4 OPINION Page 4 Friday, March 15, 1985 The Michigan Daily Edited and managed by students at The University of Michigan A look at enterprise zones Vol. XCV, No. 129 420 Maynard St. Ann Arbor, MI 48109 Editorials represent a majority opinion of the Daily's Editorial Board Forum without a quorum T HERE IS perhaps nothing more frustrating or insulting than holding an event in a certain group's honor, and later finding out that the guests of honor decided not to show up. The Michigan Gay Undergraduates and the Lesbian-Gay Political Caucus of Washtenaw County sponsored an open forum for Ann Arbor City Council candidates on Wednesday. The can- didates decided they had better things to do than listen to the political concer- ns of organizations representing gay people in the community, so they didn't go. In doing so, these candidates managed in one motion to alienate an important part of their possible con- stituency, and insulted the entire community.' Missing such an event could be un- derstandable. Candiates often have busy schedules, and are unable to meet every group at every event held in their honor. But when only two of the nine candidates, Democrats Lowell Peterson and James Burchell, even took the time to call and tell the organizers they could not make it, missing the forum shows very little responsibility. At it's worst, this translates to nothing more than lack of concern for- the community. The Ann Arbor homosexual community is not impor- tant enough to persons running for City Council seats to warrant spending a few hours of their valuable time listening and responding to that group's concerns. For seven of the nine candidates, gay concerns are not high enough on their priority lists to even extend the courtesy of notifying the event sponsors of their absence. The organizations which sponsored the forum represent a significant per- centage of the community and have legitimate concerns for prospective candidates to address. Further, a forum of this type is perhaps the best way for the community to become aware of the positions and ideologies of individual candidates. Ann Arbor should be a community in which all groups are accepted and comfortable. It should be the respon- sibility of those who wish to lead the community to provide that environ- ment, not to discourage-or ignore-it. This years candidates for city coun- cil have severely neglected that responsibility. By Jon Gauthier Third in a series America's cities and rural areas have long been the recipients of federal funds for programs designed to reduce unemployment and promote economic development. However, because of continued high unem- ployment, low income, property abandon- ment, and low economic growth, these programs have come under attack from liberals and conservatives alike. This general disenchantment with old programs has provided the background for a new con- cept in economic development. This "new" concept is coined, "enterprise zones." This idea of enterprise zones originated in the United Kingdom where they developed a program of tax and regulation relief for, businesses, who would locate in distressed Industrial Economic Development A Three Port Series areas. The idea seemed to work and was sup- ported by President Reagan in his 1980scam- paign. Since then, the concept of enterprise zones has been discussed in Congress as well as over half of the state legislatures. The concept of enterprise zones is based on the assumption that incentives are the missing ingredient in eradicating the problems of America's distressed areas. By giving substantial monetary incentives to businesses and employees, enterprise zones are supposed to provide the incentive for new economic growth. By targeting blighted areas, this growth is supposed to occur in the most needy areas. Proponents of enterprise zones claim that the zones promote economic growth in these Gauthier is a graduate student at the In- stitute of Public Policy Studies and is the chair, of the enterprise zone seminar that will be held during the Industrial Economic Development Conference, March 14 and 15. distressed areas. Opponents of enterprise zones claim that economic growth will not be created, but that the zones will provide the wealthy with more tax breaks and bigger loopholes. As with all- industrial policies, an un- derlying question that must be answered is whether government intervention is the ap- propriate response. It may appear that government has no business meddling with the business community, but the fact is that government intervenes in business whenever it taxes or regulates business. And, because of these taxes and regulations, certain areas become more or less attractive to business. Enterprise zones are already created in a rather ad hoc way. But does government have the ability to coordinate its present ef- forts? And, if government can coordinate economic development, will a greater num- ber of people be helped? Or will worthy recipients who are currently receiving federalcaid be cut because of the newfangled approaches? The interests groups involved with enter- prise zones include large and small cor- porations, labor unions, and community groups. The most supportive groups are the corporations and businesses that would inhabit the enterprise zones. With lower taxes and fewer regulations, their businesses become more profitable. The labor unions claim that many businesses will abuse the nw legislation and just relocate their businesses without creating new business. Most importantly, labor unions claim that of the business promoted in enterpise zones, these businesses will most likely be capital-intensive activities and not labor-intensive activities which distraught areas need. For example, a warehouse may be located in a zone with low taxes, but it would not be a large employer. The AFL-CIO Executive Council has stated that enterprise zones are "a tax cut package, and not a program to correct urban problems." The Council has also stated that "the AFL-CIO has no quarrel with the concept of targeted assistance, but we believe it should be done directly and not in a fashion which has so much more potential for inequity, waste and abuse." Community groups have been split in their positions about enterprise zones. The National Center for Neighborhood Enter- prise, an organization representing com- munity groups in favor of enterprise zones, supports enterprise zones because they are "a mechanism to revitalize inner city com- munities by stimulating local self-help economic development." NCNE claims that federal enterprise zones will "add to the nation's economy, not relocate it." Components of Enterprise Zone Legislation: 1. 3-5 percent extra investment credit for capital costs in personal property. 2. 10 percent extra investment credit for real property. 3. 10 percent credit to employers who raise the wage base in their zone for that year. 4. Income tax credit equal to 50 percent paid to disadvantaged zoneemployees. 5. 5 percent credit to zone employees for income earned in the zone. 6. No capital gains tax on business or property in the zone. 7. Speeded-up depreciation without restrictions that apply to other businesses. 8. Foreign trade zones where merchandise could be received duty-free, and zones could qualify for limited federal regulatory relief. 9. Requirements for local governments to lessen regulations or provide improvements to the enter- prise zone area. { 4 { Other community groups such as the New York Urban Coalition have refuted'the claim that enterprise zones are a cure-all to urban social problems. To them, "a purely- economic response" cannot solve the deep- rooted social problems that exist. The NYUC claims that marketplace forces are not able to break the cycles of generations of poverty in the inner cities. Politically, the enterprise zone concept is important because it has the support of the Reagan Administration. Often, the plights of people can be ignored because of inconclusive debate. As such, the enterprise zone debate may result in inactivity. The plight of America's inner cities is a real one, and should not be slighted because of the in- decision in the political arena. Athletic inflation Wasserman N THE SPIRIT of Bo himself, the athletic department "went for the extra point" and decided to raise ticket prices for football games from $13 to $14bn Tuesday. Unfortunately, that score will show up in student, faculty, and alumni wallets rather than the Michigan stadium scoreboard. Faced with declining television revenues, the University's Board in Control of Intercollegiate Athletics agreed to the increase in order to work toward balancing the athletic depar- tment budget.The athletic department works under a budget separate from the rest of the University. The athletic department does deser- ve credit for working to keep ticket prices down, and even with the current increase Michigan is still one of the least expensive ticket prices in the Big Ten. Nevertheless, $14 seems quite a bit of money to see a college football game. Although college football has ap- nroached a level of business that almost rivals professional football, those football teams are represen- tative of the universities. It is ironic, then, that high ticket prices might exclude some parts of the University from going to watch those games. Because students are being asked to pay only $7, they are less affected by the increase than faculty 'and alumni. Considering many concerts and shows cost well over $10, that student price seems more reasonable. But it is still significant and may keep some studen- ts home on football Saturdays. The current increase in ticket prices is reasonable since the athletic depar- tment must raise enough money to boost other unprofitable athletic programs. But there does come a time when enough is enough. In the future as the Board in Control considers even greater increases, it should keep in mind that high ticket prices might well exclude some members of the Univer- sity community from a major Univer- sity activity. :4 UvKOWEE -rQGO&To PUT AN END' ToQREVENUE $AAANG Wr-CAN'T RFFORi IT 'MEN STATESE ~WE 1'AN1SURPLUSES BECAUSE \WE tMADE RUNNkN& SUPLUSES E ToUtM Vi DosNS AND RAIED -CAXS RASEDTAXE~S?! No WONDER, \/OU'RE IN T9ougLE - S a t V i Vzy i /{1 N 1 z i c' © Letters Daily should weigh both sides '4 Tathe Daily.: While I recognize the grave importance of the issues surrounding nuclear weapons, I feel it necessary to respond to the Daily's article ("Loving this planet," Daily March 12) on the recent visit to campus by Dr. Helen Caldicott. Caldicott was correct in asserting that Americans need to be more fir- mly educated about the seriousness of the arms race, however her argument and the Daily's presentation of it seemed to suggest that only one form of education is necessary. Caldicott's speech was a powerful and emotional plea to end the arms race-just that, nothing more. Most intelligent observers are well aware that billions of dollars are spent each year by east and west to produce weapons of mass destruction. What Dr. Caldicott told her audience was nothing new, but what did she offer as a means of halting the arms race? A panicky and emotional call to protest. In other words, when confronted with the risk of nuclear confron- tation, run through the streets in protest, bury your head in the sand, and when all else fails, at- tack ITT, Williams International and the rest of the dreaded military-industrial complex, and its ever-present pursuit of capital gains. View such as Caldicott's are possessed of a perverted logic. take note, however, of the psychic-numbing in the Western democracies that permitted isolationists and pacifists alike to turn a blind eye to the rise of Hitler in the first place. Over 40 million people perished becase of that psychic-numbing. Nuclear weapons and the threat of nuclear war will not go away by simply avoiding the issue. Caldicott was correct in that respect. They will not, however, simply disappear in the face of mass protest and hysteria: we shouldn't expect them to. The threat of nuclear war can only be diminished through communication and cooperation among the superpowers. It can only come through recognizing what a long and arduous road the disarmament process is and by accepting the fact that for now, at least, nuclear weapons are here to stay. In that regard the Daily should also have reported on another presentation given on Monday by Willi gen race Cal "as issue anal ra ti clea both the are of issue liam Odom, a retired army eral whose views on the arms are diametrically opposed to dicott's but nonetheless, just relevant. Education on the e of the arms race requires { lysis of all its facets in a onal manner. Certainly rheadedness is necessary for h those whose fingers are on nuclear trigger and those who at the other end of the barrel. -Daniel Gentges March 12! I Johnson report doesn't fulfill promises AL r r To the Daily: On Wednesday we gave Vice President Henry Johnson our response to the February 27 draft of "The Proposal Responding to Safety Concerns and Sexual Assault Issues at the University of Michigan, "issued by the Sub- committee on Student Relations of the Sexual Harrassment Task Force and the Campus Safety Committee. This first draft is a potential positive step from the Administration toward a com- prehensive program addressing the problem of sexual violence toward women. However, it does not yet fulfill BLO)M COUNTY all the promises that Vice President Johnson made to us on January 21, 1985, nor does it adequately develop a program that will increase the safety of women, and contribute to the cessation of sexual assault on campus. The future drafts of the report must be more specific and circumspect. It is our intention to work with the Safety Committee, the Subcommittee on Student Relations, and the Office of Student Services to issue a more comprehensive proposal. Unfortunately, student par- ticipation on the proposal has been inadequate. We assure that this has been an oversight on the part of the two committees, rather than deliberate action. Wei have brought this matter to the attention of the committees and Johnson's office and ho than this situation wild be rectified. We look forward to working closely with the Administration to im- prove campus life and insure the safety of women. - Jennifer Faigel Anne Ryan Leon Winkelman March 12 Faigel is editor of MSA. News, Ryan is chair of MSA 's Women's committee, and Winkelman is on MSA's Women's Committee. by Derke Breathed r.. _,.._....,..,.. I MOV 7W 5W 6 PW 10 A~i~iW1MGM £8.q V K fJThV 6Wfl 7 s s Ii