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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (July 23, 1981)
Kigeo The Battalion Viewpoint July 23, By Jim Earle Slouch miozqfilm Ate a ‘Guess who has the microfilm of ‘Playboy’ magazine: French now facing employment crisis By JACQUELINE GRAPIN PARIS — In contrast to the United States, where labor mobility and other fac tors make for a normally high jobless rate, France is accustomed to low unemploy ment. So when joblessness here hits Amer ican levels, the French are facing a crisis. That is the current situation. Official figures show 1.6 million unemployed — four times the number seven years ago. As in the United States, about 7.5 percent of the labor force is out of work. The issue of unemployment was the main subject of the recent French election campaign, and the jobless rate probably contributed to former President Valery Giscard d’Estaing’s defeat by Francois Mitterrand, the Socialist leader. Now, as he did during his campaign, Mit terrand promises to cope with the problem by increasing public jobs, reducing the work week and introducing early retire ment. It remains to be seen, however, whether the French economy can afford such programs. Compared to other European nations, France is in better shape than Britain and Belgium, where unemployment has reached double-digit levels, but worse ofl than West Germany and The Netherlands. Still, conditions here are serious. For the first time since the end of World War II, the number of job-seekers is grow ing faster than employment possibilites. And the near-term prospects are even more unfavorable. Despite chances for an improvement in the economy, experts forecast some 2 mil lion unemployed next year — without any increase in the labor force as a whole. As usual, women and youths are most severely affected. Of the total number ol unemployed at present, 55 percent are women and 45 percent are below the age of 25. Surprisingly, skilled factory workers and office employees have been harder hit than their unskilled counterparts. The highest category among the jobless is skilled white collar workers, who represent 31 percent of the unemployed. The problem can be attributed to an assortment of elements that have caused the current recession. A main element, though, has been the steep rise in oil prices due to the soaring value of the dollar, which has increased in relation to the franc by nearby 40 percent within recent months. As a consequence, French business activity has slowed down drastically, throw ing workers out of jobs. Coping with unemployment has not been a major priority during Giscard’s term in office. His administration had largely hoped to hold the jobless rate in check in the hope that the situation would improve as the ecomomy regained momentum and as demographic changes reduced demands by youths for work. In other words, Giscard had anticipated a “natural” solution to the problem — even though, he realized, it would create hard ships for young people during the immedi ate future. Mitterrand refuses to accept the idea that unemployment cannot be fought more ac tively. The Socialist platform envisages 210,000 new jobs between now and the end of next year, most of them in government health and welfare projects. Beginning in 1983, the Socialists say, some 40,000 to 50,000 additional jobs will be open each year. This is supposed to come about in part by shrinking the work week to 35 hours and making retirement mandatory at the age of 60. The Socialists also plan to accelerate training programs preparing youths for jobs. Though their political influence has been curbed in parliament as a result of the strong Socialist election victory, the Com munists may exert pressure through their labor union for their platform, the creation of a half-million public jobs. But even the Communist labor union realizes that the economy is too weak to produce improvement overnight. So far, therefore, it has displayed signs of modera tion. The big question, of course, is how the Socialists intend to foot the bill for their unemployment cure. Bigger government expenditures for public programs means higher taxes that slow down business and reduce job opportunities. The job picture might not have gotten brighter had Giscard been reelected. But it will test Mitterrand’s considerable policit- cal talents — and it may prove to be his undoing. Editor’s note: Grapin writes on economic issues for Le Monde, the Paris daily newspaper. The Battalion U S P S 045 360 MEMBER Texas Press Association Southwest Journalism Congress Editor Angelique Copeland City Editor Jane Brust Photo Editor Greg Gammon Sports Editor Ritchie Priddy Focus Editor Cathy Saathoff Make-up Editor Greg Gammon StaffWriters Bemie Fette, Kathy O’Connell, Denise Richter, Cartoonist Scott McCullar EDITORIAL POLICY The Battalion is a non-profit, self-supporting newspaper operated as a community service to Texas A&M University and Bryan-College Station. Opinions expressed in The Bat talion are those of the editor or the author, and do not necessarily represent the opinions of Texas A&M Universi ty administrators or faculty members, or of the Board of Regents. The Battalion also serves as a laboratory newspaper for students in reporting, editing and photography classes within the Department of Communications. Questions or comments concerning any editorial matter should be directed to the editor. LETTERS POLICY Letters to the Editor should not exceed 300 words in length, and are subject to being cut if they are longer. The editorial staff reserves the right to edit letters for style and length, but will make every effort to maintain the author’s intent. Each letter must also be signed, show the address and phone number of the writer. Columns and guest editorials are also welcome, and are not subject to the same length constraints as letters. Address all inquiries and correspondence to: Editor, The Battalion, 216 Reed McDonald, Texas A&M University, College Station, TX 77843. The Battalion is published Tuesday, Wednesday and Thursday during Texas A&M’s summer semesters. Mail subscriptions are $16.75 per semester, $33.25 per school year and $35 per full year. Advertising rates furnished on request. Our address: The Battalion, 216 Reed McDonald Build ing, Texas A&M University, College Station, TX 77843. United Press International is entitled exclusively to the use for reproduction of all news dispatches credited to it. Rights of reproduction of all other matter'herein reserved. Second class postage paid at College Station, TX 77843. It’s your turn Patron complains about GTE Editor: GTE in its never ending efforts to pro vide better, more complete service and convenience to its captive customers has flubbed it again. You’re probably wonder ing why anyone would be cricizing GTE just after they installed those marvelous push button phones in all the offices and dorms on campus. Well, besides being a little late (the push buttons were supposed to be installed the first week of the first summer session) and besides the inconvenience many of us in Dorm 11 had to go through when our phones were “accidentally” disconnected for two weeks the main problem is that none of us can call collect from a dorm anymore. It really was nice every once in a while to have the convenience to check up on your folks. Like finding out how your old man was recovering from his latest heart attack or how the dog you grew up with chased a car too close one too many times, little things like that. Sure we could sign up for long distance, that’s exactly what G.T. E wants. We would have to pay a hook up fee, lay down a de posit for calls that won’t be charged to us and then wait another two weeks for them to hook us up. If you think about it, that’s quite a hassle for the three weeks left of summer school. Why do we have to send out a search party to find a pay phone just to make a collect call? Why do pay phones get better more complete service than us? Why can business phones on campus call collect? What makes us second rate citizens? I’d complain directly to the head man agement at GTE but it’s long distance. Richard Berthelsen Graduate Student More about 'Warped' Editor: We would like to add our two cents worth to what seems to be the hottest sub ject of Summer School 1981, the “Warped” comic strip. Granted this is not an earth- shattering subject, but we feel it deserves at least a small amount of consideration. Our first point is in response to Noe Guiterrez’s letter in last Thursday’s Batta lion. We feel it is a student’s right to have comics that are worth reading, instead of ignoring. We also want to endorse C. Gaul- din’s personal judgements of Scott McCul lar s talents, or lack thereof. With regard to the comic strip “Warped ”, we feel it suffers from a severe lack of artistic ability. Due to the poor artwork, we often spend our time with other pursuits rather reading “Warped”. We also feel that many of the daily strips fall short of the intellectual level college stu dents should demand. Obviously, we don’t need a thesis or scholarly report,It ^ “Unicorn lead a horse to water, fOOOOOO can’t make her drink. Manyoftj a fall in the poor taste category alsol t „ ance the strip of July 15 which detj and the molestation which enstiej 210 Unit J———" With regard to that same slip read, "It’s my strip, I’lldowhatlito it, that seems to be a childishad|j< ly selfish attitude for yjju to take.?!; assume your job is to please as mJ 30,000 students as possible. J On a slightly different note,ilf resident of our dorm has hadanii doing some work for the BattalionE told the spot was not open at the! ri of the summer. It would seemth tor could have at least requested) portfolio before making any finalij In closing, we feel that the should have a say in this situation run a few strips from any “new til. see what type of response you re* C. Gauldin said in his leter, “Iti beneficial to lx>th the newspaper readers to either be satisfied wit! comic strip or find someone who# able to do a better job.” * Rid I Don Bfj Damon Cret| Norman I David I Temil Al rThe R Th S&L’s have advantages, risk United Press International NEW YORK — Savings and loan associa tions now have permission to hedge virtual ly all of their assets in financial futures mar kets and that could help the troubled indus try. But the new rule will do nothing to erase current losses and has the potential of adding to the S&L’s woes. Richard Pratt, head of the Federal Home Loan Bank Board, told Congress last week more than 363 of the nation’s 4,542 savings and loan institutions are on the regulatory agency’s troubled list. The S&L’s losses stem from their port folios of long-term, low-interest mortgage loans — some still hold mortgages at 6 per cent — while they are being forced to pay record interest on new money, such as the six month money market certificates. But Pratt believes they can minimize future losses by hedging and he said the industry might be profitable today if the new rule had been in effect a few years earlier. “Certainly over time as thrift institutions become accustomed to commodity markets it should limit their interest rate risk,” Robert Hatcher, senior vice president of the New York Commodity Exchange, said. “It will help them today to deal with the future. ” Indeed the potential for profitability is there but so is the risk of new losses. Under the new regulations, when thrift institutions must pay 141/2 percent interest on $500,000 in six-month CDs, for exam ple, they can take a short position for an equal amount in three-month Treasury bill futures — that is, sell contracts hoping to buy them back at a lower price. If interest rates rise the increase in their interest costs would be offset by a profit in the futures contracts. However, if interest rates fall, any gains they would realize from the drop in their costs would be offset by losses on their fu tures positions. In an effort to inhibit speculation, the FHLBB rules prohibit S&L’s from taking long positions in futures, except in certain cases connected with mortgage banking activity. It allows only the traditional hedge vehi cle of short positions. “The restrictions force the S&Ls to set up a plan for operation in futures with the intent of reducing interest rate risk,” Hatcher said. Susan Kelsey, a staff member of the FHLBB, admitted there is no effective way to prohibit speculation. “We can pro nounce ‘thou shaft not speculate’ but there is no way to prevent it,” she said. S&L’s are expected to be slow in taking the small society IF Y0l)'££ advantage of their new freedomai 1 er said while the Comex has had i inquiries,” he didn’t expect at business right away. James Sinclair, head of a cot trading firm and a Comex menil' however, “there is an army salesmen heading out to get so*' business. Some thrifts undoul# succumb to sales pitches and hedf cisely the wrong time.” The wrong time would be toi* when contract prices are at or thereby locking in their historic cost of money. Sinclair noted that S&L’s “‘don 1 expertise or background in futurS a proper decision and they’ll beck on commodities traders, many 1 have very little experience in tij f mics of interest rates. ” “It still isa)* call,” Miss Kelsey said. “Butth risk is that interest rates will keep and if you’re not hedged you’re i f trouble.” by Brickj £>UT- 3(s>ctf* ©1981 King Features Syndicate, Inc. World rights reserved. 7-Q