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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Feb. 16, 1979)
Id 11 Afc )e Iloilo Kont, r, ‘oldliiip. ' three 'iddenS ear d a Sii he’d lx, and was in h. 1 where n r own hn 'tcordine d. Becau >d, relati' n the hoi r meals, irked style,toward 9 percent, Ms step fe ety for lost veils be'fff. would ma; ies affecfc conduct^ tors inten 'ery eager frustrate! >d chemifi a Harvsi it e lowanJ: ie hospilt tal o be be: ntral <ept his loctors )n the tests t tal faci e, to lean because nous fluid ■boiled« way you s wits out ht to see /ho was mine her rbade ) he sent looked at Failure to meet wage and price guidelines % may bring American recession — economist THE BATTALION FRIDAY, FEBRUARY 16, 1979 Page 5 Flood ruins imported wine, 2,500 bottles destroyed By BONNIE HELVVIG Battalion Reporter Americans may enter into an eco- , omic recession this summer if m and price guidelines set by ‘resident Carter are not met, an AFL-CIO economist said at Texas A&M University Thursday. P Speaking on “Labor’s Concerns d Issues Within the Economy,” Bill Cunningham told SCON A 24 delegates that the guidelines fail to joverthe major causes of inflation. The biggest problems are in ie alth care, food and energy costs, diich have risen the most in the last [wo years, he said. We have a situation where infla- ion has been 8 percent for the past two years and we are now moving ■ ” Cunningham said “If interest rates aren’t lowered, redit is not increased, or if gov- jmment spending on job programs not cut, we will definitely move into a recession,” he said. The AFL-CIO has recommended a full-fledged program of economic control, Cunningham said, covering all forms of income such as divi dends, rent, professional fees, plus wages and prices. We did not favor this program after the recession of 1974 caused by the wage and price controls, but we feel strongly that we must have a mandatory program,” said Cun ningham. The U.S. trade policy has also ad versely affected the economy, he said. The United States reported a $26 million trade deficit last year which he said was proof of a failing trade policy. “Jobs are being lost because the import of goods are coming in so rapidly and flooding the markets,” said Cunningham. Cunningham said some foreign companies can operate at 1 percent profit, he said, due to federal sub sidies from their own governments to undermine the U.S. market, living, will decrease it.” United Press International COLORADO SPRINGS, Colo. — Imported wine, 2,500 bottles worth, has been lost to wine lovers and a local landfill. A flood last July at the Broadmoor Hotel’s cellar soaked the bottles of wine, worth $20,000. The El Paso County Health Department embar goed the bottles and the Federal Food and Drug Administration or dered the destruction. But Cunningham said Americans were still more productive than German or Japanese competitors, according to a study done by a Ger man bank. “The Japanese rate of produc- Bill Cunningham tivity is increasing about 6.5 percent each year, while we are increasing our output by only 2 percent in the 1970s.” Cunningham said that countries like Germany and Japan are far be hind the United States in technolog ical advancement but are gaining rapidly as their growth rate in- Banker tells SC ON A group inflation, unemployment have no easy solutions By ERIN BECKERS Battalion Reporter There is no obvious solution to in- and unemployment, a Dallas inker said in a speech Thursday af- >rnoon at a session of the Student tern is less efficient. It is not as easy to determine relative prices in an in flationary period, which tell us where to spend money and what to produce, he said. Burns listed four phases concern- Dr. Joseph E. Burns ing the relationship between unem ployment and inflation. The first, which he called a theoretical notion, is that there is a “permanent trade-off” between the two. Phase two states that the tradeoff between the two is only temporary. Burns said if policy makers at tempt to reduce the unemployment rate by stimulating economic policy, unemployment will only decline for a short period of time. “The adjust ment period brings uncertainty,” he said. In phase three, the higher rate of inflation pushes the unemployment rate higher and does not return to the original rate of unemployment. “So efforts to reduce the unemploy ment rate by stimulative monetary fiscal policy are not actually counter productive. They lead only to a higher rate of inflation, which in turn leads to higher unemployment rate than would exist if nothing had been done. Phase four does not acknowledge that there is a relationship between the two and is known as the “ra tional expectations theory.” Burns mentioned this fourth phase briefly “only for completeness. int or she! inference on National Affairs; aid. We ll probably continue to iuddle along much as we have with standard of living slowly being roded,” said Dr. Joseph E. Burns, :nior vice president of the Federal eserve Bank of Dallas. Economists can’t even agree nong themselves, so not only does tke man on the street hear one story |e doesn’t understand, he hears two (irthree,’ he said. Burns’s speech, “The Inflation- nemployment Problem, ex- lained the basic causes of inflation Jnd its relationship with unem ployment. The results in the research done fi this subject are neither definitive [r a unanimous agreement. It’s the pisunderstanding of the problem vhich allows the problem to per- ls h Burns said. The goal for the average citizen of ie United States is the highest pos- We standard of living, he said. ^Reduced levels of unemployment Pprove standard of living, he said, smaller amount of goods pro- the blast'freed, less income is generated. Las Vegasfress pie has been produced to be st was cwfrtributed among the same number I* People.” maxinui®jWhen speaking on inflation, 150,000fr u ms said, “Unexpected changes in Inces are costly and disruptive to ntsofatrtC e economy. Expected rates of in- i which pjjf at ' 0n can be planned for and can d testinjlfr USe little disruption. He said the srvedten®!.Expected change causes an in- :h of l9^ t p r eiise in uncertainty, n ratifi^E ”' s uncertainty causes the busi- A e ssman to spend more time trying P e dge against inflation and less Me toward his business.” ouseholds also attempt to hedge fnst inflation. Burns said. “They ac e more of their wealth on 10us es, durable goods and real es- elied on said wit uh ltd r ad national » v , — Si :ed the f :ar test wl n 20 detonated om of a 1 e Nevada!' FOSTER STAINED GLASS STUDIO Largest Selection of Stained Glass Supplies Etching Workshop Saturday 9-12 (Call to reserve your place) 2801 S. College 779-5864 M-Sat. 9:30-5:30 MANOR EAST 3 FRI.-SAT. MIDNIGHT WELCOME TO THE 23™ CENTURY. The only thing you cant hove in this perfect world of total pleasure is your 30th birthday. icluding ound ki* ie helic°P ! ; camera d with s| levices °f Eneifre lather than financial assets, ati0D*|l as deposits, stocks and bonds. dh the reduced incentive to Ve - a nd invest- c\/s- Logon is 29. 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