THE BATTALION
THURSDAY, OCTOBER 26, 1978
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A look at the president's
of anti-inflation
program
United Press International
WASHINGTON — President
Carter’s anti-inflation program at a
glance:
Voluntary Pay Standard — An
nual increases in wages and fringe
benefits should not exceed 7 per
cent. Workers under already-signed
contracts, or those earning less than
84 an hour, would be exempt.
Standard applies not to individual
workers, but to the average within
these groups: management, em
ployees covered by labor contracts,
other employees.
Voluntary Price Standard — In
dividual firms should limit price in
creases to 0.5 percent below their
average annual rate of increase dur
ing 1976-1977. If they cut wages
more than a half percent in 1976-77,
greater price deceleration will be
expected. Standard applies not to
specific products, but to a firm’s av
erage price. Firms unable to meet
this standard must demonstrate that
their before-tax profit margins are no
higher than in the best two of the last
three years.
Real Wage Insurance — Carter
will recommend to Congress that
groups of workers, who meet the pay
standard, receive ofiFsetting tax re
bates “up to some reasonable limit,”
if inflation exceeds 7 percent.
Federal Budget — He plans to cut
federal spending from its present 23
percent to 21 percent of the gross
national product by 1980, a year ear
lier than planned, and cut this year’s
$40 billion federal deficit to $30 bil
lion or less in the next fiscal year.
Regulation — A council will be set
up to review environmental and
other regulations in hopes of reduc
ing their inflationary effects while
still meeting their objectives.
Chemical
Engineering
Chemistry
Compliance — The program is
“voluntary,” but the government can
encourage compliance with tools at
its disposal, including limiting gov
ernment purchases to firms observ
ing the standards.
National Starch and Chemical Corporation,
one of the fastest growing “specialty chemi
cals’’ companies and a recognized leader in
its field, has unique opportunities offering ex
ceptional career potential for Spring graduates
majoring in the above.
Please visit our Representative
on November 9
U.S. ends air controls
If unable to attend please send your resume to
Richard Ranieri, Coordinator, Employment/Training
United Press International
WASHINGTON — President
Carter has jubilantly signed the end
to 40 years of federal control — and
urn from tiy protection — of the airlines, and car-
h,,: ■
riers were poised Wednesday for an
“Oklahoma land rush” scramble to
claim idle air routes.
Representatives of more than a
dozen carriers have camped in line
outside the Civil Aeronautics Board
for a week, day and night, rain and
shine, through heat and cold, to reap
this first reward of the airline deregu
lation bill.
CAB officials said they would be
admitted Wednesday morning —
some trying to hang onto nonstop
routes their lines have not used,
others seeking to take over routes
their competitors no longer serve.
The first carrier to ask for a specific
dormant route will get it, but each
must serve all the routes it requests.
United Airlines, the nation’s
largest carrier, was first in line.
CAB Chairman Alfred Kahn, who
fought for deregulation and now is
being sought by Carter as the na
tion’s top inflation fighter, laugh
ingly told reporters at the signing of
the deregulation bill Tuesday the
scramble for unused routes would be
like “a second Oklahoma land rush.”
The route rush was only the first
sign of increased competition the de
regulation measure is designed to
produce. Carter, in a jubilant signing
ceremony, said it also would fight
inflation, promote low fares and
njm open the way to the creation of new
airlines.
of existence after 1984.
Airline officials cautioned against
expecting major improvements in
non-stop service as a result of the
competition for unused routes. Al
though there are thousands of cities
between which airlines have sus
pended non-stop service, they said,
only a few hundred are financially
attractive.
i-iicnaro namen, L/Oorom,
starch and chem
(
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The new law phases out federal
regulatory activities dating back to
1938, including protections against
competition and exemptions from
antitrust laws.
It authorizes airlines to cut fares
by up to 50 percent without prior
CAB clearance, or to raise fares by
up to 5 percent on “competitive”
routes. Carter said this would let mil
lions of Americans afford to fly for the
first time.
It allows each airline to pick one
new domestic or foreign route with
out prior board approval each
January for the next three years, and
makes it much easier for new airlines
to be formed.
And it will phase out the CAB in
three stages through Jan. 1, 1985,
leaving airlines subject only to safety
regulations and antitrust laws after
that date. First the board will lose all
authority over routes after 1982,
over fares after 1983, and will go out
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