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Hill
The Pendulum
Thursday, November 14, 1985
Volume XII, No. 11
Proxmire blasts deficit,
calls for cuts in spending
1) Frank Isley
lews Editor
"The federal deficit is a burden we all bear,” said
emocratic Sen. William Proxmire of Wisconson,
It it is will be especially heavy for the young. “It
ill be a burden on you for most of your lives,”
ie said.
!Speaking before a packed house in Whitley
iditorium last Sunday night, Proxmire blasted the
lolossal” deficit which has risen from $66 billion
efore 1982 to about $200 billion this year,
ri Calling it the number one domestic problem to-
ky, Proxmire said in the short term the deficit “ap-
^rs to work political magic,” stimulating the
(tonomy, providing jobs and cutting federal taxes,
lut in the long term, he added, the deficits will be
jsastrous.
i "It creates a tremendous national debt,” Prox-
flire explained, ‘ ‘and once you get too deep in debt,
iou are swallowed up by the interest rates.”
Proxmire said already high interest rates on credit
,>e adversely affecting the housing and automotive
idustries, and he predicted that interest rates will
;|[ely rise rapidly if the federal government does
O' take some corrective action now.
According to Proxmire, another major problem
s in foreign trade.
“High interest rates and federal borrowing attract
breign currency,” he said. The value of foreign
.»rrency then declines, he continued, “and ours
|KX)ts up.”
He said, “This causes the price of goods to be
ncreased when we sell them abroad, but when we
wy from abroad the price of foreign goods are
Kreased and this hurts our industries.” North
jfarolina’s textile industry is one of those hurt most,
Ie added.
,, However, Proxmire said the greatest threat to the
American economy will be serious inflation,
^higher than we’ve ever seen before.”
"There is a certainty of inflation in the future if
continue to print money the way we are now,”
K said.
, The only way to avert these dangers, Proxmire
ikarned, is to follow a policy to “cut spending and
!ut spending everywhere.”
Several times throughout his address, Proxmire
referred to Congress’ “power of the purse.” He
Bid he believes it is the responsibility of Congress
to take action to limit spending but that so far it has
shirked that responsibility.
Proxmire and other senators have recently in
troduced several appropriations amendments to do
just that, including cutting off funds for Amtrak and
revenue sharing and cutting health and human
sevices and urban development grants.
However, he noted, the amendments have been
defeated one after the other in the Senate.
Proxmire also called for cuts in military spending,
saying that even with such cuts the United States
could still have sufficient security.
One way to do this would be to end “cost plus
procurement,” Proxmire said, citing as examples
$650 spent for an ashtray for fighter planes and $800
for doormats.
However, he said the real waste derives from the
lack of effective competition for defense contracts.
To offset the high prices, Proxmire suggested us
ing military engineers to “determine meticulously
for cost to create a basis for comparison.” In this
way the actual cost of building weaponry could be
determined.
“During World War II, fighter planes cost about
$200,000,” he said. “Now fighter planes cost up
to $30 million.”
Proxmire also said air craft carriers are “ob
solete” and struck out at the “land-based, immobile
MX missile,” calling them and air craft carriers
“sitting ducks.”
The U.S. could save billions by not building the
B-1 bomber, Proxmire also said. The Pentagon
should instead wait until the Stealth bomber, which
cannot be detected by radar, is developed, he
argued.
Proxmire said he does not view President
Reagan’s "Star Wars” satellite-based defense
system proposal as a wise move because the cost
is “staggering” and independent scientists believe
it would be impossible to knock out all incoming
missiles in an attack.
Proxmire also said he believes Star Wars would
only escalate the arms race.
“We already know how to get through it. We
have cruise missiles that can travel just a few feet
off the ground,” he said. “As the defense develops,
the offense will develop too.”
Instead, Proxmire said we need “tough, realistic
arms control. ^ Proxmire, page 7
Photo by Joe Coco
History in the making
President Fred Young and Dr. Earl Daniely, professor of chemistry
and former president of Elon, took part in the ground breaking
ceremonies for the new Fine Arts Center last Thursday morning
during the College Coffee. After opening remarks by Young,
several distinguished administrators and friend of the college
broke the ground near the old track. The crowd was then invited
to join in the ground breaking ritual.
Olsen is new mayor
On the stump
Bush campaigns
for Rep. Coble
p.4
Robert Olsen, a member of the
Elon College Board of Aldermen
for the past 12 years, was elected
mayor of the Town of Elon Col
lege on Nov. 5.
Olsen will serve as mayor for
the next four years, replacing cur
rent Mayor Tim Parker, who has
been mayor for the past six years,
but decided not to seek
re-election.
Nell Snyder, who has already
served two terms on the Board of
Aldermen, was re-elected to a
third term and Don Witt, who has
served on the Town Planning
Board, was elected to his first
term, filling the seat vacated by
Olsen.
According to Town Manager
Beth Hetzel, the new mayor and
board members will be sworn in
on Dec. 10 and will take office at
that time.
Basketball previews
Men’s, women’s
teams openers set
p.8