Everyone knows that business profits are high. Are they too high? To this short, explosive question, a Senate subcommittee, weighing the pros & cons of an excess profits tax, last week got some long-winded and contradictory answers.
Harvard's white-haired Sumner Slichter, an economist whom businessmen understand, thought that profits were not really high, although he conceded that they might look that way.
The reason for this, said Slichter, was that U.S. businessmen have not yet learned to write off the inflationary water-in their profits. When the value of inventories rose, businessmen took a...
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