Word: cea
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Dates: during 1970-1979
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Safety First. According to the CEA, the slowing will be to a 5.7% growth rate in 1977, and that will permit a small further reduction in unemployment, to 6.9% next year. Actually, TIME has learned, all of the officials on whom Ford leans most heavily for economic counsel-CEA Chairman Alan Greenspan, Treasury Secretary William Simon, Federal Reserve Chairman Arthur Burns-believe that the recovery will be more vigorous in both 1976 and 1977 than the report predicts. But to be safe, the CEA stuck with the numbers coming out of its computers...
Nonetheless, the policymakers all think it necessary to keep a tight rein on the recovery, primarily by holding down federal spending, as Ford recommended in last week's budget. Thus a cautious theme runs throughout the CEA report: high unemployment must be endured in the short run to achieve higher employment in the long run. As Ford writes in a message preceding the report: "Overly rapid growth could lead to a renewed increase in inflation that would ultimately be self-defeating...
Most important, they bring to the CEA expertise in areas of critical importance to the Administration. Malkiel will generally involve himself in such broad economic subjects as monetary policy and tax matters. A specialist in money markets, he favors a mix of Government programs that would spur business spending to boost production. MacAvoy concentrates more on particular markets, like transportation, than on the overall economy. Among other things, he has advocated deregulation of the price of natural gas, a field in which he is an acknowledged expert. If nothing else, the quality of the latest appointments should go far toward...
Unhappy Economists. The CEA's staff of 20 economists was no less unhappy. Many believed that Greenspan was not adequately presenting to the White House their views on the need for a much more expansive economic package, with bigger and more permanent tax cuts than the President advocated. Disagreements between the chairman and his economists erupted in a series of debates...
...manage to have the budget reflect their thinking. Their pressure led to the publication in the budget of the bleak five-year economic projections, which starkly underscore the need for yet more stimulus. Though the worst of the tempest is probably over, there is no doubt that the CEA can use whatever help new members can bring. Under the Employment Act of 1946, which created the Council, its chief function is to advise the President on how best to hold down unemployment...