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 /l/ I l' :. i