rage 4-Thursday, October 11, 1979-The Michigan Daily


'I

Ninety Years of Editorial Freedom
Vol. LXXXX, No. 31 News Phone: 764-0552
Edited and managed by students at the University of Michigan

State oi
F ORA UNIVERSITY that has
flourished and prospered for so
long-even in the turbulent era of the
60s-bad news does not come easily; in
fact; it is often ignored. Either due to
the usual exaggerated pride or the fear
of incurring the wrath of state officials,
the people in charge of a major univer-
sity. are often reluctant to face the
truth.
And in this case in the University,
the truth is indeed hard to swallow.
The facts couldn't be clearer; a
tragedy is in the making.
Its tragic symptoms, however, have
been so potent to the leaders of this in-
stitution that their meaning can not be
misinterpreted. The message is sim-
ple: The University faces a severe
financial crisis likely to drag on
through the next decade. Luckily, to
the credit of the University
bureaucracy, the powers in the Ad-
ministration Building seem to be in
control of the situation.
During his first-and only-State of
the University address this week, In-
terim University President Allan
Smith gave the administration's first
concrete acknowledgement that the
1980s will be a decade of restraint. It
will be a decade full of inflationary
pressures forcing universities to cut
back on programs, faculty, and other
expenditures. The age of budget
abuses is over. The waste will no
longer be tolerated.
Realizing the problem is half the way
toward solving it because it presents
the school's top brass enough time to
ope with the anticipated financial
squeeze. The second-and more dif-
ficult-part is to locate and weed out
the source of any wastes in University
bureaucracy. Presumably, the finan-
g wizards in the administration
draw'up each year's budget in the hope
ding any costly and wasteful
projects that could only serve to be
-against the students' interests.
The process continues until even-
tually the Vice-President for Academic
Affairs-Harold Shapiro's post for the
last two years-sifts through all the
proposals, determining the final
budget outlay. And when all is done,
presto, the University has a budget.
alHence here lies the problem.
For too long, the budget has smelled
badly. Full of costly and innovating
research programs, the total budget
figure has skyrocketed into the orbit of
4financial disarray. And, of course,
there can be only one interest group
'who suffers the most-the students.
The events of the last few years on
this campus have demonstrated that it
is the students who pay for the ad-
ministration's tendency to beef up an
already-obese budget. An annual 8 or 9

[the 'U
per cent hike in tuition and housi
rates are as automatic as class
starting in September. There is nev
any suspense, only further blows
higher education.
Nobody knows when that cycle w
end. Some administrators don't think
can. They point to the necssary expe
ditures and insist tuition and housi
raises are essential to pay for tho
costs. Tacked on to every hike is a lo
and apologetic explanation that t
University realizes the extent of t
hikes-and their meaning to many i
state and out-of-state families-b
that there are no alternatives. We tri
to aviod it, but we just couldn't, th
say.
But they could, if they looked at
possibilities. Admittedly, the Univi
sity must condone to pay faculty me
bers at the same rate as otheri
stitutions. After all, what is a -gre
university without - a promine
faculty?
Another obstacle is the typica
stubborn state legislature. Faced w
the restrictions of the Headlee t
limitation amendment and the c
stant tug-of-war with other power
lobby groups, the politicians in L
sing have been less than generous
their allocations to the Universi
Even if/ the University preside
designate Harold Shapiro manages
put together a strong lobbying effo
it's not expected the state legislatu
will suddenly twist around their bud
priorities.
UnAmidst that realization, ti'
University does have some optioi
For many years, school bureauc
have seen this institution as a rival
Harvard, Yale and the other t
schools. To keep up with the othe
funds gre ,. elly dispersed
research proje4te kind of whi
build scholputation. And t
final results have shown substant
progress in many fields.
Yet, at the same time, the tuition a
housing rates-not to mention ma
other raises in student expenses-ha
been far too damaging. Things ha
become so bad that many potent
students have had to turn elsewhere
their education. If the current p
continues, that trend will follow suit.
Administrators must remember t
school is a state institution, and
price has to be kept low enoughi
students to attend without break'
their families' bank accounts.
Reducing the amount of research,
well as searching for other bud
cuts, will have to be the challenge
the 1980s. Without such a game pl
the tough financial constraints'
likely to have an even more damag
impact on the future of this Universi

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AWAREN ESS
ha',s good rbsns
assm ssi sms sess ls eslsissssi mem m a ma ism mis imis iem sseimis imi sem s~ nB y D a mtf e l S . Ca:
"market" of the corporate sector; it is a of public policy and social cost, the
The dominant philosophy in the United market of its own. It creates jobs and rhetoric of free enterprise philosophy
States is an old one. Yet the questionng provides needed services tQ its citizens. must end. Thus, polluters must share or
of this philosophy's major tenets and It also bails out the inef icient firms, pay all the costs of clean-up. Though con
presuppositions seldom goes on. Instead who, if left to the pure market system, sumers do in effect, demand the products
' we are offered for our mental consum- would be weeded out in the name of com- of these businesses, they alone can not be
ption the same hollow buzz words and petition. Such actions seem quite expected to pick up the tab for industry's
economic proverbs. which constitute the necessary, if only due to the "market spill-over costs. Natural Resource
remaining foundation on which this imperfections" of our economy. The loss economics notes how the consumer ends
philosophy can rest. Do the terms of of thousands of jobs from a Chrysler or a, u p ng for eveythinhg through a
"free competition," "marget regulatory Lockheed would be staggering to our variety of methods by which business
es mechanism," "unavoidable market im- economy. This fundamental interdepen- passes the cost along. Government
er Perfectons dueaosernment nte dence of government and private credits and subsidies, higher prices-in
to ference," and "laissez-faire" sound at all buginess changes the very nature of the, the endit is the consumer who directly or
familiar? More importantly, do they socio-economic game we play. Above all, indirectly finances any clean-up or policy
possess any real meaning? it renders mute the claims of private choice, while business' profits remain an
ill This country - and by that one can business that its actions and profits untouchable domain. Under such a
it only mean this country's leaders. - should be beyond the discretion of other system, business decisions can never be
n- would haveus believe tha the Unite sectors (i.e. government). Business must made responsible to the public interest
ng ates is one of the few remaining bastions answer to public needs as well as to their unless the corporate sector is made to
of liberal democracy. The media, the balance sheets.relzthtimutsaeheoclan 4
se politicians, but especially the corporate Concurrent with this undeniable link of realize that it must share the social and
ng leaders, continue to discuss our business and governments is an under- culaver costs generated bytchoose par
he economics in terms circa 1790. And why standing that there are criteria other employ. Only then will the safest and
he is that? Simply because it's good for than economic fir judging the value of a most sensible forms of development
business. The illusion of a free enterprise programsorsdecision.oThe historylofmour
n system can only be maintained through country's development is largely one of replae the mot conocal wh such a
d this game, and by blaming our problems blind growth and expansion, without The realities of our economic system
on the impedence of government. regard to the future costs and con- point to new criteria for assessing the
ey Yet one can not solve all our ills by the sequences that such growth may have goals (and the costs of hose goals) we
restoration of competition so that the generated. Decisions were based on cost have aa a nation. The.interdependence of
all market" can do its magic tricks-not any effciency alone. It is only recently that business and overnment creates a need
longer. The invisible hand of Adam social cost theory has begun to questiontg
er Smith does not guide our economy, but this mode of development and the ane a a t designed
m1 merely props up the remnants of an assumptions behind it. Thus the new
in- conoic ad soial hatserve the public interst. Thus, business in g
in- .. economic and social philosophy that criterion for judgung economic decisions general must subordinate its goals to
:at needs profound reexamination. To do is how best the public interest can be ser- that of the community, when the corn-
nt that, as well as to understand themyths ved. The arena for such determinations munity decides that such a poicy is o
that continued to be perpetrated around must necessarily be the political sector, thwhdee.dA newaphslosophy can be
us. whether it ba at the local or centralized devled A newthilosoph tcan
llylee.Tecneuneofayatn developed to fit this reality, one that can
}l level. The consequences of any action replace our present one. It may not be
ith GOVERNMENT PRESENCE in the will then be considered initially, and reas or s ne. It maywnot be
ax economy is both undeniable and quite weighed not just by the economic cost in- quite as good for business, but it will be
necessary. Consider this: Over 70 per voved, but by the social cost as well.
cent of our economy is devoted to a What must be understood is that these Pirgim A wareness is written and con-
ful service sector (health, welfare, gover- two criteria of development can work ceived by members of the Public In-
in- nment construction) completely in- together. On some occasions, business terest Research Group in Michigan,
in dependent of and larger than our dwin- profits should largely be left alone, in or-
ty dling manufacturing sector. Government der that private investment can be to advocate public interest in business
. thus does not impede the precious stimulated. But when there is a question and government.
nt-

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WASH INGTON WINDOW
Straw voting in Flonda
By Laurence McQuilan-

WASHINGTON - Jody Powell showed a
flash of annoyance that Teddy Kennedy had
decided to make' his position clear-the
Florida Democratic caucuses are not impor-
tant; the ones in Iowa will be the next true
test.
The Massachusetts Democrat, who has all
but officially thrown his hat into the ring,
recently told The Boston Herald American
that the Iowa caucus in January will be the
first real test of his political strength against
President Carter.
"If it's not important to him, they are
wasting a hell of a lot of .money and effort
down there," Carter's shief spokesman said
of the Florida contest.
KENNEDY SAID CARTER "effectively
has. an exploratory committee that is
organizing for him there. I don't have such an
organization, so I expect he will do very
well."
In fact, the Carter campaign people had no
intention of getting deeply involved in
Florida's ,ounty caucuses on Saturday until
the "Draft Kennedy" f6rces began to concen-
trate on it.
"This Florida business is something that we
certainly weren't looking for," Powell said.
"It drains away funds from us, from the Car-
ter-Mondale effort, that we would have to
spend next year in the primaries.'
THE FEDERAL ELECTIONS Commission

requires the Carter campaign to include the,
money-it is spending in Florida as part of the
spending limits imposed in candidates by law.
It ruled, however, that the "Draft Ken-
nedy" movement would not come under the
limitation because it is not under the control
of the individual, but an outside force trying
to convince him to run.
"We are simply responding to a rather
massive challenge there in the best way that
we can," Powell said of the Florida
situation, which experts believe now will end
in Carter's favor.
"We certainly wouldn't have picked it-we
didn't pick it. We didn't choose it. They did,"
Powell argued.
"If they want to cancel the radio time and
pull out their organizer and go back and
recollect their brochures, and so forth, they
might make a credible case they don't con-
sider it important."
POWELL ALSO TOOK a swipe at Ken-
nedy's comment that the state of the economy
woulddetermine whethe or not he would
challenge the president. He said he knew of no
"would-be challengers who were making
their decision on that basis."
The Florida straw vote mushroomed out of
proportion - basically because of the
seriousness with which it was approached by
backers of Kennedy and Republican hopeful
John Connally.
On Saturday, Democratic caucuses will be

held in all 67 Florida counties to pick
delegates to a state convention on Nov. 18 1
St. Petersburg. Their sole task will be to cast
straw votes-tell their own preferences and
nothing more. The real delegates represen-
ting the state party will br chosen in the Mar-
ch 11 primary.
REpUBLICANS HAVE an even more
casual approach. They are literally drawing
names out of a barrel to select the delegates
to a similar non-binding conclave on Nov. 17
in Orlando.
Millions of dollars, however, have been
spent by both Democratic and Republican'
candidates. The reasoning basically stems
from the 1976 campaign strategy of Jimmy
Carter. In Iowa, the man who at that time was
referred to as "a former peanut farmer"
managed to capture the Iowa caucuses.
That victory upstaged some of the other
Democratic contenders who had been concen-
trating on the traditional New Hampshire
primary and played a key role in turning the
references to Carter into "frontrunner."
In Florida, the Carter forces are now con-
fronted with the same strategy working-
against them.





0-.

Letters to

The Daily

,

To the Daily:
As a new member of the
University student community, I
was disappointed after attending
the September 21st Regent's
Meeting. The majority of these
financial "overseers" showed a.
surprising ignorance of the
situation regarding universities'
holdings in corporations doing
business in South Africa, a
general misunderstanding of im-
portant facts relating to this
issue, and a very disturbing un-
willingness to work with students
in an effort to achieve a har-
monious solution (or com-
promise).
In their approach to the admit-
tedly sticky problem of holding
.har ,c:., -n ,.nr innctha ar

numerous other universities for
the past four or five years. The U
of M Regents continue to stab
away at basic questions and poin-
ts without sense enough to study
what has happened at these other
universities where continued con-
flict between students and ad-
ministrators has been minimized
and constructive attempts have
been made to deal with the South
African situation.
The majority of U of M Regents
appear to be insensitive and
downright uppity. As if to say
"You can't tell us anything we
don't already know," the Regents
voted against accepting the
Regent-requested Senate Ad-
visory Committee on Financial
Affairs' Renort urging

structive action regarding the
South African situation must be
of great concern to all members
of this university.
-Seth D. Moldoff.
To the Daily:
This past Saturday some frien-
ds and I attended Mediatric's
showing of Sleuth. Before the
movie, without any prior war-
ning, they showed a very explicit
ten minute preview of The
Private Afternoons of Pamela
Mann. It is an X-rated hard core
pornographic film. We were very
offended, insulted, not to mention
uncomfortable. Sleuth is by no
means an X or even an R-rated
film. A preview of this caliber,
should not have been shown at

such a preview is going to be
shown. This way anyone who
would feel uncomfortable may
leave for a while or renter the
auditorium later, after the
preview is over. In any case,
their old system of handling
previews of this sort definitely
needs to be improved upon in the
future, one way or another.
-Joanna L. Jurmu
to the Daily:
We wish to commend ]Professor
Bert Hornback for his scathing
social commentary in Thursday's
(Oct. 4') Daily. Although thinly
disguised as an article about In-
complete Forms, it is obvious to
any discerning reader that

o " r '
d