Masonry Magazine December 1989 Page. 50
WASHINGTON WIRE
continued from page 49
kets, boosting sales. And prices of imports would rise, making these goods less competitive here.
To be sure, a lower dollar isn't the primary concern of Fed policy-makers. The focus of monetary policy is on domestic objectives, not exchange rates. But the impact of easing on the dollar's value will be welcome; it's a collateral benefit to the principal goal of keeping the economy growing nicely.
COSTS OF CASUALTY INSURANCE WILL BE GOING UP as a result of the two major catastrophes that hit the country in October-but not by any great amount. To be sure, Hurricane Hugo and the San Francisco earthquake will together cost the American underwriters an estimated $5 to $10 billion in damage claims, cutting their profits in half for the year. Naturally, the insurers will want to recover losses as fully and as quickly as they can.
But history shows that increases are put into effect only gradually over several years. And, these days, public opposition to high premium rates-as shown in California's referendum-will no doubt operate as a brake on industry action. So will competition for business among insurers.
HUD SECRETARY KEMP IS PUSHING A BROAD ARRAY of legislative proposals, taking the initiative after cleaning up the housing problems he inherited. The plans have been on hold since the HUD scandal came to light last spring. They represent Kemp's active attempt to place his imprint on housing policy. He intends to create Federally-backed enterprise zones in depressed areas. These zones would provide tax breaks to businesses willing to invest there.
Kemp would also allow low-income tenants to use vouchers for home rental. They would be given to people who live in apartments with rent ceilings mandated by the Federal government. Such ceilings expire soon; 2 million units may be lost to the poor if the lids end. Once ceilings come off, the operators of the buildings could sell them. Kemp would give tenants first-refusal rights as buildings are sold. Rent vouchers could be used as down-payments.
PARTS OF THE PRESIDENT'S CLEAN-AIR BILL ARE UNDER SIEGE in Congress. A House subcommittee has voted to weaken the White House's original plan for alternative fuels for autos; the plan called for production of one million alternative-fuel cars by 1997. This provision is viewed as critical if the nation's cities are to clear their skies of smog. However, the auto and oil companies are fiercely opposing the White House proposals, because of the far-reaching changes it would require in car engines and gas to fuel them.
The industries have had a considerable amount of success in lining up support from conservatives in Congress, who would normally be expected to back the President. Curiously, the backers of the President's blueprint are quite a few liberal Democrats and environmental groups, who usually oppose Bush.
THE LABOR DEPARTMENT HAS REVISED ITS RULES GOVERNING the extension of loans to employees from 401(k) pension plans, in response to strong protests from employers to Labor's recently promulgated rules. Initially, continued on page 56
SCAFFOLD COMPONENTS
FRAMES ACCESSORIES
TOP QUALITY EQUIPMENT FOR
THE CONSTRUCTION INDUSTRY
SCAFFOLD & SHORING EQUIP
AN AMERICAN COMPANY
BUILDING AMERICA
SINCE 1947
• Heavy-Duty/
Sturdy
MATERIAL HOISTING EQUIP.
Competitively
Priced
Heights to
300
• SERVICE
• PERFORMANCE
• DEPENDABILITY
Capacity to
5,000#
• Contractor
Tested
• Gas,
Electric, or
Diesel Drive
All Photos And Drawings Are Forus Only
50 MASONRY-NOVEMBER DECEMBER, 1989