The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1921-01-24
A PRELUDE TO PROSPERITY


circle" Prices went up. That raised
the cost of living. That made higher
wages necessary. Then higher wages
increased the cost of production
Consequently prices wentup; which
raised the cost of living; which made
higher wages necessary; and so on
around and around and around. We
all realized the evil, and all realized
too, that unless we were to go tic
everlasting smash, the process would
some day have to stop, and be re.
versed.
Well, that is just what is now hap
pening, and yet some people are not
resigned. They are gloomily saying
that lower wages mean less purchas-
ing power; and that means less de-
mand for goods; and that means cur
failing Of production; and that
means dismissal or suspension OF
workmen; and that means still lower
wages; and SO on, around and
around, and down and down, like
the descending spiral of Dante's In
ferno, with goodness knows what not
appalling Gataclysm at the bottom.
Such forebodings seem to us illogi-
cal, and contrary to facts and rea-
son. If the ascending circle or spiral
was bad, as we were all agreed, the
descending spiral must as least be
potentially good. We do not deny
that it may be subject TO abuse. But
that is not it's fault, but the fault
of those who manipulate tor per-
NIT it to be manipulated-imp
erly.. If the lowering of prices and
the lowering of wages proceed in
proper order and just ratio, the
workman will be just as we'll off as
before; his lower wages will enable
hi INTO buy at commensurately low
cred prices jus as much as before,
and demand will remain undimin-
ished.
Perhaps exactly commensurate re-
duction of prices and of wages is
too much to expect in this sadly
fallible world. Their increase, ac-
cording to somewhat painful mem
ory, was not equal. Complaint was
made that in some cases when work
mems wages were raised, say 20 per
cent, the prices of their products
were raised 40 per cent, and that,
contariWise, in some cases when the
cost of living rose 20 per cent, the
workmen demanded and received an
increase of 40 or SO per cent in
wages. We have no doubt that some
such irregularities and discrepancies
existed. But we all regarded them
as temporary evils, practically in
separable from such transition per-
iod of fiux and reorganization, as we
were then traversing.
We shall not be surprised if cor
responding Discrepancies occur in the
reversal of the process, wages going
down, in some cases, more than
prices, and in other cases, prices
more than wages. Such things are
practically inevitable in a period of
readjustment such as that thru
which we are now passing, and
which we have been eager and i'm
patient to reach. You cannot make
an omelette without breaking eggs.
You cannot readjust to the extent
of Transforming vast, complex, and
often incongruous and incoherent
economic system, with perfect mathe-
NAUTICAL precision in every detail.
There will be discrepancies, incon-
even injustices; because
necessarily the whole thing is so
largely empirical. The best that we
can hope to do is to reduce these to
a minimum, and then get thru with
the business as quickly as possible.
1t would be miraculous If the
years of plenty and too often of pro-
figacy thru which we have been
passing were not followed by per-
iod of comparative leanness, and Of
loss. That is commonplace Of the
worlds economic history. 1t would
be well if those who made the great
est gains were to bear the greatest
burden of loss, in a process which
would still leave them handsome net
profits. Unfortunately, that cannot
always be assured. Losses, like the
rain, fall upon the just and the un-
just without discrimination. But
there is at least one thing that can
be done, if only people will do it.
We mean that, just as in flush times
all strove to profit from them as
much as they could, all shall now
with equal readiness strive to bear
the Inconvenience and even the
losses of the readjustment period,
md thus expedite and facilitate the
'eturn to a normal state of affairs.
Such an attitude and such a dis
position are the more incumbent be-
cause, while the ascending spiral
s matter of impregnable necessity.
Men raised prices not always because /
they had to, but because they wanted
%, in expectation of thus increasing
their profits. But now they are COM
oelled to lower prices, whether they
want to or not, under the compul-
ZION of economic laws which they
cannot resist or evade. Centuries
lgo a very great man found that it