Page 2-Wednesday, May 20, 1981-The Michigan Daily
Highest GNP
in three years
b affes experts
above which unemployment tends to
From AP and UPi shrink. It was far above the forecasts of
WASHINGTON - The nation's prominent economists who expected
economic output baffled the experts high interest rates would stunt growth.
yesterday by registering its fastest ex- THE REVISION - at almost 2 per-
pansion rate in nearly three years - up centage points, one of the largest ever
8.4 percent from January through Mar- for the department - reflected upward
ch. changes in every one of the many com-
Despite high interest rates, it was the ponents of the GNP.
largest three-month growth in the gross Even one of the most optimistic
national product since 1978's second- private forecasters, Michael Evans of
quarter increase of 9 percent, the Evans Economics, was surprised by
Commerce Department reported. yesterday's report. "This one's a real
ALTHOUGH REVISED figures show shocker," he said.
national economic growth zoomed up- That revision left real GNP growth
ward in the first quarter of 1981, just shy of the 9 percent annual-rate
Reagan administration officials in- gain in the second quarter of 1978.
sisted yesterday the economy is As reported earlier, there were good-
sluggish at best and in need of the sized gains in consumer spending, in
president's tax cut. investment and in net exports in the fir-
The Commerce Department reported st quarter. The revision, based on
that "real" gross national product - newer and better surveys, showed even
the value of all goods and services ad- better export performance and more
justed for inflation - rose at the annual investment inventories.
rate of 8.4 percent in the January- The new figures would seem to
March quarter rather than 6.5 percent provide fuel for arguments that the
as reported last month. administration's proposed three-year,
The new first-quarter figure is more 30 percent tax-rate cut is hardly needed
than twice the generally acknowledged now, .with the economy booming in
"break even" growth point of 4 percent, recovery from last year's recession.
Pate voters reject
Proposal A tx pan
4
Today
Up periscope
SIOUX CITY, Iowa - Ronald Curry wonders if a submarine will be at his
doorstep some morning this week when he comes to work. A periscope ap-
peared Monday. Packaged in a heavy wooden crate, the 2,000 pound, 3-foot
long optical instrument lay in front of Curry's business, KC Designs, when
his employees came to work. Curry said he had no idea where it came from
or why it should be on his door step. He called police asking if anyone had
reported a missing periscope. No one had. The periscope is made out of
brass with brass fittings and heavy flip-up handles at one end that
manipulate a glass prism at the other end. Curry, a former aerospace
engineer, guessed the periscope was of World War II vintage. He couldn't
figure out what a periscope was doing in the middle of the great plains, much
less in front of his business. Armed with the serial number, Curry says he
thinks he will be able to track down the manufacturer and possible find out if
it once belonged ina submarine. Then again, maybe a submarine searching
for its lost periscope will be at Curry's doorstep some morning this week. "If
it isn't yellow," Curry promised, "we'll paint it."
Today's weather
Sunny and warmer with a high in the lower 70s
Happenings .. .
FILMS
AAFC - My Darling Clementine, 7 p.m.; Welcome to $ard Times, 8:45
p.m., Angell Aud. A.
C2 '- Knife in the Water, 7:30 p.m.; Anatomy of a Murder, 9:10 p.m., MLB
3.
CFT - The Man Who Would Be King, 4, 7, & 9:15 p.m., Mich. Theater.
MISCELLANEOUS
Ark - Hoot Night, 9 p.m., 1421 Hill.
CRLT - Faculty Evaluation Workshop, 9 a.m.-3 p.m., Inglis House, par-
ticipation restricted, 763-2396.
MARAL - Pro-choice rally at state capitol in Lansing, noon, 662-7319.
Psychiatry - lecture by Philip Berger: "Clinical Perspectives in Endor-
phin Research," 9:30 a.m., CPH Aud.
'U' Research Club - Lectures by Alan Gibbard, "Hypothetical Social
Constructs and Utilitarianism," and by Diane Kirkpatrick, "Patterns in the
Flow - the Work of Sonia Landy-Sheridan, artist," 8 p.m., Rackham West
Conf. Rm.
Rackham Christian Forum - Mtg., noon, League Studio.
Vol. XCI, No. 11-S
Wednesday, May 20, 1981
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(Continued from Pae1)
time to spend two weeks campaigning
for Proposal A.
It was the only statewide,,single-issue
special election ever conducted in
Michigan.
Before the polls closed, officials had
forecast that only 20 to 25 percent of
Michigan's 5.7 million voters would
cast ballots.
TISCH ALREADY is planning a third
petition drive to placea tax proposal on
the state ballot in next year's general
election.
In addition to forcing state gover-
nment to absorb a multibillion dollar
revenue loss, Tisch proposes to reduce
the legislature to a single 90-day term
each year and cut lawmakers' salaries
from the present $27,500 a year to
In Detroit, Mayor Coleman Young
viewed Proposal A as crucial to his
hopes of winning a higher city income
tax this summer.
"I DON'T trust Milliken or the guys
in Lansing," declared Ed Boogt of
Byron Center after casting his ballot
against Proposal A. "It's just a tax
shift. It's not going to give us a thing.
They're just trying to fool the voter."
"I'm for the reduction in property
taxes," said Armando Faggion of East
Lansing, who voted for Proposal A.
"We've lived in the same place since
1942 and paid over $40,000 in taxes. I
hope this will cut taxes. If it doesn't I'll
vote for Tisch."
Property tax reform is "a tough
issue," noted Robert Berg, the chief
gubernatorial spokesman, noting five
such measures presented to the voters
since 1972 have failed. Another defeat,
he said, "doesn't reflect at all" on
Milliken's personal popularity, despite
the major effort he has made to boost
the proposal.
Interes'ted In Exerience In Health Care?
Getting.Away From The 6ooks?
9 Y
Helping People?
Volunteer at the U of M Psychiatric Hospitals
for Spring/Summer
Call 763-1580
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