Reagan may abandon campaign economics
By MIKE RUST
and GABRIEL BOEHMER
Of the Emerald
Opposing views have emerged within Pres.-elect
Ronald Reagan’s circle of economic advisors, and the
selection of Donald Regan to head the treasury depart
ment appears to be an attempt to avoid adding fuel to
the fire.
Many local observers say the appointment of the
president of Merrill, Lynch, Pierce, Fenner and Smith,
Inc. brokerage company is an attempt by Reagan to
avoid a showdown with either of the two economic
schools that furnished him with support during last
year’s campaign.
Observers also point out that Reagan appears to be
opting for business experience instead of economic
theory in his search for someone to occupy one of the
nation’s most important financial posts.
During his campaign, Reagan expressed support
for the ‘‘s."pply-side’’ economics embodied in major
tax-cutting measures such as the Kemp-Roth bill, but
things seem to look a little different to the Reagan team
now that it’s in Washington.
Already, the idea of massive tax cuts have begun to
take a back seat to the notion of attempting to reduce
the massive federal deficit, which is estimated at $60
billion for the upcoming year.
In fact, Regan has already indicated to the Senate
that the most cherished of traditional Republican goals
— a balanced budget — will probably be impossible to
achieve by 1984
The change in attitude between California and the
District of Columbia doesn’t surprise University political
science Prof. Keith Poole.
"When it comes to macroeconomic policy, no one
seems to know what works anymore,” Poole says.
Correction
The University library’s weekend hours are 8
a m. to 6 p.m. Fridays, 9 a m. to 5 p m. Saturdays
and 10 a m. to 11 p.m. on Sunday. The hours are
not as the Jan. 9 Emerald reported.
However, Barry Siegel, an economics professor,
says that isn't the case at all.
"It’s a question of what we do with the present state
of knowledge,” Siegel says.
He suggests that it simply isn’t possible to live for
the moment — economic reality requires that more
attention be paid to the long-term effects of policies
enacted today.
No one mentioned any barriers to Regan’s confir
mation by the Senate.
The nomination indicates that "Reagan's a lot
more pragmatic than most people think," says econ
omics Prof. Ross Anthony. Poole agrees, pointing out
that Regan is “in the mainstream of the Republican
party.”
Anthony says that Reagan’s choice for chair of the
board of economic advisors will probably indicate
whether the economic wind is blowing toward supply
side or budget cuts.
“As far as I know, he hasn’t been allied with either
of these groups," he says. “It's unclear now what’s
going to happen.”
Anthony points out that congressional Democrats
may delay tax cuts or severe budget cuts as a weapon
against Reagan. At the same time, Rep. Jack Kemp,
R-NY, has indicated that he would oppose any delay or
decrease in the proposed tax-cuts.
Regan’s background has been primarily in the
business world. Still, many local observers pointed out
that the management skills he developed at the helm ol
America’s largest brokerage house could prove to be
an asset in his new position.
John Elorriaga, chairman of the board of the First
National Bank of Oregon and a personal friend ol
Regan, describes the secretary-designate as “an ex
tremely smart individual with a reputation of being ver>
analytical.
"He tells you what he thinks, whether you like it or
not,” Eloriaga says.
Some people might say that Regan, because of his
connection with Merrill Lynch, could enter into conflicts
of interest as treasury secretary. However, most local
observers feel this is unlikely.
"They had to review all that," says Peter Murphy,
Lane County businessman and GOP National Commit
tee representative. "He came through the hearings in
pretty good shape."
Murphy, who is a member of Reagan's transition
team, says Regan’s corporate background and exper- 4
ience will enhance his expertise in the treasury position.
The only real criticism of Regan came from econ
omics Prof. Edward Whitelaw, who feels the Reagan
cabinet is too conservative.
However, he feels confident that compromises will
have to take place in all areas of the budget, except
where the Pentagon is concerned.
Local leftists plan
alternate events
Suffering from a case of Reagan-induced nausea?
Then the Peoples' Inauguration Day march, rally and
concert Saturday might help settle your stomach.
Marchers will convene at noon at the Lane County
Fairgrounds, march through downtown Eugene and
return to the agricultural building in time for speakers at
2 p.m. and a concert at 8 p.m.
Anyone who opposes Pres.-elect Ronald Reagan's
policies or the rising influence of right-wing groups
such as the Moral Majority are invited to attend, says
Gemma Grott, general coordinator for the event.
More than 50 local groups have endorsed the
Peoples’ Inauguration Day since it was first proposed
during a protest against the Moral Majority in
November. Between 1,000 and 4,000 people are ex
pected to attend the activities, Grott says.
The concert will feature Grupo Raiz, a group with
roots in Chilean folk music, and the Wallflower Order, a
local dance group.
All events will be wheelchair accessible and will be
signed for the hearing impaired. Childcare will be
available. Monitors will be provided for the march, and
signs and banners will be encouraged.
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