Wednesday, February 4.1978
3
Economy expected to lag
By FRED JOHNSON
Staff Writer
Although four University of Kansas business and economic professors don't agree on whether inflation or unemployment should be the government's main concern, they do agree that economic recovery will be slow.
The real danger facing the national economy today is that the government may overreact to the slow economic growth by overestimating the economy and start a new cycle of double digit inflation. Charles Krider, assistant professor of business, said Monday.
IT MAY BE SEVERAL years before it can be said that the recession is actually over, he said, but unfortunately a slow recovery will be necessary to prevent another round of high inflation.
"Ford's action so far has been good," Krider said. "He recognized inflation as the main problem and was willing to accept higher unemployment to reduce inflation."
David Sluenger, assistant professor of business, said it was difficult to predict what Ford and Congress do to stimulate the economy this year.
"Historically, election years are years of economic growth," he said. "The government usually stimulates the economy to make the voters to relect incumbents."
Shulenburge said that an economic growth rate of 10 per cent would be needed to lower the unemployment rate drastically by the end of the year.
THE UNEMPLOYMENT RATE has stayed at 3.3 per cent for some time while the labor force has been growing, he said. Consequently the rate of unemployment
isn't decreasing, but more people are employed, Shulenburger said.
Federal deficit spending in 1978 had helped the economy, he said, and had created a tax burden.
"The fear was that federal borrowing to finance the deficit would raise the interest rate and decrease the demand for money in the private business sector," he said. "That interest and the demand. The interest rate didn't increase and yet the private demand has been slow."
Krider said that borrowing money to create public service jobs only appeared to ease unemployment. If there is a demand for the money in private business, he said, government borrowing simultaneously creates a tax burden and unemployment in private business.
SHULENBURGER SAID public employment could become inflationary once the country pulls out of the recession. If the labor market becomes tight in the private business sector, he said, it could drive up wages and prices.
Sulmenburger said that when the country paled out of the recession, unemployment went up.
"The administration's target of 5 per cent is realistic," he said. "When unemployment rates are high, the government has to do more."
Ronald Olsen, chairman of the department of economics, said that it was difficult to reduce inflation and unemployment at the same time.
THE GOVERNMENT has to spend money or put it in the hands of the consumer to fight unemployment, he said. Inflation is fought by reducing federal expenditures, Olsen said, and limiting consumer buying power through taxation.
Olsen said Ford should concentrate on increasing employment. Inflation has been
Leland Pritchard, professor of economics, said that stimulating the economy, which some congressmen wanted to bring about more inflation and unemployment.
New senate studied
Ashton said the classified senate would
highest in the medical, food and energy industries, he said, which are the industries most needed by the unemployed and low income people.
About 100 Kansas legislators are expected to attend tonight's Fifth Annual Legislators' Dinner, sponsored by the Association of Residence Halls (AURH) at 7 in Lewis Hall.
Annual dinner fetes legislators
IF THE GOVERNMENT really wants to cure inflation and unemployment, he said, it must also provide a just tax system and introduce more competition in the price and labor markets.
"This hospitality dinner is a good way to host the Kansas state legislator of your choice and learn more about our state government," Beth MacCurdy, Leaward sophomore and dinner coordinator, said vearday.
All faculty are members of the faculty senate, and certain faculty members are elected to a faculty council to carry out day-to-day business. The students elect senators to represent them at weekly Student Senate meetings.
—requested that Evelyn Senecal, who is the liaison between the task force and Del Shankel, executive vice chancellor, discuss a possible means of funding for the new senate.
A University task force designated to study the possible creation of a senate for University classified employees plans to confer with representatives from the faculty and student senates to help decide on a structure for such a classified senate.
probably be a modified version of either the faculty or student senate. She said the task forced want to organize the new senate in a way that is easy to the existing University Senate Code.
Marilyn Ashton, administrative assistant in administrative information systems, who is in charge of the task force, said the force wants to find out from faculty and student senators the drawbacks of their senate structures.
—considered the possibility of permitting temporary members to sit on classified座位
Classified employees are not teaching university employees such as clerical and librarians.
MacCurdy said there had been no problems with the hostels and hosts for this year's dinner.
In other action the committee:
—announced that the committee of the law force would submit their final reports soon.
She said response had been so good that there were more students than needed to sponsor the legislators. Those extra would be used to greet and serve, she said.
Perry Sprague, Stafford, Tex., senior and reservation coordinator, said four Lawrence legislators were expected to be among those attending the dinner. Those members are representatives John Vogel, Lloyd Glover, Michael Glover and Senator Arden Booth.
It wasn't known yesterday that Gov. Bennett would be able to attend the dinner.
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Memorial Theatre
February 4 thru 13
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SUA Presents:
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presents
Thursday, Feb. 5 5-6:30 p.m.
"The 11:30 Jazz Ensemble"
directed by Charles Elliot with featured trumpet soloist Jim Sellards, one of the top professional trumpet players in Kansas City, a KU graduate, returning to his alma mater.
Friday, Feb. 6 8-12 p.m. "Cargo"
Saturday, Feb. 7 8-12 p.m. "Mackender Lynch"
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level 2-Kansas Union
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