AMERICAN PARTIES AND INFLATION
Sta,—Edward Montgomery's Twilight of Truman betrays a touch of naiveté in its assertion that " everybody is against inflation" in the United States. Of course, in theory, everybody is against it, and no one is going to stand up and praise it ; but in practice business and organised labour are getting on comfortably in spite of it, and—most significant of all— the farmers are doing wonderfully well because of it. -To ignore these facts is to be forced to conclude that the whole American people is stupidly helpless. In a long-term sense, no doubt, it is stupid on the part of business and agriculture to adopt an attitude of laisser tiller towards rising prices, for their own fall will ultimately be all the greater ; in a short-term sense, however, it is perfectly intelligent to let inflation have its way when you are at the right end of the economic see-saw. If you accept the risk of depressions, you must obviously get all you can out of a boom.
Yet it is quite clear that the majority of Americans are not prepared to accept the depression side of the gamble. Sooner or later something will be done to control prices, if only after the first big break in prices occurs. The way of retreat is still open, but meanwhile there are too many chances of rapid profit which those most concerned are unwilling to miss for the sake of long-term economic stability.
As an Englishman sympathetically interested in this American problem, and trying to appreciate the divergent points of view here, I think this is a realistic if over-simple explanation of the present situation. It is thus evident that there is a potential issue between those interested in taking active steps against inflation and those concerned to delay such steps as long as is consistent with safety. It seems as if both the Republican and Democratic parties straddle both points of view, although the Democratic platform is explicit on the necessity of reintroducing price controls. With all respect to Mr. Montgomery, I think that even when the inner confusion of the parties is allowed for, inflation may well prove a very real issue before the nation in November, although I doubt if the forces in favour of positive action can make much headway—particularly in Congress—as things stand.—Yours faithfully, RAYMOND ENGLISH. 12a Scott Street, Cambridge 38, Mass., U.S.A.
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