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...spending, Greenspan suggested, might come from curbing Medicare benefits to people Other high incomes. Medicare is expected to cost $79 billion in 1986. Other prime employees include pension and disability payments for federal employees ($27 billion in 1986), income support for farmers ($13.4 billion) and loans from the Export-Import Bank to foreign customers of U.S. businesses ($3.8 billion...
...Cohn's arrest last week, for conspiracy to import heroin and cocaine and for distributing both drugs, did not quite shock his friends. Cohn, 37, who wrote the magazine article on which the film Saturday Night Fever was based, led a night-crawling, drug-charged life in Manhattan. Said his lawyer, Andrew Maloney: "Mr. Cohn is no more than what too many other people are these days, an abuser of controlled substances. But he's not a trafficker." The Drug Enforcement Administration, after a five-month investigation that included hundreds of wiretapped telephone conversations, claims otherwise. Accused along...
...abstraction. Reason: governments routinely subsidize key industries to give them an advantage in international trade AFL-CIO President Lane Kirkland has made this case by proposing-in jest, but with a serious message-his Free Trade, Antiprotectionism and Antihypocrisy Act of 1983. The law would prohibit Americans from buying imports at prices that have been subsidized in any way by foreign governments or influenced by anything other than free-market forces. "For the first offense," the bill says, the perpetrator shall have his right hand severed at the wrist." This law, Kirkland implies, would quickly eliminate the U.S. import problem...
...general perception of governmental disarray. Disaffection is strongest among left-wing Socialists and some Communists. They argue that instead of meekly accepting painful austerity, the government should 1) withdraw from the European Monetary System, which links seven major European currencies; 2) correct the trade imbalance through protectionist import restrictions; and 3) concentrate on creating jobs. Jean Poperen, the party's deputy leader, last month charged that the government was losing its "popular support" and called for a return to the "class struggle" as the Socialists' central theme. Edmond Maire, leader of the Socialist-dominated Conf...
...Nobel Laureate Milton Friedman. Guided by advisers known as the "Chicago boys," Pinochet revamped economic policy, which under Allende had led to 600% inflation and riots over food shortages. He sold 400 ailing state-owned companies, ended price controls and most state subsidies, and encouraged foreign trade by slashing import tariffs from almost 100% to an average of 10%. The resulting economic boom encouraged most Chileans to overlook Pinochet's repressive campaigns against leftists, in which as many as 10,000 were killed and up to 150,000 were jailed. In 1980 Chilean voters approved...