The Michigan Daily-Friday, July 27, 1979--Page 11
AUTO INDUSTRY SHUTDOWN MAY COMPACT SLOWDOWN:

Michigan will experience mild recession
LANSING (AP)-Michigan will summer job seekers leave the market, benefit by the number of factories, of- Roberts said, but the size of
weather a mild recession during the a UAW strike would push the jobless fices and stores going up in the state crease would depend on the leni
last months of 1979, but the downturn's rate upward. now." autoworkers'strike.
severity rests on the success of "A long UAW strike would be very Verway predicted employment might ALTHOUGH STATE revenu
President Carter's energy program, hard on the state's economy and take rise as early as the mid 1980s because of up slightly in the first months o
government and private economists away from any growth," Verway said, the influx of young people into the job mild recession could force with
say. Although the next few months look market will taper off due to a lessening from the state's $225 million
Recovering from the slump could bleak, the MSU economist said finan- of the effects of the baby boom of the stabilization fund, he said.
take through early 1980 and unem cially better times are ahead for - late 1940s and early 1950s. Revenues now are predi
ployment during the period could reach Michigan. The welfare case load will up by slightly less than one per cent l
as high as nine per cent for the first "TWO OR THREE years down the about three per cent, or 6000 cases, the legislature's $4.6 billion
time since August 1977, the economists road," he said, "employment will during the recession, state economist budget.
said in interviews with UPI.__
The impact of federal energy policy
on Michigan's auto and tourist in-
dustries will determine how well the C A S F E D E T S N
state gets through the recession, they
said.
"THE RECESSION will be mild in
the sense that unemployment won't be ...
that severe," said economist Ronald ...
Marks of Manufacturers National Bank
of Detroit. "But inflation will be more
of a problem because it hits all of us, not
just those out of a job."
A cross-section of economists
described the state's economic outlook
as "shallow," "no growth," "flat," and
"sluggish." Student Newspaper at The University of Michigan
Several of the economists agreed a
United Auto Workers (UAW) strike
during the current round of contract
talks would not severly affect the
state's economy if the walkout lasted
less than a month.
Douglas Roberts of the state Depar-
tment of Management and Budget
said Michigan could recoupelosses from ---- - m --- . WRITE YOUR AD HERE!--------- .-
such a walkout with increased overtime rH
and additional production after a set-
tlement is reached.
But both agreed a longer auto in- -
dustry shutdown would leave the state's
economy ina precarious position. M '
MICHIGAN STATE University
(MSU) economist David Verway noted
that although the state's unemployment
rate generally dips in October, when

the in-
gth of an
es were
of 1979, a
drawals
budget
cted at
ess than
1979-80


'Dream
car' gets
80 mpg?
Continued from Page 3
cars with much lower mileage ratings.
"It can't be judged with other
vehicles," he claimed, "because the
mileage is so much better."
Amazingly, Shetley said he doesn't
see his modified Capri as an answer to
the energy shortage. "Maybe if
everyone were making them," he said,
adding that the EPA probably would
not allow the construction of the car
without drastic changes in air pollution
controls.
He said the Americans should realize
they are being "ripped off" by General
Motors,ethe Organization of Petroleum
Exporting Countries, the EPA, and
others.
Shetley's car is the same "Moody
mobile" which received so much
publicity when it was first introduced a
few months ago. But a TV reporter
from Orlando, who has been covering
the story since its beginning, said
Shetley and his chief mechanic "are
just a couple of backyard mechanics"
who stumbled on the ideanfor this car h

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