ECONOMIC STABILITY AND

GROWTH

HEARINGS

BEFORE THE

JOINT ECONOMIC COMMITTEE
CONGRESS OF THE UNITED STATES

EIGHTY-FIFTH CONGRESS

For sale by the Superintendent of Documents, U.S. Government Printing Office

JOINT ECONOMIC COMMITTEE

(Created pursuant to sec. 5(a) of Public Law 304, 79th Cong.)

WRIGHT PATMAN, Representative from Texas, Chairman
JOHN SPARKMAN, Senator from Alabama, Vice Chairman

HOUSE OF REPRESENTATIVES

RICHARD BOLLING, Missouri
HALE BOGGS, Louisiana

HENRY R. REUSS, Wisconsin

HENRY O. TALLE, Iowa

THOMAS B. CURTIS, Missouri

CLARENCE E. KILBURN, New York

SENATE

PAUL H. DOUGLAS, Illinois
J. W. FULBRIGHT, Arkansas
JOSEPH C. O'MAHONEY, Wyoming
RALPH E. FLANDERS, Vermont
ARTHUR V. WATKINS, Utah

RODERICK H. RILEY, Executive Director
JOHN W. LEHMAN, Clerk

JAMES W. KNOWLES, Economist in Charge

II

CONTENTS

CHRONOLOGICAL LIST OF WITNESSES

I. Employment Act objectives and the stabilization of prices_

Solomon Barkin, director of research, Textile Workers of America,

AFL-CIO..

Irving Beller, research associate, Industrial Union Department,

AFL-CIO..

Ira T. Ellis, economist, E. I. du Pont de Nemours & Co-_--_-.

Beryl W. Sprinkel, economist, Harris Trust & Savings Bank,

Chicago, Ill.

G. L. Bach, dean, Graduate School of Industrial Administration,

Carnegie Institute of Technology.

William J. Baumol, professor of economics, Princeton University-

II. The analysis of the causes of price changes and of the effects of price

changes on economic activity -

Page

429

430

442

444

446

449

451

497

Peter Henle, assistant director of research, AFL-CIO.

498

Ben B. Seligman, director of research, Retail Clerks International

Association, AFL-CIO.

500

Walter D. Fackler, assistant director of economic research,

United States Chamber of Commerce__

502

George P. Hitchings, manager, economic analysis department,

Ford Motor Co. -

504

John P. Lewis, professor of business economics and public

policy, School of Business, Indiana University.

508

J. Fred Weston, professor of finance, Graduate School of Business

Administration, University of California, Los Angeles__

III. Private pricing policies and the effects of public policies.

Nat Weinberg, director, special projects and economic analysis,

United Auto Workers, AFL-CIO__

511

765

765

S. Morris Livingston, consulting economist, Chicago, Ill

William W. Tongue, economist, Jewel Tea Co., Inc., Melrose

Park, Ill.

772

774

Martin J. Bailey, professor of economics, University of Chicago--

Alfred R. Oxenfeldt, professor of marketing, Graduate School of

Business, Columbia University-

778

780

IV. Formulating public policies for economic stability and growth

Stanley H. Ruttenberg, director of research, AFL-CIO..

Lazare Teper, director of research, International Ladies' Garment

Workers' Union, AFL-CIO..

815

816

819

Richard V. Gilbert, consulting economist, Westport, Conn-

David C. Melnicoff, manager, economic analysis, financial depart-

ment, the Pennsylvania Railroad Co..........

822

826

Albert Rees, associate professor of economics, University of

Chicago___

829

Robert C. Turner, chairman of department of business eco-

nomics and public policy, School of Business, Indiana Uni-

versity.

830

III