Understanding the Policy of Cost Absorption: A Letter to Congress, 1945-11-28

The letter from the Office of Price Administration addresses the importance of the policy of cost absorption at the manufacturer and distributor levels in maintaining effective price control and preventing inflation. It explains the potential consequences of abandoning this policy, including significant price increases for consumers. The letter also discusses the current economic situation, the prosperity of department stores and dealers in electrical appliances, automobiles, and other products, and the need for Congress' support in maintaining price control. The Administrator emphasizes the need for full information and cooperation to address the challenges of inflation.