University Daily Kansan, February 20, 1981
Page 3
KU faculty approve. criticize Reagan's proposals
By BOB MOEN Staff Reporter
The economics plan that President Reagan announced Wednesday night received both approval and criticism for its businesslessness and economics faculty members.
"The way we were going, we were slowly but surely eroding the vitality of the economy." Anthony Redwood, director of business research, said.
He said Reagan was trying to get the government back in order and reduce its spending, while balancing a highly unbalanced budget.
Reagan's plan calls for massive budget reductions, individual and business tax cuts and reduced federal regulations. The plan is based on the so-called "sustainability" of economic Jimmy Carter's policy was based on the demand theory.
THE SUPPLY THEORY, as yet untested in American economic policy, is based on letting the free market work and allowing individuals and businesses to function with fewer government regulations. People will work harder and produce more if given more money the theory holds.
manipulating the demand for goods in the economy by tax breaks and government spending. Thomas Weiss, professor of economics, said.
The demand theory is based on
Redwood said he supported the reason because the old way simply did not work.
"I think and hope that is a major turning point in economic philosophy," he said.
Wless, however, was more skeptical. "There is no evidence that the man who said he has been speaking," he said. "Is a hypothesis and Reagan is going to make a grand test of it."
RONALD OLSEN, professor of economics, said the idea that people would work harder if given more money was "mystical."
As for cutting the government budget, Olsen said it was not necessarily good.
Weiss agreed, and said, "Overall, I am not in favor of cutting government because somebody thinks it's too big."
Morris Kleiner, associate professor of business, said he supported the reduced budget.
Kleiner said he agreed with the tax cuts to individuals and businesses
"A balanced budget will relieve pressure on the Federal Reserve Board and our money supply," he said.
because of the allocation of resources toward the private sector.
The idea behind Ragan's tax cut is that people will save the money. Then they can invest their earnings and savings and loan associations—will invest these extra funds into business.
ALSO, SOME OF THE TAX savings may be used to purchase more consumer goods.
All of the faculty members interviewed supported the idea of dereginating business.
Weiss said that he favored some of the decontrols proposed by Reagan, but that some regulations were necessary
and should be kept. He cited safety rules that protected workers as an example.
"I don't think it is a good idea to blanket cut the controls that include those safety controls," he said.
KLEINER SAID THAT trends toward the deregulation of the airlines and trucking companies were long overdue.
Reduced spending plan to eliminate CETA jobs
He said the deregulation actually started with Carter but Reagan was speeding up the process.
By KARI ELLIOTT
Staff Reporter
Overall, Reagan's plan was viewed by the faculty as "better than nothing."
Staff Reporter
The CETA job program will be eliminated because of President Reagan's plan to reduce federal spending. The consumer affairs office said yesterday.
"CETA will be a thing of the past by Oct. 1," the director, Clyde Chapman, said. "Reagan didn't talk about the prodirectly, but referred to it by Iffron."
During his national address Wednesday, the various offices that administer grants.
"Consumers won't feel the effect of the cuts in those agencies right away," the shmpman said. "The average consumer will not even know what these agencies do."
Chapman said the regional commission offices would be cut first. The FC regional office is in Denver and the CPSC office is in Kansas City, Mo.
The Reagan administration wants to limit the regulatory power of the agencies to decrease the number of product recalls and bans.
"There is a possibility that the plans will change the attitude of the people, and maybe businessmen won't raise prices," Weiss said. "He (Reagan) would get a pretty good grade in economics class."
"Fewer restrictions on industries will free up business enterprise," Chapman said.
FTC regulations are subject to congressional review, but CPSC regulations are not.
involved in are fair debt collection, fair credit and truthful advertising claims.
"The government has been trying to weaken the FTC for some time," Chapman said. "It's doing good work, but some officials think it needs to focus its attention on more 'worthwhile' issues."
"The FTC worked with the Interstate Commerce Commission when some household movers were ripping off consumers." he said.
SOME ISSUES the FTC has been
The FTC also has tried to regulate the TV programs in children's television programs without success.
"There are always some toys or appliances the agency is investigating," Chapman said. "Now the agency has taken the safety of our formaldehyde."
The Consumer Product Safety Commission deals with product liability and safety.
Urea formaldehyde is a foam used to insulate houses.
"If the ban goes through, it will totally change the insulation industry and those who install it."
"People who had the insulation in their homes were developing respiratory disorders," he said. "If the insulation wasn't dried properly, it could produce fumes making people wheeze and giving them headaches."
The CSPC regulates products by setting product standards. Then it can recall or ban the product if it does not meet the standards.
"You have to read between the lines, but CEA is outta it," Chapman said. "Reagan can't dismantle it without a congressional order, but he can put a
freeze on hiring long enough that the program will die."
CETA is the Comprehensive Employment and Training Act of 1973. The federally funded program provides training and employment opportunities for economically disadvantaged, unemployed or underemployed people.
TWO FEDERAL REGULATORY agencies, the Consumer Product Safety Commission and the Federal Trade Commission, also face budget cuts.
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The Sanctuary is inviting you to join us in a very special dinner treat on Saturday, February 28th.
The Menu
- One 11/2 lb. live Maine lobster
- Baked potato, sour cream, chives, butter
- All the boiled shrimp you can eat
For reservations call:
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- Young peas nested in an artichoke bottom with sauce
- Total cost for hors d'oeuvres and dinner (feast) is ONLY $15.00 (plus tips)
- Spinach salad with mushrooms and a special garlic toast
9:30 am-6:30 pm
Mon-Sat at 843-O540
-Confirmed only by advanced payment before Wednesday, February 25th
-75 person limit
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Weds. 25: Lynch & McBee Band
Fri. 27: Ruby Starr and Limousine
Sat. 28: The Glory Boys — FREE
Food available
EXPLORING CHINA
July 13-August 9, 1981
SUMMER SESSION 1981, ALC 590
opics in EALC: EXPLORING CHINA
This unique summer session course, with both undergraduate or graduate credit, offers an unparalleled opportunity to study the living culture of Modern China—by actually being there! My wife and I, who will lead the class and discussions en route, have lived half years. For the last 15 years, I have taught Chinese language, history and culture at KU.
We are certain this will be a most memorable and informative course and tour. For all details—literary and special features—call or write me for a tree descriptive brochure.
Carl Leban
Associate Professor
FALC
EACLL
Coral Laban
1207 W. 39th Court
Lawrence, KS 64044
(913) 843-2915
864-3100
Please send free brochure: EXPLORING CHINA.
Name
Address
City St. Zip
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20 Days—11 Exciting Cities
• Daily tours —
• Informed discussion —
• Chinese-speaking tour leader —
• College credit available! —
$3,195 from San Francisco
28 Days—11 Exciting Cities