Manchester College - Aurora Yearbook (North Manchester, IN)

Page 8 text:

Feature: When a nation ' s economy makes an encouraging turnaround from a recession to recovery, you have to stop and wonder what happened to cause such a change. No one is more qualified on Manchester ' s campus to answer a question like that than Dr. Richard Harshbarger, chair of the department of economics and business, pictured at right. The nation was informed in January that it was headed out of a recession that began in the latter part of 1981. The recovery was indicated by a drop in inflation from 13% in 1980 to only 4% in 1983, and a national output of three trillion dollars, an all time high. Although unemployment had only dropped from 10.7% in November 1982 to 10.1% in May 1983, 99 million people are working presently which is a near record high. According to Dr. Harshbarger this recovery was encouraged by Reaganomics but was actually caused by a drop in interest rates 17% in 1982 to 10 1 2% presently. The high interest rate made it difficult to buy goods which reduced demand, particularly in energy and food. This generated unemployment. Dr. Harshbarger predicts that the recovery will continue through late 1984 and that unemployment will come down slowly. t. koskey

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1. Sam Davis slips out of the communications building to enjoy his pipe and to chat with Director of Security, Gene Mooney. 3. What a sight to look inside the huge colorful hot air balloon as it is being filled and prepared for take-off on Homecoming Day. 2. Hey, Alright!! says Dan Walker as Todd Roberts puts the pedal to the metal on one af the maintenance carts . . . and finds his top speed is still S-L-O-W. Economic Crunch 3

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2. Demonstrators stand in Lafayette Park, across from the White House, protesting unemployment, which found more than 12 million Americans out of work in October. WE WANT lit COAL - i VUTO - STEEL- 3. The maintenance crew works on the flagpole in front of the Union so that it may keep up the campus ' beautiful appearance which helps to attract many prospective students. 1. A booming stock market made for feverish I activity as process on the New York Stock i Exchange soared to record levels several i times this year until it reached its present i level of 1226. Economic Feature 5