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Page 8 THIS WEEK THE NEWS AND NEXT by Ray Argyle To the housewife watching prices go up on bread, milk and other foods, to the worker look- ing at his reduced take-home pay because of pension deduc- tions, and to the employer searching for revenue to meet wage demands, it seemed this week as if the price spiral might be getting out of hand. The steady rise in prices and wages of the past several years has cushioned Canadians to the idea of creeping inflation. But in recent weeks, it seemed the price increases that are normal- ly spread over many months were coming all at once. Has the boom become too hot to handle? Have the days of easy money -- for most, but not all Canadians -- reached their point of reckoning? Despite Prime Minister Pear- son's statement that the Govern- ment has no intention of intro- ducing premature measures against inflation, there is mounting wonder across the country if the time has not ar- rived to slow down the boom be- fore it becomes a bust. The PM made reassuring com- ments in receiving a delegation from the Canadian Labor Con- gress. The Congress was in Otta- wa to tell the government they have been able to find no evi- dence of inflation in Canada. There is no need for price or wage restraints, the CLC told the government. It would have been politically embarrassing for Mr. Pearson to have answered any differently. Facing inflation is like pitching a no-hit ball game. You don't talk about it until after the ninth inning. But ironically, another labor delegation showed up in Ottawa at about the same time. Que- bec's Confederation of National Trade Unions went before the Cabinet to argue in favor of a federal price control board. Companies wishing to increase prices would have to justify them before getting approval. Short of wartime conditions, such a proposal is unaccepta- ble to Canadians. But there was somewhat more merit in the CNTU's reminder that wage in- creases are not always the main cause of price boosts. They are not, although they are a conven- ient blame. Inflation usually occurs when manufacturing industries are operating close to capacity, and when there is enough pur- z > 3 +E & ag = 2 = = = = n z Fea n = ny s = periods. Days Of Easy Money Crippled children are encourage to par- ticipate in outdoor recreation like base- ball. Easter Seal donations help them develop new skills during rehabilitation chasing power around so that people will pay higher prices, even though they gripe while doing so. Exactly this situation applies in Canada today. In addition, the expansion of government spending and wel- fare programs is generating more consumer purchasing pow- er. The new purchasing power is coming not out of higher earn- ings from a more productive economy, but from re-distribu- tion of money from taxpayers who would normally save a por- tion of their income, to citizens with such low incomes that they must immediately spend any benefits received. Ottawa's 1966-67 spending pro- gram will reach almost $10 bil- lion. Mr. Pearson accepts an old age pension increase as "inevi- table." Whether furtlrer tax in- creases can be avoided depends not only on whether the econo- my continues to boom (in which case we might get away without major increases) but on what fiscal policy the government adopts. If Ottawa decides that infla- tion is a threat, it could opt for austerity by raising taxes to curb spending power; by insti- tuting credit controls requiring substantial down payments for anything bought on time; and by using the Bank of Canada tu raise interest rates and so curb borrowings. These measures would be ex- ceedingly unpopular. It is to be hoped they won't be needed. An inflation of two per cent. per year is apparently acceptable to present- day economists. But if prices continue to rise this year at the rate they have through January and February, we could be over the two per cent. mark by fall. Thus, it is the rate of increase which must be watched. Food prices, for example, have in- creased. 36 per cent. in Canada since 1949 but wages went up 117 per cent. in the same period. No one will get hurt at that rate. The overall cost of living index has risen 43 per cent. since 1949, but workers are much 'better off today than 17 years ago. Average industrial wages rose by more than six per cent. in the last year alone. About all we can do is relax and enjoy the days of easy mon- ey -- and hope they don't get too easy. March 3, 1966 Featured skaters - Molly Harris and Shirley Phillips. ICE FROLICS (Continued from page 7) Hayes, N'western Ontario Jr.Ladies Champion, 1965 gave a delightful solo. Pamela and Jamie Cummings appeared as Cool Capers to a delightful beat. Guest artist, the lovely Miss Jennifer Wilkins, Triple Gold Medallist, gave a beautiful performance During intermission the audience were entertained by King James and the Axemen with Cosmo Filane as vocalist. The lovely senior skaters appeared, this time in a smooth Hawaiian number featuring Shirley Phillips. "A Sweet Little Girl" Jackie Turner presented a solo and the Chopty Twins were precise in Pair Precision. A delightful solo was given by Jamie Cummings and the club four, Cathy West, Cecile Stuart, Gail Simmer and Brooke Rapke were featured in The Bonnie Banks of Loch Lomond. Artistic Moods was presented by another talented senior skater, Cheryl Duncan and a solo performance featured Rosemary Pattison as "A Petite Ballerina." Teen Town boys Lloyd Phillips and Bob Robinson gave an exciting exhibition of Barrel Jumping and an artistic display of pair skating was given by Chery! Duncan and Elizabeth Hayes. Sixteen senior skaters performed a "Precision in Rh ythm" number and to close the show guest artist Jennifer Wilkins gave another delightful performance Following the Grand Finale a gift was pre sented to Miss Wilkins by Wendy Evans-Smith on Saturday evening and on Sunday afternoon Joanne Stevens presented a gift to Mrs.Pattison on behalf of the entire club, in appreciation for her hard work and patience. Gifts were also given to the Teen Town boys by Leslie Josus. Reeve W.Adamo was the winner of a new suit when ticket No.354 was drawn in the News office on Tuesday morning, to decide who was to be recipient of the Kiwanis Club suit-of-the month draw. CARD OF THANKS - The family of Mrs .Alex McGregor wish to thank the many friends whose flowers, cards and good wishes made her one hun- dredth birthday such a happy occasion.