PAGE TWO
THE MICHIGAN DAILY
SATURDAY, APRIL 2, 1966
PAGE TWO TINE MICHIGAN DAILY SATURDAY, APRIL 2,1966
,
Tobin Advocates Tax Changes
To Offset Economic Expansion
'MAN ON A WILD HORSE':
Hart Discusses War Involvement
r
HARD PRESSED
4
M
By MARK R. KILLINGSWORTH
Acting Editor
"The expansion of the economy
is going faster than it should be
permitted to do," Prof. James To-
bin of Yale University's economicsE
department said yesterday. He was'
interviewed after a talk at the In-
stitute for Social Research.
"As we have gotten closer to
full employment, the speed of the,
economic expansion taking us
there has increased, not decreas-
ed, and we should taper off," To-
bin said.
He stressed, however, that "if we
have an over-reaction like the Fed-
eral Reserve's tightening of credit
in response to inflation in 1955-
57, it could hurt the economy a
lot.",
Tobin, a member of the Presi-
dent's Council of Economic Ad-
visors in 1961-2, said he favored
temporary suspension of the seven
per cent credit against corporate
income tax allowed on certain
forms of corporate investment -
along with an increase in' per-'
sonal and corporate income taxes,
if necessary-to dampen the rate
of economidexpansion.
He added, however, that busi-
ness opposition to the tax credit
suspension-in addition to 'strong
opposition from the Treasury De-
partment on the grounds that the
administration had pledged in
1962 on its enactment that it would
not be used to stabilize the econ-
omy-made "a general surcharge.
on income taxes" most probable.
Pointing to rising prices, Tobin
said, "We are clearly in the zone
of the economy where most of our
excess capacity and unemployed
workers have been used up. Addi-
tional demand, while it may bring
additional output, causes industry
to pay 'more for increasingly scarce
units of production.
Unemployment in February was
3.7 per cent of the job market
one of the lowest figures in the
postwar period. The Consumer
Price Indexrrose one-half of one
per cent last month, and whole-
sale prices have been rising dur-
ing the past five months at an an-
nual rate of five and one-half per
cent.
GNP Growth
Tobin noted that the Council of
Economic Advisors 1966 report had
anticipated a total growth (in
money terms) of gross national
product-the value of all goods
and services produced for the year
--of about seven per cent, two per
cent of that representing price in-
creases and hence leaving a "real"
growth rate of five per cent.
"But I wouldn't be surprised if
the actual figures were eight per.
cent 'money' growth and three per
cent price increases," he added.
Dangers of Inflation
Tobin cited several dangers of
inflation he felt were especially
important:
-The country's unfavorable
balance of payments (the differ-
ence between its payments to oth-
er countries and its receipts from
them for purchases, foreign aid
and the like) would increase faster
than it already has because Ameri-
can goods would be higher priced;
-There is ssome inequity to
people on pensions, fixed incomes
and annuities" since their set
money income is in effect eaten
up in part by rising prices, and
-"Some of the heavy invest-
ment being made in response to
the increasing demand could bet-
ter be absorbed next year-we cer-
tainly can't sustain a corporate
investment rate of 16 per cent a
year, which is the case now."
(Continued from Page 1)
tions and the personnel involved
are matters that I can have a
strong opinion about, but on which
I can contribute not a bit," he
said in reply to a question on ne-
gotiations with the National Lib-
eration Front, the political arm
of the Viet Cong.
Hart is believed to feel that
NLF representation in some form
is inevitable but forcing the ad-
ministration's hand on such a
delicate issue would be wrong.
NLF Representation
The administration has said it
would accept an NLF delegation at
talks if it were part of a North
Vietnamese delegation but opposes
any NLF representation as a sep-
arate body.
Hart noted, however, that "we
didn't slaim the door on the issue
at the United Nations or neutral-
ize the effectiveness of the In-
ternational Control Commission of
the Geneva Conference. Even those
nations which express doubts about
our course .should join with us in
seeking to bring the issue before
the UN."
The senator, who supported the
recent Senate Foreign Relations
Committee hearings on Viet Nam
and Communist China, added that
he thought both sets of hearings
had been "good" and "useful."
Lauds Discussion
"I've never been critical of the
people who lacerate the adminis-
tration for whatever reason," Hart
said. "It does indeed add fuel to
Hanoi's attitude in this case, but
this is one of the prices we are
glad to pay for a society which
seeks the truth through free dis-
cussion."
He added-referring to a speech
this Thursday. favoring recogni-
tion of Communist China by Rep.
Weston E. Vivian (D-Ann Arbor)
-that "we clearly have to antici-
pate and try to arrange that Red
China will become a member of
the human community just as we
had to make that transition with
Soviet Russia."
He stressed that "we also have
an obligation to get some under-
standing on the status of Taiwan,
nuclear testing and weapons con-
trol. Recognition of Communist
China is just one of several ques-
tions in a complicated context in
which time-when should we rec-
ognize them and admit them to
the United Nations?-is an impor-
tant factor."
'Ready To Wrestle' ,
Hart, who in early January said
he was "ready to wrestle with -any
man who wants to cut" from the
budget to pay for the war in Viet
Nam, said yesterday he is "still
ready to wrestle but a little afraid
I'm going to lose."
He declared that "our commit-
ment to the war on poverty and
other domestic programs is as sol-
emn as the pledge we gave to the
South Vietnamese. It makes much
more sense to raiserevenues to
fight both wars rather than have
poor people lose one and pay for
the other.
"Cutbacks in areas like the
school milk program and National
Defense Education Act scholar-
ships aren't the price we should
have to pay to fight the war in
Viet Nam," he added.
He said his pessimistic outlook
on budget cutbacks came from a
feeling that the Congress would
raise taxes but would cut domestic
programs as well, rather than sim-
ply damping the economy via tax-
es, as President Johnson is under-
stood to favor.
to f ind the kind of summer housing that's
just right for you?
Call or come in to
Across Campus
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SATURDAY, APRIL 2
9 a.m.-The French Historical
Studies Conference will be held in
the Rackham Building.
9 a.m.-5 p.m.-The Engineering
Council is presenting "Technirama
'66'," the engineering school open
house.1
7 and 9 p.m.-Cinema Guild will
present "Forbidden Games" in the
Architecture Aud.
7 and 9:05 p.m.-Cinema II will
present part two of Hitchcock's
Trilogy "Vertige" in Aud. A.
8 p.m.-The movie "Children of
the Damned" will be presented at
the Newman Center.
8:30 p.m. - The University of
Michigan Men's Glee Club will
present a concert conducted by
Phillip A. Duey in Hill Aud.
SUNDAY, APRIL 3
2:30 p.m.-The music school will
present the concert, "Chamber
Music for Clarinet, Horn, Bassoon
and Srtings," in Rackham Lecture
Hall.
3:30 p.m. - The music school
concert, "Sigma Alpha Iota Ameri-
can Musicale" will be presented in
the Recital Hall of the music
school.
7 and 9 p.m. - Cinema Guild
presents "Forbidden Games" in
the Architecture Aud.
f...
The Daily Official Bulletin is an
official publication of the Univer-
sity of Michigan for which The
Michigan Daily assumes no editor- 1
ial responsibility. Notices should be
sent in TYPEWRITTEN form to
Room 3519 Administration Bldg. be-
fore - 2 p.m. of the day preceding +
publication, and by '2 p.m. Friday
for Saturday and Sunday. General
Notices may be published a maxi-
mum of two times on request; Day,
Calendar -items appear once only
Student organiratian notices are not
accepted for publication.
SATURDAY, APRIL 2
Day Calendar
French Historical Studies Conference
-Rackham Bldg., 9 a.m.
Cinema Guild - "Forbidden Games":
Architecture Aud., 7 and 9 p.m. -
School of Music Degree Recital -
Catherine Corlett, pianist; Recital Hall,
School of Music, 7 p.m.
University of Michigan Men's Glee
Club Concert-Philip A. Duey, conduc-
tor: Hill Aud., 8:30 p.m.
School of Music Degree Recital-Linda
Briod, violinist: Recital Hall, School
of Music, 8:30 p.m.
General Notiees
Summary of Action Taken by Student
Government Council at Its Meeting
March 31, 1966
Approved: That SGC allocate $1000
for .the purchase of office machinery
for SGC. use to include a mimeograph
machine and a copy machine (Thermo-
fax or..other type) and for repair or
replacement of those machines we al-
ready have.-
Approved: That any member of the.
student body be able to present mo-
tions for a first reading directly to'SGC
during constituents' time. The constitu-
ent will be allowed to present the mo-
tion and answer any questions con-
cerning-it and mupst provide copies for
all council members\ The motion will
then be automatical1y postponed to be
considered as old business at the next
regularly' scheduled meeiting at which
time the maker of the motion will be
able to participate in debate.
Approved: That SGC add its name
as a sponsor for the Emergency Con-
ference on China which will be held
on April 3.
Approved: SOC; urge the Board in
Control of Intercollegiate Athletics to'
reconsider its policy of holding ex-
clusively closed meetings and to open
its sessions when faced with matters
which affect students and the public,
(Unanimously.)
Approved: That SGC suspend its cal-
endaring rules and approve a bucket
drive conducted by the U. of M. Friends
of SNCC on Fri., April 1.
Approved: That SGC endorse Dean
Douthat in the Monday City Council
election as a candidate from the 2nd
Ward and authorize its Student Hous-
ing Association to release position state-
ments in regard to candidates running
for City Council from all wards. (Unani-
mously.)
Appointed: Mark Simons administra-w
tive vice-president of Student Govern-
ment Council.
Student Government Council Approval
of the following student-sponsored
events becomes effective 24 hours after
the publication - of this notice. All
publicity for these events must be
withheld until the approval has become
effective.
Approval request forms for student
sponsored events are available in Room
1011 of the SAB. -
University of Michigan Friends of
SNCC, bucket drive, campus areas, April
1.
Late Permission: Freshmen. or Sopho-
more women who live in Residence
Halls and sororities and who plan to
attend the China Teach-In, Sun., April
3, may arrange for a late permission
with their individual housemothers.
Technirama '66: College of Engineer-
ing Open House*ssponsored by the En-
gineering Council, Sat., April 2. from 9
to 5; and Sun., April 3 from 1 to 5.
Ushers: Ushers are needed for the
annual Spring Glee Club Concert, which
is to be given in Hill, Aud. on Sat.,
April 2 at 8:30 p.m.
Persons who wish to usher for this
event will please report to the east
door of Hill Aud. no later than 7:30
p.m. on Sat., April 2.
Bus Service: Effective April 4, 1966, the
University bus service between the cen-
tral campus and North Campus will be
extended. The last bus will leave the
shelter for North Campus at 12:15 a.m.
and will return to campus at 12:30 a.m.
This service will be maintained seven
days per week.
Placement
Vickers Div., Troy, Mich. - Advtg.
Trng. Immed. opening for grad with
Journ, or English degree. Some tech.
bkgd. No exper. req. Coordinate infor-
mation from des. & sales to prepare
advtg. brochures.
Martin Place Hospital, Madison Hts.,
Mich.-Lab positions in clinical chem.,
bacteriol., & gen. med. tech. Exper.
pref., but will train grads with. bkgd.
in organic or biochem., bacteriol., or
gen. biol. Opening as trainee for sum-
mer also available.
Local Institute-Geologist, Research
Assoc. Infra-red imagery. Some knowl.
of econ. BS. 3-5 yrs. exper. pref., will
consider April grad.
Continental Motors Corp., Muskegon,
Mich.-Young man to understudy chief
of admin. as ass't. Degree in Bus. Ad.
MBA pref. Exper. in automotive indust.
desirable.
Belfour Stulen, Inc., Traverse City,
Mich.-Computer Programmer. - Bkgd.
in 1400 series, using Autocoder, either
trng. or exper.
Little Cloud Girl Scout Council, Inc.,
Dubuque, Iowa-District Adviser. BA
Camping or teaching exper. desirable.
21 yrs. or older to initiate, organize
programs.
Public Library of Charlotte & Meck-
lenburg County, Charlotte, N.C.-Ref-
erence Librarian, completion of "fifth
yr." in lib. school or equiv. Also
Young Adult Librarian to specialize in
selecting books for young adults and
Adult Services Community Librarian.
Pennurst State School & Hospital,
Spring City, Pa.-Speech Pathologist.
MA-provide clinical evaluations in
speech & language. Speech Clinician.
BA-assist in gen. speech therapy serv-
ices. Language Clinicians. .BA-work
with patients who have delayed speech
& language and/or aphasia.
* * *
For further information, please call
764-7460, General Div., Bureau of Ap-
pointments, 3200 SAB.
SUMMER PLACEMENT SERVICE:
212 SAB-
Jobs for Men-Begin April 26 as engi-
neering aides, assembly workfi rough-
necks on oil & gas rigs, desk clerk jobs,
bell boys. These jobs with following
companies: Ford Motor, Saline; Gen-
eral Motors, Tech. Ctr. Service Section;
McLouth Steel Corp.; Jones & Laughlin
Steel Corp.
Men & Women Students-Come in to
register in order to receive job infor-
mation after you leave Ann Arbor. To
contact you we must have an applica-
tion.
Details at' Summer Placement Service,
212 SAB. Lower Level.
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