INFLATIONARY TREND SEEN IN BRITAIN

Chronicle (Levin), 3 August 1946, Page 5

INFLATIONARY TREND SEEN IN BRITAIN

(Spec-ial Gurrespondent.)..,

spending boom and little .. to buy , ,

ReceiveJ Eriduv, 7 p.m. • LONDON, Aug. -2.. A Xutiunal Joint Advisory Counci j of employi'i'S 11ml tnulcs uiiiun leadeo at present mcctiiig in London, is con sidering measurcs recoinmended by tln Gm cninu'nt to ciieck inflatioTiar\ ! 1 rends. Oue proposal is tliat a national wagi jiolicy be ado]ilcd wliicli would, in circcl, Cn'czc wagcs at the present Jevei land permil oi' ineieases only as tln 'result of liiglier output. A second ]iroposa! wliicli is stated

to have tlie sujiport oi' uuion leaders, is itliat piore coiisunier goods, jiartieularly jclothing, furnitiire, liousehold equipmerit j cars and sports gear, be directed to I British shops. It is contended that it the British people had more things to buy with their money, lliere would be more iridueenieiit. to work harder, althougli it is recognised that auy diversion of coiisunier goods to the home 1 market must mean less goods for exjiort. Point. is given to these disciissions by the latest Alinistry of Labour returns wliicli leveal that during the last six montlis 4,5ffO,UUO British workers shared wage increases totalling over £1,750, 000 in addition to the fact that! income tax reductious Jeft a furtlier ; £.'5, 000, 000 in the poekets of 1 1,000,000 | people. This, it is considered, is oue | of the chief reasons for the jiresent spending boom which, in the absence of consumer goods, is tending to concen- 1 trate upon gambling and second lianti goods at inflateil prices. j The fact tliat the Government niade specilic leeoTiiniendations to Ihe Joint Advisorv Gouncil may indicatc tliat the Chancellor of tlie Exrhecpier has had second thoughts about his recent prediction to tlie Bournemouth Conferenee, that. the danger of inflation in Britain had .passed. Another disturbing trend revealed bv the Mini.strv of Labour, is that althongli wages are now 74 per cent. liiglier tlian in 1038, the houily output in almost all industries is decreasing. (