The Economy: Time to Touch the Brakes

There could no longer be any doubt last week that the U.S. is suffering from inflation. The only question was how serious it could become. Buoyed by Viet Nam spending and the momentum of a historymaking, 60-month expansion, the economy was surging ahead far faster than the Government had anticipated in January. Unemployment was down to a twelve-year low of 3.7%, and there were already serious shortages of construction workers, machinists and technicians. With factories operating at more than 90% of capacity, industrialists were planning to plow $60.2 billion into new equipment,...

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