Economic Policy is Top Issue
Jerry Zandstra Addresses ERC Forum
In Campaign for GOP U.S. Senate Nomination
“We in Michigan are facing an economic crisis,” Jerry Zandstra said, leading off his analysis of issues in the August 8, 2006, race for the Republican U.S. Senate nomination.
Zandstra, campaigning for the nomination, addressed the Eastside Republican Club Forum January 17, 2006, at the Grosse Pointe War Memorial. >>Zandstra campaign web site.
”The candidates face two sets of issues: social and economic,” Zandstra said, as he began to detail his positions on both.
On the economic side he noted his experience as consultant with the Acton Institute for the past five years has given him broad insight. In that role he has helped a number of nations understand how their public policy affects their economy.
His travels giving economic advice to governments and other clients, have taken him to 25 countries. One such assignment was to assist the African nation of Kenya in the development of a constitution. Because of his expertise, he frequently was called on to offer recommendations in such policy areas as welfare and trade reform.
He explained, however, that he has taken a leave of absence from the institute so he could devote 100% of his energy to the Senate race.
Zandstra said that one indication of the type campaign he will wage is his “11th Commandment” pledge. He was the first of the Senatorial candidates to promise a clean and honest campaign, agreeing to a proposal by Ron Weiser, an Ann Arbor Republican and U.S. ambassador to the Slovak Republic. >>Pledge details.
Demonstrating his loyalty to the primary process, Zandstra has also said each of the three primary candidates should pledge now to contact his support base following the primary to ask them to support the party nominee in the General Election. >>More.
Zandstra on Social Issues
On social issues, the conservative made three points. Zandstra said that he is an advocate for, and has been endorsed by pro-life groups.
Zandstra supports responsible gun ownership and the second amendment right to bear arms. He has received an “A” endorsement from the Michigan Coalition of Responsible Gun Owners-PAC.
His third and most controversial stand, he said, is unique to this election cycle. Zandstra confidently backs the Michigan Civil Rights Initiative, a position that differentiates him from the other two candidates in the primary race. “I came out in favor of this initiative based on principle,” he said. >>More Initiative.
One effect of MCRI would be to prohibit basing the award of government contracts on race instead of the lowest bid.
“It is consistent with the 14th amendment. It is consistent with the 1964 Civil Rights Act. It is even consistent with the Michigan Constitution,” Zandstra said.
He said, “On the moral side, Martin Luther King, Jr., wanted to be judged by his character, not by color.” Zandstra said, “The symbol of fairness is the blindfolded lady holding the scales of justice.”
Based on his own study, Zandstra observed, “All over the world, the worst, most corrupt nations are those that favor one group over another group, and those nations are also the poorest nations.”
As to race-based admissions at state-supported colleges, Zandstra reported, “Just today, a woman sent me an e-mail saying she and her husband had several adopted children, and that if this initiative is defeated, some of her children would be pitted against her other children.”
More on Economic Issues
Zandstra believes the GOP can beat the incumbent, Stabenow, solely on economic issues.
He said, “We are in an economic free fall right now in Michigan--if you're about to buy vacation property or a snow mobile, wait 18 months. It's going to be a lot cheaper.”
Zandstra said he has heard workers in the Saginaw and Flint areas say, “I had no idea I could lose my pension!” He noted that pensions depend on the viability of the company. In the end, the workers suffer when a company becomes an economic failure.
He reported that business owners in Traverse City are scared because they rely on visitors from down state to fuel their tourist industry. People on the other side of the state are worried because many of them are affected by the success or failure of the auto industry.
Zandstra said, “Politicians never created a single job, unless they added to their own staff.”
He said, “People ask, `What are you doing to fix General Motors?' I tell them it's not a GM problem, but the hostile business environment. The Single Business Tax of 1.9% slays us.”
“It taxes a business whether it makes or loses money. If you're making a plant location decision, and had to choose between Indiana and Michigan, where would you put your business?” Zandstra asked.
According to Zandstra it's not only a Michigan problem. He said that on a national basis, we have also created a hostile business environment.
“It costs 22% more to build something in the U.S. compared to building the same product in any of nine countries that are our closest business competitors, he said.
Zandstra said, “Therefore, our U.S. companies have a more difficult time selling worldwide. People think it's a problem with labor or capital. That's not the case.”
He said, historically, there are two problems--the U.S. tax structure and the need for liability reform.
Zandstra asked, “Do you know how much it costs to comply with the 60,000-page tax code?”
“Every year businesses spend $300 to 500 billion just getting ready to pay taxes.” More time is spent preparing taxes than is spent building every U.S. car, truck, and major appliance in America,” he said.
With respect to tort reform, Zandstra pointed out that In February 2005, Stabenow voted against the successful tort reform bill that passed in the U.S. Senate by a vote of 72 to 26. He said he favors a federal cap on awards in class action lawsuits.
Zandstra explained that health care is another economic problem for the U.S. and Stabenow favors an expensive Federal health care program. He said, “Already, nationally, 31% of the cost of health care is administrative overhead. Five percent of the cases make up one-half of the cost -- the most costly being obesity, diabetes, and heart disease.”
He reasoned, “Costs are high because there is no personal connection between a person's going to the doctor and the true cost involved. People know only the amount of their own co-pay.” He favors giving people an incentive for making healthy lifestyle choices.
Zandstra said that some think CAFTA and NAFTA are costing the U.S. jobs. He said, “Take a look at Guatemala and Nicaragua. Most U.S. trade barriers to their products were removed in the `80's, making their goods more affordable to U.S. consumers.
As a result of CAFTA, these countries have now lowered their import duties on our products, he said. For example, their import duty on U.S. products had been 100% of the purchase price of a car. Now with the trade act, sales of General Motors products outside the U.S. are up 9 to 10%.
Zandstra Answers Questions
When asked how he stood on the war in Iraq, he said that he would have voted “Yes” to support the U.S. action presently underway. “We must stay the course,” he said.
Zandstra was asked how he plans to make himself better known to win the primary election. He told of encouraging signs, including results of a recent, independent statewide poll showing Bouchard taking 35%, Zandstra 35%, and Butler 21%.
“The opponent taking on Stabenow must be tough,” he said. His approach would be to hammer away at the issues and candidate positions without offering negative personal comments about opponents, either Republican or Democrat.
He was bullish on the prospect of defeating Stabenow on economic issues. With an unemployment rate of 6.7% and climbing, he said, “Do you know what kind of economic fear we have?”
Asked about stem cell research, Zandstra said he favors it on existing stem lines and adult stem cells. But he does oppose the destruction of new embryonic cells for research. “I've followed this closely,” he said. He noted there are two camps. One group says the best results are generated using adult cells, the other pushes to use embryonic cells.
Noting ethical implications, Zandstra said, “When we view life as a commodity, we begin to develop a cost/benefit attitude.”
On the subject of oil imports, Zandstra said he would have voted for developing petroleum reserves in ANWAR, while Stabenow voted against it. He believes the ANWAR issue is merely a symbol for radical environmentalists.
He asked, “Do you know the issue? It's more than the mating habits of moose, elk, and deer.” He said, “The real issue is our dependence on foreign sources of oil.” He noted the increased global demand for scarce resources generated by developing nations. “China's economy is growing in the double digits each year, and so is India's,” he said.
Background in Business & Economics
For the last five years, Zandstra has been director of programs at the Acton Institute, a conservative think tank on economics, public policy and ethics. His work has taken him throughout the U.S. and to international forums talking about the effect of government policies on economies, families and freedom.
His work has included training corporate leaders to think about their ethical responsibilities to society, and to emphasize the fact that business is the engine driving the economy.
In addition, for the past 12 years, Zandstra has also been a private businessman investing in Michigan real estate.
Zandstra, who lives near Grand Rapids with his wife, Mary, and three sons, holds a BA in psychology from Calvin College, a Master of Divinity and a Master of Theology from Calvin Seminary, a Doctor of Ministry in church management from Trinity Evangelical Divinity School, and is currently working toward his PhD in public administration at Western Michigan University.
The Eastside Republican Club Forum is held on the third Tuesday of the month from September through June. Admission is free and the public is always welcome.