Brown and White Vol. 84 no. 50

              lehigh university brown and white bethlehem pa friday may 4 1973 215-866-0331 vol 84 no 50 large industry no longer operates by old concepts galbraith says by scott penniman we will understand very little about the modern economy unless we recognize that at its ultimate stage of develop ment — power passes and passes irrevocably from the owner to the organization from the capitalist to the industrial bureaucrat economist john kenneth galbraith said tuesday in grace hall galbraith the 1973 philip i berman lecturer in economics contended in his speech that large industry no longer operates under the old market concepts of economics he argued that maximization of profit and consumer sovereignty should not be guidelines in evaluating some 1,000 large industries that make up half of the nation's economy in the neoclassical view of economy galbraith said the individual consumer is ultimately in control of what is produced this consumer sovereignty he said is ensured by the producer's desire to make as much money as possible so that the producer will have to make what the consumer demands in order to maximize profits these two concepts he said are still relevant to small businesses or what he called the market system but no longer apply to large industry or the planning system galbraith stated that the planning system industries control their market large industry he said is unlike small industry because advertising govern mental influence and a lack of the profit motive allow large industry to control consumption large industry or mature industry galbraith said requires only a threshold level of earnings to keep stockholders quiet he said that the power of large industry lies not in the hands of the owner as it does in small industry but rather is controlled by a technocratic structure of high level employes in this system he explained profits in excess of administrative salary go to stockholders therefore the technocrats prefer to put profits into growth that will increase their responsibilities and their salaries galbraith stated that because the power of industry is out of the hands of the b&w photo by batcheler john kenneth galbraith galbraith calls bugging figures incompetents these people are the world's most well known registered incompetents stated economist john kenneth galbraith tuesday afternoon in reference to the individuals involved in the watergate controversy galbraith spoke before a full house in sinclair lab auditorium in an informal conversation-question and answer period dealing with his ideas on economics and social change it could have been possible that the president was kept in ignorance of the affair up until just before the break-in galbraith said in his experience with presidential election campaigns he ob served nobody really knows where the money is coming from or even where it is going you can bet that in future election campaigns one of the most important men involved will be'the accountant maybe it is good that this sort of thing happened he continued because in the last few years the white house has been taking on an aura the president is not a monarch now maybe this event will bring the presidency down to more human proportions when asked how he thought most of the country felt about watergate galbraith replied with . . joy at last these people have been found out he then added and lewis says students have informal role on tenure by bill white president w deming lewis said i think students should have some input in an advisory way into tenure decisions in a brown and white press conference wednesday in addition to tenure lewis touched on progress in the all-university complex planning the brown and white freshman poll wrestling scholarships and the forum in the course of the interview on the tenure question lewis said i think very often inputs from students are taken into account on an informal basis but he spoke out against giving them a formal voting role in tenure decisions the reason is there's a conflict of in terest he explained because faculty are often called upon to give students graduate school recommendations set curricula and give grades a possible conflict of interest is created if the student has a formal role in deciding whether that b 8 w photo by batcheler pres w deming lewis herz 2 others refuse comment on cap tenure anna herz chairman of the department of modern languages and literature has refused to comment on the contract ter mination of biruta cap assistant professor of french also refusing to comment were victor valenzuela professor of spanish and john übben professor of german übben who is on sabbatical leave said he should not comment from outside the university he will retire after this semester mrs cap said she suspects that mrs herz valenzuela and übben opposed granting her tenure because of her op position to the language department merger john a van eerde professor of french said that he is not aware of any covert hostility toward mrs cap he said that she has been very useful adding that she became advisor to the french club and has contributed considerably to the aid office seeks irs data to offset abuses of system by john russial editor's note — this is the second of two articles dealing with abuses of university financial aid services there are very few needy students here with good academic records who are not getting financial aid according to financial aid director william e stan ford but a lot of other students have to take more in loans than they would if we could tighten up the grant arrangements the office computes a student's need on the basis of the parents confidential statement pcs the aid package offered may include grants loans and jobs around the university stanford said that the system is need based but is also a reward system he said that as a student improves his academic performance he can reasonably expect a better aid package for example an entering freshman assessed at 2,000 need whose cum is predicted at 2.7 may be given a 1,000 loan and a 1,000 grant if he gets a 3.5 he may be given a 500 loan and a 1,500 grant the following year stanford said that an entering fresh man's cum is predicted according to a formula used by the aid and admissions offices which includes factors for his rank in class his verbal and math sat scores and which college he is admitted to he added however that the prediction is not the final word also taken into ac count are a student's interview at the university his extracurricular activities and his recommendations the prediction is a significant influence when it comes to putting the aid package together he said stanford said that the amount of com puted need changes with the family financial situation as reported on the pcs and income tax forms and with increases in institutional costs , . every student has the opportunity to come to us during the semester when a significant decrease in family earnings occurs such as hospitalization unem ployment or death of a wage-earner with a reasonable chance that we'll raise the award stanford said students also have the obligation to go mohler reserves judgement on law school until report by jeff bloom i don't believe anybody is really against the law school it's just a matter of how it can best fit into the university financially said harold s mohier president-elect of the board of trustees in an interview monday mohier discussed a wide range of topics including the proposed law school black enrollment coed enrollment the weintraub tenure controversy the all-university complex the b&w freshman poll the forum and the role of the trustees concerning the proposed law school mohier said i've tried to not make up my mind either way until we get the report from the trustee committee he added that the law school would be good for the university if we could swing it finan cially mohier said he doesn't know if the trustee committee will be ready to present their report asked if there is a possibility that another type of professional school would be considered if the law school is turned down mohier responded if the law school diesn't come about here i would b&w photo by batcheler harold mohler see need page 4 see aid page 5 see large industry page 4 see 3 languages page 6 see lewis page 6 see galbraith page 4 lastb&w this is the last issue of the brown and white for the spring 1973 semester publication will resume in august