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Show I CLEARFIELD COURIER. July 18. 1979, Pag 2 Economists Soy Congress Should Rethink Minimum Wage seven percent. One economist noted that every minimum wage increase not only aggravates inflation, but it pushes employers to cut back on their work forces by laying off marginal workers or by not hiring them in the first place. And these marginal workers come from the groups already suffering the highest the rates of unemployment unskilled, the young and the black. There is general agreement under Presidents Nixon and among these economists as Ford, and Arthur Okun, Presi- well as government and indusdent Johnson's chief economic try officials that no one wants to deny a living wage to any advisor. They have reached the con- American. clusion that new increases But, they say, it is time to rescheduled for minimum wage think the minimum wage. Peron Jan. I, 1980 will be infla- haps, they added, this is tionary. This, they claim, is another of the New Deal p hardly good news to a public grams which require readj. already beset with double digit ment to meet current needs and not those of the I930's when the inflation. The minimum wage once U.S. was in the grip of the Deseemed an admirable piece of pression. It is generally agreed that the legislation. Many who voted for the legislation in Congress results of the minimum wage now have come to the conclu- law have not been consistent sion that increasing the min- with the intent of Congress. imum wage hurts most those it Unemployment for low paid was designed to help the workers and inflation for poor, the youth, the under-educate- d everybody are not very satisfyand the minorities. ing results, they added. Okun calls much of the douDespite the good intentions, ble digit inflation in our econ- minimum wage legislation will and, in fact, imwounds not meet omy two serious chalbecause it is caused by gov- pedes inflation ernment action. lenges of the 1980s From 1977 to 1981 , the and minority employment, the minimum wage will have in- economists pointed out. For far that reason, Congress will soon creased 45.6 percent , above the rate needed to keep be looking into ways to alter minimum wage earners abreast the current legislation. There appears to be solid with inflation. Studies show that every 10 economic agreement that Conpercent hike in the minimum gress should take a new look at wage reduces the demand for minimum wage as a way to low wage workers by six or slow down inflation. (PWS) Washington (PWS - It has been said that you could lay all the economists in the world end and still never reach a to end conclusion. But a group of distinguished economic leaders are agreeing on an issue that will be in the national spotlight in the comminimum wage. ing weeks These economists include William Miller, chairman of the Federal Reserve Board; Alan Greenspan, Chairman of the Council of Economic Advisors S. -- self-inflict- DAVIS HIGH band representatives receive trophy from Chamber President, Gary Mayfield for being top band in recent Clearfield parade. Pat Hohan and Pat Heaston are from Davis. rmjw o 00 McKay's energy Act passed WASHINGTON - Fuel McKay Synthetic Act Development The was unanimously reported out of the House Appropriations Subcommittee on Interior last Wednesday morning, marking a significant victhe for Utah tory representative and his energy initiative. McKay described the subcommittee action as dramatic and a first in The Utah my memory. and Gary Mayfield of the Clearfield Chamber of Commerce presents Sweepstakes trophy to Carolyn Stuart of "Mother ROGER BODILY Goose" shops. Democratic lawmaker referred to the fact that his an bill is basically authorizing measure, and would not normally have been considered by an appropriations subcommittee. McKay explained, I and my colleagues are becoming more and more frustrated with the apparent delays weve seen in getting energy legislation through the Congress. Meanwhile, national energy crisis grows more intense by the day. It will take dramatic and significant moves to bring about a rapid response. McKay announced his energy initiative a month ago. The Moorhead Energy Bill, by McKay, was passed by the House of Representatives June 27th. It amends the Job Corps won the trophy as the top drill marching the Clearfield parade. From left to right are Olive DuBray, Garica, Roger Bodily presenting the trophy, and Juanita THE CLEARFIELD group in Jesus E. Dowling. Bus record is good Dallas, Texas - (PWS) - Consider for a minute the millions of hours involved in driving bus passengers to and from cities and towns coast to coast. Operations 24 hours a day, 365 days a year, on surfaces ranging from modern, multilane expressways to old and narrow country roads. In conditions varying from balmy summer days to g Defense Production Act of 1950, giving the President winter nights. record. Figures compiled by authority to require synThe sheer magnitude of in- the American Bus Association thetic fuels production as a tercity bus operations in the show, for example, that over strategic commodity over 330 mi- the past decade intercity buses essential for defense. That United States llion riders travel more than have had lower accident fatal- bill uses loan guarantees, three billion passenger miles ity rates than railroads, air- procurement contracts, or each year greatly exposes lines, or automobiles. government-owne- d corpobus drivers to the risk of highOne of the intercity bus rations to achieve an output way accidents. companies that is making con- of at least 500,000 barrels per Yet the intercity bus indus-tr- y certed efforts to ensure safe bus day of synthetic fuels by 1985 through the years has 2 million barrels per day and achieved a remarkable safety iH) ULHcnIl The (Vliscr Keeps You Cool Without Keeping You Creko. Arctic Circle motor Cools up to 1 100 sq. ft. All work guarontood for 1 yoar parts and labor - Profosslonal Installation Rooftop Financing available VE SERVICE WHAT WE SELL appliance heating A 5975 So. 1900 W., Roy 773-844- 1 I haviCE IS OUR MIDDLE NAME" - yCeatilm Servlet Center 520 So. Stata, ClosrtlcW 773-48- 38 Because of tax and penditure organization in an analysis of HB 303, which was approved earlier this year. According to the study, if the limitations had gone into effect with the fiscal year, cumulative state and ' local savings in Utah over the following ten years would have amounted to $674 1967-6- 8 million. Bill. probably fast-trac- k judicial review. McKay said his bill will be considered by the full House Committee Appropriations next week. We have high hopes for favorable action there. The tenor of these times is a prelude to the worsening conditions ahead and demands firm and immediate action. Passage of my bill will require some unusual procedures in the House. But it would be a more convincing sign to the world of our national will to become energy performed would have been reduced or eliminated. When the limits become state effective, appropriations will be allowed to rise by not more than 85 percent of the percentage increase in the states personal income. For local units, the increased ceiling in local taxes will be equal to Read and want ads $2 week $6 month High priced shoes Washington - (PWS) - In the next twelve months, Americans will be forced to pay over two billion dollars more for shoes and other leather products due to a critical shortage of cattlehides, the basic raw material which is the foundation for the $4 billion U.S. leather goods industry. Whats worse, industry spokesmen say, leather products may not be available at any price unless American industry is allowed to buy more hides produced in the U.S. The spokesmen say the shortage is occurring partly because of a cyclical slump in cattle production in the U.S. More importantly, however, foreign nations have been permitted to raid U.S. cattlehide supplies at an unprecedented rate, they added. Furthermore, they point out, the U.S. has become virtually the only supplier of hides to g the world because other nations withhold their hides from the world market al' . together. cattle-raisin- Latest available statistics show that the United States has 5 percent of the worlds supply of cattlehides, while at the same time it supplies 75 percent of the hides traded on the world market. So imbalanced has been the supply for domestic leather tanners and man1 Cont. from Cot 3 operations is Trailways, Inc. With a fleet of about 2,200 buses, Railways, the nations second largest bus company, annually carries over 20 million passengers to destinations in 43 states.. And the Dallas-base- d company has assumed a leadership role in more areas that pro- -' foundly affect intercity bus developing with the legislative analyst. Another fiscal ac- problem, rapidly rising assessed limitation formula could completely eliminate the capital outlay program of a local district. Although the 1979 Utah Legilature did enact this statutory measure which places a lid on state spending and local taxes, it did not approve a resolution to limit expenditure increases in Utah by constituional means. Many tax and ex- limitations penditurecontend that such proponent a constitutional amendment is needed to prevent special interest groups from forcing a breach in the established limits. They claim that constitutional limits are to prevent necessary government from taking an share of the ever-larg- er total economic pie. Critics, on the other hand, argue that a constitutional spending limit expresses a basic distrust of representative democracy and tends to destroy the flexibility required by government to with deal continally It changing problems. therefore becomes difficult to meet sudden emergencies when government spending limits are locked in by a amendment. constitutional new The statutory limitations will become operative in fiscal years after December 31, 1979, for local units of government and after June 30, 1981, for the state of Utah. Thus, the limits will be applied to counties and specified special districts with the 1980 to calendar year, municipalities and other local units with the fiscal year budget, and to the fiscal state with the year budget. 1980-8- 1 1981-8- 2 Price Boost use the For Sugar in Offing larger and for Responsibility these data rests valuations will be adversely affected by the limitation provisions. In some instances, application of the permit the price for synthetic fuels; if any. The procedure will expedite the granting of permits and licenses by setting limits on processing applications' and necessary price total 7, proportion of Utah personal income going for state and local taxes. Foundation analysts point out that a major problem in Implementing the limitation in plan will be the difficulty data basic the developing (such as local population statistics) on which the limitation will be based. currently It production goals. Therefore, the McKay Synthetic Fuel Development Act sets a national goal of 1 million barrels of synthetic fuels per day by 1985 and 5 million barrels per day by 1990. The 7.5 billion will be used to pay the difference between the world oil market 1976-7- . the reducing gradually cording to the Foundation, is with respect to application of the law to local school districts. Because a substantial portion of the total local school tax levy is the 24 mills required for participation in the basic school program, districts with provides $7.5 billion funding, a fast-trac-k procedure, and a review procedure. judicial McKay says existing technology will of achievement By These population changes. limits will have the effect of state and local taxes would have been reduced by (160 million per year, or 19 percent below the amount actually collected. Such a reduction would have necessitated much closer scrutiny of spending priorities, and some activities and services limited, McKay said. Hie McKay Synthetic Fuel Development Act, advanced today, provides additional steps necessary to carry out Moorhead income per capita personal with an adjustment forlocal limitation enacted by the This was the conclusion reached by Utah Foundation, the private reasearch fuels development, and keeps the government role the to 90 percent of the increase ex- legislation 1979 Utah Legislature, local units of government and the state of Utah will have to undergo considerable budget tightening after this year. by 1990. This provides great incentive for the private sector to move into synthetic Cont Col. S SAVE ON ALL SIZES Butlgot tightening on ufacturers, that Americans now get fewer than one hide of every 4 sold by U.S, cattlemen. Less than a decade ago, U.S. industry was able to get 2 out of every 3 hides produced. Prices TYipled Cattlehide Formulate Laws prices have triin the last 17 months, acpled One area of bus safety in which Trailways has taken a cording to the American Footlead concerns Bus Rider Safety wear Industries Association. Prices for cattlehides have Acts, legislation designed to from 37 cents per skyrocketed e potentially dangerous in 1977 to more than pound situations on intercity buses.. $1.00 a pound in the first quarThe company is working acin a ter of 1979. It is the highest intively with legislatures of states to number flationary increase of any growing raw material produced formulate laws that will protect primary in our economy. drivers at the wheel as well as The high cost of hides passengers in terminals and today may close tanneries in aboard the bus. the very near future if Congress "We're convinced there is an does not act quickly to assure urgent need for these safety an adequate domestic of acts," Trailways President J. hides, at reasonable supply prices," Kevin Murphy emphasized. said American Footwear Indussafety. de-fus- tries Association President, Fred Mcister. Fofeifen buyers should not be allowed to walk away with a material American OPEC-Typ- Washington is e - (PWS) - There sugar in the U.S. at prices about half of what sugar sold e for in their own countries. growing worry in Washington that an OPEC-typ- sugar price increase may be on the horizon for American consumers. The concern is voiced by U.S. sugar growers who claim that the dumping of the natural sweetener by foreign producers might drive the U.S. sugar industry out of business and lead to the creation of a bloc of foreign sugar suppliers who could control sugar prices as effectively as the OPEC nations control oil. To expect an American farmer to compete with that type of illegal trade practice is unrealistic and unfair, Hughes said. Pending lYeaty i undet He said legislation consideration now, and if Congress passes a satisfactory bill, the U.S. would become a sig- natory to the International Sugar Agreement, a pending treaty that many observers say soluis the ultimate long-teroccurs when Dumping and to tion stable prices sugar foreign producers sell their domestic Essential supply. at less than their goods prices cost of production. Inthiscase, back-u- p legislation now before is needed. foreign sugar has been sold Congress also Nearly 100,000 Americans (dumped) in the U.S. at prices below production costs for work in farming, processing several years now in the ab- and distributing sugar, of sence of an effective national which 19,000 farm families are directly involved in growing sugar policy. President Carter terms sugar sugarcane or sugar beets. The essential to the American food indirect employment dislocasevere in many system. In addition to its tion dwould be communities. it is also sweetening ability, The sugar crisis began in needed to preserve food and 1973 when the Ford Adminisenhance its flavor. Robert H. Hughes, execu- tration indicated to Congress it tive vice president of the would not try to renew the Hawaiian Sugar Planters' AsU.S. Sugar Act. This sociation, said the domestic in- factor coupled with rumors dustry, which contributes $10.5 of a possible world shortage billion to the national economy sparked moderate speculative annually, is in serious trouble. buying. Following the ConLast year alone, he said gressional decision in June seven plants in Louisiana, two 1974 to let the Sugar Act expire in Washington and one each in at the end of the year, raw sugar Idaho and Utah have been prices soared, forced to close. In 1976 and Hughes emphasized that with 1977 other sugar plants were the discovery there was noclosed in Colorado and Kan- world shortage prices began to sas. He said dumping has had fall. With excess world producan impact on 22 states, 18 of tion and the U.S. market virtuwhich produce sugar beets ally unprotected, foreign proand four others, sugarcane. ducers dumped surplus sugar in Hughes said the Carter Ad- the U.S. at whatever price they ministration, Congress and the could receive. U.S. International Trade ComThe U.S. is virtually the mission (ITC) recognize that only major nation with no foreign sugar is entering the long-terpolicy to protect its U.S. in such quantities to be a sugar producers from attacks substantial threat to the survival by surplus sugar in the world of the domestic industry. sugar market. Cost of a domesIn the latest case of dumptic program would be less than ing, the ITC May 17 ruled that $1 a year more than each con-- , Belgium, France and West sumer now spends on sugar, Germany were dumping Hughes said. (PWS) farm-oriente- ' industries and workers need to have. , The AFIA expects that Japan will purchase a record 8.3 million hides in 1979, despite a world-wid- e hide shortage. If other nations continue to out- bid American industry for hides, domestic manufacturers will face a possible shortfall of more than 10 million hides in 1980. Americans face a tremendous disadvantage in bidding," said Meister. "The Japanese yen devaluation gives them an automatic 15 to 20 percent purchasing advantage against our sagging U.S. dollar. The result Is that, in March alone, more than 82 percent of all U.S. hides went to Japan or other foreign buyers.", The problem, Meister added, is complicated by.frozer hides supplies abroad. Arge tina, Uruguay, Mexico, Ind and other g natio withhold their supplies of hid from the marketplace. Th have export policies which t tain hides to support the domestic tanning ana manufa taring industries. So far the U.S. Gover ment has not shown genuii concern for the tens of tho sands of jobs at stake, or for t very survival of the leath goods industry," said Mei cattle-raisin- ter. Witto Letter to tha Editor |