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David Alan Stockman (born November 10, 1946) is an American politician and former businessman who served as a Republican U.S. Representative from the state of Michigan
Michigan
(1977–1981) and as the Director of the Office of Management and Budget
Office of Management and Budget
(1981–1985) under President Ronald Reagan.

Contents

1 Early life and education 2 Political career

2.1 Congress 2.2 Office of Management and Budget 2.3 Fiscal legacy

3 Business career

3.1 Collins & Aikman Corp. 3.2 Criminal and civil charges 3.3 Web site

4 Personal life 5 Quotes 6 Bibliography 7 References 8 External links

Early life and education[edit] Stockman was born in Fort Hood, Texas, the son of Allen Stockman, a fruit farmer, and Carol (née Bartz).[2] He is of German descent, and his family's surname was originally "Stockmann".[3] He was raised in a conservative family, and his maternal grandfather, William Bartz, was a Republican county treasurer for 30 years.[4][5] Stockman was educated at public schools in Stevensville, Michigan. He graduated from Lakeshore High School
Lakeshore High School
in 1964[6] and received a B.A. in History from Michigan
Michigan
State University in 1968. He was a graduate student at Harvard University, 1968–1970 studying theology. Political career[edit]

Stockman's Congressional portrait

He served as special assistant to United States
United States
Representative and 1980 U.S. presidential candidate John Anderson of Illinois, 1970–1972, and was executive director, United States
United States
House of Representatives Republican Conference, 1972–1975. Congress[edit] Stockman was elected to the United States House of Representatives
United States House of Representatives
for the 95th Congress and was reelected in two subsequent elections, serving from January 3, 1977, until his resignation January 21, 1981, to accept appointment as Director of the Office of Management and Budget for U.S. President
U.S. President
Ronald Reagan. Office of Management and Budget[edit] Stockman was one of the most controversial OMB directors ever appointed, also known as the "Father of Reaganomics." He resigned in August 1985. Committed to the doctrine of supply-side economics, he assisted in the passing of the "Reagan Budget" (the Gramm-Latta Budget), which Stockman hoped would curtail the "welfare state". He thus gained a reputation as a tough negotiator with House Speaker Tip O'Neill's Democratic-controlled House of Representatives and Majority Leader Howard Baker's Republican-controlled Senate. During this period, Stockman became well known to the public during the contentious political wrangling concerning the role of the federal government in American society. Stockman's influence within the Reagan Administration was weakened after the Atlantic Monthly
Atlantic Monthly
magazine published the infamous 18,246 word article, "The Education of David Stockman",[7] in its December 1981 issue, based on lengthy interviews Stockman gave to reporter William Greider. Stockman was quoted as referring to Reagan's tax act in these terms: "I mean, Kemp-Roth [Reagan's 1981 tax cut] was always a Trojan horse to bring down the top rate.... It's kind of hard to sell 'trickle down.' So the supply-side formula was the only way to get a tax policy that was really 'trickle down.' Supply-side is 'trickle-down' theory."[7] Of the budget process during his first year on the job, Stockman was quoted as saying, "None of us really understands what's going on with all these numbers," which was used as the subtitle of the article.[7] After "being taken to the woodshed by the president" Citation needed because of his candor with Greider, Stockman became concerned with the projected trend of increasingly large federal deficits and the rapidly expanding national debt. On 1 August 1985, he resigned from OMB and later wrote a memoir of his experience in the Reagan Administration titled The Triumph of Politics: Why the Reagan Revolution Failed in which he specifically criticized the failure of congressional Republicans to endorse a reduction of government spending to offset large tax decreases to avoid the creation of large deficits and an increasing national debt. Fiscal legacy[edit] President Jimmy Carter's last fiscal year budget ended with a $79.0 billion budget deficit (and a national debt of $907,701,000,000 [8] as of September 30, 1980), ending during the period of David Stockman's and Ronald Reagan's first year in office, on October 1, 1981.[9] The gross federal national debt had just increased to $1.0 trillion during October 1981 ($998 billion on 30 September 1981, up from $907.7 billion during the last full fiscal year of the Carter administration[8]). By 30 September 1985, four and a half years into the Reagan administration and shortly after Stockman's resignation from the OMB during August 1985, the gross federal debt was $1.8 trillion.[8] Stockman's OMB work within the administration during 1981 until August 1985 was dedicated to negotiating with the Senate and House about the next fiscal year's budget, executed later during the autumn of 1985, which resulted in the national debt becoming $2.1 trillion at fiscal year end 30 September 1986.[8] In 1981, Stockman received the Samuel S. Beard Award for Greatest Public Service by an Individual 35 Years or Under, an award given out annually by Jefferson Awards.[10] Business career[edit] After leaving government, Stockman joined the Wall St. investment bank Salomon Brothers
Salomon Brothers
and later became a partner of the New York–based private equity company, the Blackstone Group.[11]:125–127 His record was mixed at Blackstone, with some very good investments, such as American Axle, but also failures, including Haynes International and Republic Technologies.[11]:144–147 During 1999, after Blackstone CEO Stephen A. Schwarzman
Stephen A. Schwarzman
curtailed Stockman's role in managing the investments he had developed,[11]:146 Stockman resigned from Blackstone to start his own private equity fund company, Heartland Industrial Partners, L.P., based in Greenwich, Connecticut.[12] On the strength of his investment record at Blackstone, Stockman and his partners raised $1.3 billion of equity from institutional and other investors. With Stockman's guidance, Heartland used a contrarian investment strategy, buying controlling interests in companies operating in sectors of the U.S. economy that were attracting the least amount of new equity: auto parts and textiles. With the help of about $9 billion in Wall Street
Wall Street
debt financing, Heartland completed more than 20 transactions in less than 2 years to create four portfolio companies: Springs Industries, Metaldyne, Collins & Aikman, and TriMas. Several major investments performed very poorly, however. Collins & Aikman filed for bankruptcy during 2005 and when Heartland sold Metaldyne
Metaldyne
to Asahi Tec Corp. during 2006, Heartland lost most of the $340 million of equity it had invested in the business.[13] Collins & Aikman Corp.[edit] During August 2003, Stockman became CEO of Collins & Aikman Corporation, a Detroit-based manufacturer of automotive interior components. He was ousted from that job days before Collins & Aikman filed for bankruptcy under Chapter 11 on May 17, 2005. Criminal and civil charges[edit] On March 26, 2007, federal prosecutors in Manhattan
Manhattan
indicted Stockman in "a scheme... to defraud [Collins & Aikman]'s investors, banks and creditors by manipulating C&A's reported revenues and earnings." The United States
United States
Securities and Exchange Commission also brought civil charges against Stockman related to actions that he performed while CEO of Collins & Aikman.[14] Stockman suffered a personal financial loss, over $13 million, along with losses suffered by as many as 15,000 Collins & Aikman employees worldwide. Stockman said in a statement posted on his law firm's website that the company's end was the consequence of an industry decline, not due to fraud.[15] On January 9, 2009, the US Attorney's Office announced that it did not intend to prosecute Stockman for this case.[16] Web site[edit] In March 2014 Stockman launched a web based daily periodical, David Stockman's Contra Corner featuring both his own articles and those from leading contrarian thinkers on geopolitics, economics, and finance. Personal life[edit] Stockman lives in the Upper East Side
Upper East Side
of Manhattan
Manhattan
in New York City.[12] He is married to Jennifer Blei Stockman and is the father of two children, Rachel and Victoria. Jennifer Blei Stockman is a chairwoman emerita of the Republican Majority for Choice,[17] and President of the Solomon R. Guggenheim Foundation
Solomon R. Guggenheim Foundation
Board of Trustees.[18] In 2013, Stockman signed an amicus brief to the Supreme Court in favor of same-sex marriage.[19] Quotes[edit]

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"[Social Security] has to be means-tested. And Medicare needs to be means-tested [...] Let the Bush tax cuts expire. Let the capital gains go back to the same rate as ordinary income."[20] "The Republican Party has totally abdicated its job in our democracy, which is to act as the guardian of fiscal discipline and responsibility. They're on an anti-tax jihad -- one that benefits the prosperous classes."[21] "I invest in anything that Bernanke
Bernanke
can’t destroy, including gold, canned beans, bottled water and flashlight batteries."[22] "Ninety-two percent of the wealth is owned by five percent of the people." (Bloomberg TV 2013) "[T]he Republican Party was hijacked by modern imperialists during the Reagan era. As a consequence, the conservative party cannot perform its natural function as watchdog of the public purse because it is constantly seeking legislative action to provision a vast war machine of invasion and occupation." [23]

Bibliography[edit]

The Reagan Economic Plan, 1981 The Triumph of Politics: Why the Reagan Revolution Failed, Harper & Row, 1986, ISBN 9780060155605 The Great Deformation: The Corruption of Capitalism in America, PublicAffairs, 2013, ISBN 9781586489120 Trumped!: A Nation on the Brink of Ruin, and How to Bring it Back, 2016

References[edit]

^ "LOSING THE BATTLES AND WINNING THE WAR". Lexington Herald-Leader. April 7, 1985.  ^ Hunter, Marjorie (December 12, 1980). "Office of Management and Budget David Alan Stockman; Strong Support From Kemp Chosen by House Republicans Views on Economy". The New York Times.  ^ "News65". 19 June 1998.  ^ "The Tuscaloosa News - Google News Archive Search".  ^ "The Montreal Gazette - Google News Archive Search".  ^ Heibutzki, Ralph (2012-06-04). "Stockman Surprise Speaker at Lakeshore's Graduation". The Herald-Palladium. Retrieved 2012-06-04.  ^ a b c William Greider (December 1981). "The Education of David Stockman". The Atlantic Online.  ^ a b c d Treasury Department's Historical Debt Outstanding - Annual 1950 - 1999 ^ Office of Management and Budget
Office of Management and Budget
Historical Tables see Table 1.1 (Excel Spreadsheet) ^ "Jefferson Awards". Jefferson Awards.  ^ a b c David Carey & John E. Morris (2001). King of Capital: The Remarkable Rise, Fall and Rise Again of Steve Schwarzman and Blackstone. Crown.  ^ a b "Collins & Aikman seeks to emerge from bankruptcy," Bloomberg News
Bloomberg News
article by Jeff Bennett, published in the newspaper The Advocate of Stamford and (identical version, perhaps with changes by the local editor in the common business section for both newspapers) in the Greenwich Time on September 5, 2006, page A7, The Advocate ^ David Carey and Lou Whiteman, "PE firms find buyer for Metaldyne," The Deal, Sept. 1, 2006. ^ Levin, Doris (29 March 2007). "Stockman Outsmarts Self in Detroit". Bloomberg. Retrieved 19 September 2014.  ^ "Ex-Collins Chief David Stockman
David Stockman
Charged With Fraud (Update10)". Bloomberg. March 26, 2007. Retrieved 2010-08-02.  ^ "Fraud charges dropped against ex-Reagan aide David Stockman". Chicago Tribune. 10 January 2009. Retrieved 19 September 2014.  ^ About Us Archived 2008-09-21 at the Wayback Machine. Republican Majority for Choice ^ Trustees, Solomon R. Guggenheim Foundation ^ [1] ^ "Why David Stockman
David Stockman
Isn't buying it". CBS News. March 2, 2012.  ^ Dickinson, Tim (Nov 9, 2011). "How the GOP Became the Party of the Rich". Rolling Stone. Retrieved 2011-11-10.  ^ David Stockman: I Invest In Anything Bernanke
Bernanke
Can't Destroy, John Carney, CNBC, October 6, 2010 ^ Stockman, David (2013). The Great Deformation -- the corruption of capitalism in America. PublicAffairs. p. 688. ISBN 978-1586489120. 

External links[edit]

Biography at the Biographical Directory of the United States
United States
Congress Appearances on C-SPAN Four Deformations of the Apocalypse, David Stockman, The New York Times, July 31, 2010, op-ed Ronald Reagan, Ron Paul, & the Fed: Q&A with David Stockman
David Stockman
on YouTube, Reason.tv, January 2011 Fixing America’s Finances interview on On Point, May 2011 David Stockman
David Stockman
on ‘The Great Deformation’ and Our Economic Doom, Daniel Gross, The Daily Beast, April 1, 2013, interview NY Times review by Peter T. Kilborn of a 1986 biography of David Stockman "David Stockman's Contra Corner" His Personal Blog

U.S. House of Representatives

Preceded by Edward Hutchinson Member of the U.S. House of Representatives from Michigan's 4th congressional district 1977–1981 Succeeded by Mark Siljander

Political offices

Preceded by Jim McIntyre Director of the Office of Management and Budget 1981–1985 Succeeded by Jim Miller

v t e

Directors of the United States
United States
Office of Management and Budget

Dawes Lord Roop Douglas D. W. Bell Smith Webb Pace Lawton Dodge Hughes Brundage Stans D. E. Bell Gordon Schultze Zwick Mayo Shultz Weinberger Ash Lynn Lance McIntyre Stockman Miller Wright Darman Panetta Rivlin Raines Lew Daniels Bolten Portman Nussle Orszag Lew Burwell Donovan Mulvaney

v t e

Cabinet of President Ronald Reagan
Ronald Reagan
(1981–89)

Cabinet

Secretary of State

Alexander M. Haig Jr. (1981–82) George P. Shultz
George P. Shultz
(1982–89)

Secretary of the Treasury

Donald T. Regan (1981–85) James A. Baker (1985–88) Nicholas F. Brady
Nicholas F. Brady
(1988–89)

Secretary of Defense

Caspar W. Weinberger (1981–87) Frank C. Carlucci (1987–89)

Attorney General

William French Smith
William French Smith
(1981–85) Edwin Meese
Edwin Meese
(1985–88) Richard L. Thornburgh (1988–89)

Secretary of the Interior

James G. Watt
James G. Watt
(1981–83) William P. Clark (1983–85) Donald P. Hodel
Donald P. Hodel
(1985–89)

Secretary of Agriculture

John R. Block (1981–86) Richard E. Lyng (1986–89)

Secretary of Commerce

Malcolm Baldrige (1981–87) C. William Verity (1987–89)

Secretary of Labor

Raymond J. Donovan
Raymond J. Donovan
(1981–85) William E. Brock III (1985–87) Ann Dore McLaughlin (1987–89)

Secretary of Health and Human Services

Richard S. Schweiker (1981–83) Margaret M. Heckler (1983–85) Otis Bowen
Otis Bowen
(1985–89)

Secretary of Housing and Urban Development

Samuel R. Pierce (1981–89)

Secretary of Transportation

Drew Lewis (1981–83) Elizabeth H. Dole (1983–87) James H. Burnley IV
James H. Burnley IV
(1987–89)

Secretary of Energy

James B. Edwards
James B. Edwards
(1981–83) Donald P. Hodel
Donald P. Hodel
(1983–85) John S. Herrington
John S. Herrington
(1985–89)

Secretary of Education

Terrel H. Bell (1981–85) William J. Bennett (1985–88) Lauro F. Cavazos (1988–89)

Cabinet-level

Vice President

George H. W. Bush
George H. W. Bush
(1981–89)

White House Chief of Staff

James A. Baker (1981–85) Donald T. Regan (1985–87) Howard H. Baker Jr. (1987–88) Kenneth M. Duberstein (1988–89)

Director of the Office of Management and Budget

David Stockman
David Stockman
(1981–85) James C. Miller III
James C. Miller III
(1985–88) Joseph R. Wright Jr. (1988–89)

Administrator of the Environmental Protection Agency

Anne M. Gorsuch (1981–83) William D. Ruckelshaus (1983–85) Lee M. Thomas
Lee M. Thomas
(1985–89)

Director of Central Intelligence

William J. Casey
William J. Casey
(1981–87) William H. Webster
William H. Webster
(1987–89)

Ambassador to the United Nations

Jeane Kirkpatrick
Jeane Kirkpatrick
(1981–85) Vernon A. Walters
Vernon A. Walters
(1985–89)

Trade Representative

William E. Brock III (1981–85) Clayton K. Yeutter (1985–89)

Chairperson of the Council of Economic Advisers

Murray L. Weidenbaum (1981–82) Martin S. Feldstein (1982–84) Beryl W. Sprinkel (1985–89)

v t e

Members of the U.S. House of Representatives from Michigan

Territory

Woodbridge Sibley Richard Wing Biddle Wing Lyon Jones

At-large

Crary J. Howard Kelley Staebler

1st district

McClelland Buel Penniman D. Stuart W. Howard Cooper W. Howard Granger Beaman Waldron Field A. S. Williams Newberry Lord Maybury J. L. Chipman Griffin Corliss Lucking Denby Doremus Codd Clancy Sosnowski Clancy Sadowski Tenerowicz Sadowski Machrowicz Nedzi Conyers Stupak Benishek Bergman

2nd district

Lyon J. S. Chipman E. Bradley C. Stuart Sprague C. Stuart Noble Waldron Beaman Upson Stoughton Waldron Willits Eldredge Allen Gorman Spalding H. Smith Townsend Wedemeyer Beakes Bacon Beakes Michener Lehr Michener Meader Vivian Esch Pursell Hoekstra Huizenga

3rd district

Hunt Bingham J. Conger Clark Walbridge Kellogg Longyear Blair Willard McGowan Lacey O'Donnell Burrows Milnes A. Todd Gardner J. Smith Frankhauser J. Smith A. B. Williams Hooper Kimball Main Shafer Johansen P. Todd G. Brown Wolpe Henry Ehlers Amash

4th district

Stevens Peck Leach Trowbridge Kellogg Ferry Foster Burrows Potter Keightley Burrows Yaple Burrows Thomas Hamilton Ketcham Foulkes Hoffman Hutchinson Stockman Siljander Upton Camp Moolenaar

5th district

Baldwin Trowbridge O. Conger Foster W. Williams Stone Webber Houseman Comstock M. Ford Belknap M. Ford Belknap Richardson W. Smith Diekema Sweet Mapes Jonkman G. Ford Vander Veen Sawyer Henry Barcia D. E. Kildee D. T. Kildee

6th district

Driggs Strickland Sutherland Begole Durand Brewer Spaulding Winans Brewer Stout Aitken S. Smith Kelley Hudson Person Cady Blackney Transue Blackney Clardy Hayworth Chamberlain Carr Dunn Carr Upton

7th district

O. Conger Rich Carleton Whiting Snover Weeks McMorran Cramton Wolcott McIntosh O'Hara Mackie Riegle D. E. Kildee N. Smith Schwarz Walberg Schauer Walberg

8th district

N. Bradley Ellsworth Horr Tarsney Bliss Youmans Linton Brucker Fordney Vincent Hart Crawford Bentley Harvey Traxler Carr Chrysler Stabenow Rogers M. Bishop

9th district

Hubbell Cutcheon H. Wheeler Moon R. Bishop McLaughlin Harry W. Musselwhite Engel Thompson Griffin Vander Jagt D. E. Kildee Knollenberg Peters Levin

10th district

Hatch Fisher F. Wheeler Weadock Crump Aplin Loud Woodruff Loud Currie Woodruff Cederberg Albosta Schuette Camp Bonior Miller Mitchell

11th district

Breitung Moffatt Seymour Stephenson Avery Mesick Darragh Dodds Lindquist Scott Bohn P. Brown Luecke F. Bradley Potter Knox Clevenger Ruppe Davis Knollenberg McCotter Curson Bentivolio Trott

12th district

Stephenson Shelden Young MacDonald James Hook Bennett Hook Bennett O'Hara Bonior Levin J. Dingell Jr. D. Dingell

13th district

Nichols McLeod Brennan McLeod O'Brien McLeod O'Brien Coffin O'Brien Diggs Crockett Collins W. Ford Rivers Kilpatrick Clarke Conyers

14th district

Weideman Rabaut Youngblood Rabaut Ryan Nedzi Hertel Conyers Peters Lawrence

15th district

J. Dingell Sr. J. Dingell Jr. W. Ford Collins Kilpatrick J. Dingell Jr.

16th district

Lesinski Sr. Lesinski Jr. J. Dingell Jr.

17th district

Dondero Oakman Griffiths Brodhead Levin

18th district

Dondero Broomfield Huber Blanchard Broomfield

19th district

Farnum McDonald Broomfield

v t e

Private equity
Private equity
and venture capital investors

Investment strategy

Buyout Venture Growth Mezzanine Secondaries

History

History of private equity and venture capital Early history of private equity Private equity
Private equity
in the 1980s Private equity
Private equity
in the 1990s Private equity
Private equity
in the 2000s

Investor types

Private equity
Private equity
investors Venture capitalists Corporate raiders

Authority control

WorldCat Identities VIAF: 108391402 LCCN: n81052937 ISNI: 0000 0000 8290 146X GND: 118812742 SUDOC: 079213146 BNF: cb12315723z (data) NDL: 00457776 US Congress: S000935 SN

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