European Stars and Stripes (Newspaper) - September 01, 1985, Darmstadt, Hesse                                Page 10 the stars and stripes sunday september 1, 1985 David Broder a s a new Medicine is needed to cure economic woes in 1981, the year the last recession began the Federal government had a Defi Cit of $78 billion. Two years later when that recession had run its course the Defi Cit had almost tripled to $207 billion. This a Cir according to the  con Gressional budget office estimate the deficit will be $210 billion. If another recession hits and the pattern of the past holds one can imagine annual deficit ballooning by inc end of the Reagan administration to the staggering level of More than one third of a trillion dollars a year. That Nightmare possibility has entered the discussions in Washington because of the recent spate of nervous economic indicators. On successive Days you could read that business sales dropped inventories Rose factory output and capacity utilization stagnated and Home construction slumped. While few economists were predicting a recession the head of Chase Econometrics said there is no reason to expect a major  Rudolph pc Ncry the head of co said the economic Outlook remains very Uncertain and he warned that with deficits in this time of general Prosperity running at More than $200 billion a year they Don t allow any margin for safety if the Economy performs worse than sex  All this makes it pertinent to ask just what the United states would do if the Economy staggers into another slump under the Burden of the incredible debt accumulated during the Reagan years. The Standard keynesian prescription for dealing with a recession is to Cut taxes and or increase government spending and Iner by stimulate demand in Hopes of bringing the Economy out of its nosedive. That is what Reagan did in 1982 and eventually it worked but at terrible Cost to the budget. At a session of his personal think tank the Center for a new democracy sen. Gary Hart  assembled a group of people to see if they had any ideas other than traditional pump priming remedies. When i read the transcript of that session i realized that there arc other options. Bui All of them would re quire More courage and imagination than either Congress or this administration has shown. The main Point that emerged from the meeting was that lacking flexibility to apply traditional fiscal stimulus the government should try to promote in creased flexibility in the labor Market. That Point was stressed by economic consultant and author Pat Choate of try economics writer Robert Zultner and professor Martin wait Man of the Massachusetts Institute of technology. It was that Point to which Hart eyeing a second bid for the presidency in seemed most responsive. T How do you get More flexibility in the Job Market Echo at offered several Pra tical an Chii Crem All this Jill sevbuoi1 Swirs. Improving the existing l a. Employment service is one Way to get a bet Ter Mailki people and jobs. Today he snid that system is barely functional. Only 7 percent of Job seekers receive counselling Only 2 percent receive training and less than 25 percent arc eventually placed in  the problem he said is miserly Ness. For example fewer than half of All states have computerized offices. The department of labor still exchanges information about Job vacancies Between states by mailing it to Albany n.y., where it s sorted by hand and then mailed but again to the individual states Choate estimated the Cost of computerizing the system As presidents As far Back As Richard Nixon have talked of doing at $60 million. The time to make that investment is now not after the next recession has begun. Both Choate and Kuttner argued persuasively that whether there is a recession or not retraining of today s workers for tomorrow s jobs has to be Given higher priority. One Way to do it is to shift some unemployment compensation funds into training programs and even subsidized re employment. Another is to change the tax Law so that employers get the same write offs for improving their employees Skilli As they do for modernizing their Plant equipment and technology. Weitzman offered a More far put no Tion shifting the Basic compensation sys tem so that less of a worker s income comes As wages and More As profit Shar ing. That Way he said fewer people would be Laid off in the next recession and More firms would weather the storm. Hart provided a Public service by launching the discussion on Steps that can be taken now to ease the pain of the next recession. But it will take More than Dii Cussion. We had belter recognize that the familiar Medicine of counter cyclical Defi Cit spending has been squandered by the foolish fiscal policies of the past five years. If we Don t find new Medicine we May not recover next time. C wait Nolon poll William Safire courtesans corps the acc was never like this the nation has become blotto Over lotto. Slate governments have found a Way to soak the poor and the poor Are lapping it up $10 billion a year is now being cd tracked legally from the pockets of the suck ers As the Media lustily publicize the winners and beaten Down moralists mumble about the states ill Gotlin gains going toward Good causes like Educa Tion. Today 21 state governments not Only participate in but actively promote what used to be considered a reprehensible activity exploiting the desire to get Rich Quick without work. Off track betting Parlours operated by Testate compete with the latest state sponsored lottery vending machines for a piece of the poor Man s payroll and clergymen complain Only  it is cutting into Bingo profits. In that spirit let us examine the next step in inc harnessing of immorality for the Public Good the creation of a National courtesans corps. Prostitution in most states is still illegal As organized gambling used to be but we All know thai inc oldest profession is still in business. Why should we let the profits accrue to the middlemen the pimps with their notorious and socially wasteful corruption of vice squads when a Public commission could undertake that role in addition Why should the vast income of millions of prostitutes continue to go untaxed the trick is to bring prostitution under National control. In so doing we would not Only eliminate overcrowd ing of court calendars and jails but would introduce new health standards and psychological Pride into an Indus try that cries out for such care. Most important the courtesans corps would Channel billions of dollars into the National coffers in a Lime of growing deficits. Some will say thai any new Revenue from this untapped source would be frittered away citing the Way lottery profits supposedly earmarked for Educa Tion merely substitute for general slate revenues Hal used to be allocated for that purpose. For each lottery Dollar added a tax Dollar is subtracted that mistake can be avoided a separate antisocial Secu Rity Trust fund could be Ici up to take care of the needs of both courtesans and their Johns in their Posl sexually Active years. Others will take Sharp exception to this modest proposal on the grounds thai profits from prostitution Are state and local tax resource in which the Federal govern ment should not interfere. The fact is. However Hal local budgets Are in belter balance than is inc Federal budget and inc Lime has come for reverse Revenue sharing. The Antici paled argument easiest to counter holds that govern Cal sponsorship of prostitution. Wilh ils attendant advertising would be taken As social approval of the activity and Hal prostitution would increase. That s what they said about compulsive gambling and so what gambling now state blessed and fouled is booming and docs anyone make a moral fuss Abou children less we 1 fed by parents who dip into the milk Money to by a foolish dream gambling and prostitution have traditionally gone hand in hand. Lei us be consistent government s Teal of moral approval cannot be enthusiastically Given one and sternly withheld frown the other. Indeed if the Basic determinant of what is Good is what satisfies the great est number or what provides the most real education gambling produces legions of losers while in prostitution no play is to win. Moreover a courtesans corps would contribute to the dignity of work. Just As croupiers have come out of the closet and race track Louis and numbers players now hold their Heads High millions of workers so Long patronized As ladies of the evening would have their Day in the Sun. We in this tap hidden tax resources painlessly movement can foresee the Day when the state Gam bling commissions work in close coordination wit the Federal prostitution commission offering lotto winners sexual satisfaction in lieu of today s promote of yearly Cash awards. An . Guarantee of life 5"s " " proc Thal cannot by eroded government s widely hailed piece of the action gambling followed by a courtesans corps and t eras in then n in w e seen some Oay As Steps on the glory Road Loward Crad Calion of the evil of taxation. To new York to Laws