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January 14, 1972 - Image 6

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Publication:
The Michigan Daily, 1972-01-14

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Page Six

THE MICHIGAN DAILY

Friday, January 14, 1972

Pae i TE IHIAN DIL| Fiay|Jnar|1,192

§ §
van Boven's
Semi-Annual Sale§
- §
§ §
§Fine Clothing and Furnishings §
at Reductions of 20% to 50%.
§ All items chosen for this sale are from our
§egular stock. They represent excellent
§vaues and are reduced for§quick clearance. §
§
ti Store Hours-Monday thru Saturday 9:00 to 5:30 §
§
§ §
§ §
A NN A RB OR D E TR O IT
326 S. STATE 41 ADAMS EAST
4§ i
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Ackley: Advisor to the Dems

Continued from Page 1)
one associate has said, "He's a
good economist who does his
homework."
Despite their University alliance,
McCracken and Ackley have heldI
posts in opposite administrations-
McCracken under Eisenhower and
Nixon, Ackley under Kennedy and
Johnson.
Recently, in fact, the two havea
become indirect adversaries. Ack-'
ley, in his position as chairman of,
the Committee of Economic Af-
fairs of the Democratic Policy
Council, has been charged with
the task of formulating alterna-9
tives to the Nixon-McCracken
economic program.
Ackley has long been a propon-
ent of the "new economics" which
concerns itself with molding and
shaping the economy, advocating
strenuous use of fiscal policy. He
has been interested, since World
War II, in the use of wage and!
price guidelines and controlsj
where inflation is a problem.
During his tenure under John-
son, the administration followed
a policy of increased spending with
balanced budget deficits.
During those years, the economy
was in a boom period, with low
unemployment, high demand and
threatening inflation.
At that time, Ackley warned of
a recession in which unemploy-
ment would increase, while infla-
tionary pressures would continue
to build. He predicted that the
phenomena of "cost-push infla-
tion" would replace demand-pull
inflation and that prices and
wages would spiral.
Sans Souci
shoes that make
legs look great
SALE
20%-50%
OFF
on many styles
522 E. William
Ann Arbor
761-9891

Cost-push inflation occurs when,
rising costs, most noticeably those
of labor, occur despite the lack of
high demand.
The early policies of the Nixon
administration attempted to curb
inflation by cutting spending,
working toward a balanced budget
and decreasing demand. Many
economists speculate that the fail-
ure of Nixon's'early policies might
well have been due to the concept
of cost-push inflation which Ack-
ley suggested.
When President Nixon an-
nounced his "new economic pol-
icy", formulated under direction
from McCracken, it drew from
many policies that the Democrats
had been calling for.
Wage-price controls have long
been the darling of Ackley and the
Democrats. Ackley, who served on
the wage-price commission during
World War II and the Korean war,

ideally favors guidelines based on
education and persuasion while
avoiding restrictive controls which
might put government in too pow-
erful a position.
Ackley's statement for the Demo-
cratic Policy Council bears his
early thories out. In response to
Nixon's policy, the Council called
for a "flexible and viable" system
which would "effectively curb in-
flation, yet avoid the inequities of
the freeze."
Unlike McCracken's statement to
the contrary, Ackley appears to
have no plans to stay out of pari-
san politics. Most political ob-
servers expect he will be in the
thick of the campaign battle and
may well be back in Washington
if the Democrats win control of the
Presidency.
The University's long tradition of
economic involvement in Washing-
ton may yet be extended.

I

McCracken talks on term

(Continued from Page 1)
shaping the President's new eco-
nomic policies.
He speaks about his time on{
council almost as if it were an in-
tellectual exercise.
"For a student of economic
policy," he says, "it was an un-
usually interesting period precisely
because the problems were so dif-
ficult."
As part of this academic orien-
tation, perhaps, McCracken pro-
fesses a lack of interest in partisan
politics.
"I'm thinking of doing some
writing on the professor's role in
partisan politics," he says. "One
of these roles ought to be as critic
- that is, evaluator - of public
policy."
"If you are identified with the
opposition and you criticize the
administration, everyone s a y s]
'Well, of course he's going to say
that.'"r
In explaining his reasons forI
arriving at decisions on the Coun-
cil, McCracken refers frequently to

"pretty wide agreement on the
part of economists." And he seems
to try, to avoid making generali-
zations that cannot be supported
academically.
In spite of his claim that he is
not interested in politics, however,
McCracken has served on three
different occasions in the federal
government.
Accordingly, he seems to accept
the politics involved in economic
decision making in Washington.
"Anyone who became chairman
who didn't understand that this is
a council of economic advisors and
not a council of economic man-
agers would find himself frustrated
that other people seemed to be
dealing themselves in also," hel
says.
But he denies that the frustra-
tions of policis in Washington in-
fluenced his decision to resign.
"Oh, when I went down I actual-
ly was not planning to stay more
than two years," he says.

4 '

A

-Daily-Jim Judkis

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retirement.
Weekend Trip To
Collingwood, Ontaro-Jan. 21-23
MEETING: Fri., Jon. 14
at 7:00 P.M., 3529 SAB
or
Go to Ski Club Office (2nd f I SAB)
Tues., Jan. 18, 1-5 p.m.
SKI CLUB MASS MEETING
Thurs., Jan. 20, 1972
7:30 P.M. Union Ballroom

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Reading to an Ann Arbor Merchant.

DATE: Monday, 17 January 72
PLACE: 200 Lan

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