CQ Researcher - Rising Cost of Living (2024)

Debate Over Inflationary Pressures

Living costs in the United States rose faster in 1965 than they had in any year since 1958. The primary force behind the price advances on a wide range of consumer products and services was the war in Viet Nam, which placed heavy demands on the nation's financial and business structure. If the costs of that conflict mount in 1966 to the degree that seems likely, inflationary tendencies will become more pronounced and the value of the dollar may be further eroded. Economists of many different persuasions are already urging stronger counter-inflationary action, starting with an increase in federal personal and corporate taxes.

President Johnson has promised to act quickly in the field of taxation if the war-fueled boom threatens to get ...