PAGE EIGHT
n W W fl
DEEP FREEZE?
o
THURSDAY, JULY 31, 1969
THE NYSSA GATE CITY JOURNAL, NYSSA, OREGON
By George Hagedorn
Chief Economist
National Association of Manufacturers
end. the reader may, or may
not, regard this as good news
We regard it as in any case
inevitable, and the quicker the
better.
This is not to say that any­
one can be happy about cur­
rent
or
prospective de­
velopments.
Even after the
current inflationary episode is
over, its painful effects will
linger on for years. Wage in­
creases negotiated in the
present overheated atmosphere
will impose cost increases when
the economic temperature is
much lower.
This leads to the beguiling
thought that maybe we can ease
the pain by wage and price con­
trols. Maybe we can even pre­
serve the boom that» way and
have the best of both worlds —
a booming economy without in­
flation.
But the freedom of wages
and prices to respond to market
forces is an essential part of
the mechanism which keeps our
economy in adjustment. Unless
controls operate
in such a
way as to produce about the
same prices and wages that
would occur without controls,
they result in chaos instead
of stability. Controls are either
pointless or disruptive.
We may be misled by the
thought that controls can be
applied selectively, that is, only
to the most flagrant cases of
inflationary excess. But if the
price of any item is to be
controlled.
And if any wage
rate is to be controlled, ob­
viously the prices of the things
wage-earners buy have to be
controlled. If you control any­
thing, you have to control prac­
tically everything.
The conviction seems to be growing, in some quarters, that
the wage-price spiral cannot be broken without some form of
direct government intervention. The solution sometimes pro­
posed is a government - imposed freeze of wages and prices,
either for a year or for an indefinite period.
We can understand why some people should feel this way, in
the light of what is happening, especially in the construction
industry. But we alsobelieve that this line of thought is seriously
mistaken.
The premise of the argument — the assumption that the
wage - price spiral must go on indefinitely in the absence of
direct government controls -- is wrong. And the conclusion
— that a government wage - price freeze is a practical and
effective solution to the problem — could lead to disastrous
departures in national economic policy.
There certainly is a problem,
and
nothing written here motion machine that will run on
is meant to deny that. The pro­ forever, unless the government
blem is especially apparent in sticks a shaft between the
the building industry. It is spokes. But perpetual motion
usually described as follows: is as impossible in economics
The fantastic wage increases as it is in physics. The self­
occurlng in the building trades reinforcing spiral described
lead to the expectation that cannot go on forever.
building costs will continue to
If the construction industry
rise indefinitely. And this ex­ is, in the first half of 1969,
pectation leads those who plan borrowing from the business it
any future building to try to get might have done in the second
it done as quickly as possible. half of 1969, we must ask what
The building that might have it will do for business after
been put up next year, will be midyear. If your answer is that
put up this year instead. The it will then be borrowing from
resulting inflated demand for the business it might have done
construction, and for construc­ in 1970, you are simply putting
tion labor, strongly reinforces off the problem to a later date.
the position of the labor unions The industry can’t continue in­
in demanding still higher wage definitely getting ahead of the
Increases.
The effect Is to underlying current need for its
confirm the belief that building output.
The spiral is self-
costs will continue to rise, and terminating rather than self-
to stimulate still further the perpetuating.
rush to get buildings up.
The construction boom is a
For the moment at least this phase of the capital - expansion
WAGE, PRICE FREEZE
is an accurate description of boom, which is a phase of the
what is happening. For the lon­ general inflationary boom. This
A freeze on wages and prices
ger run it may appear to be a column believes that the boom, seems deceptively simple. You
vicious cycle -- a perpetual - in all its aspects, is close to an just pass legislation forbidding
anyone to raise any price or
any wage rate, and you prose­
cute anybody who does so. At
first glance it looks as though
there would be no problem of
administration and very little
problem of enforcement.
But a freeze in this literal
sense is impossible, even for a
ALL YOU ROCKHOUNDS AND
brief
period.
Productivity
trends — the link between wages
OTHER VISITORS TO
and prices — vary from one in­
dustry to another and from one
time period to another. You
have to treat every one of the
i
millions of items produced by
the American economy as a
IF WE CAN HELP YOU
separate case. Every decision
of the price administrator would
have to be constantly reviewed
and frequently revised. Every
action would be controversial
IF YOU ARE DRY
-- with no clear standards for
setting the controversies.
Wage
and price controls
quickly become an administra­
tive nightmare — both for those
who have to live with them and
(COOL-CLEAN-COMFORTABLE)
those who have to administer
them. We have no doubt at all
of the sincerityof both the John­
son and Nixon Administrations
in their strong opposition to
wage and price controls. Al­
though there is at the momenta
small wave of public sentiment
in favor of controls, their ac-
WELCOME
THUNDEREGG DAYS
LET US KNOW
TRY OUR PLACE
OR BUY ONE OF OUR
BEER TAPPERS
•READY TO DRAW
• 214 GALLON SIZE
• FITS IN REFRIGERATOR
Ph. 372-3936
125 Main St.
Nyssa, Ore.
It’s a Pleasure
to have all you out-of-town
visitors with us! If you desire
a change from your home
cooking...
TRY
A & W Drive In
FOR
Delicious Sandwiches
SOFT DRINKS
our orders...in
COW HOLLOW - Mr. and
Mrs. Ray Strickland and their
guests, Mr. and Mrs. Henry
Anderson spent a recent week­
end at the Strickland cabin on
Lake Owyhee.
A' reunion of the Joe Callahan
family was held July 13 in Idaho
City. Among those attending
were Mr. and Mrs. Elza Nic­
cum, Mr. and Mrs. Marvin Nic­
cum and family, Mr. and Mrs.
Irvin Durfee.
Mr. and Mrs. Edward Topliff
and Rita Mae visited July 12
at the home of his parents,
Mr. and Mrs. Leslie *Topliff.
Recent Tuesday evening guests
of the Leslie Topliffs -were
Mr. and Mrs. Alfred Dades of
Parma.
Mr. and Mrs. Sam McConnell,
Mr. and Mrs. Leslie Topliff
dined July 4 at the Palomino
cafe in Ontario.
Danny Garner, son of Mr. and
Mrs. Dee Garner, recently fell
off a haystack, breaking an arm.
Roger Garner visited recently
at the home of his parents,
the Dee Garners, and returned
home July 13. He attended the
wedding reception of Marie
Durfee and Vance Woolley. Also
visiting at the Garner home that
day were her mother, Mrs.
Mamie Harrison, Mrs. Wilma
Garner and daughter, Michelle.
Mr. and Mrs. Shelton Raines,
Mrs. Suzy Walker and family
spent the July 4 weekend at the
home of Mr. and Mrs. Wayne
Lattin. The visitors were from
Elko, Nev.
K. E KERBY, M. D.
K. A. DANFORD, M. D.
Physicians and Surgeons
Dial 327-2241
HOURS: 9 to 12 noon & 2 to
5 P.M. - Monday through
Friday. 10 to 12 Saturday.
MAULDING CLINIC
L. A. Maulding, M. D.
Physician and Surgeon
Dial 372-2216
HOURS: 9 to 12 noon and
2 to 5 P.M., - Monday,
Tuesday, Thursday and
Friday. 9 to 12 noon, Sat­
urday. Weight labs. ‘‘By
appointment only” - Wed­
nesday.
DAVID W. SÀRAZ1N, M.D.
Physician and Surgeon
HOURS: 10 to 12 noon A
2 to 5 P.M. - Monday,
Tuesday, Wednesday, Fri­
day. 10 to 12 Saturday.
Phones: Office 372-3365
Residence 372-3173
Optomatrig»
DR. JOHN EASLY
387 S. W. 4th Avenue
Ontario, Oregon
— Phone -
FORM, RATE CHANGES
SIMPLIFY STATE TAX
tual imposition would quickly
create a large tide of disgrunt­
led citizens.
Spectacular wage increases
are a complication of the in­
flationary disease which make
its cure much more difficult.
But they are a result, not a
cause, of inflation. For several
years prior to 1965 — when
this inflation got underway —
wages rose approximately in
line with productivity.
Wage and price controls look
better at a distance than they
do up close. Both inflation,
and its cure through monetary
and fiscal policy, are painful
experiences.
Let’s not make
them worse by direct controls.
HELLO
WORLD!
Mr. and Mrs. Darryl Lee
Seuell of Nampa announce the
birth of their first child, Chris­
tine Marie. She arrived Sun­
day evening, July 20, 1960 and
weighed seven - pounds, three-
ounced.
Grandparents are Mr. and
Mrs. Harold Burnham of Fair­
view, Ore., Mr. and Mrs. E. M.
Seuell of the Big Bend area
near Adrian.
MALHEUR MEMORIAL
HOSPITAL, 1969
July 24 — To Mr. and Mrs.
Candelario Rodriquez of Ad­
rian, a girl.
July 25 — To Mr. and Mrs.
Carlos Hernandez of Adrian, a
girl.
July 26 — To Mr. and Mrs.
Darrell Keeton of Payette, a
girl.
July 27 — To Mr. and Mrs.
Jose Sifuentes of Nyssa, a girl.
July 27 — To Mr. and Mrs.
Don Young of Payette, a boy.
July 28 — To Mr. and Mrs.
Daniel Hernandez of Nyssa, a
boy.
The largest rummage sale
ever held in Nyssa, and one of
‘quality items* will begin at
10 a.m. Wednesday, August 6
and continue until most articles
are sold, it is announced by
Senior Citizens of the area.
Items to be sold are varied
and numerous and the sale will
be held in the former Western
Hotel, which until several years
ago, housed the Nyssa Furniture
HOLY ROSARY
firm.
HOSPITAL, 1969
Proceeds will go toward ob­
taining a permanent meeting
July 26 — To Mr, and Mrs.
place for senior citizens’ ac­
James Grunke of Nyssa, a girl.
tivities.
1he Old 1¡/mí/v
9
Your family pet may be treated as one of the family at home,
but don’t expect him to have the same acceptance as you do
in Oregon’s food establishments.
Oregon’s Department of Agriculture says it has nothing
against dogs and other pets but they do not belong in food
establishments.
This is not just a regulation imposed by the department.
It is in a food law passed by the 1965 legislative session and
was assigned to the department to enforce.
The big problem area is grocery stores and in some localities
stores are finding it difficult to enforce the law.
There are those customers
The department says the
who seem to think the family
dog is an exception, particularly store managers and operators
if he is small enough to be are as concerned about the
carried in the arms or in a pet problem as the department.
Not only must they comply with
basket.
But under the law, a dog, the law, but they are most
whether considered a member aware of consumer demands and
of the family or not, is still most customers will reject
classed as a pet and just as foodstuffs they think unsanitary
capable of contaminating food or contaminated.
as any other pet regardless
of size, says the Department
of Agriculture.
Stores having food and pro­
duce displayed outside also have
BY GLENDA BARNES-----
been warned by the department
Phone No. 372-2345
to take adequate precautionary
measures against contamina­
July 27 guests in the Irvin
tion by animals. Produce must Durfee home were his parents,
be protected so as to keep it Mr. and Mrs. Charles Durfee
of Caldwell.
out of reach of animals.
-oooooooooo.
COW HOLLOW
WELCOME
Rockhounds And All
Other Visitors.
LET US KNOW
How We Can Make
Your Stay Here More
Pleasant.
DROP IN
If You Should Need
“Ah, for the good old ways
when a teacher’s strike landed
on the seat of the pants!”
SANDED 4’x8’
1/4” Ext. A-C Shop
5/8” A-D
3/4” A-D
$2.95
$4.75
$5.50
ALL-EXTERIOR
WEATHERPROOF
3/8” Ranch Ply 4’x8’ $2.40
1/2” Ranch Ply 4’x8’ $2.75
5/8” 4’x8’ C-D
$4.35
PRE - FINISHED
WALL PANELING
From
$3.45
Various other kinds at low
prices.
NORTHWEST
PLYWOOD SALES
(Two Locations)
Caldwell - 2 mi. East of
Caldwell on Nampa-Cald­
well highway, (near Blac-
kers) Phone 459-4200.
Ontario - 1240 S. W. 4th
Ave., (Behind One Hour
Martinizing)
Phone 889-8839
Open 9-6 Mon. through Sat.
Ontario open Sun. 10-4
B&M EQUIP
AND
SERVICE PARTS
WELCOME
ROCKHOUNDS
Thunderegg Days
July 31, Aug. 1*2
1
Lubrication — Oil Change — Brake
Adjustment — Minor Tune-Up
DENNY'S SHELL SERVICI
PLYWOOD
Veterinarians
DR. JAMES REILLY
Parma . ... 722-5848
ESTABLISHMENTS
SALEM SCENE - BY EVERETT CUTTER
889-8017
TREASURE VALLEY
ANIMAL HOSPITAL
Phone 372-2251
DR. B. E. ROSS
Nyssa . . . . 372-3552
LAW SAYS NO PETS
ALLOWED IN FOOD
“I got the April 15 blues,
From my eyebrows to my shoes . . .”
-- Traditional American refrain.
Paying state personal income taxes is not expected to be
any less painful, but thanks to the 1969 legislature Oregonians
now will have an easier time figuring out their shares.
Effective retroactively to Jan. 1 this year, House Bill 1026
simplifies Oregon’s complex tax law by relating state and
federal taxable income. It is considered to be the most signi­
ficant change in Oregon’s personal income tax in its 40-year
history.
It does not moan that state taxes will be assessed as a flat
percentage of federal taxes paid, as is done in some states.
It does provide that federal taxable income as defined in the
Internal Revenue Code and reported on federal returns, less
certain deductions and plus some additions, is taxable income
for purposes of Oregon’s personal income tax.
Allowable deductions from
federal taxable income in
arriving at state taxable income $500 to a tax on income over
$5,000 of $345 plus 10 per cent
include:
-- Amount of any federal of the excess over $5,000.
New rates are intended to
income taxes actually paid by
the taxpayer during the taxable collect the same total amount
year, less the amount of any of revenue as under the pre­
refunds or abatement of federal vious law, according to State
taxes paid or credited to the Department of Revenue esti­
mates. There can be individual
taxpayer.
— Certain retirement in­ tax liability increases or de­
creases, however, even though
comes.
-- Interest or dividends on the state says it will collect
obligations of the U. S. and no additional revenue.
Estimated personal income
its territories and possessions
tax
revenue to the state in the
exempt from state taxation.
Additions to federal taxable 1969-71 biennium is expected to
be $455 million.
income include:
Another measure passed by
— Amount of any Oregon
income taxes deducted on the this year’s legislature, House
taxpayer’s federal income tax Joint Resolution 3, will be put
return for the taxable year, to a vote of the people at the
less any refunds or abatement November, 1970 general elec­
of Oregon income taxes paid tion.
It wouldamendOregon’sCon-
or credited to the taxpayer.
-- Interest or dividends on stitution to permit the legisla­
obligations or securities of any ture in the future to enact laws
foreign state or political sub­ to automatically adopt changes
division of any foreign state. in the federal Internal Revenue
-- Interest or dividends on Code.
obligations of any authority,
Elza Niccum went to Grand­
commission,
instrumentality
view, Idaho recently to take
and territorial possession of the
Marie’s horse to her. She re­
U. S. which by the laws of the
cently movedbacktothat mining
town. Recent visitors at the Nic­ U. S. are exempt from federal
income tax but not from state
cum home were their grand­
income tax.
children, Michelle and Peter.
The revised law also enacts
While here theycelebratedtheir
new rates for Oregon taxpayers,
birthday anniversaries. Their
running on a scale from 4 per
father, Marvin, who recently
cent of taxable income under
received his Master’s Degree
at Pocatello, came after them
and they all returned home July
13.
By Senior Citizens
Physicians
Ontario
BY GLENDA BARNES
Phone No. 372-2345
Rummage Sale Set
Professional
Directory
and Surgeons
OLYMPIC
OOOOOOOOOO,
COW HOLLOW
DENNIS FOWLER, Owner
101 North Main St.
Nyssa, Oregon
Phone 372-3990
Thunderegg Days
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May Your Visit Here Be So I
I
Pleasant You’ll Want To
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Return Often, And
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About Us And Our Area.
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105 MAIN STREET
PHONE 372-3544
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NYSSA. . .OREGON
J
VISITORS...
Tell Your Friends
Nyssa Ins. Agy.