4 Page 2-Wednesday, January 19, 1983-The Michigan Daily l1alYA RMY SURPLUS 201 E. Washington at Fourth NOW OPEN SUNDAY! 11-4 OPEN M-SAT, 9-6 OPEN FRI. 9-8 994-3572 -L- m ALL (E 15% OFF MERCHANDISE xcept Sale Items) s Tuesday, Jan. 25, 1983 -- -j Personal income 0 *0 rise smallest in twenty years Expire U- IN BRIEF 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 yesterday. 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 November. 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 continue. 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 robust rebound. 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 unemployment compensation. Deficit to reach $322 AGRICULTURALISTS.. . Youre Needed All Over the World. Ask Peace Corps volunteers why their agriculture degrees or form backgrounds are needed in developing nations. Ask them how rheir knowledge of crops, livestock production, form mechanics or beekeeping methods help alleviate hunger, increase personal income and develop technical skills. They'll tell you of the rewards of seeing direct results of their efforts. They'll tell you Peace Corps is the roughest job you'll ever love. January 18th, 19th and 20th. Interviews at Career Planning & Placement. Sign up today. Detroit Office:1-226-7928 PEACE CORPS billion, forecast 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 says 1 forecast is far gloom- t CBO Director Alice bngress last fall. At budget deficits would above $150 billion for ears. 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 in. a Social Security ved late last week by as House Speaker (D-Mass.) is expec- eral billion dollars, ficial figures are alone. ,riety of government agan is either con- approved several 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 in 1984. "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. rockets. 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 The Michigan Daily is edited and managed by students at The University of Michigan. Published daily Tuesday through Sunday mornings during the University year at 420 Maynard Street, Ann Arbor, Michigan, 48109. Sub- scription rates: $13 September through April (2 semesters); $14 by mail out- side Ann Arbor. Summer session published Tuesday through Saturday mor- nings. Subscription iates: $7.50 in Ann Arbor; $8 by mail outside Ann Arbor. Second class postage paid at Ann Arbor, Michigan. POSTMASTER: Send address changes to THE MICHIGAN DAILY, 420 Maynard Street, Ann Ar- bor, MI. 48109. The Michigan Daily is a member of the Associated Press and subscribes to United Press International, Pacific News Service, Los Angeles Times Syn- dicate and Field Enterprises Newspaper Syndicate. News room (313) 764-0552, 76-DAILY. Sports desk, 763-0379.; Circulation, 764-0558; Classified Advertising, 764-0554; Billing, 764-0550. Mike Bradley. Joe Chapelie. Laura Ciork. Don Coven, 4 4 U U 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 for 1983. THESE include billion in domestic an $8 billion redui defense buildup. Correction 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 ceremony. Editor-in-chief Managing Editor . 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