Tuesday, July 23.1974
University Daily Kansan
3
Social Security Collapse Predicted
Prof Says Deficit Operation Doomed Unless Changed
By RICK HIRD Kansan Staff Reporter
Editor's Note: This is the second of three stories about the problems facing the social media community.
If the present trend continues, the total collapse of the social security system will take place between the years 2015 and 2020, according to Donald McCoy, professor of
Figures from the Department of Health, Education and Welfare indicate that the system will be operating on a $20 billion deficit by 1990.
What happened to the foolproof method of providing old age benefits? Why are reserves at an all-time low? And what about all the money Joe Smith, the average American, has paid into the system? He receives a return someday just as others have.
THE MAIN PROBLEM FACING the system is that the amount received from taxation is far less than the amount paid in taxes. This means that a small amount can be spent from the social security trust
fund, and these limits are being stretched by Congress to provide increase benefits.
The principle behind this trust fund is that working Americans today foot the bill for workers presently retiring. When the next generation begins working, they will foot the bill of training and so on. It is a never ending process of replaminating the trust fund from the work force.
Another problem now facing the system is that the work force is dropping because of the reduced birth rate following the "baby boom" of the post-war era. A reduced birth rate means a lower amount of benefits for a larger number of elderly makes the problem apparent.
ACCORDING TO HEW, in 1955 for every person collecting benefits there were seven workers paying social security taxes. Now, the ratio has dropped to three workers per worker. In 1970, workers collecting benefits. By early in the next century, the will drop to two to one.
This is further dramatized by considering the number of Americans collecting benefits. In 1947, one in every 71 Americans benefited. Now, one in six collect benefit
Finally, consider the dramatic increase in the amount of benefits along with the increase in the number of programs, and the increased importance Congress has boosted the typical benefit by
69 per cent. The number of new programs added within the next 10 years is at concern.
Joe is Smith guaranteed to receive his money, in view of all these problems? McCoy said not necessarily, but that it was possible he would meet to meet all obligations as fully as possible.
"Any government can default at any time on any investment," he said. "The United States has never done so, and it's not likely that it will, but the possibility is there."
MCCOY SAID, for example, that the United States could default on treasury bills because it was unlikely that it would do so. He said he thought it was more likely that other programs, such as defense and highway taxation, would be used to supplement the social security tax.
"Political pressure and expectations of the people will probably demand that no cuts be made in services - at least not until approximately the year 2000," McCoy said. Right now it looks to me as if the military may be the top priority for cutting back."
McCoy recommended three solutions to the upcoming crisis. The first, he said, is really an interim policy designed to "bring everything out into the open."
He said that all old age pension programs could be abolished and that all Americans, when they reached retirement age, could be given a pension out of general revenue. He
The Kansas Board of Regents recommended a ten per cent increase in faculty salaries and a 15 per cent increase in other costs.
The Regents also approved the top priority item for the University's improvement, which was more than one million for the development and support of computing resources, Dykes said.
The number of students receiving instructional use of the
computer has risen from 3,000 in 1900 to 12,500 in 1974,
bea*
"Almost every academic department is now using the computer for instruction in some way." Dykes said.
The second option would be a coordination of private retirement programs with supplementary federal payments. He said Congress could, in the next 10 years, phase out government responsibility and, in effect, reinforce the balance to private companies.
Chancellor Archie Dykes said last night that prospects for increased enrollment and increased funding at the University of Alabama were positive.
Dykes Optimistic About Next Year
In a speech delivered to the Lawrence chapter of Phi Delta Kappa, a professional organization for educators, Dykes said the number of applications for admission to KU were higher than ever and he described freshmen, undergraduate transfers and graduate students.
The largest increase, he said, was in freshman applications, which were about 400 more this year than a year ago. The number of freshmen dropped by 125%.
The regents also approved the use of $370,000 for the final planning of a new computer building, $85,000 for preliminary plans for an addition to Robinson Gymnasium and $115,000 for preliminary plans for a Science Complex addition to Maldott Hall.
"One of our primary objectives during the past year has been to improve public understanding and appreciation of the University," he said. "A university can be no more than the people of the state want it to be."
said this could have the advantage of keeping up with inflation.
Dykes also expressed satisfaction with increased Endowment Association receipts and increased legislative support, which have benefited him.
"Although the regents eliminated many of our requests that we considered of vital importance" Dykes said, "on the whole, we have had a very good record."
THIS SECOND OPTION, he said, would produce two advantages. First, it could mean the development of a larger pool of people who invest in business dusty typically gets more returns than does government on investments. Second, people would have more chance of getting good returns on their investments because the investment on returns from private investment
The University has increased its services to the state, Dykes said, through programs such as the state biological and geological surveys, city and county government training programs, the Law Enforcement Training Center, the Bureau of Child Research, business and engineering technical applications and the Communicable Disease Center.
"KU has been recognized for the quality of its programs, and we want that quality to be enhanced and improved in the future."
Inge Play Director Details Method
The third option, which McCoy said was the least likely, was to allow the social company and earn interest on an private company and earn interest on investment. McCoy said this move had been blocked in the past by private businesses, who feared competition from a source rich enough.
By Kathy Pickett
Kansas Staff Reporter
Reaching Out, Coming Together Important Symbols
The important symbols in the play "The Dark at the Top of the Stairs" were a reaching out to another person and then a reaching back with him, with him, Cappelletti said last night.
Cappelletti, who is a director and teacher of acting at the New York High School of Performing Arts, said people in the play were so used to themselves and thus reached out to others.
The image of a handshake was important to this idea of reaching out, Cappelletti said. Therefore, he tried to include handshakes, and touching in the business of the play.
Cappelletti, guest director for "The World of William Inge" festival, spoke to about 40 persons in Murphy Hall about how he and his team were able to top off the Stars," written by William Inge.
He thought of the picture of God reaching out to Adam, which is part of the Sitting
Chapel ceiling, when he directed the play, he said. In the end he showed the husband and wife reaching their hands to each other as in the Malengelo painting.
One advantage to the third option would be that Congress could make low interest rates lower.
Cappelletti said he also saw moral values affecting people in the play to a point that they developed prejudices. These prejudices stressed differences and contrasts between people, Cappelletti said. Contrasts were between the rich and poor, sweet and gentle, illusion and reality, honesty and deception and brother and sister.
to find and stress as much humor as possible.
Cappellietti said he thought Ige set up these contrasts to show his audiences that朴俊锡的风格是
Cappelletti also said he thought the characters in the play weren't necessarily confined to the Midwest. The people were too to be understood anywhere, he said.
Cappellietti it was necessary to handle the play delicately to keep it from being a soap-opera. He stressed that the actors should keep from self-pity and tried
There were a few special problems, Cappelliell said, in directing the performance here. For instance, he said, he had to leave one character completely out.
That character was a little boy, Jonathan, who served as a contrast to the little boy Sonny. Cappelli said the boy cast as an elephant, and the boy cast as butterball, and dropped out of the cast.
Cappellietti said he also had had some problems with lights, sound and props because the crews had also been involved the other two plays in the theatre festival.
Cappelletti said that if he had had time he would have used more improvisations and acting exercises to help the cast assume their roles.
"Probably any one of these three would work better than the present system," Mushroom said.
If Congress decides to avoid such far reaching programs as McCoy advocates, it could be a bad sign.
FIRST, to meet the increasing demand from increasing benefits, increases in taxes greater than those already imposed could be implemented. This seems rather unlikely because of the political unpopularity of such a move.
Second, benefits could be chopped to payments more in line with receipts. McCoy said this would be unlikely until a time when the crisis could clearly be seen by all.
The third option, imposing a flat ceiling on benefit payments, really doesn't deal with inflation effectively and leaves the bulk of the problem to a future Congress.
The fourth and most likely option is to draw funds from the treasury's general revenue. This is most popular among liberal groups because it politically brighter than most other solutions.
What Congress will do to meet the pending crisis remains to be seen. It is certain, however, that either the social security system must change or it will die of exhancement, dragging many hopeful Americans down with it.
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First Female Barber Here Breaks All-Male Tradition
"She told me that there was no homework, only practice, and that the money is good." Faulkender said recently. "That's what I liked about the idea."
Lawrence no longer has only male barbers. The tradition ended about a month ago when Jeanna Faukender became Lawrence's first female barber.
2510 W. 25th Phone 842-1455
After high school, Faulkner attended the Kansas School of Barbering in Wichita. He attended Yale Law School.
Falkenauer, 18, a native of Ness City, got the idea for the job from her父 who is a teacher.
Faukender said that she would recommend the barber profession to other women, and that they would find it a lot more interesting than being a beautician.
"Most of the customers think it's different," she said. "Some of them tease me, and some of them don't want me to cut their hair that we wear." But she'll cut their hair that I've cut, they'll let me cut theirs."
Faulkner said that being a female barber was very exciting but that it was not. "I always want to be in charge."
"Making a man look better is a lot better than making a lady look better," Faulkender said. "And anyway, I didn't want to be around ladies ossessing."
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A Car Pool File Matching Students Commuting
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KANSAN WANT ADS
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each additional word: $0.10
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1968 Mercury-Montage, Great Condition. Call Lennon at 843-652 or 843-718-394.
Accommodations, goods, services and employment advertised in the University Daily Kraman are offered to all students without regard to their financial circumstances. ALL CLASSIFIED TO 111 FIRST HALL
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CONT PLUS 10% STRRO EQUIPEMENT, Al Mixture
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Western Civilization Notes-Now on Sale. There are no restrictions on the items they're at an advantage. 2) If you don't want to spend more money, other ways come to the same thing. 3) You can buy a campus live event in Civilization. Available now at Campus Museum Crescent.
FOR SALE
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NOTICE
NORTH SIZE COUNTY SHOP 307 N.2nd Mile
NORTH BORDER STREET 45 N.2nd Mile
Station No. 3 New Name of Business COUNTY
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The Gliane 18-apeased taken from the Southwest corner of the Student Health Center has my initials "JR" below it, followed below the pedals.-Return it to 1529 K. #208 in the collection for returning to bicycle-leave number 1361.
**60 married couples who have no children**
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$pued per couple for 2 hours. Couples who are
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