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Western Carolinian Volume 46 Number 26, July 23, 1981
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Western Carolinian July 23,1981 Voice of the Students VOL. XLVI No.2tf Chemistry Department Goofs Refunds On The Way A "Noble Experiment" Reaganomics Last week, the Carolinian looked at how the nation's economy came to be in the state it's in. This report, the second part of our interview with Dr. Austin Spencer of the Economics and Finance Department, Examines the new noble experiment— "Reaganomics." "Making America viable, productive again" could well be the hopeful chant of a Reagan administration member. The fact of the matter is that it will take time for such a theme song to be fulfilled since it's taken us nearly a generation to attain our present status. At the forefront of that turnaround is "supply-side" economics. Reaganomics to the devout. The most basic tenet of supply-side economics is that high taxes equals low productivity. If a man has to work X number of hours for X number of dollars just to have the government take X number of dollars in tax (up to 40% according to one observer), he's not going to work as hard or as long as he would otherwise. The applied version of supply-side economics works virtually the same way. Give the guy a tax break, an incentive to work, and he'll do just that—work harder and longer. Unfortunately, the label "noble experiment" is the precise term for supply-side economics because, admits Dr. Spencer, "We've made these assumptions, but we just don't know if people will work harder or longer." That word "incentive" is the key in other facets of Reaganomics. A fear of government regulation is, according to Spencer, prevalent riot only from major businesses but from individuals as well. Hesitation was the result and businesses and people have missed a lot of investing and purchasing opportunities because of possible government intervention. With their fears of regulation calmed, the reasoning goes, people will become more flexible with their investments and inefficiencies curbed. Elsewhere more incentive in Reaganomics is found in the prevention of what is known as "bracket-creep." Not a tax cut per se but a watered down version in which greater leeway is given people in their incomes before moving into a higher tax bracket. Still there are other areas which need attention notes Dr. Spencer? One positive sign he sees is the recent expansion of research and development in American firms. "The tangible return on research and development isn't always apparent," Spencer said, "and as a result companies went lightly on it while times were good." Again, the auto industry is a prime example of sitting back on profits-from big cars-while the little Japanese models stole the show. The automotive industry is also a case in point for a lesson Spencer would have government and private enterprise learn: There's not an appropriate policy for all times. This would be an economics strain of the law of survival of the fittest-to survive one must be flexible, adaptable to a changing climate. Starting with the 1980-81 academic year students at WCU have been charged an unauthorized lab fee by the Chemistry Department. Previously, students in chemistry labs were individually billed for equipment they damaged but because of the rocketing glassware prices this procedure became too great a burden to the students responsible for the damage. Dr. Royce Woosley, head of the Chemistry Department, approved the recommendation to charge an across-the-board fee of three dollars per student. This was coined by Dr. Woosley as an "Insurance-type approach." However, Dr. Woosley failed to send the proposal to the proper university officials for approval. Said Dr. Woosley, "We had the idea that it (the lab fees) did not need new authorization." It was simply a mistake in procedure, and according to Dr. John McCrone, Dean of the School of Arts and Sciences, a new proposal is in the process of being drafted and is expected to go into effect soon. The faculty and administration seem to be in support of the "insurance approach" and wish to have something of this nature instituted by this fall. Dr. Woosley also said that this will give them a chance to look into the way other schools are handling similar lab fees and to possibly propose a better system. Vice Chancellor Glenn Stillion said that the correct procedure would have been for the department head to send his proposal to the Dean of Arts and Sciences for approval, then to the Vice Chancellor of academic affairs, which will send it to the Chancellor for approval, who must ultimately send it to the President of the University system in Chapel Hill. Once approved by the president, the proposal goes into effect. According to Dr. Woosley, between 800 and 900 students were enrolled in chemistry labs last year, but not everyone has paid the fees. All students having paid lab fees will be notified by the chemistry department of their eligibility to receive a full refund.
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The Western Carolinian is Western Carolina University's student-run newspaper. The paper was published as the Cullowhee Yodel from 1924 to 1931 before changing its name to The Western Carolinian in 1933.
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