High of 52 today with a 60
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For complete coverage of
Wall Street and the business
community see "Finance,"
Serving the students and the University community since 1893
Copyright The Daily Tar Heel 1983
Volume 91, Issua jfotj
Thursday, March 17, 1983
Chapel Hill, North Carolina
says U S. can
By JOHN HACKNEY
Economist Alfred Kahn told an audience of about 350 business
executives Tuesday that it was time to dispel the euphemisms and
realize that we have had a depression in this country for more
than two years.
Kahn, who was the Carter administration's chief inflation
fighter and a key figure in the deregulation of the airline industry,
is a strong advocate of a free-market economy.
In his lecture on "The Economic Outlook: Implications for
Business," Kahn said that since the fall of 1982 many facts have
indicated that our economy is on the road to recovery.
"I think that there is a growing public reception that inflation
and stagflation are something that we are doing to ourselves and
are self-defeating," Kahn said.
However, Kahn emphasized that his optimism was temperate
because the same signs were evident in 1974-76 when the economy
failed to stabilize.
Kahn said we began moving out of the depression compart
ment of stagflation in 1982 when interest rates declined. He said
the main reasons for this were that it became clear the economy
was so bad that there would be no private loans. Later, the boom
of the stock market occurred almost immediately after the
passage of a tax increase and the Federal Reserve Board began
loosening its control of the money supply.
"We are clearly in a recession that seems to be the consequence
and the price that we have to pay for having been through a
period of double-digit inflation," Kahn said. He identified the
awareness of the interest-sensitive sectors and sL heavy concentra
tion of money in those industries that epitomized our long-term
stagflation problem as reasons for the economic industrial decline
of the economy.
"None of us can be confident that we have really succeeded in
solving the inflation problem," Kahn said, "The long-term prob
lems are still there and unresolved."
He cited the regulation of heavy industries, such as the
automobile industry, and the uncontrollability of the federal
budget as two of the big problems.
"The federal budget is wildly out of control," Kahn said, add
ing that there was bipartisan agreement on this issue. But he of
fered no suggestions on how to actually control the budget.
. Kahn explained that during a recession, the cyclical part of the
deficit goes down with recovery while the structural part of the
deficit will rise as a function of gross national product. He said
this is due to increases in military expenditures and tax cuts.
Kahn said that even with the recovery of the economy "we'll be
running deficits of 5.5 percent of the GNP." Headded that while
we were having double-digit inflation from 1978-S0," Japan was
running deficits of only 4.5 percent of its GNP.
See KAHN on page 2
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DTHOiarles W. Ledford
Spring Break is over and tfie library calls. Marion Johnson, a freshmarf from
Raleigh, put in overtime at Wilson Library preparing for one of the rites of
spring midterms. .
lor vote We
By MARK STINNEFORD
The Elections Board has set Wednes
day, March 23, as the date for a student
body referendum on a proposal to raise
the Student Activity Fee by $1.25 per stu
dent per semester.
The Student Activity Fee is. currently
$15.25 per semester for undergraduates
and $13.25 per semester for graduate stu
dents. The student body voted on a fee in
crease referendum Feb. 8, but the vote was
thrown out by the Student Supreme Court,
because the Campus Governing Council
did not allow enough time between ap
proving the referendum and presenting it
to the students.
According to the Student Constitution,
no referendum can be held less than a
week after approval by the CGC. The
original fee referendum bill was passed by
the CGC on Feb. 2, only six days before it
was voted on by students.
On March 2 the CGC voted unanimous
ly to approve a new referendum on the fee
Before an activity fee increase can be
enacted, it must receive a two-thirds ma
jority vote in such a referendum. And 20
percent of the student body about 4, 192
students must cast votes in the referen
dum, according to the Student Govern
About 4,900 students voted in the Feb.
15 election for Student Body President.
As in the recent campus wide elections,
19 polling places will be set up on the day
of the referendum and will be open from 9
a.m. to 5 p.m., Elections Board Chairman
Stan Evans said Wednesday. Students will
be able to vote at the polling place of their
choice, he said.
However, it may be difficult to get the
required number-of-students to rurrtout:
for the referendum, Evans said.
"I find it pretty unlikely that an election
in an off time in the semester will draw
that many voters. X
"If 20 percent of the students don't
show up, not going out to vote will be a
vote against a fee increase," Evans said.
About $463,000 is expected to be raised
through the Student Activity Fee during
the current fiscal year, said CGC Finance
Committee Chairperson Doc Droze. The
CGC has allocated about $215,000 of
those fees to 32 University-recognized
Additionally, the CGC took $21,000
from the General Reserve fund at the be
ginning of the fiscal year to allocate to stu
dent organizations, Droze said.
Under the Student Constitution, The
Daily Tar Heel receives 16 percent of Stu
dent Activity Fees more than $70,000
this fiscal year and the Carolina Union
receives 33 percent more than $150,000
The CGC is "currently involved in the
process of preparing a budget for the
1983-84 fiscal year which begins in May.
Student organizations have submitted
budget requests totaling about $350,000.
The CGC should have about $250,000 to
allocate, including money from activity
fees and the General Reserve, Droze said.
T A CGC committee is currently involved
in a qualitative review of programs pro
posed by student organizations. On March
23, the day of the referendum, the CGC
Finance Committee will begin proposing
funding levels for the groups based on the
results of the qualitative review.
Droze said the Finance Committee will
propose funding levels as if the Student
Activity Fee will remain unchanged in the
coming year. If the increase is passed, ad
justments in the funding of student organi
zations can be made when the full CGC
considers the budget, Droze said.
The Student Activity Fee was raised by
-$2.50'per student per semester in fall 1978.
At the same time, a new Intramural-Recreation
Fee of $3.75 per semester was ad
ded to the fee. Both moves were approved
in student referendums.
DA . to announce
By LUCY HOOD
Special To The DTH '
The district attorney for Orange and
Chatham counties unofficially announc
ed that he would be a candidate for at-
torney general in the 1984 elections.
Wade Barber has been district attorney
since 1977, when Gov. Jim Hunt created
the Orange-Chatham county judicial dis
trict. "I think the office of attorney general
presents a challenging opportunity to
serve as a professional and a concerned
citizen to make not only the criminal
justice system, but government in
general, be more responsive to the con
cerns and needs of all citizens of the
state," Barber said.
Dan Pollitt, a professor in the UNC
School of Law, praised Barber's perfor
mance as district attorney.
"He's (Barber) flexible and innovative
and willing to test new techniques to meet
problems," Pollitt said.
As district attorney, Barber, is known
for initiating increased citizen participa
tion in the judicial system.
"I think we've reached the people," he
Barber has organized volunteers to par
ticipate in dispute settlements, to form
the Youth Community Restitution pro
gram and to meet the needs of rape and
child abuse victims.
The dominant theme of Barber's cam
paign for attorney general is an extension
of his policy as district attorney to have
citizens participate in the judicial process.
"I see the attorney general's office as
an opportunity to represent the people of
the state as a lawyer in many ways
most importantly, in the area of criminal
justice, to provide leadership to the
criminal justice office and agencies in the
state to better serve the people," he said.
Barber graduated from the UNC
School of Law in 1970. The following
year he worked in Charlotte as a legal
aide. He then returned to his hometown,
Pittsboro, to practice law with his father
and his brother.
Barber's judicial experience also in
cludes the chairmanship of the Criminal
Justice Standards Committee, member
ship on Hunt's DUI Task Force and the
9 photographer in town
of pictorial candidates
presidency of the N.C. District Attorney's
In reference to his credentials, Barber
said, "I have been personally and pro
fessionally challenged to seek to make
criminal justice work better and be more
responsive to the citizens of North
Pollitt also spoke highly of another
possible candidate for attorney general,
Rep. Parks Helms, D-Mecklenburg.
"He (Helms) introduced all of the anti
death penalty bills," Pollitt said. He did
See DA on page 2
Commission predicts N
By JAMES STEPHENS
By the year 2000 North Carolina's
changing economy may require the re
training of nearly 40 percent of the state's
current work force, according to a report
presented to Gov. Jim Hunt Tuesday.
The report, "Goals and Recommenda
tions for the Year 2000," said that North
Carolina's economic base will move away
from manufacturing to services, informa
tion and communications. This change
will lead to the retraining of workers, the
The Commission on the Future of
North Carolina, chaired by UNC Presi
dent William C. Friday, set out goals in
the report for the enrichment and de
velopment of North Carolina's social ser
vices, economic capability, natural re-,
sources and community life. In addition,
it also forecast changes which the state
will see by the year 2000 17 years away.
Hunt launched the commission in 1981
to identify areas which will require long
range planning to meet the state's chang
ing needs. The 68-member committee in
cludes leaders in . business, government,
education, medicine, law and other
fields, as well as members of the legis
lature and the State Goals and Policy
Board. The committee worked with plan
ning groups from each county and em
ployed statewide surveys in determining
the state's goals.
The goals of the state, according to the
Furnishing an opportunity to each
citizen to be usefully employed in a re
Fostering a strong program to iden
tify and regulate hazardous substances in
industry and to control toxic wastes,
Revising aid programs to provide
more adequately for the essential needs of
Providing job skills to those entering
the work force and those who must
"This is not a
document," said Hunt.
It is the product
of our idealism, but it addresses real
trends, real problems and real options for
the kind of future we can have in North
Nathan Garrett, a committee member
from Durham, said that the committee
"recommended actions that could be
motivated by citizens and industry, which
would not require state expenditures."
Among the report's projections for
North Carolina by the year 2000 are:
An increase in state population from
the 1970 level of 5.9 million to between
6.8 million and 7.7 million
A decline in households headed by
both husband and wife from the current
63 percent to an estimated 48 percent
The agriculture and textile industries
will suffer a long-term decline, and tra
ditional manufacturing jobs will be de
creased due to automation.
By MIKE TRUELL
Assistant Features Editor
Terry sat on the arm "of a couch at the Holiday Inn. The
photographer asked her if she was nervous.
"No," she said.
"OK, take everything off.'V
Playboy photographer David Chan was only joking when he
said this to the UNC student, but this may become a reality for
some Carolina women as well as others in the Atlantic Coast
Chan, a 16-year veteran of Playboy, visited Chapel Hill Mon
day and Tuesday in a search for students to appear in the "Girls
of the ACC" issue that will be published later this year. The
photographer said he hoped to talk to about 100 UNC women
during his stay. After his visit in Chapel Hill, Chan said he
would go to N.C. State University March 15-17, and to Duke
University March 17-19.
While in Chapel Hill, Chan took a Polaroid shot of each of
the women who sent in applications and of those who called and
requested to see him. Afterward, Chan will sen3 the pictures to
Chicago where the number of women from each university will
be narrowed to 12. From this, he will come back to the school
and "choose six of the women to photograph two ru:ds, two
semi-nude, and two clothed (bathing suit). Then, pos-rj'y four
from each college will appear in the magazine.
How will the women react to being photographed 'in the
nude? "The first day or the first couple of hours, they (-.::,! ::;)
are always nervous but that is nothing," Chan said."V. X:i
we photographed Playmates in New York, the first day they,
have everything on when they walk from one part to aroh:f
part of the studio. The second day they walk right throlrh vXli
nothing on." ' ' "
When photographing a woman nude or semi:nv " Chan ex
plained that the woman and the photographer crs the cr.'y cr.es
in the room. ',
Most of the UNC women who talked to Chan f! it: rv: -hi
only appear in Playboy clothed and would be very c . X : : : t : : -. d
"to bare all. x V xxx " -
As a matter of fact, many of them were nervous and . ; :
didn't tell any of their friends about coming to see the : xo-'
grapher. They said they would be embarrassed if their friends
knew. For this reason, a lot of the girls would not r; J;Tth at
full names to reporters. -V IX" , ;
The locales of the actual shooting for the "Girls of the ACC'
will be at the schools, but Chan said he was not sure of the exact
sites. Chan said one possibility would be to have an N.C. State
woman cut down a basketball net since the Wolfpack won the
As of now, he hasn't talked to the schools about the use of
their facilities (basketball courts, fields, etc.); he said that's still
in the future.
Some colleges, Chan said, have especially pushed to have
their facilities and athletes featured in the magazine.
"I remember Baylor University. They did not want any girls
to be featured in Playboy. And yet, the coaches were on their
knees to get two of the football players to appear in Playboy,"
Chan said. "They know that if they (the football players) ap
pear, it means a big future for those guys in their football
'They can speak out against the publication,
which is fine, but as far as us mean it's our
business what we do ... we're adults, we
know what we're doing.'
Beth, UNC chemistry major
Although Chan doesn't know exactly how the ACC schools
will react, the idea of Playboy on campus has sparked some con
troversy. Since the Playboy advertisement first appeard Feb. 8
in The Daily Tar Heel, some students have said the magazine is
exploiting women. The UNC women who arrived to see Chan
said they didn't think they were being exploited.
"I don't think the controversy is what it should be," one
sophomore journalism major said. "I don't think doing this is
all that bad as some girls are making it out to be."
Beth, a chemistry major, said she didn't think that all of the
Association for; Women Students' arguments against what
Playboy was doing were valid.
"Somebody ought to speak out about women being beaten
and stuff .1 don't feel this appb'es. I think they're (AWS) mak
ing too b:s cf an issue.
"They czn speak out against the publication, which is fine,
but us fcr zz x. I mean it's our business what we do ... we're
adtXs, v.e know what we're doing," she added.
ArctI.er Playboy hopeful, Kathy, echoed her beliefs. "I
h shcu'i teXowed to do what I want to do, and this is a wav of
not being exploited," Denise Lone said. "I'm not beinc
uken advantage of. I mean if they maybe drugged me, or brain
washed me, or kidnapped me and carried me off to Puerto Rico
r.r:J soli me as white slavery, that would be exploitation.' But
thhi I don't feel it is."
E 7! citation was not really the big issue on these women's
rrhr.X. fcr a lot of them, their parents' reactions are forces to
be (X-It with, because most haven't told their parents about
s: hr ctxnpt to be in Playboy. '
1 1 : : er Chan said most parents are usually open-minded. He
t.Xld that he had encountered some negative reactions, such as
the one from an Ivy League woman's parents who said they
W ouldn't pay her tuition if she posed. She posed anyway, Chan
explained, and the parents still paid her tuition.
"The boyfriends are the biggest obstacles because they feel if
she (the woman) appears in Playboy, they're going to lose her
(to another man)," Chan said. Therefore the boyfriends become
insecure, he added.
This was not the case for Denise Long. It was her boyfriend
who saw the Playboy ad and suggested Denise apply. He wants
to see his girlfriend chosen.
UNC students Beth, Kathy and Terry also hope to be selected
as three of the "Girls of the ACC." They said that the hardest
part was getting up the nerve to apply. Now they just have to sit
back and wait.
What did Playboy photographer Chan have to say about the
Carolina women he saw?
"They looked peachy," he said. "A lot of them came back
with a bit of tan (after Spring Break), and it sure makes them