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Show THE UTAH Q I Wednesday, August 25. 1976 Treasury Official Addresses Bankers challenge of the 70 s, according to Sidney Jones, Assistant Secretary, Treasury Department, is to break the vicious circle of economic overheating, inflation, recession, government, stimulus, overheating, etc." Speaking to a convention of the Utah Mortgage Bankers Association at the The Hilton Hotel Thursday, Jones demonstrated how government stimulus aggravates and perpetuates the cycle. The government stimulates a sagging economy with increased spending which takes two or three years to take hold. By that time, Jones said, industry has had time to recover and begins to pick up which results in the economy becoming overheated. Overheating stimu- lates inflation, producing high interest rates, which in turn, causes recession and prompts more government stimulation. In meeting the challenge to overcome that circle, Jones said we should follow three guidelines (1) recognize that inflation, unemployment, investments, output, etc. are all interrelated. There is no way to separate economic issues, (2) solutions should solve more problems than they create, and (3) we must control inflation, The most insidious force in our economy, according to Treasury Secretary William Simon. Jones said four economic myths permeate Amer- ican society: (1) We dont know how we got here, (2) We dont know how to get outselves out, (3) Governg ment is capable of the economy so that natural business cycles can be avoided, and (4) There is some unique solution to our problems. In reality, Jones said, we do know how we got here: Government spends It took too much money. the United States 190 years to achieve a budget of S135 billion, and only eight years more to double it. From 1974 to 1976, the U.S. budget fine-tunin- jumped 36 percent to $400 billion. And my economist friends assure me theres nothing wrong, Jones scoffed, tongue in cheek. To finance its spending. the U.S. government has in 16 of the last 17 years, Jones said, resorted to deficit Defecit spendspending. ing is merely the result of irresponsible fiscal policy, he added. To the second myth, 'Jones said the present administration knows very well how to get out, and could, if a Democratic-contrplle- d Congress would only let them. The budget proposed by President Ford for the coming fiscal year is only a 6 percent increase over last years budget, with a deficit of $47 billion. Congress wants to approve a budget deficit of $60 billion. Jones called for the government to get plctely out of the system. "They have virtually destroyed transportation, and are making similar headway with utilities, Jones said. We must move ahead with an energy policy, which is now a national disgrace. Its not for lack of resources," he said, only lack of political will. Public Sector Lacks Motivation Absence of the profit motive is the No. 1 hindrance to the public sector matching the productivity gains made in the last century by free enterprise. That is the conclusion of the Utah Foundation in its latest study of increasing production of government in Utah. According to the report, long-ter- m productivity gains by private industry in the United States have averaged between 2 Vi and 3 per year. The goods and services produced per worker today are nearly four times what they were fifty years ago, the Foundation said. Technological advances and the increased use of capital are responsible for d on Page 4b produc-Continue- Utah Merchants estimated their 1974 losses due to shoplifting close to $15 million . Merchants Fear Extortion Charges by Mary McM illan Gaber said. From fear of being accused of extortion, merchants are using only a portion of the new shoplifting law. According to attorney Albert Bowen, a major provision of the law, permitting a merchant to settle a shoplifting case out of court or sue for civil damages, has been challenged by judges. He said he doesnt know of one judge who supports it. Judges do not want to see this law enforced unless the criminal aspects of the case are taken care of first, he said. They say offense has taken a want proof shoplifting they place before they enforce the civil remedy, he added. According to Linda Kener of security department, the store was using the civil remedy for about two months this year. But too many judges thought the law was a form of extortion, so we stopped using it, she K-Ma- rts Judges Wary The provision for making an settlement with a shoplifter makes judges wary. The law does not require a mediator to be present during the conversation between the accused shoplifter and the store manager. Because the suspect is usually scared or excited during the conversation the potential for extortion is high, because the merchant may ask for payment for damages as well as the value of the item stolen. Merchants must be cautious when they determine what to assess the accused, said The Judge Leroy H. Griffith of Murray. merchant must be sure he understands the out-of-cou- rt law. The old law is better, Griffith cluded. Continued on Page 3b con- |