INFLATION: Subsidies?

When Leon Henderson's wholesale price ceiling went into effect, the U.S. entered into a controlled economy which made the old NRA strait jacket look like a sport shirt. Next week the retail ceiling will follow; the strait jacket will be laced up.

To most U.S. citizens, control was a less terrible word than inflation. But up cropped a new word, which may come to be as terrible as either: subsidy. The Office of Price Administration, knowing that some businessmen could never make a profit under a suddenly imposed and rigidly enforced ceiling, planned to subsidize their losses. This would mean...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!