We would hasten to add, however, that the Council staff which has gathered considerable experience and performed as well as could be expected need not be lost to government. Work on the internal government contributions to our inflation problems is essential. Beyond this, if it is necessary for the Council of Economic Advisers to beef up its staff, this cadre of experienced personnel undoubtedly would be useful. What would not be useful is continuing to pretend that COWPS' monitoring role will in any way "reduce our vulnerability to new inflationary pressures and to slow the current inflation." This is dangerous economic folklore. Most economists agree that the single most important need for sustaining economic growth is to encourage confidence. Dismantling the Council on Wage and Price Stability would be a positive first step. Senate Banking, Housing and Urban Affairs Committee Dear Senator Proxmire: The canning industry would like the following statement in support of extension of the life of the Council on Wage and Price Stability and economic impact statements to be read for the record on S. 1542, subject of hearings before the Banking, Housing and Urban Affairs Committee, July 19, 1977. "The National Canners Association supports the continuation of the Council of Wage and Price Stability under its present authority. Over the past three years the Council has published à number of impressive studies that have played a useful role in contributing to the general public understanding of inflationary factors in the economy. Thus, the association would support the two-year extension as provided in S. 1542. It further would support another provision in your bill that provides that data voluntarily submitted to the Council be given the same protection that information acquired through use of subpoenas would be given. The association, however, remains unalterably opposed to any expansion the of the authority of the Counet in such a way as to exert control over wages or prices in any sector of the economy. In addition the canning industry supports legislative Documents detailing the canning industry positions on COWPS extension and economic impact statements, as presented to the House Banking Finance and Urban Affairs Committee earlier this year on H.R. 3184 (now H.R. 6951), the companion bill 5. 1542, and on H.R. 2100, not addressed by S. 1542, are supplied for the record. Rec'd 7/21/27 Page 2 Senator Proxmire Also supplied is a statement on economic impact statements submitted to the Council of Economic Advisors, May 10, 1977." Thank you for your attention to the views of the industry as relates to control of inflationary factors in the economy. Sincerely, Palan Jerome R. Gulan Attachments CC: The Honorable William D. Moorhead. STATEMENT OF THE NATIONAL CANNERS ASSOCIATION ON II.R. 2100 AND H.R. 3184 BEFORE THE HOUSE COMMITTEE ON BANKING, FINANCE AND URBAN AI FAIRS The National Canners Association and its more than 500 members very much appreciate this opportunity to present before this Committee the views of the canning industry on 11 a bill to extend the life of the Council on H.R. 3184 and on II. R. 2100 a bill to require the preparation of economic impact statements with respect to any proposed regulation which would have a significant impact on prices and employment. The members of this Association pack approximately, 90 percent of the national production of canned foods, including canned fruits, vegetables, juices, meat, fish and specialties. Every member of the Association is vitally affected by the inflationary spiral of prices and wages, and by the costly burden of complying with the proliferating requirements of federal laws and regulations. Turning first to the bill to extend the life of the Council on Wage and Price Stability, the National Canners Association supports the continuation of the Council under its existing legislative authority, and with the additional authority that would be granted by H. R. 2100, which we will discuss in a moment. Over the past two years the Council on Wage and Price Stability has published a number of impressive studies that have played a useful role in contributing to the general public understanding of inflationary factors in the economy. More importantly, the Council has undertaken a series of studies analyzing certain proposed regulatory actions by federal agencies and assessing the inflationary and economic impact of such actions on the public. In a number of instances these studies have contributed significantly to an understanding of the regulation in question and the effect it would have upon the economy. In our view the Council on Wage and Price Stability should continue to serve these useful functions, and accordingly we support its extension, particularly if it is required under H. R. 2100 to prepare comments on draft economic impact statements accompanying proposed regulations. The canning industry is unalterably opposed, however, to any expansion of the authority of the Council in such a way as to exert control over wages or prices in any sector of the economy. Wage and price controls, whether they be by direct regulation of prices charged and wages paid, by pre-notification of wage or price increases, or by a mechanism of delay or postponement of wage or price adjustments, could be expected to have disastrous consequences for the economy in general, and for many of the producers, distributors and consumers of goods and services. During the period from August of 1971 through April of 1974 the federal government experimented with a number of different approaches |