Slichter, Harris See Control Futile As Inflation Stopgap

Inflation will continue to spread for want of a workable system of control, two of the University's leading economists agreed last night at the spring's second Dunster House Forum on "The Economics of Mobilization."

Summer H. Slichter, Lamont University Professor and member of the Faculty of the Graduate School of Public Administration, said that wage controls, though necessary, were impossible without labor's support, which he believes is not forthcoming. He predicted a seven percent wage increase for 1951 and an approximate 25 billion dollar personal income increase.

Admittedly reversing his previously published opinion, Seymour E. Harris, Professor of Economics, said inflation would result from the public's inability to stand by price controls. He added also that businessmen have learned how to get around controls from World War II experience.

Harris charged that political pressure has made the Federal Reserve System unworkable as a credit stopgap, and suggested instead that a compulsory savings program be added to the income tax.

Slichter denied any such strong pressure on the system, and maintained that government action against overexpanded member banks would be better than a savings program which would "aggravate the monetary situation by expanding it even further." Slichter asked instead that the government offer a greater and more varied selection of bonds. Moderator of the forum was John Nixon, former O.P.A. economists, and until this year, senior tutor in Dunster House.