Evening star., 1961-02-02

ECONOMIC
Retirement at 81
Proposed for Men
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IIOPOSeu
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and has achieved only 2.5 per
cent annual growth. Even the
3.5 per cent rate "is not high
enough" he said, proposing to
increase that capacity through
investment in physical and
human resources. and In science
and technology"
But he did not specifically
adopt the Democratic plat
forms goal Of q 5 per cent
growth rate.
In the immediate future, the
President said. widespread ex-
pectations Of minor improve
mentS in business condition"
this year are mo basis for COM
placency. no excuse for mac
ton" The Eisenhower admin
iStration opposed deliberate
anti recession actions on
grounds that the economy
would recover on its own with
out Government stimulation.
Even the prospect of minor
gains this year Is not o sure
thing, the President said. warn
ing that I'VE cannot rule out
the possibility Of further de-
terioration II we fail to act"
Mr.. Kennedy laid out his pro-
gram In today's special message
and at his news conference
yesterday. In some cases, he
merely sketched his ideas and
told Congress details would be
forthcoming soon. There were
indications that the economic
message was revised extensively
right up to the time it was
distributed to the press.
Many Other Steps
In addition to the proposals
on social security and jobless
pay, the program includes lib
eralization Of terms for mort
cages and other construction
loans. expansion Of United
States Employment Service ac-
tivitieS, aid for children of
unemployed workers, aid for
depressed areas, a stamp plan
to distribute food to the needy,
early payment Of veterans in
surance dividends and possibly
another dividend this year, in
creased minimum wages, accel-
Grated Government spending
for procurement and construc-
ton, tax incentives for business
investment, expanded develop
ment Of natural resources and
investment in human re-
sources" through sid to educa-
ton and other programs.
VIII Pick New Group
The President also announced
his intention to promote "pro-
ductivity and price stability" by
establishing a 21-member Presi-
dents Advisory Committee or
Labor Management Policy.
On interest rates, Mr.. Ken
nedy limited that he had wor
assurances Of cooperation from
William McChesney Martin, jr.
chairman of the Federal Re-
serve Board. Democrats have
criticized Mr.. Martin for pur-
suing tight money" policies.
Mr.. Kennedy's program Is
designed generally to pump
money into the economy, to
encourage consumer spending
and to promote investment out
lays-all with the aim of step
ping up employment and pro-
duction.
Other Proposals =
He made these proposals for
congressional action and an
nouncements of executive
action:
Social Security. About 4.5
million persons would benefit
from the increased benefits he
proposed. The cost would be
paid by increasing the tax or
employers and employees by u
Of l per cent each effective
January i, 1868, but the new
benefits would go into effect
this April /.
The minimum monthly bene-
fit for retired workers woulo
rise from $33 to $43 per month
affecting 90 million pensioners
in the first year.
Men would be eligible fol-
retirement pensions at the age
Of 50 instead of IS, with their
monthly benefits reduce d
accordingly. Women now are
eligible to retire at SO. About
900, 900 men would benefit.
Monthly benefit payments to