Hoosier Senator, Keyserling Debate High Cost of Living

Just 24 hours after the introduction of his price-freeze resolution on the Senate floor, Homer E. Capehart debated price policies with Leon H. Keyserling, a member of the President's Economic Advisory Council, before the Law School Forum last night.

A total absence of partisan politics characterized the debate at the Rindge Tech Auditorium, although the speakers differed sharply in regard to the nature of the inflation problem, as well as to its solution.

The Senator blamed high prices solely on insufficient production. He proposed to extend the work week in order to encourage greater output and higher real wages. Other points on his program were a priority system for scarce commodities, and the four-months price-freeze legislation.

Keyserling Analysis

Keyserling fixed the blame for high prices not on low production, but on mal-distribution of income.

"Profits which are so high that they cannot be absorbed by investment, remain unspent and reduce consumer purchasing power," he explained. Keyser-ling also noted that the spending of war time savings, reconversion investments, and European aid buoy up the economy temporarily, but warned that a severe depression was inevitable unless income distribution is improved.