STATE OF BUSINESS: Wanted: Price Cuts

In 1958's paradoxical recession, perhaps the biggest paradox of all is the leapfrogging race between prices and wages that has continued long after the general economy paused for a breath. Though price cuts are on the rise (see Metals), they have not been fast or sharp enough to hold down the steady rise in the cost-of-living index. Nor has labor trimmed its wage demands in the face of poor sales and lower profits (see Autos). Last week Chicago Federal Reserve President Carl E. Allen took both management and labor to task for what he called a "price and cost...

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