Show BUSINESS and the tho STOCK MARKET MARIET by BABSON'S REPORTS INC Copyright 1971 CONGRESS WONT WON'T RISE TO NIXON BAIT BAITIn In a sweeping State of the Union message message mes meso sage to Congress and the nation President President Pre Pre- Nixon urged the adoption of proposals pro leading to the attainment of six great goals Welfare reform prosperity prosperity prosperity prosper prosper- ity in peacetime restoration and enhancement enhancement enhancement en en- of our natural environment improved health care strengthening of state governments through revenue sharing sharing sharing shar shar- ing restructuring of the Executive Branch of the Federal Government The recommendations the White House will send to Congress in furtherance of these goals will be numerous complex controversial Although designed to offer of fer leadership and guidance they are unlikely to quicken the legislative pace on Capitol Hill The President wants very much to light a fire under Congress Congress Con Con- citizens citi citi- gress urge governors mayors zens to prod Senators and Representatives tives to act promptly on his proposals In his eagerness for action he seems to be putting too many logs on the fire and could be smoked out State Of The Union Traditionally the annual State of the Union address of a President defines the condition in which the nation finds itself Ordinarily the speech itself is in intended intended in in- tended to be a rallying force for the correction correction cor cor- of ills President Nixons Nixon's message message message mes mes- sage failed to spell out details of the critical fundamental problems for which he will offer solutions And while the President did make a abid abid abid bid for public support to achieve the six great goals he outlined he gave practically practically no hint of the discipline and sacrifice sacrifice sac sac- which will be required to reach them He Ire did indicate hope of effecting effecting effect effect- ing a better rapport between the Administration Ad ministration and Congress thus setting the stage for compromises in some areas Prices And Wages In his message the President skirted the thorn thorny issue of wage and price escalations es as well as unemployment But Buthe Buthe Buthe he put himself and his Administration squarely behind the idea of an expansionary expansionary expansionary deficit budget as a principal tool in achieving his goal of prosperity prosperity prosper prosper- ity in peacetime a move mo not calculated calculated calculated cal cal- to endear him to conservatives He lie said nothing about White House louse jawboning gave no hint of what he ho would do if management fails to curb excessive excessive sive price boosts labor unions dont don't scale down big raises However the staff of Babson's Reports feels Mr 11 Nixon will follow up his steel rise warning with sharper criticism of future extra extra- large price and wage advances Social Security Welfare Revenue Sharing The Nixon Welfare Reform Family Assistance package will finally make it through Congress this year probably being enacted in tandem with the bill to increase social security benefits by at least five per cent up the monthly minimum to But nut passage wont won't come before spring perhaps not until midyear for 1971 Congress pace will be slow Revenue sharing with states and cities is another matter Congress is reluctant I to forfeit control over funds shared I leans Jeans strongly toward present grants system rather than a distribution with F no strings attached But nut need is great I governors and mayors are pressuring so we expect passage of a compromise I program late in the year Other Issues The President however seems prepared pre pared to send up to the Bill Hm too many sweeping weeping recommendations and Theres There's no chance Congress can cana a apt act t the bulk of these intelligently and constructively this year rear Hearings on the Nixon measures are bound to be lengthy length disputations and Senate fill fili on Vietnam foreign policy I other issues will tend to delay action on the Presidents President's requests Yet Yete we e do think Congress will hammer hammer ham ham- mer out a health insurance program for the poor that will likely include a revision of Medicaid 1 vote to keep the SST alive revamp the draft pass even more stringent laws to curb drug abuse and possibly raise the minimum wage from to an hour |