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Meanwhile, Chancellor of the Exchequer Denis Healey had grim warnings for Britons about a new inflationary spiral. If wage increases sought by public service employees and other striking workers average 15%, the country could expect double-digit inflation by summer, reaching 13% by year's end (current rate: 9%). The wage hikes could add $6 billion to the cost of public services in Britain, which the Labor government might have to offset by raising taxes and cutting government expenditures by $3 billion. If so, the number of unemployed in the country could rise from about 1.5 million...
...Congress in an effort to arrive at a new social contract between the Labor government and organized labor. The stakes are high. Chancellor of the Exchequer Denis Healey warned last week that if the 15%-and-higher settlements sought by the unions are enacted, inflation will soar to double-digit rates. Moreover, unless taxes were raised to cover the higher wages, 100,000 local government workers, union members all, would have to be laid off. The Prime Minister could provoke a rebellion in his own Cabinet if he tries to balance the inflationary impact of high union settlements by slashing...
That is one of the most durable and emotional questions in American political debate. As inflation has soared close to double-digit rates, with no war or speculative boom or oil shortage to blame it on, deficit spending has come to be viewed as the fiscal mortal sin leading inexorably to inflationary damnation. The legislatures of 22 states have called for a constitutional amendment that would require a balanced budget every year. Amendment or not, that would be impossible, since no Administration could predict future revenues and expenditures accurately enough. It is also undesirable. There are circumstances in which...
State officials blame the foul-up on their decision to use California's list of three-letter, three-digit combinations rather than prepare their own. The officials tried to eliminate prefixes that might be offensive to Iowans but overlooked GAY. Says Scott County Treasurer William Cusack: "Out in California I'm sure there is a waiting line for GAY plates. But not in Iowa." He is offering to exchange the GAY plates-1,000 were issued -on payment...
...October's 1.3% rise, and the consumer is attacking his holiday shopping with gusto. Christmas sales are flat in many Midwest areas, but in Boston, Pittsburgh, Atlanta, Dallas, Houston and Beverly Hills, retailers report sales well ahead of last year. Some are even looking forward to double-digit Increases...