friday, September 26, 1930
perspectives
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Photo by Mitch Hrdlicka
These UNL professors, like most economists, have widely divergent views on the measures needed to set our economy straight. They are, from left: Bert Evans, Jerry Petr,
Campbell McConnell and Wallace Peterson.
Professors call for fundamental economic change
By Alice Hrnicek
The Great American Dream of bathing
in a glorious living standard may quickly
become a post World War II fantasy,
according to several UNL economics in
structors. With the persistence of high double
digit inflation, unemployment and falling
productivity, at least two of the four in
structors interviewed call the centuries-old
unequal distribution of income a root of
the other economic ills.
None of them agreed with the president
ial candidates1 economic proposals,
especially tax cuts, which would create
only a short-term solution, they said.
Although the economists did not fully
agree on remedies for the nation's ailing
business activity, all but one said only
fundamental reforms of the system's
structure could bring about a stable future.
Jerry Petr, associate professor, predict
ed that unemployment would decrease
within a year, but that inflation will stay
above 10 percent because of built-in wage
increases.
PETR SAID that governmental econ
omic reform is the best way to equalize in
come distribution, but that other alterna
tives are more attractive to the public be
cause it is on a "privatist kick."
"If we do nothing about income distri
bution, ultimately change will be forced on
us," Petr said. The question is how intelli
gently we will change."
However, Prof. Campbell McConnell
blamed the Oil Producing Economic Com
munity (OPEC) and high government inter
est rates for lessening the nation's control
over its economic future.
"We're less and less able to control our
own economic fate," he said. "That's a lot
different than just 15 years ago."
McConnell countered that income distri
bution has not contributed to present-day
hardships since it has remained stable for
several decades.
The automobile industry's struggle to
create smaller, gas-efficient automobiles to
make up for a loss in demand for the larger
types, has been complicated by rising
OPEC prices and foreign competition,
McConnell said. There is pressure for the
industry to make this transformation
quickly.
McCONNELL SAID high interest rates
plagued the housing industry, which has
spurred inflation. The housing dilemma can
be improved only with a drop in interest
rates, he said.
Prof. Wallace Peterson pointed out that
the automobile and housing difficulties are
indications of deeper problems, related to
an inability of Americans to adapt to new
times.
"American industry has a hardening of
the arteries," Peterson said. "No one is
looking deeply at the structure. That might
mean looking at fundamental changes in
the relation of government and the
economy. We don't want to do that now."
Although he believes that the economy
will bounce back from the current reces
sion, he says it will not be a vigorous re
covery. "We're at the end of an era, of post-war
growth. Now we're in a time of scarcity
that is different from the past," he said.
Following Keynesian remedies is "pursuing
an illusion."
Continued on Page 5
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