University Daily Kansan, October 29, 1980 Page 9 10 ce) Nicaragua faces changes after Somoza years Bv IAN SIMPSON Staff Writer The tempest of revolution that toppled Nicaraguan dictator Anastasio Somalia from power last year transformed the face of the nation. But what these four young leaders take on in Congress, American society, according to a KU professor. "The revolution has permanently changed it," Charles Stansifer, professor of history and director of the Center of Latin American Studies, said this week. "Nicaragua will never be the same." Sansifer spent two weeks last May and the month of September in Nicaragua studying the results of the overthrow of Somoa in July 1798 by a regulation directed by guerrillas of the Sandinista National Liberation Front. **SOMZOA FLED into exile, first to Miami, Fla., and then to Paraguay. He died last month in Asunción at the hands of assassins armed with machine guns and a bazooka. The Sandistas, who fought to end the Somoza family's four-decade domination of the country, are now in complete control, Satisfain said. A five-member junta acts as the executive, but the real power lies in the nine-man Directorate of the Sandinista Party. Nicaragua's major party be said. The members of the Directorate, the junta's chief lieutenant, Somoza and wear combat fatigues in public appearances, run the junta and, through it, the nation. "The Sandistas are the only party that counts in Nicaragua," Stansifer said. "Everybody in Nicaragua knows they don't want to pay policy and the government carries it out." "It's like the communist Party in the Soviet Union. The party doesn't run the government, but all the positions are filled with party members." The junta has announced there would be no elections until 1985, explaining that after decades of dictatorship, the country was not ready for democracy and it became a waste of the people's time and effort. "There was a lot of muttering about it—Is this why we fought Somoa?" Stansifer said. "There are billboards up saying, 'The people have already voted. You are going to vote elections.' I don't have much confidence there are going to be elections in 1985." THE SANDINISTAS oversee all radio and television stations, and most of the nation's newspapers. They have established Sandinista Defense Committees as neighborhood watchdog groups to deal with community complaints and "to keep an eye on those who would threaten the revolution," he said. The Nicaraguans have about 6,000 political prisoners, most of them low-ranking members of the National Guard who fought against the revolution. There were some summary executions after Somoza went into exile and eventual assassination in Paraguay, but most prisoners have been sentenced to lengthy terms at hard labor. Stansifer said. The Somoza family, at the time of the revolution, tightly controlled the national economy for its own benefit. There has not been an accurate accounting of the Somoza fortune, but estimates range from $300 to $500 million. The Somoza dictators' first act after taking power was to nationalize the family's holdings and to try to establish a mixed economy on socialist lines. Stansfer said that the new government had taken control of "the commanding heights of the economy" such as railroads, shipping, airlines, telephone, insurance, banking and utilities, and that the "lesser parts of the economy" remained in private hands. Inflation can benefit government,prof says BV DALE WETZEL Staff Reporter *Inflation, a major aliment of our country's economy, is a problem that government officials might encourage employers to burns. An instant professor of economics Burns was one of four members of the KU department of economics faculty to speak at a KU Economics Club forum, Campaign Rhetoric and Economic Reform afternoon by about 100 people yesterday afternoon in 411 Summerfield Hall. In certain ways, inflation is beneficial to the government, Burns said. The federal government collects a certain percentage of personal income as taxes, based on earnings brackets scaled to specific dollar denominations. The state's government also evens with inflation push individuals into higher tax brackets, forcing them to pay higher percentage of their income as taxes, when real income may simply be keeping pace with inflation. This means they receive revenues for Uncle Sam. Burke said. Republican presidential candidate Ronald Reagan's proposal to link the inflation rate to the income tax brackets would prevent this, Burns said. Acting assistant professors Mary Zimmerman and Terri Erickson and professor Harry Shaffer also participated in the discussion, which examined the role of financial tax to the effects of a balanced budget on the U.S. economy. Zimmerman said that the president, as head of the government, could make a significant difference in government policy against inflation. FOR EXAMPLE, she said, the legislative branch has the power to raise tax revenues, thus taking spendable income out of consumers' hands. It can also impose regulations on industries that would affect mass economic behavior. Also, the Federal Reserve Board can regulate the money supply, the key element in controlling inflation, she said. Although the president cannot directly control either of these two bodies, he can strongly influence them politically. Zimmerman said. The government normally strives for two basic goals: full employment and economic growth. The government can try to create full employment by raising its own spend increase in government spending or raising its spending of consumers or firms by cutting taxes. This injects BURNS, SPEAKING NEXT, explained Carter and Reagan's differences on a windfall profits tax and the personal income tax. more money into the economy, Zimmerman said, increasing the amount of money that banks have to lend or that people have to spend. Reagan opposes the windfall tax, but Carter regards it as a major legislative burden. "The most important thing you need to know about the windfall profits tax is that it's not a tax on profits," Burns said. "I'm not exactly clear on what it is, it's easier for me to state it, it's easier that it's not a tax on profits. "And, in particular, it's not a tax on the profits of the major oil companies because they are not involved." Burns said he thought that the windfall profits tax was most closely akin to an excuse tax, or a tax on a specific industry, namely domestic crude oil production. "If you want to increase the production of something, it's incredible to think that you can do so by taxing it. But not the way it is done." Burra said. He said the tax would cut production of domestic oil, increase U.S. dependence on imported oil. prices Americans paid for petroleum products. Burns said it was hard to predict the effect of Reagan's proposed 30 percent tax increase. HOWEVER, HE said that in the absence of a tax cut, the taxes that most Americans pay would eventually go up because of the effects of inflation pushing people into higher tax brackets. A scheduled increase in Social Security taxes in 1981 also will increase taxes, he said. in the absence of a tax cut, the government will receive greatly increased revenues in the next couple of years. Burns said. These revenues, Erickson said, should make it easier to balance the budget, but a balanced budget is often not the panacea it is purported to be. "In 1990 our deficit was $5.1 billion and the inflation rate was 5.8 percent," she said. "The next year, 1951, there was a $2.7 billion increase, but the inflation rate was 9.9 percent." "In 1978, the deficit was $4.8 billion, and the inflation rate was 9 percent; in 1979, the deficit was cut to $27.7 billion, and the rate was 13.3 percent." In response, Thomas Weiss, professor of economics, jokingly remarked, "we should all go out and play. They who promises the biggest deficit." Lindley will undergo facelift; contract awarded to local firm Lindley houses the departments of and geography and meteorology. A contract for partial renovation of Lindley Hall was awarded to Harris Construction Co. of Lawrence last week, according to Allen Wiechert, University director of facilities planning. Total construction cost of the renovation is $2 million, partially provided by the Kansas Legislature. Harris Construction Co. was $1,519,855. *Renovation is scheduled to begin around Dec. 1, Wiechert said, and will be -completed during the spring of 1982, with building will be occupied during renovation.* Plans for the renovation include upgrading the elevators and restrooms, installing central air conditioning and handicapped at the back of the building. The new ramp would provide an entrance to the lower level of the building. The building now has a ramp leading up to the front of the building to the main floor. In addition, the areas on the lower floors of the building that were occupied by the Kansas Geological Survey and the department of chemical will be remodeled for use by the geology and geography departments. The Kansas Geological Survey moved to Moore Hall on West Campus in 1973, and the engineering department moved into Learned Hall in 1976. New laboratory furniture for the rooms will be supplied by Hamilton Devoted to our Community That's the difference Paid for by Eldedge for Senate Committee. Kurt Watson, Treasurer SPECIAL SALE For Men & Women PERM-$30 Reg $35 (Includes Cut and Set) HAIRCUT-$9 (Includes Shampoo and Blow Dry) PROFESSIONAL CURLING IRON $8.95 Reg $12.95 Located in Mall's Shopping Center --- 711 W. 23rd BLANE'S Paid Pol. Adv. 842-1144 Jessie Branson is aware that a major concern of the Lawrence community is a healthy state of the University. Jessie and her husband, Dr. Vernon Branson, are both graduates and enthusiastic supporters of KU. As your state representative, she will work actively in behalf of the University of Kansas. KU Is a High Priority. A Proven Commitment . . . to the Community and the State Jessie BRANSON REPRESENTATIVE 44th Branson for State Representative Ben Zimmerman, Treasurer A paid political advertisement The Nicaraguan economy, ravaged by revolution and suffering from Somoza's depredations—the dictator emptied the treasury before he fled the country—has put its hopes on in-kind production, especially in agriculture. AGRIZOA'S FARMS and ranches were not distributed to peasants for private cultivation, but remained intact to be farmed as collectives, in line with Somoza's practice. "They look at it like Somao did—the more production the better." Stansifer In September, President Carter approved a $75 million loan to Nicaragua. His approval came despite the complaints of congressional conservatives that Nicaragua was aiding revolutionaries in El Salvador which suffers from increasing violence from the insurgents in other parts where there is growing Indian unrest about military oppression, and in Honduras. "They desperately need it. If they are going to carry out the revolution for the rest of their lives, they will have to." "They haven't broken the ties of dependency to the developed world," he said. "They are really dependent on the systems we need, and won't admit it, even though they hate it." Despite the violent anti-American rhetoric of some members of the Directorate and the junta, Nicaragua desperately needs help to keep the economy intact and to maintain the revolution. Stasier said. outside help. They would jump through boots to ret aid." AMERICAN MONEY has helped a literacy campaign that the junta says has dropped the illiteracy rate from 50 percent to about 12 percent. Mexico and Venezuela subsidized Nicaragua's oil imports, and Cuba sent 5,000 advisers—including doctors, military personnel—to help the country rebuild. The Cuban presence concerned some American foreign policy makers, who worried about Nicaragua's emulation of the Cuban socialist model, and the Cuban government, which is export their revolution to the dictatorships of Central America. Stanisfer said the Sandinistas were giving moral support to revolutionaries in Guatemala and in El Salvador, but no arms or advisers. "Revolutions aren't generated from abroad; they are generated from inside. Nicaragua and its experience in Central America are examples of this. But revolutionize is not going to revolutionize El Salvador or Guatemala or Honduras." "There is a lot of sloganage about 'Nicaragua won and Guatemala will win' but little else," he said. They were not so hard to tell until they themselves are consolidated. Nicaraguans think the results of the American presidential election would have little effect on relations with the United States, although a Reagan presidency would be a difficult one with which to deal, Stansifer said. 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