FRIDAY. MAY: 25. 1962
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Public Interest
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E i os t of the comments re- unions are not absolute, but
- garding the controversy over ) relative. Like all our freedoms,
"E. steel prices have tended to miss they are to be exercised with
• the essential issue. The ques- due - regard for the freedom of
t Ulan is not whether, in' general, others and for the public
E companies have a legal right -welfare.• Thus, the government
to: raise prices. Ther have, of has ftstricted the right of
= course. unionslo strike in cases where
# „ ,The question concerns rather the public health or safety is
E the wisdom of raising steel endangered. ,:> •
F.. prices at this time, whether
age-Prica Concern ~
F_-. - from the point of view of the i ..
i companies, of their; employers The previous administration,
e or , of the public. ?It deemed as well as the present adminis-
E unwise, the issue tiirns on the ' tration, concerned itself with
LI consequences of such unwisdom wage-price relationships in the
@ fOr these three groups. , steel industry. In 1959, for ex
• llt continues to be argued, to . ample, President Eisenhower•
be sure, that prices are econ- urged both the companies and
=•
E omic matters, to be determined the 'union to follow a policy of
, E -
. bY market forces alone. Actual- "restraint" in the interests of
' E ly. Steel prices, like the prices a "non-inflationary" settlement.
•of any product produced by a It is true that, when negOtia
•E". '4nall number of large comps- tions !broke down, the govern
= nies, are policy decitions in the ment; did not then take im--
= making of which rriarket con- mediate action. But when it be
ff• ditions are considered but not came evident that a bitter:and
5' passively accepted, protracted strike was in pro
-4.. Such a decision - is made in
,gress, the Taft-Hartley Act was
• the first instance by a leading invoked to halt it temporarily.
:z - -: company and is usually fol- Later, when it appeared that
. lowed by tie remaining corn
=it might : resume,Vice President
ponies. If ifdt, - it is reversed.
r= E - Nixon and Se cretary Mitchell
= - No 'Political Vacuum' intervened and, armed with the
= ,
=
Such decisions are not made threat of Congressional action,
= '
virtually dictated the terms of
,Pf in a political vacuum; more- . a settlement' of. the 116-day
cal
•:.-.• over, they usually have politi- .
strike.
= consequences. In the writ-
• E er's opinion, it would be politf- The p
re resent. administration
has diffed primarily from the ,--
catty irresponsible to ignore
1-.. anticipated corisegueines or to preceding one not in its gen
-74 Seek to guard against•u4nfortun- eral positiog with regard to
the problem, but in its prefer
-4 ate consequences. Atan earlier
F-- time, it 'was common to refer ence to press for desired co
to economics by the somewhat operation ,before rather than
-..E. broader I and .more apt term, after an impasse had been
---= "political economy." reached. Hence the "guide
=• I The government of th e posts" laid down in the Presi-
E'United States is directed by
= dent's . Economic ' Report for
E the EmploYment Act of 1946 to 1962. Hence the activity of Sec
= use "all practicable means" retary Goldberg .in trying to
- E consistent with our institutions keep negotations going. And
!'to promote maximum produc- hence the measures taken= by
E- tion, employment and purchas- the. President-when, following•
g. ing power.' . an apparently successful,. out
@ I It was this law which estah-: come; the steel price rise was
E . lished the President's Council announced.
•of Economic Advisers. Each . Questions on Interventio n
§ year since 1946, with the help .. •
=of its staff, the Council has It can be argued that less
= E --- Prepared the Economic Report action intervention in the early
.of the President. Likewise, it stages would , have been pre
-M has worked closely in matters ferable. It can also be argued
E of national economic policy that, , rather than act on his own ;
c"with the Joint Economic Corn-
the President should have turn
=. inittee of the Congress: also ed
,to Congress. -
5 established by this law, bUtßut such arguments Come
E originally under a slightly dif- 'down to the issue of the wisdom
..g: ferent name. I or unwisdom of alternative
=:, The administration's moves .courses of action. They do not
ff. during the 1962 steel negotia- - support a policy of inaction,
_'tions arid following the steel' much leSs the concept of an
=
price decisiori should be viewed' absolute and unvarying right
In ; the light of these develop- of conmanies or unions to make
E:rnents. I decisions without, considering
0 ', • The rights of - '
companies and the public interest
1 - 4
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THE DAILY COLLEGIAN". UNIVERSITY PARK. PENNSYLVANIA
lIIMERIM
Reprinted with permission from the Philadelphia Inquirer
What's Going on Hero?"
.By ARTHUR H. REEDE
Professor of Economics
Pricing
The writer is not blind to
the problem faced by the Amer
ican steel industry. Much of its
equipment is outmoded and
therefore at a "disadvantage
When competing with the prod
duct of mills rebuilt since 1945 ,
in war-ravaged 'nations.
But how is this situation im
proved if one raises' the price
of the product of an old wire
or pipe mill competing with a
new one? The administration's
policy of speeding moderniza
tion by more generous tax
policies, especially as regards
depreciation, seems much bet
ter adapted . to meeting this
problem.
Is it wise to raise prices at
a time when there is extensive
unutilized capacity and wide
spread unemOloyment7 Or at
a time when the demands of
defense production remain
high, and when we are losing
gold to other nations? Or at a
time when, however tacitly,
union' representatives have
been given to understand that
a "non-inflationary" settlement
is desired and accordingly have
agreed to the most moderate
contract since the end of World
War II?
Differences' on Details
There is room , for honest
r i
dif
ferences as to he precsei de
tails in these otters. Some
economists would admittedly
favor a minimum of govern
ment intervention in them. In
the mixed ecom!my of the '6o's.
however, and especially while .
the cold war continues active.
a- majority of economists will
be concerned about "non-clas
sical" or "cost-push" inflation,
and, like a. majority of our
people, will favor an active
interest on the part of our
government .in economic sta
bilization.' . •
It is a mistake'to conclude
that the administration has any
plans for( formal price control.
It is interest in evoking, both
on the part of Management and
of Labor, a greater amount of
consideration of the public's
interest in, economic growth
with a minimum of inflation.
The President expressed such
views with ,considerable forth
rightness in' his recent address
at the convention of the United
Auto Workers.
Contrary to a widespread im
pression. he did not cling dog
matically to higher productiv
ity as an exclusive guidepost
for 'wage acljustrtients, but took
account of those differences in
situations which we often call
"wage inequities."
•liit.til
The staff of News and Views, a
publication of the College of Home
:Economics, will hold a bake sale
in the Home Economics lobby.
Ronald Green. professor of geo ,
physics ;at the University of•Taii
mania, t ill speak on "Geophysics
in Australia" at the - 11Iineral In
dustries! Colloquium at 3:45 p.m.
in the M.I. auditorium.
Student 'Encampment
Applications for the fall Stu
dent Encampment to be held Sept.
12-14 are now available at the
Hetzel Union desk and must be
returned there tomorrow.
Agricultural Economics
sion, 1-5 p.m.. HUB assembly
room.
STRAW
BEER-CAN HATS
Special SI.BO
PARISH'S
Campus Shopping Center
113 S. GARNER
't•Zrif7 ,l l , . , :or.
'
TODAY ON CAMPUS
Bake Sale
Colloquium
Meetings
° iJ
O 0 0 ,
0 0 0
90 0 U
VU •
THAT BREAK THE CAMEL'S BACK
Summer vacation is a two way trip, so, why
load yourself down like a beast of burden?
Remember, it's the last straw that breaks the
camel's back. Be bright! Travel light! Store all
of your bulky winter wear in one of our jumbo
storage boxes. Fill it—we'll.insure the contents,
dryclean everything - and put all in the safe.
keeping of our storage vault. In the fall, each
item will be pressed and ready to wear when
•
you call.
Not a cent required until after vacation, and
then only a penny or two a day for 'storage
plus our standard cleaning charges. Stop at
the nearest Balfund store for complete details.
Agricultural Extension cof fee
hour, 2-3:30 p.m, HUB main
lounge.
Gamma Sigma Sigma, 8:30 and
8 p.m., 105 Armsby.
Inter-Varsity Christian Fellow
ship; 7:30 p.m.. 11l Boucke.
Taylor Accepts Position
Hugh Taylo r. assistant Oro
tessor of geochemistry. has ac
cepted a position as an assistant
professor of geology at the Cali
fornia Institute of Technology.
Pasncleha, Cal.
His resignation is effective June
30.
Taylor has taught here since
February 1961. Prior to that time
he was an assistant professor at
the California Institute of Tech
nology far a year and a half.
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