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    T .u.o.I StIles ~ loB ~ ...",....,. JIff1IlIGm /a show it< oppmda-lion to .m~ who help rem:h its goal of l,ooo.()fX) signatures. By con/ributing )'OUTtime and energy 10 help Wake Up, Ameriaz by dtrulating petitions, your chopter cantpIIlIify for thisprogram.

    Incentive Level I - Wake Up, America Cc.1ifiude (one per chapter)Incentive Level II - 4"x 4" Marble MOIdage plus a Wake Up, America Certificate (one set per chapter)Incentive Level III- I.er-engraved Ludte plaque011wood base,plus4"x4" MaIbIeMoorage andWake Up, America CertificateIncentive Level IV-One round-trip ticket to WMhhtgton, D.C. and hotel aa:ommodations for September 13-17 for

    the 1986 Governmental Affairs Leadership Seminar and participation in the Wake Up, America presentatioo to Co~ (recipient to be detennined by chapter president)

    LevelmMust be top chapter in population divmoowith the highest sipatwe total in exa:ssciLevelDquoca.

    LisJed below are gooJs for etlCh chaJxer popuJaJion division.Goak Per OIapfer To Qua6fyPopulation Uwell LevelHDivision (Minimum# of signoJun!s)I 300 600D 350 700m 400 800IV SOO 1,000V 600 1,200VI 750 1,500VII 900 1,800vm 1,250 2,SOO

    UweI IVMust be chapter with thehighestperantageci signatures per member based 00 July 1membership. Must have achieved LevelmSIatm.

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    " I

    Davld 1Wiley, Program Manager Rennie Wark, Administrative Assistant,Volume 3 Issue 3January 1984 .Issu~&Action1984 THE UNITED STATES JAYCEES

    This edition of Issues & Action isdevoted to two issuesthat are far from "household topics". However, they have a directaffect on EVERY American in one way oranother.

    The topics - Legislative Veto andCOLAs (Automatic Cost-Of-Living Adjustments). We encourage you to re

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    Basic Data: Social Security Administration, u.s. Depl of Labor

    The COLA system has allowed SocialSecurity recipiEntsto fare much betterthan the typical worker in keeping pacewith rising prices.

    In March of 1983, Congress passed abipartisan act entitled the Social SecurityAmendments Act of 1983. The act wasdesigned to "save the faltering Social Security system." In so doing, it increased sometaxes,cut some benefitsand delayed others. Itis estimated that the new act willincrease theSocial Security system funds by $164 billionin the I980s.

    Lawmakers felt that everyone must"share the load" of restoring the Social Security's system's solvency.Therefore, the SocialSecurity Amendments Act of 1983 postponed for six months (from July, 1983, to January, 1984) payment increases scheduledunder the COLA provisions. From now on,January will be the regular adjustment date.Experts estimate that this will save 39.4billion dollars by 1989.Another change under the Social Security Amendments Act waves for one year(1983) a provision inthe law denying COLAincreases if the yearly rise in the ConsumerPrice Index (CPI) is less than 3 percentThe new Act also provides for a "failsafe" provision that is designed to protect theSocial Securitysystemagainst periods of highinflation. "For 1985 through 1988, this socalled stabilize. will go into operation ifreserves in the old-age and disability fundsever fall below 15 percent of the moneyneeded to provide payments for a year. Ifthatoccurs, the automatic rost-of-living increases(COLA) will be based on the lower of the risein the CPI or the average gain in wages."

    Many economists and Congressmen donot feelthat the Social Security AmendmentsAct went far enough in addressing the problem that exists relative to a balanced budget, asolvent Social Security and the provisionsguaranteed within a system designed withautomatic rost-of-living (COLA) features.There are several pieces of legislationcurrently pending before Congress. One ofthe more popular approaches addressing theCOLA problem is the "DANFORTHBOREN DEFICIT REDUCTION PLAN."This plan calls for a "redefinition of indexingof COLAs." This would be accomplished bya temporary change in the annual COLA adjustment to "Federal non-means tested"benefit programs. This would include socialsecurity, civil service retirement, militaryretirement, veterans compensation to name afew. During the 1985 through 1988 period,the annual COLAs for these programs wouldbe based on the factor CPI minus 3 percentrather than the CPI. After 1988*, the CPIwould be used as under current law. Thismeasure is expected to save 60.2 billiondollars through 1988.(Note: *Many experts feel that 1988 is anexcellent "target date" and, if the need warranted, could be set back by Congress.)Senator John C. Danforth, Republicanof Missouri, offered the following commentsin a speech to the U.S. Senate."Since 1960, the United States has hadone balanced budget and 22 deficits. In theseyears, we have created nearly 90 percent ofour existing debt

    Consumer Prices - 84.4%

    "... deficits are popular. It is the natuof elected officers to seek the popular coursof action. Politicians want to be re-electeFor two decades. politicians have prospereby promising higher spending without thneed to pay the price. Very few of the meand women who serve in Congress have eveseen anything but red ink budgets."We will never straighten out the ecoomy until wejettison a set ofextremely popular myths about how to control the budget ."There are a number of budgetarmyths floating around, all of which havecommon characteristic. That characteristicto pretend that the deficit is someone elsefault and that it can be reduced without ansacrifices on our part ..."But fairy tales don't solve problems. Tsolve the problem of the deficit and do swith fairness, we must do a number ounpopular things at the same time. We muhold the lineon domestic spending. We murestrain the growth rate of large and populaentitlement programs and their COLA s sucas Social Security, Medicare, Medicaid. anfederal pensions. While reconciling ourselveto a necessary rise in defense spending, wcannot give the Pentagon a blank check ...You cannot reduce the deficit if nearly onehalf of all federal outlays (the entitlemeprograms) are off limits."Editor's Note: The Danforth-Boren biwas introduced in the United States Senate aS1627 and is currently in committee. Asimilar bill was introduced into the House oRepresentatives as HR3790 by CongressmanJames R. Jones, Democrat of OklahomaChairman of the House Budget Committee

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    Iyou have '"y funhe< qoestioru; rega"ling Wake Up,rica, please contact

    e United States Jayceeske Up, America program manager

    .O. Box 7sa, Oklahoma 74121-0007

    18) 584-2481

    kit was produced through a grant from the J.M. FoundationNew Yark. New York.

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    WE BELIEVE:That faith in God gives meaning and purpose to human life;That the brotherhood of man transcends the sovereignty of nations;

    That economic justice can best be won by free men through free enterprise;That government should be of laws rather than of men;That earth's great treasure lies in human personality;And that service to humanity is the best work of life.

    L1986, The U.S. Jaycees

    A CommW1ity Development program of The U.S. Jaycee~A Leadership Training Organizarion. P.O. Box 7.Tulsa. Oklahoma 74121-0007.

    (91 R) 584-24R I