Ninety-One Years of Editorial Freedom £I1*IIE :43 tti DISMAL Look for cloudy skies today with occasional showers. Highs in the 50s. Lows in the 30s. XCI, No. 44 Copyright 1980, The Michigan Daily Ann Arbor, Michigan-Friday, October 24, 1980 Ten Cents Fourteen Pages Study reveals growing consumer faith By NANCY BILYEAU Consumer confidence in the economy showed ignificant improvement for the first time in hree years, according to a survey report Although consumer confidence in the economy appears to be up, Carter campaign forces are worried that the release of new govetnment inflation figures today could hurt the president's chances of re-election. See story, Page 6. eleased today by the University's Institute for Social Research. The Index of Consumer Sentiment registered 67.8 in the July-September survey, an increase of 13.4 points from the second-quarter record low of 54.4, and up 3.9 points from a year ago. THE INSTITUTE'S latest findings, compiled by Survey Director and Economics Prof. Richard Curtin, were based on nation-wide telephone interviews of 2,008 people contacted between June 23 and Sept. 21. This increase, described by Curtin as "a large and substantial one-quarter improvement," in- dicates consumers may be more optimistic about personal financial expectations, business conditions, and employment chances," than before the recession began. However, Curtin warned that even though thesg recent changes have been deemed satisf- actory,"the level of attitudes and expectations is still rather low." The survey showed that even though respon- dents expect improvements in their personal and financial conditions, "they more frequently tell us they're currently worse off rather than better off than a year ago," according to Curtin. "They expect economic conditions to be better in the future," Curtin explained. IN THE July-September survey, personal financial expectations were found to be more favorable than at any time during the prior two years. This represents the first survey since late 1978 in which a higher proportion of families ex- pected to be better off financially in the year ahead. According to the ISR report, families who ex- pect improved business conditions "more frequently mentioned the potential impact of the upcoming elections and government economic policies" as reasons for their hope for brighter days. Stabilization in the unemployment rate was another common expectation found by ISR researchers. There were twice as many respon- dents, however, who expected unemployment to remain at the,current level rather than decline in the coming year. The most rapid increase in expected economic improvement that ISR discovered was among residents of the western and southern regions of the U.S. Those over 35 were found to have the highest economic expectations. This recovery in consumer sentiment is not yet firmly established, Curtin pointed out. "Con- sumers' evaluations still remain unfavorable," he said, "and it's likely that the recovery path will be marked by temporary reversals." Curtin suggested that the recent improvement in buying attitudes may be due to improved credit conditions. He said he recognizes the possibility that recent increases in interest rates "are likely to again weaken buying attitudes. "Much greater improvement in sentiment must be recorded before sustained growth in consumer sales can be expected," Curtin said. k; 3 -___ Action on honors GPA postponed By JULIE SELBST The LSA Honors Council tabled the issue of raising the minimum required honors grade point average yesterday after approximately 45 minutes of discussion, Honors Council Director Jack Meiland said after the meeting: A memo saying that the average LSA grade point-2.9 to 3.0-approaches the required minimum GPA a student must maintain to stay in the honors program spurred the directors of the Honors Council to include discussion of the issue on the council's meeting agenda. MEILAND SAID the issue will be discussed next year after grade point statistics are compiled from the entire student body. All student records currently are being fed into a computer program. The results of the program should be available to the Council early, next year, Meiland said. He said the statistics would aid the members of the Honors Council in reaching a decision because there are currently many dissenting views on the matter., "THERE ARE lots of arguments on both sides of the question," Meiland said. "I'm undecided. I can see both sides, it's just that the figures on grade averages in the college raised the initial question." The Honors Council consists of ap- proximately 45 departmental honors advisors, the director and associate director of the Honors Council, and two students. David Handelsman, president of the Honors Student Council, said he favors raising the minimum GPA required during an honors student's freshperson and sophomore years. STUDENTS MUST reapply to a specific department in the Honors program if they wish to continue in the program after their sophomore year. "Requirements for upperclass honors programs vary. Anthropology honors advisor Richard Ford said he is against raising the required GPA to remain in the honors program because it is an inaccurate barometer of a student's potential suc- cess in honors. "Grade point doesn't measure research potential," he said. "If we have to use the subjective approach of whether a student can camp in the field for two weeks, it's more useful to us (than grade point) in knowing what kind of archaeologist that student will make." Daily Photo by LISA KLAUSNER CANDIDATES FOR THE 53rd district seat in the state House of Representatives, Libertarian Jeffrey Quick, Inde- pendent Ronald Graham, and Republican Ray Barton discuss campaign issues last night at Washtenaw Community College. Preli, O'Reilly trad barbs in 2d district race * Soviet Premlier Kosygrn resign ,s MOSCOW (AP)-Premier Alexei Kosygin, a fixture of the top Soviet leadership for 16 years, resigned his post yesterday because of illness. He was succeeded by his first deputy, 75- year-old Nikolai Tikhonov. Soviet President Leonid Brezhnev announced that Kosygin, 76, had decided to step down from the second most powerful position in the country during a meeting of the Supreme Soviet, the national parliament. TIKHONOV HAS long been associated with Brezhnev, and his takeover of the premiership further un- derlines the president's supremacy in the Kremlin hierarchy. < 4 Kosygin came to power in 1964 in a leadership "troika" with Communist Party chief Brezhnev and then- President Nikolai Podgorny following the ouster of Nikita Khrushchev. As premier, Kosygin was boss of the Soviet economy and of the day-to-day running of the government, and served as a much-traveled diplomatic troubleshooter. will t WESTERN analysts said they believe his departure will have little immediate impact on the direction of Soviet policy. Brezhnev -and Foreign Minister An- drei Gromyko are widely believed to run foreign affairs. Kosygin's grip on economic policy has loosened as his health has deteriorated, although the resignation could be seen as a symbol of change for the deeply troubled economy. Kosygin, who reportedly suffered at least two heart attacks in recent years, has not been seen in public since Aug. 3, the closing day of the 1980 Summer Olympics in Moscow. He was absent when Brezhnev announced his decision to step down. "He has been trying to resign for some time," a Soviet source who knows Kosygin's family said. "He just wanted to rest, to fish. But other Soviet leaders have been reluctant. Perhaps they've been wondering how to replace him." Tikhonov, a deputy premier since 1966, was named Kosygin's top deputy four years ago and stood in for him frequently during the premier's Ko illnesses. ... st By SUE INGLIS During last night's heated debates at the League of Women Voters "Meet the Candidates" night, U.S. Congressman Carl Pursell (R-Second District) said he has been consistent and urged his challenger Kathleen O'Reilly to "check the record." O'Reilly replied, 'The record is a flip-flop," and proceeded to attack Pursell's record on the issues of abor- tion and f feral tax reform. Pursell countered by saying "if she has been in Washington five years, let's have some specifics on the table." PURSELL ADVOCATED a supply-side investment tax policy. He called O'Reilly's proposed closing of tax loopholes for big business a "glossy solution" and a "change in policy which represents less than one percent of our tax." Some politc It was the third time the candidates have met in the last three nights. "I'm not a lobbyist, I'm not a lawyer. What we don't need in Washington is another lawyer and a lobbyist," he said referring to O'Reilly. Lawyer O'Reilly headed the Consumer Federation of America. Pursell, O'Reilly, and the American Independent Party candidate, John Wagner, answered questions posed by a League representative and members of the audience at Washtenaw Community College. All three candidates voiced opposition to a draft. Wagner said he was opposed to a peace time dra(t but said that "Enemies realize that they can do anything they want and we (the United States) are not going to do anything about it." "America is very strong nation that is not using its power," he said. rans for Tisch onov ;ke charge By JOYCE FRIEDEN Two of the three candidates in the 53rd district state representative race who attended a meeting last night at Washtenaw Community College said they favor the con- troversial Tisch tax-cut amen- dment. Libertarian Jeffrey Quick and American Independent Ronald Graham said they support the amendment-Proposal D-which would slash property taxes in half while requiring the state to reimbur- se local governments for lost revenue. THE OTHER candidate who at- tended the meeting, Republican Ray Barton, said he opposed the proposal. "Tisch is an attempt at reducing a problem we all face-higher taxes," he said. "We'd be causing government to have their revenues reduced and we don't kn'ow where the make up (in revenues) is coming from," Bartor explained. The-fourth candidate in the race, incumbent Perry Bullard (D-Ann Arbor), could not attend the gathering because he was speaking at a campaign engagement featuring the Smith/Bullard tax proposal, which he co-sponsored. QUICK, IN HIS opening statement, denounced the expansion of government and called for a decrease in government services. See BULLARD, Page 2 eps down TODAY Love thy neighborsn LIBERTY STREET post office patrons and other passers- by were greeted on the steps of the Liberty Station Post Office yester- day by self-employed car- However, Narowski continued his vigil, albeit minus the tent. Neither rain, snow, sleet, nor gloom of night... Drugs and sex and rock and roll... Two Minnesota preachers are in the midst of a nation- wide crusade aimed at wiping out what they claim is the satanic influence of rock and roll 'music. Jim and Steve Sabbath, the Bee Gees. and John Deriver. John Denver? O Cincinnati class Ah Cincinnati, thy beauty is exceeded only by the class of thy charming inhabitants. Witness one Steven Thacker, resident of Cincinnati and card-carrying member of the Pepsi-Generation, who was obviously deeply moved by the soda pop commercial in which a romantic young gentleman asks his girl Sue to marry him by having the Big question emblazoned on the horizon by a skywriter. Citizen Thacker, who works for a firm which sells advertising for the city bus svsem haid sucns nut un on the backs of ten of theA~ buen happily ever after. Inmates seered m] The inmates at Shelby County jail in Memphis, Tenn. were not pleased when they heard about a redecorating proposal for their cells. An unidentified business represen- tative-offered to donate 100 gallons of pink paint to the jail. "The citizen who donated it thought pink would have a good behavior effect on the prisoners," Deputy Sheriff Bill Coop said Tuesday. "But I think the men in the jail, who regard w'! I I I