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Show Page Utah Farm Bureau News 4 May Out p(lks ECuMu . Inflation, Labor union monopoly, and a growing protectionist trade policy both here and abroad threaten to strangle the U.S. competitive enterprise system and national economic growth, William J. Kuhfuss, president of the American Farm Bureau federation, said here today. He addressed the Forum Assembly of Brigham Young University. Inflation, of course, is the number one problem in our economy today, and in this presidential election year it has the many political overtones, national farm leader said. These overtones are reflected in the preoccupation with attempts to treat the symptoms rattier than the basic cause of inflation which is government deficit spending. Most economists recognize that government spending in excess of income is the cause of inflation, yet no major effort has been made by the Administration or Congress to bring federal expenditures in line with receipts. In 1972 we have a projected deficit budget of $38.8 billion. This deficit is greater than the total U.S. budget in 1948. In 1972 a projected budget of $236 billion is twice the $118 billion budget of 1964. The interest on the government debt in 1972 is almost three times the total budget of 1938. In all the furor about food prices, the real culprit - government-fed inflation been has generally overlooked. However, in recent testimony before the federal Price Board, Farm Bureau clearly pointed out that food prices are not the cause of inflation. ' The pressures of inflation, Farm Bureau testified are primarily the result of excessive deficit spending (xi the part of the federal government and expansion of the money supply by the Federal Reserve Board. Farm Bureau further testified that it was shocked and distressed at the apparent lack of responsibility on the part of both the Executive Branch of government and the Congress with respect to deficit financing. Farm Bureau does not intend to permit the Congress and the Executive Branch of the government to go unchallenged in their efforts to slip, slide and duck on the issue of what causes inflation, Kuhfuss said. Continuing, the farm leader cited BEWARE OF PHONEY INSPECTORS HARDPAN . SOME CHIMNEY-REPAI-R RACKETEERS ARE IN THE AREA 7 he's All 1NVIST1GAUR AND DIDNT V VA 1 WARNWAr i THAT V 1 1 ' lj)! jqccor! TCI 7 N DAItfrfft CHARLEYS (DOMAIN !m the dangers to the economy from the increasing power of the labor union monopoly. If America is to remain strong and our economy is to grow and prosper, we must have a more equitable balance of power between various groups. There has been too much selfish advantage built into legislation encouraging a labor union monopoly which ignores the public interest. New legislative guidelines are needed to prevent any one segment or group taking undue advantage of other groups. With the monopoly granted labor, this workable balance between producer, labor, processor, and business is impossible. With fair guidelines, that balance can be maintained and enterprise can function. I recognize workers, including farm workers, have the right to organize and to negotiate with respect to the product they sell, which is labor, but workers should have a say in who represents them. To grant labor the monopoly that it now enjoys or assumes, is neither right or fair. In the beginning, the labor movement needed some legislative assistance in order to cope with the imbalances under which it was operating, but today positions are reversed and the pendulum has swung too far in the opposite direction. Monopoly power also is threatening our export market, both for farm products and industrial goods. In the last six months of 1971, the U.S. experienced a foreign trade deficit for the first time since 1893. We are importing more than we are exporting. This simply says we are not in a competitive position with our products. Overall wages and imposed labor demands are basically responsible. The biggest increases in both retail and wholesale costs are increased wages which are being reflected in everything from capital investments to hourly wages. We are all benefited by good wages, but excesses must be avoided if we are to remain competitive in the market. Wage demands must be related to productivity. In the long run, commodities are going to be produced where they can be best produced for the lowest price. We are a part of the world market and the world market in the long run is directed by the buyers and users of commodities. Trade is the moving vehicle for the production, distribution, and the use of the resources that provide the food, clothing and shelter of the people and the resources for the business of our world. We cannot maintain our job market, our production patterns, the expanding economy, and the standard of living we have learned to like, by building a fence around America and producing only for ourselves. U.S. agriculture, for example must find export outlets for the production from one out of every four acres if it is to grow and prosper. A growing protectionist sentiment, both here and abroad, also is imperiling expansion of our economy. The protectionist trend in this country is exemplified by a bill sponsored by Senator Hartke of Indiana and Representative Burke of Massachusetts which has the full The bill support of the AFL-CIwould hold U.S. imports to 1965-6- 9 levels and limit U.S. investments in foreign countries. If we adopt such protectionist policies, we can expect retaliation from our overseas customers, and we cannot expect the countries who are members of the European Common Market to consider our requests for variable import their eliminating seriously levies. If an agreement is reached whereby the Common Market Farm Bureau, he said, now Puerto Rico. With an average size of 3 per enjoys the largest membership in its history - more than 2 million member families in 49 states and Inflation, Labor Union Monopoly and Trade Major Economics Blocks PROVO, UTAH, April 20 . . 1972 lowers its variable import levies, it will mean a larger market for U.S. grains, tobacco and other farm products. The Common Market now accounts for nearly 20 percent of U.S. farm exports, and when it is expanded to include 10 nations next January, instead of the current six, it will represent the largest single trading bloc of countries in the world. There are also exciting new opportunities for exports of farm commodities, especially grains, to Russia and Eastern Europe. Since Russia is trying family, we are now serving more than 7 million people. Four of five farmers and ranchers who belong to a general farm organization, we encompass the bulk of American agriculture that produces food and fiber for the market. These fine people have an appreciation for enterprise, factual knowledge, resources, and the things that have motivated America to be the number one nation in the world. to expand livestock and poultry production, it could be a good customer for our grains. Consumers as well as farmers, workers, investors, and business all stand to gain from a free flow of trade between countries, Kuhfuss pointed out. When products are exchanged on a basis of each country producing the items it can produce most advantageously, consumers get the best product at the lowest price No one country, not even the U.S. can efficiently produce every product it needs. All the resources of Farm Bureau, Kuhfuss said, are aimed at freedom of opportunity for all -freedom to work, freedom to manage, freedom to market, freedom to produce for market, to plan a new business, and freedom to develop and learn new talents. Dr. Phil Shumway holds one of trophies to be awarded to winners for activities during Agriculture week. Spring Work Is Beginning SLOW MOVING VEHICLES ARE TRAVELING THE HIGHWAYS DO YOU HAVE YOUR S.M.V. SIGNS? PROTECT YOURSELF AND YOUR EMPLOYEES FROM REAR END COLLISIONS. SIGNS AVAILABLE AT COUNTY FARM BUREAU OFFICES AT COST. FARM BUREAU MEMBERSHIP PAYS |