Economist Kahn Advocates Consumer Restraint

BOSTON--Alfred Kahn, director of the President's Council on Wage and Price Stability, said yesterday that wage and price standards will not be effective in curbing inflation without restraints on consumer demand.

Speaking before an anti-inflation conference sponsored by the New England Regional Commission. Kahn said he opposes mandatory wage and price standards, calling them a "stinking mess."

"What I beg you to do is not to take refuge and solace in the notion that this is just a big conspiracy, that you could have all the beef and oil and gasoline you wanted if you could just get rid of some malefactor out there," he said.

He added that although all prices except for food and energy have been increasing at a declining rate this year, he believes that the rate will increase in April, exceeding the 4.9 per cent figure for March.

The President's Council on Wage and Price Stability is reviewing the rising prices of several commodities and is considering some anti-trust actions, Kahn said.

He said although wage-price guidelines call for wage hikes of no more than 7 per cent, a Teamsters contract which increases wages by 27 per cent over three years is within the guidelines because "we eased the standard and it represents genuine restraint." The contract is now pending ratification by Teamsters members.

Kahn also discussed a variety of local and national issues with about 100 members of Massachusetts Fair Share yesterday.

After members of the audience said they were skeptical about the interest of state officials in keeping utility rates down, Kahn said, "What do you expect me to do, kick the governor out?"