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About Oregon daily emerald. (Eugene, Or.) 1920-2012 | View Entire Issue (Jan. 15, 1969)
Instructor criticizes continued surtax By RICK FITCH Of the Emerald President Johnson’s decision to urge continuation of the 10 per cent income surtax makes it apparent the U.S. is cutting down on butter to keep up the guns, a University economics instructor said Monday. Michael Best, asked by the Emerald to analyze the surtax, said it is impossible to discuss the tax without discussing in flation, the Vietnam war and the balance of payment situa tion. Analysis Because private industry is occupied to a greater extent than before in the production of goods for the defense estab lishment, Best said, it has had to cut back the quantity of goods produced for private con sumption. At the same time though, be cause of the large amount of defense contracts given private industry as a result of the war, individual wage-earners are re ceiving higher incomes. University cited as big business “The University is ‘big busi ness,’ ” noted a Eugene Area Chamber of Commerce newslet ter recently. The newsletter explained the University’s annual payroll is the largest in Lane county. The pay roll is $24,178,000 for a work force that includes 2,157 faculty members, 1,401 civil service em ployees, and 1,694 students. A total of $56 million will be spent in the Eugene area this school year. The University will spend $42 million. General educational pur poses will require $16.5 mil lion; $13.6 million tor special research and extension services, not including Tongue Point Job Corps Center; $6.6 million for auxiliary activities; $4.4 million for new building construction and $770,000 for bond interest and principal, said the news letter. Students spend $8 million an nually and $5.5 million is spent by visitors to the University. An additional $13.6 million will be spent by grants and non state foundations and 75 per cent of this will provide wages for research stall' members and assistants. In the future, each additional 1,000 students will increase the annual payroll another $1.3 million. These students will re quire 240 added employees. About 63 employees will be necessary on the teaching staff, 73 in the full-time service areas and 104 part time in the two areas. Developmentfund appointee named Phillip Robins, 36, former Roy Scout executive, has been appointed development repre sentative with the University Development Fund. The an nouncement was made today by William Dunseth, executive di rector of the Development Fund. Robins will be responsible for fund raising in the corpor ate field, with emphasis in the Eugene and Portland Business Giving Programs. He has serv ed the Boy Scout movement for 16 years, most recently as as sistant national director of in ternational relations in New Jersey, and as assistant scout executive in Pennsylvania. Photographers needed The Emerald is looking for more photographers. Anyone in terested may inquire at 301 Al len or call the Emerald office, ext. 1817. In normal times, Best said, the wage earner would spend his income on goods and serv ices produced and provided by U.S. industries. Today, however, while the ability of the wage earner to purchase is high, the availability of goods to be pur chased is low. Consequently, a situat i o n exists in which the demand for goods far exceeds the supply. If this inflation were allowed to continue, Best said, it would have two major effects. One, it would decrease the purchasing power of the wage earner or la borer. Two, it would affect the bal ance of payments situation. As the price of goods in the U.S. increased, the purchase of those goods by foreigners would de crease. Also, people in the U.S. might turn to overseas markets, looking for lower prices. In addition, the expenditure of money for the war effort is largely wasted because none of it can be returned to the U.S. economy in the form of normal income or the purchase of goods, Best said. As a result of all this, the U.S. is paying out more money than it is receiving. Also, because of the tight money situation created by infla tion, investment would be dis torted. Speculative investment, tending to result in growth and development, would decrease and investment in land increase. The 10 per cent surtax, Best said, is a tax largely borne by the wage earner in the U.S. to cut down his demand for goods and services, thus making it pos sible for the federal govern ment to utilize more resources without the increased pressure on prices that would probably result in runaway inflation. The surtax attempts to bring the demand in line with the sup ply, stabilizing inflationary tend encies, he continued. However, according to Best, what is really needed to cure the U.S. economy’s ills is a di version of resources from the war effort into the private sector and other areas of the public sector. Without this, he said, the nation can expect the following to occur: • A budget reduction for so cial services, including pollution control, conservation, health and hospitals, transportation, education and efforts to elimin ate poverty. • Higher taxes. • Increased unemployment. According to Best, the deci sion to spend over 10 per cent of the U.S. gross national prod uct in the defense establish ment, particularly in the Viet nam war, has taken the biggest toll on the nation’s economy. Instead of continuing the in come surtax, the U.S. should seriously examine its priorities, and its allocation of approxi mately $30 billion per year to the Vietnam war, he said. Executives to attend confab on voting age Gov. Tom McCall and State Treasurer Robert Straub will at tend a press conference today on the proposed bill to lower Oregon’s voting age to 18. The press conference will be held in the press studio of the State Capitol building in Sa • lem. according to Roger Mallem, state chairman of of the Stu - dents for an 18-year-old Vote Committee. The proposed bill has been prepared by Lane County Legis lator Ed Fadeley and is support ed by members of both parties. I \ YEAR END SHOE CLEARANCE1 to 75% Off Save now on this season's smartest styles! All the looks you like in round and square toes, chunky or new higher heels, and g colors that blend or accent beautifully. Take advantage of the low prices now to complete your shoe wardrobe! FLATS: were 8.00-17.00 NOW 4.90 I I LOAFERS: were io.oo-i4.oo now 5.00-7.00 LITTLE HEELS, dress and sport shoes: were 10.00-28.00 now 5.00-13.50 All Remaining BOOTS 25% OFF All of our Famous Names Included ! 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