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M.I.T. Economist Lester C. Thurow believes that this high inflation forecast may be too low. Said Thurow: "The risks are all on the down side. The economy could all too easily get some big new oil shock, for example. Or grain harvests might be disappointing and force up food prices. On the other hand, it is very hard to think about what piece of good news, might come along to make everything look better...

Author: /time Magazine | Title: Business: Outlook '81: Recession | 12/29/1980 | See Source »

...economic success of the Reagan Administration will depend on the continued support of the American public for an austerity program. Lester C. Thurow questioned whether voters would stick with such policies unless they quickly saw tangible results in the form of rising standards of living. He believes that the U.S.'s recent shift to economic conservatism may quickly evaporate. Said he: "The question is how long will the conservative era have to prove itself before the public kicks it out and tries something else. If the conservative policies cannot work relatively quickly, people will cease being conservatives...

Author: /time Magazine | Title: Business: Outlook '81: Recession | 12/29/1980 | See Source »

...organization of Texas businessmen a few weeks ago invited Thurow to speak to them, but first asked whether he was a liberal or a conservative. The answer: A little of both. An adviser to Democratic Senator George McGovern during the 1972 presidential campaign, Thurow believes in such traditional liberal remedies as stiff inheritance taxes and large public works programs. At the same time, he favors less government regulation. Said Thurow last week: "It's not a simple world. The economy needs less government in some areas and more in others...

Author: /time Magazine | Title: Business: No Progress Without Pain | 9/22/1980 | See Source »

...Thurow's analysis, the Government is largely responsible for the economic malaise because it cannot or will not resist growing demands by Americans for a risk-free society. Workers want guaranteed jobs with high salaries, and bosses want certain profits. Argues Thurow: "We have tried to combine economic progress with economic security. Everyone wants both, but everyone cannot have both." The result has been an undynamic economy with sluggish growth and chronically high inflation...

Author: /time Magazine | Title: Business: No Progress Without Pain | 9/22/1980 | See Source »

...Thurow deplores the Federal Government's efforts to bail out ailing firms like Chrysler. Rather than prop up inefficient companies, Thurow believes, Government funds should flow into fields where the U.S. has a competitive advantage over such countries as Japan and West Germany. Examples: computer chips and agriculture. At the same time, Congress should give generous assistance in retraining and relocating displaced workers in older industries like steel. Says he: "We must strengthen the economic safety net for individuals, but pull it out from under companies...

Author: /time Magazine | Title: Business: No Progress Without Pain | 9/22/1980 | See Source »

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