Page 2--Tuesday, August 11, 1981-The Michigan Daily
Period of expansion
foreseen in economy
4
(Continued from Page 1)
during the early months of 1982, and
then will stabilize at a peak level of 8.4
percent for several months. During the
second half of 1982 the unemployment
rate will decline to below 8 percent and
by the third quarter of 1983, the jobless
rate will be below 7 percent and
heading downward still.
ECONOMIC GROWTH-After the
decline of real GNP (Gross National
Product) continues in the third quarter
of this year, the trend will start to be
reversed in the fourth. By mid-1982 the
economic expansion will have spread to
all major sectors of the economy.
The overall rate of economic growth
will double between the'first and second
halves of 1982 and average nearly 5
percent annual rate from early 1982 to
mid 192. This strong growth is forecast
to continue through the first half of 1983
and to accelerate even further after
the third stage of the personal tax cut
becomes effective in mid-1983.
FEDERAL DEFICIT-The ad-
ministration's tax cut, though helping
to accelerate economic recovery, will
produce enormous increases in the
federal deficit. In their report, the four
economists said "there is simply no
way for the tax cut to reduce the fiscal
'82 and '83 deficits. And a balanced
budget in fiscal 1984 is an absolute pipe
dream... The federal deficit in fiscal
'83 will amount to $135 billion instead of
the $53.4 billion deficit which would
have obtained in absence of the tax
cut."
Hymans, however, in an interview
Friday, said he doesn't think it will be a
major problem for the economy to deal
with the deficit. It is only a trade-off
from the public sector to the private
sector-"a transfer of liquidity'-and
therefore there is no less liquidity that
is in the economy as a result of the
deficit.
In all,.the short term upturn that will
occur in the U.S. economy, Hymans
said, is more dramatic than that which
would have occurred under the projected
fiscal policy of the Carter admin-
istration. But he noted there is a major
change in the structure of the federal
budget. The emphasis is not mainly on
overall economic growth but is targeted
for immediate benefits in certain areas.
Asked if the 1980s could be the start of
another prosperous decade like the
1960s, Hymans responded it "could
happen" but it depends on the fiscal
policy in 1983 to determine if the up-
coming prosperity is longterm in
duration.
Today
More brains here than ever
THE FRESHPERSONS are getting smarter each year, says the Univer-,
sity. According to the University's Office of Undergraduate Admission
the entering class of neophytes for 1981 is the "best in recent years." The
median SAT'score for this year's entering class was 540 verbal and 600 for
math. (The past three years the medians have Been 530 verbal and 600 for
math.) Additonally, students graduating in the top one percent of their high
school class accounted for 14.5 percent of incoming freshpersons this year,
compared to 13.6 percent in 1980. A total of 81.7 percent were drawn from the
top 20 percent of their high school classes; and 63,7 percent (61.1 percent last
year) ranked in the top 10 percent in their high schools. Clifford Sjogren,
University director of undergraduate admissions, said he felt the success in
recruiting excellent students is due primarily to the generally held view that
the University's academic programs "have been and continue to be of
unusually high quality ... Few institutionstdo a better job of combining con-
sistently high quality academic programs with large size." Also, Sjogren
said, an increase of 1,300 freshperson applications-about 10 percent more
than 1980-allowed more selectivity in admissions decisions and resulted in
a "class of generally high quality." Ninety-five percent of all incoming
freshpersons (both from in and out of state) were in the top 30 percent of
their graduating class. The admissions director also said present economic
conditions may have had an effect on student applications. Although the
University presently has rising costs which present problems for many
students, some might still view the University as a bargain when costs are
compared to rapidly rising fees at some out-of-state colleges, particularly
private schools, Sjogren said.
Today's weather
Look for partly sunny skies today with a high in the upper-70s,
0
Forbidden City broken into
Police halted breaking and entering
in process early yesterday morning at
the Forbidden City restaurant, 3535
Plymouth Rd. Officers responded to an
alarm at 3:41 a.m. and when they
arrived at the scene the suspect, 21-
year-old Armour Ketzner, was running
out of the building. He was immediately
apprehended and arraigned today for
breaking and entering and was
released on personal recognizance bond.
Campus area break-ins
- Stereo equipment and a bicycle,
valued at about $300, were stolen from
an apartment on the 600 block of
Lawrence between 9:30 p.m. Thursday
and 7 p.m. Friday, police reported
yesterday. The thief gained entry
through a ground floor window.
$50 in cash was stolen from an apar-
tment on the 700 block of East Univer-
sity between 3 and 5:45 p.m. Saturday,
police said. Police are unclear as to how
entry was gained; there was no sign of
force and the door had been locked..
An attempted break-in on the 700
block of Packard was thwarted when
the complaintant saw the suspect and
screamed, scaring him off. She repor-
tedly saw someone try to pry off her
screen at about 5:30 a.mp. Sunday and
screamed, causing him to flee.
Never
Remains
Silent
764-o558 N I
Happenings .. .
Films
AAFC-The Life and Times of Rosie the Riveter, 7 & 9 p.m., Lorch Hall.
CFT-Rebecca, 4, 7 & 9:30 p.m., Michigan Theater.
Miscellaneous
Folk Dance Club-beginning teaching, 7-8:15 p.m., Union. Organ
Organ recital-Steven Cagle, 8 p.m., Hill Auditorium.
Voice Recital-Prof. Eva Likova and students, "Opera Gems in Solo and
Ensemble," 8p.m., Recital Hall.
TrumpetRe cital-Daniel D'Addio, 8 p.m., Rackham Assembly Hall.
The Michigan Daily
Vol. XCI, No. 59-S
Tuesday, August11,1981
The Michigan Daily is edited and managed by students at the University
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There was a young man from Chicago,
Whose girl longed to see San Diego,
But one day she agreed
To eat out at the League, Lunch 11.30 to 1:15
Since then she says merely "I may go." Dinner S:00 to 7.15
SPECIAL LOW PRICES FOR
STUDENTS
UL . Send your League Limerick to:
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Next to Hill Auditorium You ii lreceie e2 free dinner
Located in the heart of the campus, tickets if your limerick is used in
it is the heart of the campus . one of our ads.
Editor-in-Chief ............ DAVID MEYER
Managing Editor....... NANCY BILYEAU
Editorial Page Director .....STEVE HOOK
Special Supplement I
Editor ................... PAM KRAMER
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Sports Editor ......... MARK MIHANOVIC
Executive Sports
Editors ........BUDDY MOOREHOUSE,"
DREW SHARP
NEWS STAFF: John Adam, Ann Marie
Fazi, Mark Gidin, Pam Kramer, Grey
Meyer, Jennifer Miller, Dan Oherrotman.
Business Manager.
Diaplay/Classifie
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BUSINESS STAFF: Aida Eisenstat, Mary
Ann Misiewicz, Nancy Thompson
SPORTS STAFF: Barb Barker, Mark
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John Fitzpatrick, John Kerr, Ron Pollack,
Jim Thompson.
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ARTS STAFF: Bill Brown, Ken Feldman,
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