September 1, 1970
Page 30602
THE ADMINISTRATION'S INFLATION ALERTS
Mr. MUSKIE. Mr. President, recently the Nixon administration issued the first of what it hopes to be several periodic "inflation alerts" on the rate of price increases, in the economy. While I welcome this tentative Presidential initiative in the fight against inflation, it does more to tell us where we have been rather than where we are going.
I think we need standards in this area which will tell us the rules of the inflation fight. The President should institute a system of voluntary wage-price guidelines so business and labor know what are proper wage and price increases. If there are no specific standards on an industry-by-industry basis, how do we know if we are winning the fight? It is time to point out the specific causes of an inflation which robs groups already the most vulnerable on our society, the elderly, the poor, the blue-collar worker.
Not only do we not have a scorecard to measure the success of the administration's game plan, but we lack a schedule of its upcoming opposition. For example, I fail to note any reference in this inflation alert to the recent auto price increases, which certainly will provide pressure on the general price level.
As the alert was issued, unemployment continued its climb to 5 percent. This makes the matter of voluntary wage-price guidelines doubly important if we are going to take steps to resume economic growth without further inflation.
From where I stand, the primary tool the President has at his command is that of persuasion. He should pick up this tool, and use it.