Growing Boom Called Dangerous by Okun: Excessive Growth Rate Personal Income Hops Prom
The Nation is now in the grip of a new and dangerous ÛÏover-all boom,Û stimulated by a ÛÏfabulousÛ jump in consumer spending, the PresidentÛªs1, chief economic adviser said yesterday, just prior to announcement of an increase in the discount rate from 5 to per cent.</br></br>In a speech to the National Press Club, Economic Council Chairman Arthur M. Okun said that the new surge would not even be dented serjously by a temporary slowdown this month ÛÏassociated with the recent civil disorders.Û</br></br>That was the first top-level acknowledgement that the riots in the cities will be reflected to some degree in national economic statistics.</br></br>Okun said that current record profits and payrolls added up to ÛÏtoo much good news,Û leaving in their wake a ÛÏdisturbingÛ rate of price increases.that he placed at 4 per cent.1</br></br>He conceded that there is so much inflation now built into the! economy that the proposed) 10 per cent tax surcharge alone can not stop it.	: "This i$ not a case where the next, straw is likely to break the camelÛªs back,Û he said. ÛÏA better analogy may be a fat lady munching candy . The more she in-