Business tides the newsweek era of henry hazlitt

Business Tides The Ludwig von Mises Institute dedicates this volume to all of its generous donors and wishes to thank these Patrons, in particular: Dr and Mrs George G Eddy Hunter Lewis Everett C Nelson James M Rodney Robert J Stewart Harvey Allison Anonymous John H Bolstad J Robert and Rita Bost Mary E Braum John Lucius Buttolph, III James R Cook Mr and Mrs Jeremy S Davis Tony Delserone Robert D Fellner Mr and Mrs T.J Goss Bill Haynes James D Heiple Richard J Kossmann, M.D Leopoldo Leyendecker Patrick T Mahon, Jr Frederick L Maier Paul F Peppard Sheldon Rose Charles S Rowe, Jr Jeffrey S Skinner Mr and Mrs Quinten E Ward Dr Thomas L Wenck Mr and Mrs Walter F Woodul, III Business Tides The Newsweek Era of Henry Hazlitt Compiled by Marc Doolittle Introduction by Paul Charles Milazzo LvMI MISES INSTITUTE © 2011 by the Ludwig von Mises Institute and published under the Creative Commons Attribution License 3.0 http://creativecommons.org/licenses/by/3.0/ Ludwig von Mises Institute 518 West Magnolia Avenue Auburn, Alabama 36832 mises.org ISBN: 978-1-61016-203-6 Contents A Note from the Compiler by Marc Doolittle xxv Introduction by Paul Charles Milazzo xxvii 1946 How ‘Stabilization’ Unstabilizes New Ironies of Price Control Inflation, Deflation, Confusion Price-Fixing Brings Bottlenecks Meat and the Speed of Decontrol Squeezing the Price Balloon Leonard Ayres on Business Cycles The Consequences of Decontrol Repeal Anti-Employer Legislation How to Taper Off Rent Control 10 What’s Wrong with Our Labor Policy 11 Inviolate Rights—For One Side 12 Twenty Labor-Act Revisions 13 The New CIO Wage Drive 14 1947 15 The ‘Purchasing Power’ Theory 17 The High Cost of Judicial Legislation 17 How to Reduce the Budget 18 ‘Stabilizing’ the Economy 19 The Fruits of Foreign Lending 20 They Are the Workers’ Corporations 21 Boom in Mexico 22 Mexico’s Oil and Export Problem 23 Chinese Handwriting on the Wall 23 How England Got That Way 24 ‘Planning’ vs the Price System 25 Foremen under Judicial Legislation 26 Six Principles of Foreign Aid 27 High Taxes vs Incentive and Revenue 28 Our Fiscal Irresponsibility 29 The German Paralysis 30 Switzerland as a World Mirror 31 France on a Quiet Volcano 32 Belgium: Experiment in Freedom 32 Austerity in Holland 33 The Middle Way Swings Left 34 England vs the Price System 35 v vi Business Tides Why Europe Is in a Mess 36 Why Living Costs Have Risen 38 Subsidizing Planned Chaos 39 The New Labor Law 40 Mr Truman Invited Strikes 41 Consequences of Rent Control 42 The World’s Santa Claus 43 Telling Prices What to Do 43 The Midyear Economic Report 44 A Pro-Labor Law 45 The Myth of A Dollar Famine 46 The Bankruptcy of ‘Planning’ 47 A Modern Corporation Reports 48 The Fund vs World Recovery 48 Why Not Also Capital Day? 49 Lenin Was Right 50 The Profiteer Hunt Is On 51 How Much Does Europe Need? 52 Europe’s Four-Year Plan 53 The Drive against ‘Gambling’ 53 Are Profits Too High? 54 The Dilemma of the Marshall Plan 55 Who Told Us What? 56 Export Demand Lifts Prices 57 Must We Subsidize Socialism? 57 Back to Police-State Controls? 58 Cheap Money Means Inflation 59 Can We Buy Off Communism? 60 Our Inflationary Bond Standard 61 Inflation Has Two Faces 62 1948 63 The Uncalculated Risk 65 A Century of Communism 65 Blueprint for Disruption 66 Marshall Plan Pro and Con 67 How to Get Rid of Rent Control 70 France at the Crossroads 70 Significance of the Break in Prices 71 Inconsistencies of European Aid 72 Who Advises the Advisers? 73 Communism and the Marshall Plan 74 For a Customs Union 74 The Cost of ‘Soaking the Rich’ 75 Steel as a Scapegoat 76 Fallacies of the Third Round 77 To Improve the Taft-Hartley Law 78 Britain’s Collectivism vs ERP 78 An Anti-Inflation Program 79 How Not to Cure Inflation 80 The Fallacy of Exchange Control 81 Rewarding Railway Strikers 82 Contents vii Price Fixing into Famine 82 The Incubus of Exchange Control 83 The GM Wage Pattern 84 Who Started the Third Round? 85 How to Combat Communism 86 Ordeal by Planning 87 Republican Platform Economics 87 Dangers of Dollar Diplomacy 88 Collectivism on Relief 89 Democratic Platform Economics 90 The Phony War against Inflation 91 Will Inflation Stop Inflation? 91 Dollar Shortage Forever 92 Hypocrisy about Inflation 93 A Bear by the Tail 94 Repressed Inflation 95 Does Stalin Want War? 96 The Ethics of Capitalism 96 The Fetish of Bond Parity 97 Bond Parity without Inflation 98 Suppressing Free Markets 99 Cheap Money Causes Inflation 100 Cripptic Economics 100 Texas Grows and Votes 101 How Free Will Our Economy Be? 102 Where Was the Opposition? 103 Pitfalls of Forecasting 104 Meat and the Price System 104 Exchange Control in Peru 105 Exchange Control vs Peru 106 The Myth of Dollar Shortage 107 Are Profits Too High? 108 1949 109 We Impose Collectivism 111 Rent Control in France 111 Paradise on a Platter 112 Balance Whose Budget? 113 Our Discompensated Economy 114 Planned Unemployment 115 ‘Planning’—Ah! Magic Word 115 ‘Me Too—But Not as Much’ 116 What Are We Trying to Do? 117 The Case for Private Loans 118 Rent Control vs Housing 119 4,000 Years of Price Control 119 Sense Instead of Dollars 120 Military vs Economic Aid 121 Whose Bold New Program? 122 Bankruptcy of the Welfare State 123 The Welfare State Runs Wild 123 Legally Certified Monopolists 124 viii Business Tides Salvation through Squandering? 125 The Right to Strike 126 Our Irresponsible Budget 127 Arms and the Money 127 World Statism in Wheat 128 What Are We Paying For? 129 The Ideological War 130 Private Enterprise Regained 131 Self-Perpetuating Pump Priming 131 The Folly of Point Four: I 132 The Folly of Point Four: II 133 More Inflation to the Rescue 134 Forcing a Fourth Round 135 The Economics of Arms Aid 135 Wrong Diagnosis, Wrong Remedy 136 Legislating Unemployment 137 When Government Fixes Wages 138 Abolish Exchange Control 138 Collapse of a Trick Solution 139 The Case for Capitalism 140 Camouflaged Fourth Round 141 The World Monetary Earthquake 142 Fourth Round in a False Face 143 Illusions of ‘Social Security’ 144 Power of Industrywide Unions 145 Devaluation Instead of Freedom 145 Collectivism Marches On 146 Union Monopoly vs Capitalism 147 What ‘Monetary Management’ Means 148 Gold Goes with Freedom 149 Instead of ‘Integration’ 149 In Praise of Paper 150 The Compensatory Budget 151 Voices for Freedom 152 1950 155 If Foreign Exchanges Were Freed 157 The Future of Foreign Aid 157 The Forgotten Taxpayer 158 Free Trade or State Domination? 159 Our Irresponsible Budget 160 Take out the Goat 161 Fifty Billions for Tribute? 161 Future of the Marshall Plan 162 The Needless Crisis in Coal 163 The American Giveaway Mania 164 Where Do We Go from Here? 165 That European Payments Union 165 Rent Control Forever? 166 How We Subsidize Collectivism 167 Global Spending Forever? 168 How to Buy More Unemployment 169 Contents ix For a Responsible Budget 169 How to Tell a Totalitarian 170 Self-Perpetuating Rent Control 171 The Giveaway Mania Grows 172 The Fairdeal Family at Home 173 Toward State-Managed Cartels? 174 Salvation through Spending 174 Drought Fighting in a Flood 175 Who Are the Isolationists? 176 Free Trade or Coercion? 177 Planning for a ‘War Economy’ 178 A Bad Tax Bill 178 The Inflation in Housing 179 Program for the Crisis 180 War Measures—Or Hysteria? 181 The Fraud of Price Control 182 Transform EGA 182 Some Notes on War Taxes 183 Sham Fight against Inflation 184 Dilemmas of Price Control 185 Shadow-Boxing with Inflation 186 When Prices Go into Politics 187 The Need for Credit Control 187 Communism Imitates Capitalism 188 Canada Takes the Lead 189 ERP Reverses Its Aims 190 Credit Control at the Source 191 The Great American Giveaway 192 ‘Bankruptcy’ Is Here 192 On Taxing ‘Excess’ Profits 193 ‘Full Employment’ as Inflation 194 Gray Is for Giveaway 195 This Is the Peace We Bought 196 More Inflation Ahead? 196 Total Muddleization 197 1951 199 The Price-Control Straitjacket 201 How to Stop Inflation 201 Inflation Has One Cure 202 Mr Truman’s Wrong Remedies 203 An Irresponsible Budget 204 Fighting Fire with Gasoline 205 Price Control Means Politics 205 Inflation Plus Usurpation 206 Abolish the RFC 207 How to Cause a Famine 208 Inflation Is Government-Made 209 The CED on Price Controls 209 Point Four Is Growing Up 210 International Statism Rampant 211 Is Price Control Necessary? 212 x Business Tides Controls Create Inflation 213 Priorities vs Price Control 214 Gold Standard vs Inflation 214 We Have Asked for Inflation 215 Why Price Control Should Expire 216 End Price Ceilings—and ‘Parity’ 217 More Powers—or More Curbs? 218 The Future of ‘Fair Trade’ 218 Foreign Giveaway Grows 219 Price Controllers in a Panic 220 An Anti-Inflation Program 221 ‘They Told Us Then ’ 222 The Cause of Currency Chaos 222 Price Fixing as Red Herring 223 Government: Plan Thyself 224 Iran vs Point Four 225 The Dangers of Profit Control 226 Why the New Controls Act Is Bad 227 Off to the Races 228 Congress’s Monetary Duty 229 Inflation for Beginners—I 229 Inflation for Beginners—II 230 Inflation for Beginners—III 231 Inflation for Beginners—IV 232 Inflation for Beginners—V 233 The Real Problems of France 234 To a Mitigated Socialism 235 Britain’s ‘Third Crisis’ 235 This Is Where We Came In 236 Chaotic Spending and Taxing 237 How to Denationalize 238 Who Is Mislabeling What? 239 How to Depoliticalize Money 239 Day of Disillusion 240 ‘Arms’ or ‘Economic’ Aid 241 Guns, Butter, and Disruption 242 A Budget Out of Control 243 Canada Breaks the Ice Jam 243 1952 245 The Limits of Taxation 247 More about Arms Aid 247 A Ceiling on Spending 248 One Message Too Many 249 ‘Where Would You Cut?’ 250 Delusions of ‘Productivity’ 251 Calling the Market Black 252 Price-Control Follies of 1952 252 Footnote on ‘Statism’ 253 The Lull in Inflation 254 Case against Price Control 255 Are These Handouts Necessary? 256 884 Counter-cyclical fiscal action, 151 Counter-cyclical policy, 313, 346, 750 Counter-cyclical strategies, xxxv Credit controls, xxxix, 187, 191, 390 need for, 187 selective vs general, 416 selective, 460 Credit creation, inflationary, 392 Credit rationing, 460 Credit restrictions, general vs specific, 534 Cuban missile crisis, 730 Currencies convertibility of, 296 par value for, 24 Currency controls, 46, 49, 50 Currency debasement, 148 Currency devaluations, xlviii, 142, 157 Customs union, 33 consequences of, 74 requirements for, 74 Debate topics, proposed, 604 Debt ceiling, 330 raising of, 319 Debt-to-GNP ratios, 805 Decontrol of prices, consequences of, Default by inflation, 805 Defense budget, 607 Defense expenditures (data), 421 Defense expenditures, international data for, 312 Defense Production Act, 186, 187, 218, 227, 229 Defense spending, 293 data by country, 248 Deficit reduction, 369 Deficit spending, 736, 833 and inflation, 508 as cure for unemployment, 508 effects of, 125 Deficits and inflation, 735 and unemployment, 518, 835 as policy, 748 perpetual, 813 the cult of, 835 and unemployment, statistical relationship between, 753 Deflation, fear of, 628 multiple meanings of, 629 specter of, 216 Business Tides Delegation of powers, 411 Demand, deficient, 794 Democracy and foreign aid, 57 Democratic Advisory Council (DAC), 495 Democratic party, inflationary policies of, 495, 583 statist measures by, 625 economic policies of, 90, 271 platform (1964), 817 Denationalization, 238, 566 Depreciation, 55, 713 accelerated, 642 and inflation, 642 and tax revenues, 642 and taxes, 329 rules and growth, 732 write-off rules for, 706 Depressions, prevention of, 313 Deterrence, need for, 607 Devaluation, 140, 486 Dictatorship, 561 Discount rate, 94, 184, 857 changes to, 441 reduction of, 497 Dividends, double taxation of, 178, 381, 713, 767 Dneprostroi Dam, 419 Dollar decreasing gold content of, 669 defending the value of, 651, 756 falling purchasing power of, 517, 720 maintaining confidence in, 638 policies to weaken, 635 reserve role of, 670, 841 value of, 635 value of, how (not) to preserve, 687 Dollar exchange standard, 841 Dollar gap, xlvii, 172, 279 Dollar reserve system, 850 Dollar shortage, 46, 51, 92, 107, 190, 296, 388 Dual economy, 671 Dutch East Indies, 33 East Germany, monetary reform by, 493 Economic (in)stability, 135 Economic aid, 220 conditions imposed on, 241 Economic bill of rights, 624 Economic Commission for Europe, 78 Economic Cooperation Administration (ECA), 107, 120, 129, 135, 149, 157, 164, 168, 177, 190 Subject Index Economic fallacies, 267 Economic fascism, 853 Economic forecasting, 323 perils of, 424 pitfalls of, 104 Economic freedom, results of, 357 Economic growth, xxxii, 327, 437, 864 absolute vs relative, 559 and inflation, 594, 698 and tax rates, 673 causes of, 686 how to encourage, 641, 642 planned or free, 726 policies promoting, 614 rates of, 560 socialism antithetical to, 721 target rates for, 726, 749 use of as election slogan, 631 Economic illusions, 236 Economic indicators, leading and lagging, 585 Economic Opportunity Act of 1964, 814 Economic output, civilian vs military, 526 Economic planning, bipartisan, 715 by whom, 116, 725 in Europe, 53 in Germany, 30 Economic policies, irresponsible, 627 Economic progress, sources of, 267 Economic prosperity, causes of, 125 Economic quackery, 710 Economic regulation in the United States summarized, 102 Economic Report of the President (1964), 793 Economic Report of the President (1966), 860 Economic Stabilization Administration, 187, 197, 220 Economics of mobilization, 214 Economics, proper method for, 724 Education, Soviet and American, compared, 496 EGA, 133 EGA funds, conditions placed upon, 182 Egalitarian philosophy, 35 Eggs overproduction of, 573 price supports for, 573 Egypt, foreign aid to, 419 Egypt-Israeli relations, 458 Ekistics, 593 Elderly, needs of, 612 Election laws, proposed changes to, 861 Elections (1954), commented on, 358, 360 885 Employment Act of 1946, xxxiv, 498, 557 results of, 603 Employment as provided by entrepreneurs, 765 effects of inflation on, 654 Engine of inflation, Federal Reserve as, 203 England, 24 coal nationalization in, 25 coal shortage in, 24 economic planning in, 25 economic status of, 325 political thinking in (1959), 585 post-war economic policies in, 35 price fixing in, 25 trade with and aid to, 302 Entrepreneurship, 765 Envy, 288 Escalator clauses in wage contracts, 514, 515, 516 Europe American economic policies towards, 546 American trade with, 326 economic progress of (1959), 587 economic situation in (1958), 546 inflation in (1964), 806 military aid to, 240, 247 post-war mess in, 36 European Clearing Union, 168 European Coal and Steel Union, 174 European Common Market, 464, 632, 682, 693 U.S trade policy towards, 702 European Economic Community (EEC), 540, 824 American attitudes towards, 540, 730 members of, 730 possible problems for, 543 problems of, 529, 764 vs EFTA, 764 European economic crisis, causes of, 67–69 European Free Trade Association (EFTA), 540, 693, 730, 824, 828 European integration, 149 European Monetary Union, 168 European Payments Union, 168, 192, 437 consequences of, 165 proposed, 165 European rearmament, financing of, 121 European Recovery Program (ERP), 69, 78, 89, 117, 125, 128, 157, 167, 172, 177 European trade policy, 554 Excess profits tax, 184, 196 effects of, 286 Excessive wage rates, unemployment caused by, 137 886 Exchange controls, xxxix, xlvii, 99, 138, 139, 279, 296, 452, 767 effects of in Britain, 83, 100 fallacies of, 81 Schachtian network of, 84 Exchange rates dual, 99 fixed vs floating, 71, 189, 487, 797 fixed, 22 floating, 356 free vs floating, 297 official vs unofficial, 430 Excise taxes reduction of, 178 vs rationing, 184 Executive usurpation, 53 Export-Import bank, 38, 133, 168, 181, 226, 351, 361, 420, 591 lending, follies of, 359 Exports, effects of on domestic prices, 57 Expropriation, 437 Extremism, 812 Fair Deal, 343 Fair Labor Standards Act (1938), xlii, 17, 863 Fair Trade, 218 Fairdeal Family, xxx, 173 Famine caused by price ceilings, 217 socialist policies causing, 208 Farm income, parity of, 124 Farm policy, 277, 398, 422, 428, 468 proposed, 405 Farm price parity, 398 Farm price supports, xxxvii, 169, 310, 344, 412, 716 bad effects of, 774 effects of, 468 problems from, 418 Farm prices, 344 Farm programs, proposed changes to, 399 Farm subsidies, 123 Farm surpluses how to end, 626 proposed solution for, 592 Fascist economics, 261 FDA, 723 FDR, plants seized by, 262 Featherbedding, xliv, 745, 849 Federal aid to schools, 405 Federal budget, xxxv–xxxviii, 250, 310 balancing of, 395 balancing through taxes, 562 Business Tides growth of, 409 irresponsibility of, 160, 204 peace time size of, 113 reduction of, 18 Federal deficit, monetization of, 857 Federal government, appropriate size of, 695 Federal Housing Administration (FHA), 360 Federal Power Commission, 830 Federal Reserve, 6, 59, 61, 79, 91, 94, 97, 100 credit restrictions by, 534 curtailment of, 259 independence of, 206, 239, 425, 457, 579, 857 Federal spending growth of, 312 reckless, 627 Financial aid from America, 53 Financial aid, fungibility of, 129 Fiscal policy, 28, 113, 127, 134, 158, 224, 295, 307, 308, 310, 351, 373 conflicting needs of, 857 creation of, 29 Fiscal responsibility, 29 lack of, 378 Fiscal revolution, 813 Flat tax proposed, 722 Food subsidies, 35 Forand Bill, 612 Foreign aid, xlvi–li, 39, 157, 161, 164, 168, 172, 192, 195, 208, 210, 219, 256, 268, 315, 316, 327, 419, 451, 452, 457, 609, 675, 781, 792 and communism, 60 and taxes, 475 arguments for, 410 as loans vs grants, 353 conditions for, 851 counterproductive results of, 522 creation of ill will by, 677 dilemma of, 281 discretionary, 461 effects of, 362 excesses of, 536 expenditures, 361 extent of, 363, 590 for socialism, 489 for socialist projects, 762 futility of, 523 government to government, 800 harm resulting from, 668 helpfulness of, 778 justifications for, 427 moral obligation to provide, 658 Subject Index new program for, 122 perpetuation of, 384 private, 475 problems with, 55 public vs private, 427 reasons given for, 420 results of, 664 six principles of, 27 socialist assumptions behind, 614 strings attached to, 489, 658 substitution principle for, 868 to Europe, extent of, 52 use of to fight communism, l used to strengthen socialism, 536 uses for, 240 vs communism, 67 vs private investment, 799 vs socialism, 65 Foreign arms aid, 311, 421 Foreign exchange controls, 157 Foreign exchange rates, pegging of, 55 Foreign investment tax on, 765, 775, 781, 792, 796, 836 government guarantees for, 133 private or public, 118 Foreign lending, 20 Foreign Military Assistance Act, 135 Foreign policy, 301, 452, 457, 458, 459 inconsistency of, 629 reappraisal of, 374 Foreign trade policy, 321, 350 Foreign trade, 279, 332 Foremen, unionization of, 26 Formosa, protection of, 374 Foundation for Economic Education (FEE), xxviii ‘Fourth Dimension,’ 402, 405, 461, 744 Fractional reserve banking, 669 France, 70, 111 economic status of, 324 exchange controls in, 485 foreign aid to, 281, 320 liberalization in, 176 monetary policies of (1958), 541 new constitution for, 541 post-war situation in, 32 price controls in, 236 problems of, 234 Free markets case for, 275 lack of belief in, 114 887 Free speech, denied by the NLRB, 833 Free trade vs state domination, 159 Freedoms Foundation at Valley Forge, 152 French Franc devaluation of, 485 revaluation of, 554 Frustrated inflation, Full employment, xli, 427 budget, 794 by monetary means, 393 policy, 175 policy, inflationary results of, 194 Galbraith-Lippmann-Dale thesis, 620 GDP, nominal vs per capita real, 431, 518 General Agreement on Tariffs and Trade (GATT), 385, 554 General Motors, 84, 85 German economic miracle (1948–58), 542–43 German hyperinflation, 628 German Mark, revaluation of, 657 Germany dismantling of factories in, 72 economic paralysis of, 30 ‘Getting rich by giving away stuff,’ 43 GNP and inflation, 553 arbitrary measures of, 749 measurement of, 553 measures, problems with, 533 national income approach to, 553 problems with, 553 vs welfare, 554 GNP growth rates, U.S vs Soviet, 533 GNP growth, responsibility for, 849 Gold convertibility of, 667 demonetization of, 648 hoarding of by speculators, 641 holdings of abroad, illegality of, 650 how to lose, 772 monetization of, 648 naivete of belief in, 585 outflow, 798 outflow, measures to reverse, 569 price of, 666 redemption of by foreign governments, 599 repricing of, 678 role of, 595 vs fiat money, 20 888 Gold exchange standard, 671, 840 Gold reserves, 640, 798 and free gold, 599 effects of inflation on, 834 inadequacy of, 619 loss of, 548, 635, 721 proposed elimination of, 595 proposed reduction of, 834 role of, 664 run on, 757 Gold standard, xlvii, li–lii, 140, 214, 233, 529, 667 benefits of, 339 devolution of, 669 equilibrating mechanism of, lii need for, 487 political basis for, 149 rejected, 775 restoration of, 679 return to, 149, 314, 339, 340, 345, 347, 665, 728 return to, steps proposed, 341 vs fiat currencies, 71 vs political money, 437 GOP monetary policy, 270 Government expenditures (data), 620–21 Government lending, wastefulness of, 383 Government power, arbitrary use of, 848 Government securities, monetization of, 863 Government spending, sources of, 402 Government, duties of, 755 Government, proper role of, 394 Government, unlimited, 817 Government-to-government aid, 164 Grain exchanges, margin requirements for, 53 Gray report (1950), 195 Great Society, 860 how to pay for, 852 Greenbacks, history of, 347 Gresham’s Law, 720 Guaranteed income for all, 798 Guaranteed wage, 382 Guatemala, economic policies imposed on, 802 Hammurabi, Code of, 119 Helmand valley, 420 High-powered money, creation of by the Fed, 837 Hi-Ho-Hum, fictional historian, 648 History and Marxism, 685 Hitlerian autarchy, 36 Holland, post-war situation in, 33 Hoover commission, 389 Household income, statistics for (1939–1951), 278 Business Tides Housing, government created boom in, 179 Hungary, revolt in (1956), 448 Ideas, role of, 130 Imperial presidency, role of, 708 Import quotas, evil of, 623 Incentive pricing, Incentives, 237, 322 Income and savings (data), 424 as a right, 808 averaging, 477 inequality, trends in, 260 policies, 810 Income tax and irregular incomes, 734 graduated, 867 increases in during WWII, xliv progressive or proportional, 761 progressive, 349 progressivity of, 788 rates (1953), 303 rates, 76, 380 withholding, xliv India famine and socialism in, 815 foreign aid to, 665, 762, 807 poverty in, socialist causes of, 807 Indo-China, war in, 354 Industrial policy, 266 Industrialization, excessive, 803 Inflation, xxxi–xxxii, 4, 11, 50, 51, 56, 57, 77, 83, 105, 108, 134, 175, 182, 186, 187, 201, 202, 205, 227, 249, 271, 373, 429, 431, 478, 640, 653, 660, 693, 718, 721, 747, 845 1939–59 (data), 613 ‘administered,’ 483 and business cycles, 328 and costs, 256 and full employment, 510 and investment, 864 and price controls, 91, 183 and unemployment, 449 as cure for recession, 520 as remedy for unemployment, 530 as taxation, 197 as the means to destroy capitalism, 865 as understood by Pres Truman, 80 as zero sum game, 628 blessings of, 274 caused by union activity, 481 Subject Index causes of and effects of, 59 causes of, 39, 100, 184, 209, 252, 480, 494, 863 cost-push, 480, 481, 613 creeping vs galloping, 488 creeping, 483 creeping, effects of, 563 curbing of in Europe, 265 dangers of, 462 demand-pull, 480, 481 discoordinating effects of, 801 dual effects of, 62 during the French Revolution, 59 effect of strikes on, 436 end of, 299 European and American, 803 expected vs unexpected, 483 expected, 563 exporting of by the U.S., 770 full employment from, 427 how to beat, 628 how to halt, 548 institutional causes of, 481 international (data), 479 measures against passed by Congress 1948, 93 measures against suggested, 91 measures against, 79 monetary, M1 vs M2, 531 moral aspects of, 614 or tight money, 479 policies creating, 619 political pressure for, 207, 426 price controls as remedy for, 213 program against, 221 protecting yourself from, 819 repressed, 175, 216, 263, 683 repressed, causes and cures, 95 responsibility for, 557, 860 Truman’s eight-point plan against, 91 viewed as a moral issue, xxxii vs deflation, 71 vs growth, 801 with wage and price controls, 483 Inflation for beginners, 229–34 Inflationary gap, 37, 216 Inflationary policies inevitable end of, 484 under Eisenhower, 315 Inflationary proposals, 354 Inflationism, 829, 838 the end of, 425 Interest rate ceilings, 574 Interest rate policy, 205 889 Interest rates effects of, 809 drivers of, 539 fixing, 854 structure of, xxxiv International aid, opportunity cost of, 132 International Bank for Reconstruction and Development (IBRD), 40, 168, 591 International Coffee Agreement, 751, 802 International Cooperation Administration, 489, 591 International Development Advisory Board, 210 International Development Association, 591 International economic institutions, proposals for, 284 International Economic Policy Association (IEPA), 868 International Finance Corp., 591 International investment, 437 protection of, 450 International Ladies Garment Workers, 712 International Longshoremen’s Association, 362 International Monetary Fund (IMF), xlvi, 20, 23, 38, 49, 70, 73, 99, 107, 142, 165, 189, 222, 244, 331, 386, 437, 591, 632, 647, 671, 800, 816, 828 contribution of to world inflation, 682 inflationary policies by, 728 Keynesian theories of, 223 members, inflationary policies of, 491 mock-gold system, 667 policies, consequences of, 487 promotion of controls by, 157 reform or dissolution of, 850 system, 775, 846 system, inflationary nature of, 777 the need to dismantle, 776 International organizations, weaknesses in, 681 International trade, 99 free or managed, 385 International Wheat Agreement, 128, 760 Internationalism, false, 632 Interregnum, presidential, 621 Intimidation, union rights to, 858 Iran, 322 seizure of oil properties by, 438 Iraq, overturn in, 531 Isolationism, xlvii Italy economic status of, 324 loans to, 797 recession in (1964), 806 Johns-Manville Corporation, 21 Johnson administration, economic problems faced by, 825 890 Johnson-Humphrey economic policies, 823 Jones-Costigan Act of 1934, 624 Kennedy administration first 100 days of, 663 initial economic policies of, 647 most urgent task of, 638 Kennedy-Landrum-Griffith Law, 610 Keynesian consumption function, errors of, 423 policies, 793 stimulus, 701 thinking, 358 Keynesian economics, xxxiii–xxxv, 125, 136, 174, 343 as promised by President Kennedy, 652 critiqued, 763 theory, 87, 305 Keynesianism, 748 as orthodoxy, 843 critics of, 843 Knowledge problem, 188 Kohler Co., NLRB decision for, 630 Korea, military defeat in, 201 Korean war, xxxiv, 178, 375 European contributions to, 182 proposed economic measures for, 180, 181 Labor Day, 49 Labor law (Kennedy bill), 568, 571 Labor law, 9, 126, 163, 558, 567, 568, 580, 582, 588, 589, 601, 609, 630, 669, 699, 735, 742, 745, 746, 770, 833, 842, 844, 849, 858, 870, 871 changes proposed to, 538 federal vs state, 384 historically reviewed, 704 needed revisions to, 591 powers sought in by President Kennedy, 672 reforms proposed to, 523 reforms proposed, 590 revisions to, 386 Labor Policy, 3, 11, 165, 269, 287, 307, 334, 364, 432, 501 and unions, xxl–xliv U.S., overview of, 262 Labor productivity and wages, 841 Labor relations, liberty in, 630 Labor union bosses, dictatorship by, 581 Labor unions lack of need for, 465 power of, 13 Labor violence, xliii Business Tides Laffer curve, anticipated, 76, 237, 322, 348, 352, 476, 562, 731 Lame-duck presidency, 621 Land reform, 614 as requirement for American aid, 851 Landrum-Griffin Act of 1959, xliii Latin American Bank, 591 Lea Act (“anti-Petrillo law”), 12 League of Nations, 40 Legal debt limit, raising, 192 Lend-Lease plan, 43 Lesinski bill, 126 Liberalism classical and modern, 403 modern, defined, 811 true, 812 Libertarianism, 404, 414 Libertarians, 812 Liberty bonds, default on, 192 Liberty, 604 suggested readings on, 442 Limited resources, unlimited wants, 173 Line item veto, 378, 381, 387, 467, 471, 473, 556, 602, 606 Liquidity preference theory, Keynesian, 539 Liquidity international shortage of, 816 required amount of, 839 Literary economics, 448 Logrolling, 382, 387 Loopholes, 733 Lustron Corp., 208 Machine tool industry, 286 Margin requirements, 534, 714 Marshall Plan, xlvii, 43, 49, 52, 53, 65, 67, 74, 78, 88, 89, 101, 106, 111, 121, 139, 143, 147, 159, 167, 177, 190, 192, 282, 327 European use of, 55 exploitation of by European countries, 120 extension of, 162 global, proposed, 161 goals of, 668 proposed changes to, 162 tapering off of, 157 unclear goals of, 117 Marxism, 288 and income taxes, 66 Marxist economics, 440 Maryland Drydock case, 27 Mathematical economics, 448 ‘Me Too—But Not As Much,’ 639 Subject Index Mea Culpism, 541 Meat, prices of, 6, 104 Medical drugs efficacy of, 723 safety of, 723 Medicare, 615 beginnings of, 612 Mercantilism, 653, 655, 788, 824 as promoted by J.K Galbraith, 637 Mergers and acquisitions, 818 Mexico foreign exchange balances of, 23 inflationary boom in, 22 oil production of, 23 Middle East foreign aid to, 531 oil reserves in, 531 Middle Eastern Fund, 591 Military aid, xlv, 89, 135, 220, 256 conditions for, 196 programs, 192 results of, 196 to Europe, financing of, 127 uses for, 129 Minimum wage, 85, 112, 137, 169, 656, 798, 808, 862 consequences of, 115 effects of increases in, 389 groups hurt by, 863 increases in, 45, 370 Mises-Hayek thesis, 435 Monetary and fiscal policy, 579 Monetary inflation vs price inflation, 378 Monetary management, 148 Monetary policy, 59, 182, 184, 186, 187, 191, 202, 213, 215, 218, 229, 239, 271, 293, 306, 416, 425, 426, 427, 441, 460, 497, 509, 611, 619, 663, 837, 857 contradictory goals of, 482 inflationary, 61, 333 international, 775 role of, 854 rules, 462 tightening of, 404 time lags in, 481 Monetary reform, 314, 816 Monetary theory, 229–234 Monetary transmission mechanism, 202 Monetary units, 657 Monetization of Treasury bonds, 61 Money supply constant or growing, 431 expanded, resting places for, 531 891 Money demand for, 839, 845 illusion, xli, 428, 464 multiplier, 509 supply of, 202 Mongol Hordes, invasion of Europe by, 301 Monopoly, 415 in labor markets, 416 Mont Pelerin Society, xxviii, 539, 587, 679, 680 Montgomery Ward, seizure of, 263 Moon, landing a man on, 666 Moral disarmament, 498 Moreell task force, 389 Most-favored-nation policy, 693 Mount Clemens Pottery case, 17, 26 Mutual Security Agency (MSA), 284 National Association of Home Builders, National Association of Manufacturers (NAM), 222, 494, 705 National Bureau of Economic Research (NBER), 844 National debt causes of, 622 ceiling, raising of, 533 default on through inflation, 192 discussed by Hume, 622 international data on, 491, 618 repayment of by inflation, 572 size and growth of, 617 ways to default on, 490 National Defense, 19 National Economic Council, proposed, 457 National emergency, 201 National Housing Act (1950), 180 National Industrial Conference Board (NICB), 117 National Industrial Conference Board, 55 National interest, 710 National Labor Relations Act of 1935, xl National Labor Relations Board (NLRB), xxxviii, 10, 13, 27, 40, 124 National Planning Association, 354 National Security Resources Board, 178 National security, 395 Nationalist China, inflation in, 274 Nationalization, xliii, 226, 259, 262 and strikes, 266 Natural gas, regulation of, 417 Nazism economic policies of, 261 seeds of, 614 892 Neoconservatism, xxxvii New Collectivists, 622 New Deal, 343 policies under Eisenhower, 371 Republicans, 442 ‘New economists,’ 862 New York City electrical workers’ strike (1962), 699 hospital strike (1959), 571 newspaper strike (1963), 746 overcrowded traffic in, 593 transit strike (1966), 858 New York subway, 869 privatization of, 565 profits of, 630 New York Transit Authority, subsidization of, 869 News as reported by the press, 849 Nixon and Dewey (1960), 634 Norris-LaGuardia Act, xliii, 13, 145, 266, 269, 487, 559 North Atlantic Treaty Organization (NATO), 219, 505 Office of Price Administration (OPA), xxxi, 7, 53, 58, 217 Office of Price Stabilization (OPS), 205, 217, 223 Office of War Mobilization and Reconversion (OWMR), 14 Oil fields, nationalization of by Iran, 225 import quotas for, 584 international market for, 584 Omni-competence, delusions of, 761 Opportunity cost, 113 Organization for Economic Cooperation and Development (OECD), 729 Organization for European Economic Cooperation (OEEC, later OECD), 111 Organization for Trade Cooperation (OTC), 385 Organization of American States (OAS), 633 Output growth, USA vs USSR, 525 Overtime pay, 390 and employment, 790 Packard case, 27 Paper money issued by the Continental Congress, 822 praise of, 150 Parity principle, 216 Parity, 217 Patents, medical, 724 Pay-as-we-go system, 212 PE ratios, 532 Peace dividend, effects of, 305 Business Tides Peenemünde, 496 ‘People’s capitalism,’ 440 Peronism, 802 Peru exchange controls in, 105, 106 foreign aid to, 522 Peruvian currency, floating exchange rate of, 157 Petroleos Mexicanos (Pemex), 23 Pharmaceutical industry, anti-trust action against, 676 Philadelphia transport strike (1943), racial aspects of, 826 Picketing as intimidation, 334 coercive, 559 Pilgrims, communism among, 131 Planning and economic controls, xxxviii–xlii Planning, long term, 275 Plymouth Bay Colony, 131 Point Four Program (1949), xlix, 122, 133, 168, 172, 203, 210, 225, 268 folly of, 132 Poland food riots in (1956), 435 industrial production in, 448 Political labels, power of, 826 Poor, economic policies to help, 747 Poorhouse socialism, 95 Positivism, 724 Post-war reconstruction, xlvi Potsdam Agreement, 72 Poverty and belief in communism, 778 and free markets, 60 how to cure, 664, 789 how to restore, 636 Johnson’s war on, 789, 814 Presidency, burdens of, 411 Presidential spending authority, 701 Presidential succession, 397,468, 499, 621, 625, 779, 780, 787 rules proposed for, 283, 285, 286 uncertainty from, 286 Presidential transition (1961), 649 Price and wage controls, 218 opposed by the AFBF, 215 Price and wage freeze (1951), 205 Price ceilings, xxxix, 217 Price Control Extension Act, Price control holiday, Price controls, 3, 5, 50, 56, 58, 77, 105, 182, 184, 186, 201, 216, 220, 229, 252, 273, 495 arguments against, 212 Subject Index as opposed by NAM, 222 Baruch Plan for, 185 cases for and against, 255 consequences of in agriculture, 82 end of, 299 harmful effects of, 869 history of, 119 intelligent, 201 partial, effects of, political aspects of, 206 threatened in steel industry, 683 Price Decontrol Board, 3, 6, Price decontrol, speed of, Price deflation (1953), 304 Price fixing, 35 as remedy for inflation, 223 by Presidential fiat, 754 extra-legal, by President Johnson, 829 harm done by, 866 Price supports in agriculture, 53 surpluses caused by, 626 Price system destruction of by unionism, 147 role of, 232, 709, 870 Prices and wages, ‘guideposts’ for, 866 government fixing of, 146 government ‘guidelines’ for, 853 presidential influence on, 707 relative, vs price levels, 237 Private capital, how to attract, 164 Private Investment conditions for, 118 effects of, 397 Private price setting, presidential power over, 708 Private sector, public sector as parasite on, 671 Production, military vs civilian, 242 ‘Productionists,’ 820 Productivity and wages, 510, 700 Productivity of labor and capital, 251 Profit and loss system, 226 Profit squeeze, Profiteers, 50, 51 Profits and wages, covariance of (data), 433–34 attempts to control, 226 average rates of, 688 corporate, excessive measures of, 54 correct accounting for under inflation, 108 normal/excess/war/windfall, 193 893 role of under capitalism, 193 role of, 226, 688 uniform percentage for all, xxxix Progress nature of, 394 prevention of by unions, 849 Propaganda, need for, 375 Propensity to work, 464 Protectionism, 655, 693 inflation leading to, 824 Prudence, folly of, 821 Public choice arguments, 409 Public Choice School, xxxvi Public debt, 60 Public interest, government actions in, 708 Public ownership, 869 Public sector as parasitic on the private sector, 761 supposed poverty of, 620 Public works, measuring economic efficiency of, 389 Pump-priming, 514, 701 self perpetuating, 131 Punta Del Este declaration, 686 Purchasing power theory of wages, 506 Purchasing power, loss of (data), 430 Quotas and tariffs, 702 Racism in a market economy, 825 Radcliffe Report, 585 Railway Labor Act of 1926, xlii, 11, 82, 771 Rationing, 197 Recession causes of, 254, 511 ways to deal with, 510 Recessions compared, 1920 to 1929, 535 Reconstruction Finance Corp (RFC), 181, 207, 317, 360 changed role of, 207 extended life of, 207 Recovery, ideological, 60 Redistribution and incentives, 789 Regulation vs freedom, 461 Religion and Marxism, 685 Rent ceilings, Rent control, xxxix, 19, 42, 119 consequences of, 111 effects of, 70, 166 removal of, 10, 70, 166 self-perpetuating nature of, 171 Rental prices, determination of by auction, 166 Rentier, euthanasia of, 429 894 Reparations, 73 Repressed inflation, 30 Republican me-too mood, 625 Republican party platform, economics in, 87 Republican party, muddled philosophy of, 116 Reserve ratios, 93 for member banks, 80 Reserve requirements, 93, 185, 191, 202, 229, 509 for Federal Reserve Banks, 80 Resources, supply of, 275 Restraint of trade, 846 Retroactive law, 781 Revaluation, 486 Revenue Acts of 1942 and 1943, xliv Revenues vs tax rates (data), 352 Right-to-work laws, xlii, 364, 842 Risk, socialization of, 133 Risk-taking, 765 Rockefeller Brothers Fund, 520 Roundaboutness, 575 Rueff proposal, 840 Rule of law, 604 violations of, 450 Russia, industrial output of, 576 moves by towards capitalism, 734 standard of living in, 576 Saving, the need for, 575 Savings, the meaning of, 300 Say’s Law, xxix, 514 Schachtism, 36 Schuman Plan, 437 Schuman proposal, 174, 177 SCOTUS, legislation by, 17 Sectors public vs private, 725 voluntary vs coercive, 725 Securities and Exchange Commission (SEC) regulations, effects of, 804 ‘Sick dollar,’ 800 Silver coins, shortage of (1964), 827 Silver, value of, 827 Single European currency, 529 Small Business Administration (SBA), 317, 360 lending policies of, 333 Small businesses, federal loans to, 317 Smith Cabinet Manufacturing Co., 126 Smith-Connally Act, 11 Smuggling, 34 Business Tides Soaking the rich, effects on future generations of, 76 Social security (OASDI), 342, 517, 537, 612 actuarial basis for, 615 benefits, 20 insurance or welfare, 618 unfunded liabilities of, xxxvii, 615, 618, 719 vs private pensions, 144 Socialism, 239 abroad, financing of, 675 as practiced in the U.S., 868 as recommended by American officials, 685 economics of, 280 foreign aid for, 658 in both parties, 391 in Britain, 89, 235 inadequate degree of, 604 inefficient production under, 176 isolationist nature of, 176 middle-of-the-road, in America, 130 parasitic on capitalism, 189 price setting under, 188 subsidized via foreign aid, 627 subsidizing, 57, 88, 799 vs freedom, 720 vs liberalism, 437 Socialist planning, U.S support for, 609 Socialized medicine, 612 Soil bank, 412, 428 Soviet economic growth, 661 Soviet space program, 496, 661 first step of, 492 Soviet Union appeasement of, 616 economic growth of, xxxv foreign trade data for, 558 production statistics (data), 474 Space program by-products from, 726 opportunity cost of, 666 value of, 726 Space race, 496 Spain, economic status of, 545 Speculation, 344 Speculators, 51 Speculators, hoarders, and profiteers, as responsible for inflation, 205 Spending and inflation, 309 ceiling on, 248 defense and non-defense, 862 difficulty of cutting, 466 Subject Index how to curb, 606 military, waste in, 250 needed cuts in, 862 non-defense (data), 462 off-budget, 462 pro-cyclical, 461 public, salvation through, 174 reductions in, 250 triangular competition in, 387 Spending cuts proposed, 715 with tax cuts, 466 Sputnik, economic consequences of, 492 Stabilization for redistribution, 264 Stabilizers, built-in, 512 Stabilizing programs, destabilizing effects of, 699 Stabilizing the economy, 19 Stand-by controls, 311 Stand-by powers (of wage and price controls), 303 State Department, anti-capitalist attitudes of, 694 State of the Union (1950), 203 (1952), 249 (1953), 298 (1955), 371 State planning, 97 States’ rights, 364, 384 and rent control, 42 Statism, international, 211 ‘Statism,’ usage of, 253 Statistical indicators, 682 Statistical prediction, usefulness of, 682 Statistics and propaganda, 434 Steel industry nationalization of, 259 prices and wages in (1963), 755 seizure of, 266 strikes in, xlii wage rates imposed on, 841 wages and benefits in, 141 wages in, 138, 143 Steel price increases, President Kennedy’s reaction to, 707 Steel prices and wages, 841 political aspects of, 76 Steel strike (1952), consequences of, 272, 273 (1959), threat of, 568 (1960), resolution of, 600 Sterling crisis and labor party policies, 828 895 Stock market prices, drivers of, 532 Stock yields and bond yields convergence of, 533 effects of inflation on, 533 Stock-market boom, causes of, 378 Strategic stockpile programs, effects of, 698 Strike, the right to, 126 Strikebreaking, 859 Strikes effects of on workers, 568, 577 encouragement of by labor laws, 870 inflationary effects of, 600 losses by strikers from, 555, 579 losses created by, 741 the “right to win”, 581 union motives for, 577 use of the National Guard in support of, 596 Sub-prime lending, 392 Subsidies, 218 Suez Canal, seizure of, 438, 450, 451, 457, 458, 459 Sugar market, controls on, 717 Sugar policy and Cuba, 608 Sugar, import quotas for, 623 Supplementary unemployment benefits (SUB), 522 Supply side arguments (anticipated), xlv, 28 Sweden, post-war situation in, 34 Switzerland economic status of (1961), 680 free exchange rates in, 31 political constitution of, 680 post-war trade issues in, 31 Taft-Hartley Act, xlii, 40, 41, 44, 45, 49, 85, 126, 138, 145, 146, 165, 307, 334, 363, 559, 844 improvements upon, 78 proposed changes to, 124 union attitudes to, 45 ‘Taking out the Goat,’ 161 Tariff policies, EEC vs EFTA, 540 Tariffs, 343, 705 and quotas, 712 preferred to quotas, 623 presidential powers to impose, 696 reductions of, 464 Tax burden on the economy, xlv Tax cuts and deficits, 731 and inflation, 782, 795 borrowing money to fund, 788 choice between, 397 896 Keynesian or classical, 792 proposed, 715 spending, inflation, 769 vs tax reforms, 752 Tax exemptions, increases in, 348 Tax Policy, xliv–xlvi Tax rates (1952), 247 and incentives, 28, 732, 783 vs tax revenues, 791 Tax rates, 322 changes to, 769 effects of, 303 marginal, 731 marginal, reduction of, 722 progressive, 348 punitive, 752 U.S and Swedish, compared, 729 U.S and British, compared, 727 Tax reforms proposed, 477, 714, 746, 758 Taxation limits of, 247 Swedish and progressive, 756 Taxes and incentives, 476 on ‘the rich,’ 476 how to cut, 397 presidential powers to impose, 696 Taxpayer, plight of, 158 Tennessee Valley Authority (TVA), failures of, 388 privatization of, 566 Tenth Amendment, 364 Texas as a two-party state, 102 economy of, 101 electoral politics of, 101 production of crude oil in, 101 Tires, cost of using (data), 268 Top tax rates, effect of on investment, 788 Total mobilization, 197 Totalitarian personality, how to recognize, 170 Trade agreements, folly of, 128 Trade balance, 190 Trade barriers, 690 how to remove, 702 Trade deficits in Europe, 92 Trade imbalances, 46, 49 Trade policy, 343, 523, 655, 693, 711 and foreign aid, 372 Business Tides Trade how to liberate, 711 managed or free, 632 restrictions on, xlviii semi-free, 464 Treasury bonds, interest rate ceiling on, 574, 583, 602, 610, 611, 625 Treasury certificates, one-year, interest rates on, 94 Treasury securities, purchases of by the Federal Reserve, 94 Treaty of Rome, 540 Truman administration, short evaluation of, 282 Truman caliphate, 264 Turning points, predicting, 586 U.S Development Loan Fund, 591 U.S missile program how to fund, 500 paying for, 496 U-2 crisis, 616 Unemployment 1931–1958 (data), 518–19 and interest rates, relations between (data), 544 and relative wages, 795 benefits, 169 causes of, 512 compensation, 514, 521 compensation, effects of, 512 creating more of, 169 deficits as cure for, 821 from automation, 808 from obsolete skills, 808 how measured, 519, 777 insurance vs welfare, 517 insurance, perverse effects of, 515 measurements vs estimates, 520 union causes of, 565 Union arrogance, 432 enabling factors for, 487 Union coercion, 571 corruption and criminality, xliii intimidation, 602 power vs liberty, 501 power, curbing of by legislation, 558 shop, 40, 363, 849 violence, 472, 751 violence, fear of, 858 wage contracts, 257 wage increases and unemployment, 524 wages, 251 Subject Index Union shop contracts, 844 Unionism and inflation, 582 compulsory, 259, 386, 842 and anti-trust laws, 676 Unions abilities of, 735 and gangsterism, 362 and racism, 825 and strikes, 334 and the law, 472 bad aspects of, 465 curbs on, 523 government concessions to, 82 industry wide, 147 industry wide, and compulsory bargaining, 145 intransigence of, 530 power of, 578 strength of, 704 vs freedom of the press, 752 United Auto Workers (UAW), 487, 512, 613 asking for layoffs, 512 United Furniture Workers of America, 126 United Mine Workers, 44 United Nations (UN), 159, 180, 437, 632, 681 American role in, 633 role of, 451 weaknesses of, 457 United States Information Agency (USIA), 375, 440 Urban planning, 593 Veterans’ benefits, 19 Vice presidency, abolition of, 468, 779 Vietnam war, financing of, 857 Voice of America (VOA), 375, 440 Wage and price controls, 197, 311 phasing out of, 258 selective, 187 threats of, 462 Wage boards, controls, 287 fixing, 12 settlements dictated by the Federal government, 745 stabilization, 257 Wage increases a fourth round of, 135 inflationary effect of, 135 mandated, effects of, 17 political influences on, 85 897 Wage rates and unemployment, 516 data 1939–1947, 77 vs total wage bill, 510 Wage Stabilization Board (WSB), xlii, 187, 220, 228, 257, 271 Wage-price spiral, xl, 228, 394, 436, 480, 581, 654 and the 1960 steel strike, 599 Wages and profits, statistics for, 14 as percent of corporate expenses, 21 as costs, 506, 512 as income, 506 effect of strikes on, 436 free or controlled, 710 government fixing of, 146 lack of uniformity of, 77 nominal vs real, 654 real and nominal (data), 348 stabilization of, union effects on, 347 vs benefits, 143 vs profits, 506 Wagner Act, xl, xli, 3, 12, 26, 40, 50, 85, 124, 145 changes to, proposed revisions to, 13 Wagner-Taft-Hartley Act, 169, 260, 266, 269, 487 Walsh-Healey Act, xliii, 137, 217, 218, 371, 390 War economic transition to, 178 ideological, 130, 526 on poverty, xxxiii, 797 profits tax, 184 spending , 183 taxes, 183 War Stabilization Board, 251 Watchdog committees, proposed, 362 Water shortage, dealing with, 847 Water, usage rules vs unit pricing for, 847 ‘We are all Keynesians now,’ xxxiv Welfare spending, 719, 815 Welfare state, xxxv–xxxviii, 760 bankruptcy of, 123 bipartisan desire for, 605 origins of, 239 total, 624 unstoppable growth of, 820 Western civilization, weakness of, 499 ‘What is seen and what is not seen,’ 158 898 Wheat price controls on, vote against by farmers, 759 price supports for, 759 Work week, shortening of, 712 Worker productivity, xli Working hours, defined by SCOTUS, 18 World Bank, xlii, 361, 591, 632 Business Tides World Council of Churches, 96 World monetary system, possible collapse of, 670 World super-bank, proposal for, 647 Yellow-dog contracts, 844 Yugoslavia, aid to, 192 ... value of the dollar anticipates the future, “just as the value of a bushel of wheat depends not only on the total present supply of wheat but on the expected future supply and on the quality of the. .. convenient for another generation to encounter Business Tides anew The pages that follow reproduce every column Henry Hazlitt wrote for Newsweek throughout his twenty-year career They offer both a... contemporary readers, these columns offer a glimpse at the wider economic history of the post-1945 era During that time, Hazlitt assumed the bearing of a dissenter: from price controls and other microeconomic