July 9, 1975
Page 21742
BUDGET COMMITTEE TO HOLD ENERGY, ECONOMY SEMINARS
Mr. MUSKIE. Mr. President, next Tuesday, the Senate Budget Committee will begin 2 weeks of public seminars on the budgetary and economic implications of recent or anticipated actions in the energy field. Consideration of these issues is essential both to our committee's report of a second concurrent resolution on the fiscal year 1976 budget and its preliminary work on the budget for fiscal year 1977.
These seminars will be held within the context defined in the first report of the Congressional Budget Office entitled "Inflation and Unemployment."
Senator Moss, who serves as chairman of the Committee Task Force on Energy, will chair several of our seminars. I believe Senator Moss' background and interest in environmental protection, technology, minerals development and consumer affairs will be particularly useful in our efforts.
All seminars will begin at 10 a.m. in the committee hearing room, 357 Russell Senate Office Building.
On Tuesday, July 15, the committee will consider the economic outlook as the context for examining energy policy. Alice M. Rivlin, Director of the Congressional Budget Office, Robert W. Hartman, of the Brookings Institution, and Albert T. Sommers of the conference board will testify.
On Thursday, July 17, the committee will look at the internal aspects of the world energy problem. Discussion will focus on the balance-of-payments situation, the petrodollar buildup, the impact of energy price increases on developing nations and the need for new financial institutions to deal with these problems. Witnesses will include Robert Roosa of Brown Bros., Harriman &
Co., William Branson of Princeton University, and a representative of the Overseas Development Council.
On Tuesday, July 22, the committee will look at the impact of the energy situation on production. We will consider the increased need for capital by various industries as well as the proposed incentives to encourage such capital formation. Issues to be discussed include price controls, excise, and windfall profits taxes, the development of production frontiers such as Alaska and the Outer Continental Shelf, and the development of new technological frontiers such as oil shale, synthetic fuels, and solar power. Witnesses expected to participate are C. Howard Hardesty of Continental Oil, Kenneth Hill of Blyth, Eastman, Dillon & Co., Paul Davidson of Rutgers Unversity and Harry Perry, National Economic Research Associates.
On Wednesday, July 23, the subject will be energy consumption. The discussion will focus on proposed incentives for energy conservation either through controls or price increases. Witnesses will include Lee White of the Consumer Federation of America, Herman Kahn of the Hudson Institute, and Lester Lave of Carnegie-Mellon University.
On Thursday, July 24, the committee will consider the impact of alternative energy policies on employment and inflation. The committee will consider the various fiscal and monetary actions which might be required to offset the adverse impact of such policies. Witnesses include George Perry of the Brookings Institution and Phillip Cagan of the National Bureau of Economics Research, Inc.
On Tuesday, July 29, the committee will study the, various energy policy "packages" which have been proposed for dealing with the problems of energy, inflation and unemployment in an integrated fashion. Charles Schultze will participate with others.
These 2 weeks of seminars could not be more timely. Anticipated developments in the energy area threaten to reverse the apparent trend toward improved economic conditions. Dealing with significant problems of chronic unemployment and potentially rising inflation rates without recognizing the impact of energy developments cited by the CBO's June 30 report raises obstacles to recovery.
It has become obvious that the problems of unemployment, inflation and energy must be dealt with in a coherent fashion. To address one problem, while ignoring others, is self-defeating. Our solution to the employment problem must reflect our policy judgments as to inflation and energy.
Likewise, our solution to the energy situation must reflect our judgments as to appropriate action for dealing with unemployment and inflation.
Recognition of these basic and inevitable trade-offs is critical.
As we begin the following 2 weeks of seminars, our committee will examine the long-term energy challenge, balanced against the twin goals of a prompt, sustained economic recovery and reasonable price stability.