Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-05-31
Hinh Cost of LYind

security payments. civil serv-
ice retirement payments and
Government salaries to- the
Bureau Of Labor Statistics
cost-of-living index Is illus
trated by the price Spiral"
story in The Sunday Star.
which says:
"The consumer price index's
fourteenth consecutive rise in
April to 1879 lowered the pur-
chasing power Of theconsumer's
l947-49 dollar to 1913 cents {.
The April figure was a above
March and will mean q wage
increase Of about 2 cents an
hour to some Ia million
workers whose employment
contracts provide for cost-of-
living increases. The Bureau
Of Labor Statistics said the
end is still not in sight"
Since the dollar is worth
only 81 per cent Of it's 1898
value, 1t Is obvious that in
fiation has become an eco
nomic fact-of-life which the
Government should no longer
ignore in its dealings with So
cial security and civil service
payees.
Money Is such a confusing
subject. 1t is hard to discuss it
effectively. II Is hard to get.
easy to spend. and few people
can talk about it unemotion-
ally. A bankers idea Of money
is entirely different from a
carpenters. Imitation means
one thing to a retired person
with savings. and quite an
other to a young working man
with no stake.
Since imitation Is destined
TO be with US for quite some
time. the establishment Of q
constant-value income should
be the Governments number
one concern.
The main purpose Of money,
1t seems to me. is to facilitate
the now Of goods and services
throughout the econom ~.
When the economy is pro-
ducing at capacity. money is
fulfilling its purpose 100 per
cent. When the economy is not
producing at capacity. and
unemployment has decreased
the flow Of goods and services,
money Is not doing its part,
Today our economy is pro-
ducing goods and services at
near capacity. and so money is
doing exactly what 1t should
do. Now since money is func-
tioning at nearly 100 per cent
in facilitating the flow of
goods and services, and we
have q condition Of imitation,
is imitation really bad?
The answer is both yes and
no. II you are on a fixed in
come. imitation is certainly bad
Tor you. The millions of per-
sons drawing social security
Dement'S and thousands OF
persons drawing civil service
retirement pensions are in this
class. So are the salaried
persons in the armed force,
ana those employed by the
Government elsewhere. These
people need a constant-valut
income.
II you are producing else.
where in the booming econ.
omy. imitation probably ISM
hurting. Business and labo,
can function efilciently so Ions
as money doesn't devaluatt
over the short period neces.
sary to put 1t back into circu.
lation.
Is there any way the Gov.
eminent could create a truly
constant-value dollar and thu,
halt imitation permanently?
Not without rigid control,
over every hour Of service anc
every item Of goods.
Under such controls. peo.
pie would take on the char.
acteristics Of Government EN-.
ployys. and the entire economy
would be saddled In the grip Of
a permanent price, fixing OPA
such q course is unthinkable
What should be done II in.
nation is partly bad, and q
managed economy even worse
The answer is to tie salaries
and pensions to the cost-of-
living index Of the Bureau OF
Labor Statistics. The Govern.
ment should begin now TO pro.
tect the income Of its EN-.
ployes and the millions of
people on social security.
Da..l NH.Uaa