28 May 6 Things That Must Be Done if We Want to Check Inflation.
I found an old copy of the magazine Country Gentlemen from March 1951 and there was a full page ad in it from the Institute of Life Insurance, that well could be run today. And I could not help but wonder if the state of our economy would of gotten into the dire straits that it is in today, or “state of Emergency” as the article refers to if people had been doing these 6 things the last 58 years. Especially numbers 2, tell the government to be on a “pay-as-you-go” basis.” that is do not borrow money and 6, “We must buy only what we need” A.K.A cut up credit cards and stop unnecessary spending, both the people and the government.
“We are in a state of Emergency. We must build our military strength – and, at the same time, we must keep our economy strong for the long pull. Inflation bleeds both.”
1. We must increase production in order to meet defense needs and, at the same time, provide civilian necessities. Up to now peacetime demands have kept production at full blast. Of course we’ve got to reduce civilian demands. Even then it is only through increased production that we can meet this double need and also help keep prices from rising. Government, business and labor should discourage wage and profit increases which primarily increase prices without increasing production.
2. We must support increased taxes to put our government, as nearly as possible, on a “pay-as-you-go” basis. Paying higher taxes is not only cheaper for all of us in the long run but it helps to hold down prices now.
3. We must insist that our government cut non-military expenditures to the bone. Every dollar so cut is an added dollar for the defense effort without extra taxes or borrowing.
4. We must accept curbs on credit. Credit restriction help assure the supply of materials needed for defense, and help keep prices down, buy reducing competition for these materials.
5. We must increase our savings. We we put money into savings or investments, we cut the demand for civilian goods and make that money available for investment so businesses and factories can increase production. This helps check inflation. When we lend our savings to the government, to that degree we make it unnecessary for the government to borrow from the banks, and that kind of borrowing is inflationary.
6. We must buy only what we need, using credit as sparingly as possible. Otherwise we bid against ourselves for scarce goods, and that pushes prices up.