Prices and wages spiral

Press, 13 July 1985, Page 18

Prices and wages spiral

Sir,—When Sir Robert Muldoon introduced controls on prices and wages and interest rates, it was not because he had abandoned traditional National philosophy, but because the action was necessary to halt an uncontrollable spiral. The present spiral requires equally severe measures. Allowing the free market forces of competition, greed and saturation, to control prices and interest rates is no more effective under this Government than it was under the previous one, especially under a tight money policy. The Government has already miscalculated on its predictions of the results of its policies and has lost credibility and the confidence of its supporters. It is not too late to return to traditional Labour policies unless the desire to self destruct rather than admit error overrides common sense — an attitude of mind that already applies to some of the present hierarchy.—Yours, etc., J. SHARP. July 11, 1985.