100%

Scanned image of the page. Keyboard directions: use + to zoom in, - to zoom out, arrow keys to pan inside the viewer.

Page Options

Download this Issue

Share

Something wrong?

Something wrong with this page? Report problem.

Rights / Permissions

This collection, digitized in collaboration with the Michigan Daily and the Board for Student Publications, contains materials that are protected by copyright law. Access to these materials is provided for non-profit educational and research purposes. If you use an item from this collection, it is your responsibility to consider the work's copyright status and obtain any required permission.

June 18, 1971 - Image 2

Resource type:
Text
Publication:
Michigan Daily, 1971-06-18

Disclaimer: Computer generated plain text may have errors. Read more about this.

Page To

THE MICHIGAN DAILY

Friday, June IS, 1971

Page Twa THE MICHIGAN DAILY Friday, June 18, 1971

W ~, DIAL 5-6290
DOORS OPEN 12:45
603 E. Liberty Shows at 1 -3-5-7-9
"REWARDING,
ABSORBING! A tender, funny,
realistic story!"-Long Island Press

McCracken: Economic growth too
slow to alleviate unemployment

4

WASHINGTON VP) - Univer-
sity economist Prof. Paul W.
McCracken, chief economic ad-
visor to the Nixon administration,
says the economy is moving too
slowly to cut into the high rate
of unemployment, a prime ad-
ministration goal.
Dr. McCracken, chairman of
the Council of Economic Advis-
ers, said the President will de-
cide in July or August whether
to stay with present policy or
propose new economic stimulants,
such as a tax cut.
In an interview with The As-
sociated Press, the economist
supplied the first official word
that the administration is dissat-
isfied with the pace of the eco-
nomic recovery.
McCracken said he thought eco-
nomic statistics for April, May
and June, including the quarterly
Gross National Product figures,
will reflect a "substantial, and a
pretty good, expansion by histor-
ical standards."
"At the same time," he said,
"we have to recognize that the
expansion is not yet moving fast
enough to eat into the unemploy-
ment picture. And I think it is
important for us to achieve the
degree of economic expansion
which will do it."
Nixon embarked on an econorsi-
ic expansion program this year
to trim the unemployment rate,
which rose from 3.9 per cent of
the work force in January, 1970,
to 6 per cent in January of this
year.
Last month, the figure movcd
up to 6.2 per cent, instead of de-
clining as anticipated,
The President had projected a
9 per cent increase in total eco-
nomic output this year as being
the rate of expansion needed to
reduce unemployment below 5
per cent by the end of the year.
Stepped-up federal spending,
with budget deficits totaling $3

billion in fiscal 1971 and 1972, and
an expansive monetary policy by
the Federal Reserve, were count-
ed on to help.
"I suspect that we have not
yet seen the full effect, of those
policies translated into the econ-
omy," he said. "As to whether
what has been going on is what
we want to stay with throughout
the year, we'll have to evaluate
that."
Nixon said in a news confer-
ence last month he would decide
whether to propose additional tax
cuts of other measures to further
stimulate the economy after see-
ing the results of second - quar-

an expansion that is vigorous
enough to begin working down
unemployment."
McCracken would not predict
whether the administration would
move faster in specific situations,
such as this year's steel negotia-
tions, to hold down wage and
price increases.
"The Consumer Price Index
has done fairly well lately, rising
at the rate of about 3 per cent
per year," McCracken said,
"The tendency of raw materials
prices and industrial prices at
the wholesale level to rise more
rapidly is disturbing, but I would
be very surprised to see the
Consumer Price Index on a sus-
tained basis going back up to the
levels in 1969 and 1970."
McCracken said appropriations
approved so far by Congress raise
the possibility .of exceeding the
spending level set by Nixon's
"full-employment budget" for
fiscal 1972.
The President has scheduled
federal spending at a level
slightly below the revenue that
would be coming in if the econo-
my were at full employment. To
exceed that level would be infla-
tionary, Nixon said in his Feb-
ruary budget message.
McCracken indicated that, be-
cause of the job problem, the ad-
ministration is less concerned
about a deficit.
"In terms of the very near-

A Robert Mulgan/Richard A Roth Production
JENNIFER O'NEILL GARY GRIMES - JERRY HOUSER - OLVER CONANT
Writtenby ' Produced by Directd by cby
HERMAN RAUCHER RICHARD A. ROTH ROBERT MULLGAN MICHELLEGRAND
The complete sound track music by Michel Logrsnd TECHNICOLO. m
svaiiable an Warner Oros. records fo ae rs inyL

The University Cellar
ANNOUNCES A WEEK LONG
DOPE SALE
a joint effort of the record and book* departments
20% off all authors whose names
begin with one of these magic letters
D,O,PorE
-also-
$4.98 ist records... . ...$2.99
$5.981list records.. ......$3.49
forall record artists according to the same rule, right?
Sale begins
Tues., June 15 through Sat., June 21
IN THE BASEMENT OF THE UNION
HASH special on books Wednesday. H, A,;& 5 25% off

Prof, McCracken term economic situation, one
could make the case that there
ter economic statistics, most of is slack in the economy, this is
which will become available in not all that serious," the White
July. House adviser said.
McCracken said it was not un- He added, however, that "the
usual for unemployment to re- basic guideline of keeping expen-
main high for six to eight months ditures within full employment
after an expansion of business
activity resumes. receipts is still a pretty good rule
"What we just may be seeing to keep the budget from getting
here is that businesses last year too far off the path."
took unusually strong measures
to cut their costs," he said. . Daily Official Bulletin
"The other side of the coin is FRIDAY, JUNE 18
that you can get an unusually
large expansion then through PLACEMENT SERVICES
gains in productivity, as a.result 3200 S.A.B.
of thoae measures, before the Interviews: If you're interested in
expansion starts to cut into un- making an appt., call 763-1363; inter-
employment. views will be held in Placement Serv-
"Clearly one of the objectives Ices.
in economic policy now is to have Tuesday, June 22
__________________________ Mich, Soft Water, Inc., Flint.
Need sales ereps .foeasaMy Hich.
The Michigan Daily, edited and man- areas.
aged by students at the University of Steed Indust., Inc., A.A. Sales and
Michigan. News phone: 764-0552. Second Mgmt.
Class postage paid at Ann Arbor, Mich-
igan. 420 Maynard Street, Ann Arbor, WLdisiday, July 7
Michigan 48104. Published daily Tues- Limo State Haspital, Ohio, jobo
day through Sunday morning Univer- for MSW's in forensic psych. h o s-
sity year. Subscription rates: $10 by pital; very good starting salaries; also
carrier, $10 by mail. jobs for a few B.A. people in psych
Summer Session published Tuesday and soc. wit.
through Saturday morning. Subscrip- Jobs: in the A.A. area and else-
tion rates: $5 by carrier, $5 by mail. where. Stop by the office and pick
up a bulletin.
RATED G 4THWEEK!
OPEN 1:15 P.M.
SHOWS AT
1 :30-4 P.M.-6:30
&9 P.M.
All Good Things
Must Come
To an End
POSITIVELY
ENDS WEDNESDAY!
A WIEPRODUCTIN
MANDROIEDA STRAIN
DIAL 662-6264 * At State & Liberty *
STARTS THURSDAY!
yACKRONS-CHARLESHJ FFEf(
cr COLOR by Deluxe' united {trusts

I

Back to Top

© 2020 Regents of the University of Michigan