Thank you for visiting SNEWPapers!
Sign up free
Editorial
July 11, 1946
The Tri County News
Grand Rapids, Wood County, Ohio
What is this article about?
Editorial argues that increased production, not just price controls, is key to combating inflation and black markets. Criticizes subsidies and advocates for allowing free operation of production and distribution to achieve efficient, less inflated goods supply.
Clipping
OCR Quality
98%
Excellent
Full Text
OUR SALVATION
Back of all the talk concerning inflation and price control, is the undeniable fact that heavily increased production is our main salvation.
Everyone knows that black markets are created by inadequate supply of desired goods in normal, legitimate outlets. This country's price control policies have contributed unnecessarily to that inadequacy. No one will produce an article if he can't sell it for enough to pay his costs. And no manufacturer, farmer, or retailer can hold the price line indefinitely in the face of increasing wage and operating expenses beyond his control. He must raise his prices or quit producing.
In the case of many agricultural products, the government has attempted to meet the issue through the old device of subsidies. A child can see the economic fallacy in that. A subsidy means that part of the cost of what you buy is paid for out of your tax dollars. In the long run, the bill is greater.
Those who try to bring about businesslike administration of price control aren't the friends of inflation. They are the friends of production--inflation's enemy. This country has the greatest productive potential on earth. It has, in addition, a highly competitive distribution system which is a miracle of efficiency. Until these forces can operate freely, we shall continue to enrich the black market and prevent legitimate producers and distributors in all fields from performing the vast services of which they are capable thereby assuring goods at the least inflated prices.
Back of all the talk concerning inflation and price control, is the undeniable fact that heavily increased production is our main salvation.
Everyone knows that black markets are created by inadequate supply of desired goods in normal, legitimate outlets. This country's price control policies have contributed unnecessarily to that inadequacy. No one will produce an article if he can't sell it for enough to pay his costs. And no manufacturer, farmer, or retailer can hold the price line indefinitely in the face of increasing wage and operating expenses beyond his control. He must raise his prices or quit producing.
In the case of many agricultural products, the government has attempted to meet the issue through the old device of subsidies. A child can see the economic fallacy in that. A subsidy means that part of the cost of what you buy is paid for out of your tax dollars. In the long run, the bill is greater.
Those who try to bring about businesslike administration of price control aren't the friends of inflation. They are the friends of production--inflation's enemy. This country has the greatest productive potential on earth. It has, in addition, a highly competitive distribution system which is a miracle of efficiency. Until these forces can operate freely, we shall continue to enrich the black market and prevent legitimate producers and distributors in all fields from performing the vast services of which they are capable thereby assuring goods at the least inflated prices.
What sub-type of article is it?
Economic Policy
What keywords are associated?
Inflation
Price Control
Production
Black Markets
Subsidies
Agricultural Products
What entities or persons were involved?
Government
Manufacturers
Farmers
Retailers
Editorial Details
Primary Topic
Increased Production As Solution To Inflation And Price Controls
Stance / Tone
Pro Production And Anti Strict Price Controls
Key Figures
Government
Manufacturers
Farmers
Retailers
Key Arguments
Heavily Increased Production Is Main Salvation From Inflation.
Price Controls Contribute To Inadequate Supply And Black Markets.
Producers Cannot Sustain Without Covering Rising Costs.
Subsidies Are Economically Fallacious As They Increase Overall Costs Via Taxes.
Businesslike Price Control Administration Supports Production, Inflation's Enemy.
Free Operation Of Production And Distribution Ensures Efficient, Less Inflated Goods.