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Show November 19, 1971 The UTAH INDEPENDENT Page 9 Wage - Price Controls Divide By Congressman John G. Schmitz freeze and the coming e Phase II controls controls. - not to make the controls permanent. But by October 28, when Under Secretary of the Treasury Charles Walker briefed Members of Congress on the full Phase II program of price and wage controls, most of the pretense was dropped. morally right for the U.S. Government to force the worker to sell his labor for less than its value to him and to his employer? Milton Friedman, Professor of Economics, University of Mr. Walker could not foresee when or how the controls would end, and explained that the freeze Chicago Middle-clas- s America has been On October 7, speaking to the nation, he said: I am announcing tonight that when freeze is over on the 90-da- y November 13, we shall continue our program of wage and price restraint, though he still made passing mention of an intention . Anaconda Copper i.e., to force it to sell its copper mines for a price less than its value; but Administrations price and wage controls program. Yet how many readers, even of this newsletter would still, in defiance of all fairness and logic, answer the second part of his question with an angry yes? Sunday evening. Lasting government price and wage controls have never worked in the whole history of the world, and can only be made to seem to work in a fully totalitarian state. Hie reason is simple, but needs to be repeated over and over again: The primary cause of inflation is straitjacket of government expropriate the property of issue in the economy be as free as it was in the weeks leading up to that fateful enterprise system in a permanent much more fundamental issue. The ' controls are deeply and inherently immoral . . . Is it morally wrong for Chile to Professor Friedman, one of the academic worlds last defenders of the free market against the Keynesian prescription for a government-controlle- d economy which President Nixon has now embraced, has penetrated to the foreseeable future will our Nation's great, strong free has been strictly economic and operational: were they needed, will they work, how will they operate ?. . . There has been essentially no discussion of a heart of the Conquer extended beyond 90 days and that nothing could be more detrimental to the new prosperity in the long run than to put this Most discussion of the wage-pric- & Congressman John G. Schmitz encouraged to blame inflation on the labor unions and therefore to welcome even the most drastic Federal controls to limit pay increases. But at the very same time the workingman has been encouraged to blame inflation on big business and its greed for profits, and therefore to welcome even the most drastic Federal controls on prices and rents. would in fact continue after wage controls are desirable. As Professor Friedman points out, opposition to them on principle is, so far, scarcely to be found. By setting class against class in America, the government economic planners at least for the time being appear to have Consequently, for opposite reasons, both business and labor have and most Americans been persuaded that price and conquered. Let there be no mistake about i$: these controls are for all intents and practical pruposes permanent. On September 9 President Nixon told Congress that the freeze will not be November 13, with only such exceptions as the new Pay Board government itself, through deficit spending and debasing the currency. Price and wage increases are the RESULT, not the cause, of inflation. President Lyndon Johnsons budget, for his last year in office, was SI 85 billion. President Nixons budget this year is $230 billion. For next year it will be at least $250 billion, possibly as high as $275 billion, and the Treasury Department admits there will be at least a $27 billion ' deficit assuring that inflation will continue, controls or no controls. Yet the American divided against and Price Commission would in people, themselves, are being taught to their own good time allow. It is blame everyone for this but the hard to see how this can be called real culprit. anything other than a direct If we do not value our free breach of the Presidents promise market we will lose it forever. The September 9 that the freeze only alternative is would not be extended beyond socialism. 90 days. Economic columnist Sylvia Porter has stated what is almost The wages of sin are not . certainly the truth: We entered a frozen. Sign on a church in new economic era in the United Medford, Ore. States on August 15. . . Not in the full-sca- le . - LOWEST PRICE EVER! gAgm $4. Per Year New Subscriptions or Renewals fe (HbCBE? OD(jJj0iD MODtodl) to clip and mail today GRAND OPENING The Independent Dedicated To The Constitution, liberty. Manky, and Truth Post Office Join us for our big CELEBRATION Fri. & Sat. Box 6274 374 North State in OREM. Salt Lake City, Utah 84106 Name Specials in all of our Samons Stores Address LIGHT BULBS (City) (State) (Zip Code) 40 - 60 10 for $1.00 - 75 - 100 watts Many more items to choose from. |