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Show Page 26—THE HERALD. Provo. Utah, Tuesday, January 1, 1980 Spending Limit Proponents Target on 21 States NEW YORK (UPI) — Volunteer inflation fighters, cheered by voters’ approval of amendments limiting spending in California and Washington plan to push harderfor limits on both spending and taxing power in a numberof states “The California voters’ use of the initiative and referendum to contre! their elected officials has shown us how to get Congress to reduce federal spending, taxes and in- flation,”’ said Milton Mound of New York, organizer of the National Initiative-Referendum Association “The principal cause of inflation is that Congress still believes it is politically expedient — that it helps get votes — to spend more and more money every year without increas- ing the supply of goods or services anyone would buy,"’ Moundsaid “The remedy,” he said, “is to make spending a political blunder and annual reductions political necessity Arthur Milton, an insurance and investment counselor wi tias written two bookson inflation, wenta bit farther. What is really needed to halt inflation, Milton said,is for the voters to take so much political power away from the professional politicians and bureaucrats that they actually will begain to fear for their professional tenure and their prospective pensions unless they bring spending and inflation under control. Richard Headlee, leader of the popular taxpayer movement in Michigan, said the year since the adoption by Michigan voters of a tax-limiting amendment had resulted in an absolute turnaround in the state. “In the 10 years before the amend- ment, state and local taxes in Michigan increased twiceas fast as the people's ability to pay Headlee said. In one year the amendment has caused rollbacks of between $40 million and $50 million in local taxes, he said citing tax cuts in 70 percent of the state's counties, 74 percent of the schoo! districts, 72 percent of the townships and vil. \ and 42 percent of the cities California has had large reductions in taxes since the Jarvis amendment, also known as Proposition 13, was passed two years ago limiting the amounts that could be coilected. This year the voters pas- sed Proposition 4 which puts limits on spending Mound believes similar results can be obtained without constitutional amendments in the 21 States that have provisions for in- itiative and referendum issues on the ballot. His association has formulated a tax-limiting initiative called National Proposition One. It is designed to roll up an avalanche of votes to convincepoliticians that unless they cut expenditures by | percent immediately and at a compounded rate of 2 percent annually for four years, it will be an odds-on gamble they will be defeated when they comeup for re-election. Mound's group confidently expects the New Jerseylegislature to ut National Proposition One on the allot in the Garden State next year and he hopestogetit on the ballot in the 20 other initiative-referendum states in one to two years. “Once the voters in the referendum states make themsleves heard it may be assumed,”’ Moundsaid, “that pressure will mount in the legislatures of the disadvaniaged States to follow the lead.” Moundpointed out that Thomas Jefferson “foresaw as the main weakness of our representative democracy that those we elect as our agents to govern acting in their ownself-interest. will do allin their power to retain and increase their power.”” Jefferson foresaw Mound said that “the solution is for the electorate to reassert its sovereignty vigorously from timeto time.” It is not possible or advisable today to go all the way back to Andrew Jackson's ruthless ‘turn the rascals out’’ and fire all government workers with every change of administration. Arthur Milton said however ‘the politicians must be made to see that the American public is getting fed up with continued high spending and inflation and is beginning to wonder if professional politicians and professional civil servants come remotely near being worth what they cost."” Milton also said he now believes inflation is the biggest reason the crime rate keeps going up in so muchof the country. ‘It makes people feel hopeless. Desperation drives them to chicanery and theft and thento violence,” he said. With inflation running at 13 percent and theinterest rate for prime business loans at a record 15%percent, public debate over the cause and cure of inflation has reached feverish pitch. While the governmentusually is cast as the villain, a panel of academic and governmentexperts. meeting recently at Massachusetts Institute of Technology, said the overcautious psychology of modern business deserves some of tie blame The panelists, who included Sen Adlai Stevenson D.-Ill., chairman of the Senate science committee, and his House counterpart. Rep. George Brown Jr., of California said large mergers and other measures and policies designed to reduce the risk elementin business. also stifle innovation and result in an overall drop in productivity and this fuels inflation to a much greater degree than usually is realized. The protectionist psychology of some segments of business and agriculture also is coming in for criticism on the ground that it agSravates inflation by reducing competition. The Carter Administration won considerable praise from anti- inflation activists (and others) for turning down the efforts of Florida Browers of tomatoes and other vegetables to get price protection against imported Mexican produce The same consumerists and antiinflation activists praised the House of Representatives for defeating the domestic sugar growers’efforts to Taise support prices. Even the itals have come in forcriticism. hospitalindustry has vigorously opposed the effort of the House Ways and Means Commit- tee to limit hospital cost increases this year to 11.6 percent. claiming it is too much below the general infla tion level. But backers of President Carter's hospital cost containment bill say hospital charges have gone up four percentage points more than their real costs for maintaining existing services. In an editorial, The New York Times called the hospitalcost containment bill ‘the test of how much Congress really cares about inflation.” ‘Consumption Bias’ Inflation Cause? NEW YORK(UPI) — Inflation is eliminated by improving productivity and the wayto do thatis not to make le work harder but to provide more equipment, plant and tools, says Fletcher L. Byrom. . Byrom, chairman of Koppers Co.of Pittsburgh and head of the Committee for Economic Development, said in a recenttelevision interview, (Open Mind WPIX, New York) that Americans now are “liquidating the productive base ofour society.”’ He said he meant the capital base is being liquidated to such an extent that the private corporation might not be able to survive. Byrom saidit is significant that in urging reform of the tax system and the substitution of a value added tax for the social security tax and part of the corporate and individual income taxes, the chairman of the House Ways and Means Committee, Rep. Al Ullman,D.-Ore., had said he wanted to “eliminate the consumption bias in oursociety.” Byrom said hebelieves strongly that a bias in the public mind in favor of consumption rather than production can be disastrous and is a big cause of inflation. “Wages and prices are not the cause of inflation,”” Byrom said. ‘They are the manifestations of inflation ... and trying to put on voluntary or other kinds of controls is like taking aspirin to eliminate fever — it doesn’t eliminate the disease that causes the fever." Byrom said he is encouraged to think a turnaroundis possible because Americansat last are trying seriously to understand why weare in the condition we are in and what wecandotostopit. He said, in particular, it is necessary for the public and those in high office to understand the role of profit in spurring productivity. He said the elementalbut simplistic view ofprofit proclaimed by the pioneer economist Adam Smith simply can't be applied to the modern corporation. He said when Chairman Jerry McAfee of Gulf Oil Corp. said profits in theoil industry were good for society, what he meant was. ‘The profits are not taking anything away from you and me.Theprofit, over and abovedividends. which are not excessive, can only be used to expand productive capability.” The modern business must plowits profit back into productivity and that is what will eliminate inflation, Byrom said. To the extent that profits are artifically reduced. productivity is reduced andinflation encouraged. Ballerina Turns To Host of Things LONDON (UPI) — Dame Margot Fonteyn, perhaps the greatest ballerina of our time, may It's Tough. It Works. STORAGE FOR It's Versatile. It Grows. 1978 RECORDS Office or Home SAVE 20% ae Reg. SALE 191 7.15 57 Legal #4192, 8.30 6" Whatever you want. Perma Drawer 40005 are bul 1 hold anything you need to slore — from checksto letters to legal documentsto anythin: else And they do ital less cost — and with greater strength and more helpfulextras — than any ‘ther product on the market today Need Proof” ‘Then startwithconstruction. _Thengoonitothetime, ‘Thenwatch howthey can EveryPerma Drawer4000is space,andstruggles ‘keop stepwithyour builtwith: save: y'sgrowth: for Barkers Bea a1? 912.302 heavy duty storage box Strong aluminu closure reinforces boxfrom end SAVE 20% Letter Reg, SALE 4192-99 5.15 4!2 Legal Bheeck 459 «3.40 27? REDUCED MORE THAN 25%! FILE FOLDERS Heavy 11 pt. manila stock. LETTER SIZE 1/3 or 1/5 TABS LEGAL SIZE 1/3 or 1/5 TABS. SALE SALE A619 7.99 A rae eg. 8.75 ) Mite | Stare: never again dance in public. but she is suddenlyas much in the spotlight as ever. “It marks the end of one career and the beginning of another,"’ she has been quotedastelling friends. Fonteyn has not danced before the public for more than five months. More significantly. she stopped ‘‘classes’’ at the sametime. Forthefirst time since childhood — sheis now 60 —shenolongerkeepsupto the mark with continual training. She told an interviewerrecently she has no immediate plans to perform again. Yet Dame Margotis everywhereyoulook in Britain. On television she is the master of ceremonies writer and undoubted star of a lavish new series @8 nylonrollers in each draweraid quiet suspension movement ebaked enamelfinish for lasting beauty @ 22" drawer capacity ebrushed aluminum pull and label holder eheavy gauge steel postin each drawer @ Life Time Guarantee 4191-99 4.30 34 PENDAFLEX FRAME With Purchase Of A The snap-a-part W-2 available S-on-a-strip Hanging File Folers typewritten or bookkeeping machine use This formis available unprinted with your company Reade and adds ss Box Of Pendaflex START THE NEW YEAR 1 980 CALENDARS ‘Reterre! Celencer | SammyDavis Jr. and retracing Isadora Duncan's search for inspiration at the Parthenon of Athens For ‘The Magic of the Dance”’ is concerned with all kinds of dance. not merely classical ballet. “Ii's about people, events and places (which are) important, not onlyto ballet, but to many aspectsof dance past and present.”’ Fonteynsaid on the sleeve of her BBC record. The BBC's music and arts division calls the series “‘one of its most lavish productions ever.” It says the series proves Fonteyn “is not only a great dancer but also a great communicator. Certainly there was no cheeseparing economyin , making “The Magic of the Dance.’ is specifically designedfor handwriiten, LETTER OR LEGAL SIZE DESK STYLE WALL STYLE DIARIES certain to make its way to American screens — a six-part, $2 million survey of “The Magic of the Dance.” Simultaneously the British Broadcasting Corp.issued a record album wita Dame Margotacrossits cover. Also called “The Magic of the Dance,” it presents music from the TY series. She has a book coming out based on the series, again using the sametitle. The television series will treat millions of Fonteyn fansto the sight of her dancing with Nureyev and Baryshnikov. chatting with Fred Astaire and a "(5 per box) AT-A-GLANCE UTAH YOFFICE SUPPLY 377-5170 225-9529 489-7469 373-2430 69 E. Center Provo 744 S. State, Orem 191 S. Main, Springville 595 S. University, Provo |