NATION
University Daily Kansan / Wednesday, March 4, 1992
7
Reports indicate signs of new life in economy
The Associated Press
WASHINGTON — Reports of a big jump in the government's main economic barometer and a surge in new home sales suggested yesterday that the economy has begun to perk up.
President Bush, under attack from presidential candidates from both parties for his handling of the economy, welcomed the reports and said, "It's nice to have some encouraging news."
But analysts agreed that any recovery would be anemic, unlike the robust revivals that came after most other post-World War II recessions. And Federal Reserve head Alan Greenspan cautioned that "extraordinary forces" still made the future uncertain.
Economist Sung Won Sohn of the
Norwest Corp. in Minneapolis, said: "It looks like the economic recovery is under way. It will be a very modest, gradual one."
The Commerce Department said its Index of Leading Economic Indicators jumped 0.9 percent in January after two straight declines. Seven of the 11 forward-looking statistics posted gains, led by soaring stock prices.
The index is designed to forecast economic activity six to nine months in advance. Three consecutive declines are viewed as a fairly reliable — although not infallible — signal of an approaching recession.
The report also showed that the November and December drops were not as sharp as previously thought. They were revised to 0.2 percent for each month from the 0.3 percent declines originally estimated last
Gordon Richards, an economist with the National Association of Manufacturers, said the report was consistent with other evidence pointing to a gradual recovery in the second quarter.
month.
For the year, the Bush administration and many economists are forecasting growth of just 1.5 percent compared with an average of 6 percent in the first year of recoveries from other post-World War II recessions.
In a second report, the departments of Commerce and Housing and Urban Development said sales of new homes shot up 12.9 percent in January, the steepest advance in a year. It was the third increase in four months and more than wiped out a 4.6 percent decline in December.
Senate committee OKs tax bill
The Associated Press
WASHINGTON — Brushing aside veto threats, the Senate Finance Committee yesterday approved a $300-per-child, middle-income cut that would be paid for by raising taxes on the wealthy.
The bill includes a capital-gains reduction, liberalized Individual Retirement Accounts and investment incentives that President Bush proposed to stimulate the economy.
About 20 million families would get the permanent tax cut. Fewer than 1 million of the wealthiest Americans would have to pay more taxes.
The party-line vote was 11-9. Senate consideration is expected next week
"I hope the president will work with
us, not obstruct the process," *Finance Committee head Lloyd Bentsen*, D-Texas, said as the committee began work on the bill. "But if we want to continue to protect the wealthiest at the expense of average Americans—and veto this bill because it asks 0.7 percent of the wealthiest to pay their fair share—that's his choice."
Bentsen proposed the bill
Bush said he would veto any bill that raised taxes, even though his own budget called for tax increases this year.
Outnumbered Republicans on the committee washed their hands of the bill and urged Democrats to do what they had to do quickly. Send the measure to the Senate to pave the way for a Bush veto.
"Democrats appear intent on raising taxes while doing nothing to improve competitiveness and productivity," said Sen. Bob Packwood of Oregon, the senior Republican on the committee.
Majority Leader George Mitchell, D-Maine, said that many Republicans had urged tax cuts in the 1980s. "Now, when Democrats propose to cut taxes, we are told it's politics," he said.
The Finance Committee bill is similar in many parts to the one that Democrats pushed through the House last week. One key difference lies in the principal individual tax cut.
The committee approved only two amendments as it breezed through the massive bill.
The Associated Press
Senator responds to remarks by Japanese
HARTSVILLE, S.C. — U.S.
Sen. Ernest Hollings responded to a Japanese official's recent remarks that U.S. workers are lazy and illiterate with a joke about which country made the atomic bomb.
While praising the productivity of U.S. workers as he toured the Roller Bearing Co. of America plant on Monday, Hollings responded to Japanese criticism by telling workers: "You should draw a mushroom cloud and in underneath it, 'Made in America by lazy and illiterate Americans and tested in Japan.'"
An aide for the South Carolina Democrat later said the senator's comment was a joke and an appropriate metaphor in view of the U.S.-Japan trade war.
"The senator was simply making a joke," said Hollings' aid, Andy Brack. "He's a great admirer of the Japanese work ethic, and he said the way that they're doing business over there is smart. We're not bashing Japan. What we need is competitive trade."
The comment was an appropriate jab at the man who said U.S. workers were lazy and illiterate, Brack said, referring to Japanese Prime Minister Kichi Miyazawa and his comments in January.
Hollings' remark drew applause from the Roller Bearing workers.
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WALT DISNEY WORLD COLLEGE PROGRAM
Walt Disney World Co. representatives will present an information session on the Walt Disney World College Program on Wednesday, March 18, 7:30 pm, in Baily Hall Auditorium, Room 303. Attendance at this presentation is required to interview for the SUMMER/ FALL '92 COLLEGE PROGRAM. Interviews will be held following the presentation. The following majors are encouraged to attend: SUMMER—Business Communications, Recreation, Theatre/Drama and Hospitality. FALL—all majors.
ENJOY MOVIES ON THE BIG SCREEN WITH SUA!
Earn University Credit Through Independent Study
Independent Study is an accredited program of the University of Kansas. We offer courses similar to those taught in residence. To help keep your degree program on schedule,
1) enroll in Independent Study before spring break;
2) set your own pace and your own place to study this semester and during the summer; and
3) complete the course and add the credits to your college degree program.
To enroll in Independent Study or for further information including costs and materials, stop by Student Services or call for a catalog at 864-4440.
Student Services is located in Continuing Education Building Annex A directly north of the Kansas Union.
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