Marketplace: News Archives

Thursday, December 7, 2000

Cuba, MO, Features Index

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It's December 7. I'm David Brancaccio, and we're in Cuba, Missouri, this week, looking for evidence that the so-called global economy really resonates in Middle America. Our search continues, after a look at today's top stories with Sara Gardner in Los Angeles…

A ferrari engine in a dump truck body. That's how President Clinton today described the U.S. air traffic control system. He's pushing for reforms that he hopes will reduce flight congestion and delays. Marketplace's Michelle Brier reports….

Brier: "The FAA's new air traffic control organization is not privatization as some airline industry officials wanted, but President Clinton says it will make the US air traffic control system operate more like a business…"

Clinton: "The fact is the FAA's 20 year effort to modernize air traffic control is simply not able to keep pace with either emerging technology or the growth and demand for air travel."

Brier: "With 93,000 daily flights, or more than one plane every second, delays are up 58 percent in the last five years. Cancellations are up 68 percent. The President says the system needs a desperate overhaul. But some experts doubt that the so-called corporatization plan will work. Jay Franke, at the transportation center of Northwestern University, says There are two major obstacles..."

Franke: "Personnel and procurement. The FAA has to be able to govern and manage its personnel in such a way to achieve efficencies like a corporation…and that's difficult under the civil service system. Secondly, they have to be able to buy equipment, air traffic control equipment, that is not out of date before they get it into the system."

Brier: "President Clinton wants airlines to pay a fee to fund the new organization. The air transportation association, representing major US carriers, has no comment. In New York, I'm Michelle Brier for Marketplace."

Dimsdale: "There are essentially a half-dozen issues still separating President Clinton and Republican leaders in Congress, including the size and type of tax cuts, the level of education spending, whether to raise the minimum wage, and reimbursing Medicare providers. Negotiations over the past months have narrowed the differences, but some conservatives, notably third-ranking republican in the house leadership, Tom deLay of Texas, say it's time to throw in the towel and wait until next year. Then, deLay argues, with a Republican in the White House and Republican majorities in the House and Senate, the GOP agenda will have smooth sailing. But the lame duck Democrat in the White House still has the power to refuse any more temporary spending extensions, which have kept parts of the government operating. If neither side budges on the sticking points, some deparments and agencies would have to shut down. But Senate Majority Leader Trent Lott told senators today that he thinks this can be avoided:"

Lott: "We're working in a bipartisan way, bicamerally, and with the administration...we hope to finish the business for the year and for this Congress before the end of next week. It'll take a lot of hard work, but we'll making some progress in that direction."

Dimsdale: "Of course, Senator Lott said the same thing at the end of last week. In Washington, I'm John Dimsdale for Marketplace."