Jimmy's Conciliatory Gestures

He shows some give on energy, inflation and unemployment

"There's no easy answer, of course, to I the unemployment question," said Jimmy Carter at his press conference last week. Then aides disclosed that the President is supporting a watered-down version of the Humphrey-Hawkins full employment bill that is no answer at all. The legislation would set a national goal of reducing unemployment, which has been stuck at around 7% for six months, to 4% by 1983. But the measure does not require the Administration to take any specific steps to get there; nor does it include any specific programs to create jobs.

The proposal is far less ambitious than the original bill by Hubert Humphrey and California Democratic Congressman Augustus Hawkins, which would have fixed 1981 as the target date for a 3% unemployment rate and guaranteed a Government-paid job to anyone who could not find work. Carter lukewarmly endorsed this idea during the campaign--after intense pressure from black leaders--but later backed away from it as inflationary. Unable to talk him into supporting a stronger bill, liberal Democrats and labor leaders finally agreed to the present compromise for two reasons: 1) it might enable Congress to pass an employment bill before next year's elections, and 2) it could set a bench mark for rating the Administration's progress in reducing unemployment in coming years.

The revised version authorizes the President to scrap the 4% jobless target if necessary to keep inflation from rising rapidly--a signal to wary businessmen that the Administration is serious about holding prices down.

To further ease worries about inflation, Carter last week minimized the quarrel between the White House and Federal Reserve Chairman Arthur Burn over the Fed's tight rein on growth in the money supply. The Fed's policy stands to restrain prices, but at the expense of slower economic growth. Claimed Carter of his relations with Burns, despite evidence to the contrary: "We've never had any disagreements on [economic]subjects."

The Administration also took a conciliatory approach with the conference committees that are trying to resolve differences between the House and Senate on an energy program. The sessions are expected to go on for about a month. Last week the conferees accepted stricter House standards that require large new industrial plants to use coal instead of oil, but looser Senate standards on forcing existing plants to switch from gas to coal.

Not for another week or so will the real showdowns start to come, when the conferees tackle the questions that widely divide them. Both sides agree that energy prices must and will rise. But Carter and the House want to retain price controls and increase energy taxes. The Senate prefers a freer market; it wants lower taxes and less regulation.

Carter last week made a low-key televised appeal for public support of his approach, while going out of his way to avoid antagonizing Congress. Said he: "This is not a contest of strength between the President and the Congress, nor between the House and the Senate." Moreover, White House lobbyists have not tried to pressure the conference committees. On Carter's orders, says Press Secretary Jody Powell, the White House will "not get directly involved until the crucial moment." Says another presidential adviser: "Obviously we're not going to get all we want." Compromise is in the air.

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