The gamecock. (Columbia, S.C.) 1908-2006, September 27, 2000, Page 5, Image 5
'Poverty rates lowest since 1979
by Genaro C. Armas
Associated Press
WASHINGTON - The nation’s pover
ty rate dropped to 11.8 percent in 1999,
the lowest since 1979, while median
household incomes reached a record
liigh, according to new Census Bureau
data released Tuesday.
There were 32.2 million people liv
ing in poverty in 1999,2.2 million few
er dian the year before, according to the
agency’s annual report on income and
^ poverty. The overall poverty rate in 1998
was 12.7 percent.
In addition, 16.9 percent of the na
tion’s children were in poverty, also the
lowest since 1979.
Democrats and Republicans were
quick to take credit for the good news.
“This is a good day for America,”
President Clinton said, calling attention
to the poverty figures six weeks before
the election. “We have proved that we
can lift all boats in a modem, global,
information-based economy.”
Clinton spoke before about 100 staff
members of the Office of Management
and Bucjget and the Council of Economic
Advisers after the Census Bureau re
leased its report. The president called
it “another economic milestone” for the
Clinton-Gore administration.
“These exciting developments are
the direct result of the welfare refomi
law Republicans wrote and finally pushed
into law in 1996,” said Rep. Clay
Shaw, R-Fla., a member of the House
Ways and Means Committee. He said
that without welfare reform, there would
be “more children in poverty and
more adults getting a welfare check in
stead of a paycheck.”
Every racial and ethnic group expe
rienced a drop in both the number of
poor and the percent in poverty, as did
children, the elderly and people ages 25
to 44, said Census Bureau analyst Daniel
Weinbeig.
“Declines in poverty were con
centrated in metropolitan areas, partic
ularly central cities. And, on die income
side, this was the fifth consecutive year
that households experienced a real an
nual increase in income,” Wfeinbergsaid.
Accounting for inflation, the me
dian income level for die nation’s house
holds rose 2.7 percent from $39,744 in
1998 to a record-high of $40,816 last
year. The average poverty threshold for
a family of four in 1999, also account
ing for inflation, was $ 17,029; for a fam
ily of three, it was $13,290.
Except for whites, the poverty rate
for the nation’s major racial and ethnic
groups set or equaled historic lows, the
Census Bureau said:
-African-Americans, 23.6 percent.
-Hispanics, 22.8 percent.
-Asian and Pacific Islanders, 10.7
percent.
-Non-Hispanic whites, 7.7 per
cent.
Based on comparisons of two-year
averages (1998-1999 and 1997-1998),
the Census Bureau said no state showed
a significant increase in poverty rates,
while the District of Columbia and sev
en stales - Arizona, Arkansas, Califor
nia, New York, South Dakota, Utah, Vir
ginia - showed decreases in poverty rates.
Income levels for the major racial
and ethnic groups also increased:
-AfricaikAmericans, $27,910.
-Hispanics, $30,735.
-Asian and Pacific Islanders, $51,205.
-non-Hispanic whites, $44,366.
The median household income
was up in 1999 in the Midwest ($42,679)
and South ($37,422), but was statisti
cally unchanged from 1998 in the North
east ($41,984) and West ($42,720).
A
Supreme Court sends
Microsoft case down
to appeals court
by Laurie Asseo
Associated Press
WASHINGTON - The Supreme Court
on Tuesday sent the Microsoft antitrust
case to an appeals court, effectively de
6 laying efforts by the government to break
the software giant into two parts.
The decision amounted to a tactical
victory for Microsoft in the drawn-out
legal battle. It had asked the justices to
take tliat course. The Justice Department
wanted the nation’s highest court to by
pass that step and hear arguments this
winter over whether the company must
be broken up.
The court acted on an 8-1 vote, with
Justice Stephen G. Breyer dissenting.
“Speed in reaching a final decision
may help create legal certainty,” Brey
er wrote, contending the Supreme Court
should hear the case now.
Microsoft is seeking to overturn U.S.
District Judge Thomas Penfield Jackson’s
ruling that it engaged in illegally anti
competitive conduct. The judge in June
• ordered the company split in two, but he
postponed enforcement of the order dur
ing Microsoft’s appeal.
Tlie court action came as it got a jump
on next Monday’s start of the 2000-2001
term. The court granted review in a dozen
other cases.
Microsoft spokesman Jim Cullinan
said after Tuesday’s court action, “Wfe’ve
always said we’re confident that this will
be overturned on appeal, whether it was
heard by the Supreme Court or the Court
of Appeals.”
“We look forward to presenting our
aiguments to the Court of Appeals, where
we will outline a nnniher nf errors com
mined by the district court in this case,”
he said.
^ Justice Department spokeswoman
^ Gina Talamona said, “We look forward '
to presenting our case to the Court of
Appeals as expeditiously as possible.”
“This is a serious setback for the gov
ernment,” said William Kovacic, a George
Wasliington University law professor and
antitrust expert. “Their strategy was to 1
speed this case to resolution as quickly
as possible... I tliink the government gam
bled and failed. At this point, I tliink the
possibility of breakup is next to zero.” s
He said it might be a good time for the 1
government to go back to the bargaining s
table with Microsoft. s
Justice Department antitrust chief 1
^foel I. Klein has said the government al
ways remains ready to resume settlement P
talks with the company if it is willing to P
address wliat Klein called the fundamental c
issues in the case. Although Klein leaves 41
the government Friday, his top deputy, l'
A. Douglas Melamed, who worked close- "
ly with Klein on the Microsoft case, will
replace him and is not expected to alter
the government's approach to the case. J
Microsoft shires were up $3 to $64.25
in trading on the Ntisdaq Stock Market. C!
A federal law allows major ;uititrust 1
cases to skip the appeals court step and 1
move straight from a trial court to the c
Supreme Court if the justices grant di
rect review. ^t
Microsoft urged the justices not to Jl
do so, contending the case is too com- w
ajjlicatcd and that the appeals court should ^
clear out the procedural and factual un- so
derbrush first.”
The Justice Department said taking
the case through the appeals court would
delay a final ruling by at least a year. A
long appeals process “could irreparably
harm competition in a vital and rapidly
evolving sector of the national econo
my,” government lawyers contended.
The justices also declined to hear a
case against Microsoft filed by 19 states
that joined the Justice Department in su
ing the company in 1998.
Jackson ruled that Microsoft illegal
ly sought to maintain its monopoly
over the operating systems that run
personal computers. The judge also said
Microsoft unlawfully tied its Wfeb brows
er to its Windows operating system, which
runs most of the world’s personal com
puters.
“Microsoft placed an oppressive
thumb on the scale of competitive for
tune, thereby effectively guaranteeing its
continued dominance,” Jackson wrote in
April when he ruled that Microsoft vi
olated the Sherman Act. the same law
used to break up monopolies from
Standard Oil to AT&T.
He ordered Microsoft to split itself
into two companies. One would sell Win
dows and the other would sell all other
Microsoft software such as its “Word”
program and Internet browser.
The judge also ordered Microsoft
to give other developers technical infor
mation about the way Microsoft operat
ing systems interact with its software,
which would aid them in making their
own products. Also, Microsoft would no
longer control what icons are on the Win
dows operating screen when a user
buys a computer.
Microsoft Chairman Bill Gates, the
harvard University dropout who helped
mild Microsoft into one of the world’s
ichest companies, insists the Seattle
>ased company has broken no antitrust
aws.
“This is clearly the most massive
ittempt at government regulation of the
echnology industry ever,” Gates said aft
er Jackson issued the breakup order in
une.
Microsoft’s appeal called the order
radical and unwarranted" and said Jack
on made numerous errors in the case,
"he company also complained about Jack
on s contacts with reporters, saying he
lould be disqualified if the case ever re
lmed to the trial court level.
The company sought to take its ap
eal first to the U.S. Circuit Court of Ap
eals for the District of Columbia be
mse that court has reversed Jackson’s
ocisions on Microsoft-related matters
rice in the past. The Justice Department
anted to avoid the Court of Appeals for
ie same reason.
The AT&T breakup produced the on
two other appeals the Supreme
ourt has taken directly from the trial
iurt since the justices were given such
scretion in 1974. In those cases, the
ipreme Court summarily rejected chal
lges to the AT&T breakup agreement.
In a statement attached to the
preme Court’s order Tuesday, Chief
slice William H. Rehnquist said he
mid not disqualify himself from han
ng the Microsoft cases although his
i is a partner in a Boston law firm hired
Microsoft in another case.
Consumer confidence
higher than expected
by Amy Baldwin
Associated Press
NEW YORK - Consumer confi
dence rose more strongly than ex
pected in September, which could
bode well for holiday retail sales.
The New York-based Conference
Board said its Consumer Confidence
Index now stands at 141.9, up slight
ly from the revised 140.8 reported in
August but down considerably from
the record 144.7 registered in Janu
ary and May. The index came in slight
ly above the 141.5 that Will Street
analysts were expecting.
The Conference Board index,
based on a monthly survey of some
5,000 U.S. households, is closely
watched because consumer spending
accounts for about two-third’s of the
nation’s economic activity. The in
dex compares results to its base year,
1985, when it stood at 100.
The markets were lower fol
lowing the consumer confidence re
port. The Dow Jones industrial av
erage was down 123 points to 10,685
pouits, while the Nasdaq composite
index was down 12 points to 3,729
points.
“Despite higher gasoline prices
this summer and the prospect of high
er heating oil costs this winter, con
sumers remain in an upbeat mood,”
said Lynn Franco, director of the Con
ference Board’s Consumer Research
Cotter. “Nothing in this latest survey
suggests the economy will run out of
steam soon.”
Not only did consumers’ confi
dence increase, but so did their ex
pectations for the future. The index
tracked expectations for better eco
nomic conditions in the next six
months at 114.7, up slightly from
113.9 last month.
Despite the rising energy costs,
the feeling among 18.4 percent of
Americans is that the economy will
continue to improve over the next
six months. That’s up slightly from
17.2 percent in August.
“The big increase is in expecta
tions. It suggests consumers are still
optimistic about the future,” said Gary
Thayer, chief economist with A.G.
Edwards & Sons Inc. in St. Louis.
“What it shows is the increase in en
ergy prices this summer are not re
ally filtering through the whole econ
omy.”
Thayer predicted holiday retail
sales will rise slightly, particularly if
colder weather holds off.
“People’s finances are still in pret
ty good shape,” he said, however, “if
a cold snap hits early, it might affect
holiday spending.”
Charles Haywood, the National
City Bank professor of finance at the
University of Kentucky in Lexing
ton, said he was less certain holiday
spending will increase.
In fact, consumers might be
“sobering up,” and could postpone
their shopping trips, he added.
“I wouldn’t be surprised if spend
ing comes late this year. I think some
households will hold off and say, ‘Let’s
see where we are closer to Christ
mas,’ “ Haywood said.
Haywood also predicted con
sumers will bargain hunt, some
thing retailers griped about last year.
The percentage of respondents
who rated business conditions as
“good” rose more than 2 percent
age points, to 48.9 percent from 46.2
percent.
The job market also looked bet
ter. About 10.7 percent of consumers
surveyed in September said jobs were
“hard to get,” down from 11.5 per
cent last month.
Milosevic opposition ready
to declare victory in election
by Katarina
Kratovac
Associated Press
BELGRADE, Yugoslavia - Yu
goslavia’s opposition claimed Tuesday
it has enough votes to avoid a runoff
against President Slobodan Milosevic,
as election officials remained silent on
the official vote count.
The opposition accused the gov
ernment of stalling while Milosevic
tries to manipulate the results, either
to declare himself the winner or forte
a runoff vote on Oct. 8. It said the State
Election Commission lias until Wednes
day to release the results of Sunday’s
election or it would proclaim chal
lenger Vojislav Kostunica the win
ner.
The opposition’s latest Lilly, based
on 97.5 percent of the ballots, showed
Kostunica leading with 55 percent to
Milosevic’s 35 percent. Milosevic’s
party had said Monday that with 37
percent of the ballots counted, the pres
ident was ahead with 45 percent to
Kostunica’s 40 percent.
Opposition alliance spokesman
Cedomir Jovanovic insisted Tuesday
that the election commission convene,
calling its silence “unprecedented.”
He offered opposition registers and
balloting material to assist the com
mission if necessary.
Milosevic’s officials should “con
gratulate the opposition and hand over
power without fear,” Jovanovic said,
appealing to “reasonable members ...
to persuade their leadership to ac
cept the results.”
The United States and dozens of
Europe;m countries have issued stem
calls for Milosevic to recognize the
opposition tally and step down.
British Prime Minister Tony Blair,
in a speech Tuesday to a Labor Party
conference, said: “And I say to Milo
sevic. You lost. Go. Your country
and the world has suffered enough.”
By midday Tuesday, the commis
sion had not reconvened after a brief
meeting Sunday night, according to
Sinisa Nikolic, a member of the panel
from the ranks of the opposition al
liance.
“Wfe are not even dealing with pre
liminary results, and I have no idea
where and how the ballots are being
counted,” Nikolic said.
A Greek parliament member, one
of several foreign observers invited by
the Yugoslav government, also ex
pressed concern about delays in re
leasing the results. Carolos Papoulias
told an Athens radio station it was cer
tain that Milosevic’s party suffered “a
widespread defeat” in municipal elec
tions.
“It also seems that the present coali
tion retains a majority in the two par
liaments and the third tiling from what
we hear is that there may be a second
Sunday for the election of a president,”
Papoulias told Athens’ Flash radio.
The chairman of the commission,
Borivoje Vukicevic, told several dozen
foreign observers from “friendly” coun
tries - such as Russia, China and
some African nations - that had mon
itored the balloting that the commis
sion was working “efficiently and in
accordance with the law.”
“The elections were free and fair,”
Vukicevic said, as quoted by the state
Tanjug news agency. “Experience tells
us that the citizens have given their
trust to those who most deserve it, who
are most capable of leading state poli
cies of this honorable and dignified na
tion.”
Tens of thousands of people hit the
streets Monday night in-Belgrade
and elsewhere across Serbia to cele
brate what the opposition and much
of the international community has
said was a stunning victory ;uid an end
of Milosevic’s 13-year autocratic rule.
The United States has pledged to
lift sanctions against Yugoslavia - which
include blocking international bank
loans, mi oil embaigo and denying visas
to Yugoslav officials - once Milosevic
accepts defeat.
“We accept Milosevic as an in
dicted war criminal. He belongs in The
Hague. He doesn’t belong at the helm
of the Yugoslav government,” said
White House spokesman P.J. Crow
ley. “There’s no way that Milosevic
can claim a victory.”
French Foreign Minister Hubert
Vedrine, whose country currently holds
the rotating European Union presi
dency, on Tuesday urged the EU Com
mission to take tlie necessriry measures
to lift sanctions against Yugoslavia mid
pledged support for the opposition.
“Something lias happened widi this
vote that will not stop. The hour of
change has rung in Belgrade,” Vedrine
said.
Milosevic’s camp showed itself
unprepared to give in, reportedly jam
ming the last remaining independent
Belgrade radio station - student Radio
Index - during its live coverage of
the opposition celebration.
All other independent electronic
media were banned by stale authori
ties on the eve of elections last
week.
News Briefs
■ Two students
critically injured
in school shooting
NEW ORLEANS (AP) - Gunfire
erupted at a middle school Tuesday, crit
ically injuring two students, authorities
said.
The shooting took place shortly
before noon at Carter G. Woodson Mid
dle School in uptown New Orleans, said
David Bowser, a police spokesman.
Both students appeared conscious
when they were taken by ambulances to
Charity Hospital, Bowser said.
There was no immediate word on
suspects. Bowser said there had been sev
eral fights reported at the school in the
past few weeks. It was unclear whether
the shooting was related to the fights.
More than 100 parents rushed to the
school and lined up outside as officials
let small groups enter the building to get
their children.
The two students were listed in crit
ical condition, said hospital spokeswoman
Jean Patterson.
■ GOP spent mil
lions in states lean
ing Democratic
WASHINGTON (AP)- Besides giving
millions to state parties in Ohio and Michi
gan, the Republican National Commit
tee also made seven-figure transfers
last month to California and Washington
state, both of which voted Democratic
in recent presidential elections and where
close races for seats in Congress are be
ing waged this year.
Republican officials said they’re . '
not willing to concede either state to Vice
President A1 Gore, least of all Califor
nia, the nation’s most populous state with
one-fifth of the 270 electoral votes need
ed to win the White House in Novem
ber.
But the spending also came in a month
that began with Republican presidential
nominee Geoige W. Bush ahead in the
polls and GOP officials looking to force
Gore to defend Democratic strongholds
rather than allowing him to go on the of
fensive.
Polls now show a close race between
Bush and Gore.
■ Gymnast stripped
of gold after positive
drug test
SYDNEY, Australia (AP)-Andreea
Raducan, the pint-sized Romanian gym
nast whose looks and talent remind many
of Olympian Nadia Comaneci, was
stripped of her all-around gold medal
Tuesday after testing positive for a banned
drug.
The Romanian team doctor who gave
the 16-year-old Raducan the drug in two
cold medicine pills was expelled from
the games and suspended through the
2002 winter games in Salt Lake and 2004
summer games in Athens.
Raducan took Nurofen, a common
over-the-counter medicine, because she
had “a bit of a fever and flu,” said Prince
Alexandre de Merode, IOC drug chief.
But the drug contains pseudoephedrine,
which is on the IOC’s list of banned stint
uianu».
■ Protests threaten
money summit
PRAGUE, Czech Republic (AP) -
Brewing anti-globalization protests threat
en to tarnish a so-far successful money
summit where the world’s finance min
isters managed to temporarily brake Eu
rope’s sliding common currency and clip
the wings of soaring oil prices.
Worries about the euro and oil prices
topped the agenda during the three
days of policy-setting meetings that pre
ceded Tuesday’s opening of the joint an
nual meetings of the International Mon
etary Fund and the World Bank. But
conference goers were greeted with good
news Monday, when markets rallied to
their strong words about coordinated ef
forts to push oil prices lower and their
implied threat that rich nations might in
tervene again to buy more euros and keep
the currency buoyed.
Oil prices fell, but the euro held firm
after Friday’s central bank intervention
to stop its worrisome slide.