Tuesday, October 24, 1978
University Daily Kansan
Carter's economics seen as nothing new
WASHINGTON (AP) -The country has been down "that very familiar road" before, General Electric Chairman Reginald Jones says of the upcoming Carter anti-inflation program. And he's absolutely right.
There is nothing in the program—expected to be unveiled by the president in a nationally televised speech tonight—that hasn't been tried before.
Administration sources say Carter will announce guidelines for wages and prices, not unlike the anti-inflation approach taken by former President John F. Kennedy in 1965.
Inflation was 1.2 percent in the first year of Kennedy's guidelines, and is about 8 percent now, reflecting a steady worsening of inflation in five administrations to bring it under control.
SOME CRITICS of Carter's program say he is taking a path that inevitably leads to mandatory wage and pressure controls, even when use pays off to disavow any intention of using tools.
Carter has tried several approaches to inflation in his 19 months, office, each a
little tougher than the last. But inflation has
gone from 4.8 percent in 1976 to 8.8 percent
last year and an expected 8 percent this
year.
Both business and labor leaders wish Carter wouldn't resort to guidelines, but they realize he must do something. Some of Carter's closer advisers are among those who doubt the guidelines approach will be any more successful than Carter's previous
AIPLI-CIO President George Meeny, labor's top spokesman, publicly says the guidelines approach is certain to work with unions. But he would prefer mandatory controls.
Here, in brief, is a summary of the various anti-inflation actions and programs by the last five administrations, starting with Kennedv:
In 1962, following a year in which consumer prices increased only 0.7 percent, concern over potential inflation prompted policymakers to increase price guidelines linked to productivity.
IN A 1975 analysis of the Kennedy program, Congress' Joint Economic
Committee said the guidelines generally were successful in the short run, with inflation of no more than 1.6 percent in a single year.
But in 1985, with the war in Vietnam and President Johnson unwilling to raise taxes to pay for it or for his "Great Society" programs, budget deficits and prices rose and inflation became serious for the first time since the Korean War.
Johnson belatedly recommended a tax increase for 1967 and supported voluntary wage and price standards for business and labor.
Inflation went from 1.9 percent in 1965 to 4.7 percent in 1968. Economists now think Johnson erred in not raising taxes. The Federal Reserve Board made about the only anti-inflation move, tightening the money supply and reducing interest rates despite Johnson's objections.
RICHARD M. NIXON took over in 1969 with inflation worsening, and he turned to using the program's calculus. But the approach did not work, and inflation hit 6.1 percent in 1969 and 5.5 percent in 1970.
Finally, on Aug. 15, 1971, Nixon surprised
The program succeeded in holding inflation to 3.4 percent in both 1971 and 1972. But after controls were relaxed in early 1973, prices soared again because of pent-up demand for pressures, and Nixon declared a new 60-day freeze in June, thus on time prices on ice.
ANOTHER CONTROL program followed as instruction for the year reached 8.00 percent.
Nixon's approach then was to slow the economy by raising interest rates and tightening the money supply. The ex-merger of large airlines upward pressures on both wages and prices.
the nation by imposing a 90-day wage and price freeze and then introduced the most elaborate controls program since World War II. It required every union wage increase and big business price increase to be approved by the new Cost of Living Council.
the administration decided controls were not working and lifted them.
However, the economic slowdown was not successful and the economy sank into the 1974-75 recession, the longest and deepest since World War II.
GERALD R. FORD took office in 1974 and ...themed the much-scatted wi-Whip Infiration Now, or "WIN", program. It was voluntary. Inflation eased in the aftermath of the record 1974 price burst, dropping to 7 percent in 1975 and 4.8 percent in 1976.
Economists now agree that the recession was the chief factor in slowing inflation, not the WIN program, which was soon abandoned. A serious still was regarded as a serious problem.
Su Casa
Gift Shoppe
Holiday Plaza—Phase II
2140 W. 25th St.
841-3552
His approach from the outset was to encourage voluntary wage and price guarantees.
Although Carter took office in 1977 declaring he wanted steward authority to impose mandatory wage and price controls, he also resisted such authority, and he doesn't have it now.
There will be a Pre-Med meeting Tuesday 7:00 P.M. in the PINE ROOM of the Kansas Union. We need volunteers to assist Dr. Balfour of the Biology department in administering a blood pressure experiment. More information will be supplied at the meeting.
Partially funded by the Student Senate.
...
TO ALL INTERESTED PRE-MED STUDENTS!
USE YOUR PEOPLE BOOK
Engineering, Computer Science & Technology Majors WATCH FOR THE HUGHES RECRUITER VISITING YOUR CAMPUS SOON.
Contact your placement office for interview dates.
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AN EQUAL OPPORTUNITY EMPLOYER M/F
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CALL 842-1826
Dabil's restaurant
A new food service in Lawrence offering the finest cuisine with a personal touch. But Nabil's offers more than fine food. You'll also find a place to unwind, to get away from the fast food race. Bring a friend . . . you won't find hamburgers or pizza, but we think you'll prefer superb food in a comfortable atmosphere. Luncheon specials . . $2-3.
For Starters
ntrees
Polynesian Salad
Frittata
Soup and Quiche ... 2.50
A fresh creation daily ...2.95
1 ...
The Italian omelette with tomato, cheese, and
Romea lettuce with baby shrimp, mushrooms, garbanzo beans, and
aadanad baron ... 3.25
Srinach Salad
Fresh garden spoon tussled with mushrooms, eggs,
creouts, and our own waxy herb dressing . . . 2.95
kromine lettuce with baby shrimp, mushrooms, garden beans, and bean sprouts in a curried dressing...3.25
Cold Vegetable Tart
A delicious combination of garden fresh vegetables with a bowl of dill
dressing: 2.50
Thousand Island Grille
Thousand Island Grille
Collected olympic kniled with muntrey jack cheese, corned beef, bean
crème poudrée* pink with bimonthly jack cheese, corned beef, basil sprouts and thousand island dressing...2.95
The Nabil
Tasted potato bread topped with ham, smoked turkey, tomatoes and
Iasted potato bread topped with ham, smoked turkey, fontina and a special cheese sauce ... 3.25
Grecian Tortoise Cream, lauched with turkey, beef, ham, Canadian bacon, cheeses, and eggs.
Crepes layered with turkey, beef, ham, Candida bacon, cheeses, and eggs and topped with a curry mayonnaise sauce. Served with salad ... 3.75
BEER KABOBS Marinated beef broiled on a skewer served with rice pilaf and a
Marmalade beet brushes on a serrated wire pipe and a tomato herb sauce. Served with salad 4.50
Chopped Sirloin Steak
With garlic, butter. Served with salad ... 3.50
Applesauce With garlic, butter. Served with salad . . . . . . . . . . . . . . . . . . . . . . . 3.50
Broiled Fillet, Mignon
With steak butter. Served with salad ... 5.95
Chilled Roast Tenderbin Platter ...
Cold beef dinners are served with Asian sauce, garlic, basil, onions, and our special dill mayonnaise sauce. Served with salad ... 4.25
Beef Cantonese
Pieces of beef tenderloin in a dark wine and crispy vegetable sauce
Fries in beer battered in a dark sauce and crispy vegetarian saus.
Served with salad ... 4.25
The famous Greek eggplant casserole layered with meat and topped
Chicken Picata
Banana breast of chicken dipped in a gravy creamy butter salad, served
then served over a lemon supreme sauce. Served with salad . . . . . . . 3.50
Sauteed veal cutlets with a sour cream, white wine and dijon mustard sauce
Served with salad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.25
farmers market tomatoes in a delicious cream sauce Served with salad ...3.95
With lime butter. Served with salad ... 4.25
Fortified
Sea scallops simmered in sherry wine and bacon
Seasoned with salad ... 4.50
Trout
Beautiful trout cooked in butter with lemon and carrot.
Brittlelets the balanced in battery with a hole top cap
wrapped with solder ... 4.95
Filet of Sole
Sauteed sole complemented with butter, lemon and almonds
Served with salad ... 3.95
Nabil's - 925 Iowa - Hillcrest Shopping Center next to the theatre - Phone 841-7226