40 OPINION Page 4 Friday, March 29, 1985 The Michigan Daily WARM makes good sense * Edited and managed by students at The University of Michigan Vol. XCV, No. 141 420 Maynard St. Ann Arbor, MI 48109 Editorials represent a majority opinion of the Daily's Editorial Board Yes on Proposal A he 20,000 Ann Arbor tenants who pay for their .own heat will be warm this winter if proposal A is voted into law on April 1. Proposal A, or WARM (Weatherization As Respon- sible Maintenance), mandates that lan- dlords who don't pay heating bills must insulate, caulk, and weatherstrip their rental units. By doing so, they help to conserve energy; low energy consum- ption leads to low utility costs for ren- ters. Landlords and others opposed to Proposal A contend that government imposed regulatory measures are already too stringent. They are con- cerned that Proposal A is only the beginning of a long line of government rules and stipulations that are costly to implement, inspect, and maintain. They further argue that landlords who want to improve their property will lose incentive to do so once they have met the basic provisions of Proposal A. So in place of WARM, adversaries favor the City's Energy Voluntary Im- provement Program, an informational approach to poor energy management, which compels landlords to study the effectiveness of their current in- sulation and to disclose heating costs to prospective tenants. Under the Volun- tary Program, landlords receive recognition for maintaining energy ef- ficient housing, or for significantly improving their property to meet low energy consumption standards. Lan- dlords feel that this incentive, of presenting prospective tenantsnwith low energy housing, is enough motivation.. Certainly, the Voluntary Program is an excellent one, but is effectiveness is is no way contingent on Proposal A. The two programs are compatible. The Energy Advisory Board, which created the Voluntary Program, realized that the low vacancy rate in Ann Arbor rentals could negate lan- dlord motivation' to improve their. properties. Proposal A is merely a first step in the long run of home improvement that the Voluntary Program advocates. Landlords who wouldn't fill the minimal requirements of Proposal A on their own will be legally obligated. Property owners who want to continue iprovement will. Energy conservation benefits may even motivate them fur- ther. Energy conservation is a serious issue: we need to use our resources responsibly without wasting them. Today, Congress requires that cars be made more energy efficient, but 15 years ago, there were no such stipulations. Government enforcement is the catalyst for responsible energy conservation. Measuring the energy effectiveness of houses costs money but greater en- vironmental costs need to be con- sidered. Proposal A provides a simple, standard, and effective effort for long range planning to reduce energy waste. Government regulation is necessary to ensure that landlords behave responsibly. Renters with reduced heating bills will benefit from weatherization inspection, just as they do from the government ordered safety inspectors who scrutinize Ann Arbor rental housing. WARM is only a small step towards improving the energy efficiency of ren- tal property in Ann Arbor, but it is a step forward. On April 1, support energy conservation, lowered heating bills, and responsible maintenance. Vote yes on Proposal A. By Larry Fox Proposal A on the Ann Arbor city election ballot April 1 will require landlords, whose tenants pay separately for heating fuel, to in- stall attic insulation, caulk cracks, and weatherstrip windows and doors by Decem- ber 1, 1985. Some landlords oppose proposal A for many spurious reasons. There is no reasonable argument against energy conservation; that being the case, what are the objections to Proposal A? A few landlords may argue that they are being asked to bear the cost of energy conservation by Proposal A, but that argument doer not bear close scrutiny. Winterizing any building increases its value and prolongs its life; ad- ditionally, the cost of winterization is going to be passed on to tenants. That does not, however, mean that a tenant's cost of housing is going to rise. The costs that are passed on to tenants will be more than offset by the savings in energy costs. Whether that savings is actually experienced by tenants is a decision that landlords will make. Landlords may also argue that tenants waste energy by leaving windows open during the winter, leaving lights on, etc., but tenants have an in- centive to conserve in that they ultimately pay for the energy used. The only real objec- tion to Proposal A is that it is mandatory. There has always been, at least since the ratification of the United States Constitution, .a balancing between the rights of private property and the rights of the individual. Regulatory housing codes across the country have grown out of the need to protect the in- dividual or have grown out of landlords'desire to protect their interests from competitors. Limits on the height of buildings in Ann Ar- Fox is a legal intern with Student Legal Services. bor, for example, means that it is more costly to build multiple dwelling housing than it would be without that regulation. The effect this has is that it prevents somebuilders fromi entering the market and reduces the available housing, thereby causing the vacancy rate in rental housing to be very low and rents high. Almost every regulation has mixed benefits. The limit on the height of buildings, in addition to benefitting established landlords, means Ann Arbor is a more picturesque and pleasant place to live. Similarly, Proposal A has mixed benefits for landlords and tenants. Tenants will have a more comfortable environment in which to pursue their studies, landlords will have in- creased value in their property and the entire community will benefit from the conservation of energy. The only remaining question is whether Proposal A, with its mandatory features, is the best method of achieving the desired results. In 1983 a much more comprehensive winterization program was proposed as a charter amendment. Approximately a month before the election, the Mayor's Energy Ad- visory Board proposed, ostensibly because the '83 proposal was a charter amendment, that the charter amendment proposal be passed as an ordinance by the Council with insignificant modifications. The '83 proposal was defeated at the polls. After the defeat of the proposal all movement toward passing it as an ordinance ceased. In fact, although there were many meetings in the intervening two years, the Energy Advisory Board did not announce any program until the petition drive to put the current proposal on the ballot began. Will the Mayor's Energy-VIP program achieve energy conservation? The Energy- VIP proposed program includes public education on the benefits of ,,conservation, methods of conservation, identifying sources of low cost funds for winterization, and a sur- vey of Ann Arbor housing. The supporters, of Proposal A also support these features of the Energy-VIP program. Where we differ is on the solely voluntary approach , to weatherization. The incentive in the Energy- * VIP program is the landlords' ability to at- tract tenants with a plaque indicating that the landlord has implemented some conservation measure or measures in the building to which the plaque is attached. The problem with this incentive is that the landlord does not need to attract tenants. Virtually every habitable rental property in Ann Arbor is occupied. The off-campus rental office at the University of Michigan estimates the vacancy rate in ren- tal housing at less than 2%. Landlords have 4 always had the freedom to winterize their property voluntarily and many have done so, because they realize that it makes good economic sense. Many others have not win- terized their property and the incentives in the Energy-VIP program is no incentive for these landlords. The question then is what is the balance, that should be made between the benefits of conservation to tenants and the community' and the rights of landlords in their private property? Proposal A makes its terms ap plicable only to landlords whose tenants pay for heating fuel separately from their rent. These landlords have no incentive what- soever to winterize their property. The balance we have made is to make the most effective low cost weatherization mandatory for lan- dlords' who have no incentive to winterize, while leaving ample room for all landlords to participate in the Energy VIP program. Wasserman AC YoU SURE IWS SA'= TO LAV 'I .WHA F YU MSAINPWC6j'TRE FUNDSANDPWE'VE TAKEN OUT INSURANCE \t'TR AWt) 1+lay VE.Lc)Ts of sXpER1ENCE MAY SAVINGS IN -rMS PBAND.? RUN UP HUGE D)EBTS Y/ou CAN'T PA? IRE FEDERL 60VE9-NM'ENT... W \ITAr\ ThT OK0 I Letters Sub-minimal wages for minimal work Executive eloquence? R ONALD REAGAN, the Great Communicator, has been doing a little bit too much communicating lately. In plain English, the President firmly placed his foot into an open mouth with the senseless remarks he made last week. While the nation looked in hope to the Geneva arms talks, Reagan seized them as a chance to unleash one of his many one-liners. He recently said, "There's good news from Geneva, Nancy. Your watch is ready." The news from Geneva so far is that the only watch which is ready is the time bomb which continues to tick towards a nuclear holocaust. More im- portantly, the President's ill-conceived humor on this topic relays a worldwide message on his commitment tonuclear disarmament. The President has not limited his "humor" to foreign affairs. Closer to home, he showed a callous disregard for struggling American farmers by shooting off at a dinner, "I think we should keep the grain and export the farmers." More than likely, th'e far- mers who worked hard to put the food on the President's plate that evening would consent to exporting him along with the grain. While commenting foolishly on these topics, Reagan somehow manages to ignore the travesties transpiring daily in South Africa. While referring to the Sandinistas as a "Communist Tyran- ny," he remains silent on the racial tyranny of apartheid in South Africa. Perhaps the President will come up with a racial joke on this topic suitable for all nightclub routines. The pressing issues of the day are not the only topics Reagan addressed last week. He also lent his wisdom to misrepresenting the past. After decidi ng against a visit to a Nazi concen- tration camp the President reasoned, "The German people have very few alive that remember even the war, and certainly none of them who were adults and participating in any way." The President himself was in his early 30s during World War II. It is downright frightening to think that our nation's highest official could have such a blatant unawareness of the past. Unfortunately, he seems to be demonstrating that very unawareness at present, as well. To the Daily: Once again The Daily has shown its lack of knowledge in the field of economics. The Daily editorial "Minimal Worth" of March 22 is completely devoid of any economic sense. The first half of the editorial bemoans the fact that a sub- minimum wage would pay teenagers less than adults and thereby say that they "do not have the inherent value to make their labor worth the standard minimum wage." The Daily, of course, does not realize that this is the whole problem. The reason why so many teenagers are unemployed, especiallygblack ones who minimum wage was supposed to help, is that they do not produce enough to warrant $3.35 an hour. Since employees can only af- ford to pay those who produce what they are getting paid, they do not hire teenagers or any un- skilled employee who cannot produce $3.35 an hour. Let us not also forget that one reason that many of the unemployed adults are so unskilled is that they could not get starting jobs as teenagers becuase of the minimum wage laws. If these people could have had starting jobs at any wage, they would begin to get the skills needed to be marketable at a higher wage. Is telling a teenager that she is not worth $3.35 an hour, but only $2.50, worse than telling her that she is not skilled enough tothave a job at all? When the government, or a union, mandatesra minimum wage it inherently mandates a minimum production level. Those who cannot produce at the inflated wage will not get hired. The tragedy is that it is those who cannot produce at $3.35 an hour who need a job the most. Is it ex- ploitation to tell someone that they will get paid at the level they produce? That sounds more like the truth to me. If workers are getting paid less than they Thomas DiLorenzo points out that "government... programs only redistribute existing jobs." Sure teenagers get employed, but the cost of these programs throw other workers out of jobs. Job programs have to be paid for somehow. The government must either raise taxes, inflate, or run a deficit. All of these have negative effects on existing in- dustries. A current employer sees his profits falling due to new taxes or higher interest rates. He has to cut back, so he lays off two or three. people. Many others in the economy do the same. The problem is that these people have low-visibility. We see the teenagers out on the job. The laid- off workers do not know each other and do not see that the, cause of their lay off was the jobs program. More importantly voters see only the created jobs and not the lost ones. This is why job programs are so politically popular. The benefits are clear, all the costs are not. The sub-minimum wage is a first step in solving some of the unemployment problem. Abolishing the minimum wage altogether should be next. For an economy to function properly people have to be paid what they produce. If we pay them less, the market will raise wages.., If we pay them more; we will get unemployment. Jobs programs cannot help. They destroy at least as many jobs a4 they create. It hurts to be told you are worth less than what an adult is, but unemployment and hunger hurt far worse. -Steve Horwitz Students should crisp by credit hours To the Daily: The editorial in the Sunday March 17, 1985 Michigan Daily ("A Kink in CRISP") regarding the advantages (and disadvantages) of the proposed registration priority options that students will have an opportunity to support leads me to believe an explanation of the credit towards program proposal is necessary. The purpose of any registration priority system is to guarantee that all students have equal op- portunity to elect courses and sections while enrolled at the University. The LSA Student Government proposal of permitting seniors and juniors to register in that sequence followed by all others addressed the problem juniors have with the present registration priority systemsbut does not address the inequity problem with class levels. The proposal to give priority to students to register according to their credits towards program permits the students with the greatest need for access to cour- ses to register first. The seniors BLOOM COUNTY with 115 credit hours towards their programs should register before seniors with 85 credits. The juniors with 84 credits (whose need for required courses is as great as the seniors with 85 credits) should register before juniors with 55 credits and so on. If the registration priority system is to be changed it should be changed to give the greatest. benefit to all students. The proposal to permit students to register by credit hours towards program will accomplish that goal. -Douglas R. Woolley March 25 Woolley is the University's associate registrar. Candidate supports rights To the Daily: I would like to correct any mistaken impressions which may have been created by your article of March 14, reporting on a can- didates' forum sponsored by the Lesbian-Gay Political Caucus. The article noted that many candidates for City Council did not attend the forum, and quoted a member of the Political Caucus who suggested that in the current climate, some politicians might be afriad to be associated with gay and lesbian organizations. I am a candidate for City Coun- cil in the Fourth Ward. I did miss the candidate forum, due to unavoidable scheduling which I sincerely regret. I would like to state for the record, however, that I fully sup- port the efforts of gay men and lesbian women to achieve full social and political rights. No one should face discrimination or harassment because of his or her personal lifestyle. Ann Arbor is one of the few cities in the nation to have an or- dinance which prohibits discrimination based on sexual preference. If elected to Council, I will support all efforts to have this law fully and adequately en- forced. -Dave DeVarti March 22 by Berke Breathed i I I Iv F 7 5 wintff*ENYIRtY I ~ m d