Page 8-Tuesday, July 22, 1980-The Michigan Daily
PREDICTS DEBT OF $30 BILLION
Gov't forecasts deficit in 1981
0
From AP and UPI reports
WASHINGTON-The Carter administration,
rejecting any tax cut plan at this time, officialy con-
ceded yesterday there will be no balanced budget in
fiscal 1981, but instead a $30 million deficit.
In addition, the administration says its fiscal 1980
deficit will jump from an estimated $36.5 billion to $61
billion, reflecting the country's decline into
recession, higher defense spending and surprise
events including the eruption of Mt. St. Helens and
the flood of Cuban refugees.
THE ADMINISTRATION-in its mid-year budget
review-also predicted that the recession will push
unemployment to 8.5 per cent by the end of this year.
Joblessness will remain at about that level through
1981, it said.
Some private economists expect the jobless rate to
reach close to 9 pe cent.
Even the 1.5 per cent projection is far higher than
the 7.2 per cent jobless rate predicted by Carter's
economic advisers in March.
THE OVERALL ECONOMY should decline by 3.1
per cent this year and then rebound modestly by 2.6
per cent in 1981, the new forecast says.
Inflation, meanwhile, will increase by 12 per cent
between 1979's fourth quarter and this year's fourth
quarter-slightly less than originally predicted-and
by just under 10per cent in 1981-a bit more than ex-
pected.I
Currently, consumer prices are rising at a 10.3 per
cent yearly pace.
"THESE ECONOMIC PROSPECTS are not accep-
table to the administration," said James McIntyre
Jr., director of the Office of Management and
Budget.
To combat the deteriorating economy, McIntyre
said, "It is quite likely a tax cut will be desirable in
1981."
But, he stressed: "It is not appropriate to propose
one now.
"THE ADMINISTRATION believes strongly that
the last months of a congressional session, in an elec-
tion year, are not the time to make the judicious
decisions needed for a skillfully designed tax
program to improve economic performance," said
McIntyre.
PRIME RIB
A
RARE PRICE.
That tax reduction should be aimed heavily toward
increasing investment and producitivity, he said.
In contrast, Republican presidential nominee
Ronald Reagan is calling for quick enactment of a
$36 billion tax cut, effective Jan. 1; and congressional
Democrats are hoping to unveil a plan of their own by
early September.
CHARLES SCHULTZE, chairman of the Council of
Economic Advisers, assailed Reagan's tax cut
proposals, which he said would reach a cost of $280
billion by 1985. Schultze said that would either require
massive spending cuts or entail continued large
deficits.
Senate and House hearings on a tax cut begin this
week.
The administration's new forecast and revised
budget figures prove a severe reversal from the tone
Carter offered in March, when a balanced budget was
his main goal and rampant inflation the No. 1enemy.
With inflation then running at an annual rate ex-
ceeding 18 per cent and the bond markets in near-
panic due to skyrocketing interest rates, Carter made
a highly unusual about-face and scrapped his initial
fiscal 1981 budget only two months after proposing it.
Milliken
signs bill
to stop
sexual
hw--sment
LANSING (UPI)-Gov. William
Milliken has signed into law a bill to
discourage unwanted sexual advances
agaigst both men and women in the
workplace.
Sexual harassment already was
technically illegal and the state Civil
Rights Commission, beginning last fall,
handed down some landmark decisions
dealing with the issue.
BUT THE PROBLEM had not
previously been specifically defined.
Female workers have told of being
subjected to pinching, groping and
suggestive remarks from their co-
workers. Those who complain or rebuff
advances sometimes face the loss of
jobs or promotions, they said.
The measure defines sexual
harassment as "unwelcome sexual ad-
vances, requests for sexual favors, and
other verbal or physical conduct of a
sexual nature" in employment, public
accommodations, education, and
housing.
Milliken, who had urged passage of
the bill in his State of the State Address,
also created a pilot program through
the state Department of Labor to help
workers develop the skills to cope with
sexual harassment.
More than 30 training sessions have
been conducted with various groups.
Milliken also signed legislation gran-
ting autonomy to the Office of Services
to the Aging which previously chafed
under the control of the state Depar-
tment of Management and Budget.
Join The
Daily
Generous cut of tender, juicy Prime Rib
roasted to perfection.
Crisp, garden fresh salad
Your choice of
steaming hot baked potato,
French fries or rice.
Fresh bread and butter
$7095
At a time when most things are going up, we're doing some-
thing rare -bringing the price of Prime Rib way down. This
standard cut is served every day, except Friday and Saturday,
during our regular dinner hours. And The American Express
Card is always welcome.
MOUN TiN
300 South Maple
Ann Arbor, 5s-1133
Valid through
September 11, 1980.