Forum: The Public's Economic Program

To the Editors:

It is little wonder that we have failed in solving the inflation problem. Most people confuse high prices with inflation, and many others, more knowledgeable, simply do not want to face up to the problem. Unfortunately, both groups include many members of Congress and the news media.

There is only one way to stop inflation, and that is to reduce Government spending drastically and increase the production of goods. The ironic thing is that the real solution is far less painful than the fakery cures to which we are being subjected. Doling out Government money at the consumer level cannot provide the necessary capital to get more production. It only accelerates demand, fuels more inflation and continues unemployment.

Let's really give the free enterprise system a chance to work. Reduce corporate income taxes, encourage consumer saving rather than spending, concentrate on encouraging more capital investment so that we'll have the means to increase production greatly. This will provide both jobs and goods. You can't spend your way out by "priming the pump." You must produce your way out.

Harlan J. Bauer Wheaton, III.

Somewhere in the frazzled mass there must be people quietly working on sources of energy—the wind, the waves, the sun—far more permanent than our limited amounts of oil. I wish that my Government would take my tax refund and use it for my children's threatened future rather than their perhaps slightly uncomfortable 1975.

Ann A. Paulson Wilmington, Del.

We have to be aware that the Middle East oil price increases lower our standard of living, and there is nothing that President Ford or anyone else in this country can do to alter that fact. Even military intervention, unthinkable for other reasons, would have to be financed through higher taxes or deficit spending (read: inflation).

It would seem that President Ford's tariff is the least objectionable alternative. At least the taxes collected would be recycled within our own economy.

Tim Merker Menominee, Mich.

Even a numskull like me can see contradictory messages coming from those who propose solutions to economic problems. The President believes that the public will use tax rebate money to rush out and buy new cars and help rescue the ailing auto industry. At the same time, he proposes upping the price of gasoline to discourage the use thereof. Now why would I want to buy a new car just to take it home and put it in the garage? Demand for fuel is governed less by price adjustment than by the number of vehicles in operation. Rationing, either direct or indirect, makes sense only if there is a corresponding reduction of demand by reducing the number of vehicles.

If gasoline is truly in short supply, there is no excuse for the unlimited manufacture of cars to eat it up. If, however, shoring up a sagging industry is the prime objective, fuel must be easily available. We can't have it both ways.

Edwin A. Lucado Jr. San Diego

I don't know what you expect of President Ford. You must think he should be some superhero and be able to pull us out of our problems just like that. Give the man a chance.