Cedar Rapids Gazette (Newspaper) - November 12, 1974, Cedar Rapids, Iowa
The Cedar Rapids Gazette: Tues., Nov. 12, 1974
Shortages, Devaluation, Oil, Spending All Fueled Inflation
By Sylvia Porter
NEW YORK - "If I had to populate an asylum with people certified insane. I d just pick ’em from all those who claim to understand inflation."
A smart-alecky crack from (►ne of today’s smart-alecky university economists? No. It was Will Rogers, America’s beloved humorist, who in a much simpler age long ago. came up with that almost incredibly up-to-the-minute observation. And I suppose that with Roger's warning
By Oswald A James Jacoby
“I had to bid a heart,” groaned East.
“I didn’t see anyone with a gun to your head ordering you to do so,” replied West.
We feel even stronger than West. The overcall made by East is the sort of bid that makes no difference most of the time. Occasionally, it turns out to be a winner once even
NORTH Di I
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♦ 9 6 5 ♦ A K 4
♦ 10 9 80 2 ♦ 7 5 3
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Opening lead —
seven years or so, but loses the rest of the time. East s overcall had proven terribly expensive.
The heart hid told South not to try a heart finesse and also showed him how to go about the business of end-playing East.
He went right up with the ace of hearts and ran off five trumps, while discarding a heart and diamond from dummy. Then he cashed all the clubs to come down to a three-card ending. Dummy held king-jack of hearts and a diamond, declarer queen-jack of diamonds and a heart.
East had to hold two hearts and would have been end-played with a diamond except that East had tried to get out of his trouble by chucking both the ace and king of diamonds so South actually wound up with an overtrick.
The bidding has been. West North
You. South, hold ♦ 4 3 * A y 7 ♦ K J 4 3 * \ A 4 Vt Ital do you do now ?
A— Double, lf \our partner w ill realise that this double is tor takeout and must not be left in. V nu are bidding on cards you know vour partnei holds.
TODAY S QI ESTRIN
Your pa ct riel bid' three clubs and Ka-4 bid- three -padev What
do vou do now?
Oscar Streaker Gets Sentence For Encore
LOS ANGELES (IPI) -Robert Opel, who stunned movie stars and an international television audience by dashing nude across the stage during the Academy Award presentation, was sentenced to four months in jail for appearing naked at a city council session.
Opel was riot arrested following the streaking of the Oscar ceremony last summer
However, he was taken into custody later when he appeared at a council session debating laws against beach nudity, He strolled in the buff up to the chief of police and asked “is this lewd? ’
lie was acquitted of indecent exposure but found guilty of disrupting a public meeting. He refused "on principle the judge's offer to cut his four month jail term to 2(1 days if he would see a psychiatrist.
ringing in my ears, I should now subside.
But I’m too serious a commentator on economists to default on even an attempt at explanations for this wretched era. So herewith — first with the "simple" answers and then with the truly fundamental causes of today's nightmares of slumpflation.
Crop disasters, bad weather, drouths the world over have clearly played an enormous part in sending food prices soaring in recent years. Nature itself has been against us in restricting the supply of vital foodstuffs.
Shortages of other crucial raw materials also have developed. The Arab oil boycott, the quadrupling of oil prices in one year, the resulting spiral in prices for all ' forms of energy are obvious forces.
The successive devaluations of the U. S. dollar to a point where our dollar sank in 1973 to among the world’s most undervalued currencies expanded our exports but they also sharply boosted the costs of our imports — and since the exports included huge amounts of agricultural products and the imports raised prices of many goods essential to us, the devaluations hardly helped the U.S. consumer.
At the same time, while crops and other raw materials have been restricted and prices of energy have been skyrocketing, there has been an explosion of demands for foodstuffs and all types of goods and services throughout the world.
As our economic expansions in the post-World war II period were fed by massive U. S. government spending and easy credit, so expansions elsewhere were fed by similar spending and credit policies.
By extraordinary coincidence, the upturns ran into each other and into the limits of world resources in 1973. It
was beyond the capacity of individual nations to produce enough to satisfy billions of new customers clamoring for the first time in history to move up the scale of living standards set by the U. S.
Beyond question, all these have been great factors. But most fundamental is the fact that we are finally reaping the economic whirlwind of decades of reckless spending straining even our magnificent resources and technology.
The excesses began with World war II and reached a first peril point in the creation of the Marshall nan — an unprecedented gesture of generosity and enlightened self-interest via which, in the 1950s, we poured tens of billions of dollars into the economic streams of our war devastated allies (and enemies),
That spending alone turned our war-swollen balance of payments surpluses into an annual chain of balance of payments deficits.
They reached a second peril point in the mid-1980s. when President Johnson would not admit that Vietnam was a war and thus refused to insist on raising revenues sufficient to finance it. Our balance of payments plunged into an ocean of red ink.
They reached a third peril point when President Nixon failed to stick to any antiinflation programs and instead went on a wild inflation spree in 1972 to assure his re-election.
And our excesses reached a fourth peril point when Watergate overwhelmed the White House and paralyzed I. S. economic policy for the prolonged and critical period of mid-1973-1974.
Of course there are many other explanations. To name just two more: Many prices have been increased in response to costly anti pollution steps; we are suffering too from price-fixing and price-raising rigidities built into our economic structure by now ob-
"How about TH AT? I’ve kniKked off ten pounds!"
When it’s time to remember,
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For Better Health
Retarded Children Need Physical Activities Also
so let e depression-or ion ted policies.
There can be no quick and easy answers — not with this background. Economies as complex as ours cannot be turned on a dime, and in defense of President Ford, he inherited a terrible economic legacy when he took over from Nixon in August.
To remind you; The inflation rate was at 12 percent, double the rate when Nixon Tame in, the prime rate that banks charge- to their top customers was also at 12 percent against 7 percent in 1989; the federal budget was at $3(15 billion, nearly two-thirds larger than spending in the year ending June 30, 1989. And we were already into a recession, the second that will be forever tagged to Nixon’s aborted tenure.
By Dr. S. L. Andelman
"I’m concerned about our neighbor girl,” a reader writes. “She is retarded and gets very little exercise Should I encourage her to lie more active?"
Our reader would be doing her young neighbor a real service by getting her involved in some physical activity. In fact, the American Academy of Pediatrics recently issued this statement: "Every retarded child needs a continuing program of physical maintenance with regular exercising and supervised athletic activities ’’
The academy points out that "there is a tendency for parents and children in most communities to exclude the mentally retarded child so he completely lacks the type of exercise and personal experience he needs.”
As a result, mentally retarded children are frequently unfit, have poor co-ordination and are obese. Their emotional and intellectual development also suffer as a result of inactivity, and all these problems are compounded as the child grows older.
Here are some guidelines to keep in mind when planning activities for a mentally retarded child:
— Games are more fun than simple exercise. Simplify the rules so the retarded child can understand them and involve other retarded children if possible — this may enhance a youngster’s self-esteem and develop a group identity.
— Individual sports are usually more successful than team sports.
— Stress activities that require gross rather than motor
skills. Change games so most of the children are interacting
most of the time.
— Stress competition It is often highly motivating and may be a means of promoting special satisfaction and developing muscles and co-ordination,
— Group the mentally retarded child with children of the same developmental level, not of the same chronological age.
* it it
Dr. Andelman welcomes letters outlining problems he may dlscnss in future columns. He regrets, however, he cannot personally answer mall. Write to him in care of The Gazette.
Richardson Hits Confidence Lack
INDIANAPOLIS (UPI) -Elliott Richardson, who resigned as attorney general last year rather than fire Special Watergate Prosecutor Archibald Cox, says a lack of public confidence in government is a "prescription for tragedy."
"Many of our problems, including the problems of the economy, arc problems of confidence,” he said. “Confidence ... is a fragile structure, easily damaged and not easily restored.
"The danger we face now is the danger that altogether too many people have come to the conclusion that all politicians are crooks and you can’t believe anyone who holds public office,” he told the economic club of Indianapolis "That, of course, is a prescription for tragedy.
ON THIS DATE in 1937, the Japanese captured and occupied the Chinese city of Shanghai.
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