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March 13, 1982 - Image 1

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Publication:
The Michigan Daily, 1982-03-13

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0

ninety-Two Years
of
Editorial Freedom

Sitctt

IE3 atiQ

BLUSTERY
Windy with showers en-
ding, high in the low to mid
40s, falling temperatures
this afternoon.

Vol. XCII, No. 127 Copyright 1982, The Michigan Daily Ann Arbor, Michigan-Saturday, March 13, 1982 Ten Cents Eight Pages

.Law faculty
accepts aid
program
r clinic
By GEORGE ADAMS
The Law School faculty yesterday
voted to keep its clinical law program
alive, and actually to increase the funds
the school gives to the program.
The decision came after a long
review of the program's future and a
proposal to make large cutbacks in or
eliminate the program's budget.
THE PROGRAM first came up for
review after it lost two major grants -
one from the federal government and
one from a private foundation. Because
some administrators feared that they
could not make up the loss, they
suggested that it be eliminated.
But at a special meeting yesterday,
the Law School faculty voted to try to
support the program by allocating an
extra $25,000 next year-in addition to
the $100,000 the school usually gives the
program each year. But, faculty mem-
bers added, the extra $25,000 will not
See LAW, Page 3

Wholesale
prices drop

1.7

percent

Daily Photo by JACKIE BELL
Builder's backdrop
Crane operator Jack Roe works against a background of empty tiers which will soon be a convenience for weary
parking space hunters at the medical center.'

Michigan economy to
improve, Milliken says

WASHINGTON (AP) - Wholesale
prices dropped at an annual rate of 1.7
percent in February, the first decline in
six years, the government reported
yesterday. The White House called it
"good news," but private economists
said it reflected the severity of the
recession.
The reduction was paced by tumbling
prices for cars, trucks and energy,
which registered their biggest drop sin-
ce January 1976.
At the White House, deputy press
secretary Larry Speakes put the best
face on the report saying it was "good
news, indeed."
"WE FIND THE February results
satisfying and a clear indication that in-
flation is coming down," he said, ad-
ding the administration was not
claiming credit for the decline.
"It's another indication of the sub-
stantial progress we are making in
reducing inflation," said Murray
Weidenbaum, chairman of the
President's Council of Economic Ad-
visers.
Private economists cautioned that
the report underscored how listless the
economy is.
"THIS SIGNALS the severity of the
recession," said Nariman Behravesh,
senior economist at Wharton-
Econometric Forecasting Associates.
"The decline is cause for concern
about how weak the economy really is,"
said private economist Allen Sinai.
"for the inflation index to drop in this
modern environment takes a very weak
economy."
Analysts said the falling inflation rate
could lead to lower interest rates and a
pickup in consumer spending. That
could help spur an economic recovery
later in the year.
THE LABOR Department said its

Producer Price Index for finished
goods fell a seasonally adjusted 0.1 per-
cent last month, the first decline since
the 0.2 percent drop of February 1976,
when food prices plummeted and the ef-
fects of the severe 1975 recession were
lingering.
Analysts noted that big price drops in
February were registered in the most
recession-sensitive elements of the
economy.
Prices for passenger cars fell 1.3 per-
cent in February and costs of light
trucks were down a sharp 7.9 percent,
the report said. The declines were due
to the rebates"and price cuts offered by
automakers 'trying to drum up sales,
analysts said.
ENERGY COSTS, reflecting slack
worldwide demand, tumbled 1.8 per-
cent, twice as much as the January
decline and the largest monthly drop.
since the 2.9 percent of January 1976.
Gasoline prices fell 2.7 percent, and
home heating oil prices were off 1.5
percent, the report said. Natural gas
costs were up 2 percent.
Food prices only went up 0.5 percent
in February, well under the double-
digit pace of the previous month, the
report said.
the Producer Price Index is com-
posed of three major categories which
reflect prices during production. For
the first time since February 1975, all
three components were down.
The unadjusted Producer Price Index
for finished goods stood at 277.4 last
month, meaning goods and services
costing $10 at wholesale in 1967 would
have cost $27.74 last month.
Changes in the Producer Price Index
are a good barometer of how food,
energy and other prices will move at
the retail level, as measured by the
Consumer Price. Index which 4tio:,i
cludes housing and medical costs.

LANSING (UPI)- Michigan's bat-
tered economy will slowly begin to heal
in the latter part of this year, but
unemployment will remain at record
levels, according to Gov. William
Milliken's economic forecast yester-
day.
The forecast projects a final 1982
average unemployment rate of 14.4
percent, the highest since such
statistics have been gathered, Milliken
said.
DOUG ROBERTS, a key Milliken
economic advisor, said Michigan is
caught in a "catch-22" between the ex-
pected 1982 $106 billion federal deficit,
which he said drives up interest rates,
and the anticipated mid-year 10 percent
federal income tax cut.

Roberts said a tax cut is "critical" to
Michigan's economic recovery because
it will put an estimated $2 billion more
into the pockets of the state's taxpayers
and he said the deficit should be
reduced by budget cuts.

He predicted "sustained
moderate growth" in Michigan in
but he said "it will not be a boom."

and
1983,

Meanwhile, a spokesman for the
Michigan State Employees Association
said representatives of seven public
employee unions met yesterday to
discuss Milliken's proposed $20 million
wage concession plan for this year.
The spokesman said the MSEA will
probably meet with administration of-
ficials early next week.

U reports on affirmative action

Daiy rnoto by BRIAN MASCK
MAGGIE KUHN, age 76, urges the young andthe old to join in their protest
to Reagan's cuts in student aid and social programs, at a speech at the Ann
Arbor Salvation Army Thursday. Kuhn is the national convener and founder
of the Gray Panthers network.
Gray Panther leader
speaks against cuts,

By PAM FICKINGER
Affirmative action efforts by the
University are continuing, but they will
be hampered by cutbacks In federal aid
and the lack of proper student support
mechanisms, University officials
reported to a state affirmative action
committee yesterday.
During a meeting with the State
House of Representatives Committee on
Affirmative Action, officials said that
the University will continue to en-
courage their efforts no matter what
happens at the federal level.
"AFFIRMATIVE action is necessary
for our success as a major national and
international research institution," said
Virginia Nordby, director of af fir-
mative action programs at the Univer-
sity.
As part of his report to the commit-
tee, Richard Kennedy, University vice
president for state relations, said the
the amount of hiring -done by the
University has been going down, and ef-
forts torrecruit minorities are lessened
by this reduction.
"Upwards of 400 positions over the
past 2 or 3 years have been
eliminated," said Kennedy, adding "in
terms of affirmative action, that means
that there is reduced opportunity to
bring people into the University."
EFFORTS, TO prevent layoffs of
See 'U', Page 2

By LISA SPECTOR
In a nationwide effort to strengthen the
alliance between the young and the old,
Maggie Kuhn, national leader of the
Gray Panthers, came to Ann Arbor this
week.
Kuhn is emphasizing that she
believes President Reagan's cuts in
social programs affect the young and
the old alike, and that the Panthers -
an organization of senior citizens and

youth - can b an effective tool in
fighting the changes.
IN THE PAST, the organization has
concentrated its efforts in fighting age
segregation and discrimination. But
now, the group, which is composed of
approximately 30 percent young people
and 70 percent senior citizens, is
changing its emphasis.
"We're not working for old folk's
See GRAY, Page 2

Doily Photo by MIKE LUCAS

AIDE GARY WOODS (left), Rep. Teola Hunter, and State Rep. Perry Bullard, members of the state's Committee on
Affirmative Action, listen to reports from University representatives on the role of affirmative action in University
programs.

TODAY
Kicking the habit
MARLENE "BRANDY" Baldwin served a 90-
day prostitution sentence in a San Francisco
convent and then said she was changing her
ways. But, alas. Brandy, 41, has been arrested
again, on charges of pimping. She was freed on $5,000 bail.
Police said she answered the phone at her apartment and
told an undercover officer she could send five young women
to five separate rooms in two of the city's better hotels.
When the women arrived at the rooms, police said, they
each offered sexual services for about $150. Each was

The Lord giveth, and.. .
Police yesterday were investigating reports of a man who
posed as a priest and offered to bless the homes of elderly
people, but robbed them instead. The bogus priest wan-
dered through the homes of at least three elderly men and
women picking up items and pretending to bless them,
police said. The man fled the home of an 81-year-old man
after taking $2,500 in jewelry and other valuables. "He goes
in and asks to bless the house and then startsspreading holy
water around," said a nun from a church near one of the
victim's homes. Police describe the fake priest as a young
man with a light complexion who wears no clerical collar.

are certain advantages also. Once people meet her, they
don't forget her name. And people always pronounce it
correctly. While 'Nancy sometimes laments her famous
name, she always feels better when she thinks of another
Reagan she knows. Nancy's cousin in Spokane, Washington
is a drummer for a rock 'n' roll band. His name is Ronald.
El
The Daily almanac
On this day in 1933 Franklin D. Roosevelt was pledged to
work with the League of Nations Committee, charged with

West Germany following banishment from the USSR, to
begin his new life in the West.
" 1974-Students in Alice Lloyd and East Quad rejected
the Regents' proposal to eliminate coed bathrooms and the
University Housing Council voted unanimously to support a
resolution stating, "Students living in residence halls shall
democratically determine the use of bathroom facilities on
their own corridors."
On the inside

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