Show I Were We're Thoroughly Inflated Rep Hep Laurence J. J Burton R- R Utah R-Utah Utah What would you say to paying paying paying pay pay- ing 10 for a single haircut Or how about for one days day's care in a hospital room Or spending 10 for a 4 car What about for a house And our children will be paying 6 for a years year's tuition in col col- lege DONT DON'T LAUGH Those costs arent aren't too far away if the present of living prices continue to skyrocket In the last eight years living costs have gone up 17 per per- cent In fact during the last three years the cost of living for the average city family has jumped per cent PUTTING THIS a little closer to each of us-take us a single dollar A dollar acquired in 1965 now is worth 90 cents A ten doll dollar ar b bill ll is now worth A savings account accountis is now worth a loss of nearly 52 And a insurance insurance insurance in in- policy of January 1965 has now depreciated over a thousand dollars OF COURSE the average housewife could put it even better Prices from only three years ago show a marked in in- crease A pound of hamburger when comparing today's prices with those in 1965 show an increase of percent milk up percent a dozen oranges oranges oranges or or- anges up percent-just percent to mention a few items n n n n A recent inflation spiral took place in late July Wage settlements settlements settlements set set- in the steel and aerospace aerospace aerospace aero aero- space industries pushed labor costs up more than six percent percent percent per per- cent a year If these two industries industries industries in in- were alone in their monetary hikes it wouldn't be such a big push for inflation in in- talk-but talk these in industries industries industries in- in especially steel seem to set the pace for other negotiations negotiations negotiations ne ne- ne- ne as contracts in other fields open up BUT JUST HOW much does the wage increase have to do with inflation Lets Let's take a look The year was 1933 and the federal government decided to drive up sluggish prices The only way to accomplish this was either to create a scarcity of goods or create an abundance abundance abundance ance of money through deficit spending The government decided decided decided de de- de- de to do the latter The idea is rather an old one-one one America borrowed from the English The idea is isto isto isto to increase prices by having the government spend more money than it has THE GOVERNMENT creates new unearned money through the banking system adds it to the money already in circulation circulation cir cir- and thus raises pries prices pric s by reducing the purchasing ing power of all the money High prices do not cause the issuance of this money- money it is the issuance of the money that causes high prices We simply use more dollars to produce and exchange the same quantity of things And unfortunately whenever our salaries go up prices rise because because because be be- cause selling prices are practical practically y the same as wages and salaries IN 1933 WHEN the government government government govern govern- ment inflated prices everyone everyone everyone every every- one got in the act wanting higher salaries to meet the prices Now besides the salaried worker being hurt by inflation inflation inflation in in- the government also has those bad when days-when they spend billions on airplanes missiles etc and have to take long periods of time to complete complete com com- alete the contract NATURALLY the cost of things goes up up- between the time tim the the the- money is is s appropriated and the time o ot 0 the contract completion The budget isn't big enough and more money must either come-either by a tax increase increase in increase in- in crease or again the creation of more unearned money The present administration has tried to cut back inflation by using guideposts which call for stable prices in in in- among other things The administration also has resorted to stockpiling its strategic materials and has talked about direct control over prices and wages as it had during the Second World War The administration also has threatened to increase the discount rate through the Federal Federal Federal Fed Fed- eral Reserve Board and control control control con con- consumer credit and forms of credit SO FAR NONE of the proposals proposals proposals pro pro- have cured the ills Although Although Although Al Al- though I doubt this nation will willever willever willever ever come to the point that Germany did when following World War I a German paycheck paycheck paycheck pay pay- check one day was worthless worthless- the next still we must learn from past mistakes We must take a long hard look at the previous decades and surely the new administration administration administration admin admin- taking over in Washington Washington Washington Wash Wash- ington next January can then come up with a better answer to our inflation problems |