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Show The Consumer Suffers! By GEORGE PECK It is becoming more apparent with each passing day that government govern-ment price controls are the greatest stumbling block in he way of the nation getting back onto a smooth peacetime economy. The proponents propon-ents of price control argue they are necessary to prevent inflation. The fact is, however, that price controls are creating the very inflation infla-tion which its advocates claim it should prevent. Price controls were necessary during the war when such a large percentage of industry was devoted to war production. They- served a two-fold purpose. They not only prevented wild bidding up of ordinary ordi-nary commidities rendered scarce by curtailed production, but they tended to discourage manufacturing of civilian goods. Now the situation is reversed. It is too much to expect that the self -same thing that acted as a deterrant will now function as a spur to production. We need production of civilian goods, of all the gadgets gad-gets and merchandise that can possibly be turned out. The artificial price controls, so effective in keeping down civilian production during he war. are jus as effectively curtailing production in peacetime they had the desired effect during the war; they now exercise an undersir-ed undersir-ed and paralyzing effect during peace. The National Retail Dry Goods Association has published a booklet, book-let, "The Consumer Suffers." It is replete with illustrations graphically graphical-ly depicting the fallacy of maintaining price controls now that the war is oyer. Bearing in mind that this booklet was compiled and published, pub-lished, not by an association of manufacturer, but by a group composed com-posed solely of retail merchants, what is said in the foreword thereto is of vital significance. I quote a part of it: "OPA policies have frozen many manufacturers to ceiling prices which do'not allow them to produce the things which consumers need so badly. On the other hand, very often OPA does permit a newcomer newcom-er a ceiling price so liberal that it is hard to understand. Usually such newcomers do not have either the experience or facilities to produce merchandise in large quantity which for quality compares with the products of manufacturers whose goods are no longer available because be-cause of inadequate price ceilings. "Thus the country is not getting .the production of good sound merchandise in the lower price ranges which consumers need. Thus, also, in very many instances consumers are obliged to pay unnecsar-ily unnecsar-ily high prices for goods of inferior quality. Meanwhile, the plants which could be pouring forth great quantities of badly needed merchandise mer-chandise are being diverted to other production. A realistic attitude on the part of OPA should lead to a revision of its wartime policies which would encourage this production instead of prevening it . . . "In every case where a manufacturer is prevented from producing a meritorious article, the cost of living is increased because the lack of a sound article at a fair price makes room for a less worthy thing at a higher price, and THE CONSUMER SUFFERS." . |