The Economy: Gone Guideposts

First the Administration of John F. Kennedy, and then the Administration of Lyndon Johnson, tied up to "guide-posts." Under these, the U.S. Government tried to fight inflation by urging both labor, in its wage demands, and industry, in its pricing, to hold to annual increases of no more than 3.2%. Kennedy used them as a talking point; Johnson attempted to turn them into gospel. Last week, the guideposts were shredded and, ironically, the tearing blow had been delivered by none other than L.B.J.

In his abortive effort to settle the airline strike, the...

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