Kahn Attacks Reaganomics

UM Sweeps East-West Classic 3-0 -See Sports Page 8 THE MIA UI\MC Volume 58, No.31 Tuesday, February 9, 1982 Kahn Attacks Reaganomics By PAMELA LIVINGSTON "an extraordinary increase in defense spending" the fault of the Reagan administration, Kahn New.. Writer that will be larger than the decrease in spending said. The Vietnam war demanded a sharp in for civilian programs, Kahn said. The Reagan crease for petroleum products and excessive ex Alfred Kahn, chief inflation fighter for the administration proposed an increase in defense penditures from an economy that was at almost Carter administration, told why he thinks Reag- spending of $33.1 billion and a cut in domestic full employment caused stagflation. So.too, did onomics isn't working. Ue spoke to about 300 spending of $43 billion. The Miami Herald re the enormous cost increases for energy, brought persons in the Ruth King Stanford Lounge Wed ported Saturday. about by OPEC. nesday night. Reagonomics is "schizophrenic," Kahn As chairman of former President Carter's charged. The administration's "tight money pol Kahn said the United States has "advanced Council on Wage and Price Stability, Kahn icy" contradicts its "loose fiscal policy" of large welfare state capitalism," another cause of stag worked two years to bring down inflation that tax reductions, he said. flation. rose from nearly 10 percent when he began of "The fiscal policy says 'giddyap' and the "We demand tax breaks and shelters, tax- fice to nearly 20 percent when he left. monetary policy says 'whoa,' " he said. The 25 free financing, government loans, all sorts of The former chairman of the Civil Aeronatics percent tax cut is "an enormous leap into the deductions on property taxes. We're the only Board rushed onto the stage some 30 minutes unknown." major industrial nation in the world that allows late. His plane had been delayed. By cutting taxes, the government depletes a deductions on mortgage interest, he said. "This is not the consequence of airline de big source of income that it needs to run federal "We are suffering from a growing gap be regulation," he quipped about his role in getting programs. Without needed revenues, the gov tween our expectations of what we want to get airlines the freedom to cut fares and enter new ernment must borrow from the Federal Re out of our economy and our real ability for the markets. serve. Government demand for dollars competes economy to supply it." Kahn held the audience's attention with with demand from the private sector and pushes "We're trying to subsidize everybody at the humor, but between rapid-fire jokes he packed interest rates up. The Federal Reserve raises the expense of everybody." information and opinion. discount rate at which banks borrow money to Nevertheless, Kahn said some of the Reagan Kahn praised the Reagan administration for prevent too many dollars from flowing into so administration's budget cuts were "outra cutting $40 billion from the federal budget. "We ciety and aggravating inflation. geous." |the Carter Administration! were only able to "The monetary policy is the only way the r The administration has failed "to distinguish cut about $l. > billion,"he said. administration is fighting inflation," Kahn said. between investment and consumption," he said. Cutting federal spending theoretically will The restrictive monetary policy will con decrease government demands on goods and tinue until the federal budget is balanced, he By cutting food stamps and subsidized day Miami Hurricane/STU BAYER. services that push prices up; decreased federal predicted. The deficit for the current fiscal year care, for example, the government takes away a spending likewise will reduce the amount of will be a record $96.8 billion, and the proposed poor working mother's incentive to work.' Former Carter Aide Allied Kahn money that the government borrows from the deficit for 1983 will be $91.5 billion. Working mothers will leave the job market for Federal Reserve, thus lowering interest rates The current high interest rates defeat rein welfare benefits under the Reagan administra and making low-interest loans available to busi vestment, Kahn said. "Nobody wants to save tion, Kahn said. Supplying food stamps and ness and industry. and nobody wants to lend." low-cost day care would be investment in this Using low-interest loans, businesses would The country is in its deepest recession since instance, he said. reinvest and expand. Production would in 1938; unemployment is at 8.9 percent, Kahn Spanish Leader Kahn's speech was sponsored by the Univer crease, and the taxes on the earnings of expand said. sity Lecture Series. Kahn's lecture will be ed production would bolster the federal budget. The recession, or stagflation — rising prices screened twice this week by the economics de But the Reagan administration also plans without increased productivity — is not wholly partment. Call the department for details. Tells Problems Of Spain, Europe By MARY CRONIN has had its days of splendor in the Head News Writer past. The problem is to give the auton At age 70, Lieutenant General omies certain powers and decisions, Manuel Gutierrez Mellado has seen while maintaining to the state those a great deal of change in Spain and matters necessary to the state. has contributed to that change. Autonomy is one thing, separat A former Vice President of the ism is another. The majority of Spanish Government from 1976 to Spaniards admit that autonomy i* 1981, he was appointed by King good but we don't permit separat Juan Carlos I and President Adolfo ism. Suarez. As the Minister of Defense There are always minorities that from 1977 to 1979. Mellado was take advantage of autonomy to go cited for his opposition to the at too far and that is not accepted, and tempted coup last February in the others who would like to see every Spanish Parliament. thing centralized. The balance that During that encounter, he rose in we have to attain is difficult, but defiance of the coup members to we are getting there. show that Spain's armed forces did not support their movement. Despite his firm denial that he has ever been a politician, Mellado bas often worked within Spain's political ranks and was a co-signer of thp Spanish Constitution. Mellado's military career began at the Military Academy of Zarago- za in 1929. and he fought in the Spanish Civil War. He is well known in Spain for having restructured the Ministries of the Army, Navy, and Air Force into one Ministry of Defense. Miami Hurricane IGIN A MOLINARO While at UM to speak at a sym posium on "Spain and America," Mellado Miami Hurricane/BOB ANTHONY Mellado was interviewed about the Hurricane: As there appears to be The Coral Gables Rescue Squad helped an unidentified UM student who suffered from a shortage of future of Spain and his involvement a considerable amount of strife in in its history. Spain's ruling party, the UCD breath outside of the Riehter Library Friday. The Coral Gables Police, who had arrived first on the scene, Hurricane: Do you feel that the (Union of Democratic Center), do assisted with the administration of first aid. armed forces will accept the entry you think its time as a ruling party of the Spanish government into has ended? NATO? Can the Spanish forces be Mellado: First, I am not a politi properly integrated into NATO ? cian and I don't belong to UCD, al Mellado: I think that they |the though I have been part of UCD' armed forces| are in perfect condi governments in which I was re Football Coach Praises Fraternities tion for integration into NATO. It sponsible for and in solidarity with can'l be done overnight, though. what the governments did. There would be negotiation, then That question is a matter for By LOURDES FERNANDEZ lege campus, since its the easy way honor bestowed' td a fraternity The 1982-83 members of the IFC discussion, then a gradual adapta prophets and I am not a prophet. Head Newa Writer out. But, we've had your continued member that has contributed much executive council were inducted by tion into NATO. In any case I think But, I do believe that UCD is an im support and commitment. Without of his time to the greek system at Craig Mattox, 1981-82 IFC vice- it will depend heavily on the negoti portant political ower that has its Coach Tom Olivadotti, defensive your help we just can't make it," the University of Miami. president. The new executive coun ations, as it would for any Europe ups and downs, but I don't dare pre coordinator for the Hurricanes, was said Olivadotti. This year, the award was given cil consists of Larry Baum, presi an organization. We won't enter dict what will happen. the highlight of the Third Annual Olivadotti's speech was followed to Edward Pozzuoli, 1981-82 IFC dent; Mark LeFerrara, vice-presi into it with blind eyes; it will be ne Interfraternity Council Banquet Hurricane: What about the possi by an awards presentation. One president, member of Lambda Chi dent; Scott Batcheller, treasurer; gotiated and it has to be beneficial bility of Spain becoming a Socialist held last Wednesday at the Faculty award given during the evening Alpha and many other student orga Bill Dykes, secretary; and Craig Du for the two sides. Club. nation? Felipe Gonzalez (the head of was the Plato Award, a prestigious nizations. Bois, member-at-large. Hurricane: All of Europe, includ Spain's Socialist Party) is very pop Also on the banquet's program ing Spain, is having a difficult time ular right now.

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