The MichianDail -Wednesday July-23 1980-Page 13.

LONDON (AP)-Britain's army of uemployed
40swelled to nearly 1.9 million this month, the highest
B ri iS I level since the Depression year of 1936, a government
office reported yesterday. The grim statistics quickly
brought Primne Minister Margaret Thatcher's
economic policies under fierce attack.
Labor Party leader James Callaghan said he will
introduce a motion of no-confidence in the Conser-
"inhuman complacency" of its economic strategy.
But Thatcher said she would stick to her guns.
THE FUROR OVER rising unemployment shaped
r a te up as the biggest political confrontation since That-
cher, dubbed "the Iron Lady," won the May 1979 elec-

The government has a 43-vote majority in the 635-
member House of Commons and appeared in no im-
mediate danger.
But the figures drew blistering condemnation from
all sides of the House and underscored forecasts of 2
million out of work by the end of the year and as
many as 2.5 million jobless by 1982.
BRITAIN'S CURRENT unemployment rate of 7.8
per cent of the workforce is roughly the same as that
in the United States, where the current jobless level is
8 million, or 7.7 per cent of the workforce.
The unemployment crisis, fueled by worldwide -
recession, spreads across much of Western Europe.
But the impact has been patchy.

Economist
urges tax
cut to aid
sluggish
economy
DETROIT (UPI) - University
economist and former presidential ad-
viser Paul McCracken called yesterday
for a $30 billion tax cut to "start the
fundamental revitalization of the
economy "
McCracken said such a tax cut,
amounting to a little more than one per
cent of the nation's Gross National
Product, would not fuel inflation to a
major degree because "we've got a
sluggish, stagnant economy.
"THEME'S PLENTY of slack in the
economy right now," said McCracken,
chairman of the President's Council of
Economic Advisers under Richard
Nixon.
"There is a time for everything. This
is a time for taking needed tax action to
start the fundamental revitalization of
the economy," he said.
McCracken suggested such a tax cut
be carried out over a period of 1-2 years
and, to make it "politically" feasible,
be split about evenly between business
and personal income.
MCCRACKEN TOLD a news con-
ference the U.S. economy is "very ar-
thritic" and, in terms of productivity,
"at the bottom of the list of the major
countries of the industrialized world.
Unless some sort of economic
stimulus is forthcoming, McCracken
warned, the economy in coming years
faces "continued stagnation, in terms
of very minmal gains in productivity
and very minimal gains in income."
The University professor described
as "a little ambitious," however,
Republican presidential candidate
Ronald Reagan's proposal for a 30 per
cent tax cut phased in over three years.
McCracken said talk of balancing the
fiscal 1981 federal budget - a goal the
Carter administration now concedes as
lost - only held off "needed tax action"
-and further eroded government
credibility on the issue.
McCracken said he expected unem-
ployment could touch the nine per cent
level in the next six to nine months
before the jobless rate starts to head
downward.

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