Page 2-Wednesday, January 19, 1983-The Michigan Daily
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rise smallest in
WASHINGTON (AP) - In a year of
recession and layoffs, personal income
rose just 6.4 percent in 1982, the
smallest gain in nerly- two decades but
still enough to keep slightly ahead of in-
flation, government figures showed
Discounting for the rise in prices and
nudges into higher tax brackets, take-
home incomes increased 1.1 percent,
less than half the 2.5 percent gain of
1981 but still better than the 0.2 percent
of recession-weakened 1980, according
to the Commerce department report.
A SEPARATE report, also released
yesterday by Commerce officials,
showed how badly the housing industry
had done last year, mostly because of
high interest rates. It said builders
began work on just 1.061 million new
housing units, the least for any year
since 1946. December's housing starts
were down 13 percent from those in
But housing starts for those two mon-
ths were at annual rates of about 1.4
million and 1.2 million units - much
higher than the total for all of 1982. And
industry officials say lower interest
rates should allow the recent revival to
Personal income rose 0.6 percent in
December, pushed upward by gover-
nment payments to grain farmers, the
income report said. Meanwhile, per-
sonal consumption spending rose 0.3
percent over November; a small gain
but one that had been expected in light
of earlier reports of slow retail sales.
GOVERNMENT officials and private
analysts say income and spending
should continue rising moderately,
helping push recovery frm the long
recession but hardly stimulating a
Fore all of 1982, the report said, per-
sonal income rose to a total of $2.57
trillion. The 6.4 percent gain, only a lit-
tle more than half the 11.8 percent of
1981, was the smallest since the 5.1 per-
cent of 1963.
The size of the new increase "cer-
tainly reflects the recession and the
drop in employment that the economy
suffered in 1982," said Robert Ortner,
Commerce's chief economist. "But
even that is not a disastrous number
because of the lower inflation."
, Layoffs throughout the year brought
the national unemployment rate to 10.8
percent in December, the highest level
in 42 years. But wages lost to layoffs
were at least slightly balanced by a big
increase in government payments for
Deficit to reach $322
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WASHINGTON (AP) - The Congres- The congressiona
sional Budget Office, in a forecast cir- ier than a report
culated privately on Capitol Hill, Rivlin made to Co
predicts federal deficits will rise shar- that time, she said
ply over the next several years and be at or slightly a
reach $322 billion in 1987 barring new the next several y
tax increases or spending cuts, sources The updated for
said yesterday. be released late t
All estimates contain the unlikely February.
assumption that current programs THE preliminar
remain in place unchanged, and that available as Reaga
neither spending cuts nor tax increases of the tax and sp
are approved in the next several years that he will subm
to reduce the deficits. President end of the month-
Reagan is expected to propose several several changs
billion dollars worth of changes later beneath$200 billion
this month, and Congress is likely to For one thing,
accept many of them, or else substitute rescue plan appro
some of its own. Reagan as well
IN ONE NOTABLE turnabout, the Thomas O'Neill
CBO forecast is more optimistic on the ted to save sev
prospect for economic recovery over although no off
the next year or two than the most available for 1984a
recent Reagan administration assum- In addition, a va
ptions. but the administration assumes sources say Rea
an economic recovery will last longer sidering or has
than CBO economists, and envisions possibilities for sa
deficits of slightly below $300 billion for to submit his budg
1987. dr of the nt
1 forecast is far gloom-
t CBO Director Alice
bngress last fall. At
budget deficits would
above $150 billion for
recast is expected to
his month or early in
ry figures were made
an neared completion
ending plan for 1984
it to Congress at the
- one that will seek
to hold the deficit
a Social Security
ved late last week by
as House Speaker
(D-Mass.) is expec-
eral billion dollars,
ficial figures are
,riety of government
agan is either con-
vings as he prepares
get to Congress at the
cuts of less than $30
programs as well as
ction in the proposed
Compiled from Associated Press and
United Pressinternational reports
Calif. NOW president indicted
on 17-year-old murder charge
GRETNA, La. - The president of the National Organization for Women's
California chapter was indicted yesterday on a charge of murdering a man
she picked up 17 years ago when she worked here as a barmaid.
The indictment against Ginny Foat, 41, then known by her maiden name of
Virginia Galluzzo, was returned after jurors heard testimony from one of
her ex-husbands, John Sidote.
The Jefferson Parish County Grand Jury issued the indictment in Gretna,
a suburb directly across the Mississippi River from New Orleans. It accused
Foat of murdering Moises Chayo, 62, an Argentine businessman, by bashing
him on the head with a tire iron during a 1965 robbery.
It was not a first-degree murder indictment and District Attorney John
Mamoulides said it thus would not be a death penalty case.
No details of the alleged crime were given in the brief indictment.
Conservatives meet to discuss
challenging Reagan in 84
WASHINGTON - Hard-line conservatives will meet this weekend in
Dallas to discuss complaints against the administration and perhaps lay
some groundwork for challenging President Reagan if he seeks re-election
"We've either got to fish or cut the bait," said Howard Phillips, chairman
of the Conservative Caucus. "Either we get some changes out of the ad-
ministration or we have to go in a different direction."
Phillips said the purpose of the Dallas meeting of about 200 conservatives
would be to "see if there is a consensus among conservatives about where we
go from here."
Phillips and conservative publisher and fund-raiser Richard Viguerie are
urging Reagan not to run in 1984.
"I would think the conservative cause and the Republican Party would be
better served if the president doesn't run for re-election," said Viguerie.
Reagan has said repeatedly that he has not yet decided whether he will run
for a second term. But White House aides and Sen. Paul Laxalt of Nevada,
Reagan's close friend who agreed to become general chairman of the
Republican Party, predict he will run in 1984.
Bishops meet on nuclear issue
VATICAN CITY - The Vatican convened a meeting of top U.S. and West
European bishops yesterday to discuss the American churchmen's sweeping
condemnation of the use of nuclear weapons and possibly suggest changes
before a final version is completed.
Authoritative church sources said before the meeting that at least some
European bishops would urge the American committee members to be
prudent, cautious, and moderate in dealing with the morality of nuclear
weapons in a pastoral letter they expect to release this spring.
"In writing the letter, we are searching for the truth, and so obviously we
will listen to all suggestions and advice," Monsignor Daniel Hoye, general
secretary of the National Conference of Catholic Bishops, told United Press
International in a telephone conversation after the first session.
Hoye said the meetings with the European bishops and Vatican officials to
discuss the second draft of the letter were "a consultative process."
Reagan meets Japanese leader
WASHINGTON - President Reagan welcomed Prime Minister Yasuhiro
Nakasone to the White House yesterday and said their talks symbolize the
closeness of the alliance between the United States and Japan despite
chronic differences over trade and defense.
"I think it is like a happy marriage," Reagan said of the U.S.-Japanese
relations, which are strained by an estimated $20 billion 1982 trade imbalan-
ce in Tokyo's favor.
"Sometimes you argue, but the marriage is still happy," Reagan said.
Nakasone's meeting with Reagan began three days of intensive talks with
U.S. government, congressional, and business leaders.
The Japanese leader, who took office 52 days ago, arranged to confer with
Secretary of State George Schultz and Defense Secretary Caspar Wein-
berger later in the day and attend a dinner in his honor at the residence of
Vice President George Bush.
Soviets suggest arms reduction
BONN, West Germany - Soviet Foreign Minister Andrei Gromyko made
a new pitch to West Germany's growing anti-nuclear movement yesterday
with an offer to dismantle some of the Soviet medium-range missiles aimed
at Western Europe if the Western allies cancel plans to deploy new U.S.
It was the second innovation in Soviet arms proposals advanced by
Gromyko during a four-day visit to West Germany. At a dinner Monday, he
said his government is prepared to negotiate an agreement for a mutual
reduction of tactical missiles with a range of less than 600 miles - the first
such public offer by a Soviet spokesman.
Although he once again said the Soviets would not reduce their medium-
range missiles targeted on Western Europe below the number in the French
and British arsenals, reputed to be 162, Gromyko told a news conference:
"We have said in the negotiations, some of the missiles could be destroyed,
others could be transported to other parts of the Soviet Union where they
could no longer reach the countries of Western Europe."
0 be Aicbigan BMWl
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Mike Bradley. Joe Chapelie. Laura Ciork. Don Coven,
In a separate draft of its winter
review, the CBO says a relatively weak
economic recovery will probably begin
this year, although unemployment will
stay very high, averaging 10.7 percent
billion in domestic
an $8 billion redui
Ann Arbor Mayor Louis Belcher was
unableto attend Martin Luther King
Day ceremonies Sunday and had his
statement read for him. A Daily story
yesterday said he attended the
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