IN its attempts to control inflation and simultaneously prevent severe recession, the Nixon Administration has used up most of its options. President Nixon has forsworn not only wage-price controls but also any "jawboning" intervention in individual pay and price decisions. Federal pay increases precipitated by the mail strike are wiping out the budget surplus that he had counted on to help restrain prices. In an election year, he can hardly call for higher taxes in order to frustrate inflation. Nor can he easily request lower taxes or much higher federal spending if recession...
To continue reading:
or
Log-In
