Show Utah State University Logan Utah November 10 1975 Vol 73 No 21 12 Pages Icon ©mists views Properity coming former advisor says on New York City future by Tim Gurrister Senior Writer New York City’s future and the effect of a default on the nation inspire differing comments from three USU professors In a series of interviews Student Life asked Dean of the College of Business Robert Collier and Economics professors Roger Sedjo and Craig Peterson what lay ahead for our largest city Dean Collier saw implications in the troubles of the far-reaci- Big Apple “New York City will probably default by the middle of this month” he said He explained default as a temporary delay in payment to investors in this case bondholders Professor Sedjo said he guessed New York would default However he did not see it having too much of an impact He said a default brings out two considerations the changes New York City will go through and the affect on financial markets “For New Yorkers there will be an effect” Sedjo said “but for the rest of us it will be neg- the separation of federal and local government we here” Collier said “New can go bankrupt separately ligible” America’s population lives in Not Clear Professor Peterson said what will occur is not clear “It is not a closed question” he said “We don’t know exactly what will happen otherwise policies to handle it wouldn’t differ so much” He said one thing was definite New York would not cut its services Cuts in Services As a result the city would see taxes and unemployment rise and possible cuts in services ie welfare education etc Collier said Nationally the stock market would drop further and the Gross National Product could possibly lose 1 percent he said “There are 30 or 40 banks across the country in serious trouble if New York defaults” Collier said Collier gave a specific example of an effect which he said was quite possible He explained a cut in New York City school lunches could affect food processors nationwide for instance Cache Valley’s cheese industry by Kent Lauer Longer Look He said also long term investors will now take a longer look at a city before parting with their dollars They will require more information from a city The general bond market will experience little or no change said Peterson but not so with municipal bonds “Interest rates on municipal bonds have already gone up” he said Affect Image Abroad The fate of New York City could affect the United States’ image abroad said Collier “Europeans don’t understand Dr Herbert Stein formerly the President’s Council of Economic Advisers said the state of have York from In ter mountain held on Seminar Banking Annual the federal government while Paris can not go broke separately from all of France” Collier also said a New York default could cost President Ford his campus Stein said the rise in prosperity will be slow and moderate He said there is a continuing rise of output at a steady rate of six per cent “The great danger in the future is a policy of expansion which would cause our rate of inflation to rise” Stein said “However the country is more concerned with inflation now and this is reflected in government A surge of inflation might end the in 1976 Approximately four per cent of New York City If the city defaults Ford could lose that percentage in the vote he said adding that in a close election it could be costly Lindsay the Source The city’s problem can be traced to John Lindsay’s term of office said Peterson Students of the problem point to his administration he said “Social services spending went way up and pension funds became quite lucrative during his term” Peterson said New York City pays a lot in services Collier explained “They run a gigantic university system about 250000 students I believe” he said New York is port of entry for most US immigration thus-needin- a lot of welfare and runs about 18 or 20 hospitals he said Painful Complicated Collier said default in general can be called “painful and complicated” He outlined several solutions dismal view of our economy is fading and the country is entering a period of sustained growth and prosperity The University of Virginia professor spoke last Thursday in conjunction with the Sixth recovery” Rise in profits Stein said there appears to be a strong rise in productivity and profits “The rise is about 30 per cent and should continue at that rate throughout 1976” Stein said “Beyond ‘76 I’m not sure” Stein described the past decade of America’s economy as unusual and confusing (Continued on Page 9 ) - g One idea is a bill in Congress to guarantee New York bond pay- ments with conditions he said The government would more or Conditions less act as a balanced would be a budget cuts three within in services years renegotiation of labor pensions co-sign- er and so forth he said Gerald Ford’s plan is to let New York default to more or less teach them a lesson Collier said Ford feels this would make the city more flexible in spending and have taxpayers reassess their situation he said Don’t want special parking ms cers discuss person©! by Dave KIngham Senior Writer While Carlos Pinto’s recent arrest in a parking incident has called attention to Executive Council members past and pre- sent parking problems those involved can’t agree on a solu- tion Pinto ASUSU volunteers vice president had accumulated seven tickets for parking in the LDS Institute parking lot before he his car was impounded and imthe was arrested for resisting pounding last Wednesday r-- Pinto said that though the number of tickets he had gotten was a direct result of the running to meetings all over the univerValley sity Logan and Cache he feel didn’t he with his office the privspecial should be given lot reserved a of parking ilege No Special Privileges “I spend a lot of time running between classes and meetings all over and you just don’t keep people waiting while you look for a parking place” Pinto said “I don’t think we (Executive Council members) should get special privileges but something should be worked out so we have easy access to our offices” Pinto said he also feels that there must be a better way for the university to handle impoundments ASUSU President Nolan Johnson currently has six tickets for parking in the LDS Institute lot and is on the impound list at the Parking Office decal given Johnson this year as be an official member of the Insthe first studentbody president to titutional Council are not entirely clear sv' “It would be very convenient if you didn’t have to hunt for a parking space when you’re rushing from meeting to meeting” Johnson said “But I find it hard to justify in my mind giving special privileges like a reserved space or free decal to Executive N Council members” Johnson also said such a policy would cause problems for the Parking Office because once they start giving special privileges to one group they will have trouble “I think justifying reserved parking spaces would depend on the office” Gentry said “In an office like Carlos’ where he has a lot of off campus meetings a spot might be needed but in general I don’t think council members deserve that kind of special privil-eg- e Park Off Campus justifying refusing others CARLOS PINTO doesn't feel that ASUSU officers should receive privileges special parking Gentry said that as a result of “last year’s parking problems he Debated Often now parks off campus and walks “It’s a problem I’ve debated to his office He has been ticketed once often in my mind and I don’t have for parking violations only said an easy solution to it” Johnson this year he said Bill Gentry activites vice president compiled 31 tickets last (Continued on Page 3) Sunburst forum lot Lounge today Parking f STAB and as a result had his car impounded early this year $ Status Not Definite Stan Buxton director of Traffic and Night Watch said Johnson’s status is not definite however because the details of the special year during his tenure on |