The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1953-12-29
US. Chamber Plan For Aiding
Oldsters Comes Under Attack
Br sTERLNc :. eREEN

states Chamber o. commerce To-
day found lis proposal 10 qualify
five million more older citizens for
social security pensions attacked
in an economist debate as .
''baby Townsend Plan"
The proposal. part Of the Cham
ber's plan 10 put social security
on a pay-as-you-go basis and halt
federal aid for direct relief Of the
aged, vas argued before two n
the 10 eeonomie societies in ses-
aion here.
All the speskers-ineluding w.
Campbell, research economist Of
the Chambeg--agreed that the SO
cial security tax should be allowed
70 rise 10 2 per cent Is scheduled
on Saturday.
President Eisenhower last year
asked congress 10 freeze the con.
tribution at Ia per cent each %
workers and employers. Congress
did NOT act. Some have specuiated
he might again ask for . freeze,
retroactive to New Years Day,
after Congress ree0nyenes. The
boost would nnilify the benefits Of
the income tax cut, also due Jan
!, for many low income families.
Evidence that professional econ.
omistS believe the country is in for
q mild recession throughout 1854
was the highiight Of yesterday
sessions Of the American Statistical
Assn.
Al one meeting Of some 200 81
the economists. the delegates in
dicaied by q show Of hands thai
they expect a 1854 production de
cline Of 5 per cent or more from
1855 record.
This drop still would leave 1866
the nations second and most pros
porous year. but IL contrasted with
the expressed view Of Eisenhower
administration statements that thu
autumn dip in business activity |
q ''readjustment" Of probably only
a few months duration. None o.
the economists, however, forecasi
the decline would progress into I
serious depression.
Sen. KnOwland (R-Calif). thu
Senate COP leader, took issue with
the view that recession is II
progress and with Sen. Douglas
(D-Ill), who contends the govern
meut should be moving in with
plans for further tax cuts and pub
lie works.
There are no indications Of
substantial recession OF depres
sion," KnOwland told reporters to
day. There have been some I'D
justment from the wartime highs
but no one expected an econom,
based on wartime peaks"
A Ford Motor Co. official said II
remarks prepared for the econo
mists' meeting that prospects 70
the automobile industry are good.
r. J. Eggert, program planninl
manager, noted that consumer
hold 90 per cert mere liquid as
sets than before thGsvar, and tina
consumers spendable income
expected to continlR in the mex
three months Eat its present rec
ord high level"
''The movement Of population i
toward the suburbs, thus creating
an increased need for cars" h
added. Zone eighth Of car-owninl
families now have two cars.
The economists attention swunI
10 social security at a joint session
last night Of the American Eco
uomic Assn. and the Industrial Re
lations Research Assn.
Rep. Kean tR-NJl, sponsor Of ad
ministration-supported Legislation
to broaden social security cover
age by millions Of workers and i'm
prove benefit payments, said tn
proposal 10 freeze social securit,
contributions has political appeal
but added:
I'm opposed TO . freeze al thu
time. Benefits are now create
than can be supported at the pres
ent contribution rate. Also, il wouI'
raise the problem Of whether L
enter q pay-aS.you-go plan iHstea,
Of building . trust fund reserv
for payment Of future benefits.
we freeze today. we would alm0s
inevitably have to adopt the pay
as-yuu-go system in the future"
Kean criticized the u. S. Cham
Der plan 10 pay minimum benefit
Increased from the present g
10 so a .nionth-to about live mil
lion retired persons over IS VIII
are now ineligible for social seeuF
ity and have not contributed to 1t.
This would rain the social SO
euriiy trust fund of 81 500. 000, 90
. year. the legislator said. woulD
"break faith with those who hzvl
paid into the fund" and nigh
make Of social security . "politica
fOothall"