THE BATTALION
THURSDAY, DECEMBER 10, 1981
Page 7
Economist says recession
causes unemployment to rise
United Press International
DALLAS — Unemployment
could reach 10 percent before
dropping off, says the senior eco
nomist for the congressional Joint
Economic Committee.
“We are in a recession and it’s a
bad one,” Dr. Robert Weintraub
said in a news conference prior to
his speech to credit union leaders
at Southwest Corporate Federal
Credit Union’s 1981 Economic
Forum.
“You can’t get out of inflation
without paying,” Weintraub said.
He said the Sunbelt is more
immune to the recession than the
Midwest and parts of the North
east, but that nationwide employ
ment could still reach 10 percent
before the economy is brought
under control.
“The problem affecting the eco
nomy did not emerge suddenly
nor from measures implemented
this year,” Weintraub said.
The economist said the prob
lems have been building up for
four or five years and he blamed
President Carter for allowing the
Federal Reserve Board to print
money faster than the country’s
ability to absorb it.
The key to salvaging the eco
nomy, Weintraub said, “is to keep
the brake on the money supply
and not allow it to rise as it did in
1977-1978.”
Weintraub told the more than
200 credit union leaders that if the
Federal Reserve keeps monetary
growth at $1.5 billion a month for
the next 12 months, the future will
be brighter.
“The good news is that interest
rates are declining and that will
help a lot of the industries now in a
slump,” he said.
Although he said President
Reagan will not be ablfe to keep his
campaign promises of a balanced
budget by 1984, policies now
being enacted will benefit the
second half of the decade and the
president in power in 1985.
Weintraub predicted the de
cline in interest rates would force
a turnaround in economic activity
at the start of the second half of
1982.
Weintraub said he believes that
inflation is topping out.
“I think we will see some very
good inflation figures in the next
year,” he said.
While the near-term outlook is
bleak, Weintraub predicted “the
long-term outlook is a fairly happy
one — if we can live that long. ”
mm
/
A Vet School Christmas
jhe Christmas tree at the Medical
Sciences Library has a special theme this
lytar. The tree is decorated with animal
| rnaments made or contributed by staff
hembers. The animal theme is derived
from James Herriot’s latest book The Lord
God Made Them All. Cindy Kirby, a
circulation clerk, and Stephanie Lester,
accounting assistant, display the tree in
the library.
Flood victim aid available,
ut no one has applied
United Press International
<0RT WORTH — Victims of
C ober’s flooding are seeking
J re than $12 million in
rgency loans, but Small Busi-
:s Administration officials don’t
U bvv why North Texas residents
ll 'e not filed loan applications.
"What’s bothering us most is
it only about 20 percent of the
)ple who interviewed for appli-
c ions went ahead and applied,”
lay Chatham, disaster branch
nager of the Fort Worth-based
^onal SBA office, said Tuesday.
There are a lot of people who
uld apply, who haven’t.”
The majority of loan applica-
s have been filed by residents
he Fort Worth and Gainesville
as, hit by some of the worst
ading in the state’s history.
“Fort Worth was definitely
mber one in the number of ap-
|cations, but the more severe
age seemed to have been
me in the Gainesville region,
ich includes Sherman and De-
|ton,” Chatham said.
^ sin the wake of floods the week of
lit 11 more than 2,500 inter
ns where held in the 18 coun-
were declared eligible for low
terest home and business loans.
Only 505 people applied.
Counties eligible for flood loans
are Tarrant, Dallas, Parker,
Hood, Wise, Cooke, Grayson,
Denton, Montague, Clay,
Stephens, Palo Pinto, Shackel
ford, Eastland, Jack, Callahan,
Taylor and Coleman.
“We don’t know why people are
putting off asking for money, ”he
said. There was a lot of damage.
The flooding was bad. It doesn’t
make much sense.”
Some applicants may be con
cerned about the government’s
new policy of giving discount loans
only when credit is unavailable
elsewhere, he said.
“The situation exists this is one
of few disaster declarations made
since the split-rate program began
in August,” he said. “If the indi
vidual has the ability to go to a
normal credit source then we ask
them to do so, or we can offer a
loan at a comparable rate — 16
percent for a home loan or 18.5
percent on a business loan.”
About 90 percent of applicants
since August got the 8 percent dis
count rate, he said.
The SBA had received 432
home loans applications for about
$6.3 million and 73 applications
for roughly $5.8 million in busi
ness loans.
“Some people may be putting
off filing until they hear from their
insurance companies,” he said.
“That really is not smart, since we
will arrange with insurance com
panies to work out payments and
our deadline is Dec. 24.”
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• Teaching tests accompanied by com
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• Materials constantly updated.
• Over 40 years of .
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GHK CENTER
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Don’t Cram
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696-3196
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shellenberger’s
1919 Texas Avenue
779-1645
riffr
iuit brought
)y witness
n program
United Press International
HOUSTON — The operator of
oncrete company has sued the
eral government for $500,000
damages in connection with its
tness- protection program.
He charged the government
jd not live up to its promises to
otect him and provide him with
new identity in exchange for his
stimony before a federal grand
iry in Indiana in 1976.
John D. Boulton and his wife
leanor, who live in Pasadena said
aesday they had losses of
10,000 after Boulton entered the
deral witness-protection prog-
m in February 1976, after an
iempt on his life.
Boulton had testified before a
[deral grand jury, which was in
stigating kickback schemes in-
)lving city employees. Neither
le name of the city nor Boulton’s
al name were in the lawsuit.
William Dempsey, a spokes-
an for the U.S. Marshal’s Ser-
|ce in Washington, said he could
[ot comment on the allegations
cause U.S. Justice Department
Policy forbids him to acknowledge
file Boultons’ participation in the
Program.
I He said about 20 similar law-
jRiits have been filed during the 11
11 Sears the program has been in ex-
’ Itence, but none has been suc-
,|| lessful.
COME GROW WITH US
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