Page 2-Friday. August 8, 1980-The Michigan Daily
Four 'U' economists
predict recession to
abate by start of '81
By United Press International
The recession now gripping the
nation should not extend beyond year's
end, University researchers say, but
the expected recovery should be slow
and jobless rates will remain high.
The economic forecast to be issued
today -.updating one originally made
last November - assumes monetary
policy will remain stable and a $30
billion tax cut will be enacted at the
start of second quarter 1981.
WITHOUT THE projected tax relief,
the University economists conclude,
the economy still would grow but at a
slower ete, while unemployment
would be slightly more persistent and
disposable personal income would be
Should there be no tax cut andf
monetary policy take a sharply more
restrictive stance, "the economic
recovery could very well 'stall out,' "
said economists Philip Howrey, Saul
Hymans, Harold Shapiro, and Joan
It said although positive growth in
real Gross National Product should
resume in 1981, "the initial year of the
expected expansion ... registers only
modest gains in the volume of goods
and services produced."
UNEMPLOYMENT should average
7.7 per cent for 1980 and nine per cent
for 1981, the University economists
said, while real disposable income and
corporate profits also are forecast to be
severely affected by the recession.
"Although inflation in energy prices
can be expected to be considerably
more modest in the next year and a
half," they said, "sharper increases
are forecast in farm prices and the un-
derlying inflation rate remains high."
The rate of inflation should remain
nearly constant over the next four quar-
ters at about a 9.1 per cent annual rate,
then taper off to a fourth-quarter rate of
7.5 per cent in 1981, the forecast said.
"This translates into a little more
than a 12 per cent annual rate of in-
flation in the consumer price index over
the next four quarters with a decline to
11.1 per cent annual rate at the end of
1981," the economists said.
219 S. Main, Ann Arbor
After words (313) 996-2808,
Quality Books at uncommonly low prices
A lively collection
Just about all items Bob Dale would like to add to his collection are at least
six feet underground. And occupied. But those minor barriers haven't stop-
ped the newspaper cartoonist from building his sparse-but probably
unique-collection of 14 antique coffins. Next to locating items for his collec-
tion, Dale's biggest problem has been in storing the macabre group. He used
to keep them in his airplane hanger, but it proved somewhat unsettling for
those who flew with him, so Dale now stores his collection in a barn and
brings them out only at Halloween parties. L
Fab Four foiled
Liverpool, England snubbed the Beatles once again yesterday when its
city fathers turned down a proposal to name streets after Paul McCartney,
John Lennon, George Harrison, and Ringo Starr. The first snub occurred
three years ago when the same group refused to erect a statue of the now
disbanded rock group. Only McCartney will leave a permanent mark on the
town; the town committee decided yesterday to name a yet-to-be-built old
people's home after him, because, according to committee chairman
Richard Kemp, he is the only Beatle "who still keeps his Liverpool connec-
On the outside
Skies will be mostly cloudy today with a good chance of thundershowers.
The high temperature will reach 90'.
Ann Arbor Public Library-And Then There Were None, 7:30 p.m., Main
Library, Fifth Ave. and William St.
AAFC - The Sorceror, 7, 9 p.m., MLB 3.
Cinemp II-Saboteur, 7:30p.m., Foreign Correspondent, 9:30 p.m., Angell
Cinema Guild-On The Waterfront, 7:30, 9:30 p.m., Old Arch. Aud.
Michigan Repertory '80-"La Ronde," 1p.m., Power Center.
Arbecoll Theatrics Dinner Theatre-"Bell, Book, and Candle," 7 p.m.,
Michigan League Ballroom, reservations required.
The Venue-Children's Performance Workshop, 10 a.m-noon, Union Pen-
Alpha Phi Omega Student Blood Bank-10 a.m.-4 p.m,., Union.
School of Metaphysics-rap session, "The Origin and Purpose of Life,"
7:30 p.m., 219'!2 N. Main
The Michigan Daily
Volume XC, No. 56-S
Friday; August 8, 1980
The Michigan Daily is edited and managed by students at the University
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