrative and oversight capability of civilian security sector institutions, and the effectiveness of criminal justice. quot The 2010 Quadrennial Defense Review calls Civil Affairs quotthe vanguardquot of Defense Department support to US government agency assistance to partner nations in the rule of law. The goal of this certificate program is to provide Civil Affairs, Psychological Operations, and related rule of law practitioners with the knowledge and skills needed in order to provide effective support to rule of law missions in a variety of operational environments, from conflict prevention to post-conflict stabilization. The three courses comprising the program are integrated in order to educate students on the rule of law at all levels, including international conventions, national and regional rule of law systems, and local governance and traditional rule of law mechanisms. Civil Military Operations and the Rule of Law is a graduate certificate that complements the NPS program Stability, Security and Development in Complex Operations (SSDCO). These hybrid distributedin-residence program are particularly tailored to the needs of Reserve personnel. Requirements for Entry Applicants for the CMO and Rule of Law program must have an earned bachelors degree from a regionally accredited academic institution, and in the absence of a waiver, the NPS certificate in Stability, Security and Development in Complex Operations (SSDCO). While GSBPP will accept applications from virtually all undergraduate major fields, admissions decisions will primarily be based on adequate performance in social science and humanities classes. The program is sponsored by the United States Army Civil Affairs and Psychological Operations Command. We welcome related rule of law practitioners on a space-available basis. Graduate Certificate Requirements Requirements for the Certificate in Civil Military Operations and the Rule of Law are met by successful completion of all three courses. Distributed learning: Ap. 1 - May 11 In-residence: May 13-31 Place-holder. Do not remove. ltGB1000 - GB3510 Coursesgt GB1000 Quantitative Skills for Graduate Management Studies (0-3) WinterSummer This course is intended to help prepare students in the Graduate School of Business and Public Policy. The objective of the course is to reduce student8217s difficulties with quantitative tools in core courses, and allow them to focus on subsequent course materials. This is achieved through problem solving sessions that ensures the student has proficiency in basic pre-algebra, algebra, and graph-readingdrawing skills as demonstrated by weekly exams. GB2000 MBA Group Meetings (0-2) WinterSummer GB3010 Managing for Organizational Effectiveness(4-0) WinterSummer Organizations, including defense organizations, are complex, purposive, open systems. As open systems, they face challenges of external adaptation and effectiveness and of internal coherence and efficiency. Our purpose is to understand the structures and processes that make up organizations in order to appreciate how they succeed and why they falter or fail. Our focus is on organizational diagnosis, which requires us to apply relevant theories to evaluate organizational performance. To do this, we will examine topics that include: organizational structure, motivation and reward systems, organizational culture, power and conflict, effective teams, and the leadership characteristics involved in effectively managing todays organizations. Although these topics are relevant to all organizations, we will pay special attention to their application in the context of the DoD and military organizations. Prerequisite: Enrollment in GSBPP Degree Program. GB3012 Communication for Managers (3-0) WinterSummer This course provides DoD and international military officers and civilians with the communication strategies and skills to manage and lead in the dynamic DoD environment. Instruction focuses on assessing various communication models, making strategic media choices, writing effective informative documents, developing associates communication competencies through various feedback roles, and giving lucid briefings. Prerequisite: GB3010 Open to MBA students, or by consent of instructor. GB3014 Ethics for Public Managers (1-0) WinterSummer An introduction to problem analysis and moral reasoning in the context of business, commerce, and government service. Ethics is distinguished from routine requirements of legal compliance by emphasizing how classical forms of moral reasoning (such as utilitarianism, and the ethics of duty) can address and help resolve practical problems and case studies drawn from recent practice about which the law itself is largely silent. Free enterprise conceptions of profit-making are compared with government and public service conceptions of acquisition and contracting. Enrollment limited to 30 students per course section. Written assignments and final exam required. Five weeks of instruction (10 hours: 1-0). Prerequisite: none. GB3030 Marketing Management (3-0) FallSpring Focuses on managerial skills, tools and concepts required to produce a mutually satisfying exchange between consumersusers organizations and providers of goods, services and ideas. Emphasis on understanding the marketplace, individual parts of the marketing program (product, pricing, distribution and communication), and strategic formulation (orientation, target segmentation, positioning). GB3031 Acquisition Management for International Students (3-0) FallSpring This is the MBA core acquisition course for MBA international students in non-acquisition curricula. It introduces principles of public procurement management by examining acquisition policy issues, management strategies, contracting decisions, and contract management processes. Major international procurement models and systems will be introduced, including the US Federal Acquisition Regulation, Transparency Internationals Integrity Pacts, the UN Model Law on Procurement, the EU Public and Defense Procurement Directives, the World Bank Procurement and Integrity Guidelines, and the World Trade Organization Agreement on Government Procurement. Concepts, strategies and tools for planning, organizing, staffing, directing and controlling acquisition programs are examined. Acquisition topical areas include: anti-corruption measures, acquisition planning, the competition requirements, source selection, risk management, quality assurance, protests, transparency and publicity mechanisms, research and development, and contracting management. While the US defense acquisition system may be examined for comparative purposes, the major emphasis through case studies and readings is on international perspectives and issues. Another major emphasis of the course is on Foreign Military Sales (FMS) and the application of international procurement law concepts to the FMS process. Prerequisite: None. GB3040 Managerial Statistics (4-0) FallSpring GB3040 is an introduction to the science and art of converting data into information for managerial and policy analysis. This course focuses on the descriptive and inferential statistical concepts useful for conducting basic managerial and policy analysis. Topics include measurement scales, descriptive statistics for quantitative and qualitative data, basic probability concepts and distributions, sampling theory and sample design, sampling distributions, point and interval estimation, hypothesis testing, goodness-of-fit tests, contingency table tests, correlation analysis, and multiple regression analysis. Excel statistical tools will be utilized for data analysis and presentation. Follow-on courses in GSBPP will build on the statistical foundations in GB3040. Prerequisites: College algebra and knowledge of Excel. Open to MBA students, or by consent of instructor. GB3042 Operations Management (4-0) WinterSummer 8220Operations Management8221 is defined as the design, operation, and improvement of the operational systems that create and deliver an organization8217s primary products and services. Accordingly, this course is about the fundamentals of managing manufacturing and service operations and how DoD managers can effectively design, manage and control operational processes. The course design consists of two inter-linked modules -- (1) process analysis, and (2) process improvement and control. Within the two modules, the course addresses topics such as process description and analysis, capacity management, theory of constraints, inventory management, waiting line management (queuing models), supply chain management, enterprise resource planning, and Lean Six Sigma. Prerequisite: None. GB3050 Financial Reporting and Analysis (4-0) WinterSummer This course covers theory, concepts, and practices underlying financial Accounting and Financial Reporting. The conceptual structure underlying the reporting of economic events in the form of the balance sheet, the income statement, and the statement of cash flows is first presented. Accounting recognition and measurement issues surrounding revenues, expenses, assets, liabilities and equity are introduced and analyzed. Finally, different forms of financial analysis based on financial report information are addressed. Throughout the course, emphasis is placed on the manager or user perspective. Attention is given to the federal government financial reporting model and standards. Prerequisite: Enrollment in the GSBPP Degree Program. GB3051 Cost Management (3-0) FallSpring (DL) This course introduces students to cost management concepts and theories which are used by managers to make decisions on the allocation of financial, physical, and human resources to achieve strategic as well as short-term organizational goals and objectives and evaluate performance using financial and non-financial measures. The course is designed for those having a prior course in financial reporting and analysis or financial accounting. Cost management includes traditional tools and techniques such as cost behavior for decision making, activity costing, cost allocation, and standard costing. Prerequisite: GB3050. GB3070 Economics of The Global Defense Environment (4-0) WinterSummer (DL) This course develops the fundamental tools of microeconomics and macroeconomics, and applies them to defense management and resource allocation. The course centers on defense applications of economic theory. Topics covered include: defense and the macro economy markets and their interactions with defense acquisition and contracting national security implications of globalization and efficiency in defense decision making. Prerequisite: MA2XXX College algebra or equivalent. GB3510 Defense Financial Management Practice (3-0) FallSpring This course is designed for MBA students and presumes the student has a foundation including the PPBE system and Congressional Authorization and Appropriation processes. This course concentrates on financial management practices within DoD as distinct from policy and budgeting theory. The course covers the actors and activities and mechanics of building and defending budgets. It covers funding mechanisms for programs and activities, addressing the proper use and management of appropriated, reimbursable, and revolving funds. Basic principles of fiscal law are explored. It then addresses financial management and stewardship topics including budgetary accounting, management of cost drivers, the relationship between comptrollership and contracting, and internal controls. Contemporary financial management issues are discussed. Exercises and case studies are used to develop the students ability to apply financial management concepts to real life situations. Prerequisite: GB4053 or permission of the instructor. ltGB4014 - GB4490 Coursesgt GB4014 Strategic Management (4-0) FallSpring Strategic Management entails the establishment of an organizations direction and the implementation and evaluation of that direction in view of the organizations external environment and its internal capabilities. The principal aim of this course is the transfer and adaptation of the principles of business strategic management to the Department of Defense and other government agencies. In previous courses, students concentrated on the functional elements of management (e. g. accounting, finance, acquisition, logistics, contracting, etc.). This course addresses the challenges of setting direction and implementing strategies for the total system or whole organization. Cases and approaches from the public and private sectors enable students to develop the knowledge, skills, and abilities to strategically think, plan, and manage. Prerequisite: GB3010. GB3012 . GB4015 Management of Change (3-0) WinterSummer This course recognizes and describes the dilemmas inherent in any effort to change a human system. Emphasis is placed on strategies and technologies for planning, managing, and implementing change. The course emphasizes approaches to planning and managing change that reflect the complexity of organizations comprised of several interdependent systems--technology, structure, task, culture, and people. The course is application-oriented and intended to enhance skill development. Prerequisite: GB4014. GB4021 Strategic Management of IT (3-0) SpringFall The management of Information Technology (IT) within the government and corporate environments has become a function that is shifting from the traditional IT management structure to the General Manager. In todays environment, it is imperative to understand the importance of and unique issues related to technology. Network Centric Warfare has been deemed mission critical to the success of the military now and in the future. This course provides the student with a general understanding of the key components and underlying concepts related to the valuation of technology within organizations. Topics include e-business, e-government, strategic outsourcing, software make vs. buy decisions, business process, re-engineering with technology, and the impacts of technology on force transformation. The course is not intended to be focused on the technical aspects of technology, but rather on the impact of technology on the manner in which DoD organizations function. Prerequisite: GB3042 or onsent of instructor. GB4043 Business Modeling and Analysis (3-0) WinterSummer This course introduces mathematical modeling for a sound conceptual understanding of the decision-making process. This course familiarizes the students with applications, assumptions, and limitations of the quantitative methods in modeling. It focuses on the development of mathematical and spreadsheet models, the verification of those models, sensitivity analysis of the solutions generated from a model, and the implementation of those solutions. Some of the topics covered include linear programming, non-linear and integer programming, simulation, and forecasting. The process of modeling and particular modeling tools are applied to business problems in finance, acquisition, logistics and manpower planning. Prerequisite: GB3040 . GB4044 Defense-Focused Managerial Inquiry (3-0) FallSpring Fundamentally, this is a course in thinking critically and analytically. It is also a unique, practical opportunity for students to develop a research question, methodology, and proposal for their MBA project or masters thesis. Indeed, many students can expect to complete the initial stages of their MBA project or thesis by fulfilling the course requirement for a team-based research report. As Cooper and Schindler write: 8220Research is any organized inquiry carried out to provide information for solving problems. Business research is a systematic inquiry that provides information to guide business decisions. This includes reporting, descriptive, explanatory, and predictive studies. The managers of tomorrow will need to know more than any managers in history. Research will be a major contributor to that knowledge. Managers will find knowledge of research methods to be of value in many situations. They may need to conduct research either for themselves or for others. As buyers of research services, they will need to be able to judge research quality. Finally, they may become research specialists themselves.8221 Punch prefers to describe research as 8220organized common sense,8221 since it 8220supports the idea that good research is within the grasp of many people.8221 In this way, we can 8220simplify the more technical aspects of research methods, and enhance understanding, by showing the logic behind them.8221 This course similarly seeks to examine the logic of research methods--recognizing that these methods may differ across disciplines and subspecialties--rather than focus on detailed models or procedures that may hold little meaning for the militarys managers. It is not a course in rules or required steps rather, it is a course in understanding the principles, concepts, and range of techniques that define the craft of research. Prerequisite: None. GB4052 Managerial Finance (3-0) FallSpring This course provides an overview of the basic concepts and principles of financial management in the private sector and its implication on government contracting. It is designed to provide insights into the financial decision - making process encountered by commercial enterprises. The major emphasis is on financial environment, risk and return analysis, valuation models, cost of capital determination, optimal capital structure, and short-term and long-term financing. Prerequisite: GB3050 . GB4053 Defense Budget Policy and Financial Management Systems (4-0) WinterSummer This course analyzes the resource requirements process within the Department of Defense (DoD) and in the executive and legislative branches of the federal government. It begins with a summary of the current threat situation and potential changes to it. Once the threat is defined, the study of the resource allocation process to meet the threat begins. The course covers the resource planning and budgeting processes of the Department of the Navy, DoD and the federal government. It includes the politics of executive and congressional budgeting, and DoD budget and financial management processes and procedures including budget formulation and execution. It also includes analysis of the Planning, Programming, Budgeting Execution System (PPBES) used by DoD to plan, budget and implement national defense resource management policy and programs. Other areas included are budget process and fiscal policy reform and the dynamics of internal DoD competition for resources. Executive and congressional budget processes are assessed to indicate how national security policy is resourced and implemented through the budget process. Spending for national security policy is tracked from budget submission through resolution, authorization and appropriation. Budget formulation, negotiation, and execution strategies are evaluated to indicate the dynamics of executive-legislative competition over resource allocation priorities. Supplemental appropriation patterns and current year budget execution patterns and problems are also considered. Prerequisite: GB3010 and GB3070. or GB4070 . GB4070 Energy Economics (4-0) Spring This is an applied economics course in which microeconomic analysis will be applied to energy-related phenomena. The course begins with an introduction to basic microeconomic theories and tools, including the forces driving supply, demand, and market equilibrium. With these tools, the student will explore the fundamental issues surrounding the economics of energy production and use, and how government intervention, both at the domestic level and at the international level, influences energy markets. Specific attention is paid to the ways in which energy is similar and dissimilar to other goods and services that are traded in the economy. Throughout the course, emphasis will be placed on the practical application of economic theories and concepts to important public policy issues. The defense department is the largest consumer of energy in the federal government, and this course will equip students to be better stewards of energy resources. Prerequisites: None. GB4071 Economic Analysis and Defense Resource Allocation (4-0) FallSpring Develops the tools and techniques of economic efficiency to assist public sector decision makers in analyzing resource allocation in government activities. Focuses on developing the principles of cost-benefit analysis (CBA) and cost-effectiveness analysis (CEA). Stresses the application of CBA and CEA to specific investment projects, programs and policies in the federal government, especially in the Department of Defense. Prerequisites: GB3070 or GB4070 . GB4090 MBA Project (0-6) WinterSummer MBA Project. Prerequisite: Open to MBA students, or by consent of instructor. GB4410 Logistics Engineering (4-0) WinterSummer The concept of integrated logistics support in the design and maintenance of weapon systems. Operational requirements, reliability, system maintenance concept, functional analysis, life cycle costs, logistics support analysis, systems design, test and evaluation, production, sparerepair parts management are discussed. This course also covers topics in logistics information technology, inventory management culture and commercial-sector best practices for military. Case studies include logistics life-cycle cost, reliability and readiness analysis for major weapon systems. Prerequisite: GB3042 or equivalent. GB4430 Defense Transportation System (4-0) WinterSummer This course examines how the Defense Transportation System supports the DoD mission, including the responsibilities of USTRANSCOM and its Transportation Component Commands, CONUS transportation and strategic lift, as well as institutional constraints and other managerial issues. Prerequisite: None. GB4440 Simulation Modeling for Management Decision Making (4-0) WinterSummer Modeling and risk analysis for managerial decision making. Case studies of simulation modeling applications to weapon system acquisition, logistics, transportation, distribution, communications and production systems. Prerequisite: GB3040 or other introductory probability and statistics (may be taken concurrently). GB4450 Logistics Strategy (4-0) FallSpring DAU Equiv: LOG 304. This is the logistics capstone course. The course explores and analyzes the concepts, processes and methods of strategic planning and execution emphasizing aggressive proactive techniques to ensure maximum logistics influence on major weapon systems acquisition as well as optimum life cycle management of fielded systems. Cultural constraints of the current logistics environment and how to succeed in it is a significant focus of the course. The course examines and analyzes key opportunities for maximum logistics influence in requirements, development, contracting, test and evaluation, reliability, and maintainability as well as financial management and communications. The course features logistics management relevance to service roles and missions. The course employs lectures, guided discussions, case studies, role-playing, panel discussions, and lessons learned in the DoD acquisition environment. For the final examination project, the class is divided into teams and produces a comprehensive strategic plan for logistics for a fictitious major program. Prerequisite: GB3051 and GB4052 recommend GB3510 unless enrolled in the MBA Energy Program. GB4460 Logistics Risk Assessment and Control (4-0) FallSpring This course addresses the risk assessment and control issues that are inherent in most logistics decisions. Risk control topics include Safety Stock, Safety Capacity and Safety Lead Time, as well as Statistical Process Control. Risk assessment and valuation topics include Portfolio Selection, Real Options and Value-At-Risk. Monte Carlo Simulation will be used as a primary tool for assessing risk, and will be contrasted with Discounted Cash Flow approaches. Students should also develop an understanding of the theoretical underpinnings of risk assessment through a comparison of prescriptive versus descriptive (e. g. Prospect Theory) approaches to the study of risk judgments. Prerequisites: GB3040, and GB3042 or permission of instructor. GB4480 Supply Chain Management I (4-0) FallSpring This course is designed to provide a broad discussion about the various issues impacting the supply chain of organizations. A supply chain is a network of organizations that supply and transform materials, and distribute final products to customers. Supply chain management (SCM) is a broadly defined term for the analysis and improvement of flows of material, information, and money through this network of suppliers, manufacturers, distributors, and customers. The objective of SCM is to deliver the right product to the right customer at the right time. SCM emphasizes inventory-service level tradeoffs across the chain of players that together provide the product to a customer. Many companies andor divisions have added Supply Chain Analyst positions that frequently report to high-level managers. Ultimately, logistics and SCM activities are concerned with coordinating demand and supply. Common elements in that coordination are the management of materials (inventories), the location of materials (warehouses), and the movement of materials (transportation). As part of the coordination, an analyst must consider product and process designs as well as information flows between various players in the network. These elements will form the basis of this course. We will review some elements of basic theory and consider applications of the theory in cases that span operational and strategic concerns. Prerequisites: GB3042 or OA3501. GB4490 Special Topics in Supply Chain Networks (4-0) Fall This course focuses on conceptual understanding of the Supply Chain Networks for decision-making. The course builds the knowledge for identifying distribution and transportation networks and to optimize it using advanced analytical tools. To incorporate the bigger picture of network optimization problem, the course includes real applications in private sector as well as in military and non-governmental organizations. This is done with the analysis and discussion of articles of diverse applications such as (1) Ammunition requirement planning for the Canadian army (2) Elkem (a Norwegian company) redesigning its supply chain using optimization (3) SCM at the USCG repair and supply center (4) Location of disaster recovery centers in Florida County. ltGB4510 - GB4999 Coursesgt GB4510 Strategic Resource Management (4-0) WinterSummer The objective of this course is to integrate business analysis, financial analysis, and strategic analysis in solving complex management problems involving the allocation of scarce resources to achieve overall organization objectives. Resources here are not limited to financial resources but also include human and physical resources. The course will make use of a wide variety of management tools such as value chain analysis, competitive strategy, market positioning, supply chain management, activity analysis, target costing, cost of quality, and business process improvement techniques. Prerequisites: Completion of GB3051 and all MBA Core courses. GB4520 Internal Control amp Audit (3-0) FallSpring This course provides an introduction to the objectives of and activities related to internal control and audits, including design and evaluation of internal controls, auditing standards, audit reports, audit evidence, and audit tests. The course includes an overview of audits of financial reports and records and of government operations, with attention given to Government Auditing Standards. Prerequisite: GB3051. Management Accounting. GB4530 Management Control Systems (4-0) SpringFall Overview of internal controls processes. Study of the design, implementation, and evaluation of management planning and control systems in Navy and Defense organizations with comparisons to large, complex private sector organizations. Specific topics include the need for planning and control, strategic planning, the resource allocation process, organization of the management control function, measurement of inputs and outputs, budgeting, reporting, and performance evaluation. Prerequisite: GB3051 . GB4540 Conrad Seminar (2-2) WinterSummer This course provides DoD military officers with an awareness of real life implementation of the education they have received in the MBA (FM) curriculum. There are lectures on the Budgeting process Senior level guest speakers from the Department of the Navy and Department of Defense discuss current Financial Management issues with the students. International Students are welcomed to participate as an elective. The lab sessions task students with applying knowledge from class lecturesdiscussions. Examples of application include solving cases or analyzing actual outcomes from the budgeting process. The intent is to better prepare students for actual tasks they may expect in their first assignment. This course is graded pass fail. Prerequisite: GB3510. GB4550 Advanced Financial Reporting (4-0) WinterSummer This course explores both underlying theory and practical applications of financial reporting and analysis. The course builds on financial reporting foundations presented in an introductory course and on basic concepts covered in auditing, economics, and finance courses. The course first develops an understanding of alternative accounting measurements, and then examines how alternative accounting policies are selected in a dynamic financial reporting environment that includes owners creditors employees professional analysts portfolio managers and regulatory agencies. Finally, the course will determine how best to communicate financial performance and financial position to decision makers, users, and managers. Prerequisites: GB3051. GB4052. GB3510 . GB4560 Defense Financial Management (3-0) FallSpring This course focuses on the competencies required of a Defense Financial Manager. It examines the diverse concepts, theories, and practices addressed in numerous specialty courses and ties them together in the framework of Defense Financial Management. The areas of coverage include: the Government Resource Management Environment, the Defense Resource Management Environment, Personnel Management, Manpower Management, Management and Internal Controls, Fiscal Law, the Planning, Programming, Budgeting Execution System (PPBES), Cost and Economic Analysis, Business Management Process Improvement, Accounting, Finance, and Auditing. Prerequisite: None. GB4999 Elective (4-0) FallSpring Elective course to be selected by student with approval by academic associate. GE Courses (EMBA Program) Place-holder. Do not remove. ltGE3010 - GE3510 Coursesgt GE3010 Organizations As Systems and Structures (3-0) WinterSummer GE3010 Organizations As Systems and Structures (3-0) WinterSummer Open to EMBA DL students only. Defense organizations are purposive systems comprising tasks and technologies, vertical and lateral coordination structures and processes, reward systems, and individual motivation. This course prepares leaders to understand the organizational system components and their relationships: inputs (e. g. environment, history), design factors (i. e. people, task, structure, culture) and outputsoutcomes (e. g. productivity, satisfaction, growth). A primary focus is on the organizational level of analysis and includes such topics as environment, hierarchy and structural configuration, with special emphasis on the context and organization of DoD. Applications and cases address command and control, joint task forces and network centric operations with attention to organizational theory and design tradeoffs. Prerequisite: None. GE3011 Management of Teams (2-0) WinterSummer Open to EMBA DL students only. Teams are a building block of todays organizations. Teams are evident throughout DoD in such forms as operational squads, integrated product teams (IPTs), RampD innovation teams, and Joint Task Forces. The course examines the differences between groups and teams, between leader-managed and self-managed teams, between virtual and face-to-face teams, and between effective and ineffective teams. Analysis of effective teams include such issues as team dynamics, decision making, rewards, commitment, and the management of conflict (inter-personal, intra-team, and inter-team) in which power, influence and negotiation play central parts. Prerequisite: None. GE3042 Operations Management (4-0) As Required Open to EMBA students only. An overview of operations in military and commercial systems. The course has three sections: (1) Creating processes, including a survey of process types, capacity planning, and service system design (2) Controlling processes, including MRPERP systems and the role of information and (3) Coordinating processes, including inventory management, purchasing, and supply chain management. Prerequisite: GE3043. GE3050 Financial Reporting and Analysis (3-0) WinterSummer Open to EMBA DL students only. This course covers theory, concepts, and practices underlying Financial Accounting and Financial Reporting. The conceptual structure underlying the reporting of economic events in the form of the balance sheet, the income statement, and the statement of cash flows is first presented. Accounting recognition and measurement issues surrounding revenues, expenses, assets, liabilities and equity are introduced and analyzed. Finally, different forms of financial analysis based on financial report information are addressed. Throughout the course, emphasis is placed on the manager or user perspective. Attention is given to the federal government financial reporting model and standards. Prerequisite: None. GE3051 Cost Management (3-0) Spring Open to EMBA DL students only. This course introduces students to cost management concepts and theories which are used by managers to make decisions on the allocation of financial, physical, and human resources to achieve strategic as well as short-term organizational goals and objectives and evaluate performance using financial and non-financial measures. The course is designed for those having a prior course in financial reporting and analysis or financial accounting. Cost management includes traditional tools and techniques such as cost behavior for decision making, activity costing, cost allocation, and standard costing. Prerequisite: GE3050. GE3070 Economics for Defense Managers (3-0) As Required Open to EMBA DL students only. Develops the fundamental tools of microeconomics and macroeconomics, and applies them to defense management and resource allocation. Course centers on defense applications of economic theory. Topics covered include: defense and the macro economy markets and their interactions with defense acquisition and contracting national security implications of globalization and efficiency in defense decision making. Prerequisite: MA2XXX, College algebra. GE3109 Ethics and Moral Development (3-0) As Required Offered to EMBA students in their first quarter: The objective of this course is to provide newly-enrolled Executive MBA students with an introduction to the ethical challenges of the global Defense business environment facing Navy corporate business leaders and resource managers. Through the use of case analyses and discussion, the course will explore the application of ethical thinking to contemporary issues in the private and public sectors. The course goals include: 1) introduce ethical concepts which are relevant to the moral and ethical dilemmas inherent in business decisions 2) help students develop the critical thinking and analytical skills required to address complex issues 3) identify the range of ethical problems facing senior leaders in business and government and 4) encourage the students to develop a personal approach to achieve ethical outcomes in the corporate-level decision-making process. The students will use the managerial perspective and critical thinking skills developed in this course throughout the remainder of their studies to identify the ethical dimension in the process of formulating and implementing Navy policy and business strategies required to build and maintain the Fleet of the 21st Century. Prerequisite: None. GE3221 Principles of Acquisition and Program Management I (3-0) As Required Open to EMBA students only. This is the first of two courses which provides the student with an understanding of the underlying concepts, fundamentals and philosophies of the Department of Defense systems acquisition process and the practical application of program management methods within this process. The course examines management characteristics and competencies, control policies and techniques, systems analysis methods and functional area concerns. Techniques for interpersonal relationships will be examined in team exercise settings. Topics, from a program management perspective, include the evolution and current state of systems acquisition management, the system acquisition life cycle, requirements analysis, systems engineering, contract management, resource management, test and evaluation, user-producer acquisition management disciplines and activities and program planning, organizing, staffing, directing and controlling. Case studies are used to analyze various acquisition issues. Defense Acquisition University (DAU) has granted MN 3221-MN3222, GE3221-GE3222 equivalency for ACQ 101, ACQ 201, ACQ 202, ACQ 203, PMT 251, PMT 257, BCF 102 and BCF 103. PREREQUISITE: None. GE3222 Principles of Acquisition and Program Management II (3-0) As Required Open to EMBA students only. This is the second of two courses which provides the student with an understanding of the underlying concepts, fundamentals and philosophies of the Department of Defense systems acquisition process and the practical application of program management methods within this process. The course examines management characteristics and competencies, control policies and techniques, systems analysis methods and functional area concerns. Techniques for interpersonal relationships will be examined in team exercise settings. Topics, from a program management perspective, include the evolution and current state of systems acquisition management, the system acquisition life cycle, requirements analysis, systems engineering, contract management, resource management, test and evaluation, user-producer acquisition management disciplines and activities and program planning, organizing, staffing, directing and controlling. Case studies are used to analyze various acquisition issues. Defense Acquisition University (DAU) has granted MN 3221-MN3222, GE3221-GE3222 equivalency for ACQ 101, ACQ 201, ACQ 202, ACQ 203, PMT 251, PMT 257, BCF 102 and BCF 103. Prerequisite: GE3221 or consent of instructor. GE3510 Defense Financial Management Practice (3-0) As Required For EMBA students. This course is designed for MBA students and presumes the student has a foundation including the PPBE system and Congressional Authorization and Appropriation processes. This course concentrates on financial management practices within DoD as distinct from policy and budgeting theory. The course covers the actors and activities and mechanics of building and defending budgets. It covers funding mechanisms for programs and activities, addressing the proper use and management of appropriated, reimbursable, and revolving funds. Basic principles of fiscal law are explored. It then addresses financial management and stewardship topics including budgetary accounting, management of cost drivers, the relationship between comptrollership and contracting, and internal controls. Contemporary financial management issues are discussed. Exercises and case studies are used to develop the students ability to apply financial management concepts to real life situations. Prerequisite: None. ltGE4015 - GE4510 Coursesgt GE4016 Strategic Management (4-0) WinterSummer Strategic Management entails the establishment of an organizations direction and the implementation and evaluation of that direction in view of the organizations external environment and its internal capabilities. The principal aim of this course is the transfer and adaptation of the principles of business strategic management to the Department of Defense and other government agencies. In previous courses, students concentrated on the functional elements of management (e. g. accounting, finance, acquisition, logistics, contracting, etc.). This course addresses the challenges of setting direction and implementing strategies for the total system or whole organization. Cases and approaches from the public and private sectors enable students to develop the knowledge, skills, and abilities to strategically think, plan, and manage. PREREQUISITES: NONE. GE4043 Business Modeling and Analysis (3-0) As Required Open to EMBA students only. This course introduces mathematical modeling for a sound conceptual understanding of the decision-making process. This course familiarizes the students with applications, assumptions, and limitations of the quantitative methods in modeling. It focuses on the development of mathematical and spreadsheet models, the verification of those models, sensitivity analysis of the solutions generated from a model, and the implementation of those solutions. Some of the topics covered include linear programming, non-linear and integer programming, simulation, and forecasting. The process of modeling and particular modeling tools are applied to business problems in finance, acquisition, logistics and manpower planning. Prerequisites: None. GE4052 Managerial Finance (3-0) As Required Study of capital budgeting techniques. This course provides an overview of the basic concepts and principles of financial management in the private sector and its implication on government contracting. It is designed to provide insights into the financial decision-making process encountered by commercial enterprises. The major emphasis is on financial environment, risk and return analysis, valuation models, cost of capital determination, optimal capital structure, and short-term and long-term financing. Prerequisite: GE3050 . GE4053 DoD Mission and Resource Determination 4-0) As Required This course analyzes the resource requirements process within the Department of Defense (DoD) and in the executive and legislative branches of the U. S. federal government. It begins with a summary of the current threat situation and potential changes to it. Once the threat is defined, the study of the resource allocation process to meet the threat begins. The course covers the resource planning and budgeting processes of the Department of the Navy, DoD and the federal government. It includes the politics of executive and congressional budgeting, and DoD budget and financial management processes and procedures including budget formulation and execution. It also includes analysis of the Planning, Programming, Budgeting Execution System (PPBES) used by DoD to plan, budget and implement national defense resource management policy and programs. Other areas included are budget process and fiscal policy reform and the dynamics of internal DoD competition for resources. Executive and congressional budget processes are assessed to indicate how national security policy is resourced and implemented through the budget process. Spending for national security policy is tracked from budget submission through resolution, authorization and appropriation. Budget formulation, negotiation, and execution strategies are evaluated to indicate the dynamics of executive-legislative competition over resource allocation priorities. Supplemental appropriation patterns and current year budget execution patterns and problems are also considered. Prerequisite: None. GE4101 Collaborative Problem Solving I (3-3) FallSpring GE4101 is the first part of the capstone project which uses a collaborative approach to integrate the knowledge and skills gained in the EMBA program. Participants are introduced to an applied research framework designed to enable them to work from theory to identify a business problem to be solved for a command create a research design for data collection and analysis and form conclusions and recommendations. Prerequisite: Completion of the previous seven quarters of the EMBA program. GE4102 Collaborative Problem Solving II (3-3) FallSpring GE4102 is the second part of the capstone project which uses a collaborative approach to integrate the knowledge and skills gained in the EMBA program. Participants work in small teams to prepare a project proposal, a final report, and a presentation containing recommendations to solve one of the commands business problems. Prerequisite: Completion of the previous seven quarters of the EMBA program. GE4480 Defense Supply Chain Management (3-0) WinterSummer This course is designed to provide an introduction to supply chain management (SCM). A supply chain is a network of organizations that supply and transform materials, and distribute final products to customers. Supply chain management is a broadly defined term for the analysis and improvement of flows of material, information, and money through this network of suppliers, manufacturers, distributors, and customers. SCM also plays a vital role in the military operations. The objective of SCM is to deliver the right product to the right customer at the right time. SCM emphasizes inventory-service level tradeoffs across the chain of players that, together, provide the product to a customer. Logistics has traditionally focused on materials issues within and downstream from the factory while SCM looks at the entire network of players, both up and down stream, and perhaps has more of an emphasis on information flows through the network. Logistics has traditionally been considered a more tactical topic while SCM has risen to prominence in recent years for addressing strategic aspects of product distribution. Ultimately, logistics and SCM activities are concerned with coordinating demand and supply. Common elements in that coordination are the management of materials (inventories), the location of materials (warehouses), and the movement of materials (transportation). As part of the coordination, an analyst must consider product and process designs as well as information flows between various players in the networks. These elements form the basis of this course. The two main objectives of this course are to help students understand: (1) the fundamental concepts and techniques necessary for attaining a world class performance in supply chain management, and (2) how these concepts and techniques can be applied to design, plan and operate supply chains supporting military operations. Prerequisites: GE3042 or permission from instructor. GP Courses Place-holder. Do not remove. ltGP3100 - GP4800 Coursesgt GP3100 Global Change and International Governance (4-0) WinterSummer This course addresses principles that drive globalization and how and where the military and civilians address the civil dimension in pre-conflict, conflict, and post-conflict environments. Theories of regional economic development, location and trade are applied to the contemporary process known as quotglobalizationquot and used to decipher its effects on regional and national patterns of development, employment, income distribution, political institutions, and policymaking. Specific topics of discussion are: globalization and the production of risks, climate and environmental change, division of labor, power and governance, regional and international development, risks as drivers of change, financial and information flows, and capitalism and globalization. GP3110 Legitimacy, Law, and Society (4-0) FallWinterSpringSummer This course investigates the role of legitimacy in governance systems, including the rules, norms and social processes that shape and legitimate political order. We address the legality of war (jus ad bellum) in so far as it affects the legitimacy of political orders that follow it. The focus in this course is upon the rules that apply in the midst of war or occupation (jus in bello)and the processes of transition through interim to more durable regimes after conflict. We will consider the institutional and social context for governance, including the role of social movements and media in the development of legitimate political order under rule of law. The class will draw upon case studies of real-world scenarios. The discussion of legal issues in this course is part of a broader conversation on reconciliation and the rule of law. Significant actors in this space include the United Nations and other international regimes, civil society, national-level public officials, and the military. Students will learn about legal definitions, frameworks, and international assistance efforts. Prerequisites: none. GP3200 Security and Development (4-0) WinterSummer Complex security challenges including state failure, transnational terrorism, energy crisis and pandemics compel us to think about prevention and stability operations in new ways. The course seeks to develop analytic skills and empirical knowledge needed to assess requirements and capacities for stability, security and development, and to develop strategies for peace building. Students will gain expertise relevant to preventive engagement and counterinsurgency, and especially to civil-military operations such as humanitarian relief, peace and stability operations abroad and homeland security efforts at home. Specific areas of concentration are: stability in the global context, theories and strategies, implementation challenges, and practical applications. GP3210 Comparative Legal Systems (4-0) FallWinterSpringSummer Comparative law is the study of alternative legal systems. In the context of Civil Military Operations knowledge of the legal traditions of the host country is necessary to the process of helping to reestablish or support a culture of lawfulness. An understanding of host country legal traditions and resources contributes to the cultural competence of successful graduates and an ability to support rule of law systems that are perceived as fair and acceptable to the host country population. Today, the issues of how systems and institutions interact with legitimacy and perceptions are critical for Civil Affairs policy and work in the field. The Rule of Law certificate underscores this with the substantive contents in the two other courses. The Comparative Legal Systems course engages your knowledge and learning from those courses through the focused look at legal traditions on the books and in practice in different countries. To reinforce the link between theory and application, this course also introduces principles and precepts of dispute resolution and organizational design, to provide context for the analysis of comparative legal systems and recognition of challenges and opportunities Civil Affairs practitioners will face. This further content addresses the cultural competence of graduates and leverages their prior knowledge of organizational and institutional design 8211 emphasizing the importance of institutional and well as individual 8216capacity8217 to work within different legal system contexts. GP3300 Introduction to Analytic Methods (4-0) WinterSummer GP3300 focuses on the use of analytical decision making techniques in the support of stability operations. The first part of the course focuses on the framework for analytical decision-making and accurate costing of projects. The second part of the course discusses multi-objective decision-making. In the final part of the course, we will discuss risk and the economics of stability operations. GP3310 Public Order and Accountability (4-0) FallWinterSpringSummer This course surveys the role of and need for legal institutions to provide the physical security necessary for reconstructing society as well as rebuildingcreating state legitimacy. The concept of justice is central to this process, as is creating a robust and fair justice sector. Most practitioners have come to realize that it is impossible to address the problems arising from conflict without addressing the interrelationships between security, development and politics. We examine these with an eye to the practical applications for the Civil Affairs community. We will discuss the challenge of operationalizing legal concepts and norms, and introducing Rule of Law into countries that have no prior concept of the role of legal and security institutions as protectors of and servants to the people, and courts as neutral arbitrators of the law. The class will tackle the subjects of torture, truth and reconciliations structures, the Geneva Protocols, and war crimes, as well as the role of civilian policing in conflict zones. We will also tackle the issue of privatizing roles and functions in conflict areas, and the problems of corruption and organized crime. The class will draw upon case studies of real-world scenarios from Nuremberg, Abu Gharaf, Guantanamo, and South Africa. We will discuss the key actors involved in the Rule of law process: NGOs, the United Nations, the State Department, NATO, and regional organizations. GP4800 Directed Studies in Global Public Policy (V-V) FallWinterSpringSummer Format and content vary. Normally involves extensive assigned readings, individual discussions with the instructor, papers andor examinations. Prerequisite: consent of instructor. MN Courses Place-holder. Do not remove. ltMN0163 - MN3042 Coursesgt MN0163 Thesis Writing Workshop (0-1) Spring Guidelines for scientific writing for the thesis are given with examples and opportunities for practice. Prerequisite: Consent of instructor. MN0810 Thesis Research for Systems Management Students (0-8) FallWinterSpringSummer Every student conducting thesis research in Systems Management resident programs will enroll in this course. Prerequisite: None. MN0811 Thesis Research for Non-Resident Business amp Public Policy Students (0-4) FallWinterSpringSummer Every student conducting thesis research in the Distance Learning Contract Management (835) and Program Management (836) degree programs will enroll in this course. MN2039 Basic Quantitative Methods In Management (4-0) Fall This course introduces the mathematical basis required for advanced management and cost-benefit analysis. Math topics include algebra, graphs, differential calculus, including both single and multiple variable functions, and indefinite and definite integrals. Management concepts include cost-benefit and cost-effectiveness analysis, marginal analysis, unconstrained and constrained optimization, and welfare analysis. Prerequisite: College algebra or consent of instructor. MN2111 Navy Manpower, Personnel, and Training Systems I (2-0) Fall An introduction to the major issues, theory, and practice of the military MPTampE system. Graded on a PassFail basis only. Prerequisite: Consent of instructor. MN2112 Seminar In Manpower, Personnel, and Training Issues II (0-2) Summer Continuation of MN2111. Graded on a PassFail basis only. Prerequisite: Open to thesis students. MN3001 Economics for Acquisition Managers (3-0) FallWinterSpringSummer Develops the fundamental tools of microeconomics and macroeconomics and applies them to topics in the management and allocation of resources in defense acquisition management with particular emphasis on the applications of economic theory to defense decision making. Topics covered include defense and the macro economy markets and their effects on defense acquisition and contracting practices the economics of corporate strategy and efficiency in defense decision making. Prerequisite: None. MN3012 Communications Strategies for Effective Leadership (3-0) FallWinterSpringSummer This course provides DoD military officers and civilians with the communication strategies and skills to manage and lead in the dynamic DoD environment. Instruction focuses on assessing various communication models, making strategic media choices, writing effective informative documents, developing associates communication competencies through various feedback roles, and giving lucid briefings. Prerequisite: None. MN3040 Data Management and Statistics for Manpower Analysis (4-0) Fall MN3040 introduces students to basic concepts and procedures in descriptive and inferential statistics and prepares them for subsequent statistical courses in Multivariate Data Analysis (MN4110 and MN4111), Applied Manpower modeling (MN4761), and beyond. This course bridges the gap between theoretical concepts and applied work in statistics in the context of answering manpower related policy questions. Topics include methods for deriving, describing and summarizing single-variable statistics followed by measures to analyze the relationship between two or more variables. The course then introduces probability theory as a background for understanding inferential statistics. Finally, methods are presented for drawing inferences from research samples to populations, including hypothesis testing and confidence intervals. A significant portion of the course will also be devoted to data collection, data manipulation, and data analysis using the statistical program Stata and utilizing data sets from PRIDE, DMDC, and MEPCOM. MN3042 Operations Management (3-0) As Required This course provides an overview of operations in military and commercial systems. The course has three sections: (1) creating processes, including a survey of process types, capacity planning, and service system design (2) controlling processes, including MRPERP systems and the role of information and (3) coordinating processes, including inventory management, purchasing, and supply chain management. This course is the Distance Learning version of GB3042. Prerequisite: None. ltMN3101 - MN3172 Coursesgt MN3108 Leadership In Product Development (3-2) As Required This is a product development course providing a broad framework for the leadership of end-to-end product commercialization with a student hands-on design challenge, to give students perspective and appreciation for the critical success factors and inhibitors to successful commercialization of complex products and systems. The format includes lectures, guest speakers, case studies and a design challenge. Topics include product development strategy and leadership, the front-end process, product delivery, distribution and customer support. The Design Challenge is as a multi-disciplinary system design experience. Students work in teams to design, build, test and demonstrate a real product. The Design Challenge culminates with a prototype demonstration competition. Prerequisite: None. MN3111 Analysis of Human Resource Management (4-0) Spring A broad coverage of human behavior in the work situation, with key emphasis on the issues of work in the Navy Manpower Personnel and Training Environment. Topical areas covered include selection, placement, training development, and evaluation of personnel motivation, remuneration, morale, supervision, and working conditions in military organizations job design and organization development within complex military bureaucracies equipment design and man-machine interface, and the impact of technological programs within the military. Prerequisite: GB3010 . MN3117 Organizational Processes (4-0) As Required The purpose of this course is to provide the conceptual framework and skills needed to manage and lead organizations. The focus will be on three levels of skills needed to manage modern organizations: skills needed to manage individuals, skills needed to manage teams, and skills needed to manage the organization as a whole. It focuses on the organization of the future, identifies its characteristics, and explores the implications for living in, managing, and leading such an organization. The course also focuses on skills such as negotiating, cross-cultural communication, and teamwork. It examines the creation of the structures needed within the firm and the alliances, learning, and change practices needed to maintain global leadership. The course will use cases, experiential exercises, readings, discussions, and papers. Students have the opportunity to integrate conceptual material with their own experiences, beliefs, and actions. Prerequisite: None. MN3118 Negotiation and Consensus Building (4-0) Spring Security, Stability, Reconstruction and Transition (SSTR) environments bring together representatives from different nations and organizations. In order to accomplish the goals of interest, these varying representatives must develop awareness, appreciation, and ability to collaborate with each other. There is no formal organization that provides structures or standards to guide the collaboration of these individuals they must rely on informal mechanisms for collaborative post-conflict efforts. Because the goals and interests of the participating parties frequently are not in alignment, negotiation and consensus-building capabilities contribute importantly to success. Negotiation and consensus building challenges students to develop their skills in interpersonal and group dynamics (e. g. conflict management, communication, perspective taking, decision making, team building) at both the dyadic level and the group team level. The pedagogy of the course uses simulations, cases, and experiential exercises that include high levels of cultural, ethnic, organizational, and ideological diversity. Consensus building at both the dyadic and group levels is based on principles of self-organization and self-management, which are critical success factors in an environment such as SSTR where a hierarchic control system is not available as the mechanism of coordination among participants. Prerequisite: None. MN3121 Organizational Design for Special Operations (4-0) As Required Principles of organizational design are critically examined and applied to special operations missions and organizations. Focus is on the organizational level of analysis and includes such topics as organizational environments, key success factors, technology and information systems, configuration and structure, organizational learning, reward systems, and decision making. Case method is used to develop diagnostic skills and a systemic perspective. Prerequisite: Enrollment in the SOLIC curriculum or consent of instructor. MN3145 Marketing Management (4-0) Spring This course takes a general management approach to marketing, examining (1) marketing as a process that creates and sustains customer value and (2) the managers role in assuring that the firm delivers products that are successful in the marketplace. The curriculum will emphasize approaches to market research (the quotvoice of the customerquot), innovation, creating customer value in product development, product management, and general management of marketing activities. Topics include: market oriented strategic planning, the TQM marketing process, market research, segmentation, target markets, differentiation, product management, the marketing mix, customer satisfaction, and e-commerce. Case studies are used extensively. Prerequisite: None. MN3154 Financial Management in the Armed forces (3-0) WinterSummer This course is designed for non-MBA students and focuses on financial management policies and practices in the DoD. It begins with a foundation including the origin of the Defense budget from national strategic planning through the PPBE system and the submission of the Presidents Budget to Congress. The Congressional Authorization and Appropriation processes and the flow of funds to the activity level complete the foundation. The course next explores the funding mechanisms for programs and activities, addressing the proper use and management of appropriated, reimbursable and revolving funds. Basic principles of fiscal law are explored. The course concludes with financial management and stewardship topics including budgetary accounting, management of cost drivers, and internal controls. Contemporary financial management issues are discussed. Exercises and case studies are used to develop the students ability to apply financial management concepts to real life situations. Prerequisite: None. MN3155 Financial Management for Acquisition Managers (2-0) FallWinterSpringSummer This course is a study of financial management practices and issues associated with federal government acquisition programs. The course has emphasis on (1) the resource management process flow from initiation of a new acquisition program through execution of appropriated funds (procurement and research amp development accounts) for that program, (2) the congressional approval and review process unique to procurement, and (3) cost estimation, analysis and evaluation as tools for sound acquisition management decision making, and long-term investment analysis. Prerequisites: MN2155 and MN3331 or MN3221 or consent of instructor. MN3156 Financial and Managerial Accounting (4-0) As Required This course is designed as a first course in Business Financial Management for graduate students. The course covers a range of topics in financial accounting, managerial accounting and business finance. All topics covered share a common theme in that they are related to the creation and use of financial models and information. The course requires critical thinking and the ability to analyze and apply financial models and reasoning in the context of case studies. The course is divided into two broad areas: Financial Information and Financial Management. Within these areas, specific topics include: financial accounting, financial reports, financial analysis, capital structure, costing systems, performance measurement and control, and investment analysis. Prerequisites: Admission to graduate standing, college algebra, MN3108 and MN3117. MN3172 Resourcing National Security: Policy and Process (3-0) WinterSummer This course analyzes federal policy-making with emphasis on resource decision making for national defense. The roles of principal budget participants are examined in detail. Executive (especially DoD) and congressional budget processes are assessed to indicate how national security policy is implemented through resource allocation. Spending for national security policy is tracked from budget submission through resolution, authorization and appropriation. The politics of budgeting for national defense is evaluated to indicate the dynamics of executive-legislative competition over scarce federal resources. Graded Course. Prerequisite: None. ltMN3221 - MN3342 Coursesgt MN3221 Principles of Acquisition and Program Management I (3-0) Summer This is the first of two courses which provides the student with an understanding of the underlying concepts, fundamentals and philosophies of the Department of Defense systems acquisition process and the practical application of program management methods within this process. The course examines management characteristics and competencies, control policies and techniques, systems analysis methods and functional area concerns. Techniques for interpersonal relationships will be examined in team exercise settings. Topics, from a program management perspective, include the evolution and current state of systems acquisition management, the system acquisition life cycle, requirements analysis, systems engineering, contract management, resource management, test and evaluation, user-producer acquisition management disciplines and activities and program planning, organizing, staffing, directing and controlling. Case studies are used to analyze various acquisition issues. Defense Acquisition University (DAU) has granted MN 3221-MN3222, GE3221-GE3222 equivalency for ACQ 101, ACQ 201, ACQ 202, ACQ 203, PMT 251, PMT 257, BCF 102 and BCF 103. PREREQUISITE: None. MN3222 Principles of Acquisition and Program Management II (3-0) As Required This is the second of two courses which provides the student with an understanding of the underlying concepts, fundamentals and philosophies of the Department of Defense systems acquisition process and the practical application of program management methods within this process. The course examines management characteristics and competencies, control policies and techniques, systems analysis methods and functional area concerns. Techniques for interpersonal relationships will be examined in team exercise settings. Topics, from a program management perspective, include the evolution and current state of systems acquisition management, the system acquisition life cycle, requirements analysis, systems engineering, contract management, resource management, test and evaluation, user-producer acquisition management disciplines and activities and program planning, organizing, staffing, directing and controlling. Case studies are used to analyze various acquisition issues. Defense Acquisition University (DAU) has granted MN 3221-MN3222, GE3221-GE3222 equivalency for ACQ 101, ACQ 201, ACQ 202, ACQ 203, PMT 251, PMT 257, BCF 102 and BCF 103. Prerequisite: MN3221 or consent of instructor. MN3301 Acquisition of Defense Systems (4-0) FallSpring This course introduces the principles and concepts that underlie successful defense acquisition management. The course focuses on management of the acquisition process for defense systems from the development of an initial desired capability or need through design, development, production, fielding, sustainment, and disposal. Students gain an understanding of successful acquisition as an interdisciplinary activity through contributions and applications of principles from business, management, and technical disciplines. The course also emphasizes the statutory, regulatory, and policy environment of acquisition. Numerous case studies illustrate the application of concepts and principles in actual acquisition programs. Defense Acquisition University (DAU) has granted MN3301 equivalency for ACQ 101, ACQ 201, ACQ 202, ACQ 203, BCF 102 and BCF 103. Prerequisite: None. MN3302 Advanced Program Management (3-0) As Required Course builds on the students experience in the acquisition workforce. Cases are used to examine each of the major disciplines in the acquisition process and bring each student to a current and common understanding of the acquisition environment, process, requirements and management approaches. Prerequisite: DAWIA Level II Certification. MN3303 Principles of Acquisition and Contract Management (4-0) WinterSummer This course is an introduction to the principles of government acquisition and contracting. It presents the fundamentals of the Federal Acquisition Regulation (FAR) and the DoD FAR Supplement the federal acquisition and contracting processes, including requirements determination, acquisition strategies, government contract law, ethics, contract types, contracting methods, and acquisitioncontract management techniques. Prerequisite: None. MN3304 Contract Pricing and Negotiations (5-2) WinterSummer This course involves the study and application of pricing theory and strategies, cost methods, cost and price analysis, cost principles, Cost Accounting Standards, and contract negotiations as used in the Federal Government. Students develop and sharpen negotiating skills by participating in practical negotiation exercises with corporations. Prerequisites: MN3303. MN3306 Enterprise Sourcing (4-0) Spring This course is a graduate-level seminar in category management and enterprise sourcing. The course will be taught through a combination of formal lecture, guided discussion, and case analysis. The primary goal of this course is to develop, structure, and execute sourcing, not as a functional activity, but rather as a strategic component of total supply chain management. The course emphasizes the concept that companies with world-class sourcing practices derive a competitive advantage in their industries from their procurement and sourcing strategies. The course develops the concept of competitive advantage through category management and enterprise sourcing as it relates to efficient and effective structure and management within the Department of Defense. The emphasis on world-class sourcing practices entails observation and analysis of commercial organizations and their sourcing practices. The student will investigate whether select commercial organizations sourcing practices are useful to the DoD and determine practical implementation for use in the DoD acquisition environment. Prerequisite: None. MN3307 Entrepreneurship in Enterprise Sourcing (3-0) Winter MN3307 is a graduate level seminar on the entrepreneurial concept and management and its application to enterprise sourcing. Entrepreneurial thinking is designed to exploit opportunities in uncertain environments. The primary goal for MN3307 is to explore and develop strategic and critical thinking in entrepreneurial concepts and management along with specific methods for utilizing these concepts and tools within world-class sourcing organizations. Students will critically examine how the entrepreneurial mindset is applied in progressive business ventures and how DoD and the government can effectively apply these concepts and management tools for effective and efficient category management and sourcing operations. The foundation of MN3307 is an analysis of the process by which the entrepreneurial mindset generates new ideas, researches the likelihood of success, and successfully implements the idea. The course will also investigate the critical role of entrepreneurial leadership and scanning the environment for opportunity, and capitalizing on opportunities to benefit DoD category management and enterprise sourcing organizations. The course will be taught through a combination of informal lecture, guided discussion, case study, and student presentations. Prerequisite: None. MN3309 Software Acquisition Management for Strategic and Tactical Systems (4-0) WinterSummer This course examines the fundamentals of major Congressional statutes, agency policies and regulations, and legal precedents which govern the Federal procurement process. The course contrasts the legal regimes of private and government contracting with strong emphasis on unique aspects of government contracts law, including: appropriations limitations the power to contract competitive and non-competitive methods of contract formation contract administration issues such as changes and terminations transparency and oversight and bid protests, size protests and disputes. The course prepares students to identify and choose among legal tools, strategies, and processes which should control their decision-making as contracting professionals. Prerequisites: MN3331 or MN3222 or MN3302. MN3312 Government Contracts Law (4-0) FallSpring This course examines the legal structure within which federal government contracts with private industry are formulated and executed. The course addresses the unique aspects of government contract law including such topics as agency authority, contract interpretation, disputes and remedies, Alternative Dispute Resolution (ADR), socio-economic laws, labor law, property, patent and data rights, conflicts of interest, protests, and ethics. Comparisons are made with the Uniform Commercial Code (UCC). Emphasis is on the use of Court and Board of Contract Appeals (BCA) cases. Prerequisites: MN3303 or MN3341. MN3315 Acquisition Management and Contract Administration (4-0) FallSpring This course focuses on the management functions and decision-making techniques involved in the award and administration of Best Value competitively negotiated contracts. The first phase of the course concentrates on the source selection phase of the acquisition process specific topics include acquisition planning, market research, source selection planning, proposal development, solicitation management, source selection evaluation, contract award, and contractor debriefings. The second phase of the course emphasizes the performance phase of the acquisition process specific topic areas include organizing for contract administration, transitioning to performance, quality management, subcontract management, financial management, performance monitoring, change management, and contract closeout. Emphasis is on the use of legal case studies and practical exercises. Prerequisites: MN3304 and MN3312. MN3318 Contingency Contracting (2-0) WinterSummer This course is a study of the principles of contingency contracting and the fundamental skills required to provide direct contracting support to joint tactical and operational forces participating in the full spectrum of armed conflict and military operations other than war, both domestic and overseas. Topics include: Types of Contingencies, Cross-Cultural Awareness, Contingency Contracting Officer Authority, Roles and Responsibilities, Anti-terrorism and Security, Planning, Contractual Methodologies and Instruments, Contract Administration, and EthicsStandards of Conduct. Prerequisite: None. MN3320 Contract Cost and Price Analysis (3-0) FallWinterSpringSummer This course involves the study and application of pricing theory and strategies, costing methods, cost and price analysis, cost principles, Cost Accounting Standards, and related genres in examining proposed and incurred costs in Federal contracts in both pre-award and post-award contexts. Prerequisite: MN3303 or similar introductory contracting principles course. May not require this for MSCM students with extensive field experience and existing CON Level I DAU certification or higher. MN3321 Federal Contract Negotiations (3-0) FallWinterSpringSummer This course involves the study and application of the art and science of developing and conducting comprehensive government contract negotiations. Emphasis is placed on cost and price analytical techniques in the formulation and presentation of a pre-negotiation business clearance, strategy and actual conduct of negotiations in a simulated business environment. Prerequisite: MN3320. MN3331 Principles of Acquisition and Program Management (5-1) FallWinterSpringSummer This course provides the student with an understanding of the underlying concepts, fundamentals and philosophies of the Department of Defense systems acquisition process and the practical application of program management methods within this process. The course examines management characteristics and competencies, control policies and techniques, systems analysis methods and functional area concerns. Techniques for interpersonal relationships will be examined in team exercise settings. Topics, from a program management perspective, include the evolution and current state of systems acquisition management, the system acquisition life cycle, requirements analysis, systems engineering, contract management, resource management, test and evaluation, user-producer acquisition management disciplines and activities and program planning, organizing, staffing, directing and controlling. Case studies are used to analyze various acquisition issues. Defense Acquisition University (DAU) has granted MN3331 equivalency for ACQ 101, ACQ 201, ACQ 202, ACQ 203, PMT 251, PMT 257, BCF 102 and BCF 103. Prerequisite: None. ltMN3352 - MN4354 Coursesgt MN3352 Cost Management (3-0) This course will explore the development and use of cost information by managers. Its focus will be on management applications and analyses rather than on bookkeeping techniques and methodologies. The course will examine accounting measurements and analyses that provide relevant information for management decision-making, operational control, and productivity improvement. These internally-oriented processes are fundamentally different from those used to comply with external financial accounting requirements. The primary objectives of the course are as follows: reinforce skills in reporting and analyzing managerial accounting information develop experience in analyzing this information from the perspective of its various users, especially management develop the ability to identify and communicate relevant managerial accounting information and develop an appreciation of the usefulness and limitations of managerial accounting information. Developed for Cost Management Certificate Program. Prerequisite: Department of Army approval for enrollment. MN3353 Operations Management (3-0) This course is about the fundamentals of managing manufacturing and service operations and about how DoD managers can effectively design and control operational processes. Helping students understand the concepts and techniques necessary for attaining a world-class performance in manufacturing and service operations is the main learning objective of this course. Analyzing and continuously improving enterprise-wide processes is critically important for achieving such a performance and hence the course will adopt a quotprocess managementquot viewpoint while addressing a variety of operational and strategic issues. The course begins by introducing the operations function and its quotmissionquot in terms of cost, quality, speed, service, and flexibility. Several exercises and cases are used here to illustrate the concepts fundamental to process analysis, including capacity, bottleneck, cycle time, and inventory, and their implications to cost management. The book by Goldratt, The Goal, is also discussed to provide a real-world context to the variety of issues addressed in the course, and to introduce the Theory of Constraints (TOC). At this point the course will cover the topics of capacity planning, inventory management, MRPERP and project management. The course will end with an introduction to supply chain management, a topic integrating a number of concepts covered earlier in the course. Developed for Cost Management Certificate Program. Prerequisite: MN3352. MN4354 Financial Analysis and Cost Management (3-0) Provides an understanding of management control, management control structures and processes and how they are designed to control costs while also organizing work processes and motivating employees to work productively. Course objectives are understanding of (i) management control principles and processes, (ii) the application of cost management principles and processes, (iii) defense management control process events and timing, (iv) cost control and accounting data independence, (v) application of case study method to study of management control and cost management, (vi) cost control dynamics in budget execution, (vii) management and cost control reform initiatives and (viii) contemporary defense cost and resource policy issues. Prerequisite: MN3353. Available: Per sponsor requirements. ltMN3361 - MN3611 Coursesgt MN3361 Software Acquisition Management (2-0) FallWinterSpringSummer Advanced Acquisition Program. This course concentrates on the management of software products and software intensive systems. It is intended to focus essential program management techniques on the software element to ensure successful and timely system development. The course provides the student with knowledge of software acquisition management control processes and tools. Current software acquisition articles and caselets are analyzed for application of program leadership, software development techniques, and management tools applied. Topic areas include: DoD software environment software acquisition strategies impediments to successful software intensive system development software oriented requirements development contracting for software, software discriminate proposals software test and evaluation management Post Deployment Software Support risk management and software costing and budgeting. Integrative exercises involving software managerial problem solving and decision making in the program management environment are used. Prerequisite: MN3331 or consent of instructor. MN3362 Acquisition Design Verification and System Assessment (2-0) FallWinterSpringSummer Advanced Acquisition Program. This course examines Developmental, Operational, and Joint Test amp Evaluation as viewed from the Program Managers perspective. The student will be able to distinguish the difference between the various testing types and the impact testing results will have on the decision makers thought process. Actual military and civilian test cases are used as examples for discussion purposes. Topics include the role of TampE in the Systems Engineering Process, TampE policy Structure and Oversight Mechanism, Requirements Generation, Modeling and Simulation, Alternative Acquisition Program TampE, Human systems Integration and Live Fire TampE. Integrative case studies involving managerial problem solving and decision making in the PMO environment are also used to provide application of concepts in both IPT teaming and multiple-role individual settings. Teamwork exercises are conducted to reinforce concepts and add real-world human dynamics. Upon completion, all exercises are evaluated with after-action reviews and assessments. Prerequisite: MN3331 or consent of instructor. MN3363 Acquisition Manufacturing and Quality Management (2-0) FallWinterSpringSummer For AAAP program students. This course provides the student with knowledge and application of integrated management control processes with regard to performance, cost, and schedule, while examining higher-level and real world defense systems. Issue-oriented topic areas likely to affect Program Management Office personnel include: acquisition reform acquisition strategy industrial base production and manufacturing quality management and risk management. Integrative case studies involving managerial problem solving and decision making in the PMO environment are also used to provide application of concepts in both IPT teaming and multiple-role individual settings. Teamwork exercises are conducted to reinforce concepts and add real-world human dynamics. Upon completion, all exercises are evaluated. Prerequisite: MN3331 or consent of instructor. MN3364 Business Financial and Contract Management (2-0) FallWinterSpringSummer Advanced Acquisition Program. The course builds on the students knowledge and experience in contracting, and contracting related fields, to address the more complex pre-award, award and post-award issues in the acquisition and contracting, and business and financial management arenas. Prerequisite: MN3331 or consent of instructor. MN3365 Acquisition Logistics amp Program Sustainment (2-0) FallWinterSpringSummer Advanced Acquisition Program. This course focuses on the logistics and sustainability planning for new major weapon systems in each phase of the DoD acquisition process. It links logistics and sustainability planning, in the early stages of system development, to the effects on the systems total ownership cost. The course describes sustainability planning and management through the Systems Engineering Process and supportability analyses techniques. The course addresses the following specific subject areas: Designing for Life Cycle Cost and Cost As an Independent Variable (CAIV) Logistics Supportability Elements Supportability analyses Logistics Open Systems Software Support Planning Supply Chain Management and Post-Production Support Planning. Prerequisite: MN3331 or consent of instructor. MN3384 Principles of Acquisition Production and Quality Management (4-1) FallSpring This course provides the student with an understanding of the principles and concepts of production and quality management in the DoD acquisition environment. Topics include production planning and control, quotleanquot production, and bottleneck analysis quality management systems, statistical process control, and six sigma cost estimating methods, activity based costing, and progress payments in support of production producibility environmental, safety and occupational health warranties specs and standards reform and the Defense industrial base. Prerequisite: MN3331 or MN3221 MN3222 or MN3302 or consent of instructor. MN3392 Systems and Project Management (4-0) Summer Management ensures progress toward objectives, proper deployment and conservation of human and financial resources, and achievement of cost and schedule targets. Topics include strategic project management, project and organizational learning, lean thinking, cost, schedule planning and control, structuring of performance measures and metrics, technical teaming and project management, information technology support, risk management, and process control. Course delivery consists of lectures, speakers, case studies, and experience sharing, and reinforces collaborative project-based learning and continuous improvement. Prerequisite: MN3108 . MN3420 Supply Chain Management (3-0) As Required This course is designed to provide an introduction to supply chain management (SCM). A supply chain is a network of organizations that supply and transform materials, and distribute final products to customers. Supply chain management is a broadly defined term for the analysis and improvement of flows of material, information, and money through this network of suppliers, manufacturers, distributors, and customers. The objective of SCM is to deliver the right product to the right customer at the right time. SCM emphasizes inventory-service level tradeoffs across the chain of players that, together, provide the product to a customer. Logistics has traditionally focused on materials issues within and downstream from the factory while SCM looks at the entire network of players, both up and down stream, and perhaps has more of an emphasis on information flows through the network. Logistics has traditionally been considered a more tactical topic while SCM has risen to prominence in recent years, attracting high-level attention. Ultimately, logistics and SCM activities are concerned with coordinating demand and supply. Common elements in that coordination are the management of materials (inventories), the location of materials (warehouses), and the movement of materials (transportation). As part of the coordination, an analyst must consider product and process designs as well as information flows between various players in the networks. These elements will form the basis of this course. This course is the Distance Learning version of GB4480. Prerequisites: MN3042, MN4043. MN3510 Defense Financial Management Practice (3-0) FallSpring This distance learning course is designed for MBA students and presumes the student has a foundation including the PPBE system and Congressional Authorization and Appropriation processes. This course concentrates on financial management practices within DoD as distinct from policy and budgeting theory. The course covers the actors and activities and mechanics of building and defending budgets. It covers funding mechanisms for programs and activities, addressing the proper use and management of appropriated, reimbursable, and revolving funds. Basic principles of fiscal law are explored. It then addresses financial management and stewardship topics including budgetary accounting, management of cost drivers, the relationship between comptrollership and contracting, and internal controls. Contemporary financial management issues are discussed. Exercises and case studies are used to develop the students ability to apply financial management concepts to real life situations. Prerequisite: None. MN3611 Introduction to Business Law (4-0) Fall The course will focus on the legal, ethical and practical aspects of business law to prepare students for their roles as leaders within the military and other government positions who necessarily interact with businesses. Key topics include the U. S. legal system, business organizations, agency, contracts, torts, real and intellectual property, and creditor-debtor relations. Class time is a combination of lecture and case-based discussion. Emphasis is placed on learning legal principles, analytical problem-solving based on those principles, and ethical decision making. Prerequisite: None. ltMN3760 - MN4091 Coursesgt MN3810 Fundamental Issues in Energy Technology Adoption (4-0) Winter This course is designed to cater to all NPS energy curric students who need to know something about how the great new technologies, ideas and practices they research and talk about in other classes might actually get adopted by some DoD entity, and how to get them adopted. It is also appropriate for any other NPS students who would like to learn about some of the basic issues in technology adoption, and dont mind learning it mainly through energy related MN3900 Readings In System Management (V-0) FallWinterSpringSummer An individualized program of readings and study in some area of the systems management, designed to meet the students special educational needs. Prerequisites: A background in the area of study and departmental approval graded on a PassFail basis only. MN4043 Business Modeling and Analysis (3-0) As Required This course introduces mathematical modeling for a sound conceptual understanding of the decision-making process. This course familiarizes the students with applications, assumptions, and limitations of the quantitative methods in modeling. It focuses on the development of mathematical and spreadsheet models, the verification of those models, sensitivity analysis of the solutions generated from a model, and the implementation of those solutions. Some of the topics covered include linear programming, non-linear and integer programming, simulation, and forecasting. The process of modeling and particular modeling tools are applied to business problems in finance, acquisition, logistics and manpower planning. This course is the Distance Learning version of GB4043. Prerequisites: None. MN4053 Defense Budget and Financial Management Policy (4-0) WinterSummer This distance learning course analyzes the resource requirements process within the Department of Defense (DoD) and in the executive and legislative branches of the federal government. It begins with a summary of the current threat situation and potential changes to it. Once the threat is defined, the study of the resource allocation process to meet the threat begins. The course covers the resource planning and budgeting processes of the Department of the Navy, DoD and the federal government. It includes the politics of executive and congressional budgeting, and DoD budget and financial management processes and procedures including budget formulation and execution. It also includes analysis of the Planning, Programming, Budgeting Execution System (PPBES) used by DoD to plan, budget and implement national defense resource management policy and programs. Other areas included are budget process and fiscal policy reform and the dynamics of internal DoD competition for resources. Executive and congressional budget processes are assessed to indicate how national security policy is resourced and implemented through the budget process. Spending for national security policy is tracked from budget submission through resolution, authorization and appropriation. Budget formulation, negotiation, and execution strategies are evaluated to indicate the dynamics of executive-legislative competition over resource allocation priorities. Supplemental appropriation patterns and current year budget execution patterns and problems are also considered. Prerequisite: None. MN4090 Joint Applied Project I (2-0) FallWinterSpringSummer Course reflects laboratory hours dedicated to presenting research techniques and independentteam efforts needed to conduct Joint Applied Project research and analysis and to produce the Professional Report. These laboratory hours will be used by students and student teams for interactions with their Joint Applied Project advisors, Academic Associate(s), editors, and thesis processors in producing high quality, disciplined research products for publication as appropriate. Prerequisite: None. ltMN4104 - MN4123 Coursesgt MN4105 Strategic Management (3-0) As Required Strategic Management entails the establishment of an organizations direction and the implementation and evaluation of that direction given the organizations external environment and its internal capabilities. The principal aim of this course is the transfer and adaptation of the principles of business strategic management to the Department of Defense and other federal agencies. In previous courses, students concentrate on the functional elements of management (e. g. accounting, finance, acquisition, logistics, contracting, etc.). This course addresses the challenges of setting direction and implementing strategies for the total system or whole organization. Cases and approaches from the public and private sectors enable students to develop the knowledge, skills, and abilities to strategically think, plan, and manage. Prerequisites: MN3012 . MN4106 Manpower Personnel Policy Analysis (4-0) Fall Study and analysis of military manpower personnel policy alternatives with emphasis on identifying the trade-offs involved, the dynamic impact of major policy decisions and the short-term and long-term consequences of decisions. Review, use and evaluation of tools to aid in selecting policy alternatives. Analysis of issues in the DoD and military services. Prerequisites: MN3760. MN4111. MN4110 Multivariate Manpower Data Analysis I (4-1) Winter An introduction to multivariate data analysis. This section will focus on the tools necessary to perform data analysis. The primary goal of this course is to introduce multiple linear regression models. The second goal involves making correct inferences and interpretations of the findings. Special topics include hypothesis testing, model specification issues, multicollinearity, dummy variables, and research methodology. Prerequisite: GB3040 or consent of instructor. MN4111 Multivariate Manpower Data Analysis II (4-1) Spring An introduction to the specialized multivariate techniques used for analysis of military manpower data. Topics include advanced linear estimation techniques, such as panel data analysis and two-stage models. In addition, nonlinear methods are introduced, such as binary choice models and survival analysis. The course also covers special techniques for policy evaluation and reduction of estimation bias due to omitted variables or sample selection. Students apply techniques to manpower databases. Prerequisite: MN4110, or consent of instructor. MN4114 Sociological and Psychological Perspectives on Military Service (4-0) Summer Exploration of the concepts, theories, and methods of military sociology and military psychology as applied historically and in the current setting. Study of the military as a social institution, focusing on the internal organization and practices of the armed forces as well as the relationship between the military and society. Review and evaluation of the psychological principles employed in a variety of military areas such as health care, selection and job classification, human factors, organizational systems, personnel security, and performance appraisal. Emphasis on representative cases in DoD and the armed forces. Prerequisite: GB3010 . MN4115 Foundations of Education and Learning in DoD Organizations (4-0) Fall Analysis of issues in DoD education, learning and training (ELT). Major course themes focus on understanding adult military ELT from a strategic systems perspective analyzing instructional program design, implementation, and technologies and applying methods of needs analysis and program evaluation. Examination of how DoD can become a learning organization to respond to the dynamic demands of both the organization and its military members. Guest speakers, military publications, student cases, and discussion based on the experience of the instructor and the students are utilized to maintain the necessary focus on current military applications. Prerequisite: GB3010 . MN4116 Society of Human Resource Management (0-3) FallSpring This course prepares students for taking the Human Resource Certification Institute (HRCI) certification examination. Prerequisite: Enrollment in the MSA curriculum and consent of instructor. MN4119 Navy Manpower Requirements Process (3-0) Summer An in-depth analysis of fleet and shore unit Manpower requirements and personnel documents. The course will cover the determination and validation of fleet requirements as they pertain to an operational units Required Operational Capabilities and Projected Operational Environment and the resulting Ship Manpower Document (SMD), Squadron Manpower Document (SQMD), and Fleet Manpower Document (FMD) and how the Shore Manpower Requirements Determination Process (SMRDP) links the Mission, Function and Task statement to the resulting Statement of Manpower Requirements (SMR). The course covers how fleet and shore manpower documents link with the Activity Manpower Document (AMD). The Personnel sub-process will be studied as it relates to the Enlisted Distribution and Verification Report (EDVR) in support of fleet readiness. Prerequisites: Enrollment in the MSA curriculum and consent of instructor. MN4123 Organizing and Planning In Complex Networks (4-0) Summer In 21st century operational and policy settings, people are expected to work in networks to get things done. Operating beyond the boundaries of any one organization in an inter-organizational domain, network members are called upon to join forces and work collaboratively with others. Network collaborations are difficult, however, because they challenge traditional management assumptions. Members must coordinate without hierarchy, lead without formal authority, and solve problems and make decisions without someone being quotin control:quot or quotin charge. quot This course provides the basic knowledge, skills, and abilities to enable students to work collectively in networks, especially those with members who come from different cultural, ethnic and national organizations. With the use of cases, experiential exercises, and simulations, students learn how to craft and execute collaborative strategies to improve network performance. Prerequisite: Consent of instructor. ltMN4125 - MN4157 Coursesgt MN4125 Managing Planned Change in Complex Organizations (4-0) Spring Examination of the approaches to planning and managing change efforts in complex social systems made up of the interdependent components of technology, structure, task, and people and of the role of the manager or staff specialist and the process of helping. Emphasis is placed on strategies and technologies for diagnosis and planning aimed at effective implementation. Course provides opportunities for practice using both simulations and actual organizational cases. Particular emphasis is placed on the DoD DoN organizations and the special problems they have in bringing about change. MN4130 Marine Manpower Management (3-0) Summer Upon completion of this course, the student will have an in-depth understanding of USMC Manpower Management and implementation of management policy techniques through analysis, procedures, organizational and administrative actions to better staff Headquarters Marine Corp management policy issues. USMC officers will gain insight into management actions that support budget requirement requests and the resource allocation efforts subsequent to budget approval. Each officer will develop an understanding of the relationship between the Table of Organization (TO), Troop List (TL) and the Authorized Strength Report (ASR). Each officer will complete an UNS report. Graded (3-0). Prerequisite: MN2111 or consent of instructor. MN4157 Seminar in Management Accounting I (3-0) FallSpring This course complements the financial management program by covering significant topics not otherwise included in the program to prepare students to obtain the Certified Management Accountant (CMA) andor Certified in Financial Management (CFM) designation. This course covers topics in business analysis, corporate financial management, management accounting and reporting, and strategic management. This course reviews, in more depth, topics covered in the introductory financial and cost management course. Specific topics addressed in the course may vary. Prerequisite: GB3050 and GB3051 . ltMN4304 - MN4379 Coursesgt MN4304 Defense Systems Contracting (2-0) WinterSummer This course is the study of the DoDs major systems contracting policies, processes, procedures, and practices. A review of major systems acquisition and program management is provided but the primary focus is on the contracting process used to acquire defense systems for the various services. The topics covered include: acquisition environment, acquisition strategy, source selection, incentive contracting, alpha contracting, multi-year procurement, and requirementcapability specifications. Prerequisites: MN3331 or MN3222 . MN4307 Program Management Policy and Control (4-0) FallWinterSpringSummer This course provides the student with knowledge and understanding of major systems management control processes and tools, application of program management control systems and the use of computer-based management information systems with strategic media choices so as to develop effective media campaigns, interact effectively with the print and broadcast news media, and handle press conferences and similar media events. Particular attention is focused on anticipating and handling crisis communication. Specifically, students will learn to organize crisis management teams, develop crisis management plans, and create communication plans to manage information and public perception. Case studies involving program management problem solving and decision making in the acquisition environment are used. Prerequisite: MN3331 or MN3392, MN3303, MN3155 (or GB4053 or MN3364), MN4470 (or GB4450 or MN3365), MN3384 (or MN3363), MN3309 (or MN3361), and MN4602 (or MN3362). MN4311 Contracting for Services (3-0) FallSpring This course studies the DoDs major services contracting policies, processes, procedures, and practices. Detailed and critical examination of current policies, issues, and practices in services contracting, to include performance based services contracting (PBSC), is accomplished through extensive case, policy, and report analysis requiring synthesis of concepts, processes and best practices. A review of major services acquisition and program management is provided but the primary focus is on the contracting process used to acquire major services for the DoD. Topics include: information technology services, base operating support services, environmental services, construction services, and contractor logistics support. Prerequisites: MN3331 and MN3303 or by permission of the instructor. MN4366 Program Management and Leadership (4-0) Summer This course provides the student with knowledge and understanding of major systems management control processes and tools, application of program management control systems and the use of computer-based management information systems with strategic media choices so as to develop effective media campaigns, interact effectively with the print and broadcast news media, and handle press conferences and similar media events. Particular attention is focused on anticipating and handling crisis communication. Specifically, students will learn to organize crisis management teams, develop crisis management plans, and create communication plans to manage information and public perception. Case studies involving program management problem solving and decision making in the acquisition environment are used. Prerequisites: MN3331 or MN3109MN3392, MN3303 (or MN3371), MN3155 (or GB4053 or MN3364), MN4470 (or GB4450 or MN3365), MN3384 (or MN3363), MN3309 (or MN3361), and MN4602 (or MN3362). MN4371 Acquisition and Contracting Policy (4-0) FallSpring This course uses case studies and current acquisition issues to analyze government and business acquisitioncontracting policies. Emphasis is on acquisition decision making and policy formulationexecution. Prerequisites: MN3304. MN3320 and MN3312 (or equivalent) MN4374 Capstone Seminar in Enterprise Sourcing (3-0) SummerWinter This course is a graduate-level seminar in category management and enterprise sourcing. The primary purpose and objective of MN4374 is to provide the student with an opportunity to review and analyze the concepts and disciplines of category management and enterprise sourcing, to demonstrate critical analysis and thinking skills in applying category management and enterprise sourcing techniques to make DoD and other federal agencies quotworld-classquot buying organizations. A second purpose is to investigate the specific topics, concepts and theories that are projected to be of high interest to DoD acquisition activities of the future. The course is designed to capitalize on the foundations provided by MN3306 and MN3307, although MN3306 is the only required prerequisite. Critical thinking and analytical skills are developed in designing and executing the most efficient and effective category management and enterprise sourcing organizations and associated business processes. Prerequisite: MN3306. MN4379 Operations Management (4-0) Winter This course introduces students to problems and analysis related to the design, planning, control, and improvement of manufacturing and service operations. It will extensively utilize case studies and analytical problem sets. Topics include operations strategy, process analysis, project analysis, materials management, production planning and scheduling, quality management, computer-aided manufacturing, capacity and facilities planning, and theory of constraints applied to product development. The course will equip students with the basic tools and techniques used in analyzing operations, as well as the strategic context for making operational decisions. Prerequisites: MN3108. MN3117. and OS3211. or consent of instructor. ltMN4414 - MN4999 Coursesgt MN4450 Logistics Strategy (3-0) As Required This is the logistics capstone course. The course is concerned with the linkage between strategic objectives and how to enable and support those objectives, and explores how fundamental aspects of logistics planning and execution provide input to and shape 8220big decisions.8221 It expands the understanding of logistics strategy as a concept within the area of operations, logistics and supply chain management. The course examines and critiques both established and emerging logistics practices in terms of costs and benefits, and it explores how to develop and advocate alternative logistics approaches to support current and future institutional goals while mitigating associated risks. Prerequisites: GB3051 and GB4052 recommend GB3510 unless enrolled in the MBA Energy Program. MN4470 Strategic Planning and Policy for The Logistic Manager (4-0) WinterSummer The course explores and analyzes the concepts, processes and methods of strategic logistics planning and execution, emphasizing proactive techniques to ensure maximum logistics influence on major weapon systems acquisition as well as optimum life cycle management of fielded systems. The course will examine and analyze key opportunities for maximum logistics influence in requirements development, contracting, test and evaluation, reliability and maintainability, as well as financial management and communications. The course will feature logistics management relevance to service roles and missions. The course will employ lectures, guided discussions, case studies, role-playing, panel discussions and lessons learned in the DoD acquisition environment. Upon successful completion of the course, the student will be awarded a DAWIA (Defense Acquisition Workforce Improvement Act) Level III certificate for Acquisition Logistics. Prerequisite: GB4410 or consent of instructor. MN4474 Organizational Analysis (3-1) As Required This course prepares leaders to analyze, understand, and influence organizations and organizational processes. The focus is on principles and techniques for diagnosing managerial problems and developing solutions. The course combines theoretical and practical knowledge to prepare students for situations that commonly arise and give them the tools to deal with unexpected or unusual situations. First, we build foundational understanding of how organizations work, viewing people, technologies, tasks, and structures as interrelated components of complex systems. Then we apply this understanding to real organizations. From a leadership perspective, we identify ways to improve an organizations efficiency and effectiveness, motivate subordinate and peer performance, manage organizational boundaries, and increase the likelihood that evidence-based decisions and actions will be taken. Students complete a course project analyzing the structures, processes, boundary-spanning activities, and environment of an organization. MN4474 is a distributed learning course that meets via online communications. Prerequisite: none. MN4602 Test and Evaluation Management (2-2) FallWinterSpringSummer Designed to cover Developmental, Operational and Joint Test and Evaluation, including planning concepts and procedures frequently used in test and evaluation programs. Taught from the perspective of the Program Manager, Test Project Officer and Test Engineer. Actual military cases are used for examples. Topics include the role of Test and Evaluation in Systems Engineering and Acquisition Management, DT and OT test planning, introduction to test design, conduct of tests, live fire testing, modeling and simulation, human systems integration (HIS), reporting of test results, range and resource issues, and lessons learned. Student teams will write a detailed test plan. Prerequisite: MN3302 . MN4760 Manpower Economics I ( 4-0 ) Winter An introduction to the theoretical aspects of labor economics. Concepts covered include the supply of labor, the demand for labor, wage determination, internal labor markets, human capital, earnings functions, turnover, compensation systems, and compensating wage differentials. Special readings are used that apply the principles to military manpower. Prerequisite: None. MN4761 Applied Manpower Analysis (4-0) Spring This course examines various Navy and DoD manpower issues and policies using different quantitative techniques. The manpower issues examined include predicting outcomes and analyzing policies related to recruiting, attrition, reenlistment, and other manpower outcomes. Students will further develop skills to properly scrutinize empirical studies and develop sound empirical analysis. Prerequisites: MN3760 and MN4110. Corequisite MN4111. MN4900 Readings in Management (V-0) FallWinterSpringSummer An individualized program of advanced readings and study in some area of Systems Management. Prerequisites: A background of advanced work in the area of study and departmental approval. Graded on a PassFail basis only. MN4970 Seminar in Systems Management (V-0) FallWinterSpringSummer Study of a variety of topics of general interest in the systems management, to be determined by the instructor. Prerequisites: A background in systems management and consent of instructor. MN4999 Elective (4-0) As Required Defense Resources Management Institute (DRMI)Energy Conservation Measures Conclusion 1. Energy is necessary for daily survival. Future development crucially depends on its long-term availability in increasing quantities from sources that are dependable, safe, and environmentally sound. At present, no single source or mix of sources is at hand to meet this future need. 2. Concern about a dependable future for energy is only natural since energy provides essential services for human life - heat for warmth, cooking, and manufacturing, or power for transport and mechanical work. At present, the energy to provide these services comes from fuels - oil, gas, coal, nuclear, wood, and other primary sources (solar, wind, or water power) - that are all useless until they are converted into the energy services needed, by machines or other kinds of end-use equipment, such as stoves, turbines, or motors. In many countries worldwide, a lot of primary energy is wasted because of the inefficient design or running of the equipment used to convert it into the services required though there is an encouraging growth in awareness of energy conservation and efficiency. 3. Todays primary sources of energy are mainly non-renewable: natural gas, oil, coal, peat, and conventional nuclear power. There are also renewable sources, including wood, plants, dung, falling water, geothermal sources, solar, tidal, wind, and wave energy, as well as human and animal muscle-power. Nuclear reactors that produce their own fuel (breeders) and eventually fusion reactors are also in this category. In theory, all the various energy sources can contribute to the future energy mix worldwide. But each has its own economic, health, and environmental costs, benefits, and risks - factors that interact strongly with other governmental and global priorities. Choices must be made, but in the certain knowledge that choosing an energy strategy inevitably means choosing an environmental strategy. 4. Patterns and changes of energy use today are already dictating patterns well into the next century. We approach this question from the standpoint of sustainability. The key elements of sustainability that have to be reconciled are: sufficient growth of energy supplies to meet human needs (which means accommodating a minimum of 3 per cent per capita income growth in developing countries) energy efficiency and conservation measures, such that waste of primary resources is minimized public health, recognizing the problems of risks to safety inherent in energy sources and protection of the biosphere and prevention of more localized forms of pollution. 5. The period ahead must be regarded as transitional from an era in which energy has been used in an unsustainable manner. A generally acceptable pathway to a safe and sustainable energy future has not yet been found. We do not believe that these dilemmas have yet been addressed by the international community with a sufficient sense of urgency and in a global perspective. 6. The growth or energy demand in response to industrialization, urbanization, and societal affluence has led to an extremely uneven global distribution of primary energy consumption. 1 The consumption of energy per person in industrial market economies, for example, is more than 80 times greater than in sub-Saharan Africa. (See Table 7-1.) And about a quarter of the worlds population consumes three-quarters of the worlds primary energy. kW per capita is kW yearsyear per capita. Population-weighted average energy consumption (kWcapita) for first three main categories is 0.654 and for industrial market and East European categories is 6.76. Source: Based on World Bank, World Development Report 1985 (New York: Oxford University Press, 1986). 7. In 1980, global energy consumption stood at around 10TW. 2 (See Box 7-1.) if per capita use remained at the same levels as today, by 2025 a global population of 6.2 billion 3 would need about 14TW (over 4TW in developing and over 9TW in industrial countries) - an increase of 40 per cent over 1980. But if energy consumption per head became uniform worldwide at current industrial country levels, by 2025 that same global population would require about 55TW. Box 7-1 Energy Units A variety of units are used to measure energy production and use in physical terms. This chapter user the kilowatt (kW) the Gigawatt (GW), which is equal to 1 million kW and the Terawatt (TW), which is equal to 1 billion kilowatts. One kilowatt - a thousand watts of energy - if emitted continuously for a year is lkW year. Consuming 1 kW yearyear is equivalent to the energy liberated by burning 1,050 kilogrammes - approximately 1 ton - of coal annually. Thus a TW year is equal to approximately 1 billion tons of coal. Throughout the chapter, TW yearsyear is written as TW. 8. Neither the low nor the high figure is likely to prove realistic, but they give a rough idea of the range within which energy futures could move, at least hypothetically. Many other scenarios can be generated in-between, some of which assume an improved energy base for the developing world. For instance, if the average energy consumption in the low - and middle-income economies trebled and doubled, respectively, and if consumption in the high-income oil-exporting and industrial market and non-market countries remained the same as today, then the two groups would be consuming about the same amounts of energy. The low - and middle-income categories would need 10.5TW and the three high categories would use 9.3TW - totalling 20TW globally, assuming that primary energy is used at the same levels of efficiency as today. 9. How practical are any of these scenarios Energy analysts have conducted many studies of global energy futures to the years 2020-2030. 4 Such studies do not provide forecasts of future energy needs, but they explore how various technical, economic, and environmental factors may interact with supply and demand. Two of these are reviewed in Box 7-2, though a much wider range of scenarios - from 5TW up to 63TW - are available. In general, the lower scenarios (14.4TW by 2030, 5 11.2TW by 2020. 6 and 5.2 by 2030 7 ) require an energy efficiency revolution. The higher scenarios (18.8TW by 2025. 8 24.7TW by 2020, 9 and 35.2 by 2030 10 ) aggravate the environmental pollution problems that we have experienced since the Second World War. Box 7-2 Two Indicative Energy Scenarios Case A: High Scenario By the year 2030, a 35TW future would involve producing 1.6 tines as much oil, 3.4 times as much natural gas, and nearly 5 times as much coal as in 1960. This increase in fossil fuel use implies bringing the equivalent of a new Alaska pipeline into production every one to two years. Nuclear capacity would have to be increased 30 times over 1960 levels - equivalent to installing a new nuclear power station generating 1-gigawatt of electricity every two to four days. This 35TW scenario is still well below the 55TW future that assumes todays levels of energy consumption per capita in industrial countries are achieved in all countries. Case B: Low Scenario Taking the 11.2TW scenario as a highly optimistic example of a strong conservation strategy. 2020 energy demand in developing and industrial countries is quoted as 7.3TW and 3.9TW respectively, as compared with 3.3TW and 7.0TW in 1980. This would mean a saving of 3.1TW in industrial countries by 2020 and an additional requirement of 4.0TW in developing countries. Even if developing countries were able to acquire the liberated primary resource, they would still be left with a shortfall of 0.9TW in primary supply. Such a deficit is likely to be much greater (possibly two to three times), given the extreme level of efficiency required for this scenario, which is unlikely to be realized by most governments. In 1980, the following breakdown of primary supply was quoted: oil, 4.2TW coal, 2.4 gas, 1.7 renewables, 1.7 and nuclear, 0.2. The question is - where will the shortfall in primary energy supply come from This rough calculation serves to illustrate that the postulated average growth of around 30 per cent per capita in primary consumption in developing countries will still require considerable amounts of primary supply even under extremely efficient energy usage regimes. Sources . The 35TW scenario was originated in Energy Systems Group of the International Institute for Applied Systems Analysis, Energy in a Finite World - A Global Systems Analysis . (Cambridge, Mass. Ballinger, 1981) all other calculations are from J. Goldemberg et al. An End-Use Oriented Global Energy Strategy, Annual Review of Energy, Vol. 10 1985. 10. The economic implications of a high energy future are disturbing. A recent World Bank Study indicates that for the period 1960-95, a 4.1 per cent annual growth in energy consumption, approximately comparable to Case A in Box 7-2, would require an average annual investment of some 130 billion (in 1982 dollars) in developing countries alone. This would involve doubling the share of energy investment in terms of aggregate gross domestic product. 11 About half of this would have to come from foreign exchange and the rest from internal spending on energy in developing countries. 11. The environmental risks and uncertainties of a high energy future are also disturbing and give rise to several reservations. Four stand out: the serious probability of climate change generated by the greenhouse effect of gases emitted to the atmosphere, the most important of which is carbon dioxide (CO2) produced from the combustion of fossil fuels 12 urban-industrial air pollution caused by atmospheric pollutants from the combustion of fossil fuels 13 acidification of the environment from the same causes 14 and the risks of nuclear reactor accidents, the problems of waste disposal and dismantling of reactors after their service life is over, and the dangers of proliferation associated with the use of nuclear energy. Along with these, a major problem arises from the growing scarcity of fuelwood in developing countries. If trends continue, by the year 2000 around 2.4 billion people may be living in areas where wood is extremely scarce. 15 12. These reservations apply at even lower levels of energy use. A study that proposed energy consumption at only half the levels of Case A (Box 7-2) drew special attention to the risks of global warning from CO2. 16 The study indicated that a realistic fuel mix - a virtual quadrupling of coal and a doubling of gas use, along with 1.4 times as much oil - could cause significant global warming by the 2020s. No technology currently exists to remove CO2 emissions from fossil fuel combustion. The high coal use would also increase emissions of oxides of sulphur and nitrogen, much of which turns to acids in the atmosphere. Technologies to remove these latter emissions are now required in some countries in all new and even some old facilities, but they can increase investment costs by 15-25 per cent. 17 If countries are not prepared to incur these expenses, this path becomes even more infeasible, a limitation that applies much more to the higher energy futures that rely to a greater extent on fossil fuels. A near doubling of global primary energy consumption will be difficult without encountering severe economic, social, and environmental constraints. Energy is, put most simply, the fundamental unit of the physical world. As such, we cannot conceive of development without changes in the extent or the nature of energy flows. And because it is so fundamental, every one of those changes of flows has environmental implications. The implications of this are profound. It means that there is no such thing as a simple energy choice. They are all complex. And they all involve trade-offs. However, some of the choices and some of the trade-offs appear to be unequivocally better than others, in the sense that they offer more development and less environmental damage. David Brooks Friends of the Earth WCED Public Hearings Ottawa, 26-27 May 1986 13. This raises the desirability of a lower energy future, where GDP growth is not constrained but where investment effort is switched away from building more primary supply sources and put into the development and supply of highly efficient fuel-saving end-use equipment. In this way, the energy services needed by society could be supplied at much reduced levels of primary energy production. Case B in Box 7-2 allows for a 50 per cent fall in per capita primary energy consumption in industrial countries and a 30 per cent increase in developing countries. 18 By using the most energy-efficient technologies and processes now available in all sectors of the economy, annual global per capita GDP growth rates of around 3 per cent can be achieved. This growth is at least as great as that regarded in this report as a minimum for reasonable development. But this path would require huge structural changes to allow market penetration of efficient technologies, and it seems unlikely to be fully realizable by most governments during the next 40 years. 14. The crucial point about these lower, energy-efficient futures is not whether they are perfectly realisable in their proposed time frames. Fundamental political and institutional shifts are required to restructure investment potential in order to move along these lower, more energy-efficient paths. 15. The Commission believes that there is no other realistic option open to the world for the 21st century. The ideas behind these lower scenarios are not fanciful. Energy efficiency has already shown cost-effective results. In many industrial countries, the primary energy required to produce a unit of GDP has fallen by as much as a quarter or even a third over the last 13 years, much of it from implementing energy efficiency measures. 19 Properly managed, efficiency measures could allow industrial nations to stabilize their primary energy consumption by the turn of the century. They would also enable developing countries to achieve higher levels of growth with much reduced levels of investment, foreign debt, and environmental damage. But by the early decades of the 21st century they will not alleviate the ultimate need for substantial new energy supplies globally. 16. Many forecasts of recoverable oil reserves and resources suggest that oil production will level off by the early decades of the next century and then gradually fall during a period of reduced supplies and higher prices. Gas supplies should last over 200 years and coal about 3.000 years at present rates of use. These estimates persuade many analysts that the world should immediately embark on a vigorous oil conservation policy. 17. In terms of pollution risks, gas is by far the cleanest fuel, with oil next and coal a poor third. But they all pose three interrelated atmospheric pollution problems: global warming, 20 urban industrial air pollution, 21 and acidification of the environment. 22 Some of the wealthier industrial countries may possess the economic capacity to cope with such threats. Most developing countries do not. 18. These problems are becoming more widespread particularly in tropical and subtropical regions, but their economic, social, and political repercussions are as yet not fully appreciated by society. With the exception of CO2, air pollutants can be removed from fossil fuel combustion processes at costs usually below the costs of damage caused by pollution. 23 However, the risks of global warming make heavy future reliance upon fossil fuels problematic. 19. The burning of fossil fuels and, to a lesser extent, the loss of vegetative cover, particularly forests, through urban-industrial growth increase the accumulation of CO2 in the atmosphere. The pre-industrial concentration was about 280 parts of carbon dioxide per million parts of air by volume. This concentration reached 340 in 1980 and is expected to double to 560 between the middle and the end of the next century. 24 Other gases also play an important role in this greenhouse effect, whereby solar radiation is trapped near the ground, warming the globe and changing the climate. 20. After reviewing the latest evidence on the greenhouse effect in October 1985 at a meeting in Villach, Austria, organized by the WMO, UNEP, and ICSU, scientists from 29 industrialized and developing countries concluded that climate change must be considered a plausible and serious probability. They further concluded that: Many important economic and social decisions are being made today on. major water resource management activities such as irrigation and hydropower drought relief agricultural land use structural designs and coastal engineering projects and energy planning - all based on the assumption that past climatic data, without modification, are a reliable guide to the future. This is no longer a good assumption. 25 21. They estimated that if present trends continue, the combined concentration of CO2 and other greenhouse gases in the atmosphere would be equivalent to a doubling of CO2 from pre-industrial levels, possibly as early as the 2030s, and could lead to a rise in global mean temperatures greater than any in mans history. 26 Current modelling studies and experiments show a rise in globally averaged surface temperatures, for an effective CO2 doubling, of somewhere between 1.5C and 4.5C, With the warming becoming more pronounced at higher latitudes during winter than at the equator. 22. An important concern is that a global temperature rise of 1.5-4.5C, with perhaps a two to three times greater warming at the poles, would lead to a sea level rise of 25-140 centimetres. 27 A rise in the upper part of this range would inundate low-lying coastal cities and agricultural areas, and many countries could expect their economic, social, and political structures to be severely disrupted. It would also alow the atmospheric heat-engine, which is driven by the differences between equatorial and polar temperatures, thus influencing rainfall regimes. 28 Experts believe that crop and forest boundaries will move to higher latitudes the effects of warmer oceans on marine ecosystems or fisheries and food chains are also virtually unknown. 23. There is no way to prove that any of this will happen until it actually occurs. The key question is: How much certainty should governments require before agreeing to take action If they wait until significant climate change is demonstrated, it may be too late for any countermeasures to be effective against the inertia by then stored in this massive global system. The very long time lags involved in negotiating international agreement on complex issues involving all nations have led some experts to conclude that it is already late. 29 Given the complexities and uncertainties surrounding the issue, it is urgent that the process start now. A four track strategy is needed, combining: improved monitoring and assessment of the evolving phenomena increased research to improve knowledge about the origins, mechanisms, and effects of the phenomena the development of internationally agreed policies for the reduction of the causative gases and adoption of strategies needed to minimize damage and cope with the climate changes, and rising sea level. 24. No nation has either the political mandate or the economic power to combat climatic change alone. However, the Villach statement recommended such a four track strategy for climate change, to be promoted by governments and the scientific community through WMO, UNEP, and ICSU - backed by a global convention if necessary. 30 It is difficult to imagine an issue with more global impacts on human societies and the natural environment than the greenhouse effect. The signal is unclear but we may already be witnessing examples, if not actual greenhouse effects, in Africa. The ultimate potential impacts of a greenhouse warming could be catastrophic. It is our considered judgement that it is already very late to start the process of policy consideration. The process of heightening public awareness, of building support for national policies, and finally for developing multilateral efforts to slow the rate of emissions growth will take time to implement. The greenhouse issue is an opportunity as well as a challenge not surprisingly, it provides another important reason to implement sustainable development strategies. Irving Mintzer World Resources Institute WCED Public Hearing Oslo, 24-25 June 1985 25. While these strategies are being developed, more immediate policy measures can and should be adopted. The most urgent are those required to increase and extend the recent steady gains in energy efficiency and to shift the energy mix more towards renewables. Carbon dioxide output globally could be significantly reduced by energy efficiency measures without any reduction of the tempo of GDP growth. 31 These measures would also serve to abate other emissions and thus reduce acidification and urban-industrial air pollution. Gaseous fuels produce less carbon dioxide per unit of energy output than oil or coal and should be promoted, especially for cooking and other domestic uses. 26. Gases other than carbon dioxide are thought to be responsible for about one-third of present global warming, and it is estimated that they will cause about half the problem around 2030. 32 some of these, notably chlorofluorocarbons used as aerosols, refrigeration chemicals, and in the manufacture of plastics, may be more easily controlled than CO2. These, although not strictly energy-related, will have a decisive influence on policies for managing carbon dioxide emissions. 27. Apart from their climatic effect, chlorofluorocarbons are responsible to a large extent for damage to the earths stratospheric ozone. 33 The chemical industry should make every effort to find replacements, and governments should require the use of such replacements when found (as some nations have outlawed the use of these chemicals as aerosols). Governments should ratify the existing ozone convention and develop protocols for the limitation of chlorofluorocarbon emissions, and systematically monitor and report implementation. 28. A lot of policy development work is needed. This should proceed hand in hand with accelerated research to reduce remaining scientific uncertainties. Nations urgently need to formulate and agree upon management policies for all environmentally reactive chemicals released into the atmosphere by human activities, particularly those that can influence the radiation balance on earth. Governments should initiate discussions leading to a convention on this matter. 29. If a convention on chemical containment policies cannot be implemented rapidly, governments should develop contingency strategies and plans for adaptation to climatic change. In either case, WMO, UNEP, WHO, ICSU, and other relevant international and national bodies should be encouraged to coordinate and accelerate their programmes to develop a carefully integrated strategy of research, monitoring, and assessment of the likely impacts on climate, health, and environment of all environmentally reactive chemicals released into the atmosphere in significant quantities. 30. The past three decades of generally rapid growth worldwide have seen dramatic increases in fuel consumption for heating and cooling, automobile transport, industrial activities, and electricity generation. Concern over the effects of increasing air pollution in the late 1960s resulted in the development of curative measures, including air-quality criteria, standards, and add-on control technologies that can remove pollutants cost-effectively. All these greatly reduced emissions of some of the principal pollutants and cleaned air over many cities. Despite this, air pollution has today reached serious levels in the cities of several industrial and newly industrialized countries as well as in those of most developing countries, which in some cases are by now the worlds most polluted urban areas. 31. The fossil fuel emissions of principal concern in terms of urban pollution, whether from stationary or mobile sources, include sulphur dioxide, nitrogen oxides, carbon monoxide, various volatile organic compounds, fly ash, and other suspended particles. They can injure human health and the environment, bringing increased respiratory complaints, some potentially fatal. But these pollutants can be contained so as to protect human health and the environment and all governments should take steps to achieve acceptable levels of air quality. 32. Governments can establish and monitor air quality goals and objectives, allowable atmospheric loadings, and related emission criteria or standards, as some successfully do already. Regional organizations can support this effort. Multilateral and bilateral development assistance agencies and development banks should encourage governments to require that the most energy-efficient technology be used when industries and energy utilities plan to build new or extend existing facilities. 33. Measures taken by many industrialized countries in the 1970s to control urban and industrial air pollution (high chimney stacks, for example) greatly improved the quality of the air in the cities concerned. However, it quite unintentionally sent increasing amounts of pollution across national boundaries in Europe and North America, contributing to the acidification of distant environments and creating new pollution problems. This was manifest in growing damage to lakes, soils, and communities of plants and animals. 34 Failure to control automobile pollution in some regions has seriously contributed to the problem. 34. Thus atmospheric pollution, once perceived only as a local urban-industrial problem involving peoples health, is now also seen as a much more complex issue encompassing buildings, ecosystems, and maybe even public health over vast regions. During transport in the atmosphere, emissions of sulphur and nitrogen oxides and volatile hydrocarbons are transformed into sulphuric and nitric acids, ammonium salts, and ozone. They fall to the ground, sometimes many hundreds or thousands of kilometres from their origins, as dry particles or in rain, snow, frost, fog, and dew. Few studied of their socio-economic costs are available, but these demonstrate that they are quite large and suggest that they are growing rapidly. 35 They damage vegetation, contribute to land and water pollution, and corrode buildings, metallic structures and vehicles, causing billions of dollars in damage annually. 35. Damage first became evident in Scandinavia in the 1960s. Several thousand lakes in Europe, particularly in southern Scandinavia 36 . and several hundreds in North America 37 have registered a steady increase in acidity levels to the point where their natural fish populations have declined or died out. The same acids enter the soil and groundwater, increasing corrosion of drinking water piping in Scandinavia. 38 36. The circumstantial evidence indicating the need for action on the sources of acid precipitation is mounting with a speed that gives scientists and governments little time to assess it scientifically. Some of the greatest observed damage has been reported in Central Europe, which is currently receiving more than one gramme of sulphur on every square metre of ground each year, at least five times greater than natural background. 39 There was little evidence of tree damage in Europe in 1970. In 1962, the Federal Republic of Germany reported visible leaf damage in its forest plot samples nationwide, amounting in 1983 to 34 per cent, and rising in 1985 to BO per cent. 40 Sweden reported light to moderate damage in 30 per cent of its forests, and various reports from other countries in Eastern and Western Europe are extremely disquieting. So far an estimated 14 per cent of all European forestland is affected. 41 37. The evidence is not all in, but many reports show soils in parts of Europe becoming acid throughout the tree rooting layers, 42 particularly nutrient-poor soils such as those of Southern Sweden 43 The precise damage mechanisms are not known, but all theories include an air pollution component. Root damage 44 and leaf damage appear to interact - affecting the ability of the trees both to take up water from the soil and to retain it in the foliage, so that they become particularly vulnerable to dry spells and other stresses. Europe may be experiencing an immense change to irreversible acidification, the remedial costs of which could be beyond economic reach. 45 (See Box 7-3.) Although there are many options for reducing sulphur, nitrogen, and hydrocarbon emissions, no single pollutant control strategy is likely to be effective in dealing with forest decline. It will require a total integrated mix of strategies and technologies to improve air quality, tailored for each region. A forest in an ecosystem that exists under certain environmental conditions, and if you change the conditions, the system is going to change. It is a very difficult task for ecologists to foresee what changes are going to be because the systems are so enormously complex. The direct causes behind an individual tree dying can be far removed from the primary pressure that brought the whole system into equilibrium. One time it might be ozone, another time it may be SO2, a third time it may be aluminium poisoning. I can express myself by an analogy: If there is famine, there are relatively few people who die directly from starvation: they die from dysentery or various infectious diseases. And in such a situation, it is not of very much help to send medicine instead of food. That means that in this situation, it is necessary to address the primary pressures against the ecosystem. Alf Johnels Swedish Museum of Natural History WCED Public Hearing Oslo, 24-25 June 1985 38. Evidence of local air pollution and acidification in Japan and also in the newly industrialized countries of Asia, Africa, and Latin America is beginning to emerge. China and the Republic of Korea seem particularly vulnerable, as do Brazil, Colombia, Ecuador, and Venezuela. So little is known about the likely environmental loading of sulphur and nitrogen in these region and about the acid-neutralizing capacity of tropical lakes and forest soils that a comprehensive programme of investigation should be formulated without delay. 46 39. Where actual or potential threats from acidification exist, governments should map sensitive areas, assess forest damage annually and soil impoverishment every five years according to regionally agreed protocols, and publish the findings. They should support transboundary monitoring of pollution being carried out by agencies in their region and, where there is no such agency, create one or give the job to any suitable regional body. Governments in many regions could gain significantly from early agreement to prevent transboundary air pollution and the enormous damage to their economic base now being experienced in Europe and North America. Even though the exact causes of the damage are hard to prove, reduction strategies are certainly within reach and economic. They could be viewed as a cheap insurance policy compared with the vast amount of potential damage these strategies avoid. Box 7-3 The Damage and Control Costs of Air Pollution It is very difficult to quantify damage control costs, not least because cost figures are highly dependent on the control strategy assumed. However, in the eastern United States, it has been estimated that halving the remaining sulphur dioxide emissions from existing sources would cost 5 billion a year, increasing present electricity rates by 2-3 per cent. If nitrogen oxides are figured in, the additional costs might be as high as 6 billion a year. Materials corrosion damage alone is estimated to cost 7 billion annually in 17 states in the eastern United states. Estimates of the annual costs of securing a 55 to 65 per cent reduction in the remaining sulphur emissions in the countries of the European Economic Community between 1980 and 2000 range from 4.6 billion to 6.7 billion (1982 dollars) per year. Controls on stationary boilers to reduce nitrogen levels by only 10 per cent annually by the year 2000 range between 100,000 and 400,000 (1982 dollars). These figures translate into a one-time increase of about 6 per cent in the price of electrical power to the consumer. Studies place damage costs due to material and fish losses alone at 3 billion a year, while damage to crops, forests, and health are estimated to exceed 10 billion per year. Technologies for drastically reducing oxides of nitrogen and hydrocarbons from automobile exhaust gases are readily available and routinely used in North America and Japan, but not in Europe. Japanese laboratory studies indicate that air pollution and acid rain can reduce some wheat and rice crop production, perhaps by as much as 30 per cent. Sources . U. S. Congress, Office of Technology Assessment, Acid Rain and Transported Air Pollutants: Implications for Public Policy (Washington, DC: U. S. Government Printing Office, 1985) U. S. Environmental Protection Agency, Acid Deposition Assessment (Washington, DC: 1985) I. M. Torrens, Acid Rain and Air Pollution: A Problem of Industrialization, prepared for WCED, 1985 P. Mandelbaum, Acid Rain - Economic Assessment (New York: Plenum Press, 1985) M. Hashimoto, National Air quality Management Policy of Japan, prepared for WCED, 1985 OECD, The State of the Environment (Paris: 1985). 40. In the years following the Second World War, the nuclear knowledge that under military control had led to the production of atomic weapons was redeployed for peaceful energy purposes by civilian technologists. Several benefits were obvious at the time. 41. It was also realized that no energy source would ever be risk-free. There was the danger of nuclear war, the spread of atomic weapons, and nuclear terrorism. But intensive international cooperation and a number of negotiated agreements suggested that these dangers could be avoided. For instance, the Nonproliferation Treaty (NPT), drafted in its final form in 1969, included a promise by signatory governments possessing nuclear weapons and expertise to pursue and undertake nuclear disarmament ad also to assist the non-nuclear signatories in developing nuclear power, but strictly for peaceful purposes only. Other problems, such as radiation risks, reactor safety, and nuclear waste disposal were all acknowledged as very important but, with the right amount of effort, containable. 42. And now, after almost four decades of immense technological effort to support nuclear development, nuclear energy has become widely used. Some 30 governments produce from nuclear generators a total of about 15 per cent of all the electricity used globally. Yet it has not met earlier expectations that it would be the key to ensuring an unlimited supply of low-cost energy. However, during this period of practical experience with building and running nuclear reactors, the nature of the costs, risks and benefits have become much more evident and as such, the subject of sharp controversy. 43. The potential for the spread of nuclear weapons is one of the most serious threats to world peace. It is in the interest of all nations to prevent proliferation of nuclear weapons. All nations therefore should contribute to the development of a viable non-proliferation regime. The nuclear weapon states must deliver on their promise to reduce the number and ultimately eliminate nuclear weapons in their arsenals and the role those weapons play in their strategies. And the non-nuclear-weapon states must cooperate in providing credible assurances that they are not moving towards a nuclear weapon capability. The health risks for the development of peaceful uses of nuclear technology, including nuclear electricity, are very small when compared with the benefits from the use of nuclear radiation for medical diagnosis treatment. The safe application of nuclear radiation technology promises many benefits in environmental clean-up and in increasing world food supplies by eliminating spoilage. With a recent and very notable exception, the international cooperation that has marked the development of nuclear power technology provides an excellent model by which to address common environmental and ethical problems posed by the development of other technologies. Ian Wilson Vice-President, Canadian Nuclear Association WCED Public Hearing Ottawa, 26-27 May 1986 44. Most schemes for non-proliferation mandate an institutional separation between military and civilian uses of nuclear energy. But for countries with full access to the complete nuclear fuel cycle, no technical separation really exists. Not all states operate the necessary clear-cut administrative separation of civilian and military access. Cooperation is needed also among suppliers and buyers of civilian nuclear facilities and materials and the International Atomic Energy Agency, in order to provide credible safeguards against the diversion of civilian reactor programmes to military purposes, especially in countries that do not open all their nuclear programmes to IAEA inspection. Thus, there still remains a danger of the proliferation of nuclear weapons. 45. The costs of construction and the relative economics of electricity generating stations - whether powered by nuclear energy, coal, oil or gas - are conditioned by the following factors throughout the service life of a plant: the cost of borrowing money to finance plant construction, the impact of inflation the duration of the period of planning, licensing, and construction the cost of fuel and maintenance the costs of protective measures, to ensure safe operation and waste disposal costs (land, air, and water pollution containment) and the costs of dismantling at the end of service life. 46. All these factors vary widely depending on differing institutional, legal, and financial arrangements in different countries. Cost generalizations and comparisons are therefore unhelpful or misleading. However, costs associated with several of these factors have increased more rapidly for nuclear stations during the last 5-10 years, so that the earlier clear cost advantage of nuclear over the service life of the plant has been reduced or lost altogether. 47 Nations should therefore look very closely at cost comparisons to obtain the best value when choosing an energy path. 47. Very strict codes of safety practice are implemented in nuclear plants so that under officially approved operating conditions, the danger from radiation to reactor personnel and especially to the general public is negligible. However, an accident occurring in a reactor may in certain very rare canes be serious enough to cause an external release of radioactive substances. Depending upon the level of exposure, people are under a certain level of risk of becoming ill from various forms of cancer or from alteration or genetic material, which may result in hereditary defects. 48. Since 1928, the International Commission on Radiological Protection (ICRP) has issued recommendations on radiation dosage levels above which exposure is unacceptable. These have been developed for occupationally exposed workers and for the general public. The Nuclear Safety Standards (NUSS) codes of IAEA were developed in 1975 to reduce safety differences among member states. Neither system is in any way binding on governments, if an accident occurs, individual governments have the responsibility of deciding at what level of radioactive contamination pasture land, drinking water, milk, meat, eggs, vegetables, and fish, are to be banned for consumption by livestock or humans. 49. Different countries - even different local government authorities within a country - have different criteria. Some have none at all, ICRP and NUSS notwithstanding. States with more rigorous standards may destroy large amounts of food or may ban food imports from a neighbour states with more permissive criteria. This causes great hardship to farmers who may not receive any compensation for their losses. It may also cause trade problems and political tension between states. Both of these difficulties occurred following the Chernobyl disaster, when the need to develop at least regionally conformable contamination criteria and compensation arrangements was overwhelmingly demonstrated. 50. Nuclear safety returned to the newspaper headlines following the Three Mile Island (Harrisburg, United States) and the Chernobyl (USSR) accidents. Probabilistic estimates of the risks of component failure, leading to a radioactive release in Western style light water reactors wore made in 1975 by the U. S. Nuclear Regulatory Commission. 48 The most serious category of release through containment failure was placed at around 1 in 1,000,000 years of reactor operation. Post-accident analysis of both Harrisburg and Chernobyl - a completely different type of reactor - have shown that in both cases, human operator error was the main cause. They occurred after about 2,000 and 4,000 reactor-years respectively. 49 The frequencies of such occurrences are well nigh impossible to estimate probabilistically. However, available analyses indicate that although the risk of a radioactive release accident is small, it is by no means negligible for reactor operations at the present time. 51. The regional health and environment effects of an accident are largely predictable from radioactive fall-out studies following early atomic weapons testing in the atmosphere and have been confirmed in practice following the Chernobyl accident. What could not be confidently predicted before Chernobyl were the local effects of such an accident. A much clearer picture is now emerging as a result of the experiences there when a reactor exploded, following a series of infringements of the official safety regulations, on 26 April 1986, causing the worst reactor accident ever experienced. As a result, the whole district had to be managed on something like a war footing and efforts resembling a large military operation were needed to contain the damage. 52. Civil nuclear energy programmes worldwide have already generated many thousands of tons of spent fuel and high-level waste. Many governments have embarked on large-scale programmes to develop ways of isolating these from the biosphere for the many hundreds of thousands of years that they will remain hazardously radioactive. 53. But the problem of nuclear waste disposal remains unsolved. Nuclear waste technology has reached an advanced level of sophistication. 50 This technology has not however been fully tested or utilized and problems remain about disposal. There is particular concern about future recourse to ocean dumping and the disposal of contaminated waste in the territories of small or poor states that lack the capacity to impose strict safeguards. There should be a clear presumption that all countries that generate nuclear waste dispose of it within their own territories or under strictly monitored agreements between states. 54. During the last 25 years, a growing awareness of the difficulties outlined above has resulted in a wide range of reactions from technical experts, the public, and governments. Many experts still feel that so much can be learned from the problems experienced up to now. They argue that if the public climate allows then to solve the nuclear waste disposal and decommissioning issues and the cost of borrowing money remains reasonably below its 1980-82 peak, in the absence of viable new supply alternatives there is no reason why nuclear energy should not emerge as a strong runner in the 1990s. At the other extreme, many experts take the view that there are so many unsolved problems and too many risks for society to continue with a nuclear future. Public reactions also vary. Some countries have exhibited little public reaction, in others there appears to be a high level of anxiety that expresses itself in anti-nuclear results in public opinion polls or large anti-nuclear campaigns. Today the assessment of practical consequences can be based on practical experience. The consequences of Chernobyl has made Soviet specialists once again pose a question: Is not the development of nuclear energy on an industrial scale premature Will it not be fatal to our civilization, to the ecosystem of our planet On our planet so rich in all sorts of energy sources, this question can be discussed quite calmly. We have a real choice in this, both on a state and a governmental level, and also on the level of individuals and professionals. We must put all our efforts to improve the technology itself, to develop and elaborate strict standards and norms of quality, of safety of a technology. We must work for the creation of anti-accident centres and centres devoting themselves to compensating for the losses to the environment. The upgrading of the industrial level of safety and the solution of the problem of the relations between man and machine would be a lot more natural thing to do than concentrating the efforts on only one element of the energy structure in the world. This would benefit the whole of humanity. V. A. Legasov Member, Academy of Sciences of the USSR WCED Public Hearing Moscow, 8 Dec 1986 55. And so, whilst some states still remain nuclear-free, today nuclear reactors supply about 15 per cent of all the electricity generated. Total electricity production worldwide is in turn equivalent to around 15 per cent of global primary energy supply. Roughly one-quarter of all countries worldwide have reactors. In 1986, there were 366 working and a further 140 planned, 51 with 10 governments possessing about 90 per cent of all installed capacity (more than 5 GW (e)). Of these, there are 8 with a total capacity of more than 9 GW (e), 52 which provided the following percentages of electric power in 1985: France, 65 Sweden, 42 Federal Republic of Germany, 31 Japan, 23 United Kingdom, 19 United States, 16 Canada, 13 and USSR, 10. According to IAEA, in 1985 there were 55 research reactors worldwide, 33 of them in developing countries. 53 56. Nevertheless, there is little doubt that the difficulties referred to above have in one way or another contributed to a scaling back of future nuclear plans - in some countries, to a de facto nuclear pause. In Western Europe and North America, which today have almost 75 per cent of current world capacity, nuclear provides about one-third of the energy that was forecast for it 10 years ago. Apart from France, Japan, the USSR, and several other East European countries that have decided to continue with their nuclear programmes, ordering, construction, and licensing prospects for new reactors in many other countries look poor. In fact, between 1972 and 1986, earlier global projections of estimated capacity for the year 2000 have been revised downwards by a factor of nearly seven. Despite this, the growth of nuclear at around 15 per cent a year over the last 20 years is still impressive. 54 57. Following Chernobyl, there were significant changes in the nuclear stance of certain governments. Several - notably China, the Federal Republic of Germany, France, Japan, Poland, United Kingdom, United States, and the USSR - have maintained or reaffirmed their pro-nuclear policy. Others with a no nuclear or a phase-out policy (Australia, Austria, Denmark, Luxembourg, New Zealand, Norway, Sweden - and Ireland with an unofficial anti-nuclear position) have been joined by Greece and the Philippines. Meanwhile, Finland, Italy, the Netherlands, Switzerland, and Yugoslavia are re-investigating nuclear safety andor the anti-nuclear arguments, or have introduced legislation tying any further growth of nuclear energy and exportimport of nuclear reactor technology to a satisfactory solution of the problem of disposal of radioactive wastes. Several countries have been concerned enough to conduct referenda to test public opinion regarding nuclear power. 58. These national reactions indicate that as they continue to review and update all the available evidence, governments tend to take up three possible positions: remain non-nuclear and develop other sources of energy: regard their present nuclear power capacity as necessary during a finite period of transition, to safer alternative energy sources or adopt and develop nuclear energy with the conviction that the associated problems and risks can and must, be solved with a level of safety that is both nationally and internationally acceptable. The discussion in the Commission also reflected these tendencies, views, and positions. 59. But whichever policy is adopted, it is important that the vigorous promotion of energy-efficient practices in all energy sectors and large-scale programmes of research, development, and demonstration for the safe and environmentally benign use of all promising energy sources, especially renewables, be given the highest, priority. 60. Because of potential transboundary effects, it is essential that governments cooperate to develop internationally agreed codes of practice covering technical, economic, social (including health and environment aspects), and political components of nuclear energy. In particular, international agreement must be reached on the following specific items: full governmental ratification of the conventions on Early Notification of a Nuclear Accident (including the development of an appropriate surveillance and monitoring system) and on Assistance in the Case of a Nuclear Accident or Radiological Emergency as recently developed by IAEA emergency response training - for accident containment and for decontamination and long-term clean-up of affected sites, personnel, and ecosystems the transboundary movement of all radioactive materials - including fuels, spent fuels, and other wastes by land, sea, or air a code of practice on liability and compensation standards for operator training and international licensing codes of practice for reactor operation, including minimum safety standards the reporting of routine and accidental discharges from nuclear installations effective, internationally harmonized minimum radiological protection standards agreed site selection criteria as well as consultation and notification prior to the siting of all major civil nuclear - related installations standards for waste repositories standards for the decontamination and dismantling of time-expired nuclear reactors and problems posed by the development of nuclear powered shipping. 61. For many reasons, especially including the failure of the nuclear weapons states to agree on disarmament, the Nonproliferation Treaty has not proved to be a sufficient instrument to prevent the proliferation of nuclear weapons, which still remains a serious danger to world peace. We therefore recommend in the strongest terms the construction of an effective international regime covering all dimensions of the problem. Both nuclear weapons states and non nuclear weapons states, should undertake to accept safeguards in accordance with the statutes of IAEA. 62. Additionally, an international regulatory function is required, including inspection of reactors internationally. This should be quite separate from the role of IAEA in promoting nuclear energy. 63. The generation of nuclear power is only justifiable if there are solid solutions to the presently unsolved problems to which it gives rise. The highest priority must be accorded to research and development on environmentally sound and economically viable alternatives, as well as on means of increasing the safety of nuclear energy. 64. Seventy per cent of the people in developing countries use wood and, depending on availability, burn anywhere between an absolute minimum of about 350 kilogrammes to 2,900 kilogrammes of dry wood annually, with the average being around 700 kilogrammes per person. 55 Rural woodfuel supplies appear to be steadily collapsing in many developing countries, especially in Sub-Saharan Africa. 56 At the same time, the rapid growth of agriculture, the pace of migration to cities, and the growing numbers of people entering the money economy are placing unprecedented pressures on the biomass base 57 and increasing the demand for commercial fuels: from wood and charcoal to kerosene, liquid propane, gas, and electricity. To cope with this, many developing country governments have no option but to immediately organize their agriculture to produce large quantities of wood and other plant fuels. 65. Wood is being collected faster than it can regrow in many developing countries that still rely predominantly on biomass wood, charcoal, dung, and crop residues - for cooking, for heating their dwellings, and even for lighting. FAO estimates suggest that in 1900, around 1.3 billion people lived in wood-deficit areas. 58 If this population-driven overharvesting continues at present rates, by the year 2000 some 2.4 billion people may be living in areas where wood is acutely scarce or has to be obtained elsewhere. These figures reveal great human hardship. Precise data on supplies are unavailable because much of the wood is not commercially traded but collected by the users, principally women and children, but there is no doubt that millions are hard put to find substitute fuels, and their numbers are growing. 66. The fuelwood crisis and deforestation - although related are not the same problems. Wood fuels destined for urban and industrial consumers do tend to come from forests. But only a small proportion of that used by the rural poor comes from forests. Even in these cases, villagers rarely chop down trees most collect dead branches or cut them from trees. 59 67. When fuelwood is in short supply, people normally economize when it is no longer available, rural people are forced to burn such fuels as cow dung, crop stems and husks, and weeds. Often this does no harm, since waste products such as cotton stalks are used. But the burning of dung and certain crop residues may in some cases rob the soil of needed nutrients. Eventually extreme fuel shortages can reduce the number of cooked meals and shorten the cooking time, which increases malnourishment. 68. Many urban people rely on wood, and most of this is purchased. Recently, as the price of wood fuels has been rising, poor families have been obliged to spend increasing proportions of their income on wood. In Addis Ababa and Maputo, families may spend a third to half of their incomes this way. 60 Much work has been done over the past 10 years to develop fuel-efficient stoves, and some of these new models use 30-50 per cent less fuel. These, as well as aluminium cooking pots and pressure cookers that also use much less fuel, should be made more widely available in urban areas. Fuelwood and charcoal are, and will remain, the major sources of energy for the great majority of rural people in developing countries. The removal of trees in both semiarid and humid land in African countries is a result to a large extent of increasing 73. Renewable energy sources could in theory provide 10-13TW annually - equal to current global energy consumption. 63 Today they provide about 2TW annually, about 21 per cent of the energy consumed worldwide, of which 15 per cent is biomass and 6 per cent hydropower. However, most of the biomass is in the form of fuelwood and agricultural and animal wastes. As noted above, fuelwood can no longer be thought of as a renewable resource in many areas, because consumption rater have overtaken sustainable yields. 74. Although worldwide reliance on all these sources has been growing by more than 10 per cent a year since the late 1970s, it will be some time before they make up a substantial portion of the worlds energy budget. Renewable energy systems are still in a relatively primitive stage of development. But they offer the world potentially huge primary energy sources, sustainable in perpetuity and available in one form or another to every nation on Earth. But it, will require a substantial and sustained commitment to further research and development if their potential is to be realized. 75. Wood as a renewable energy source is usually thought of as naturally occurring trees and shrubs harvested for local domestic use. Wood, however, is becoming an important feedstock, specially grown for advanced energy conversion processes in developing as well as industrial countries for the product ion of process heat, electricity, and potentially for other fuels, such as combustible gases and liquids. 76. Hydropower, second to wood among the renewables, has been expanding at nearly 4 per cent annually. Although hundreds of thousands of megawatts of hydropower have been harnessed throughout the world, the remaining potential is huge. 64 In neighbouring developing countries, interstate cooperation in hydropower development could revolutionize supply potential especially in Africa. In the choice of resources to be utilized we should not stare at renewable resources of energy blindly, we should not blow it out of proportion, we should not promote it for the sake of the environment per se. Instead we should develop and utilize all resources available, renewable sources of energy included, as a long-term endeavour requiring a continuous and sustained effort that will not be subject to short-term economic fluctuations, in order that we, in Indonesia, will achieve a successful and orderly transition to a more diversified and balanced structure of energy supply and environmentally sound energy supply system, which is the ultimate goal of our policy. Speaker from the floor WCED Public Hearings Jakarta, 26 March 1985 77. Solar energy use is small globally, but it is beginning to assume an important place in the energy consumption patterns of some countries. Solar water and household heating is widespread in many parts of Australia, Greece, and the Middle East. A number of East European and developing countries have active solar energy programmes, and the United States and Japan support solar sales of several hundred million dollars a year. With constantly improving solar thermal and solar electric technologies, it is likely that their contribution will increase substantially. The cost of photovoltaic equipment has fallen from around 500-600 per peak watt to 5 and is approaching the 1-2 level where it can compete with conventional electricity production. 65 But even at 5 per peak watt, it still provides electricity to remote places more cheaply than building power lines. 78. Wind power has been used for centuries - mainly for pumping water. Recently its use has been growing rapidly in regions such as California and Scandinavia. In these cases the wind turbines are used to generate electricity for the local electricity grid. The costs of wind-generated electricity, which benefited initially from substantial tax incentives, have fallen dramatically in California in the last five years and may possibly be competitive with other power generated there within a decade. 66 Many countries have successful but small wind programmes, but the untapped potential is still high. 79. The fuel alcohol programme in Brazil produced about 10 billion litres of ethanol from sugar-cane in 1984 and replaced about 60 per cent of the gasoline that would have been required. 67 The cost has been estimated at 50-60 per barrel of gasoline replaced. When subsidies are removed, and a true exchange rate is used, this is competitive at 1981 oil prices. With present lower oil prices, the programme has become uneconomical. But it saves the nation hard currency, and it provides the additional benefits of rural development, employment generation, increased self-reliance, and reduced vulnerability to crises in the world oil markets. 80. The use of geothermal energy, from natural underground heat sources, has been increasing at more than 15 per cent per year in both industrial and developing countries. The experience gained during the past decades could provide the basis for a major expansion of geothermal-capacity. 68 By contrast, technologies for low-grade heat via heat pumps or from solar ponds and ocean thermal gradients are promising but still mostly at the research and development stage. 81. These energy sources are not without their health and environment risks. Although they range from rather trivial to very serious problems, public reactions to them are not necessarily in proportion to the damage sustained. For instance, some of the commonest difficulties with solar energy are, somewhat surprisingly, the injuries from roof falls during solar thermal maintenance and the nuisance of sun-glare off their glass surfaces. Or a modern wind turbine can be a significant noise nuisance to people living nearby. Yet, these apparently small problems often arouse very strong public reactions. 82. But these are still minor issues compared with the ecosystem destruction at hydropower sites or the uprooting of homesteads in the areas to be flooded, as well as the health risks from toxic gases generated by rotting submerged vegetation and soils, or from waterborne diseases such as schistosomiasis (snail fever). Hydrodams also act as an important barrier to fish migration and frequently to the movement of land animals. Perhaps the worst problem they pose is the danger of catastrophic rupture of the dam-wall and the sweeping away or flooding of human settlements downstream - about once a year somewhere in the world. This risk is small but not insignificant. 83. One of the most widespread chronic problems is the eye and lung irritation caused by woodsmoke in developing countries. When agricultural wastes are burned, pesticide residues inhaled from the dusts or smoke of the crop material can be a health problem. Modern biofuel liquids have their own special hazards. Apart from competing with food crops for good agricultural land, their production generates large quantities of organic waste effluent, which if not used as a fertilizer can cause serious water pollution. Such fuels, particularly methanol, may produce irritant or toxic combustion products. All these and many other problems, both large and small, will increase as renewable energy systems are developed. 84. Most renewable energy systems operate best at small to medium scales, ideally suited for rural and suburban applications. They are also generally labour-intensive, which should be an added benefit where there if surplus labour. They are less susceptible than fossil fuels to wild price fluctuations and foreign exchange costs. Most countries have some renewable resources, and their use can help nations move towards self-reliance. 85. The need for a steady transition to a broader and more sustainable mix of energy sources is beginning to become accepted. Renewable energy sources could contribute substantially to this, particularly with new and improved technologies, but their development will depend in the short run on the reduction or removal of certain economic and institutional constraints to their use. These are formidable in many countries. The high level of hidden subsidies for conventional fuels built into the legislative and energy programmes of most countries distorts choices against renewables in research and development, depletion allowances, tax write-offs, and direct support of consumer prices. Countries should undertake a full examination of all subsidies and other forms of support to various sources of energy and remove those that are not clearly justified. 86. Although the situation is changing rapidly in some jurisdictions, electrical utilities in most have a supply monopoly on generation that allows them to arrange pricing policies that discriminate against other, usually small, suppliers. 69 In some countries a relaxation of this control, requiring utilities to accept power generated by industry, small systems, and individuals, has created opportunities for the development of renewables. Beyond that, requiring utilities to adopt an end-use approach in planning, financing, developing, and marketing energy can open the door to a wide range of energy-saving measures as well as renewables. 87. Renewable energy sources require a much higher priority in national energy programmes. Research, development, and demonstration projects should command funding necessary to ensure their rapid development and demonstration. With a potential of 10TW or so, even if 3-4TW were realized, it would make a crucial difference to future primary supply, especially in developing countries, where the background conditions exist for the success of renewables. The technological challenges of renewables are minor compared with the challenge of creating the social and institutional frameworks that will ease these sources into energy supply systems. 88. The Commission believes that every effort should be made to develop the potential for renewable energy, which should form the foundation of the global energy structure during the 21st Century. A much more concerted effort must be mounted if this potential is to be realized. But a major programme of renewable energy development will involve large costs and high risks, particularly massive-scale solar and biomass industries. Developing countries lack the resources to finance all but a small fraction of this cost although they will be important users and possibly even exporters. Large-scale financial and technical assistance will therefore be required. 89. Given the above analysis, the Commission believes that energy efficiency should be the cutting edge of national energy policies for sustainable development. Impressive gains in energy efficiency have been made since the first oil price shock in the 1970s. During the past 13 years, many industrial countries saw the energy content of growth fall significantly as a result of increases in energy efficiency averaging 1.7 per cent annually between 1973 and 1983. 70 And this energy efficiency solution costs less, by savings made on the extra primary supplies required to run traditional equipment. 90. The cost-effectiveness of efficiency as the most environmentally benign source of energy is well established. The energy consumption per unit of output from the most efficient processes and technologies is one-third to less than one-half that of typically available equipment. 71 91. This is true of appliances for cooking, lighting and refrigeration, and space cooling and heating - needs that are growing rapidly in most countries and putting severe pressures on the available supply systems. It is also true of agricultural cultivation and irrigation systems, of the automobile, and of many industrial processes and equipment. 92. Given the large disproportion in per capita energy consumption between developed and developing countries in general, it is clear that the scope and need for energy saving is potentially much higher in industrial than in developing countries. Nonetheless, energy efficiency is important everywhere. The cement factory, automobile, or irrigation pump in a poor country is fundamentally no different from its equivalent in the rich world. In both, there is roughly the same scope for reducing the energy consumption or peak power demand of these devices without loss of output or welfare. But poor countries will gain much more from such reductions. 93. The woman who cooks in an earthen pot over an open fire uses perhaps eight times more energy than an affluent neighbour with a gas stove and aluminium pans. The poor who light their homes with a wick dipped in a jar of kerosene get one-fiftieth of the illumination of a 100-watt electric bulb, but use just as much energy. These examples illustrate the tragic paradox of poverty. For the poor, the shortage of money is a greater limitation than the shortage of energy. They are forced to use free fuels and inefficient equipment because they do not have the cash or savings to purchase energy-efficient fuels and end-use devices. Consequently, collectively they pay much more for a unit of delivered energy services. 94. In most cases, investments in improved end-use technologies save money over time through lowered energy-supply needs The costs of improving the end-use equipment is frequently much less than the cost of building more primary supply capacity. In Brazil, for example, it has been shown that for a discounted total investment of 4 billion in more efficient end-use technologies (such as more efficient refrigerators, street-lighting, or motors) it would be feasible to defer construction of 21 gigawatts of new electrical supply capacity, corresponding to a discounted capital savings for new supplies of 19 billion in the period 1986 to 2000. 72 We must change our attitude towards consumption goods in developed countries and we must create technological advances that will allow us to carry on economic development using less energy. We must ask ourselves can we solve the problems of underdevelopment without using or increasing the tremendous amount of energy used by these countries. The idea that developing countries use very little energy is an incorrect idea. We find that the poorest countries of all have a different problem their problem is inefficient use of energy. Medium countries such as Brazil use more efficient and modern sources of fuel. The great hope for these countries is that the future will be built not based on technologies of the past, but using advanced technology. This will allow them to leap forward in relation to countries that are already developed. Jose Goldemberg President, Companhia Energetica de Sao Paulo WCED Public Hearing Brasilia, 30 Oct 1985 95. There are many examples of successful energy efficiency programmes in industrial countries. The many methods used successfully to increase awareness include information campaigns in the media, technical press, and schools demonstrations of successful practices and technologies free energy audits energy labelling of appliances and training in energy-saving techniques. These should be quickly and widely extended. Industrialized countries account for such a large proportion of global energy consumption that even small gains in efficiency can have a substantial impact on conserving reserves and reducing the pollution load on the biosphere. It is particularly important that consumers, especially large commercial and industrial agencies, obtain professional audits of their energy use. This kind of energy book-keeping will readily identify those places in their consumption patterns where significant savings can be made. 96. Energy pricing policies play a critical role in stimulating efficiency. At present, they sometimes include subsidies and seldom reflect the real costs of producing or importing the energy, particularly when exchange rates are undervalued. Very rarely do they reflect the external damage costs to health, property, and the environment. Countries should evaluate all hidden and overt subsidies to see how far real energy costs can be passed on to the consumer. The true economic pricing of energy - with safeguards for the very poor - needs to be extended in all countries. Large numbers of countries both industrial and developing are already adopting such policies. 97. Developing countries face particular constraints in saving energy. Foreign exchange difficulties can make it hard to purchase efficient but costly energy conversion and end-use devices. Energy can often be saved cost-effectively by fine-tuning already functioning systems. 73 But governments and aid agencies may find it less attractive to fund such measures than to invest in new large-scale energy supply hardware that is perceived as a more tangible symbol of progress. 98. The manufacture, import, or sale of equipment conforming to mandatory minimal energy consumption or efficiency standards is one of the most powerful and effective tools in promoting energy efficiency and producing predictable savings. International cooperation may be required when such equipment is traded from nation to nation. Countries and appropriate regional organizations should introduce and extend increasingly strict efficiency standards for equipment and mandatory labelling of appliances. 99. Many energy efficiency measures cost nothing to implement. But where investments are needed, they are frequently a barrier to poor households and small-scale consumers, even when pay-back times are short. In these latter cases, special small loan or hire-purchase arrangements are helpful. Where investment costs are not insurmountable, there are many possible mechanisms for reducing or spreading the initial investment, such as loans with favourable repayment periods and invisible measures such as loans repaid by topping up the new, reduced energy bills to the pre-conservation levels. 100. Transport has a particularly important place in national energy and development planning. It is a major consumer of oil, accounting for 50-60 per cent of total petroleum use in most developing countries. 74 It is often a major source of local air pollution and regional acidification of the environment in industrial and developing countries. Vehicle markets will grow much more rapidly in developing countries, adding greatly to urban air pollution, which in many cities already exceeds international norms. Unless strong action is taken, air pollution could become a major factor limiting industrial development in many Third World cities. 101. In the absence of higher fuel prices, mandatory standards providing for a steady increase in fuel economy may be necessary. Either way, the potential for substantial future gains in fuel economy is enormous. If momentum can be maintained, the current average fuel consumption of approximately 10 litres per 100 kilometres in the fleet of vehicles in use in industrial countries could be cut in half by the turn of the century. 75 102. A key issue is how developing countries can rapidly improve the fuel economy of their vehicles when these are, on average, used for twice as long those as in industrial countries, cutting rates of renewal and improvement in half. Licensing and import agreements should be reviewed to ensure access to the best available fuel efficient designs and production processes. Another important fuel-saving strategy especially in the growing cities of developing countries is the organizing of carefully planned public transport systems. 103. Industry accounts for 40 60 pet cent of all energy consumed in industrial countries and 10-40 per cent in developing countries. (See Chapter 6 .) There has been significant improvement in the energy efficiency of production equipment, processes, and products. In developing countries, energy savings of as much as 20-30 per cent could be achieved by such skilful management of industrial development. 104. Agriculture worldwide is only a modest energy consumer, accounting for about 3.5 per cent of commercial energy use in the industrial countries and 4.5 per cent in developing countries as a whole. 76 A strategy to double food production in the Third World through increases in fertilizers, irrigation, and mechanization would add 140 million tons of oil equivalent to their agricultural energy use. This is only some 5 per cent of present world energy consumption and almost certainly a small part of the energy that could be saved in other sectors in the developing world through appropriate efficiency measures. 77 105. Buildings offer enormous scope for energy savings, and perhaps the most widely understood ways of increasing energy efficiency are in the home and workplace. Buildings in the tropics are now commonly designed to avoid as much direct solar heating as possible by having very narrow east - and west-facing walls, but with long sides facing north and south and protected from the overhead sun by recessed windows or wide sills. 106. An important method of heating buildings is by hot water produced during electricity production and piped around whole districts, providing both heat and hot water. This extremely efficient use of fossil fuels demands a coordination of energy supply with local physical planning, which few countries are institutionally equipped to handle. 78 Where it has been successful, there has usually been local authority involvement in or control of regional energy-services boards, such as in Scandinavia and the USSR. Given the development of these or similar institutional arrangements, the cogeneration of heat and electricity could revolutionize the energy efficiency of buildings worldwide. 107. There is general agreement that the efficiency gains achieved by some industrialized countries over the past 13 years were driven largely by higher energy prices, triggered by higher oil prices. Prior to the recent fall in oil prices, energy efficiency was growing at a rate of 2.0 per cent annually in some countries, having increased gradually year by year. 79 108. It is doubtful whether such steady improvements can be maintained and extended if energy prices are held below the level needed to encourage the design and adoption of more energy-efficient homes, industrial processes, and transportation vehicles. The level required will vary greatly within and between countries, depending on a wide range of factors. But whatever it is, it should be maintained. In volatile energy markets, the question is how. 109. Nations intervene in the market price of energy in a variety of ways. Domestic taxes (or subsidies) on electrical power rates, oil, gas and other fuels are most common. They vary greatly between and even within countries where different states, provinces, and sometimes even municipalities have the right to add their own tax. Although taxes on energy have seldom been levied to encourage the design and adoption of efficiency measures, they can have that result if they cause energy prices to rise beyond a certain level - a level that varies greatly among jurisdictions. 110. Some nations also maintain higher than market prices on energy through duties on imported electricity, fuel, and fuel products. Others have negotiated bilateral pricing arrangements with oil and gas producers in which they stabilize prices for a period of time. 111. In most countries, the price of oil eventually determines the price of alternative fuels. Extreme fluctuations in oil prices, such as the world has experienced recently, endanger programmes to encourage conservation. Many positive energy developments worldwide that made sense with oil above 25 per barrel, are harder to justify at lower prices. Investments in renewables, energy-efficient industrial processes, transport vehicles, and energy-services may be reduced. Most are needed to ease the transition to a safer and more sustainable energy future beyond this century. This goal requires a long, uninterrupted effort to succeed. 112. Given the importance of oil prices on international energy policy, the Commission recommends that new mechanisms for encouraging dialogue between consumers and producers be explored. 113. If the recent momentum behind annual gains in energy efficiency is to be maintained and extended, governments need to make it an explicit goal of their policies for energy pricing to consumers. Prices needed to encourage the adoption of energy-saving measures may be achieved by any of the above means or by other means. Although the Commission expresses no preference, conservation pricing requires that governments take a long-term view in weighing the costs and benefits of the various measures. They need to operate over extended periods, dampening wild fluctuations in the price of primary energy, which can impair progress towards energy conservation. 114. It is clear that a low energy path is the best way towards a sustainable future. But given efficient and productive uses of primary energy, this need not mean a shortage of essential energy services. Within the next 50 years, nations have the opportunity to produce the same levels of energy services with as little as half the primary supply currently consumed. This requires profound structural changes in socio-economic and institutional arrangements and is an important challenge to global society. 115. More importantly, it will buy the time needed to mount major programmes on sustainable forms of renewable energy, and so begin the transition to a safer, more sustainable energy era. The development of renewable sources will depend in part on a rational approach to energy pricing to secure a stable matrix for such progress. Both the routine practice of efficient energy use and the development of renewables will help take pressure off traditional fuels, which are most needed to enable developing countries to realize their growth potential worldwide. 116. Energy is not so much a single product as a mix of products and services, a mix upon which the welfare of individuals, the sustainable development of nations, and the life-supporting capabilities of the global ecosystem depend. In the past, this mix has been allowed to flow together haphazardly, the proportions dictated by short-term pressures on and short-term goals of governments, institutions, and companies. Energy is too important for its development to continue in such a random manner. A safe, environmentally sound, and economically viable energy pathway that will sustain human progress into the distant future is clearly imperative. It is also possible. 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