The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-12-24
by MAX. WEISS.
PART 3.
Concluded

Thus far the inflationary movement has been
described from the point of view of its effect
upon the financial structure of capitalism. The
all important question of how initiation will eff
feet the working class remains to be answered
In this connection, two things must be noted
above all else
!. Initiation means wage cuts on an unpar-
a1elled scale and reduced real wages.
z Initiation means mighty increase in the
cost of living
Although initiation in its fully developed
form results in an increase in commodity
prices all along the line by itself it
does not accomplish the increase in profits
looked forward to by the capitalist class For
side by side with the increase in commodity
prices goes the steady depreciation of currency
Thus although nominal profits increase, the &C
tual value of such profits remains the same and
in the event that initiation runs ahead of the
increase in commodity prices, the profits actual
ly decline. In order to offset this, the capitalist
class has already set about reducing "produc-
ton costs" In less mystifying language, the
capitalist class slashes wages right and left to
prevent any rise in commodity prices from
being nullfied by rise in wages, or even by a
continuation of present wage scales.
The intensified wage cutting drive came into
VAN "tSAA "iVii VAC Az pei SGLlO wage CuO lHSGl-
tuted by the steel trust The capitalists, of
course, have been cutting wages ever since the
beginning of the crisis. But the wage cuts had
been accompanied by campaign of demagogy
as to the necessity of maintaining the exist
ing level of wages" Now this mask is dropped
Inc necessity" for wage cuts is openly admitted
In addition the growth of initiation makes it
necessary for the capitalist class to be in a
position as soon as possible. to avail themselves
OF the inflated commodity prices We there
fore, find such expressions in favor of uncon-
cealed wage cuts as that contained in the Fl
nancial Chronicle" of Dec. 5th. Speaking of
wage cuts for all railroad workers. it says
at is time to stop dallying and to take the
bull vigorously by the horns. There has been
altogether too much parleying and dckering
Ignore the union leaders Let each railroad
system announce that 80 days hence lower
wage scales will be in effect and let each rail-
road act in its individual capacity. The
reduction, too, will have to be commensurate
with the need. We do not think 10 per cent
decrease will suffice for the purpose"
This statement of policy on the part of Wall
Streets leading organ is clear and requires little
comment on the wage cutting drive that is going
on They will cut wages with the assistance of
the reactionary labor leaders who are among
the chief instruments for cutting wages where
possible without it where necessary-"nor VIII
a 10 per cent decrease suffice for the purpose"
The leaders in this wage cutting drive are the
great STEEL COAL cotton railroad trusts 1t is
by no means, however confined to these trusts
nor restricted to any section of the country or
of industry. The wave of wage cuts that fol-
owed Immediately after the outbreak of the crisis
occurred simultaneously with lowering of COM
modify prices although, by no means in the same
degree. There was continually widening scis-
sors between the wages of the working class and
the costs Of various necessities of life
The wage cutting drive which is now under
way, however, takes place under fundamentally
different conditions. 1t takes place under con-