Brakes on Wage-Price Increases
Satisfaction over multiplying signs that the country is fast leaving the recession behind is currently clouded by fears that too vigorous a recovery will set in motion a new inflationary surge. The risks in the situation have impelled the Kennedy administration to make special efforts to prevail on labor and management to keep wage-price levels steady as business activity expands.
Unless restraint is exercised, administration economists have warned, inflation may wipe out a large part of the gains in national income and individual purchasing power to be expected from economic growth. First indications of the effectiveness of such warnings and appeals in an important sector of the economy will be given by the negotiations for new labor contracts with automobile manufacturers that ...