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Show CLEARFIELD COURIER, May 30, 1979, Page 2 u uu u uu V 4V 4V V Business service offered AN ALMOST PERFECT RECORD OF FAILURE Support Services Alliance, established one yesr ago by an $800,000 grant from the Rockefeller Foundation, today new ser- announced By Robert L. Schuettinger Advocates of mandatory wage and price controls are a dauntless lot. Even forty or fifty centuries of almost consistent failure havent dampened their enthusiasm. While there have been some cases throughout recorded history in which controls have at least temporarily curtailed the effects of inflation, they have always failed in the long run. The fundamental reason for this is that controls have not addressed the real cause of inflation which is an increase in the money supply over and above the increase in productivity. Just as a wet street does not cause rain, neither do businesses and trade unions cause inflation though they are frequently blamed for it. Rising prices (and wages) are the result of inflation, not the cause; the root cause is a decline in the value of the currency. And who controls the currency? Governments, of course, are in charge of the money supply and are the basic cause of inflation. Rulers from the earliest times sought to solve their financial woes by debasing the coinage or issuing almost worthless coins at high face value; through modem technology, the governments of recent centuries have had printing presses at their disposal. When these measures resulted in inflation, the same rulers then turned to wage and price controls. Unfortunately, the urge to pass the buck seems at least as strong as the urge to control it. When the controls failed, governments put the blame on the wickedness and greed of their subjects rather than upon the ineffectiveness of the official policy. As understandable as that may be, its never really deworked. The ancient Egyptians (and their present-da- y Hammurabi and scendants) tried controls, as did Babylons the Greeks and Romans. Down through the ages mandatory the rulers of ancient controls have made strange bedfellows the 1977 the Diocletian, Pennsylvania China, Emperor Legislature, Hermann Goering and Richard Nixon, to name a few. The alleged beneficiaries of all this government interthe general public vention usually either rebelled, starved, ran away, played the black market, or completely disregarded the laws. Centralized planning regularly appears in every generation and is just as readily discarded after several years of fruitless experimentation, only to rise again on a subsequent occasion. Grandiose plans for regulating investments, wages and prices, and production are usually unveiled with great fanfare and high hopes. As reality takes command, the plans are modified a little more, then drastically altered, then finally allowed to vanish quietly and unmounted. Human nature being what it is, however, the same old plans are dusted off every decade or so, perhaps given a new name, and the process is begun anew. The same tendencies remain today. Polls reveal the overwhelming majority of the American people regard infla- tion as the most important problem facing the country today. And a recent poll indicated 67 percent now favor mandatory wage and price controls. The Carter Administration, faced with a bogged-dow- n program, is being urged by advisors in and out of government to try this innovative idea. For some reason, they seem to believe that this time it may work. If an historian were to sum up what we have learned from the long history of wage and price controls in this country and around the world, he would have to conclude that we just do not learn from history. (Vermont native Robert L. Schuettinger is editor of PolReview icy quarterly, an Associate Fellow of Yale Universalong with Eamonn itys Davenport College, and book. Forty Centuries of F. Butler, of the Wage and Price Controls: How Not To Fight Inflation, published by the Heritage FoundationCaroline House, Washington, D.C. This article is based on that book.) anti-inflati- just-releas- SOLAR ENERGY IS NOW! vices and training materials for small businesses. It also announced the publication of its official magazine, la GEORGE NICHOLS Nichols selling policies Business. The largest disadvantaged group in America is the small business person said Herbert Heaton, President of SSA, a nonprofit organization. Speaking at the organizations the in headquarters A Crossroads Building, 2 Times Square, New York, Heaton continued, Twenty-fiv-e percent of the work or in force is organizations of less than 20 people. They are recognized as the countrys economic backbone, most recently by officials of the Carter administration, yet be they artist, merchant, or farmer, they lack access to services available routinely to employees of large corporations or governmental agencies, and they suffer disproportionate burdens of paperwork and taxes. The premier issue of la Business, 64 pages, size 8 x 11, shows a magazine exclusively dedicated to individuals who are or in small businesses, or who want to be. There are 51 drawings and photographs. A partial listing of the table of con- donated 24 trees to Layton park. From L to R are Joe Vesquez, Vergil Cuttler, Mary Schmit, Mayor Lewis Schields, Ralph Bohn, Harold Dickson, and Lorraine Hone. TELEPHONE PIONEERS OF AMERICA CLUB owned Club provides frees for park site LAYTON How fortunate the people ot Layton are to have such a beautiful park in the heart of the city, and the of Telephone Pioneers American, Wasatch Club of Northern Utah, proved to be part of it. The club donated 24 trees and planted them Saturday, May 19 with the help of Layton City personnel. The project was under the direction of Park Supervisor Jim blend of human interest and six children currently reside in Roy; they have two sons serving missions for the L.D.S. Church. Greg is in the Sao Paulo South Mission and Mike is in the Netherlands, Amsterdam Mission. Living Dream, Entrepreneuring on Sweat Equity, Business Use of Your Home - Tax Considerations, $15,000 on 50 Securing Small Business Financing, See acres, Your Accountant Before You Patients Fighting 0iven prosonts . buyers for a fee, participation in an office duplicator contract pricing plan and auto rental discount arrangements are among the services available on a group basis. How To Close Sales is a new addition to the SSA Business Skill Series. In addition, SSA represents the interest of its members to the public and to government. Of its activities, Secretary of Treasury It is Blumenthal writes, clear that SSA will fill a void that has existed for too long. The Telephone Pioneers of PRESENTING BICYCLES Mary Schmit, Mrs. Lyn LuAnn Thomason. AFB to the Clearfield Home Training Center were HILL AIR FORCE BASE--- A 20 year service pin has been awarded to William Kerschev of Sunset at Hill AFB ceremonies. (L Clinton has received a Sustained Superior Performance Award at Hill AFB (53179 Interest At 6679) By Richard M, DeVos and Jay VanAndel Family Bank on The recent spate of adverse commentary associated with the Commerce Department announcement of increased MA1KIET IBIRmaCATIBS first source of heat. Let's get back to it. after-ta- Tho highest interest rate In tho Nation on short term Insured savings. Highttt rate paid on ihort-tersavings insured by FDIC. term, $10,000 minimum deposit, interest paid on certificates only when held to maturity. Federal regulations prohibit the compounding of Interest during the term of the account. Six month WHOLESALE MEATS heating available for residential or comsystems 825-186- 2 mercial. New or older homes. SPECIAL THIS MONTH: DOMESTIC WATER SYSTEM Boef Hind Qucrter .. Vs Grain Fed DdOf V. No. Cut A Wrapped 1 rUni HamsI Wrapped S Bacon Smokod DasIt FIVE POINTS 21 HARRISVILLE TELEPHONE ROAD (801) OGDEN, UTAH 84404 0 Mwnbtr Ftdiral Otpotlt Inwranct Corporation i Cut . Rotail Specials Fri. & Sat. ' Let the sun heat your water for pennies a day I: jH j RESERVOIR EXCHANCER x earnings by corporations in the last quarter of 1978 suggests there is a lot of misunderstanding about corporate profits., Regrettably, too few people understand the importance of those profits to their daily lives. The reasons for this are many, but neither the media nor the business com-- , munity have done much to remedy the lack of economic understanding which exists in our country. Corporate profits are the funds left over after all expenses are paid. But the business person who takes those dollars and stuffs them in his or her pocket will not remain in business very long. That is where the misunderstanding exists. The after-ta- x earnings of a well-ru- n company must be reinvested in order for the business to prosper. They buy new plants and equipment. Profits produce new jobs and upgrade existing ones. Few people realize that it costs, a company, on the average, $50,000 to create one new job in most areas of the United States. Out of coiporate earnings, stockholders must receive some compensation for investing their dollars, and there is the need to encourage more such investment. Privately held businesses, such as Amway, are not under pressure to support the stock price of the company in the investment market and, therefore, are able to reinvest a greater percentage of the profitability in the business. This has been our practice, and it has enabled us to respond to the combination of circumstances which has propelled Amway to the half billion dollar sales mark in less than 20 years. Corporate profits must also be used to replace aging equipment. If a company is not sufficiently profitable to do so, it will be unable to compete with others in its field, particularly the modem, efficient foreign businesses. That means loss of jobs, increased imports, and unfavorable balance of payments. It is essential that more Americans understand the true significance of profits, because profits are the food which nourishes our economy. Let us hope that the next quarterly report of the Commerce Department will show another healthy increase in earnings. But lit us also hope that it will be greeted as good news for all Americans. ... EE: FURNACE EXCHANCER PI: PI: a Profits: Good News for All Americans m in Syracuse - Tel. el Business Viewpoint 9.409 thru three-whe- bicycles to the Clearfield Home Training Center for the enjoyment of the patients recently. They also presented tether ball and stand. Ceremonies. He is an aircraft mechanic at the base. Mr. Stephens and his wife Mary Ann have four children. HILL AIR FORCE BASE--Mich- ael G. Stephens of He is an aircraft electrician at the base. Mr. Kerschev and his wife Bemita have one daughter. MEATS America, Wasatch Club, presented two to R), Vergil Cuttler, Joe Vesquez, Walter and Elaine Lorraine Edwards, Hone, Ralph Bohn, Harold Dickson, and Olney recogizes civilians HOUSE OF The Sun was the n Commerce in 1978. George and Ann and their practicality: the Restaurant and operated Drive-In- community and church activities and was President of the Clearfield Chamber of tents indicates a unique Administrative Oppression. Members of SSA have access to service contracts, ; ranging from Blue Cross and major medical insurance to guaranteed college loans for children of members, not otherwise available to individuals or small groups -at least not at reasonable cost. Access to professional and Restaurant in Clearfield for 16 years; is specializing in life, health, business and afWoodward. Mayor Lewis group insurance and is ConPacific with filiated Shields accepted the trees to furand thanks the club for sulting Corporation nish advance retirement and them. donating tax qualified estate plan- self-employ- Start Clearfield ning. Mr. Nichols opened up in 1962, Hawkins Drive-In- n after working for the Idaho Fish and Game Department for eight years as an information specialist. He graduated from Idaho State University it) 1954 with a B.A. Degree in journalism. He has been active in ra Complete Hawkins . how-to-do- former Businessman has recently received appointment as an agent for Pacific Mutual Insurance Company. George Nichols, who PANEL PUMP EXCHANCER PUMP SOIARGENICS Tel. 393-135- 5 (Note: Richard M. DeVos is President and of Amway Corp., Ada, Michigan. Jay VanAndel is Chairman of the Board of Amway, and also is serving during 1979 us Chairman of the Board pf the Chamber of Commerce of the United States.) |