( 185 ) 



In addition, there is strong pressure against changing the 

 measures in the middle of the game. 



For these reasons it would appear reasonable to assume 

 that we have had more inflation than the official index num- 

 bers indicate, and that the inflationary gap is less than it is 

 generally assumed to be. 



Rolling Back the Cost of Living 



It is one job to roll back the official index of the cost of 

 living and another to roll back the real cost of the consumer's 

 living. There were proposals to spend $100,000,000 to roll 

 back the prices of seven commodities, to cut the cost of living 

 2.3 per cent. Stated another way, it was proposed that the 

 Federal government spend $100,000,000 and save about 

 $2,000,000,000. If the zeros are confusing the proposal may 

 be stated still another way. For a 5-cent expenditure the gov- 

 ernment proposed to save the consumer $1. Why not give 

 these supermen a billion dollars and let them roll back the 

 cost of living 20 billion dollars? The answer is simple. There 

 is a limit to the credulity of the American people. 



All Signs Point to Higher Prices 



Food prices will continue to move with the forces that in- 

 fluence all prices. They will respond to all the influences 

 making for a higher level of prices in general and, in addi- 

 tion, will respond to the probability of decreasing supplies 

 and increasing requirements. The government's bulwark 

 against price rises is probably weaker as regards food than 

 as regards other segments of its price-control policy. 



Many of the activities of the Department of Agriculture 

 were aimed at higher prices, but some of its programs were 

 aimed at lower prices or stabilization at present levels. OPA 

 attempts to maintain rigidly fixed prices, to roll back prices, 

 and, if not successful, makes grudging concessions to ris- 



