Inflation: the Need for a More Balanced Policy Mix: Hearings, Ninety-first Congress, Second Session, on S. Res. 357, Expressing the Sense of the Senate on Inflation. March 10, 11, and 12, 1970, Volumes 22-23

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Page 222 - How is the public to judge whether a particular wage-price decision is in the national interest? No simple test exists, and it is not possible to set out systematically all of the many considerations which bear on such a judgment. However, since the question is of prime importance to the strength and progress of the American economy, it deserves widespread public discussion and clarification of...
Page 51 - If the President determines that the situation warrants extraordinary overall stabilization measures, the AFL-CIO will cooperate so long as such restraints are equitably placed on all costs and incomes — including all prices, profits, dividends, rents and executive compensation, as well as employees
Page 206 - Our merchants and master-manufacturers complain much of the bad effects of high wages in raising the price, and thereby lessening the sale of their goods both at home and abroad. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.
Page 224 - They have moved from wage policy toward "incomes policy." Instead of focusing upon the relationship between wages and productivity, they have come to stress the relationship between total money incomes and real national output. The Organization for Economic Cooperation and Development (OECD), of which the United States is a member, has had a Working Party on Costs of Production and Prices studying stabilization policy in its member nations.
Page 224 - An argument can be made out for planning or guiding incomes; an argument can also be made out for leaving them unplanned and unguided; but there is nothing at all to be said for planning or guiding half the incomes and leaving the other half unguided and unplanned and subject to market forces or varying degrees of monopoly control.
Page 41 - By discarding its own rules for calculating the wage guideline, in a flagrant effort to keep it low, the Council of Economic Advisers has destroyed the guideline's credibility, has helped to accelerate the shift of incomes away from wage and salary earners to other groups in the economy and has added to imbalances that can undermine healthy economic growth. Neither trade unionists nor members of the public at large can be expected to accept such a one-sided shift in the method of arriving at the...
Page 41 - While workers' buying power has been lagging behind the increase of productivity, profits and dividends have been rising, much faster than employee compensation. In 1965, for example, corporate profits rose 15 percent before taxes and 20 percent after taxes, more than twice as fast as total wage and salary payments. Last year, General Motors' profits reached a spectacular $2.1 'billion after taxes, up 23 percent from 1964.
Page 37 - Federal construction projects were cut. The real volume of total national production declined slightly in the fourth quarter of 1969 and the President's Council of Economic Advisers forecasts little, if any, rise of real national output in the first half of 1970, with merely a small improvement in the second half and a modestly slower rise in the price level. However, the spread of downward trends in many parts of the economy indicates that even this rather pessimistic statement of the administration's...
Page 202 - Review Board of any intended price increase. The Board would have authority to call the company before it for a public hearing. At such a hearing the Board would have the power to subpoena witnesses, company books and other pertinent documents and examine witnesses under oath so as to obtain all the pertinent facts, and following the hearing to publish its findings and recommendations and the facts supporting such recommendations. The recommendations would be based upon a set of standards carefully...
Page 41 - ... earners to other groups in the economy and has added to imbalances that can undermine healthy economic growth. Neither trade unionists nor members of the public at large can be expected to accept such a one-sided shift in the method of arriving at the guideline figure. This action is nothing less than an attempt to short-change workers — an effort to impose the burden of the price level on wage and salary earners, who do not set prices, while there is no effective guideline for prices and no...

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