Paul O'Neill (cabinet member)

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See Paul O'Neill for other people with this name.

Paul H. O'Neill

72nd United States Secretary of the Treasury
In office January 20, 2001 – December 31, 2002
Preceded by	Lawrence H. Summers
Succeeded by	John W. Snow

Born	December 04, 1935 (age 71) St. Louis, Missouri
Political party	Republican

Paul Henry O'Neill (born December 4, 1935) served as the 72nd United States Secretary of the Treasury for part of President George W. Bush's first Administration. He resigned in December 2002 under pressure from the administration and became a harsh critic. O'Neill was chairman and CEO of Pittsburgh-based industrial giant Alcoa from 1987 to 1999, and retired as chairman at the end of 2000. In 1995, he was made chairman of the RAND Corporation.

1 History
2 Bush Administration
- 2.1 Book: The Price of Loyalty
3 Comments and views
4 References
5 External links

[edit] History

[edit] Early History

O'Neill was born in St. Louis, Missouri, although his "hometown" and current residence is Pittsburgh. He met his wife at Anchorage High School in Anchorage, Alaska, from which they both graduated in 1954. He lived on the military base there with his parents. He received a bachelor's degree in Economics from California State University, Fresno and a Master of Public Administration from Indiana University. O'Neill and his wife Nancy have four children and 12 grandchildren.

He began his public service as a computer systems analyst with the Veterans Administration, where he served from 1961 to 1966. He joined the United States Office of Management and Budget in 1967, and was deputy director of OMB from 1974 to 1977. After President Gerald Ford lost the 1976 election, O'Neill took an executive job at the International Paper Company in New York City. He was vice president of the company from 1977 to 1985 and president from 1985 to 1987.

[edit] Mid Career

In 1988, he was approached by President George H. W. Bush to be Secretary of Defense. O'Neill declined, but recommended Dick Cheney for the position. Bush then pursued O'Neill to chair an advisory group on education that included Lamar Alexander, Bill Brock, and Richard Riley. Under O'Neill's leadership, the group recommended national standards and unified testing standards.

O'Neill was chairman and CEO of the Pittsburgh industrial giant Alcoa from 1987 to 1999, and retired as chairman at the end of 2000. His reign was extremely successful, as the company's revenues increased from $1.5 billion in 1987 to $23 billion in 2000 and O'Neill's personal fortune grew to $60 million.

In 1995, O'Neill was made chairman of the RAND Corporation.

[edit] Community Service Career

In December 1997, O'Neill together with Karen Wolk Feinstein, President of the Jewish Healthcare Foundation, founded the Pittsburgh Regional Healthcare Initiative [1] (PRHI). They assembled a wide-ranging coalition of healthcare interests to begin to address the problems of healthcare, as a region. PRHI adapted the principles of the Toyota Production System into the "Perfecting Patient Care" [2] system. Mr. O'Neill became a leader locally and nationally in addressing issues of patient safety and quality in healthcare. [3]

O'Neill was also pegged by Mayor Tom Murphy as a co-leader of Pittsburgh's Riverlife Task Force, along with the publisher of the Post-Gazette.

In 2005, O'Neill entered closed-door meetings with the Pittsburgh Gambling Task Force to help them reach a "no-endorsement" stance on what casino to recommend. (News from June 1, 2006)

[edit] Bush Administration

Official portrait as Secretary of the Treasury

O'Neill's signature, as used on American currency

O'Neill was appointed Secretary of the Treasury by George W. Bush. He selected Mark Weinberger to be the assistant secretary for tax policy. O'Neill was a somewhat outspoken member of the administration, often saying things to the press that went against the administration's party line, and doing unusual things like taking a tour of Africa with singer Bono.

A report commissioned in 2002 by O'Neill while Treasury Secretary suggested the United States faced future federal budget deficits of more than US$ 500 billion. The report also suggested that sharp tax increases, massive spending cuts, or both would be unavoidable if the United States were to meet benefit promises to its future generations. The study estimated that closing the budget gap would require the equivalent of an immediate and permanent 66 percent across-the-board income tax increase. The Bush administration left the findings out of the 2004 annual budget report published in February 2003.

O'Neill's private feuds with Bush's tax cut policies as well as his push to investigate al-Qaeda funding coming from the United Arab Emirates led to his resignation in 2002 and replacement with John W. Snow.

[edit] Book: The Price of Loyalty

Main article: The Price of Loyalty

The Price of Loyalty: George W. Bush, the White House, and the Education of Paul O'Neill (ISBN 0-7432-5545-3), a 2004 book, described the Bush administration during O'Neill's tenure. Written by former Wall Street Journal reporter and Pulitzer Prize-winning journalist Ron Suskind, the book says Bush's economic policies were irresponsible, Bush was unquestioning and uncurious, and the war in Iraq was planned from the first National Security Council meeting, soon after the administration took office.^[1]^[2]

O'Neill was criticised for his claims that Bush had wanted an invasion of Iraq so early in his term, but the current Downing Street Memo - if proven accurate - supports the position of O'Neill and Richard A. Clarke, both former members and now critics of Bush's administration, that indeed such planning was taking place (although the memo was from July 2002, well after Bush had taken office).

[edit] Comments and views

In a July 25, 2001 International Herald Tribune article, he shared a comment on the theory of an inevitable financial "contagion" in global financial markets and the theory that investors at the time would retreat from emerging markets because of their worries that the financial crises in Argentina and Turkey may spread to Brazil and elsewhere. Mr. O'Neill said that this view was a "fashion" and that "we need to retire that fashion like the hula hoop." "With a magnifying glass, you couldn't find a connection between Turkey and Argentina, except maybe in people's minds", and that in a well-managed global system, investors would not pull back from loans in emerging markets simply because of such isolated troubles.