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Eighty-one years of editorial freedom
Edited and managed by students at the University of Michigan
Behind the closed doors of a Regents reeting
by lndisay hcNaey
420 Maynard St,.Ann Arbor, Mich.
News Phone: 764-0552
Editorials printed in The Michigan Daily express the individual opinions of staff writers
or the editors. This must be noted in all reprints.
FRIDAY, DECEMBER 3, 1971
NIGHT EDITOR: ROBERT SCHREINER
Funding college governments
STUDENTS VOTED last month to assess-
themselves 50 cents per term to
fund their respective school and college
At the same time, a proposal to in-
crease the campus-wide Student Govern-
ment Council funding from 25 cents per
term to 85 cents per term was narrowly
defeated. It thus appears that while stu-
dents here do not believe SGC' deserves
additional funding to expand its services
they do want their several smaller gov-
ernments to be able to function.
Yet before, the money voted upon can
be distributed' to the various govern-
ments, Vice President for Academic Af-
fairs Allan Smith must approve the re'f-
erendum and bring the item to the Re-
gents. Smith has discussed the funding
matter with the other Executive Officers
and the various school and college deans
and has met with favorable response, but
,he indicated budgetary problems might
hinder its implementation.
Since the approved funding amounts to
one dollar per year, Smith said it is un-
likely the Regents will increase tuition.
by that amount.
And since administrators have reacted
favorably to the proposal, it is not likely
that the Regents will vote it down, despite
the present tight budget situation.
The 13 school and college governments
now operating .have been notorious for
their lack of energy and effectiveness.
Much of their problem, however, stems
from acute financfal distress, which
would be alleviated by institution of the
HIIIREE OF the - University's smaller
schools-- Architecture & Design (907
students), Natural Resources (819 stu-
dents), and Pharmacy (409 students) -
have no student. government whatever,
leaving over 2,000 students without a
student academic governing unit. If fund-
ing were available to these units, then
they, too, could arrange a student gov-
It is certainly not possible in any case
that these smaller governing bodies would
attain the comprehensiveness that could
be expected of a larger group, but they
could at least attain a stature similar to
that of departmental, associations which,
now, exist in larger colleges and schools,
allying students of similar academic
The units which currently have no fi-
MORT NOVECK, Sports Editor
TERRI POUCHEY .......Contributing Sports Editor
BETSY MAHON .. ........Senior Night Editor
TERRI FOUCHEY. Contributing Sports Editor
SPORTS NIGHT EDITORS: Bill Alterman, Bob An-
drews, Sandi Genis, Joel Greer, Elliot Legow,
John Papanek, Randy Phillips, Al Shackelford.
nancial problems also welcome implemen-
tation of the funding proposal because it
would enable them to reallocate their
present funds. For example, the Law
School's student government has a budget
of $18,000, half of which derives from
pinball machine revenue, and half from
a $10 per student fee payable each term.
Some of the term fee intake finances pro-
grams other than the student govern-
ment; this portion, presumably, would be
retained, but certainly the set fee could
Business Administration and Engineer-
ing school student governments both re-
ceive allocations from their deans; these
allocations could be eliminated with the'
advent of student funding.
MOST OF THE University's schools and
colleges have existing student gov-
ernments but these units are not finan-
cially stable, and depend on meager al-
lotments from their deans and executive
The programs envisioned by the various
student governments - newsletters, sur-
veys, course evaluations, complaint serv-
ices - do not lend themselves well to ad-
ministration funding. It is highly improb-
able that the administration of any Uni-
versity unit should .want to fund an or-
ganization which might work against it.
Thus, while the school and college gov-
ernments are not primarily political or-
ganizations, but rather student service
groups with an academic focus, it is in
the best interests of both students and
administrators that these groups be in-
dependently funded by their constitu-
And in a broad sense, when students
have voted to tax themselves so as to
increase the effectiveness of their own
governing units, it is hardly reasonable
not to comply with this vote. The various
schools and colleges stand to benefit,
since the allocations now earmarked for
student government may be appropriated
Further, the University community as
a whole stands to benefit from the pres-
ence of more effective academic govern-
EACH OF the, various units have cer-
tain plans for spending their 50 cent
allotments. Not all of these ideas are ex-
emplary, to be sure, but the need for in-
creased funding - preferably from stu-
dents - is a very real one. The literery
college student government, for example,
has no telephone because it "cannot af-
ford one. And this situation is in the larg-
est college within the University.
Thus neither the lackluster perform-
ances of some student academic govern-
ments nor the comfortable financial po-
sitions of some others should be a barrier
to implementing the school and college
government funding proposal.
--ROSE SUE BERSTEIN
EVERY MONTH the Regents come to
Ann Arbor for two days of meetings-
some open to the public and some not.
Naturally, the real decisions are made at
the closed meetings which are usually held
on Thursday evenings in the formidable
Inglis House - maintained especially to
service those august personages.
As a public service to further the con-
tinued quest for knowledge, this n e w s-
paper now presents a partial transcript of
proceedings at the last closed meeting -
btained from a "reliable source" in the
FBI sense of the word.
* * *
VOICE A: Our next item to consider is
an offer to endow an academic chair./
VOICE B: How much are they giving?
VOICE A: Exactly $800,000.
VOICE C: I move to accept the gift.
VOICE A: Don't you want to know who's
giving the money?
VOICE C: If it's that much it doesn't
make any difference.
VOICE D: We've never had an endow-
ment like that. I second the motion.
VOICE E: Well, Just for formality's sake,
who's giving it to us?
VOICE A: The donor is the Teamsters
Civil Rights League, and they would like to
call the chair the Joseph Columbo Professor
of Income Tax Analysis.
(Ten seconds of silence.)
VOICE E: Well, I, ah. . . without mean-
ing to slander anyone, this seems a bit
VOICE B: There occurs to me some
doubts concerning the source of this en-
VOICE C: I don't see that it matters
where the money comes from as long as it
VOICE E: I'd say in this case there is
a considerable possibility that the money
we would be accepting was ill-gotten.
VOICE C: Why are you so suspicious?
We never questioned 'donors before.
VOICE B: Our previous donors have all
been honest, upright businessmen.
VOICE C: I'm sure these donors are busi-
VOICE E: But these donors got their
money by exploiting labor, exploiting cus-
tomers, selling inferior products at inflated
prices, and engaging in cutthroat compe-
VOICE C: You might be right, That cer-
tainly sounds dishonest.
VOICE D: But can we turn down the
money just because the donor is a crook?
VOICE C: Isn't that discrimination of
VOICE E. I'd say that morally we have
to turn it down.
VOICE C: Maybe we could get them
to change the name of the chair.
VOICE B. Now that's an idea. A better
name would make them honest.
VOICE E: Now why didn't we think of
VOICE D: We sure are smart.
Inglis House: Closed doors
TWO MAJOR events in the last
six years have severely shaken
the American economy and have
led to the current economic crisis.
The first great destabilizing fact-
or was the decision by the John-
son administration to try to hide
the cost of the war in Vietnam
from the American people.
To do this, Johnson -did n o t
raise taxes nor did he borrow the
money by selling government
bonds. Instead, by increasing the
supply of money in the economy
(only the government can counter-
feit legally), inflation was gen-
erat'ed between 1965 and 1969. In-
flation, through deterioriating pur-
chasing power, imposed an invol-
untary and unratified tax on the
people to pay for the war.
Through 1969, the amount of
this reduction in the actual earn-
ings of working people was ap-
proximately 130 to 140 billion dol-
lars. Interestingly enough, t h i s
was about the cost of the war:;
more interestingly the effect of
the war and inflation on corpor-
ate profits has been, if anything
positive. One concludes accordingly
that the Johnson regime did in-
deed succeed in forcing wage and
salary earners to provide from
their income the goods that have
THE RESPONSE to this policy
was the second great destabilizing
force in our economic life. Around
1967, working people began to raise
wage demands in order to get
back some of the "inflation tax"
of 1965-1967 as well as to hedge
against a continuation of that tax.
In the earlier period, govern-
ment war expenditures, the in-
crease in the money supply, and
the fall of real wages (that is,
what goods and services can be
bought with one's take-home pay)
relative to productivity because of
the inflation tax led to falling un-
employment rates. The new de-
verted with changes in.
The objectives of the NEP are
to reduce inflation to * 'to 3.per
cent per year and to reduce unem-
ployment. It is , more than ob-
vious, however, that Nixon is con-
cerned only with the inflation prob-
lem. The expansionary, employ-
ment creating provisions .or both
Phases are token measures at
best: The acceleration of personal
income tax exemptions is not only
regressive in its impact' givig
larger tax reductions :n higher ir.-
come categories), but negligible
Demonstrators protest 'Nixonomics' in Detroit last September'
mands for reasonable real wages
increases relative to productivity
meant continued inflation - but
when the government began to lev-
el off its war and defense spend-
ing and the rate of increase of the
money supply, growing unemploy-
The freeze aims at one thing
only: turning back this demand by
labor for return of the real wages
lost through inflation. That is
the freeze is an attempt to re-
create once more the social condi-
tions of the early war period
when labor was docile and accept-
ed 3 per cent to 5 per cent wage
increases in the face of 4 per
SINCE LABOR wouldn't volun-
tarily assume the economic burd-
en of the war, if the regime can
now coerce labor into acceptance
of the war cost, then inflation
shall no longer be necessary.
It must be pointed out that the'
poorest members of society will
suffer the worst consequences of
Nixon's "new prosperity." Non-
unionized members of the l a b o 1
force without the benefits of or-
ganized political pressure and re-
presentatives on the Pay Board
will fare even worse than organiz-
ed labor. Nixon's proposals for wel-
fare reform and for revenue shar-
ing, as defective as they might
be, were postponed and m a n y
states are actually cutting wel-
fare payments. Federal govern-
ment employment and expendi-
tures will be cut, but none of the
cut will be in defense and war-
related categories. The billions of
dollars of tax savings to corpora-
tions that will result from t h e
investment tax credit could fi-
nance job training and job crea-
tion for the 5.8 million unem-
Of course, other solutions are
possible. For example, the regime.
(hardly this one!) might tax away
from the plant owners some five
per cent of their wealth and use it
to pay an indemnity to working
people for the losses suffered
through inflation. This would also
PHASE II of the Nixon prgrami
sets up "participatory" commit-
tees to develop and administer
controls on wages and prices. The
complete structure is dominated
by big business. For example, the
pay board is composed of five rep-
resentatives of big business, five
of labor, and five (supposedly rep-
resenting the public.
Ostensibly, the basis of govern-
ment is protection of public wel-
fare, and the goal of public policy
should be to develop programs de-
signed to serve the public inter-
est. One might question the valid.
ity of including five representa-'
tives of big business, who after all
only represent 0s2 per cent of the
population (but own over 65 per
cent of all privately held corporate
At the very least the so-ca?. 'd
public representatives should be"
chosen so as to insure that the
majority- of the pay board would
renresent the interests' of the other
99.8 per cent of the population.
However. Nixon has appointed,
as "public" representatives, men
such as William G. Caples. Caples
has been a general attorney frr
the Continental Casualty Compa ny
a director of Inland Steel Contain-
er Corp. and Vice-President of
industrial and public relations for
Inland Steel Co. in which posi-
tirn he was. in charge of c:ntract
bargaining for the company against
the United Steel Workers Union.
He is currently a member of 'he
board of directors of Inland Steel
Products, and a member of the
American Management Association
and the National Association of
UNFORTUNATELY, the' op, ra-
tive assumption of the Nixon re-
gime is that what's good foi- Gen-
eral Motors is good for the coan-
try. The first major decision of the
pay board was to vote 10-5 agairilt
labor, to deny retroactive nay n-
creases which had already been
contracted before the freeze.
It is far from certain that te
investment tax credit will signi-
ficantly stimulate new investment.
Even if it does it will be several
montls, perhaps a few years, be-
fore the effect is felt.
And even if new investment is
encouraged the employment-cr at-
ing effects of that new investment,
are highly questionable.
Can NEP stem the tide ; of in-
flation?That depends primarily
on labor. If they refuse to cooper-
ate with the Pay Board and i t s
wage increase ceiling, then Phase
II is doomed. If ,they agree to
pay for the war and mounting de-
fense costs without complaining,
then inflation may be tempered.
However, control of inflation in
this manner implies a continua-
tion of controls indefinitely; once
they are removed, inflation will
reappear. Controls and regulatory
boards do not change the iStitu-
tional and structural contradictions
of the American economy shich
led to inflation and unemployment.
ULTIMATELY. CRITICISM of
the internal functioping of Nixon's
prcgram is secondary to considera-
tion of the role which gov nment
'should play in protecting public
interests and of the role it does
play in protecting business inter-
We can have new economic poli-
cies and new game plans ;'or years
to come. But none will succeed and
all will help the rich at the ex-
pense of the poor until we have
a policy that sis really new; that is,
until those who formulate and im-
plement government policy realize
that there are vast differences be-
tween business interests and the
Letters: Rackham government needs candidates
To The Daily:
ELECTIONS for the Rackham Stu-
dent' Government are now underway.
In order to avoid effectively disen-
franchising students whl do not have
easy access to campus polling places the
current Executive Council has 'decided
to condtic't the election by mail. Bal-
lots will be maed out during the week
of December 6, to all currently enrolled
Rackham students. This method makes
it possible for a far greater constitu-
ency than has ever voted in campus
elections to make its feelings known.
However, the small number of can-
didates who have thus far filed for the
election is disappointing.. Eight full-
term and two half-term seats on the
Executive Council must be filled at
this election, as well as the offices of
President and Vice-President of the
Rackham Assembly. There is, perhaps,
good reason for graduate student apa-
thy toward student governments in
general; our experiences with such gov-
ernments here has not been very good.
But RSG was created to represent
Rackham .students and protect their
interests-a function which was not
performed by either the now-defunct
GA or by SGC.
ed by the University in teaching, re-
search and staff positions.
-The RSG is still evaluating an ad-
ministration proposal for a new fee
structure for doctoral candidates. This
proposal is intended to rectify some of
the inequities that exist under the pres-
'ent structure, but as it stands may
create new ones. This issue and its
resolution will affect you both finan-
cially and academically.
-All of us have heard about and
worried about the increasing tightness
of the Ph.D job market. This is a
problem that cannot be dealt with by
any one university. RSG is planning
to sponsor a symposium to which
speakers, educators and students from
all over the country would be invited,
to evailuate this trend and its impli-
cations for the structure and very fu-
ture of graduate education.
WITHOUT ACTIVE support from the
graduate student body these and other
important projects cannot be carried'
through. We need your participation in
the election to back up our arguments
to the University Administration. We
need volunteers to help plan and co-
ordinate the symposium. Above all, we
need candidates for the current elec-
tins. nounnI who are willing tn ogive
To The Daily;:
I READ WITH much dismay (Daily,
Dec. 1, 1971) that the editorial page is
to be opened on a weekly basis to John
Sinclair, chairman of the Rainbow Peo-
ple's Party. Sinclair's integrity cannot
be impugned, nor his extreme brilliance.
Certainly his writings are preferable to
those outpourings from the bowels of
his vastly inferior, highly frenzied com-
What is important, however, is that
the ideology of Sinclair's group is
strikingly similar to the Nazi ideology.
The Rainbow Party identifies itself
with and glorifies declassed elements in
our society. These are the very people
who joined Hitler's S.A. (brown-shirts).
Intellectually this grouplet has cre-
ated a nightmare eclectic of astrology,
pop culture, nationalism carried to its
logical insanity, and badly digested
These "romantic numbskulls of the
dark forest" (as Trotsky once labeled
the Nazis) are worth taking seriously
only to the extent that they must be
discredited and possibly eventually
smashed. They certainly should not be
published on a regular basis in The
offer a chorus of
orchestra of the
forces for which
20 to 30 and an
Let us for once have the work with-
out the fatty deposits that have ac-
crued to it over the years.
And if such an event were to occur
in Ann Arbor (there has been ample
precedent for it elsewhere) I would
be the first to shout "Hallelujah!"
-Jim Toy, Grad.
To The Daily:
A LITTLE MORE than a month ago
the Mayor asked the City Attorney to
explore the possibility of a court chal-
lenge to certain University of Michi-
gan property tax exemptions. This
seems reasonable, since the University
offers housing, food and drink, book-
store, etc. in competition with local
businesses which do pay property tax.
However, it seems to place the Mayor
and two councilmen who are also em-
ployees of the University in a conflict
of interest position.
Should persons who hold an office,
While strict wage controls will
be easy to implement with high
wage visibility and employer co- This article was written by a
operation, price controls will be group at Michigan State University
much harder to police. There wJl including members of the Union
be direct government price uper- for Radical Political Economics
vision only for a smel number 4o
the (largest) corporations, a n d New University Conference and
price controls can be easily sub- International Socialists.