Chapter 943 of 943 · Business Tides: The Newsweek Era of Henry Hazlitt by Henry Hazlitt
Subject Index
1951 Federal Budget, 158
1954 Federal budget, 308
1955
election discussed, 401
Federal budget, 343
1956
Democratic party economic policies, 446
Democratic party platform, 438
election, economic meaning of, 447
Republican party platform, 439
1956 Steel strike, 432
aftermath of, 436
1957
Federal Budget, 413
State of the Union, 458
Economic forecasts for, 453
1959 Federal Budget, 556
1960
Democratic Party platform, 624
Election, issues in, 635
Election, results of discussed, 648
1961 Federal Budget, 659
1963 Federal budget, 697
1965 Federal budget, 791
1966 Federal budget, irresponsibility of, 859
Ability-to-pay principle, 349
Acreage allotments, 412
Ad Hoc Committee on the Triple Revolution, 798, 808
Afghanistan, foreign aid to, 420
AFL-CIO, 511, 612, 655, 656, 705, 712
Aggregate demand, 293
and flexible prices, 513
Agricultural policy, 573
Agricultural price policy, 277
Agricultural price supports, 53, 113, 626
Agricultural surpluses, 399, 401
Agriculture in India and Russia, 816
American aid agencies, socialist aims of, 190
American economic superiority, causes of, 357
American Federation of Labor (AFL), 12, 13, 49, 362
American responsibility, abdication of, 633
American virtues, apologies for, 541
Americans for Constitutional Action (ACA), 648
Americans for Democratic Action (ADA), 612
Anglo-Iranian Oil Co., 225
Anti-capitalism, 498
Anti-trust action, 415
Anti-trust cases, criminal penalties in, 846
a confused muddle, 818
insanity of, 838
Apprenticeship training, 809
Appropriations vs. expenditures, 505
Arbitration, compulsory, 631, 704, 747, 871
Argentina, economic situation in (1964), 802
Arms aid, 241
As-if world money, 437
Aswan Dam, 419
Atlantic Pact, 121, 128, 146, 282
proposed, 117
Austria, economic state of (1963), 773
Authorities, declining respect for, 563
Automation and employment, 700
Babylonia, price controls in, 212
Back-to-work laws, 871
Balance of payments, li, 569, 619, 792, 868
and the value of the dollar, 640
discussed by David Hume, 771
for 1968, predicted by Brookings, 768
real vs. technical deficit in, 677
Balance of payments deficit, 635, 653, 718, 798, 800
and inflation, 766
causes of, 720
Balanced budget, xxxiv, 307, 351
lack of need for, 673
promises of for the future, 328, 369, 684
Balancing the budget, 342
Baruch Plan, 264
Bay of Pigs, 731
Beef, market for, 104
Belgium, post-war situation in, 32
Benelux, 75
Berlin
crisis in (1958), 547
defense of, 673
the cost of defending, 674
Bilateral trade, 37
Bipartisan inflation, 536
Bituminous coal mining, wage increases in, 43
value of, 252
monetary policy of, 97
Bonds, variable rate, 98
Books, recommended, 772
Borrowing, Federal, 610
Brazil
foreign aid to, 665
inflation in, 734
Bretton Woods agreement, xlvi–li, 20, 49, 157, 189, 331, 775, 800, 839
and perpetual inflation, 816
revisited, 776
inherent instability of, 486
Britain
anti-inflationary measures by, 491
budget for, 351
counterproductive policies in, 78
discount rate in, 390
exchange controls in, 388
loss of gold reserves by, 235
party politics in, 820
socialism in, 78
British conservatives, socialist policies of, 444
British Labour Party, aversion to capitalism of, 177
British Pound
convertibility of, 355, 356, 554
exchange rates for, 355
Brussels World Fair (1958), 541
Budget balance, cyclical, 811
and economic activity, 396
potential, 462
Budget data (1935–51), 225
Budget data (1935–53), 295
Budget deficits, 351, 373, 537, 743
and employment, 698
and inflation, 210
and taxes, 377
concealed, xxxii
perpetual, 716
planned, 744
Budget estimates, 224, 294, 602
Budget expenditures, U.S. vs. British (data), 470
Budget process, 295, 307, 312, 318, 330, 351, 378, 381, 467, 469, 471, 473, 505, 537, 606, 659
changes proposed to, 243
English v. U.S., 169
in Britain, 470
proposed reforms to, 127
revisions to, 387
Budget rhetoric, two-faced, 413
Budget surpluses, 810
Budgets
cyclically balanced, xxxv, 652, 653, 662
estimated vs. actual, 791
how to cut, 507
size of, 507
Bureaucracy, xxxviii
extent and cost of, 830
self-perpetuating nature of, 840
Bureaucrats, behavior of, 161
Business confidence, measures to restore, 709, 713
Business cycles, 234, 293, 511, 520, 535
Austrian theory of, xxxv
consumer behavior in, 446
preventing, 392
turning points in, 8
Business forecasting, 293, 585
fallibility of, 844
hazards of, 409
perils of, 424
Business forecasts vs. racetrack tips, 369
Butter, price of, 344
Cabinet member, Senate rejection of, 574
Calculation problem, xxxix
Canada, 189
budget for, 351
exchange controls terminated by, 243
Canadian dollar, 1962 devaluation of, 824
Capehart amendment, 227, 265, 311
Capital accumulation, effect of on wages, 66
Capital Day. See Labor Day
Capital flight, 35
Capital formation and growth, 689
Capital gains and capital losses, 380
and inflation, 380
effects of, 741
Capital theory, 575
Capitalism
and economic growth, 475
apologies for by the USIS, 393
defense of against communism, 375
ethics of, 96
lack of belief in, 498
laissez-faire, 97
philosophical defense of, 527
survival of, 505
Carry-over budget funds, 505
Cartels, state managed, 174
Case Labor Disputes bill, 26, 41
Central planning
foreign aid for, 658
in Britain, 47
problems of, 280
vs. liberty, 87
China
communism in (1959), 561
economic status of, 24
Citizens Foreign Aid Committee, 668
Closed shop, 40
Coal industry
crisis in, 163
union activity in, 165
Coffee
price of, 344
price supports for, 751
Collective bargaining, xl, xlii, 699, 771
free or compulsory, 589
Collective farms, failure of in Poland, 448
Collective ownership, 561
Collective security, 74, 88, 96
Collectivism, 146
imposed by the U.S., 111
subsidizing, 167
Committee for Economic Development (CED), 209, 520
Commodity prices, 71
as caused by poverty, 664
causes of, 86
how to combat, 86
industrial output under, 448
potential European alliance against, 88
U.S. stance against, 616
Communist ideology and poverty, 778
Communist infiltration in government, 360
Communist Manifesto, 65, 73, 349, 867
Communist Manifesto, new, 674
Communist Party USA, 130
Communist production, measures of, 434
Communist strategy, 570
Compensated budget, 180
problems with, 151
Compensated economy, 131
Competition
nature of, 564
perfect or imperfect, 564
Compulsory arbitration, xliii, 11, 590, 770
Compulsory bargaining, 588
Congo, UN intervention in, 681, 694
Congress of Industrial Organizations (CIO), 13, 14, 17, 49
Congress, collectivist record of, 146
Congressional pay raises, 376
Congressional powers, delegation of, 705
Conservative books, recommended (1959), 586
Conservative internationalism, xlvii
Conservative Party, economic policies of, 235
Consumer debt, dramatic expansion of, 400
Consumer goods, production of under communism, 435
Consumers
protection of, 704
purchasing power of, 19
sovereignty of, 724
viewed as ignoramuses and fools, 703
Consumption, socialization of, 622
‘Consumptionists,’ 820
Controllism, 444
Corporate financial report (satire), 48
Corporate taxes, increases in, 178
Correlation between profits and employment, 17
and bribery, 717
and discretionary power, 528
Cost of living adjustments, 228
Cotton market, 468
controls on, 717
surplus sales in, 428
Council of Economic Advisers, 76
hubris of, 710
Marxist thought in annual report of, 73
Counter-cyclical fiscal action, 151
Counter-cyclical policy, 313, 346, 750
Counter-cyclical strategies, xxxv Credit controls, xxxix, 187, 191, 390
need for, 187
selective vs. general, 416
selective, 460
Credit creation, inflationary, 392
Credit rationing, 460
Credit restrictions, general vs. specific, 534
Cuban missile crisis, 730
Currencies
convertibility of, 296
par value for, 24
Currency debasement, 148
Currency devaluations, xlviii, 142, 157
Customs union, 33
consequences of, 74
requirements for, 74
Debate topics, proposed, 604
Debt ceiling, 330
raising of, 319
Debt-to-GNP ratios, 805
Decontrol of prices, consequences of, 9
Default by inflation, 805
Defense budget, 607
Defense expenditures (data), 421
Defense expenditures, international data for, 312
Defense Production Act, 186, 187, 218, 227, 229
Defense spending, 293
data by country, 248
Deficit reduction, 369
and inflation, 508
as cure for unemployment, 508
effects of, 125
Deficits
and inflation, 735
as policy, 748
perpetual, 813
the cult of, 835
and unemployment, statistical relationship between, 753
Deflation, 4
fear of, 628
multiple meanings of, 629
specter of, 216
Delegation of powers, 411
Demand, deficient, 794
Democracy and foreign aid, 57
Democratic Advisory Council (DAC), 495
Democratic party,
inflationary policies of, 495, 583
statist measures by, 625
platform (1964), 817
accelerated, 642
and inflation, 642
and tax revenues, 642
and taxes, 329
rules and growth, 732
write-off rules for, 706
Depressions, prevention of, 313
Deterrence, need for, 607
Dictatorship, 561
changes to, 441
reduction of, 497
Dividends, double taxation of, 178, 381, 713, 767
Dneprostroi Dam, 419
Dollar
decreasing gold content of, 669
defending the value of, 651, 756
falling purchasing power of, 517, 720
maintaining confidence in, 638
policies to weaken, 635
value of, 635
value of, how (not) to preserve, 687
Dollar exchange standard, 841
Dollar reserve system, 850
Dollar shortage, 46, 51, 92, 107, 190, 296, 388
Dual economy, 671
Dutch East Indies, 33
East Germany, monetary reform by, 493
Economic (in)stability, 135
Economic aid, 220
conditions imposed on, 241
Economic bill of rights, 624
Economic Commission for Europe, 78
Economic Cooperation Administration (ECA), 107, 120, 129, 135, 149, 157, 164, 168, 177, 190
Economic fallacies, 267
Economic fascism, 853
Economic forecasting, 323
perils of, 424
pitfalls of, 104
Economic freedom, results of, 357
Economic growth, xxxii, 327, 437, 864
absolute vs. relative, 559
and tax rates, 673
causes of, 686
planned or free, 726
policies promoting, 614
rates of, 560
socialism antithetical to, 721
use of as election slogan, 631
Economic illusions, 236
Economic indicators, leading and lagging, 585
Economic Opportunity Act of 1964, 814
Economic output, civilian vs. military, 526
Economic planning, 5
bipartisan, 715
in Europe, 53
in Germany, 30
Economic policies, irresponsible, 627
Economic progress, sources of, 267
Economic prosperity, causes of, 125
Economic quackery, 710
Economic regulation in the United States summarized, 102
Economic Report of the President (1964), 793
Economic Report of the President (1966), 860
Economic Stabilization Administration, 187, 197, 220
Economics of mobilization, 214
Economics, proper method for, 724
Education, Soviet and American, compared, 496
EGA, 133
EGA funds, conditions placed upon, 182
Egalitarian philosophy, 35
Eggs
overproduction of, 573
price supports for, 573
Egypt, foreign aid to, 419
Egypt-Israeli relations, 458
Ekistics, 593
Elderly, needs of, 612
Election laws, proposed changes to, 861
Elections (1954), commented on, 358, 360
Employment Act of 1946, xxxiv, 498, 557
results of, 603
Employment
as provided by entrepreneurs, 765
effects of inflation on, 654
Engine of inflation, Federal Reserve as, 203
England, 24
coal nationalization in, 25
coal shortage in, 24
economic planning in, 25
economic status of, 325
political thinking in (1959), 585
post-war economic policies in, 35
price fixing in, 25
trade with and aid to, 302
Entrepreneurship, 765
Envy, 288
Escalator clauses in wage contracts, 514, 515, 516
Europe
American economic policies towards, 546
American trade with, 326
economic progress of (1959), 587
economic situation in (1958), 546
inflation in (1964), 806
post-war mess in, 36
European Clearing Union, 168
European Coal and Steel Union, 174
European Common Market, 464, 632, 682, 693
U.S. trade policy towards, 702
European Economic Community (EEC), 540, 824
American attitudes towards, 540, 730
members of, 730
possible problems for, 543
vs. EFTA, 764
European economic crisis, causes of, 67–69
European Free Trade Association (EFTA), 540, 693, 730, 824, 828
European integration, 149
European Monetary Union, 168
European Payments Union, 168, 192, 437
consequences of, 165
proposed, 165
European rearmament, financing of, 121
European Recovery Program (ERP), 69, 78, 89, 117, 125, 128, 157, 167, 172, 177
European trade policy, 554
effects of, 286
Excessive wage rates, unemployment caused by, 137
Exchange controls, xxxix, xlvii, 99, 138, 139, 279, 296, 452, 767
effects of in Britain, 83, 100
fallacies of, 81
Schachtian network of, 84
Exchange rates
dual, 99
fixed vs. floating, 71, 189, 487, 797
fixed, 22
floating, 356
free vs. floating, 297
official vs. unofficial, 430
Excise taxes
reduction of, 178
vs. rationing, 184
Executive usurpation, 53
Export-Import bank, 38, 133, 168, 181, 226, 351, 361, 420, 591
lending, follies of, 359
Exports, effects of on domestic prices, 57
Expropriation, 437
Extremism, 812
Fair Deal, 343
Fair Labor Standards Act (1938), xlii, 17, 863
Fair Trade, 218
Famine
caused by price ceilings, 217
socialist policies causing, 208
Farm income, parity of, 124
Farm policy, 277, 398, 422, 428, 468
proposed, 405
Farm price parity, 398
Farm price supports, xxxvii, 169, 310, 344, 412, 716
bad effects of, 774
effects of, 468
problems from, 418
Farm prices, 344
Farm programs, proposed changes to, 399
Farm subsidies, 123
Farm surpluses
how to end, 626
proposed solution for, 592
Fascist economics, 261
FDA, 723
FDR, plants seized by, 262
Featherbedding, xliv, 745, 849
Federal aid to schools, 405
Federal budget, xxxv–xxxviii, 250, 310
balancing of, 395
balancing through taxes, 562
growth of, 409
peace time size of, 113
reduction of, 18
Federal deficit, monetization of, 857
Federal government, appropriate size of, 695
Federal Housing Administration (FHA), 360
Federal Power Commission, 830
Federal Reserve, 6, 59, 61, 79, 91, 94, 97, 100
credit restrictions by, 534
curtailment of, 259
independence of, 206, 239, 425, 457, 579, 857
Federal spending
growth of, 312
reckless, 627
Financial aid from America, 53
Financial aid, fungibility of, 129
Fiscal policy, 28, 113, 127, 134, 158, 224, 295, 307, 308, 310, 351, 373
conflicting needs of, 857
creation of, 29
Fiscal responsibility, 29
lack of, 378
Fiscal revolution, 813
Flat tax proposed, 722
Food subsidies, 35
Forand Bill, 612
Foreign aid, xlvi–li, 39, 157, 161, 164, 168, 172, 192, 195, 208, 210, 219, 256, 268, 315, 316, 327, 419, 451, 452, 457, 609, 675, 781, 792
and communism, 60
and taxes, 475
arguments for, 410
as loans vs. grants, 353
conditions for, 851
counterproductive results of, 522
creation of ill will by, 677
dilemma of, 281
discretionary, 461
effects of, 362
excesses of, 536
expenditures, 361
for socialism, 489
for socialist projects, 762
futility of, 523
government to government, 800
harm resulting from, 668
helpfulness of, 778
justifications for, 427
moral obligation to provide, 658
new program for, 122
perpetuation of, 384
private, 475
problems with, 55
public vs. private, 427
reasons given for, 420
results of, 664
six principles of, 27
socialist assumptions behind, 614
substitution principle for, 868
to Europe, extent of, 52
use of to fight communism, l
used to strengthen socialism, 536
uses for, 240
vs. communism, 67
vs. private investment, 799
vs. socialism, 65
Foreign exchange controls, 157
Foreign exchange rates, pegging of, 55
Foreign investment
tax on, 765, 775, 781, 792, 796, 836
government guarantees for, 133
private or public, 118
Foreign lending, 20
Foreign Military Assistance Act, 135
Foreign policy, 301, 452, 457, 458, 459
inconsistency of, 629
reappraisal of, 374
Foreign trade policy, 321, 350
Foremen, unionization of, 26
Formosa, protection of, 374
Foundation for Economic Education (FEE), xxviii
‘Fourth Dimension,’ 402, 405, 461, 744
Fractional reserve banking, 669
economic status of, 324
exchange controls in, 485
liberalization in, 176
monetary policies of (1958), 541
new constitution for, 541
post-war situation in, 32
price controls in, 236
problems of, 234
Free markets
case for, 275
lack of belief in, 114
Free speech, denied by the NLRB, 833
Free trade vs. state domination, 159
Freedoms Foundation at Valley Forge, 152
French Franc
devaluation of, 485
revaluation of, 554
Frustrated inflation, 5
budget, 794
by monetary means, 393
policy, 175
policy, inflationary results of, 194
Galbraith-Lippmann-Dale thesis, 620
GDP, nominal vs. per capita real, 431, 518
General Agreement on Tariffs and Trade (GATT), 385, 554
German economic miracle (1948–58), 542–43
German hyperinflation, 628
German Mark, revaluation of, 657
Germany
dismantling of factories in, 72
economic paralysis of, 30
‘Getting rich by giving away stuff,’ 43
GNP
and inflation, 553
arbitrary measures of, 749
measurement of, 553
measures, problems with, 533
national income approach to, 553
problems with, 553
vs. welfare, 554
GNP growth rates, U.S. vs. Soviet, 533
GNP growth, responsibility for, 849
Gold
convertibility of, 667
demonetization of, 648
hoarding of by speculators, 641
holdings of abroad, illegality of, 650
how to lose, 772
monetization of, 648
naivete of belief in, 585
outflow, 798
outflow, measures to reverse, 569
price of, 666
redemption of by foreign governments, 599
repricing of, 678
role of, 595
vs. fiat money, 20
Gold exchange standard, 671, 840
and free gold, 599
effects of inflation on, 834
inadequacy of, 619
proposed elimination of, 595
proposed reduction of, 834
role of, 664
run on, 757
Gold standard, xlvii, li–lii, 140, 214, 233, 529, 667
benefits of, 339
devolution of, 669
equilibrating mechanism of, lii
need for, 487
political basis for, 149
rejected, 775
restoration of, 679
return to, 149, 314, 339, 340, 345, 347, 665, 728
return to, steps proposed, 341
vs. fiat currencies, 71
vs. political money, 437
GOP monetary policy, 270
Government expenditures (data), 620–21
Government lending, wastefulness of, 383
Government power, arbitrary use of, 848
Government securities, monetization of, 863
Government spending, sources of, 402
Government, duties of, 755
Government, proper role of, 394
Government, unlimited, 817
Government-to-government aid, 164
Grain exchanges, margin requirements for, 53
Gray report (1950), 195
Great Society, 860
how to pay for, 852
Greenbacks, history of, 347
Gresham’s Law, 720
Guaranteed income for all, 798
Guaranteed wage, 382
Guatemala, economic policies imposed on, 802
Hammurabi, Code of, 119
Helmand valley, 420
High-powered money, creation of by the Fed, 837
Hi-Ho-Hum, fictional historian, 648
History and Marxism, 685
Hitlerian autarchy, 36
Holland, post-war situation in, 33
Hoover commission, 389
Household income, statistics for (1939–1951), 278
Housing, government created boom in, 179
Hungary, revolt in (1956), 448
Ideas, role of, 130
Imperial presidency, role of, 708
Import quotas, evil of, 623
Incentive pricing, 5
Income
and savings (data), 424
as a right, 808
averaging, 477
inequality, trends in, 260
policies, 810
Income tax
and irregular incomes, 734
graduated, 867
increases in during WWII, xliv
progressive or proportional, 761
progressive, 349
progressivity of, 788
rates (1953), 303
withholding, xliv
India
famine and socialism in, 815
poverty in, socialist causes of, 807
Indo-China, war in, 354
Industrial policy, 266
Industrialization, excessive, 803
Inflation, xxxi–xxxii, 4, 11, 50, 51, 56, 57, 77, 83, 105, 108, 134, 175, 182, 186, 187, 201, 202, 205, 227, 249, 271, 373, 429, 431, 478, 640, 653, 660, 693, 718, 721, 747, 845
1939–59 (data), 613
‘administered,’ 483
and business cycles, 328
and costs, 256
and full employment, 510
and investment, 864
and unemployment, 449
as cure for recession, 520
as remedy for unemployment, 530
as taxation, 197
as the means to destroy capitalism, 865
as understood by Pres. Truman, 80
as zero sum game, 628
blessings of, 274
caused by union activity, 481
causes of and effects of, 59
causes of, 39, 100, 184, 209, 252, 480, 494, 863
creeping vs. galloping, 488
creeping, 483
creeping, effects of, 563
curbing of in Europe, 265
dangers of, 462
discoordinating effects of, 801
dual effects of, 62
during the French Revolution, 59
effect of strikes on, 436
end of, 299
European and American, 803
expected vs. unexpected, 483
expected, 563
exporting of by the U.S., 770
full employment from, 427
how to beat, 628
how to halt, 548
institutional causes of, 481
international (data), 479
measures against passed by Congress 1948, 93
measures against suggested, 91
measures against, 79
monetary, M1 vs. M2, 531
moral aspects of, 614
or tight money, 479
policies creating, 619
political pressure for, 207, 426
price controls as remedy for, 213
program against, 221
protecting yourself from, 819
repressed, causes and cures, 95
Truman’s eight-point plan against, 91
viewed as a moral issue, xxxii
vs. deflation, 71
vs. growth, 801
with wage and price controls, 483
Inflation for beginners, 229–34
Inflationary policies
inevitable end of, 484
under Eisenhower, 315
Inflationary proposals, 354
the end of, 425
Interest rate ceilings, 574
Interest rate policy, 205
Interest rates
effects of, 809
drivers of, 539
fixing, 854
structure of, xxxiv
International aid, opportunity cost of, 132
International Bank for Reconstruction and Development (IBRD), 40, 168, 591
International Coffee Agreement, 751, 802
International Cooperation Administration, 489, 591
International Development Advisory Board, 210
International Development Association, 591
International economic institutions, proposals for, 284
International Economic Policy Association (IEPA), 868
International Finance Corp., 591
International investment, 437
protection of, 450
International Ladies Garment Workers, 712
International Longshoremen’s Association, 362
International Monetary Fund (IMF), xlvi, 20, 23, 38, 49, 70, 73, 99, 107, 142, 165, 189, 222, 244, 331, 386, 437, 591, 632, 647, 671, 800, 816, 828
contribution of to world inflation, 682
inflationary policies by, 728
Keynesian theories of, 223
members, inflationary policies of, 491
mock-gold system, 667
policies, consequences of, 487
promotion of controls by, 157
reform or dissolution of, 850
system, inflationary nature of, 777
the need to dismantle, 776
International organizations, weaknesses in, 681
International trade, 99
free or managed, 385
International Wheat Agreement, 128, 760
Internationalism, false, 632
Interregnum, presidential, 621
Intimidation, union rights to, 858
Iran, 322
seizure of oil properties by, 438
Iraq, overturn in, 531
Isolationism, xlvii
Italy
economic status of, 324
loans to, 797
recession in (1964), 806
Johns-Manville Corporation, 21
Johnson administration, economic problems faced by, 825
Johnson-Humphrey economic policies, 823
Jones-Costigan Act of 1934, 624
Kennedy administration
first 100 days of, 663
initial economic policies of, 647
most urgent task of, 638
Kennedy-Landrum-Griffith Law, 610
Keynesian
consumption function, errors of, 423
policies, 793
stimulus, 701
thinking, 358
Keynesian economics, xxxiii–xxxv, 125, 136, 174, 343
as promised by President Kennedy, 652
critiqued, 763
Keynesianism, 748
as orthodoxy, 843
critics of, 843
Knowledge problem, 188
Kohler Co., NLRB decision for, 630
Korea, military defeat in, 201
European contributions to, 182
proposed economic measures for, 180, 181
Labor Day, 49
Labor law (Kennedy bill), 568, 571
Labor law, 9, 126, 163, 558, 567, 568, 580, 582, 588, 589, 601, 609, 630, 669, 699, 735, 742, 745, 746, 770, 833, 842, 844, 849, 858, 870, 871
changes proposed to, 538
federal vs. state, 384
historically reviewed, 704
needed revisions to, 591
powers sought in by President Kennedy, 672
reforms proposed to, 523
reforms proposed, 590
revisions to, 386
Labor Policy, 3, 11, 165, 269, 287, 307, 334, 364, 432, 501
and unions, xxl–xliv
U.S., overview of, 262
Labor productivity and wages, 841
Labor relations, liberty in, 630
Labor union bosses, dictatorship by, 581
Labor unions
lack of need for, 465
power of, 13
Labor violence, xliii
Laffer curve, anticipated, 76, 237, 322, 348, 352, 476, 562, 731
Lame-duck presidency, 621
Land reform, 614
as requirement for American aid, 851
Landrum-Griffin Act of 1959, xliii
Latin American Bank, 591
Lea Act (“anti-Petrillo law”), 12
League of Nations, 40
Legal debt limit, raising, 192
Lend-Lease plan, 43
Lesinski bill, 126
Liberalism
classical and modern, 403
modern, defined, 811
true, 812
Libertarians, 812
Liberty bonds, default on, 192
Liberty, 604
suggested readings on, 442
Limited resources, unlimited wants, 173
Line item veto, 378, 381, 387, 467, 471, 473, 556, 602, 606
Liquidity preference theory, Keynesian, 539
Liquidity
international shortage of, 816
required amount of, 839
Literary economics, 448
Loopholes, 733
Lustron Corp., 208
Machine tool industry, 286
Marshall Plan, xlvii, 43, 49, 52, 53, 65, 67, 74, 78, 88, 89, 101, 106, 111, 121, 139, 143, 147, 159, 167, 177, 190, 192, 282, 327
European use of, 55
exploitation of by European countries, 120
extension of, 162
global, proposed, 161
goals of, 668
proposed changes to, 162
tapering off of, 157
unclear goals of, 117
Marxism, 288
and income taxes, 66
Marxist economics, 440
Maryland Drydock case, 27
Mathematical economics, 448
‘Me Too—But Not As Much,’ 639
Mea Culpism, 541
Medical drugs
efficacy of, 723
safety of, 723
Medicare, 615
beginnings of, 612
Mercantilism, 653, 655, 788, 824
as promoted by J.K. Galbraith, 637
Mergers and acquisitions, 818
Mexico
foreign exchange balances of, 23
inflationary boom in, 22
oil production of, 23
Middle East
foreign aid to, 531
oil reserves in, 531
Middle Eastern Fund, 591
Military aid, xlv, 89, 135, 220, 256
conditions for, 196
programs, 192
results of, 196
to Europe, financing of, 127
uses for, 129
Minimum wage, 85, 112, 137, 169, 656, 798, 808, 862
consequences of, 115
effects of increases in, 389
groups hurt by, 863
Mises-Hayek thesis, 435
Monetary and fiscal policy, 579
Monetary inflation vs. price inflation, 378
Monetary management, 148
Monetary policy, 59, 182, 184, 186, 187, 191, 202, 213, 215, 218, 229, 239, 271, 293, 306, 416, 425, 426, 427, 441, 460, 497, 509, 611, 619, 663, 837, 857
contradictory goals of, 482
international, 775
role of, 854
rules, 462
tightening of, 404
time lags in, 481
Monetary theory, 229–234
Monetary transmission mechanism, 202
Monetary units, 657
Monetization of Treasury bonds, 61
Money supply
constant or growing, 431
expanded, resting places for, 531
Money
multiplier, 509
supply of, 202
Mongol Hordes, invasion of Europe by, 301
Monopoly, 415
in labor markets, 416
Mont Pelerin Society, xxviii, 539, 587, 679, 680
Montgomery Ward, seizure of, 263
Moon, landing a man on, 666
Moral disarmament, 498
Moreell task force, 389
Most-favored-nation policy, 693
Mount Clemens Pottery case, 17, 26
Mutual Security Agency (MSA), 284
National Association of Home Builders, 5
National Association of Manufacturers (NAM), 222, 494, 705
National Bureau of Economic Research (NBER), 844
National debt
causes of, 622
ceiling, raising of, 533
default on through inflation, 192
discussed by Hume, 622
international data on, 491, 618
repayment of by inflation, 572
size and growth of, 617
ways to default on, 490
National Defense, 19
National Economic Council, proposed, 457
National emergency, 201
National Housing Act (1950), 180
National Industrial Conference Board (NICB), 117
National Industrial Conference Board, 55
National interest, 710
National Labor Relations Act of 1935, xl
National Labor Relations Board (NLRB), xxxviii, 10, 13, 27, 40, 124
National Planning Association, 354
National Security Resources Board, 178
National security, 395
Nationalist China, inflation in, 274
Nationalization, xliii, 226, 259, 262
and strikes, 266
Natural gas, regulation of, 417
Nazism
economic policies of, 261
seeds of, 614
Neoconservatism, xxxvii
New Collectivists, 622
New Deal, 343
policies under Eisenhower, 371
Republicans, 442
‘New economists,’ 862
New York City
electrical workers’ strike (1962), 699
hospital strike (1959), 571
newspaper strike (1963), 746
overcrowded traffic in, 593
transit strike (1966), 858
New York subway, 869
privatization of, 565
profits of, 630
New York Transit Authority, subsidization of, 869
News as reported by the press, 849
Nixon and Dewey (1960), 634
Norris-LaGuardia Act, xliii, 13, 145, 266, 269, 487, 559
North Atlantic Treaty Organization (NATO), 219, 505
Office of Price Administration (OPA), xxxi, 7, 53, 58, 217
Office of Price Stabilization (OPS), 205, 217, 223
Office of War Mobilization and Reconversion (OWMR), 14
Oil
fields, nationalization of by Iran, 225
import quotas for, 584
international market for, 584
Omni-competence, delusions of, 761
Opportunity cost, 113
Organization for Economic Cooperation and Development (OECD), 729
Organization for European Economic Cooperation (OEEC, later OECD), 111
Organization for Trade Cooperation (OTC), 385
Organization of American States (OAS), 633
Output growth, USA vs. USSR, 525
Overtime pay, 390
and employment, 790
Packard case, 27
Paper money
issued by the Continental Congress, 822
praise of, 150
Parity principle, 216
Parity, 217
Patents, medical, 724
Pay-as-we-go system, 212
PE ratios, 532
Peace dividend, effects of, 305
Peenemünde, 496
‘People’s capitalism,’ 440
Peronism, 802
Peru
exchange controls in, 105, 106
foreign aid to, 522
Peruvian currency, floating exchange rate of, 157
Petroleos Mexicanos (Pemex), 23
Pharmaceutical industry, anti-trust action against, 676
Philadelphia transport strike (1943), racial aspects of, 826
Picketing
as intimidation, 334
coercive, 559
Pilgrims, communism among, 131
Planning and economic controls, xxxviii–xlii
Planning, long term, 275
Plymouth Bay Colony, 131
Point Four Program (1949), xlix, 122, 133, 168, 172, 203, 210, 225, 268
folly of, 132
Poland
food riots in (1956), 435
industrial production in, 448
Political labels, power of, 826
Poor, economic policies to help, 747
Poorhouse socialism, 95
Positivism, 724
Post-war reconstruction, xlvi
Potsdam Agreement, 72
Poverty
and belief in communism, 778
and free markets, 60
how to restore, 636
Presidency, burdens of, 411
Presidential spending authority, 701
Presidential succession, 397, 468, 499, 621, 625, 779, 780, 787
rules proposed for, 283, 285, 286
uncertainty from, 286
Presidential transition (1961), 649
Price and wage controls, 218
opposed by the AFBF, 215
Price and wage freeze (1951), 205
Price Control Extension Act, 3
Price control holiday, 6
Price controls, 3, 5, 50, 56, 58, 77, 105, 182, 184, 186, 201, 216, 220, 229, 252, 273, 495
arguments against, 212
as opposed by NAM, 222
Baruch Plan for, 185
cases for and against, 255
consequences of in agriculture, 82
end of, 299
harmful effects of, 869
history of, 119
intelligent, 201
partial, effects of, 7
political aspects of, 206
threatened in steel industry, 683
Price Decontrol Board, 3, 6, 9
Price decontrol, speed of, 6
Price deflation (1953), 304
Price fixing, 35
as remedy for inflation, 223
by Presidential fiat, 754
extra-legal, by President Johnson, 829
harm done by, 866
Price supports
in agriculture, 53
surpluses caused by, 626
Price system
destruction of by unionism, 147
Prices
and wages, ‘guideposts’ for, 866
government fixing of, 146
government ‘guidelines’ for, 853
presidential influence on, 707
relative, vs. price levels, 237
Private capital, how to attract, 164
Private Investment
conditions for, 118
effects of, 397
Private price setting, presidential power over, 708
Private sector, public sector as parasite on, 671
Production, military vs. civilian, 242
‘Productionists,’ 820
Productivity and wages, 510, 700
Productivity of labor and capital, 251
Profit and loss system, 226
Profit squeeze, 5
Profits
and wages, covariance of (data), 433–34
attempts to control, 226
average rates of, 688
corporate, excessive measures of, 54
correct accounting for under inflation, 108
normal/excess/war/windfall, 193
role of under capitalism, 193
uniform percentage for all, xxxix
Progress
nature of, 394
prevention of by unions, 849
Propaganda, need for, 375
Propensity to work, 464
inflation leading to, 824
Prudence, folly of, 821
Public choice arguments, 409
Public Choice School, xxxvi
Public debt, 60
Public interest, government actions in, 708
Public ownership, 869
Public sector
as parasitic on the private sector, 761
supposed poverty of, 620
Public works, measuring economic efficiency of, 389
self perpetuating, 131
Punta Del Este declaration, 686
Purchasing power theory of wages, 506
Purchasing power, loss of (data), 430
Quotas and tariffs, 702
Racism in a market economy, 825
Radcliffe Report, 585
Railway Labor Act of 1926, xlii, 11, 82, 771
Rationing, 197
Recession
ways to deal with, 510
Recessions compared, 1920 to 1929, 535
Reconstruction Finance Corp. (RFC), 181, 207, 317, 360
changed role of, 207
extended life of, 207
Recovery, ideological, 60
Redistribution and incentives, 789
Regulation vs. freedom, 461
Religion and Marxism, 685
Rent ceilings, 9
Rent control, xxxix, 19, 42, 119
consequences of, 111
self-perpetuating nature of, 171
Rental prices, determination of by auction, 166
Rentier, euthanasia of, 429
Reparations, 73
Repressed inflation, 30
Republican me-too mood, 625
Republican party platform, economics in, 87
Republican party, muddled philosophy of, 116
Reserve ratios, 93
for member banks, 80
Reserve requirements, 93, 185, 191, 202, 229, 509
for Federal Reserve Banks, 80
Resources, supply of, 275
Restraint of trade, 846
Retroactive law, 781
Revaluation, 486
Revenue Acts of 1942 and 1943, xliv
Revenues vs. tax rates (data), 352
Right-to-work laws, xlii, 364, 842
Risk, socialization of, 133
Risk-taking, 765
Rockefeller Brothers Fund, 520
Roundaboutness, 575
Rueff proposal, 840
Rule of law, 604
violations of, 450
Russia,
industrial output of, 576
moves by towards capitalism, 734
standard of living in, 576
Saving, the need for, 575
Savings, the meaning of, 300
Schachtism, 36
Schuman Plan, 437
SCOTUS, legislation by, 17
Sectors
public vs. private, 725
voluntary vs. coercive, 725
Securities and Exchange Commission (SEC) regulations, effects of, 804
‘Sick dollar,’ 800
Silver coins, shortage of (1964), 827
Silver, value of, 827
Single European currency, 529
Small Business Administration (SBA), 317, 360
lending policies of, 333
Small businesses, federal loans to, 317
Smith Cabinet Manufacturing Co., 126
Smith-Connally Act, 11
Smuggling, 34
Soaking the rich, effects on future generations of, 76
Social security (OASDI), 342, 517, 537, 612
actuarial basis for, 615
benefits, 20
insurance or welfare, 618
unfunded liabilities of, xxxvii, 615, 618, 719
vs. private pensions, 144
Socialism, 239
abroad, financing of, 675
as practiced in the U.S., 868
as recommended by American officials, 685
economics of, 280
foreign aid for, 658
in both parties, 391
inadequate degree of, 604
inefficient production under, 176
isolationist nature of, 176
middle-of-the-road, in America, 130
parasitic on capitalism, 189
price setting under, 188
subsidized via foreign aid, 627
vs. freedom, 720
vs. liberalism, 437
Socialist planning, U.S. support for, 609
Socialized medicine, 612
Soviet economic growth, 661
Soviet space program, 496, 661
first step of, 492
Soviet Union
appeasement of, 616
economic growth of, xxxv
foreign trade data for, 558
production statistics (data), 474
Space program
by-products from, 726
opportunity cost of, 666
value of, 726
Space race, 496
Spain, economic status of, 545
Speculation, 344
Speculators, 51
Speculators, hoarders, and profiteers, as responsible for inflation, 205
Spending
and inflation, 309
ceiling on, 248
defense and non-defense, 862
difficulty of cutting, 466
how to curb, 606
military, waste in, 250
needed cuts in, 862
non-defense (data), 462
off-budget, 462
pro-cyclical, 461
public, salvation through, 174
reductions in, 250
triangular competition in, 387
Spending cuts
proposed, 715
with tax cuts, 466
Sputnik, economic consequences of, 492
Stabilization for redistribution, 264
Stabilizers, built-in, 512
Stabilizing programs, destabilizing effects of, 699
Stabilizing the economy, 19
Stand-by controls, 311
Stand-by powers (of wage and price controls), 303
State Department, anti-capitalist attitudes of, 694
State of the Union
(1950), 203
(1952), 249
(1953), 298
(1955), 371
State planning, 97
and rent control, 42
Statism, international, 211
‘Statism,’ usage of, 253
Statistical indicators, 682
Statistical prediction, usefulness of, 682
Statistics and propaganda, 434
Steel industry
nationalization of, 259
prices and wages in (1963), 755
seizure of, 266
strikes in, xlii
wage rates imposed on, 841
wages and benefits in, 141
Steel price increases, President Kennedy’s reaction to, 707
Steel prices
and wages, 841
political aspects of, 76
Steel strike
(1952), consequences of, 272, 273
(1959), threat of, 568
(1960), resolution of, 600
Sterling crisis and labor party policies, 828
Stock market prices, drivers of, 532
Stock yields and bond yields
convergence of, 533
effects of inflation on, 533
Stock-market boom, causes of, 378
Strategic stockpile programs, effects of, 698
Strike, the right to, 126
Strikebreaking, 859
Strikes
effects of on workers, 568, 577
encouragement of by labor laws, 870
inflationary effects of, 600
losses by strikers from, 555, 579
losses created by, 741
the “right to win”, 581
union motives for, 577
use of the National Guard in support of, 596
Sub-prime lending, 392
Subsidies, 218
Suez Canal, seizure of, 438, 450, 451, 457, 458, 459
Sugar market, controls on, 717
Sugar policy and Cuba, 608
Sugar, import quotas for, 623
Supplementary unemployment benefits (SUB), 522
Supply side arguments (anticipated), xlv, 28
Sweden, post-war situation in, 34
Switzerland
economic status of (1961), 680
free exchange rates in, 31
political constitution of, 680
post-war trade issues in, 31
Taft-Hartley Act, xlii, 40, 41, 44, 45, 49, 85, 126, 138, 145, 146, 165, 307, 334, 363, 559, 844
improvements upon, 78
proposed changes to, 124
union attitudes to, 45
‘Taking out the Goat,’ 161
Tariff policies, EEC vs. EFTA, 540
and quotas, 712
preferred to quotas, 623
presidential powers to impose, 696
reductions of, 464
Tax burden on the economy, xlv
Tax cuts
and deficits, 731
borrowing money to fund, 788
choice between, 397
Keynesian or classical, 792
proposed, 715
spending, inflation, 769
vs. tax reforms, 752
Tax exemptions, increases in, 348
Tax Policy, xliv–xlvi
Tax rates (1952), 247
vs. tax revenues, 791
Tax rates, 322
changes to, 769
effects of, 303
marginal, 731
marginal, reduction of, 722
progressive, 348
punitive, 752
U.S. and Swedish, compared, 729
U.S. and British, compared, 727
Tax reforms proposed, 477, 714, 746, 758
Taxation
limits of, 247
Swedish and progressive, 756
Taxes
and incentives, 476
on ‘the rich,’ 476
how to cut, 397
presidential powers to impose, 696
Taxpayer, plight of, 158
Tennessee Valley Authority (TVA),
failures of, 388
privatization of, 566
Tenth Amendment, 364
Texas
as a two-party state, 102
economy of, 101
electoral politics of, 101
production of crude oil in, 101
Tires, cost of using (data), 268
Top tax rates, effect of on investment, 788
Total mobilization, 197
Totalitarian personality, how to recognize, 170
Trade agreements, folly of, 128
Trade balance, 190
Trade barriers, 690
how to remove, 702
Trade deficits in Europe, 92
Trade policy, 343, 523, 655, 693, 711
and foreign aid, 372
Trade
how to liberate, 711
managed or free, 632
restrictions on, xlviii
semi-free, 464
Treasury bonds, interest rate ceiling on, 574, 583, 602, 610, 611, 625
Treasury certificates, one-year, interest rates on, 94
Treasury securities, purchases of by the Federal Reserve, 94
Treaty of Rome, 540
Truman administration, short evaluation of, 282
Truman caliphate, 264
Turning points, predicting, 586
U.S. Development Loan Fund, 591
U.S. missile program
how to fund, 500
paying for, 496
U-2 crisis, 616
Unemployment
1931–1958 (data), 518–19
and interest rates, relations between (data), 544
and relative wages, 795
benefits, 169
causes of, 512
compensation, effects of, 512
creating more of, 169
deficits as cure for, 821
from automation, 808
from obsolete skills, 808
insurance vs. welfare, 517
insurance, perverse effects of, 515
measurements vs. estimates, 520
union causes of, 565
Union arrogance, 432
enabling factors for, 487
Union
coercion, 571
corruption and criminality, xliii
intimidation, 602
power vs. liberty, 501
power, curbing of by legislation, 558
violence, fear of, 858
wage contracts, 257
wage increases and unemployment, 524
wages, 251
Union shop contracts, 844
Unionism
and inflation, 582
and anti-trust laws, 676
Unions
abilities of, 735
and gangsterism, 362
and racism, 825
and strikes, 334
and the law, 472
bad aspects of, 465
curbs on, 523
government concessions to, 82
industry wide, 147
industry wide, and compulsory bargaining, 145
intransigence of, 530
power of, 578
strength of, 704
vs. freedom of the press, 752
United Auto Workers (UAW), 487, 512, 613
asking for layoffs, 512
United Furniture Workers of America, 126
United Mine Workers, 44
United Nations (UN), 159, 180, 437, 632, 681
American role in, 633
role of, 451
weaknesses of, 457
United States Information Agency (USIA), 375, 440
Urban planning, 593
Veterans’ benefits, 19
Vice presidency, abolition of, 468, 779
Vietnam war, financing of, 857
Voice of America (VOA), 375, 440
Wage and price controls, 197, 311
phasing out of, 258
selective, 187
threats of, 462
Wage
boards, 3
controls, 287
fixing, 12
settlements dictated by the Federal government, 745
stabilization, 257
Wage increases
a fourth round of, 135
inflationary effect of, 135
mandated, effects of, 17
political influences on, 85
Wage rates
and unemployment, 516
data 1939–1947, 77
vs. total wage bill, 510
Wage Stabilization Board (WSB), xlii, 187, 220, 228, 257, 271
Wage-price spiral, xl, 228, 394, 436, 480, 581, 654
and the 1960 steel strike, 599
Wages
and profits, statistics for, 14
as percent of corporate expenses, 21
as income, 506
effect of strikes on, 436
free or controlled, 710
government fixing of, 146
lack of uniformity of, 77
nominal vs. real, 654
real and nominal (data), 348
stabilization of, 3
union effects on, 347
vs. benefits, 143
vs. profits, 506
Wagner Act, xl, xli, 3, 12, 26, 40, 50, 85, 124, 145
changes to, 9
proposed revisions to, 13
Wagner-Taft-Hartley Act, 169, 260, 266, 269, 487
Walsh-Healey Act, xliii, 137, 217, 218, 371, 390
War
economic transition to, 178
profits tax, 184
spending, 183
taxes, 183
War Stabilization Board, 251
Watchdog committees, proposed, 362
Water shortage, dealing with, 847
Water, usage rules vs. unit pricing for, 847
‘We are all Keynesians now,’ xxxiv
Welfare state, xxxv–xxxviii, 760
bankruptcy of, 123
bipartisan desire for, 605
origins of, 239
total, 624
unstoppable growth of, 820
Western civilization, weakness of, 499
‘What is seen and what is not seen,’ 158
Wheat
price controls on, vote against by farmers, 759
price supports for, 759
Work week, shortening of, 712
Worker productivity, xli
Working hours, defined by SCOTUS, 18
World Bank, xlii, 361, 591, 632
World Council of Churches, 96
World monetary system, possible collapse of, 670
World super-bank, proposal for, 647
Yellow-dog contracts, 844
Yugoslavia, aid to, 192
Business Tides: The Newsweek Era of Henry Hazlitt
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