$136,000,000,000 --was the cost to the taxpayers up to January 1st, 1944, of fighting World War II. We have seen the record of comparative prices in the two wars. • We know that the cost of World War I was increased 72% by unnecessary price rises. We have seen on previous charts 6 comparisons showing the far greater inflationary pressures of World War II. If prices of war materials had increased to the same degree as during World War I 65 billion extra dollars would have been already added to the cost of the present war. Whether the actual figure would have been more or less than that huge sum is anybody's guess. HAS PRICE CONTROL Under the EMERGENCY -prices have been held -the cost of living index In establishing this record In World War I prices of industrial goods rose 77.8%. Production rose 26% The third year, then dropped to 25% the fourth In World War II the situation has been exactly reversed. Production has risen steadily to a 131.% peak, while industrial goods prices have risen only 21.8% PIG IRON HIGH AND LOW PRICES EACH YEAR WORLD WAR I INFLATION The record shows that Price Control has not stood in the way of progress. On the contrary it often has helped production. During the last war our industrialists, forced to buy necessary materials at fluctuating prices, were faced with serious problems. Some fearing a price collapse hesitated to build up inventories. Others seeing an opportunity for inflationary profits hoarded materials which should have gone to others. Under Price Control American industry has always known what prices it would be called upon to pay, the values of inven tory could be calculated with exactness. |