The Washington times., 1929-04-09
-HO0VER HELPS.
NEW VIEW0F
IDLENESS
BY MERRYLE S. RUKEYsER
(CopyrigRt. 1899. by Universal
Servfaa Incl


< (copyriElit. 1899. by Universal
u Service. Inc.l
Y NEW YORK, April 9.-Under
The inspiration of Herbert Hoover,
business is gradually taking
new attitude toward unemploy.
ment.
The new viewpoint is to cease
looking upon unemployment as
temporary incident of hard times,
and to regard it instead as a
hazard of modern production
which can be measured and
mastered.
The newer efficiency makes
Il possible to turn out more
goods with fewer workers.
Prosperity has returned with full
Vigor, but unemployment per-
sists and promises to increase
as "a direct outcome of pros
perity,'s" according to William
M. Leiserson,, leading authority
on labor and former chairman OF
the Labor Adjustment Board Of
the mems clothing industry.
Leiserson participated in survey
to "help clear the way for a
modern working concept Of much
modern unemployment. as a
needless and comfortable by-pro-
duct of industrial progress
Fewer Workers
j Leiserson estimates that in
spite of larger production Ameri-
can factories employed some $780,.
900 fewer workers in 1928 than
= they did in 1923. OF course, DR..
Julius Klein, of the United States
Department of Commerce, has
pointed out that many of the re-
leased factory workers found en-
ployment in new occupations, such
as automobile servicing.
In citing the trend for the cur.
rent year, Leiserson says:
''Those who are employed shall
earn more than ever before; but
fewer shall be called to work, and
more shall be unemployed; that is
the promise Of American industry
: to it's wage earners throughout
the year 1929.
"And, so long as conditions make
the drive for efficiency and reduced
costs necessary, and it is accom-
panied by chronological and man.
agerial improvement such as have
marked the last five years, we
may expect the same tendency to
continue - increasing unemploy-
i ment with increasing prosperity.
In the immediate future, at least,
| less and less man-power is likely
to be needed to produce more and
more output, more and more prof
its, and more and more wages"
One Meaning
: In interpreting the meaning of
! prevailing high wages in the
. United States, Leiserson adds:
The increasing earnings of in.
: dustrial employees is hardly to be
explained by a growth of the
&, spirit Of philanthropy among EN-.
ployers. It is to be accounted for.
: rather by the discovery that it is
cheaper to pay higher wages to a
smaller number of efficient work
ers than lower wages to larger
number of less efficient. Indus
try is, therefore, concentrating it's
work in the hands of a smaller
number Of employees. The younger
the more active and capable, work
ers are taught and stimulated by
incentive wage-payment plans to
produce and to earn more, while.
the older, the slower, and the less
efficient workers, are weeded out
to swell the ranks Of the unem.
ployed."
Leiserson's remedy is to make
such unemployment charge on
industry, rather than on the indi-
Vidual worker. He would. set up
an obsolescence charge for labor
against industrial profits and out
of this fund he would make un.
employment payments, Several
unions have already forced unem-
ployment funds on their indus
tries.