THE ECONOMY: The Reuther Plan

In a time of growing public concern about inflation, United Automobile Workers' President Walter Reuther last week fired off an astute challenge to the presidents of General Motors, Chrysler and Ford. He proposed that 1) the Big Three should cut prices on 1958 models by a specific $100 below prices for 1957 models—or more; 2) the U.A.W. would then give nonspecific "full consideration" to lower company earnings in framing its 1958 demands (reportedly to include the four-day week and a substantial wage increase); and 3) if U.A.W. demands appeared to force the companies to raise prices again, U.A.W. was...

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