The Michigan Daily-Friday, March 2, 1979-Page 9
Brown aflacks Carter's budget
(Continued from Page 1).
It's not an accident that so many in-
cumbents are getting thrown out of of-
fice," Brown said..
BROWN MOVED to block criticism
from the left that the balanced budget
- and the call for a constitutional con-
vention - is against the interests of the
poor. "We've hao unprecedented deficit
spending and I don't see where a lot has
improved in the South Bronx," Brown
said. Instead, he sees the present deficit
course as "a fraud on the poor. Inflation
erodes the welfare checks, erodes the
fixed incomes of senior citizens, and
erodes the confidence of the American
people."
Brown wants the requirement for a
balanced budget written into the con-
stitution, and he used his January 8
inaugural address as the forum to laun-
ch his campaign for a constitutional
convention. Thirty-four state
legislatures must ratify the proposed
convention, and twenty-nine have
already voted approval. Brown was
dealt a minor political embarrassment
when the state legislature of his own
party in California rejected the
proposed convention, while voicing ap-
proval of a balanced federal budget.
Brown was quoted as saying the
California vote was only a "temporary
setback." The governor has also said he
believes Congress will move to
originate the balanced budget amen-
dment, if it appears likely that the thir-
ty-four states will vote for the conven-
tion.
"In the minds of some, it's
dangerous," Brown said of the conven-
tion. "In the minds of others, it's trivial.
In the minds of others, it's oppor-
tunistic," he said. But Brown added, "I
rest my case on the simple proposition
that (the budget) should not be un-
balanced every year."
BROWN REPEATED intermittently,
"We need a philosophy that builds for
the future, not steals from it.
"After a decade of excesses - ex-
cesses in Vietnam,, excesses in
Watergate, excesses in deficit spending
- it's time to balance our budget, not as
an end in itself, but as a way of building
for the future."
The Carter administration's
proposed 1980 budget includes a $29
million federal deficit. It was Carter,
running as the Washington outsider in
1976, who railed against deficit spen-
ding by the previous Republican ad-
ministrations and promised to work to
balance the budget by 1980.
JERRY BROWN is now the
Washington outsider, and sounds
remarkably like Carter did three years
ago when he speaks of "the decline in
confidence in the American system."
Brown entered the 1976 primaries late,
but defeated Carter in every state
where both candidates were on the
ballot.
Sec. of State Richard Austin, who
presided over the luncheon, asked
Brown whether painting him as an
early 1980 candidate was "an accurate
assessment." Brown replied, "Well, it's
an assessment many have made. I
think that's all I'll say on that subject."
Later, at the press conference, Brown
said, "I'm not going to contrast my
views with the President's." He did
add, however, "I would say it's a
hazardous time for any incumbent."
Wihen one reporter asked, "What will
it take?" for Brown to finally make his
decision on 1980, the governor pointedly
replied, "Time."
"I don't want to appear evasive,"
Brown said later, "But I think a
decision of this kind takes a certain
amount of reflection - more than I've
given." He did say, in answer to one
question, that if he did choose to run, he
does. not feel being "another
newcomer" to Washington will be a
handicap. Brown said as governor of
California he is more experienced than
Carter was, since "If you're talking
about California, you're talking about a
nation-state in itself."
Economic in
(Continued from Page 1)
when combined with a variety of other
recent government statistics, paints a
bleak picture of the economy:
* Consumer prices jumped 0.9 per
cent in January as food, health and
housing costs continued to climb;
" Prices received by farmers rose
three per cent in February, the third
consecutive increase. These often show
up later on grocery store price tags;
* New housing construction plunged
to its lowest level in two years in
January as costs and interest rates
began affecting home buying;
" The nation's trade deficit grew
from $1.8 billion to $3.1 billion in
January, the biggest monthly deficit
dicators show slowdown
since February 1978;
" Personal income grew by 0.4 per
cent, about one-third of the December
increase. Consumer spending also
began to slow down;
However, the unemployment rate
dropped from 5.9 per cent to 5.8 per cent
and orders received by factories for
heavy-duty products rose by a strong
4.1 per cent.
A big decline in building permits was
the main reason for the 1.2 per cent
drop in the leading indicators in
January. Permits declined from by 18
per cent to an annual rate of 1.4 million
units.
The January report also showed a big
decline in the money supply, which
would be bad for economic growth but
encouraging in the fight against in-
flation. Cox said the money supply
figures were distorted by new kinds of
checking accounts and that the depar-
tment is trying to readjust its figures.
The department tries to adjust its
figures to account for seasonal
variations, but the index has fallen in
five of the last six Januarys. The index
now stands at 136.5, meaning that
economic activity in the 12 indicators is
36.5 per cent stronger than in the base
period of 1967.
Daily Photo by CYRENA CHANG
California Governor Jerry Brown criticized President Carter's deficit budget in a
speech before the Detroit Economics Club yesterday.
Ford
criticizes
Carter's
policies
(Continued from Pige 1)
doned what the President (Carter) said
our relationship was with Iran."
Ford also said that when he recently
met with the Shah of Iran, the Shah ap-
peared "physically and mentally
strong" and "showed no bitterness"
about the situation which forced him to
resign his leadership of Iran.
:THE FORMER President spoke
briefly about the proper role of the
United States in the Chinese-
Vietnamese dispute, saying only
cautious diplomatic steps should be
taken.
"That conflict has serious and
dangerous ramifications," Ford said.
"The United States should keep its cool,
the United States should keep at arms
length, and not side with one country
against the other."
On University issues, Ford said he
did not think the federal government
should give direct financial aid to
colleges in serious financial trouble, but,
said he favors a continuance of grants
and loans to students.
1I HAVE GREAT reservations about
the federal government directly fun-
ding institutions of higher learning," he
stated. "I firmly believe that it is essen-
tial to continue loan and grant
programs to students if we're going to
keep young people going to our in-
stitutions. That's a better way than
direct payments to the universities
themselves."
In his morning lecture, Ford also in-
dicated that Carter might have
problems in a Democratic bid for
President in 1980. He said that Califor-
n a Gov. Jerry Brown is "watering at
toe mouth" to be a candidate, and that
hp (Brown) may seriously jeopardize
darter's chances for the Democratic
nomination.
At Ford's afternoon lecture to three
c mbined political science classes,
Which was closed to the press, students
said Ford discussed SALT negotiations
before opening the floor to questions.
According to one student, Ford's lec-
ture did not leave her spellbound. "I
ply more attention to Jake (Political
Sfience 160 instructor Prof. Harold
Jacobson) and that's pretty bad," she
said jokingly.
Now comes Miller time.
Come browse
through our
Green House
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