Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.news From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Democrats apt to bend for economic quick fix Date: Sun, 8 Nov 92 15:50:37 EST Message-ID: \SE A;NATION \HD Democrats apt to bend for economic quick fix \BY Donald Lambro \CR THE WASHINGTON TIMES President-elect Bill Clinton, who won election with one of the smallest pluralities on record, must now find a way to build a broader public mandate for the ambitious domestic changes he wants Congress to pass. He will be dealing with a Congress controlled by large Democratic majorities eager to pass a backlog of Democratic legislation, including spending and regulatory bills opposed for more than a decade by GOP administrations. The Democrats' hunger for legislative action was expressed the day after the election in a letter to Mr. Clinton from Ways and Means Chairman Dan Rostenkowski and 19 other House Democratic chairmen. They pledged their support and urged Mr. Clinton to exert "strong presidential leadership" in getting his legislative agenda enacted. "They were telling Clinton, 'We want you to lead us,' " said a ranking House Democratic official. "And they're not accustomed to being followers." Although Mr. Clinton ran as a moderate, the economic plan he proposed includes sweeping new spending and regulatory initiatives. Some Congress watchers say Mr. Clinton's agenda also will be hampered by a $300 billion budget deficit and by fears in the bond market that a deepening deficit will lead to higher interest rates that could choke off economic recovery. "I think Clinton's behavior since his election has been very cautious because he is cognizant that he was elected president by a very narrow base," said Mac Carey, a political and economic analyst. "And I know his advisers are very concerned about the bond market's reaction to his proposals." Meantime, some Democrats warn of a demand to enact programs. "I hope the Democratic Party's constituencies understand we can't do everything in 100 days," said Democratic Sen. Joseph Lieberman of Connecticut. "It's important that we make priority choices here." "He'll face a pent-up demand . . . from [the party's] constituencies of the past," said former Democratic National Chairman John White. "He must be careful to keep his eye on the ball and deal with the main theme of his candidacy, which has been and must be the economy." Yet congressional Democrats and other observers expect Mr. Clinton will get pretty much what he wants from Congress, at least in his first year. "He's going to start out with a lot of good will," said Mr. Lieberman. "The mood right now is to get something done. But, obviously, as Democrats it is unlikely we'll agree on everything. There will be some disagreements, but they won't be divisive." Actually, Mr. Lieberman may become the first lawmaker to disagree with one of Mr. Clinton's chief economic proposals: a new top tax rate of between 36 percent and 38 percent on upper-income people. He thinks a high tax rate can be a disincentive to investment. "Put me in the need-to-be-convinced category on that one," he said. Thomas Mann, congressional analyst at the Brookings Institution, believes "the odds are much higher for Clinton's success [in getting his package through Congress intact] because the Democrats are desperate to show they can successfully govern, and they will bend over backward to help that come about." That was the view being expressed in the House as well. "For most . . . this will represent an opportunity to break a four-year period with no progress on the domestic agenda," said David Dreyer, a chief aide to House Majority Leader Richard Gephardt. "So there's a lot of eagerness to enact a Clinton domestic program." "In Clinton we have an incoming president who knows what he wants to do, but also someone who knows how to use the podium to sell a program to a legislature and understands the need to bring the public along with him," Mr. Dreyer said. "It's a trade-off for many of the powerbrokers up here," said a top aide to a House chairman who did not wish to be named. "They are going to have to give up some of their personal autonomy in return for getting something done." This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM