Statement by the President on the Need for Restraint by Business and Labor in the Interest of Economic Stability.

MY Cabinet Committee on Price Stability has called for restraint in price and wage decisions by business and labor during an especially critical time in our battle against inflation.

I want personally to underline their concern. The Nation must recognize, while the tax and expenditure bill sets the stage for a return toward price stability, it cannot do the entire job by itself. Whether or not we reestablish noninflationary prosperity quickly and in an orderly way depends on the decisions which the leaders of American labor and business will make in the coming months. All Americans are paying for the inflation-insurance that the tax bill provides. All Americans have a stake in the prosperity that we must protect.

My advisers tell me that crucial decisions lie ahead on both wages and prices. On the collective bargaining side, over 250 large contracts expire in the 5 months from August through December. There are key contracts to be settled in steel, aerospace, longshoring, coal mining, airlines, and railroads. Only a few price actions--like those on new auto models--are made on a comparable fixed schedule, but hundreds of important price decisions are made every week.

Whenever business and labor have wage and price decisions to consider in the months ahead, I hope they will bear in mind the wise words of the Cabinet Committee on Price Stability.