Just price
Sir : The SPECTATOR is filled with so much trendy nonsense these days that one could easily miss the important things. One such, of great importance in an apparently contracting economy, is the sub.- ject matter of the letter from Mr Paul Spencer (2 January) on the Just Price. He gives a short but succinct exposition of the kind of machinery needed to equate pur- chasing power with industrial and :ommercial output, both of national and international scale.
The effect of this adjustment of credit with the national potential would be to take an enormous weight off our minds. It would enable us to expand trade without expanding prices and would lift us off the horns of the 'to inflate or deflate' dilemma that we are told we are permanently fixed on to. We have jumped from one horn to the other and back again now for so long that we find it hard to break the habit and take a third way.
In an expanding economy the need for a just price can be ob- scured in the rush and excitement of being in a seller's market. Now that the economy is contracting, the issue is beginning to become painfully prominent. You are to be congratulated on printing Mr Spencer's letter. Could we hear more about it.
M. Heath-Gracie Shorms, Stockland, Honiton, Devon
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