What Would Labor Do About Inflation?

Abstract

The major needs of our time are adequate na tional defense, public services for a growing population, com prehensive economic and technical aid for the uncommitted peoples of less-developed areas of the world who are emerging from colonial domination and social and economic adjustments to rapid technological change. These needs must be met for national survival and the continued progress of our free society. They can and should be met by economic expansion of at least 5 per cent a year. Restrictive economic policies that curtail economic progress and growth must be abandoned. The "tight money" policy should be halted if growth is to be stimulated. Continuing wage and salary increases should be encouraged if growing consumer markets are to be attained. The govern ment's budget policy should aim at balancing the budget in times of full employment from an expanding economy rather than restricting government expenditures and retarding eco nomic growth. Full employment and economic growth of 5 per cent a year should be established as basic national objec tives, to be implemented by government policies. To achieve these major requirements, there should be an end to the inces sant propaganda campaign about runaway inflationary pres sures that have not existed in the past eight years. Solutions for the type of price changes of recent years have to be devel oped on the basis of the facts in each separate part of the economy. The main task of the day is more rapid economic expansion to sustain full employment and meet the nation's needs. This will do more than anything to stabilize the price situation.