HomeMy WebLinkAboutThe Lucknow Sentinel, 1976-09-22, Page 13GROWTH IN. AVERAGE
WEEKLY EARNINGS
(INDUSTRIAL COMPOSITE)
14:3%
GROWTH
IN REAL
EARNINGS
3.0%,
GROWTH IN AVERAGE
WoN gEul_TRYEIONINGS
COMPOSITE)
12:9%
GROWTH
IN REAL
EARNINGS
'3.6%
Before After
First 9 months-of 1975 • Most recent 3 month period kr •
• 'compared to the same period in which earnings data available
the 'previous year.. (Mar, May 76) compared to same
period in the previous year.
be added or subtracted depending on whether a
group had kept up with or fallen behind cost of
living increases before the program..began.
More.than half of the agreements and settlements
reported to the Anti-Inflation Board have been
within these arithmetic guidelines. A gradual
downward trend in wage increases has started
and it should continue as more Canadians
realize that because of declining inflation, settling
for less won't hurt them.
. The real pins
Since the start of the anti-inflation program,
the average Canadian has actually improved
his or her buying power This is because lOwer . •
wage increases along with lower price increases
have resulted in, 'a gain. in. real incomes. The real
gain is worked out by taking the actual increase
in earnings land subtracting from it the effects of
-higher consumer prices. Real incomes are proba-
bly the best measure, of how we're doing; of how
we can manage to pay our bills at home. By' this
spring, real incornes,were up 3.6% over last. year.
THE ANTI- L
INFLATION
PROGRAM
A REVIEW
YEAR ONE
Controls on both prices and incomes are
part of the reason why the inflation rate is
dropping. The...cOLo.peration and hard work of
most. Canadians is the rest of the story. We will
soon be Moving. into the second year of the
program., with a goal of loWering the inflation.'
- rate to 6% or leSs. Working together we can .
reach thiS target too, : . ' ..•
PAGE TWIRTIEN TH1 ..LAICKNOW $INTINIELLUCKN.OW, ONTARIO 76 WEDNESDAY, SEPTEMBER 22, 1976
The anti-inflation program, is nearly/one
year old. •
The program was announced last October .
14 'and the Anti-Inflcrtion Act was passed by •
Parliament in December. The goal was to create
a fair and stable economic climate for all of us.
Guidelines were established for the control of
prices, profits, incomes,'dividends and
professional fees. The federal government
established• a policy of spending restraint. The
provinces are supporting the program and are
applying- guidelines In areas- of provincial „ ,
concern such as rents. •
• The,target of the first year 'of the
anti-inflation program was to bring inflcrtion
down from a rate of /10.8% to 8% or less. This goal
is going to be reached. Still, many Canadians ,
are concerned about rising prices and may feel
in.faatthat prices are rising faster than their
family incomes. For most of us, this is not the.
,case. The facts prove that since the start of the
most of us are better off than we were
before because 'salaries, on average, are
keeping ahead of prices. '
Prices
. Last year, sudden and frightening price',
increases were happening all too. often:. By
October, 1975, Canadians had experienced .20
months of inflation of 10% or more. No one could
be: sure hOw far the dollar earned: one day
would stretch the next. The anti-inflation
program was brought in to control the rise in
prices,' giving Cana cans a .better chance to
plan and live within their family budgets. Price,
increases have, slowed down. By August, the .
annual rate of: increase in the Consumer Price
Index had dropped to '6:2%. Although some .
price increases have to be expected this month
and next, the 8% target will surely be met:
Wages .
The anti-inflation program haS also helped
to restrain increases in wages, salaries and other
incomes. The Guidelines on compensation allasAr
for a basic increase of 8%, plus 2% as a .share
of national productivity growth. Another 2% 'can
4
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