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Extra info for 20 MW Magnicon for ILC [tech rpt]
Comparisons will be made generally with 1939 as the base. It is not a perfect base because in many respects a free economy did not then exist. Nearly nine million of our labor force were then unemployed, which is usually associated with a condition where wage rates (and prices closely associated with wage rates) are too high relative to prices of farm products and other raw materials. Despite this, 1939 is perhaps the best base we can use for our purposes, all things considered. Deceptive Official Price Indexes Our present question involves knowing where prices now are and where they would be in a free market, and comparing the two.
The controls are there, or they are not there; whenever they are removed it must be done suddenly. It is like death, which can only come instantly. Anyone who holds that chaos would result if controls were all removed must be starting with the assumption that prices now are far away from what would prevail in a free market-that we are now far from the port of our destination. Otherwise there would be nothing to fear in freeing prices, because chaos would not result from their remaining where they now are, or near there.
It is this assumed increase in efficiency during wartime, with governmental controls, on which many persons base their confidence in governmental guidance of our economic affairs. " Does the general public believe that large increases in efficiency have occurred during the war, and so approve reconversion policies built around these assumed increases? Apparently it does. As evidence, we need only to call to mind the deluge of newsstories about the wonders of wartime production. We have been told that this great increase will justify much higher wage rates, that it will justify a much shorter work week without any 31 lower level of living, and also that we must somehow learn to consume the vast deluge of postwar production that this increased efficiency will bring.