THE PRESIDENT. 3 HEARINGS BEFORE THE JOINT ECONOMIC COMMITTEE CONGRESS OF THE UNITED STATES NINETY-FOURTH CONGRESS SECOND SESSION PART 2 FEBRUARY 6, 19, 20, AND 25, 1976 Printed for the use of the Joint Economic Committee U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1976 ༄་་་་ JOINT ECONOMIC COMMITTEE (Created pursuant to sec. 5(a) of Public Law 304, 79th Cong.) HUBERT H. HUMPHREY, Minnesota, Chairman Humphrey, Hon. Hubert H., chairman of the Joint Economic Committee: Page 279 Heller, Walter W., regents' professor of economics, University of Minnesota. Shiskin, Hon. Julius, Commissioner, Bureau of Labor Statistics, Department of Labor.. 280 306 THURSDAY, FEBRUARY 19, 1976 Humphrey, Hon. Hubert H., chairman of the Joint Economic Committee: 343 Burns, Hon. Arthur F., Chairman, Board of Governors, Federal Reserve 344 FRIDAY, February 20, 1976 Reuss, Hon. Henry S., member of the Joint Economic Committee, presiding: 383 Klein, Lawrence R., professor of economics, The Wharton School, the 384 de Vries, Rimmer, vice president, Morgan Guaranty Trust Co., New York, N. Y.-- 388 Galenson, Walter, professor of economics, Cornell University. 416 WEDNESDAY, February 25, 1976 Humphrey, Hon. Hubert H., chairman of the Joint Economic Committee: 441 Carey, Hon. Hugh L., Governor, State of New York.. 444 Landrieu, Hon. Moon, mayor, New Orleans, La., and president, U.S. 472 Gibson, Hon. Kenneth, mayor, Newark, N.J., and vice president, U.S. 480 Young, Hon. Coleman, mayor, Detroit, Mich., and chairman, Urban Press release No. 76-83 entitled "The Employment Situation: January 1976," Bureau of Labor Statistics, Department of Labor, February 6, 1976_. 308 Statistical notes on the unemployment rate by revised seasonal adjustment methods____ 327 (III) Burns, Hon. Arthur F.: THURSDAY, FEBRUARY 19, 1976 Letter of response to Representative Heckler's query regarding the Tentative outline of an omnibus anti-inflation bill by Hendrik S. Page 354 355 376 377 379 Response to additional written questions posed by Senator Taft.. FRIDAY, FEBRUARY 20, 1976 de Vries, Rimmer: Prepared statement.. 392 World Financial Markets, monthly publication of the Morgan Guaranty Trust Co. of New York, issue of January 21, 1976--- 397 Galenson, Walter: Prepared statement__ 418 WEDNESDAY, FEBRUARY 25, 1976 AFL-CIO, Public Employee Department: Landrieu, Hon. Moon: Young, Hon. Coleman: State of the city message, city of Detroit, January 22, 1976. Statement on the impact of recession upon public employes and the 504 Statement on behalf of the U.S. Conference of Mayors... 475 484 THE 1976 ECONOMIC REPORT OF THE PRESIDENT FRIDAY, FEBRUARY 6, 1976 CONGRESS OF THE UNITED STATES, The committee met, pursuant to recess, at 10:10 a.m., in room 1202, Dirksen Senate Office Building, Hon. Hubert H. Humphrey (chairman of the committee) presiding. Present: Senators Humphrey and Proxmire; and Representatives Hamilton and Long. Also present: John R. Stark, executive director; William R. Buechner, William A. Cox, Lucy A. Falcone, Robert D. Hamrin, L. Douglas Lee, Loughlin F. McHugh, and Courtenay M. Slater, professional staff members; Michael J. Runde administrative assistant; George D. Krumbhaar, Jr., minority counsel; and M. Catherine Miller, minority economist. OPENING STATEMENT OF CHAIRMAN HUMPHREY Chairman HUMPHREY. Today the Joint Economic Committee will hear from Mr. Walter Heller, the former Chairman of the Council of Economic Advisers to the President. We will also hear from Mr. Shiskin, Commissioner, Bureau of Labor Statistics. I would like to say that in having Mr. Walter Heller of the University of Minnesota before us today, we have an old friend and one of the most prominent economists in our country. Yesterday we heard from four other distinguished economists on the economic outlook, and I must say their outlook was more pessimistic than that of the administration witnesses who preceded them. They were followed yesterday afternoon by two other Cabinet members who again repeated the administration's position. The administration's position is basically to let the economy proceed as it is going. As we heard repeatedly, the administration's principal enemy is inflation, and unemployment, while too high at present and for the years immediately ahead, must remain "second fiddle" because faster recovery would lead to another "bust." I made it clear that I do not believe this is a responsible approach, nor is it adequate. We must get the unemployment down faster than the administration's program predicts or indicates. The unemployment rate, as indicated by the administration, will likely be in the range of 7 or 8 percent in the years ahead. I would hope today that we will be able to get further information on the outlook for the economy in 1976. Mr. Heller, although it is very difficult to predict anything about the economy, and it surely is more |