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...invoked additional emergency measures to deal with what Prime Minister Edward Heath called the "gravest crisis since World War II." Burdened by fuel shortages, widespread labor strife and an unprecedented trade deficit expected to reach $3.5 billion this year, Chancellor of the Exchequer Anthony Barber announced a $3 billion slash in government spending. It was the largest budget slash in British history and signaled the end of Heath's go-go plan for economic prosperity...

Author: /time Magazine | Title: BRITAIN: Muddling Through | 12/31/1973 | See Source »

...pany, though, the spending plan for fiscal 1975 that President Nixon will un veil next month will stand out as an exceptionally shaky exercise in pondering the imponderable. The big unknown, of course, is the effect of the energy crisis, which could plunge the U.S. into a recession, slash Government tax revenues, and force big additional outlays for new job programs to ease the impact of unemployment. Whether or not Nixon formally proclaims the figure, the budget could well run a deficit of $15 billion, nearly double the red-ink figure that now looks likely for the current fiscal year...

Author: /time Magazine | Title: MONEY: Shaky Budget Preview | 12/31/1973 | See Source »

...industrialized world, the slash in oil production by the Arab states has been a handful of sand in the economic gearbox. But for oil-exporting nations outside the Arab bloc, the move was pure serendipity. Almost overnight, as global shortages reached crisis proportions, the value of their oil deposits began to zoom. Yet the oil producers have resisted the temptation to try to pump fast enough to make up for the Arab cutback. Instead, they have cannily held output to roughly ordinary levels while sharply scaling up prices. That strategy is resulting in a kind of forced, massive transfer...

Author: /time Magazine | Title: SUPPLY: Some Non-Arab Serendipity | 12/24/1973 | See Source »

...averaged around 27? per gal. Now it costs 45? to 51? and has gone as high as 80? at the pumps of at least one Ohio truck stop. Typically, a trucker grosses $300 hauling a load between Pittsburgh and Chicago and keeps $55 as profit. Rocketing fuel prices now slash that profit by $23. The truckers want the government to set a diesel-fuel ceiling of 35.9? per gal. Transportation Secretary Claude Brinegar and the Cost of Living Council have agreed to look into charges of price gouging by truck stops. ? Fuel scarcity: When truckers say "Fill...

Author: /time Magazine | Title: Energy: The New Highway Guerrillas | 12/17/1973 | See Source »

...longer run, there is much more that the U.S. can do. One area ripe for improvement is the generation of electricity at the power plant; all but 38% of the fuel used goes up in smoke or heat. Industry, which uses 40% of the nation's energy, could slash its requirements by a quarter if it followed a common European practice: install devices to capture heat escaping from stacks and other outlets...

Author: /time Magazine | Title: The Mideast War: Now, a Change in Wasteful Habits | 10/29/1973 | See Source »

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