Lawrence Reed at ERC

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#0000BF" TEXT="#F7F7FF" bgproperties="fixed" background="044005a0exvipq.gif"> <div> <FONT SIZE="1" COLOR="#FFCC33" FACE="Copperplate Gothic Bold" ><A HREF="index.htm" TARGET="_top" TITLE="Eastside Republican Club"><U><B>Home</B></U></A><B>  </B><B> </B></FONT><B>  | </B><B> </B><B> </B><B>  </B><FONT SIZE="5" COLOR="#FFFFFF" FACE="Copperplate Gothic Bold" ><B>Eastside Republican Club</B></FONT></div> <bR> <div> <A HREF="erc_meeting_dates.htm" TARGET="_top" TITLE="Events"><U><B>Events</B></U></A><B>   |   </B><A HREF="eastside_republican_review_summary.htm" TARGET="_top" TITLE="ERC Review"><U><B>ERC Review</B></U></A><B>   |   </B><A HREF="michigan_s_13th_district.htm" TARGET="_top" TITLE="Congressional District News"><U><B>Congressional District News</B></U></A><B>   |   </B><A HREF="civic___governmental_links.htm" TARGET="_top" TITLE="Links"><U><B>Links</B></U></A><B>   |   </B><A HREF="erc_officers.htm" TARGET="_top" TITLE="About Us"><U><B>About Us</B></U></A></div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFFFFF" TEXT="#080000"> <bR> <bR> <div> <B>Lawrence Reed at ERC</B></div> <div> <A HREF="link_to_michigan_gop.htm" TARGET="_top" TITLE="Michigan Republicans"><U><B><IMG SRC="05358580.gif" border=0 width="88" height="88" ALT="Michigan GOP" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></U></A></div> <div> <A HREF="michigan_s_13th_district.htm" TARGET="_top" TITLE="Congressional District News"><U><I><B>Congressional District News</B></I></U></A></div> <div> <A HREF="erc_testimonials.htm" TARGET="_top" TITLE="What Theyre Saying About Us"><U><I><B>Read what they've said about us</B></I></U></A></div> <div> <A HREF="erc_meeting_dates.htm" TARGET="_top" TITLE="Events"><U><B><IMG SRC="81b871f0.gif" border=0 width="135" height="31" ALT=">>Events" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></U></A></div> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div>  <A NAME="top_of_page"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="1" ALIGN="bottom" WIDTH="1" HSPACE="0" VSPACE="0" ></A></div> <div> <I><U>Noted Free Market Think Tank President</U></I></div> <div> <B>Lawrence Reed of Mackinac Center</B></div> <div> <B>Calls for 'Principled Leadership' to Fix Michigan</B></div> <div> “Statesmen are a cut above politicians,” said Lawrence W. Reed, president of the Mackinac Center for Public Policy, addressing the September 18, 2007, Eastside Republican Club Forum.<IMG SRC="15b374770.jpg" border=0 width="372" height="375" ALT="Lawrence W. Reed of the Mackinac Center for Public Policy talks with ERC Secretary, Linda Solterisch after Forum" ALIGN="RIGHT" HSPACE="6" VSPACE="2"></div> <div> Reed said principled leadership is really “statesmanship,” and it differs from merely playing politics.</div> <div> He explained, “Politicians are run-of-the-mill, nothing-specials who seek office for the thrill of it, for the power and notoriety it brings.”</div> <div> The role of the Mackinac Center, Reed said, “is aimed at educating people as to which is most effective, central planners or rules of the marketplace.”</div> <div> The Mackinac Center is a research and educational institute based in Midland and was established to equip Michigan citizens and other decision-makers to better evaluate Michigan public policy options from a free market perspective. >><I>Learn more about the Mackinac Center at </I><FONT SIZE="3" COLOR="#0000FF" FACE="Arial" ><A HREF="http://www.mackinac.org/" TARGET="_top" TITLE="http://www.mackinac.org/"><U><I>Mackinac.org</I></U></A></FONT>.</div> <div> As a public service, Mackinac Center also maintains a web site, <FONT SIZE="3" COLOR="#0000FF" FACE="Arial" ><A HREF="http://www.michiganvotes.org/" TARGET="_top" TITLE="http://www.michiganvotes.org/"><U>MichiganVotes.org</U></A></FONT>, which publishes Michigan legislative information. It provides the capability to search the current session's legislation, the voting record of each legislator, and a portal to each legislators' own web site.</div> <div> Dr. Julie Corbett, ERC chairman, introduced Reed to the Forum audience at the Grosse Pointe War Memorial in Grosse Pointe Farms.</div> <div> <I><B>Principled Leadership</B></I></div> <div> Reed said, “Some politicians are better than others, but it takes something more to rise above mere politics, which is the meat grinder of principles. The best politician knows how to deftly manipulate the levers of power for personal advantage, but the statesman's allegiance is to loftier objectives.”</div> <div> Reed, quoting from his own 2002 essay on statesmanship, asked, “What qualities define a statesman?”</div> <div> Answering, Reed suggested, “He (or she) doesn't seek public office for personal gain or because it's the only job he knows how to do. In fact, like the legendary Cincinnatus of ancient Rome or George Washington in our own early history, the statesman takes time out from a life of accomplishment to serve the general welfare.”</div> <div> Further characterizing a statesman, Reed continued,</div> <div> He stands for a principled vision, not for what he thinks you'll fall for. He is well informed about the vicissitudes of human nature, the lessons of history, the role of ideas, and the economics of the marketplace.</div> <div> He is a truth-seeker, which means he is more likely to do what's right than what may be politically popular at the moment. You know where he stands because he says what he means and means what he says.</div> <div> He elevates public discussion, because he knows what he's talking about. He does not engage in class warfare or in other divisive or partisan tactics that pull people apart. He does not cynically buy votes with the money his taxes take from others.</div> <div> He may even judge his success in office as much by how many laws he repealed as by how many he passed.</div> <div> Following his definition of “statesman,” Reed asked rhetorically, “Do we need more or less of them?”</div> <div> <TABLE BORDER="0" CELLPADDING="2" CELLSPACING="1" WIDTH="256" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="VOID" RULES="NONE" ALIGN="LEFT" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 296 ><NOBR><div> <IMG SRC="15b8fa220.jpg" border=0 width="250" height="290" ALT="Reed greets audience members after September Forum" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> </NOBR></tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 277 ><NOBR><div> <IMG SRC="15b9fa0f0.jpg" border=0 width="250" height="271" ALT="Reed greets Forum attendees at Grosse Pointe War Memorial" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> </NOBR></tD> </tR> </TABLE></div> <bR> <div> <I><B>Economic Development</B></I></div> <div> As case in point Reed cited the <FONT SIZE="3" COLOR="#0000FF" FACE="Arial" ><A HREF="http://www.michigan.org/medc/" TARGET="_top" TITLE="http://www.michigan.org/medc/"><U>Michigan Economic Development Corporation</U></A></FONT> (MEDC).</div> <div> Reed contended, “The MEDC is a monumental flop that puts government in the business of picking winners and losers!”</div> <div> It would be more equitable, he said, to bring down the burdens for everyone by fixing the fundamentals. Instead, he said, there is too much “happy talk” and ribbon cutting at the expense of fundamental change with its broad based, long-term benefit.</div> <div> As for state-sponsored efforts at job creation, Reed noted that it is insignificant -- even counter productive -- in view of the natural operation of the market place with its “huge sea of natural churning.”</div> <div> Reed said the MEDC is a self-perpetuating bureaucracy, happily taking credit for every job created, and accepting no responsibility for jobs lost.</div> <div> He said businesses in Michigan historically create one-half million jobs each year, while at the same time a similar number of jobs are lost. Reed said that when these losses are greater than the number of jobs created, Michigan suffers from a contraction of the job market.</div> <div> Reed asked, “Who in Lansing knows which employers should be subsidized and which shouldn't? With no market input, it is unfair to competitors who are not subsidized.”</div> <div> He noted that while many in Lansing are at work trying to raise taxes, the MEDC operates on the theory that tax cuts are effective, but only when granted to a small number of hand picked firms, many with roots outside of Michigan.</div> <div> Despite the happy talk and ribbon cutting, Reed said Michigan's 7.5% unemployment rate is 60% above the national average, and would be much worse if the thriving national economy were not giving Michigan a boost.</div> <div> Reed observed that Michigan now ranks near the bottom, 46th in the Forbes list of best places for business, indicating that prospective new businesses are obviously looking for more than “happy talk.”</div> <div> <I><B>Seven Fundamentals</B></I></div> <div> Reed offered these seven fundamental changes necessary for Michigan economic improvement:</div> <div> 1) <U>Change the perception of Michigan</U>. “Make Michigan a right-to-work state, just like 22 other states,” he said. The percentage of Michigan workers covered by a union agreement is one-half of what it was 40 years ago.</div> <div> Reed noted, “This sends a powerful message: Fix the Michigan labor climate!”</div> <div> 2) <U>Project labor agreement changes</U>. He said this has the affect of freezing out all non-union labor from a given project. To change this, the state Legislature would need to act.</div> <div> 3) <U>Repeal prevailing wage law</U>. Reed calculates this law unnecessarily costs Michigan consumers one-quarter of a billion dollars per year.</div> <div> 4) <U>Corrections Department spending reform</U>. He proposed that some management areas of some prisons could be put up for competitive bids: food service, and other “hotel” aspects. Reed estimated Michigan taxpayers would save $200 million per year.</div> <div> 5) <U>Regulatory reform</U>. Reed said Michigan business is constrained by excessive regulation. As evidence, he noted that only five other states regulate more professions than Michigan. He concluded, “This is a major deterrent to business expansion in Michigan -- too many hoops!”</div> <div> 6) <U>Fix the schools</U>. In aggregate, Michigan businesses and institutions of higher learning report spending three-quarters of a billion dollars on remedial education, due to shortcomings in the present K-12 system. Reed sees this as a failure of the teacher education/preparation process.</div> <div> In addition, Reed called for more competitive practices in the award of food service, custodial, and transportation contracts.</div> <div> On the subject of public school teacher health care, Reed called the Michigan Education Special Services Association (MESSA) “extraordinarily expensive.” He called it a “Cadillac health program at Rolls Royce prices.” </div> <div> MESSA was established by the Michigan Education Association, the state's powerful school employees union, and is the state's largest administrator of school employee health insurance benefits.</div> <div> See the Mackinac Center article, “<FONT SIZE="3" COLOR="#0000FF" FACE="Arial" ><A HREF="http://www.mackinac.org/article.aspx?ID=5924" TARGET="_top" TITLE="http://www.mackinac.org/article.aspx?ID="><U>MESSA: Keeping School Districts From Saving Money on Health Care</U></A></FONT>.”</div> <div> 7) <U>Fix Detroit</U>. Reed cited bloated taxes, costs, and bureaucracy. He said excessive per capita taxation is a major burden compared to similar municipalities. For example, annual per capita taxes in Indianapolis are $1,200, while in Detroit taxes are three times higher.</div> <div> As a measure of economic efficiency, Reed explained that the ratio of Detroit citizens to municipal workers is 48 to 1, compared to just 203 to 1 for Indianapolis.</div> <div> All of this, Reed said, points to Michigan becoming a poor state. If trends continue, he said, per capita personal income for citizens of Alabama and Mississippi will both surpass Michigan within five years.</div> <div> He noted Michigan has not been this far below the national per capita average since the Great Depression.</div> <div> Reed said, “Right-to-work states have been job creators year after year after year.”</div> <div> Commenting on the possibility of a Michigan right-to-work ballot initiative, Reed predicted that labor unions would spend untold sums to demagogue and frighten Michigan voters. Yet he said polls indicate such a measure could pass.</div> <div> <I><B>Lawrence Reed Economics Background</B></I></div> <div> Reed holds a B.A. in economics from Grove City College and an M.A. in history from Slippery Rock State University, both in Pennsylvania. He taught economics at Midland's Northwood University from 1977 to 1984, and chaired the department of economics from 1982 to 1984. He designed the university's unique dual major in economics and business management and founded its annual, highly acclaimed "Freedom Seminar."</div> <div> In 1982, he was a candidate for the U. S. House of Representatives from Michigan's 4th district. He moved to Boise, Idaho in 1984 to direct a policy institute before returning to Michigan to head the Mackinac Center.</div> <div> Under his leadership, the Mackinac Center for Public Policy has emerged as the largest and one of the most effective of over 40 state-based "free market" think tanks in America. In 1994, he was elected to a one-year term as president of the State Policy Network, a national organization whose membership consists of those state-based groups, and has continued to serve on its board.</div> <div> In 1994, Reed delivered the commencement address to the graduating class of the Colleges of Education, Health, and Human Services and Extended Learning at Central Michigan University before an audience of 6,000. CMU conferred upon him the honorary degree of Doctor of Public Administration. In 1998, his undergraduate alma mater, Grove City College, bestowed upon him its "Distinguished Alumni Award."</div> <div> <I><B>Reed a Prolific Writer</B></I></div> <div> Over the past 20 years, he has authored more than 800 newspaper columns and articles, 200 radio commentaries, dozens of magazine and journal articles in the U. S. and abroad, as well as five books. The two most recent are <I>Lessons from the Past: The Silver Panic of 1893,</I> and <I>Private Cures for Public Ills: The Promise of Privatization,</I> both published by the Foundation for Economic Education.</div> <div> <I><B>Travels on Behalf of Free Enterprise</B></I></div> <div> Since 1978, he has delivered more than 1,000 speeches in 40 states and 15 foreign countries, including one at Peoples University in Beijing, China.</div> <div> Reed's interests in political and economic affairs have taken him as a freelance journalist to 67 countries on six continents since 1985, including five visits to Russia, five to China, four to Nicaragua, three to Poland, five to Kenya, and others to such places as Cambodia, East Germany, Mozambique, Haiti, Japan, Bolivia, Brazil, Ecuador, Honduras, Greece, Italy, Australia, Slovenia, Croatia, Peru, Chile, Argentina, Singapore, Israel, Egypt, Malaysia, Vietnam, Iceland and New Zealand.</div> <div> From firsthand experience, Reed has reported on hyperinflation in South America, voodoo in Haiti, black markets behind the Iron Curtain, reforms and repression in China and Cambodia, the recent stunning developments in Eastern Europe, and civil war inside Nicaragua and Mozambique.</div> <div> Among many foreign adventures, Reed visited the ravaged nation of Cambodia in 1989 with his late friend, Academy Award winner Dr. Haing S. Ngor; recorded an authentic native voodoo ceremony in a remote region of Haiti in 1987; traveled with the Polish anti-communist underground for which he was arrested and detained by border police in 1986; interviewed presidents and cabinet officials in half a dozen nations; spent time with the contra rebels during the Nicaraguan civil war; and lived for two weeks with the rebels of Mozambique at their bush headquarters in 1991, at the height of that country's devastating civil war.</div> <div> <I><B>Other Reed Service</B></I></div> <div> Reed was elected in 1994 to the board of trustees of the Foundation for Economic Education, Irvington, New York -- one of the oldest and most respected economics institutes in America and publisher of the journal, <I>Ideas on Liberty</I>, for which he writes a column entitled "Ideas and Consequences." In 1998, he was elected trustee chairman and reelected chairman in 1999 and 2000.</div> <div> In 1993, Michigan Gov. John Engler appointed Reed to the Headlee Amendment Blue Ribbon Commission. In 1994, he was named to a task force of the Secchia Commission on Total Quality Government, charged by Gov. Engler with streamlining state government.</div> <div> The Eastside Republican Club Forum is normally held on the third Tuesday of the month from September through June. Admission is free and the public is always welcome.</div> <DIV ALIGN="LEFT"></DIV> <div> <A HREF="#top_of_page" TITLE="Lawrence Reed at ERC"><U>back to top</U></A></div> </td> </tr></table></body>