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Show Thursday, September 13. 1979 Teacher Strikes Should Be Outlawed' "Teachers' unions in counties across the country are pressing school boards and taxpayers to increase their pay and benefits by going out on strike. These strikes - often and illegal, always harmful to the tens of thousands of students who are adversely af must be fected outlawed," says Thomas J. Donohue, executive vice president of Citizen's Choice. "To sit back and permit this disruption of our nation's educational system is unthinkable." Donohue claims teachers and other public employees traditionally enjoy tenure, job security, work rules and 'Food Retailers Unjustly Charged By Pres. Carter' President Carter's recent statement that food retailers are profiteering from higher food prices was a surprise to Utah's food in- dustry, according to W. Lawrence Alder, president of the Utah Retailers "It is unfortunate," said Alder, "now that election fever is beginning to sweep the land that the food industry apparently has been targeted to become one of the whipping boys for inflation and high prices. other benefits not available to the private sector. In addition, "they benefit from a virtual monopoly on the basic services required by the country." This puts taxpayers at the mercy of those public servants who are no longer committed to protecting the public good in return for the special privileges they enjoy. Calling for public employee strikes to be outlawed, Donohue would require that those who non-salar- y strike should be disciplined or dismissed, and those who lead such strikes should face the possibility of fine or imprisonment. Striking employees should lose their tenure or be fired and replaced "with employees who are willing to work." Grocers the To IBte Given My to the whim of irresponsible union Sherman Kendall Acclaimed International Stylist leaders and thoughtless public employees, says Donohue, who believes that a clear expression of the will of the people in this matter will help stem the tide of public employee strikes. Public employees must be treated fairly, and appropriate mechanisms must be developed on the local, state and federal levels to assure a timely hearing and consultation on employee grievances and demands, C ' f " 7-- I ' 1 T- says Donohue. He noted, however, that binding arbitration by a third party which commits a community to an economic settlement requiring the raising of is taxes, H My completely unacceptable. Association. Alder claims the industry is doing better than MMEIE OTAATTTTR SWILIE cannot Communities afford to be held hostage I V T general economy in controlling inflation. "Inflation of the economy is running at better than 13 percent, while the U.S. Depart, ment of estimates Agriculture food price inflation at slightly more than 10 percent for 1979. Carter has based his accusation against food retailers on the fact that the farmer is receiving less for his products today than a year ago, which in many cases is true, Alder said. The President is overlooking the fact that the farmer's share of the food dollar is d slightly less than of the total. However, in 1977, for the first time in history, the cost of labor (32.7 perone-thir- cent) exceeded the farmer's share of the total dollar. Just recently contracts in the newly merged of Union the Amalgamated Meat Cutters and the Retail Clerks Union are showing increases from 9 to 10 percent. In the last two yearslhe minimum wage has increased 26 percent with another seven , percent increase scheduled for January 1, 1980. The cost of food is directly related to the cost of labor in our modern economy," he said. Alder stated that another prime factor in rising food costs is the cost of transportation. Fuel costs have placed the food industry on a tightrope. On August 1, 1976, it cost a meat packer in Utah 58 cents per mile to run his trucks. As of August 1, 1979, that cost had gone to 89 cents per mile. The 31 cents per mile increase is the direct result of the increasing price of diesel fuel which went from 33.46 to 71.2 cents (bulk rate, before taxes) per gallon in those three years. That is a 112 Easy Money Some startling figures recently reported by the Wall Street Journal reveal an economic sickness which most of us knew was prevalent but have chosen to ignore. Credit buying has pushed our national consumer debt to a record $1.16 trillion. In Utah it's about $10.2 billion, some 13 percent above the previous year's level. In spite of the enormous indebtedness, money remains fairly easy to obtain, and consumers seem undaunted by higher and higher interest rates. Economists are now saying this trillion dollar consumer debt is a major factor in the current national skid toward a recession. Ken Goldstein, associate economist of the Conference Board, a business research organization based in New York City, says, "The ratio of consumer borrowing to net income is higher than in more than a decade, including the peak of the last expansion period that predated the 'big' 1975 recession. If consumers continue to be so far in debt that they have to curtail spending, (to keep up with time payments) all ingredients will be in place for production cutbacks, factory closedowns, and finally a deep recession starting in the fourth quarter of 1979 - Come Into The House of Sherman Hair Company and get acquainted with us (Fall)." According to Goldstein, the ratio of new borrowing to take home pay rose to a high of 3.1 percent in the winter of 1978. The water mark, previous of this time, was the 2.8 percent ratio in the first quarter of 1973, the peak expansion period before the last recession. The peak ratio is now on the decline, and Goldstein says this is an indicator of the recession. ratio passed a peak in the past," he explains, "a 'Every time the consumer-deb- t recession followed shortly thereafter." H. Spencer Nilson, publisher of the Nilson report, says credit card delinquencies are creating an "explosive situation." According to the economics publisher, "Never before in the history of our time have there been so many cards, so many lines of credit that exceed people's ability to repay." Confirming Nilson's observations, U.S. bankruptcies, which had been on the decline, are up now more than 8 percent, and consumers are more willing to admit they can't handle their payments. Bankruptcy no longer carries the stigma it did previously, and less strict laws have made the practice easier. While more and more citizens get in over their heads, they strain the economy to its limits, forcing the Federal Reserve and bankers to tighten up on lending. This e has forced the current "prime interest rate" to an high of 12V percent. When the money dries up for these consumers, who are dependent on loans in the rob Peter to pay Paul syndrome, a lot of Utahns and Americans will be in deep, deep financial trouble, and so will the American economy. Bill Hendrix Come in and register from Thursday, September 13 until Friday, September 21 at 5 p.m. for one FDUtEIE Hair Cut and Style to be given by Sherman Kendall, Acclaimed International Stylist all-tim- d Use the Handy Coupon below (Capitol Watchdog) Coupon-I proximately one-ha- lf three year, and every three cents per gallon increase in the cost of fuel adds $25,000 in costs to them per year. Of great concern to the industry, Alder stated, is that in the first three weeks of August this year the price of diesel has increased nine cents more. Unfortunately, even with the price of beef decreasing at the farm level, the fuel increases for one meat packer have added $75,000 in new costs in less than one month. Of equal importance in this inflationary economy is the escalating cost of utilities. One food retailer in Utah reports that for the four stores he operates, his utility costs were $7,200 for the month of July 1976. That increased to $8,234 in July 1977; $10,484 in July 1978; and $14,465 in July 1979. In three years, his utility costs have doubled, Alder reported. Alder stated that labor, transportation and utilities are just three of the many areas of the food industry for which costs are rapidly rising. Name 0 Address Phone LOAN SPECIALISTS IN UTAH COUNTY and million miles per 1 00B WASATCH BANK -- percent increase. A company spokesman reported that their company logs ap- " If you are the owner of a small business you'll be happy to know that Wasatch Bank specializes in making SBA loans Come in and let us give you all the details and help you through the paperwork for this most worthwhile service of the SBA Obviously all loans do not fit the criteria of the Small Business Administration, but many do. Visit any of our four convenient offices from Lehi to Santaqum in Utah County and let us assist you in your consideration of this program Need a business loan for construction or expansion? Need additional equipment? I v Winner must be available Saturday at 10:00 a.m. for Hair Style Drawing held at 9:00 a.m. Saturday, Sept. 22 Styling at 10:00 a.m. PUBLIC IS INVITED TO ATTEND TThB HHnMse Need working capital? 20 South Center American Fork LENDER Member 75B-B4- 7 FDIC 1 OREM AT UNIVERSITY MALL 224-PLEASANT GROVE 225 SOUTH MAIN 785 5001 SANTAQUIN 100 EAST MAIN 754 3216 LEHI 620 EAST MAIN 768 8458 1 1 1 Ask for our Exclusive STS Hair Care Products Sold only at House of Sherman Hair Company o ! |