The labor world. [volume] (Duluth, Minn.) 1896-current, 1921-10-15
GERMAN1zE AMERICAN LABOR7

GERMANIZE AMERICAN LABOR?
Another Minnesota man has re-
turned from Germany who advises that
American labor accept reductions in
wages if we would compete with Ger
many. This time it is DR.. George
Shepardson, head of the electrical engi-
neering department of the University
of Minnesota.
Germany is winning the industrial.
war; says Prof. Shepardson. Eight
marks, which are now worth eight cents
in American money, is the average
workers hourly pay there. Sixteen
marks, 16 cents in our money, is the
hourly pay of the most skilled worker
in Germany.
IA good meal is obtainable for ten
marks or ten cents. German industries
are operating at about IS per cent Of
their capacity. The people of Germany
have realized that hard work, low
wages and low living costs are the
things which enable their country to
cope with other nations for trade.''
Then Prof. shepardson concludes
with the following advice to American
labor: eff laborers in the United
States that would follow the example
Of those in Germany and agree tn
lower wages, the cost Of living would
soon drop in proportion''
But would it, There has been little
to happen in that direction in the Uni
ted States to warrant such conclu-
sion. Germany is not trust-ridden as
is this country. If the law of supply
and demand operates there as to wages
it applies with equal force to prices.
Almost everything consumed in the
home Of the American worker is con.
trolled by monopoly. The prices of the
things we use. rise and fall, not Accord
ing to supply or demand, but rather to
the will or within of the combination of
persons controlling product.
In almost every line Of trade that
combination is so strong that it abso-
lutely controls the production or mar.
ketlng of any product, and sometimes
both. In the matter of food the combin.
alton may not control production, but
Its control Of marketing is 80 complete
that it wilfully and wontonly DESTROYS
food produtcs to keep the price up. while
at the same time numberless are hun.
cry.
The trusts which control coal, iron,
copper and other like products merely
stop production when they see in the
dim future evidence of a falling mar
ket, and no matter how much purchas.
ers may want their products they con.
tlnue to hold to a monopolv-fixed
price.
In the face Of such a situation tho
American worker would be committing
social suicide to permit his wage to fall
to meet the competition of a country
which is trying, in some measure at
least, to protect the natural law Of eco
Monies.
The trouble with Prof. shepardson
ana others of his superficial habit of
thinking is that they want labor to
carry the sack for industry and bust
ness we haven't observed any falling
or OF the profits in the big trusts Of
the country since they started on their
"age-slashlng campaign. Nor would
tnere> De any even if the American
worker agreed to reduce his wages to
mat which, it is said, now obtains in
germany the probability is profits
would be greater. We do not know
very much about rates of exchange hut
we DO know that in normal times q 13er-
man mark is worth approximately p
cents in American money. If pre-war
exchange now obtained the German
worker receiving eight marks q dav
"ould De paid the equivalent Of two
dollars in our money. The Germo,
skilled worker receiving sixteen marks
would get what would equal four dol
lars. wv
Inc chances are that the German
marx today will purchase as much in
goods as it does in wages That is not
true with the American dollar. And
until the equilibrium between nr;oos
and wages is restored in this country
'nefe Will be little chance for any rea.
sonable Or fair settlement of either tha
wage or business question