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News Summaries - February 1974 [2 of 16]

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THE PRESIDENT HAS SEEN Up. NEWS SUMMARY February 2, 1974 (Fri. net, wires) The major stories of the day: - - All nets led w/economic developments including Admin report. CBS led saying report was "considerably less optomistic" than SOTU. Following concessions by advisers that controls have failed and admissions in report, all nets noted, ABC w/silent film RN endorsed report and sent it to Hill. All nets noted report predicted 5. 5% rise in unemployment rate and prices up 7%. CBS/NBC noted economic growth down to 1%. Rather said many economists consider this at "near recession" levels. Admitting economy was frustrating struggle, ABC noted RN said US can't accept continuation of '73 inflation rate, w/clip of RN saying in SOTU there won't be a recession, NBC's Levine said advisers acknowledge growth might decline for 6 months which by conventional definition is a recession. (Similar reflection on CBS.) But they reject the definition. Stein on film noted calling it a recession won't make it any worse, not calling it one won't make it any better. Whether calling it 1 or not, won't indicate what you ought to do about it. So, said Stein, let's not waste a lot of time on question. ABC noted Stein "who is emerging as RN's chief economic adviser" said cooling inflation will take priority over haulting the unemployment trend. On film Stein said "wemust not be too hasty in rushing in to pump up economy unless the need to do so is clear because we have ahead a long battle to against inflation. 11 Stein's strategy, said Jarriel, seems to be/stop inflation by accepting a mild recession during 1st half of year and then aborting trend by pumping economy w/heavy Govt spending and easy credit controls CLC removed controls from another 25% of retail sales, leaving retail-level controls only on food, motor vehicles, and petrol products. Dunlop said 10 of largest retail firms agreed to hold prices down thru Aug. 1 by keeping profit margins at or below If 73 levels. All nets noted NBC's lead. Unemployment took biggest jump upward in 4 years, rising from 4.8% to 5. 2% as e-crisis and fuel shortages took toll of jobs. All nets noted/ABC's lead.

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