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Show September 1971 UTAH FARM BUREAU dilemnas are the result of undisciplined monopoly power of Excess Spending - Root Cause of Inflation President Nixons new economic proposals have received mixed reactions from the American Farm Bureau Federation. William J. Kuhfuss, president of the Federation, said President Nixons proposed cuts in government spending, restoration of investment-ta- x credits, repeal of the excise tax on autos, early application of income tax cuts previously scheduled for January 1, 1973, and efforts to safeguard the dollar are praiseworthy. These all recognize the in- -' fluence of the dollar in stimulating effective economic growth resulting in job opportunity in America, he said. Potentially the most effective measure in President Nixons economic proposals is the announcement that $4.7 billion will be lopped off the budget for the fiscal year that started July 1. We believe that excess government spending is the root cause of inflation and Congress should join with the President in resisting new spending measures at this time, Kuhfuss said. Many of our current economic anti-inflati- on labor unions. This economic power has been used to increase wage rates in excess of gains in productivity. The resulting higher cost levels create economic problems domestically and reduce our competitive position in world trade as indicated by our current unfavorable balance of trade. The exercise of monopolistic economic power whether it is by industry, labor, agriculture, or government is a threat to the maintenance of the competitive system, Kuhfuss said. Although a wage-pric- e may have helpful enterprise such controls treat the results of inflation rather than its basic cause. Unless something is done to deal with the root causes of inflation, we can expect a reoccurrence of the inflationary pressures which prompted current emergency actions. President Nixon indicates that he un- derstands this inasmuch as his program is a set of proposals designed to cool inflation by cutting government spending, trying to restrain rising labor costs, attempting to improve our balance of Page 7 exemption of raw farm products from the price freeze will have only a limited advantage, if any, for farmers with a freeze on the first process level. Farm parity, the measuring stick of how well farmers are doing in relation to the rest of the economy, is the lowest since the depression thirties and has been near this low level for many 90-d-ay months, Kuhfuss said. Imposition of a 10 percent surcharge on imports was viewed with concern by Federation President. and There is danger that such acpayments position, tion will lead to retaliatory safeguarding the dollar with ity . freeze short-ter- m psychological effects, past experience proves conclusively that in world markets to measures by our foreign generate a healthy trade customers and agriculture could be hurt seriously if our export economy. Kuhfuss said President Nixons market is curtailed. OGraaaMW owe c3 flEHM aca oscRffleoDso as a? ueb Essa received your member service sign offering ... get one today from your county president. If you haven't $200 reward r It PAYS to PREVENT Rulon and Bob. losses-A- sk the Smoot boys, Bill, yourself and your neighbors property Call your Farm Bureau agent today for details Be alert-prot- ect Jake Fuhriman hands Farm Bureau Insurance check to Smoot brothers for their role In the arrest and conviction of boat napper. UTAH FARM BUREAU INSURANCE COMPANY 629 East 4th South Salt Lake City, Utah 84102 Phone 521-369- 0 imsmbwislg |