‘Inflationary Signs In U.S.’

Press, Volume CV, Issue 31052, 6 May 1966, Page 13

‘Inflationary Signs In U.S.’

(N.Z.P.A.-Reuter—Copyright) WASHINGTON, May 4.

President Johnson said today that disquieting inflationary signs were beginning to appear although the United States’ economy was growing stronger every day.

The President, opening a meeting of his Labour-Man-agement Advisory Committee at the White House, asked the group to examine the role of the Administration’s programme of voluntary restraints and wage and price guideposts. The two-day meeting, pre-

sided over by the Secretary of Labour (Mr Wirtz) and including prominent business and union leaders, was asked by the President to submit to him its views on tax and monetary policy. Mr Johnson said that at present the nation was approaching solutions to the old problems of how to maintain full employment and sustain uninterrupted growth. “But as we near these historic achievements, we face new problems in the challenge of prosperity,” he said. “Disquieting signs are beginning to appear.” Mr Johnson said consumer; prices had risen 2.8 per cent in the last year and wholesale prices were up 4 per cent. There were indications of wage increases substantially above those in other years. Skilled labour was short in some industries and in some areas. “The consuming public—of which we are a part—is con-

cerned about keeping the cost of living down,” he said. The President said some people sought an answer in higher taxes, others urged wage and price controls, and a few looked to even higher interest rates. He wanted the committee to consider all those and their alternatives.