CONTROLLED INFLATION CALLED SAFE SOLUTION TO RISING WAGES, PRICES

Proponents of a nation-wide compulsory ceiling on laborer's wages as a means of holding down ballooning prices were essentially discredited last night by Hans Staehle, visting lecturer in Economics, and Overton H. Taylor, Lecturer in Economics, who spoke over the Crimson Network last night on the topic: "Should there be a ceiling on wages as well as on prices?"

From the standpoint of pure economic theory, Staehle admitted complete control of wages and prices, for the farm as well as for the factory, on the totalitarian scheme, is a way of checking inflation.

Sacrifices Necessary Somewhere

"A few isolated price rises start the upward trend," he stated. "If a free market is to be legally regulated, it must be completely regulated, not merely in certain places as Leon Henderson is doing. Sacrifices must be made either in income or in paying higher prices," he added.

While agreeing on economic grounds, Taylor denied the political practicality of holding down wages, since legislators could "give workers no guarantee that their incomes would maintain their position relative to employers' profits or price rises."

"By withholding restrictions on wages," Taylor continued, "we will achieve a real democratic victory and will prevent class bitterness. Moderation on the part of managers, employers, and the government is the only feasible means of solving the present trouble."