The Economy
Sir,—A primary inference from economic laws is that internal State borrowing—the main purpose of which, may I remind “B. Constant," is to relieve an overload of purchasing power—cannot cure an inflationary condition. Such means are ineffectual unless the overload is “frozen.” Propagandists to the contrary, the re-admit-tance of such monies into circulation by whatever channels merely transfers excess spending power into other hands. So used, internal State borrowing will not purchase one item of new equipment, materials, or other imported -goods which must be paid for finally in exports. Let government rather reach agreement with workers’ representatives to “freeze” meanwhile any general wage increase the Court may grant, while itself under, taking in return to impose a like percentage “freeze” of profit margins, dividend returns, and professional charges. Inflationary pricerises might then be held to the good of all.—Yours, etc., FRANCIS Wm. HEAL. November 25, 1961.
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Press, Volume C, Issue 29682, 28 November 1961, Page 3
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148The Economy Press, Volume C, Issue 29682, 28 November 1961, Page 3
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