Professional Documents
Culture Documents
25
No. 252
: ~ : X-!llJ
21 March 1980
Inflation Panic
230
228
226
208
224
206
204
Source: Burea'u of
Labor Statistics
I 1
202
DJFMAMJJASONO
78 79
Consumer Price Index
(1967=100)
Wall Street Jumps
Once again the capitalists are faced
with an economy careening from panic
to panic. Only yesterday it seemed it was
the dollar crisis, then came the gold
speculation fever. Now, without fixing
that mess, the economy is poised before
an inflationary blow-out and collapse.
Yet the capitalists had no idea it was
coming, how it happened or how to stop
it. No wonder Jimmy Carter talks about
having faith in the American economy:
present bourgeois economic forecasting
seems an elaborate religious ritual
having considerably less connection to
reality than primitive witch-doctoring
(which usually has a core of empirical
practice). Thus at the end of last year the
Allied Social Scientists gathered in
Atlanta with their computerized econo-
metric models, neo-Keynesian dreams
and shifting definitions of "money."
continued on page 8
workers' pay down. While there is a
clamoring for mandatory controls,
Carter relies on wage "guidelines"
because they are working-for the
bosses. And this is the responsibility of
the labor bureaucracy, from Meany
successor lane Kirkland to liberal
Doug Fraser, which has worked in
tandem with the Democratic adminis-
tration in keeping pay increases far
. below the inflation level. Just to catch
up, the labor movement must be
mobilized for an all-out wage offensive.
And that means a political fight with the
pro-capitalist misleaders who have
reached a "national accord" for the
workers to submit to the grinding heel of
ever upward inflation.
Diletsl
OflefS:
public for the irrationalities of capital-
ism. But all the talk of a "wage-price
spiral" is pure bunk. In the last 12
months, the average real (adjusted for
inflation) take-home pay of American
industrial workers has fallen by more
than 10 percent (see graphs). Mean-
while, basic necessities-food, housing,
fuel, medical costs-are running at
twice and three times the rate of
inflation in the rest of the economy.
Most Americans are in debt because
they are trying to make ends meet in a
super-inflated economy: if they are
borrowing like crazy at 18 percent on
credit cards, it's because prices are
heading for 20 percent.
With price rises roughly double last
year's rates, wages are being slashed as
surely as if employers simply deducted it
from the paychecks. And the center-
piece of Carter's "anti-inflation"
program-"voluntary wage and price
guidelines"-is to keep on driving