Evening star., 1933-01-15
Continued From First Page.)

'ONAkS4AaN1 AoAAi "A SS a NbND
to rise fast enough to enable people to
consume goods as rapidly as they pro-
duce them. In time of depression
wages are so cut that no matter how
plentiful goods may be and how cheap.
few have the money with which to buy.
If We arbitrarily restrict the hours so
that no man in industry could work
longer than a certain fixed maximum
which is well below the present maxi
mum, the effect would be to raise wages
automatically
This proposal is different from that
embodied in the share-thejob move
ment AS was explained by Walter C.
Teagle in the New York Herald-Tribune
magazine of January /. the object of
sharing -the-job is to spread existing
employment among as many persons as
is practicable without increasing the
pay roll whereas the object Of DR..
Langmuir's proposal is both to spread
the work and to increase the pay roll.
In normal times there are about 48,-
100000 persons gainfully employed in
the United States. At present it is es-
timated that this number has shrunk
to $4,000. 900 or less.
Suppose, to assume an extreme ap-
plication Of the Langmuir idea, that
throughout the Nation the hours of
labor were cut in half; that the man
who works eight hours a day is re-
stricted to four hours a day Every
where it would be necessary to employ
two men where only one is employed
now. The 10000, 900 unemployed. or
such OF them as are employable, would
be absorbed; but even they would not
be enough to equal the number now in
Jobs. There would be competition for
the scarce labor; in that bidding wages
would rise, purchasing power would
be restored to the workers, their buy
ing would create additional demand for
goods, this in turn would stimulate
more industrial activity. provide more
employment, more purchasing, until a
balance is reached between productiv-
ity and consumptivity This, in brief,
is the idea-though Dr. Langmuir did
not recommend any specific cut in
hours. Such details would be de-
termined on the basis of the number
OF workers available and the possible
output of each man an hour.
Surplus Production Feared.
There is current in engineering cir
cles today persistent assertion to the
effect that added industrial activity on
the basis of present wages and prices
would only glut the country with in
creasing surplus goods. Here is how
the thought was given me by Arthur
H. Adams of New York, man of wide
experience as an inventor and designer,
as supervisor of men in industry
and in development and cost-reduction
work.
Suppose that million men are put
to work tomorrow" said Mr. Adams,
doing anything there may be Tor them
TO do, except made work Because
the industrial plant is already so over
built, the bulk of what they turn out
will be goods for consumption. Com
pute the value of their output of con-
sumner goods at retail prices Then
figure what the wages and salaries of
these men amount to and any added
profits created for their employers.
If you will compare these two totals
you will find that the consumers buy
ing power created by putting the mil
lion men to work is less than the mar
ket value of the consumers goods
which they produced This is overpro-
ductivity-an inherent state of over
production-and it outweighs every at
tempt to reverse our depression spiral
'As roughly figure the discrepancy.
it looks safe to say that pay in goods
for an average hour of work will in
evitably reach a level at least As per
NSAAe obO'C AoGo lCtClO DCLOiC al
can reverse Because Of falling prices
the reward in goods an hour Of work
has already risen some 16 per cent
since 1929, leaving present levels still
about rs per cent too low. This means
that living costs (rent being an item
TO watch closely) still have to fall at
least 20 per cent before that deadly
condition Of overproductivity disappears
And these figures will not stand
still. Research and invention have not
been idle these three years. The
American Machinist reports an auto
mobile factory that doubled its output
Is reported for typewriter factory.
"The only way to recovery" con-
cludeS this engineer, SIS by increase in
real wages. The only safe way now
to avoid disaster-however incredible it
dollar pay per hour, plus shorter hours.
DR.. Langrnuir's proposal for Nation
wide shortening of hours until the labor
market gets tight is as good a lever
rs any to lift the money value of
human labor.
Bankers could enforce recovery if
they could see this basic fact: That at
present prices Of goods and labor our
people at work simply cannot buy back
their proper share of what they pro-
duce. Prosperity awaits restoration of
balance between the two factors, pro-
ductivity per hour and consumptivity
per hour"
Obviously, a general increase in wages
throughout all industry would provide
added purchasing power to millions
but, ask the budget et-balancers. where is
the money for the wage raise to come
from?
Obviously, also, a boom in capital in
vestment in industry would call new
nrniectS intn nneratiOn and idle work.