1980 presidential election

In 1980, President Jimmy Carter was running for reelection as a second term president.  In July of 1979, Carter had given his “lack of confidence in America” speech.  The rising oil prices and the Iran hostage situation only added to his problems.  In November of 1979, both Ronald Reagan, the former Republican Governor of California, and Senator Ted Kennedy, the Democratic Senator from Massachusetts, had declared that they were going to run for President.  Some of the Carter reelection campaign was based primarily on attacking Ronald Reagan, frequently pointing out and mocking Reagan’s proclivity for gaffes, using his age and perceived lack of connection to his native California voter base against him.  Later, the campaign used similar rhetoric as that of Lyndon Johnson’s 1964 presidential campaign against Barry Goldwater, portraying Reagan as a warmonger who could not be trusted with the nuclear arsenal.  Along with Reagan and Kennedy, Carter was opposed by centrist John B. Anderson, who had previously contested the Republican presidential primaries, and upon losing to Reagan, reentered the race as an independent.  Anderson advertised himself as a more liberal alternative to Reagan’s conservatism.  As the campaign went on, Anderson’s polling numbers dropped and his base was gradually pulled to Carter or Reagan.  Carter had to run against his own “stagflation” ridden economy, while the hostage crisis in Iran dominated the news every week.  He was attacked by conservatives for failing to “prevent Soviet gains” in less-developed countries, as pro-Soviet governments had taken power in countries including Angola, Ethiopia, Nicaragua, and Afghanistan.  His brother, Billy Carter, caused a controversy due to his association with Muammar Gaddafi’s regime in Libya.  He alienated liberal college students, who were expected to be his base, by reinstating registration for the military draft.  On October 28, Carter and Reagan participated in the sole presidential debate of the election cycle in which they were both present, due to Carter refusing to participate in debates that included Anderson.  Though initially trailing Carter by several points, Reagan experienced a surge in polling after the debate.  This was in part influenced by Reagan deploying the phrase “There you go again,” which became the election’s defining phrase.  Reagan defeated Carter in a landslide, winning 489 electoral votes. The Senate went Republican for the first time since 1952.  In his concession speech, Carter admitted that he was hurt by the outcome of the election but pledged “a very fine transition period” with President-elect Reagan.  Do you remember the election of 1980?

John B. Anderson (1922-2017)

John B Anderson was an American politician who served in the US House of Representatives, representing Illinois’s 16th congressional district from 1961 to 1981.  He graduated as the valedictorian of his class at Rockford Central High School and from the University of Illinois at Urbana–Champaign in 1942.  A member of the Republican Party, he also served as the Chairman of the House Republican Conference from 1969 until 1979.  Initially one of the most conservative members of the Republican House caucus, Anderson’s views moderated during the 1960s, particularly regarding social issues. Originally, Anderson introduced a constitutional amendment to attempt to “recognize the law and authority of Jesus Christ” over the United States three times.  Anderson was also supportive of Barry Goldwater’s candidacy for president in 1964 because Goldwater was a “honest, sincere man.”  However, Anderson voted in favor of the Civil Rights Acts of 1964 and 1968, as well as the 24th Amendment to the U.S. Constitution and the Voting Rights Act of 1965.  He strongly criticized the Vietnam War as well as President Richard Nixon’s actions during the Watergate scandal.  Anderson entered the 1980 Republican presidential primaries, introducing his signature campaign proposal of raising the gas tax while cutting social security taxes.  He established himself as a contender for the nomination in the early primaries, but eventually dropped out of the Republican race, choosing to pursue an independent campaign for president, because the Republican platform failed to endorse the Equal Rights Amendment.  Without any campaigning, he was running at 22% nationally in a three-way race.  He qualified for every ballot, raised a great deal of money, and rose in the polls to as high as 26%. However, in the summer of 1980, he had an overseas campaign tour that was a huge error.  By the third week of August, he was in the 13–15% range in the polls.  In late August, he named Patrick Lucey, the former two-term Democratic Governor of Wisconsin and Ambassador to Mexico, as his running mate with a 317-page comprehensive platform, under the banner of the National Unity Party.  Carter said that he would not appear on stage with Anderson, and sat out the first presidential debate, which hurt President Carter.  Reagan and Anderson had a debate in Baltimore on September 21, 1980.  Anderson did well, and polls showed he won a modest debate victory over Reagan, but Reagan was seen as a reasonable candidate who carried himself well in the debate.  In the following weeks, Anderson slowly faded out of the picture with his support dropping from 16% to 10% in the first half of October.  By the end of the month, Reagan debated Carter alone without Anderson.  Anderson’s support continued to fade down to 5%.  In the end, Anderson finished with 6.6% of the vote.  Most of Anderson’s support came from those Liberal Republicans who were suspicious of Reagan’s conservative record.  Anderson did not carry a single precinct in the country. He won support among Democrats who became disillusioned with Carter, as well as Rockefeller Republicans, independents, liberal intellectuals, and college students.  I voted for him.  Since that time, I have made sure that I always voted for the Democratic candidate rather than an independent. After the election, he resumed his legal career and helped found an organization that advocates for electoral reform, including an instant-runoff voting system.  Anderson served as a visiting professor at numerous universities and was on the boards of several organizations.  He endorsed Green Party candidate Ralph Nader in 2000.  He often referred to his candidacy as “a campaign of ideas,” which I found attractive.  Have you ever heard about John Anderson?

The Republican convention in 1980

There were three main candidates for the Republican nomination for President in 1980. Former Governor Ronald Reagan of California, Former CIA director George H. W. Bush of Texas, and U.S. Congressman John B. Anderson of Illinois.  Many others were in but withdrew, including Senate Minority Leader Howard Baker of Tennessee, Former Governor John Connally of Texas, U.S. Congressman Phil Crane of Illinois, U.S. Senator Bob Dole of Kansas, former Minnesota Governor Harold Stassen, Senator Larry Pressler of South Dakota, and Senator Lowell Weicker of Connecticut.  Others who declined to run included former Astronaut Frank Borman of Indiana, RNC Chairman Bill Brock of Tennessee, Senator John Danforth of Missouri, Governor Pete du Pont of Delaware, Representative Jack Kemp of New York, Former NATO Commander Alexander Haig of Pennsylvania, Senator John Heinz of Pennsylvania, Senator Charles Mathias of Maryland, Senator Chuck Percy of Illinois, Former Commerce Secretary Elliot Richardson of Massachusetts, Former FBI Director William Ruckelshaus of Indiana, Former Treasury Secretary Bill Simon of New Jersey, Governor Jim Thompson of Illinois, and Former President Gerald Ford of Michigan.  Anderson made a big impact at the January 5, 1980, Republican candidates’ debate in Des Moines, Iowa.  However, he finished with 4% in Iowa and 10% in New Hampshire.  Anderson was declared the winner in both Massachusetts and Vermont by the AP, but he lost to George Bush in Vermont and Reagan in Massachusetts when the count was complete.  Anderson also lost to Reagan in Illinois, 48%-37%.  Anderson finished third in both Connecticut with 22% and Wisconsin with 27% of the vote.  The 1980 Republican National Convention convened at Joe Louis Arena in Detroit, Michigan, from July 14 to July 17, 1980.  The Republican National Convention nominated retired Hollywood actor and former Governor Ronald Reagan of California for President and former Representative George H. W. Bush of Texas for Vice President.  Reagan ran on the theme “Let’s Make America Great Again.”  Does that sound familiar?  Reagan received 97% of the votes and Anderson got 2% and Bush 1%.  After former president Gerald Ford could not reach an agreement to become his Vice President, George Bush accepted the nomination as the Vice-President, as Reagan himself announced it to the convention.  However, Bush got only 93% of the VP vote, as Jesse Helms, Jack Kemp, Phil Crane, and James R. Thompson received the rest of the votes?  Do you remember the Republican Convention of 1980?

Senator Ted Kennedy (1932-2009)

The strange case of the Kennedy family revolved around Ted Kennedy as the younger brother of President John F. Kennedy and U.S. attorney general and U.S. senator Robert F. Kennedy.  After attending Harvard University and earning his law degree from the University of Virginia, Kennedy began his career as an assistant district attorney in Suffolk County, Massachusetts.  He won a November 1962 special election in Massachusetts to fill the vacant seat previously held by his brother John, who had taken office as the U.S. President.  He was elected to a full six-year term in 1964 and was re-elected seven more times.  The Chappaquiddick incident in 1969 resulted in the death of his automobile passenger, Mary Jo Kopechne.  He pleaded guilty to a charge of leaving the scene of an accident and received a two-month suspended sentence.  That incident and its aftermath hindered his chances of becoming president.  He ran in 1980 in the Democratic primary campaign for president, but lost to the incumbent president, Jimmy Carter.  However, Ted Kennedy was known for his oratorical skills.  His 1968 eulogy for his brother Robert and his 1980 rallying cry for modern American liberalism were among his best-known speeches.  After his brothers’ assassinations, Ted Kennedy had been asked to take his brother Robert’s place at the 1968 Democratic National Convention, but he refused.  He ran for Senate Majority Whip in 1969, with many thinking that he was going to use this as a platform for the 1972 race.  However, then came the notorious Chappaquiddick incident that killed Mary Jo Kopechne.  Kennedy subsequently refused to run for president in 1972 and 1976.  Many of his supporters suspected that Chappaquiddick had destroyed any ability he had to win on a national level.  Despite this, in the summer of 1979, Kennedy consulted with his extended family, and that fall, he let it leak out that because of Carter’s failings, 1980 might indeed be the year he would try for the nomination.  Gallup had him beating the president by over two to one, but Carter remained confident, famously claiming at a June White House gathering of Congressmen that if Kennedy ran against him in the primary, he would “whip his ass.”  Kennedy’s official announcement was scheduled for early November.  A television interview with Roger Mudd of CBS a few days before his announcement went badly, because he could not clearly answer why he was running for President.  The rally around the flag after the Iran hostages meant that Carter was able to win the primaries.  Momentum built for Ted Kennedy after Carter’s attempt to rescue the hostages on April 25 ended in disaster and drew further skepticism towards Carter’s leadership ability.  Kennedy refused to drop out, and the 1980 Democratic National Convention was one of the nastiest on record.  On the penultimate day, Kennedy conceded the nomination and called for a more liberal party platform in the “Dream Shall Never Die” speech, considered by many as the best speech of his career, and one of the best political speeches of the 20th Century.  However, Kennedy for the most part ignored Carter.  Thus, Ted Kennedy remained the senior senator from Massachusetts from 1962-2009, until his death.  He was the second-most senior member of the Senate when he died and ranked fifth in U.S. history for length of continuous service as a senator.  What do you remember about Senator Ted Kennedy?

The Democratic Primary in 1980

President Jimmy Carter in 1980 was being attacked from the liberal wing of the Democratic Party, as Ted Kennedy wanted to replace him as president.  After Kennedy announced his candidacy in November 1979, questions about Kennedy’s activities during his presidential bid were a frequent subject of Carter’s press conferences during the Democratic presidential primaries. Senator Ted Kennedy of Massachusetts won 12 contests and received more than seven million votes nationwide, enough for him to refuse to concede the nomination until the second day of the convention.  Despite winning key states such as California and New York, Kennedy surprised his supporters by running a weak campaign.  This was the last primary election in which an incumbent president’s party nomination was still contested going into the convention.  Jimmy Carter would be the last incumbent president to lose a primary.  However, Carter won most of the primaries and secured his renomination, even though Kennedy had mobilized the liberal wing of the Democratic Party against Carter so that they gave him weak support in the fall election.  Carter won 37 states to Kennedy’s 13 states with 10 million votes to 7 million for Kennedy, 51%-37%.  Thus, incumbent President Jimmy Carter was again selected as the nominee through a series of primary elections and caucuses, culminating in the 1980 Democratic National Convention, held from August 11 to 14, 1980, in New York City.  At that time, Iran was experiencing a major uprising that severely damaged its oil infrastructure and greatly weakened its capability to produce oil.  President Carter’s approval ratings were very low, about 28%.  Although Hugh Carey and William Proxmire decided not to run, Senator Edward M. Kennedy finally made his long-expected run at the presidency.  Carter and Vice President Mondale were formally nominated at the 1980 Democratic National Convention in New York City.  Carter delivered a speech notable for its tribute to the late Hubert Humphrey, whom he initially called “Hubert Horatio Hornblower.”  Kennedy, on the other hand made his famous “The Dream Shall Never Die” speech, in which he criticized Reagan, but he did not endorse Carter.  Do you remember Kennedy running for President in 1980?

Insurance broker versus Insurance agent

I was going to be an insurance agent, and not a broker.  Insurance agents represent the insurers, while brokers represent the client.  However, Insurance agents can complete insurance sales or bind coverage, while brokers cannot.  Brokers search for policies from multiple different carriers, but an agent must sell policies from one or more of the insurance providers that they represent.  Agents explain the different insurance options and leave the decision up to the client, at which point they can then help facilitate a completed transaction and bind coverage to the client.  Brokers typically play more of an advisory role in finding coverage than agents, because brokers have a responsibility to represent the best interests of the client.  Brokers examine several policies and recommend certain coverages from different companies, but then must turn to an agent or an insurance provider to have a selected policy bound to a client.  However, both brokers and agents must be licensed.  Would you prefer an insurance agent or an insurance broker?

Getting an insurance license

I already had a stock broker license, so now I had to go to classes to become a licensed insurance agent.  To become an insurance agent, you had to complete a number of pre-licensing requirements, as well as between 7-20 hours in a classroom setting for the insurance lines of accident/health, fire (property) casualty, and personal life insurance.  After the pre-licensing requirements, then you could register to take your exam.  There was a general exam and a state exam for each line of authority.  You had to pass the general and the state exam within 90 days of each other.  You could not take the exam unless you had proof of completion of the required pre-licensing courses.  After you passed the licensing examination you got a pass sheet along with an instruction sheet by the test administrator.  If you failed the exam, they would arrange for another exam.  After you passed the test, you had to wait five days after passing your exam, to apply for your license.  Your license expired one year from your birth month.  Every insurance agent had to have a $50,000 total aggregate liability policy.  Thus, I spent a lot of time in classroom settings.  I was going to go to classes so that I could pass a test to become a licensed insurance agent.  There are many types of insurance, like auto, homeowners, health, and life.  Annuities and service contracts are a form of insurance.  I would have to know the difference between these different types of insurance.  Prudential put an emphasis on life insurance and annuities, not on auto, home, or health insurance.  I had to learn the difference between term life insurance and whole life insurance.  The information was not difficult, but you had to know it to pass the test in the various forms of insurance.  After you were licensed, then you had to go to refresher or continuing education classes.  I liked this classroom aspect of this job, just like I loved learning about stocks and options.  Meanwhile, there were in house meetings about how to sell life insurance.  To be honest, I thought the sign selling guy for Gulf was a better salesman, since he insisted that you had to know and love your product in order to successfully sell it.  Prudential kept talking about making sure that the customers knew that they needed life insurance.  They had all kinds of booklets and sales techniques.  Their best example was that Nat King Cole did not have any life insurance.  I guess they forgot to mention that his daughter Natalie Cole did all right.  I got all my licenses after a couple of months.  I was ready to sell life insurance.  When I asked about auto and home insurance, they told me that Prudential was not that competitive in the Chicago market.  Thus, I kept my State Farm Insurance for my home and auto.  However, I did buy life insurance for Margaret and myself, because I got my first commission.  I also sold her an annuity that she could pay through the Archdiocese of Chicago payroll deduction.  Anyway, I sold something even if it was to myself and Margaret.  Do you have life insurance?

My daily life as a Prudential salesman in 1980

The Prudential office in Palos Heights was a mere half hour ride on side streets.  I did not have to be there until 9:00 AM, so I never left my house before 8:30 AM.  There were no early morning commutes to O’Hare.  There were no weekend work schedules.  However, there was evening calling.  I had to work a couple nights a week.  It was a relaxing work schedule.  Generally, we went out to lunch at a restaurant across the street.  I usually ordered soup with bread for lunch.  I did not want to spend a lot of money since I would be home for supper all the time.  My new boss was a guy from downstate Decatur, Illinois.  I had never met anyone from there.  He was about my age, 40 or younger.  He wanted to build a professional group at this Prudential Office.  I do not remember his name, but he was pleased to have me there.  I would have a year to get accustomed to insurance sales so that they paid me a salary, as I was an exclusive agent of Prudential.  I would get a commission on top of my salary for the first year, but after that I would have to rely on my commissions and renewals.  I said that I understood this.  He was sure that I would succeed.  He was going to give me all the help that I needed.  In fact, I reported to another agent who was called Richard Van Dyke.  I remember his name because it was the same as Dick Van Dyke.  He was a Dutch Reform deacon in his church in South Holland, IL.  He was a very nice person, whom I reported to directly.  I got to know him pretty well.  What do you know about insurance?

Prudential Insurance Company

Prudential Insurance is an American Fortune Global 500 company that provides insurance, retirement planning, investment management, and other products and services to both retail and institutional customers throughout the United States and in over 40 other countries.  In 2019, Prudential was the largest insurance provider in the United States with $815 billion in total assets.  I knew Prudential because of its logo with the Rock of Gibraltar.  Thus, the slogans were “Get a Piece of the Rock” and “The Strength of Gibraltar.”  This company began in Newark, New Jersey, in 1875, originally called The Widows and Orphans Friendly Society, then the Prudential Friendly Society, founded by John F. Dryden (1839-1911), who later became a U.S. Senator from New Jersey, who was known as the “Father of Industrial Insurance.”  In the beginning, Prudential sold only one product, burial insurance.  Dryden’s son Forrest F. Dryden (1864-1932) became the president until 1922.  There was a history of The Prudential Insurance Company of America up to about 1975, in the book Three Cents A Week, referring to the premium paid by early policyholders.  At the turn of the 20th century, Prudential and other large insurers reaped the bulk of their profits from industrial life insurance, or insurance sold house-to-house in poor urban areas.  Industrial workers paid double what others paid for ordinary life insurance.  Due to high lapse rates, as few as 1 in 12 policies reached maturity.  Prominent lawyer and future U.S. Supreme Court Justice Louis Brandeis helped pass a 1907 Massachusetts law to protect workers by allowing savings banks to sell life insurance at lower rates.  Prudential has evolved from a mutual insurance company to a joint stock company, now traded on the NYSE, under the symbol PRU, since 2001.  In 1981, the company acquired Bache & Co., a stock brokerage service that operated as a wholly owned subsidiary until 2003.  In 1999, Prudential sold its healthcare division, Prudential HealthCare, to Aetna for $1 billion.  On May 1, 2003, Prudential formalized the acquisition of American Skandia, the largest distributor of variable annuities through independent financial professionals in the United States.  In April 2004, the company acquired the retirement business of CIGNA Corporation.  In February 2011, the company acquired AIG Edison and AIG Star both in Japan from American International Group, Inc (AIG) for a total of $4.8 billion.  In January 2013, Prudential acquired the individual life insurance business from The Hartford for $615 million in cash, 700,000 in force life insurance policies with a face amount of approximately $135 billion.  In September 2019, the company agreed to acquire online startup Assurance IQ Inc. for $2.35 billion.  During the 1980s and 1990s, Prudential Securities Incorporated (PSI), a division of Prudential Financial, settled with investors for $330 million over suspected fraud.  In 1997, Prudential settled a class action lawsuit by millions of its customers who had been sold unnecessary life insurance by Prudential agents over a 13-year period ending in 1995.  Prudential agents had improperly persuaded customers to cash in old policies and purchase new ones so that the agents could generate additional sales commissions.  Prudential has received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign every year since 2003.  What do you know about Prudential?

An unemployed individual contractor

I theoretically liked the idea of being an individual contractor, but the only problem is that I had no regular individual income.  I think that I needed to be back as an employee who earned money.  What did I want to do?  I had ruled out stocks and outside salesperson.  I decided to use a wider net.  I was going to use the Sunday Chicago Tribune as my source for job openings.  I actually had a couple of interviews.  There was an opening for a furniture store manager.  My experience as a furniture manager with an MBA meant that I might be a good fit.  I went for the interview at O’Hare airport.  I thought it was a strange place but I knew how to get there.  When we began to talk, it was apparent that he thought that I would be a good candidate.  Then we talked about a salary of about $25,000 a year.  Everything was looking good.  However, then he mentioned that the place was in northern Illinois around Lake Geneva.  Suddenly, I had my doubts.  I was not going to drive another hour a day past O’Hare to the Wisconsin border.  That would be at least a two hour drive each way, if I was lucky.  I was not going to move, since Margaret’s job was the stability in our life.  I had a reasonable mortgage and Joy was happy in her school.  I then told him no, but he asked me to think about it.  I called him back a day later and said “No” again.  The logistics would not work out.  The other job I almost took was as a New York Life Insurance salesman.  I had an MBA and a Stock Broker’s license.  This would be a job downtown.  I went down to their offices.  I could easily take the train downtown as I had done as the CBOE Market Maker.  However, the remuneration was iffy.  They offered me a $1,000 and training as an insurance agent.  That did not seem very much.  Thus, I turned it down.  The other offer that I got was from a Prudential Insurance Office in Palos Heights, 20 miles north of our house in Matteson, less than a half hour away.  The offer there was $12,000 a year for a year only, while I was getting my insurance license and training.  After that I would be on commission for whatever I sold and renewals.  After my last few adventures, this seemed like a steady income for a year and I would get to learn about insurance.  I knew that Bud Fricke was into insurance and ran his own Insurance Office just outside Detroit.  I also remembered that as a kid in Carteret, NJ, we always had Prudential Insurance, as a salesman would come to our house with a big book that recorded how much we paid.  In other words, it was a substantial company.  The money was not that much, but it was better than nothing.  I accepted this offer.  I became an insurance man.  Have you ever looked for a job?