OCR Text |
Show DESERET NEWS, MONDAY, OCTOBER Americans are pessimistic about jobless rate, inflation By Louis Harris The prevailing public mood about the 4 economy is pessimistic. A percent majority believes the country is now in a recession and, by percent, Americans also believe that the country will still be in a recession a year from now. According to the latest Harris Survey of tinues to remain high. A sizable 45 percent of Americans believe that the prices of most things they buy are going up more rapidly now than a year ago, 29 percent see inflation equal to last years levels, while only 25 percent believe that prices are rising less rapidly or are leveling out. Throughout 1977, the public has not felt that the rate of inflation was easing at all. As to the future, public pessimism over inflation remains high. A substantial 67 percent of the people feel that a year from now prices will be rising at least as rapidly as they are now, if not more rapidly. A year ago, no more than 42 percent shared this dour view of the future of inflation. HARRIS 54-3- SURVEY 44-3- 1 1,536 adults nationwide, worries over unemployment appear to be rising again. The number of Americans who believe that joblessness is on the increase in their own home areas has gone up to 37 percent, compared with 29 percent who felt that way last month. The public now sees the unemployment problem as more serious than at any time since last April. Nor do people be live that unemployment will get much better in the next 12 months. A plurality of 41 percent believes the rate of joblessness will be the same a year from now, 26 percent believe it will be worse, and only 17 percent forsee an improvement. Only a month ago, the number of people who saw unemployment declining in the future equaled the number who saw it Thus, the reasons for the rather gloomy outlook of the American people about the economy are familiar: the combination of rising. Public apprehension over inflation con worry over high prices and high unemployment, precisely the troubles that have been plaguing Americans for the past several years. The impact of this prevailing pessimism on consumer spending in the months ahead is not bright. The number of people who say their top priority on what to do with their money is to "buy things I want and need" has slipped to 29 percent, which is well below a comparable 36 percent who felt the same way in February of this year. As a rule, unless at least 32 or 33 percent of the public indicate an inclination to buy products, a leveling out of consumer demand can be expected. The political impact of this continuing public pessimism about the state of the economy is particularly bad for President Carter. His overall rating on handling the economy has slipped from a percent positive rating last May to a current percent negative. On the specific issue of cutting the rate of unemployment. Carter percent negative rating. On gets a keeping down the cost of living, he is rated 9 percent negative. His rating on dealing with unemployment is one of the lowest recorded by a president in recent times, although his Republican in the White House have been rated lower on the inflation dimension. 31, 1977 A 3 JACK ' AflDERSOfl WITH ItS WHITTEN Giants try to throttle 47-4- 6 66-2- 6 consumer 74-2- 0 76-1- (c) 1977 agency Chicago Tribune Several of the nation's most corporations have joint'd in a conspiracy to kill the unborn Consumer Protection Agency. An awesome array of corporate powers have succeeded in blocking the proposed agency for more than eight years. They include such companies as Armour, Armstrong Cork, Bethlehem Steel, Exxon, Firestone, Georgia Pacific, Maytag, Shell, Sun Oil and WASHINGTON Rising premiums criticized insurance has its faults No-fau- lt States With Editor's note: Congress is considering a bill to require every state to implement no-fau- lt No-Fau- Auto Insurance lt minimum federal standards. Sixteen states already have some sort of lt is NOT without program. But faults. Here, in the first of two articles on auto insurance, is a look at how its no-fau- lt no-fau- working. By Louise Cook No-fau- lt ... 1975. It has accomplished everything we said it said Jack Davies, a accomplish, Minnesota state senator who sponsored a plan that began Jan. 1, 1975. is working well, said Kentucky Insurance Commissioner Harold McGuffey. Its doing the job its supposed to do paying more people more money and arranging quick settlements. We have had practically no complaints. At the same time, however, the drive for at the state level has stalled. Several lt states which passed laws early in the 1970s have been forced to make major changes. President Carter has endorsed the concept lt of a federal bill, but the measures have not gotten beyond the hearing stage and no action is expected before 1978. Premiums, meanwhile, are going up. And up. They increased almost 50 percent from August 1975 to August 1977. lt is working so well, why havent If lt laws? What went more states passed wrong with the existing ones? Why the delay in passing a federal law? And why are prices rising? is simple: each The concept behind party in an accident is compensated, for medical expenses at least, by his own insurance company. An individuals right to sue for further damages is limited. Expensive court cases and lengthy delays are eliminated. Massachusetts became the first state in the law. The plan took nation to enact a effect Jan. 1, 1971. Since then, 15 other states laws. They are: Colhave passed orado, Connecticut, Florida, Georgia, Hawaii, Kansas, Kentucky, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Pennsylvania and Utah. The most North Dakotas took effect on recent law Jan. 1, 1976. (Eight other states passed laws that were would lt The 1 6 states in black have some sort of no-fa- program. ult No-fau- lt lt no-fau- no-fau- no-fau- no-fau-lt no-fa- no-fa- Gene Glascock, supervising analyst for the Colorado Insurance Division, said has reallocated funds, putting the funds in the hands of the injured rather than in the hands of the attorneys handling court cases. It hasnt really altered the cost to the insuring company. lt One problem with existing programs, say officials, is that it is still too easy to sue. The laws generally allow a person to go to court after medical expenses reach a certain threshold. In nine states, the threshold is $750 or less. In New Jersey, it is only $200. I would guess that with continued inflation we would have to look at the threshold, said a spokesman for the Insurance Department in North Dakota, where a victim with medical expenses exceeding $1,000 is allowed to sue. With the increased cost of medical the $1,000 figure might not be services realistic any more, he added. State Insurance Commissioner Dick Rott-ma- n of Nevada, which has a $750 threshold, said : It doesnt seem to be much of a problem for a person to sue, even if injured only ' slightly. To correct the problem, authorities are considering raising the dollar threshold or eliminating it completely as New York and Florida have done recently and replacing it with a requirement that generally prohibits suits unless the accident results in death or serious injury. (Michigan is the only other state without a dollar threshold; it is one of only three states New Jersey and Pennsylvania are the which puts no ceiling on the amount others of medical expenses that can be collected. Legislation under consideration in Pennsylvania would limit basic medical coverage to $100,000, with companies required to offer a maximum of $250,000 to customers who wanted the extra protection. The proposed federal legislation would allow states to put a limit of $250,000 on benefits for medical expenses and would permit individual suits only in case of death or serious injury.) there may be some relief Fault or from rising costs. The frequency of claims a has key factor in determining rates declined, although no one is sure why. Auto insurance companies, many of which lost money during several periods in 1976, have reported enormous profits. They have not filed for rate reductions, but say the increased earnings may help offset future increases. We dont anticipate nearly the rapid rise in rates of the past two or three years, said a spokesman for State Farm. He said State Farm increases on a nationwide average have been ranging from 12 to 15 percent in recent years; this year, he said, the average increase will be 6 to 7 percent. The Consumer Price Index shows that auto insurance prices went up 12.5 percent from August 1976 to August 1977. That compares with an increase of 31.2 percent in the preceding year. Tomorrow: Ilow to cut your auto insurance ... Associated Press Writer auto insurance, once promoted as a means cf rutting costs for consumers, has failed to stem the tide of soaring premiums, hut authorities say it has succeeded in its main goal of getting benefits into the hands of accident victims more quickly. We consider it a smashing success," said William Sheppard, Pennsylvania insurance commissioner, when asked about his states lt program which took effect July 19 but they place no described as limitation on the right of an accident victim to sue and cannot really be counted as part of the system.) One reason for the problems with lt is a lack of understanding about what it can and cannot do. A recent Gallup poll showed 69 percent of the public does not understand how lt works. lt supporters themselves may be partly to blame for the confusion. Ron Arnold of State Farm Insurance Co., the nations biggest auto insurer, said that politicians, eager to get support for the concept, appealed to peoples pocketbooks. They promised lt would lower that mistakenly premiums and, in some cases, ordered rate decreases when went into effect. Some state officials concede privately that the money-savin- g claims were a come-o- n and not realistic. They say now that the advanare not monetary. tages of lt There are several reasons for the lack of cost saving. generally applies only to bodily injury. Property damage stays under the old system the insurance company of the motorist at fault has to pay. And property damage, according to State Farm, accounts for 60 cents of every dollar you pay in premiums on a nationwide basis. James Hunt, director of the State Rating Bureau in Massachusetts, said bodily injury rates dropped 45 percent from 1970 to 1976. he said, they would have Without increased 63 percent. The real proof of our success with is the steady reduction in bodily injury insurance rates, said Gov. Michael S. Dukakis, who, as a legislator, was a major no-fau- no-fa- no-fau- No-fau- no-fau- it no-fau- Nc-fau- lt lt, no-fau-lt sponsor of the states law. no-fau- lt Unfortunately, the rate reductions for bodily injury have been counter-balance- d by rates for other coverages which have gone up about as fast as bodily injury rates have come down." Other officials said the rate increases would have been even worse without Dr. James C. Nicholas, staff director of an ad hoc Automobile Insurance Commission in Florida, said that the cost of commercial vehicle insurance which remained under the conventional system has risen 130 percent since 1971. Auto insurance, under has risen 100 percent in the same period. State Farm said a survey showed that the average increase in automobile insurance rates in the 16 states from Dec. 31, 1970, through the end of last year was 24.6 percent, compared to a nationwide average boost of 27.7 percent. Authorities also say that while has eliminated some of the legal costs surrounding accidents, the savings has been off set by the fact that more people are getting benefits since they are automatically paid by their own companies. A Department of Transportation study showed that in Connecticut, an estimated 25 percent more accident victims recover economic losses under lt than under the . traditional system. lt With this system, people no "longer have to worry about beggaring themselves to pay for their injuries," said Milton Friedman, counsel to the New York State Insurance Department. And people in singlecar accidents who never got anything under the old law are also being compensated. lt, no-fau- lt no-fau- t, bill. Outdoor classroom great way to teach Christian Science Monitor News Service John Allen and BELLINGHAM, Wash. Tim Shepard, two teachers at Deming Elementary School in Deming, Wash., recentto ly took a bus load of fifth and view and study Coleman Glacier on 10,788-foo- t Mt. Baker. Prior to the trip, both teachers presented slides and had discussions about glaciers Viewing slides and discussing the pictures is different from seeing the real thing. But the children did go geared to look for such things as a valley, moraines, crevasses, ice falls, shear line, tongue of the glacier, ice cirques or the birthplace of a glacier, and glacial meltwater. Climbing through a part of the Mount Baker National Forest up to Kulshan cabin on to the area above timberline, hiking through an incredible number of loose rocks, jumping over several rushing streams, which added to the adventure, Allen gathered them together and got the group thinking, as he said, Well about 150 years ago, which isnt very long in geological time, the people then living in the world, knew practically nothing about past ice ages on our earth. How do you suppose they found out about them? After all the people who lived on earth a thousand to a million years ago could not read or write, and they left no records in newspapers, magazines, and books? sixth-grade- rs $ The class considered this. Someone asked, could you find out what happened thousands and thousands of years ago? A man named Louis Allen explained, Agassiz, who liveu in Switzerland and a friend, Charpentier, went hiking looking at glaciers in the Alps. Just like we are doing now. They ',nind boulders in the lower valleys that were different from the bedrock in the valleys. They wondered why. Boulders should match parent rocks. After much searching, Agassiz found matching rocks however these rocks were far apart. Boulders down in the valley matched parent rocks high in the mountains. What had happened to separate them? Agassiz asked that very question to Charpentier who told him the farming people here in the valley bel; ive the glacier carried these big boulders down from the mountain top. Then Agassiz became a detective and really started looking for clues that could show that giant glaciers moved a great many things in many different places. Allen added, You know you are standing on a moraine, or debris left from a glacier larger than the present one. As these giant glaciers melted during the ice age, our northern 3,000 miles of the United States was completely covered with ice. Different critters lived here then. Also, with so much of the earths water trapped in the glaciers, what happened to the ocean? How can you show that a A girl asked. They have formed a pressure bloc which they call Ad Hoc Consumer Issues Working Group. This lobbying force has pulled wires, scratched backs and twisted arms on Capitol Hill. It has also provided speeches for willing conblistering, tlie lt insurance meeting auto United Airlines. How er gressmen. Despite these efforts, the consumer legislation squeaked through the House Government Operations Committee last May by a 22 to 21 vote. It would create a small, independent, nonregulatory agency to represent the consumers in the policy councils. But the horrified business nabobs saw it as an institutionalized Ralph Nader, with all the harassment powers of the federal government. They got busy behind the scenes, therefore, lining up votes to strangle the agency in its crib. But the congressmen engaged in some backroom strategy of their own. They worked out an agreement to modify the legislation to satisfy some of its critics. This might get the bill past the formidable opposition that the Big Business lobby has organized in the House. Word of the compromise leaked out and the alarmed corporate powers called an emergency meeting the other day at the Washington Hilton. There was much bellyaching and backbiting. Some businessmen complained that no one let them know what was going on. Others cursed the Carter administration for trying to sneak the hated legislation past them. Armstrong Cork's bluntspoken Emmett Hines, who presided over the secret session, was not interested in a compromise that would satisfy both sides. He just wanted to bury the Consumer Protection Agency. The better the bill, he snorted, the worse it is for us." Another participant also rejected any concessions, warning the assembled business tycoons to remember the Trojan Horse story. The moral of the story was to beware of strangers bearing gifts. Still another warned that the White House would throw its full weight behind the bill because There is a big need for a White House victory, and this could er well be it." assembled tycoons agreed to make a effort to defeat the consumer bill. Already, congressmen are being bombarded with calls and letters from their friends with corporate connections. The last-ditc- h THE WRIGHT MAN: Hardworking Joe Shosid n band who beats the drums for House Democratic leader Jim Wright in Fort Worth, Texas. During the past two campaigns, Shosid ran Wrights congressional office in Texas, served simultaneously as Wrights campaign treasurer, disbursed campaign funds to his own advertising agency and purchased campaign ads through himself. Here arc the fascinating details: Shosid drew a $27,000 annual salary from the taxpayers until the end of last year. He also owned a firm called Advertising Unliis a one-ma- mited, which handled Wrights political advertising during the two campaigns. He funneled $42,855 in campaign business through his own agency. Last December, Shosid sold his advertising agency and gave up the campaign treasurers post to avoid even the appearance, he said, of a conflict of interest. To ease the sacrifice, Wright quietly increased his congressional salary to $38,000. As campaign treasurer, Shosid previously helped raise $132,435 for the congressmans 1976 campaign, although Wright had an easy campaign and didnt need the money. Many of ttie contributions came frot t the aerospace, construction and highway lobbies that need a friend like Wright on Capitol Hill. Both Wright and Shosid talked to us at length. The congressman admitted Shosids juggling act was unusual but insisted it was not unethical. Wright added that he was unaware any income at all had gone into Shosids firm. Shosid claimed that most of the money went to pay for ads and commercials, with only about $5,000 going to the firm in commissions. His total profit on the campaign, Shosid told us, was not more than $1,000. Footnote: Wright himself is a skilled advertising man and collected $6,000 in fees from the Shosid firm several years ago. (c) 1977 United Feature Syndicate. Inc. Navy desertions jump Chnsiun Science Snow-cappe- d Monitor New Service pfttlo Mt. Baker is quite an outdoor classroom. cant tell that all very glacier, measuring it and monitoring it. by looking at it. Also Ive gotten some books you can study when we get back to Deming. If you read them This ice isnt water, and it isnt melting here. glacier really moves? You that ice is actually moving Allen had to end the discussion, and he did when the class was eager for more information with a quiet, You can use your intellect, and imagine what a giant ice age was like, by learning about this mini-ic- e age right beside us. Todays scientists are studying this so and understand them, you can go on to more complicated books. Teaching that makes the past come alive and shows how the present-da- y environment works is real teaching. (C) 1977 Christian Science Publishing Society 4 WASHINGTON (UPI) The Navy says nearly 32 out of every 1,000 sailors deserted in the last 12 months, many of them leaving because they had been assigned sea duty. The rate of 31.6 desertions per 1,000 was the highest in the Navys history, almost four times the number who fled at the peak of the Vietnam war. Navy officials said 79 percent of those who deserted were assigned to a ship. Dislike of sea duty was considered a major contributing factor, as well as the fact that deserters now are usually discharged officials said. instead of The figures for fiscal 1977 ending Sept. 30, snowed a steady increase in Navy desertions since 1972 while the Army, Marines and Air Force have been declining. court-martiale- d, |