THE ECONOMY: Wages Up

When Congress passed the Defense Production Act last month, Chief Stabilizer Eric Johnston solemnly prophesied that the cost of living would soar anywhere from 5% to 8% in the next year. Last week Johnston himself took a step toward making his gloomy warning come true: he approved a Wage Stabilization Board's decision that all wages may now be tied to the cost-of-living index.

Months ago, Johnston and his highly movable stabilizers let wages break through the original ceilings of last January. Congress, in turn, when it wrote its control bill, permitted manufacturers and farmers to boost prices to make up...

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