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The Germans know by painful experience--their soaring inflation in
the 1920's--just how disastrous inflation can be and are not about
to embark on that road again. Then too, if the Germans pump air
into their economy now, this will only send wage costs upward,
which will be reflected in higher prices for German products.
Fully 25% of German goods are exported and they are already being
placed in a disadvantageous position relative to the declining
prices of U.S. goods.
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The problem is not with Germany, or with Japan, it's right here in
Washington. According to the lead editorial in the March 6, 1978
Business Week: "The U.S. is now out of step with L_th�7 international
economy •...in its effort to hustle the economy into expansion, it
is risking higher rates of inflation.... Because the U.S. is out of
step, its balance-of-payments deficit is soaring and the dollar is
being hammered down to record lows in international currency markets.
"It is time for President Carter and
his
advisors to consider the
possibility that the Germans are right and they are wrong. Instead
of the artificial, inflationary growth generated by huge tax cuts
and mounting deficits, orderly growth based on investment rather
than consumption may be what the U.S. needs."
The only way out of the quagmire is for America to come to its senses
and tighten its belt. But is there any longer the collective cha
racter to do so? A recent poignent letter to the editor of the Los
�ng_eles !imes hits this angle of the story hard:
"The idea of asking West Germany to increase its inflation rate
is probably the most ludicrous action yet offered by the Carter
Administration. Because we have been profligate and have gotten
ourselves into a mess we ask them to do likewise. How utterly
ridiculous!
"When the oil embargo hit us and the Arabs established prices
devastating to our balance of trade, our inflationary affluent
society went gaily along using more and more oil each year a�1d
bringing_our dollar downward and downward to the lowest values
ever. /By contrast the aggressive Germans, who have no oil of
their own, have cut back on imports and actually sell more to OPEC
than they buy,;_7
"Our government leaders dream and refuse to accept reality. Their
answer is bigger budgets and larger deficits. And we want West
Germany to follow our lead. No way; they have already been there.
If
we are to survive we must do it on our own...'l'he American people
have been spoiled for too long."
--Gene Hogberg, News Bureau
LETTER COMi.-IENTS
Response to the STP A number of ministers have written to Dr. Kuhn .n
commenting
about
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aspects of tlw
sy�;tematic Theology Project. '--"
This week we are including several excerpts from these letters for
your interc�s t.