14.47.48-Newman-discusses the battles a party leader faces, party unity complicated by the importance of local politics in Congress. After mass 1981 Democratic defections, the leadership learned painful lessons. Wright in office, says that if every year was like 1981, he'd quit. O'NEILL describes the diversity of interest in the Democratic party and the different caucuses in the party. Rep. WALTER FAUNTROY advocates a Congressional Black Caucus budget in a press conference. Rep. DONALD PEASE (D-OH) proposes a plan different from the Democratic party line. Rep. JIM JONES advocates his plan. Rep. PHIL GRAMM (then a Democrat) in well of House. Still of Gramm in meeting of Conservative Democrats with Reagan. V.O.-GRAMM was a leader of the conservative defectors from the Democrats in 1981. GRAMM in office, says that Conservative Democrats have led the country for most of the 20th Century [ah yes, two waves of the Klan, disfranchisement, lynching, attempting to derail the Civil Rights process, George Wallace, etc. etc., a proud legacy indeed]. Shot of meeting of Conservative Democrats led by GRAMM. V.O.-WRIGHT was p.o.'ed by GRAMM'S advocacy of REAGANOMICS because he helped to get GRAMM an influential position on the Budget Committee in the first place. WRIGHT says he's disappointed in Gramm's actions. Shot of WRIGHT in well of House, angrily arguing that REAGAN is unfairly asking CONGRESS to be overly submissive. 14.51.31-Shot of Wright and Michel, and then REAGAN entering the House chamber for State of the Union address. V.O.-discussion of Michel building a coalition behind REAGANOMICS. Rep. DAN MICA (D-FL) says that the Republicans are responsive to the concerns of Conservative Democrats. Rep. WILLIAM GREEN (R-NY) says that Reagan was receptive to his concerns as a Moderate Republican when they met. Still of REAGAN and MICHEL shaking hands in White House. TIP O'NEILL in House, giving a desultory warning that REAGANOMICS will be disastrous. Shot of MICHEL congratulating Republicans in a meeting. MICHEL in well of House declaring that the GOP is charting a new path in history. O'NEILL in office, speaking on phone to REAGAN, conceding that Reagan is going to have his way on REAGANOMICS Tax Cuts. Brief shot of 1981 Democratic leadership meeting. O'NEILL in office, says that it's impossible to mold the diverse Democratic party into a perfectly unified group, he can't exactly punish defectors. 14.54.10-Shot of PHIL GRAMM leaving a meeting of the Democratic leadership in 1982 after falling from the good graces of the party and being deposed from the Budget Committee. Rep. GILLIS LONG (D-LA) says that the party can't have a member going over to the other team's "huddle" in the Budget Committee. Shot of GRAMM speaking in Texas, says that he answers to the home voters, not the party leaders. The people applaud. V.O.-GRAMM resigned from Congress and ran as a Republican in a special election. Shot of tally board showing vote totals. Shot of Gramm on a podium, taking phone call from REAGAN praising GRAMM'S courage and principles. The crowd cheers. 14.55.58-Newman/Ornstein-discussion of the precarious task party leaders face in enforcing discipline. The difference in the Phil Gramm case was that Gramm served as an example to other renegade Democrats. Discussion of the 1980 landslide for Reagan encouraging Democrats to cross party lines, the 1982 returns were somewhat of a repudiation of Reaganomics and Democratic unity seems to be on the rise. Signs off. 14.57.20-closing credits/WETA credit/funding credits/PBS ID 14.58.34--OUT