Page 12-Thursday, October 26, 1978-The Michigan Daily
PROPOSAL ON THIS FALL'S BALLOT:
Constitutional Convention referendumdebated
By MICHAEL ARKUSH districts and 109 house districts, to take government into their own anamount of propsosals on the fall ballot, effects of any tax amendments which properly to adopt both measures.

I

Supporters and opponents of a ballot
proposal -to hold a state-wide con-
stitutional convention next year
debated last night before a small crowd
at Mason Hall.
If passed Proposal A, which
automatically qualifies for the fall
ballot every 16 years, would mandate a
convention at which delegates elected
by the people would be able to amend
the Michigan , Constitution. One
representative would be elected from
each of Michigan's 39 state senatorial.

totalling 148 delegates.
BUT w THE AMENDED constitution
would have to be approved by the
state's voters in a special ballot before
it could become law.
Dennis Stabenow, director of Citizens
for a Constitutional Convetnion, argued
the convention would allow the often
frustrated electorate to produce
changes unattainable by the state's
legislature.
"Although the legislature can make
changes, people are upset so they want

ds," said Stabenow.
HE ADDED THAT the current ballot
proposals, ranging from the tax reform
amendments to the controversial.
drinking age proposal, are not flexible
enough to adequately meet the citizen's
most essential needs. He said a con-
stitutional convention would enable the
delegates to push the necessary
changes into law.
James Farnsworth, a delegate to the
last convention in 1963 and a state
representative from 1963-1975, said the

11, indicate people have become less
apathetic and more concerned with fin-
ding the necessary solutions to key
problems. He added, however, that an
amended constitution with all of its
numerous changes would be difficult to
evaluate and would contain changes
that could be affected through the state
legislature.
David Hayhow, campaign director of
Citizens Against Proposal A, said he
thinks many of the proposal's adheren-
ts are only interested in reversing the

may be approved in November.
Hayhow contends the proposal's sup-
porters think they can persuade the
convention's delegates to vote against
the Tisch and Headlee amendments
which could be passed in this election.
"THE SUPPORTERS of the
proposal are not interested in seeing
Headlee and Tisch passed. They think
that the convention might be able to
reverse that ruling," said Hayhow.
But Stabenow countered by insisting
the convention's representatives would
be able to only "strengthen the amen-
dments" and form a tax reform'
proposal which could somehow com-
bine the two in an equitable and
beneficial manner. He added that if
both Tisch and Headlee are passed this
November the state legislature might
not be able to change the tax structure

"The convention will not pass ame
dments against what the people deci
in November. How can they do t
knowing the constituents are agair
it?" said Stabenow.
SHOULD THE proposal pass, el
tions would be held within six months
elect the convention's delegates. T
state legislature would then decide he
long the convention shouldlast. Aff
the representatives amend the c
stitution, a 90-day education period
provided for the electorate to becon
acquainted with the new changes. Th
a special election is held to determi
whether the voters approve the ame
ded constitution.
Stabenow estimates the cost to 1
between $6 and $8 million while Fa
sworth thinks it would be as high as
million.


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Economists debate
solutions to inflation

By MARTHA RETALLICK
There's an old saying that goes if you
put two economists to work on a
problem, they'll come up with three dif-
ferent solutions. And, when that
problem happens to be that long-time
national bugaboo known as inflation,
there must be at least four times as
many solutions to the problem as there
are economists.
As might be expected of two men
from opposite ends of the ideological
spectrum, economists Robert Lekach-
man and Allan Meltzer disagree on
what causes inflation. And, as their
debate last night at Rackham
Auditorium proved, they also disagree
on how to end it.
THE DEBATE, third in the Univer-
sity Activities Center's (UAC)
Viewpoint lectures series, saw the two1
agree on one major point: the Carter
administrations' handling of inflation
has been awkward.
As the liberal Lekachman put it,l
President Carter is "doing the work of
two men - Laurel and Hardy."
To Lekachman, Carter's program of
voluntary wage and price controls is1
doomed to fail because it avoids "biting
a very necessary bullet," that.of man-]
datory wage and price controls. The
author and professor from the City
University of New York predicted we

will have these controls within twel'
months and if not, we will find ou
selves "in the first Carter recession."
LEKACHMAN'S conservative cou
terpart, Allan Meltzer, is a conse
vative economist from Carnegie-Melt
University in Pittsburgh. Like othi
conservatives, Meltzer doesn't shai
Lekachman's fondness for wage ar
price controls. To Meltzer, controls a]
"a cure worse than the disease."
Meltzer used Ann Arbor's neighbor
the north, Canada, s an example of
country that has used wage and pris
controls and found they haven't work
too well. In fact, Canada is one of ti
few countries whose currency has far
worse than the U.S. dollar during t
past few years, he said
Meltzer said wage and price contr~
have proven more effective in causi
shortages, long lines at the stores a
merchants selling goods overseas to g
around domestic restrictions than th
have in harnessing inflation.
Meltzer's inflation-fighting pr'ograx
would utilize a long-term plan to cut th
federal budget deficit and the growth
the money supply to bring it back in lir
with what the economy produces.
Meltzer, this program would be t
program which would eventuald
reduce the inflation to zero - a goal
one has mentioned thus far.

Carter reaction
(Continued from Page 1)
could allow GM to raise prices on its run.
1979 models a whopping 9.4 per cent "We had not expected much," co:
above 1978 models by next Oct. 1. GM mented one Swiss dealer, "but we
jumped the gun on the other auto firms not expected so little."
by announcing its 1979 model-price list GOLD BULLION4 soared to reco
which reflected a 4.1 per cent increase prices in typical reaction to the dollai
- on Aug. 18. troubles.
Since the President's program ap- Despite the drubbing the dollar to4
plies to price increases during the on foreign exchanges, Carter's actii
traditional model year - from October won some praise.
to October - GM could tack on another West German governme
5.3 per cent to its prices and remain in spokesman Klaus Boelling said the a
technical compliance with the ti-inflation program was addition!
guidelines. evidence of Carter's "strong dete
CHRYSLER AND AMC have mination to achieve the aim of effe
declined to comment on the program. tively fighting inflation." He said t
On world money markets, Carter's plan was another "contribution
plan was dismissed as too little, too realizing the pledges made at the Bo
late, and the dollar plunged to new lows economic summit" last July, attend
in heavy selling. But some experts said by Carter and the heads of oth
the plan may do some good in the long Western governments.
r-

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