HERALD AND NEWS, KLAMATH FALLS, OREGON
SUNDAY, OCTOBER 13, 1957
here. When Will Infktien End?
Everv month since August of
iinS the cost of living in the
njnited States has gone up.
in the last decade, the govern-
Inent's measure of how much it
tosts to maintain a constant stan
ird of living has gone up in
(eight years and down in only two,
,1955 and 1H4.
To find a third year when the
index moved downward you must
go back to 1939 back before
World War II when the cost of
living was only about one-third
what it is- today.
President Eisenhower recently
called this relentless climb, only
oo obvious on uie large chart
Prices 1 1
nFolotvitut Vfars J
casr tvar rear jvy
i
f i Av
I World WtriT ,
! j
125 6 ,i. I
WAR I
A
too jr e - L'
; M i MrM
50- XSi-
251
tt'arofJ8J2
and in your daily shopping experi
ence, "our major internal problem."
Continuing inflation in time of
peace and falling government ex
penditures has caused some eco
nomists to argue that the current
nflation cannot be explained in
so-called "classical" terms. They
Lsay this inflation is something new
and that the classical cures will
mot work. This argument, however,
is by no means universally ac
cepted. In the debate now under
way inside the government and
put, here are three of the impor
tant questions and some of the
inswers:
Is the current inflation basically
Winerent from others in history?
All parties agree that at least
in duration, it not in makeup, the
current inflation is out of the
ordinary. Inflation has always oc
curred during wars, yet at no
lother time have prices continued
to rise long after the economy
returned to peacetime normality.
Heavy government spending, easy
money and demand outrunning
supply are the traditional ele
ments of inflation. At present
there is a federal budget surplus,
money nas Deen tight for months,
there are no shortages, yet prices
continue upward.
What are the causes of the cur
rent inflation?
The answer depends on who's
talking. Business leaders most
frequently argue that wages are
increasing faster than productivity.
uovernment statistics snow aver
age hourly factory earnings were
49 per cent higher in 1956 than
they were in the 1947-49 period;
output per man hour only 33.5 per
cent higher. The rising wages
caused increased overhead, man
agement says, the increased over
head forced higher prices, and, the
higher prices are called inflation.
To labor leaders, management
profits are to blame. David Mc
Donald claims that since 1945
"there have been 21 rounds of
steel price increase. There have
been nine rounds of wage in
crease. The price increases have
yielded the industry more than $3
in revenue for each Jl in wage
increases."
Economists, on the other hand
point to these and other factors,
most peculiar to the postwar de
cade. They include the national
commitment of both political par
ties to full employment; the ten
dency of wage hikes won by unions
in highly organized and highly ef
ficient industries to spread to non
unionized and less efficient labor
areas; the automatic nature of
a "round" of price increases in
big concentrated industries after
a "round" of price increases in
big concentrated industries after
a round of wage increases
(which at least bends the old
principle that prices are fixed by
the law of supply and demand);
the high value placed by society
today on labor "peace"; heavy in
dustrial investment in expansion;
the nation's booming population.
What can be done about infla
tion? The answer again depends on
whom you ask. The "classical"
economists feel certain the tradi
tional restraints tight money and
lower government spending
will bring inflation under control,
Many observers detect indications
of deflation right now: there have
been cancellations or postpone
ments of some expansion plans,
inventories are high in some
areas, home building is lagging
Dismissing these signs as only
temporary, those who see the cur
rent inflation a a new phenome
non expect prices in the long run
to continue upward. For this
school of thought, the big problem
is to see they don't climb too
fast. John T. Dunlnn a HnrvnM
University economist, savs he
would be glad to settle for a ss tn
35 per cent price increase hetwpon
now and 1975. Dunlop, who finds
more inflationnrv than Afintinn.
arv elements in mnrfpm AmArin
society, maintains the size of the
imure increase will in part de
pend on how great a value is put
on labor neare anrl full nmnfav-
ment. The less value, he says, the
more lntiation will be controlled.
Dunlop points out this would mean
strikes and lavoffs. and mnv uoll
be a price the nation will be un
willing to pay.
aome hold out the hnna Hint
recognizing inflation as a common
enemy, labor and management
will cooperate in holding the price
line with mutual sacrifices. Wal
ter Reilther anH thi Rier Ttn-iw
auto makers already have ex-
cnangea siaiements in this vein,
with little favorable result.
President Fisenhnwni- hac ctMoA
on labor and management and the
puouc 10 act responsibly; labor
and management bv slnwincr trip
wape-Drire snirnl. th nnhlin Kv
not spending "recklessly and add
ing iuei 10 mis name.
No solution, even universally
Long Narrow Room
Offers No Problem
How does one furnish a narrow
room so that there is still room
o walk and hold a conversation?
Decorator Pat Harvev. secretary
of the National Societv of Interior
f'esigners says "a narrow room
equires decorating ingenuity, but
t can be made livable and comfort
able as any other room if you'll
Lust make the effort."
Light flooring and light walls are
Inecessary to the scheme, she says.
ii wood paneling is used it should
pe light pine paneling, not heavier
woods. Ceilings must take to the
"gm iook loo, and a little blue in
a white nainted reilinp will lend
pieight to your room, she says.
raintings across the lone wall
Ptiay help create depth. A large
painting should be chosen if you d
achieve that effect. A mirror on
one of the long walls can help give
the illusion of a wider room too.
if it is the kind of room that
lean take a mirror."
Avoid heavy drapery materials
pn a narrow room," she advises.
particularly if the windows are
at the narrow end of m mvn. Thpe
ill offer a heavy effect, and give
appearance of closing m the
room even more.
Deep colors such as red, green
and blue should be avoided in dec
orating the very narrow room, in
favor of pastels or off-white, she
says. Delicate patterns in wallpaper
or fabrics may be used, but it is a
good idea not to use dramatic pat
terns in a small room, particular
ly in upholstery or drapery mate
rials. Small scale furniture adds width
to the room. Take advantage of
light dining room or living room
pieces such as those popular in
American, Danish and Swedish de
signs. These may be integrated into
a room with traditional furnishings
for a handsome effect, particularly
with Early American pieces. Pine
dry sinks, small Welch cupboards,
tuckaway tables may all add
charm to a narrow room without
overwhelming it.
It's a good idea not to put the
sofa under the window as this will
only give you additional wall space
to fill up, wnereas me winaow it
self may serve to break up wall
space.
"Picture windows, says mim
Harvey, are wonderful M km
If jtBl yJ&
l . CwLftfci is'?' - it
l fe y I
Vv It's growing r tupohiivf by tfi awiutt to run I
Y ledtiol, trote ond local ftovcrnnwnls. Each
minute now costs $216,666. Clock konds i
sK show hourly cos It lor 1940-48 - ff
Data Item Ton Foundation, Inc. f
disliked government controls
guaranteed to work. One of the
few certainties is that within the
next two years or so, H should be
come universally agreed whether
this inflation is of the historic
is type or something new under the
sun.
Ii present fiscal policies da not
halt inflation by that time, the
U.S. economy is working on prin
ciples different from the past.
(hnsiimer Price InJe I
I I rl I
I Commodities au$etVz&f)
as if- ; 1 ? 1 --
5ni m
U.S. City Awraae -Ul hem JHr- 49 "lOO
TTT
:t. I wm. I ., i, i t i . ' i 'iii .,i mi i .Tg iwon. m , i.iiin. t t.r t f-r
1913 1915 1920 192S )?3B 1935 1940 W --rr.-t90 WW Jbt.
enchantment to the narrow room.
The only trouble is that some peo
ple acquire a picture window that
does not give them a pretty out
look. Make sure you nave a lovely
view before you have a new pic
ture window put in your living
room or move into a nouse with
a large window that just overlooks
another house.
It may be a good idea too, if
the room is very tiny, to skip ex
traneous furnishings such as coffee
TOOK OVER
The Romans began shipping olive
oil to Spain more than 2,000 years
ago. The Spaniards found it so
useful for cooking, food and beauty
purposes that they planted their
own olive groves and, today, Spain
is the world's largest producer of
the oil.
table or end table unless these arc
absolutely necessary to the scheme
of things.
9
1
OVERCOMING NARROWNESS. Light green rubber floor
tiling and small icale furniture male this long narrow room
inviting.
&&&&
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