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The Cord Weekly (March 18, 1982)

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The Cord Weekly (March 18, 1982) THECORD WEEKLY WilfridLaurier University Waterloo, Ontario Thursday, March 18, 1982 Volume 22 Number 20 Speaker says he can change Country in Fifteen Months Hellyer can beat Inflation by Jerry Zeidenberg but is concerned with the big unions Canada and the U.S. have been and corporations" which dominate, waging war against inflation for the economy. years, but their weapons just don't He would like to see the seem to work. Monetarism and government negotiate with the supply-side economics, MacEachen unions, gaining from them an andReagan's prized guided missiles, agreement to limit their wage have turned out to be duds. Prices demands. Wage increases, Hellyer continue to soar and we're not able said, should be no more than the to do anything about it. increase in the nation's economic However, last Thursday, a "man productivity. This way, there would appeared on campus with a newand not be 'too much purchasing too few original plan that could have goods', an inflationary situation inflation whipped in 15 months. which forces prices up. Paul Hellyer addressed a crowd Also, Hellyer said that the profits of about 50 attentive students, made by big corporations must be professors, and area residents in the controlled. Legislation of this sort Paul Martin Centre, telling them "If would ensure that individual we do in this country what I'm companies would not raise the prices suggesting, in a year you wouldn't ofgoods withoutjustcause. It would know it was the same country." also act as an anti-combines law, He said prices would remain preventing corporations from giving steady, "about 400,000 fewer people a nod or a wink to each other and would be out of work, and the. then collectively raising theirprices. economy would be growing." Both labour and investors would Hellyer, a former Liberal cabinet benefit from the two-part plan, minister who resigned from the Hellyer exclaimed. With a low rate party and later joined the of inflation, it would become Progressive Conservatives, profitable to invest in industry and the symptons ofinflation, explained business once again. And when this its cause, and prescribed a cure. occurs, growth will take place with According to Hellyer, inflation is more jobs becoming available. the result of wage increases. Every "Everybody wins, and nobody time unions make a gain in wages, loses," Hellyer beamed. corporations raise the price of the Hellyer said thwe is "over- goods they produce to compensate whelming support" for his ideas. He themselves. has appeared across Canada on To illustrate this point, he said television and radio hotlines, and that during a 7 year period in the said he has received an immense 1950'5,~wages increased by 3% and amount of public approval. Hellyer inflation stood at about 2%. In a also seemed to gain the approval of later 7 year period when wages the audience at Laurier. Only one increased by 12%, the inflation rate person, Dr. Redekop of the cases Department was also 12%. In both the two Political Science Hellyer (right) in a lighter moment In his discussion of inflation, pic by Jerry rates just about match, and no large expressed scepticism over Hellyer's Zeidenberg gain was made by labour. ideas. people in Ottawa and Washington leadership in housing field. To control the 'leap-frog' effect of His supporters include Dennis industrial or business ventures, the where labour and operating are abusing their power by not In 1972, Hellyer joined the wage increases followed by rising McDermott, leader ofthe Canadian costs looking for radical solutions to Progressive Conservative party, and prices, Hellyer called for a Labour Congress. rise continuously and proftis inflation." was defeated in a run for the party "Draconian solution." Organized labour knows, Hellyer become marginal. Investors are finding if safer to place money Paul Hellyer's political career The former politician, who said, "that it is better to have a 2% their in bank, they-earn began in 1949,and since then he has leadership in 1976. He is currently a looked like a cautious businessman, (wage) raise with no inflation than a the where a sure The result this has on the held senior cabinet posts under syndicated* columnist for the but sounded like some kind of raise with 10% inflation". 16%. 10% however, prime ministers St. Laurent, Toronto Sun, and just published inspired prophet, proposed a two- When asked why the Canadian economy, is high Pearson, and Trudeau. He resigned a book called Exit Inflation which part program. In the first phase, isn't making use of his unemployment and low growth. government from the federal Liberal cabinet in outlines his anti-inflation program wages andprices would befrozen for clear, solution, Hellyer In closing, He said "It doesn't rational 1969 on a matter of principle in detail. a 15 month period. Very few replied that "politicians are so busy matter what caused inflation. It now you've got to stop regarding the party's lack of increases would be permitted, and they don't have time for clear exists and it. The "at the end of 15 months, inflation thinking." should be close to zero", Hellyer In addition, he said that said. "although we say the human mind is King St. Residence Gone He then approached the more flexible, it is difficult to getpeople to innovative part of his program. change their ways, You just have to by The owners ofthis want September 1982, "After implementing wage and keep working on them." Blaine Connolly residence all agreements will The St. residence is no an increase of at least 20% and be between the student and price controls, you could bring At the beginning of his address, King directly of the university possibly as high as 25%; this would the owners. down interest rates", he said. Hellyer briefly outlined some of the longer part put a single occupancy at $1445 Investors would not suddenly rush effects that the present, staggering, residence housing department. The The rents will go up next year but their money down to U.S. banks, on reason is one which we are all and a double occupancy at $1321. the level of increase is as of yet rate of inflation is having university where interest rates would remain familiar with: money. Compared to the levels tentative. It will most likely be a people's lives.. (82/83) of $1330 and $1215. for high. He argued that capital would asking the members of the 1 his residence is not a formal part minimum of 20%. This does not deter After double occupancy, the difference stay in the country because the low planned own a of the housing department but the owners as they are confident the audience if they to becomes quite large. The owners rate of inflation would make house someday, he warned them existed within an informal rooms will still be filled. between the claim the increase is required to Canadian industry very profitable, that they should not expect to do so. agreement university As of September, the housing office and the owners of the building. offset the rising mortgage and and investment would then be Hellyer said that if we make a will no longer have the building on According to Mike Belanger of the operating expenses. The housing forecast based on the 1980 rate of direct referrel. This building will worthwhile. office, 'the lack of a legal department could appreciate some Furthermore, with low interest inflation (10 1/4%), the price "Of housing remain on the list of available offerr,ed a flexible increases but not at 20%-25%. rates, people would no longer be in an average house MetroToronto contract housing but students will be made in university There are certain functions the danger of iosing their homes, will be more than $500,000 by the arrangement' where the aware of the cost of living in the ifif felt it university is willing to perform businesses, or farms, Hellyer year 2000, a well beyond the could easily withdraw that building. sum within the present agreement. They commented. of most Canadians. was no in the students' best reach will guarantee the rooms are filled in According to Mike Belanger, this After 15 months, wage and price Moreover, he asserted that the interests. That time is now. the school year (fall and winter residence will still be able to fill their controls would be lifted, and 'phase room will face grave The cost of on-residence is going students in the terms).They also supply the dons for rooms regardless of the proposed of the program would be put finding jobs, due to the up next year in the neighbourhood two" difficulties the residence and assume increases. He claims, however, that into effect. stagnating effect inflation has oh the of 17% (including the meal plan). this is disciplinary actions for any "there comes a point where it is This second phase, Hellyer economy. He stressed at various Obviously, due'to overhead malicious damage which occurs. difficult for the university to explained, applies to only one-half points in his address that a high rate and labour increases. The problems started when the amount of the This will no longer be done by the condone it." With that, the King St. of our economy. It doesn't involve of inflation discourages investors increase on King St. was discussed. housing office next year. As of residence is now out on its own. the "free side, the little companies from putting their money into 18,1982 2 The Cord Weekly. Thursday, March THE CORDWEEKLY TheXord Weekly is published by Student Publication* of Wilfrid Laurier University.
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