014 mt~tgu Bl Seventy-Sixth Year EDITED AND MANAGED BY STUDENTS OF THE UNIVERSITY OF MICHIGAN UNDER AUTHORiTY OF BOARD IN CONTROL OF STUDENT PUBLICATIONS U.S. Economy: Combating Inflation - ere Opinions Are Free, 420 MAYNARD ST., ANN ARBOR, MICH. Truth Will Preval NEws PHONE: 764-0552 Editorials printed in The Michigan Daily express the individual opinions of staff writers or the editors. This must be noted in all reprints. TUESDAY, MARCH'21, 1967 NIGHT EDITOR: NEAL BRUSS Endorsements For SGC Seats,.. IN A FIELD OF 17 candidates for six Student Government Council seats in tomorrow's election, The Daily Sen- ior Editors have found a wide diverg- ence of views appealing to various fac- ets of the student spectrum. In gener- al, fthe candidates are disappointing. They lack fresh approaches or new in- sights into the problems plaguing the campus. They also demonstrated a faith in methods that have failed continu- ously in the past ("petitioning for a student bookstore," "detailed resolu- tions on student housing," etc.). The following, listed alphabetically within categories of preference, are our endorsement for the six SGC seats: EXCELLENT MARTI LIEBERMAN, '69 - Is the most realistic of the candidates in his appraisal of the University's opera- tion and the measures students must initiate to change undesirable condi- tions. He would lend SGC a valuable voice that could steer it on a path of action. ANNE PATTON, '68 - Is extremely knowledgeable about the University and demonstrates an enthusiasm for Council work. She has sharp insight in- to the decision-making process and is likely to use realistic measures if stu- dent demands are thwarted. GEORGE STEER, '69--Will be a nec- essary ingredient on the new Council if significant advances are to be made in the area of improved student hous- ing. Aware of University affairs in gen- eral, he is now vice-president of the Student Housing Association and in this capacity has initiated many fresh Ideas in the area of low-cost housing. He is presently working on a bill in the state Legislature to attack the prob- lems of-public housing. GOOD DAVID BULLARD, '68 - Presents a detailed and fairly cogent list of im- provements in specific areas of stu- dent concern. He seems to have a good understanding of the University and would be a valuable worker for SGC. STEVEN LESTER, '69E-Is the most qualified candidate from the Engineer- ing College and has an adequate un- derstanding of the University. He has a strong sympathy for expanding the power base of students at the Uni- versity, and is a necessary addition to the new Council if all campus elements are to be ably represented. JANIS SORKIN, '68-Shows a keen interest in an area of student concern long-overlooked: transportation and parking facilities. Moreover, she has a good understanding of the Univer- sity and does not seem reluctant to consider necessary means of action. WE DO NOT FEEL the other candi- dates would be acceptable on Coun- cil at this time because of their lack of understanding of University affairs and their unimaginative or unrealistic platforms. KAY STANSBURY, '70 - Demon- strates much enthusiasm and sympa- thy with Council's problems, but, since she is only a freshman, we feel she is still too inexperienced. We encourage her to certainly seek election next year. JEFFREY HOWARD, '68 -- Presents a well-structured platform, but seems confused about certain important areas presented. MARK SCHREIBER, '69--Also pre- sents a detailed list of reforms, but views the role of SGC as "most effec- tive if it takes an advisory, if not con- sultory role" in University affairs. We strongly feel that this could seriously hinder any improvement of Council's position in the future. JUDY GREENBERG, '68-Is very in- telligent and :articulate, but is naive about the-power structure and reflects a basic unwillingness to consider meth- ods necessary to an alteration in the status quo. She is therefore not likely to bring any fresh outlook to SGC. BLANCHE GEMROSE, '68 - Though interested in campus work, she lacks an understanding about the power structure of the University and the workings of SGC. RICHARD HEIDEMAN, '69-Worked on the Residential College Advisory Committee, but does not have a wider awareness about the workings of the University, and he is thus unequipped for effective Council work. E. O. KNOWLES, '70-Is an enthus- iastic freshman who does not have an adequate understanding of SGC and University problems. However, he should stay involved with Council work and gain some experience. MIKE McDERMOTT, '69 -Comes across well on the surface, but his in- sight into the decision-making process is negligible, and he would not offer Council any needed contribution. MICHAEL ANDERSON, '69; JIM SPALDING, '69, and GENE DE FOUW, '69E-Are very poorly informed about the University and have negligible in- sights into solutions to student prob- lems. --THE ACTING SENIOR EDITORS The following is the first of four articles by two authors dealing with the state of the U.S. economy. This is the first of two articles by Prof. Warren L. Smith of Economics. T THE PRESENT time there is considerable uncertainty about the exact course of the economy during the next few months. There can be no doubt that the pace of economic expansion has slowed quite markedly in recent weeks; the question is whether a reces- sion is in the offing. The sig- nals at the moment are mixed, as are the opinions of observers. One view is that we are experienc- ing a temporary slowdown in eco- nomic growth to be followed short- ly by a reneway of vigorous ex- pansion; at the other extreme are a few economists who believe a recession has already begun. Any assessment of the current state of the U.S. economy and of the problems it faces must be made against thebackdrop of economic developments over the past six years. In almost every respect, the performance of, the economy dur- ing this period has been spectacu- lar. GNP valued at constant prices of 1958 increased from $483 bil- lion in the. first quarter of 1961 (the trough of the recession of 1960-61) to $657 billion in the first quarter of 1966-for an average rate of growth of 5% per cent per year. The expansion has con- tinued for 73 months-the longest peacetime period of uninterrupt- ed growth in then ation's history. Economic growth created 10 mil- lion new civilian jobs between February, 1961, and December, 1966-enough to absorb an in- crease of 7 million in the civilian labor force while at the same time cutting unemployment from 5.7 million to 2.7 million. The unemployment rate was reduced "In late 1965 and early 1966 many e conomists outside the government fa- vored a general tax increase to dampen inflationary pressures . . . (but) no significant tax increase was proposed; indeed fiscal policy was mark- edly expansionary as military expenditures increased much more rapidly than had been projected in the annu al budget presented at the beginning of the year. saisiitiesilesiisiliiiniillisissimssimiillimaassm#1:sais25issilssaiemmeiisismss#21i:. L.::."..::::.t::.:::...:':::.": V.:::"::.^:.::.:.W~iiE~miM N##W from 6.8 per cent of the civilian labor force in early 1961 to 3.7 per cent at the beginning'of 1967. During the first four years of the expansion, prices were grat- ifyingly stable. In February, 1965, the wholesale price index which measures price movements of bas- ic commodities, stood at almost exactly the same level as in Feb- ruary, 1961. During the same per- iod, the consumer price index, measuring changes in the cost of The difficulty of adjusting sup- ply to rapidly growing demand led to a greater rise in prices than would have occurred had growth been less rapid. The rapid growth paid handsome dividends in re- ducing the unemployment rate from 4.7 per cent in June, 1965, to 3.7 per cent in February, 1966, but the cost of this achievement in terms of inflation seems exces- sive. In late 1965 and early 1966 ingly rapid increase in the sup-' ply of money and bank credit that had been allowed to occur in 1965 was brought to a halt, and by the fall of 1966 many in- terest rates had risen to their highest levels in 40 years. Although the tightening of cred- it imposed severe strains on the financial structure, it did succeed in slowing the pace of expansion. The growth of aggregate demand was brought into line with the clined by 46 per cent from March to October, and the drop of nearly $7 billion in the annual rate of spending on house construction between the first and fourth quar- ters of 1966 was an important fac- tor in cooling an overheated econ- omy. Highi nterest rates, together with last fall's suspension of the 7-per cent investment tax credit, have undoubtedly also been an im- portant factor in slowing the growth of business spending on new plant and equipment. IN RECENT months, as infla- tionaryEpressures have lessened, the Federal Reserve has shifted toward a moderately easier mone- tary policy, and interest rates have fallen significantly below the peaks of last fall. The Economic Report of the President, publish- ed in January, forecast continued expansion in 1967, powered by ris- ing government expenditures com- bined with a somewhat reduced growth of private demand duirng the first half of the year. By midyear, the report predicted that private demand would be expand- ing more rapidly and would be stimulated further by the Presi- dent's proposed increase in Social Security benefits to become effec- tive July 1. ON THE BASIS of such a fore- cast, the President has proposed the enactment of a 6 per cent surcharge on personal and corpor- ate income tax liabilities to take effect at midyear in order to fore- stall a renewal of inflationary strains. If the measures proposed by the President were adopted, the economic report foresaw an ad- vance of about $47 billion in GNP in 1167 - a pace of expansion judged sufficient to hold the un- employment rate approximately constant. living, rose at a rate of only about 1 per cent per year. EARLY IN 1965, however, the stability of prices began to give way to a steady increase. The rise was bentle at first but became much more perceptible as the months passed. From August, 1965, to August, 1966, the wholesale price index increased by 3.8 per cent while the consumer price in- dex rose by 3.5 per cent. In part, this inflation can be attributed to the excessively rap- id pace of the expansion in late 1965 and early 1966. Between the second quarter of 1965 and the first quarter of 1966, GNP rose at an annual rate of nearly 10 per cent; about 75 per cent of this rise was reflected in increased output and the remaining 25 per cent in a price increase. many economists outside the gov- ernment favored a general tax in- crease to dampen inflationary pressures, and it is quite apparent that this view was shared by some economists within the adminis- tration. But while steps were tak- en to speed up the collection of existing taxes, no significant tax increase was proposed; indeed fiscal policy was markedly ex- pansionary as military expendi- tures increased much more rapid- ly than had been projected in the annual budget presented at the beginning of the year. AS A RESULT, the burden of checking inflation was borne pri- marily by monetary policy. Begin- ning with an increase in the dis- count rate in December, 1965, the Federal Reserve shifted to a mark- edly restrictive policy. The alarm- growth of productive capacity at an unemployment rate that fluc- tuated narrowly between 3.7 and 3.9 per cent during most of the period from February, 1966, to January, 1967. The wholesale price index continued to rise through August, then began to decline; in December it was only 1.8 per cent above the level of a year earlier. However, consumer prices continued to rise through the end of the year, although they have shown some signs of stabilizing in recent weeks. Tight money had its greatest effect on housebuilding, as in- creased security yields lessened the ability of banks and savings and loan, associations to compete for deposits; thereby reducing the supply of mortgage funds available for the financing of house con- struction. New housing starts de- 4 A Letters: Reacting to Presidential Endorsements To the Editor: REGARDING your SGC presi- dential endorsement (editorial, March 19): SELLOUT!!! -George Steinitz, '66 -Steve Daniels, '67 Pro-Kahn To the Editor: WE ENDORSE Bruce Kahn for Student Government Council president and Ruth Baumann for executive vice-president. They are unquestionably the most qualified and able candidates who are run- ning. Since both Bruce and Ruth have been members of SGC- for quite some time, they have an understanding of the problems which students here face and con- crete proposals about how these problems can be solved. Kahn and Baumann are calling for an end to the old concept of a student government with insig- nificant powers and resources. They are working instead for full and meaningful student partici- pation within a new type of Uni- versity government, They feel that students must have the- power to govern their own lives; that they must bep rovided with complete and accurate information about the workings of the University; and that they must have a ma- jor voice in the entire University decision-making process. We support this concept of gov- ernment and feel that Bruce Kahn and Ruth Baumann will best be able to achieve these mutually de- sired ends. -Nelson Lande -John Preston -Leslie Mahler -Mike Koeneke -James Benton -Bob Smith -Neill Hollenshead Members of Student Government Council Endorsement To the Editor: W E ARE PLEASED that this spring a particularly well- qualified candidate is seeking a seat on SGC. We feel Judy Green- berg has worked conscientiously in University affairs for the past three years, having held positions of leadership in many student or- ganizations. These organizations, which represent a broad range of interests, reflect her great diversi-' ty of abilities and extensive knowl- edge of the University. Her proposals for remedying the chronic student housing problems and her suggested innovations for strengthening SGC's active role in student affairs point up her foresight and capibilities and she would be an indispensable mem- ber of the Council. WE FEEL her distinguished record ,is well evidenced not only, by her scholarship (she is in the Honors College), but also by her membership on Mortar Board, the national women's honor society. We are confident that her elec- tion would be a vote of support for a responsible and outstanding member of the student body. stated "The engineer's knowledge has been a barrier to solving world problems." If that statement can be interpreted as "The engineer's lack of knowledge has been a bar- rier to solving world problems," then I cannot complain but it seems to be the first statement implies that the engineer's techni- cal knowledge is the barrier which is not at all what I said or meant. His next statement, "Cline said that engineers were responsible for all the developments," is an- other misrepresentation. I said that situation could be solved by engineers and I said some of the blame lies with managers, some of whom are former engineers and with graduates who join the large- ly profit-oriented industries rath- er than those organizations inter- ested in problems of a social na- ture. However, I did not put the blame for "all the developments" with the engineers. The next statement attributed to me was "A lack of student in- terest in the social sciences and humanities is responsible for the engineering school's lack of a strong liberal arts program." I made no comments on student interest in these areas although I said more requirements in social sciences would increase student awareness of the problems. The final statement about many engi- neers trying to get out of "liter- ary school" courses and few try- ing to get into these courses was not made by him but somewhat resembles a remark made by Prof. Eisley. -Alan Kaylor Cline, '67 Vice-President Engineering Council P I \ f * .' The next time you abbreviate 'Stop Our Bombing' .. .Smile !" -James P. Kleinberg, '67L -Ward McAllister, '67E --Steven P. Handler, '68 -Alison M. Smalley, '67N -Walter Heiser, '68 -R. Michael Cole, '68L Ministers To the Editor: MISS KILLIN'S proposal to end draft deferfents for ministers and theology students (March 14) is outrageous. Ministers play as vi- tal a role for the national security as doctors, dentists or anybody else. How do you propose to get people to stand up and fight for great righteous causes if you don't first stiffen moral fibre? I can only marvel at your stum- bling so close to the answer in your last paragraph, and then missing the boat so completely. -John Siegmund Defending Statement To the Editor: WITH RESPECT to the article Iby Dan Share appearing in Tuesday's Daily, on the engineer- ing symposium held the previous day, I would like to clarify some points. First, Mr. Share says I "Fellow Members Of The Party In Power: Despite Recent Reverses, Your Leader- " f -a 49'r Focus on the Issues ROLE of the president of Student Government Council is hardly com- plex. His function may be summed up in one word: leadership. The debate over the presidency of SGC this year has not focused on this issue. It has, instead, circled around problems that are peripheral, if relevant, to the presi- dency. Supporters of Kahn say Copi is irre- Vonsible. Supporters of Copi say Kahn's platform is irrelevant. Both are right. And, in somewhat the same way, both are wrong. nBoth groups are more concerned with the inadequacies of the opposing candi- dates than they are with the strengths of their candidates as leaders. KAHN HAS POINTS in his favor. He is easy, perhaps too easy, to work with. No Coinien He is experienced in SGC procedure. But his platform reveals a naivete about the relationship between power and structure in SGC that has not been affected by his two terms on Council. There is no rea- son to suppose that a term as president will do him any more good. Tom Copi may be irresponsible in one sense of the word. His cynicism is a match for Kahn's naivete. But Copi has one thing in his favor that Kahn does not. Copi will provide SGC with af ocus. The proposals he advocates may never be car- ried out . .. In fact, they probably won't. But Copi will at least force Council to face the issues. I can b'e sure he will never let them forget what they're up against. I DOUBT that Kahn will press Council with the same zeal. -JOHN GRAY ........ ... .... ... ... . ................. ..... .r.. .:...{{:.%:::....".:,:.. .":":". ."5... .vr"."Jn .....r~^l. r ................ r......."..5. ....,.....h,..,............r . . . . . . ......A,. .. .,. .1rr,. .r... . ... .. .. ... .. . **.:NN . . . . Another View of the Heiart-wVoi1ce Incident t Department By PETER McDONOUGH THE GRADUATE E x e c u t i v e Council has delivered itself of a pronouncement on free speech of such weight, such high tone, pickled in obiter dicta of such eternity and verity, that one won- ders what happened to the graven tablets and seraphic trombones, and suspects, a little nostalgical- ly, that it reads better in the orig- inal Latin: "A graduate student is in train- ing to become a member of the community of scholars and one of the hallmarks of that community is free and objective discussion." Unexceptionable, but for the a - - -,, + -a- m ild. ing in wisdom and age. The Board of Regents added its blessing on St. Patrick's Day, with indecent sobriety. Lo, extremists of the top and of the bottom are con- founded and in rout. It's a rough act to follow. But perhaps this quibbly about objectivity matters only to the lunatic few. The real concern of all this judiciousness is whether the Voice-SDS group deprived Messrs. Ford, Hart and Pollock and their audience of their freedom of speech by shouting. For their side, SDS claims that Prof. Pol- lock's ruling on the acceptability of written questions, and verbal ~,,atnn 'fin -Ar fn r" nn-m_ The SDS crowd, on the other hand, has little to recommend them other than that they man- aged, during this glut of edifica- tion, to keep people awake. Mr. Nadel, who corrected Mr. Ford's sanguine memories about the fate of dissenters in the thirties, is unconsolably contrary. Mr. Zweig has a Kropotkin beard too threat- ening even for the hippest of alumni publications. Mr. Rothber- ger, a square radical, thinks the workers are good although, or be- cause, they are being had, and Mr. Friedman, likewise, lives in a pop- ulist delirium. Losers, the whole hairy lot of them. "iaA~a^'hfiir.- -milr.Avnr- ing too controversial was suppos- ed to be said, or that the audience was not to be trusted, or both. Both in fact were the case, and so the inevitable happened. Maybe, although they deny it, the SDS incendiaries were bent on disruption, whatever the form of the questioning. A point in their favor is that they waited until after the morning session, when the written questions they sub- mitted were not made public, to be inconvenient. Instead of going the refusal - to - yield - to - threat route, the chairman should have anticipated their response, made infamous by SNCC: "You must think we're stunid to take such sense of justice, indulges us with benevolence. THERE IS A STORY about the Bengal famine of 1943 that fits the occasion. After many entreaties, the food minister was prevailed upon to visit a particularly hard- ait district, where he gave a grandiloquent speech about pull- ing together and making sacrifices for the war against the Japanese. The peasants listened for hours, all agape. Finally, a local head- man rose, thanked the minister for blessing their wretched soil with the tread of his foot, and said: "But there is one thing, sir: *i I E DINNER conversation hushed as Ronald Reagan walked up to George Iomney's table. "Have a jellybean governor," said Rea- gan to Romney. "Thank you, governor," replied Rom- ney. And with a flick of his left hand, he popped a jellybean into the air and in- to his mouth. IIunrf 1 .+ PY.a~imPer R.no-a~n .