Economists Welcome Nixon Phase 2 Plan
Top economists from both parties in New York praised Phase 2 for the economy outlined by President Nixon. They said the plan shows potential but voiced caution about implementation and timing.
08 Oct 1971
Page 1
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Newspaper
Danville Register
Location
Danville, Virginia, United States of America
Date
Oct 08, 1971
Page
1
Top economists from both parties in New York praised Phase 2 for the economy outlined by President Nixon. They said the plan shows potential but voiced caution about implementation and timing.
The article discusses whether postfreeze pay boosts can take full effect, noting freezes blocked increases and the AFL-CIO urging strikes if disallowed. White House officials say the Pay Board must resolve the issue, and cost-of-living oversight will monitor progress and potentially tighten standards. Milton Friedman and John Kenneth Galbraith weigh in, while Nixon aides anticipate continued restraints via separate wage and price boards.
Walter Heller, adviser to two Democratic presidents, said he supports the President’s plan but warns Phase 2 requires a firm stand against violators. He urged the President not to abandon enforcement. fellow economist Galbraith called the plan not bad overall but criticized Nixon’s profits stance. Nixon argued higher profits help the economy but urged businesses to pass windfalls to consumers by cutting prices.
Fire officials said arson was strongly suspected after a blaze began away from a road, with the U.S. Forest Service placing West takeoff crews on alert as severe Santa Ana winds loom. Officials reported multiple grass and brush fires across Southern California amid a heat wave and dry desert winds, with no clear count of homes damaged or evacuees returning home yet.
U S forces report 900 tons of bombs dropped on Cambodia, South Vietnam, and Laos in four Stratofortress raids. Ground fighting limited to patrol skirmishes and shelling as North Vietnamese pull back after frontier clashes. Typhoon Elaine rages near Da Nang reducing air operations while U S ships maneuver offshore and Midway resumes bomber missions along the Ho Chi Minh trail.
Washington AP Senate votes 51 32 to delay federal pay raises six months as part of Nixon anti inflation drive. President expresses gratification saying officials will understand the necessity for this step in pursuing new prosperity. House had approved tax cuts earlier, signaling twin congressional wins ahead of Nixon broadcast.
Washington AP report shows Democratic senators urging President Nixon to expand individual tax relief as Treasury Secretary Connally faced a barrage of demands on the proposed tax cut bill. The session highlighted partisan pressure over tax policy and the plan's reach for households.
Senators challenge a Nixon tax plan claiming it favors corporations while individuals gain through cuts. Connally, Harris, Hartke, and Ribicoff urge changes including higher social benefits, and restoration of full export tax breaks. The discussion weighs population factors, constitutional limits, and potential shifts in tax relief timing.
Tiny Ty White of Westminster California died at under five months after a lengthy hospital stay marked by pneumonia and congestive heart failure. He had survived multiple ailments since birth, overcoming colitis and a blood clotting struggle, with doctors noting his will to live.
Dr Theodore G Klimpp warns that without reform medical education will hit repeated crises as demand rises. Millis calls for $250 million annual federal funding, expanding class size over creating new schools, and a five year push to raise medical school admissions to 13 500 by 1975, a 50 percent increase from 1961.
The report outlines bribery penalties from $1,000 to $10,000 fines and 1 to 3 years imprisonment with disqualification, up to $20,000 or triple value fines and up to 18 years in some cases. Conspiracy as felony carries $10,000 fine or 5 years plus possible imprisonment. Indicted inspectors' salaries range from $8,582 up to $19,549 annually.
Nixon asserts a strengthened wage price control regime with up to 5000 dollar fines per infraction and federal injunction power for noncompliant hikes. He praises the Aug 15 freeze, calls for broad cooperation, and details new boards, reporting centers, and committees to enforce standards and monitor profits, wages, costs, and dividends.
Missouri Governor Warren Hearnes and Senators Stuart Symington and Thomas Eagleton endorsed Edmund Muskie, saying he can unite the Democratic Party and defeat Nixon. The trio cited Muskie’s experience and broad appeal, urging others to back the candidacy as more endorsements were hoped for ahead of the 1972 nominating fight.
Senator Mike Gravel praised a joint Alaska NASA and Education Department effort that used the ATS-1 satellite to relay emergency medical broadcasts. A Chalkyitsik nurse received instructions saving a hemorrhaging pregnant woman, while another Eskimo woman with appendicitis was guided to care, enabling plane evacuations to Tanana and Fort Yukon.
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