Masonry Magazine August 1971 Page. 14
Washington Wire
(Continued from page 13)
Administration may take new steps. House Ways and Means Committee Chairman Mills continues to press for action.
SOME OBSERVERS ALSO THINK STEPS TO CUT INFLATION
will soon be stepped up by the Nixon Administration in response to steadily building pressures-despite the President's aversion to interference with private sector actions. Some Republican politicians fear the impact of inaction on their '72 chances. Economists note that government reviewing of construction wages is working: wage packages averaged 65.2 in the first-half, down from 89.84 last year.
Government price experts see little slowing in the tempo of inflation in the months to come, despite repeated claims of progress being made. Wage deals outside building continue high-12% in recent contracts. Even the moderate business recovery is already firming up basic materials prices.
THE FEDERAL BUDGET IS HEADED FOR ANOTHER BIG DEFICIT
this fiscal year. The red ink could hit a huge $26 billion in the year that opened on July 1. That would be a new postwar record, topping the $25 billion deficit of 1968. And it would follow a deficit of $23 billion in the fiscal year just ended. Federal spending in the current fiscal year will exceed Nixon's estimates-by at least several billions. The President set spending at $229.2 billion. Congress has voted $3 billion over requests for education, social security, food stamps and military pay. Other increases are certain to be voted soon.
Tax revenues will fall far short of the Administration's first estimate. The revenue shortfall is mainly the result of low corporate profits in the sluggish economic recovery.
SOME ECONOMISTS DETECT A THREAT TO RECOVERY
in the heavy borrowing the Treasury must do to finance this deficit. They believe the huge demands made on the credit markets will drive interests rates up to a point at which money is drawn out of savings institutions. Home-building would be damaged.
This is only a minority view. Treasury officials see plenty of money for buying securities. But the danger bears watching. High money rates have contributed to slowdowns in the past.
THE FEDERAL TRADE COMMISSION IS READYING A STUDY
on TV advertising. It will be conducting public hearings in key cities, starting in September. Immediate rule-making or court suits aren't contemplated by the Commission. The purpose of FIC's study is to educate itself for possible future action.
FTC plans to focus on four areas in its TV survey:
* The impact of TV advertising that is addressed to children.
* The extent to which TV unfairly exploits desires and fears.
* The technical aspects of TV ads that may facilitate deception.
* The physical, emotional and psychological responses to TV ads and how they affect standards by which ads are judged.
NEW ACTION TO PROTECT THE PUBLIC FROM HAZARDOUS PRODUCTS
is on the way. Congress is working on bills to authorize Washington to set standards. The goal is to reduce or eliminate unreasonable risks of death or of injury. Household injuries take 30,000 lives a year and harm some 700,000 persons. There are some areas of controversy between President Nixon and the Congress as to the form and extent and the teeth the legislation should prescribe.
The President wants safety standards set by the Department of Health, Education and Welfare. And he suggests that all product information submitted by firms be kept secret.
But some legislators want an independent agency to enforce a new law. They claim HEW wouldn't be satisfactory because it is already overburdened. And they want company data made available to the consumer public. The lawmakers say only with this data can consumers make rational product choices.
RECORD-KEEPING RULES REQUIRED BY THE NEW SAFETY LAW
are now in force. Employers must keep track of all deaths, illness, and work-related injuries involving loss of consciousness, restriction of motion or transfer of job and any case leading to lost work days or medical treatment beyond one day. Use of standard government forms is required for the logs and the summary.
THE WORSENING TRADE BALANCE MAY FORCE EASING
of the antitrust laws. Current antitrust statutes prohibit joint export ventures and joint research. But the idea of allowing companies to act in concert is gaining adherents. Secretary of Commerce Stans is the latest official to support modification. Earlier, Fed Chairman Burns and Treasury Secretary Connally hinted at moves.
Possible disappearance of America's trade surplus makes action needed. This may be the first year since 1893 that the U.S. will show a trade deficit. More serious imports are increasingly centering in high-technology items, the fields in which this country's know-how has been preeminent.
THE GOVERNMENT MAY HAVE TO START SUBSIDIZING
new product development, especially high-technology items which no single company can develop alone. Grants, cost-sharing, loans, and tax incentives are getting consideration. International industrial standards may also be urged by President Nixon. Widely varying specifications for products now hamper international trade. Nixon is now seeking a change to the metric system over a 10-year period. He believes failure to make the conversion could harm U.S. trade prospects.
"The most destructive aspect of the guaranteed wage plan is the fact that it endangers our free-enterprise system. There is a better solution (to hard-core unemployment and poverty) than a guaranteed wage... This is a negative approach which does not solve the problem Rather than give a man money, let us educate him to the glory that can be found in work. and then bend every effort towards helping him find and hold a job."-Lawrence Welk, orchestra leader and TV personality.
THINK
Masonry... Management... Money & You in 1972
Americana
Bal Harbour
January 7-12
masonry
August, 1971