The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1933-05-04
INF ALTON MOVE
DISCUSSED FROM
VARIOUS ANGLES
VIEWS EXPRESSED ON MANY
PROCESSES IN WHICH ISSUE
WILL FIGURE IN RRoMI-
sNENT WAY
BY j. r. BRACKET
Try Associated Isreaal

By j. r. BRACKET
Try Associated IsreAal
NEW YORK, May 4.-Infla-
tion, i'm its first stages, is a wage
cutter; in its second, a wage rails.
err
The first thing initiation doe:
is to send the prices of com.
modities. of wheat, cotton, copper
shoes, food, up. Since the pri-
ces Of these itself advance, the
wage earner's dollar loses pllrchas.
ing power.
But, because prices do 60 up,
infIationists predict q rise III bust.
ness activity, with factories hir-
ing more men and giving more
hours of work to men already EN-.
ployed IN hiring more men the
total nayrolI Of the nation Is rails
ed; in adding to hours Of work
the income Of the Individual work
et goes up.
As activity goes higher and
more and more men 90 back to
work, the bargaining power of the
Individual worker is increased. He
may demand higher wages, and,
depending on the extent Of the IN
flation and business Improvement,
initiation shows, in general. that
gets his raise. History of other
wage rates rise slowly at first, but
finally pass prices. Toward the
cpd Of deflation the wage Garner.
IS better off.
Salaries Rise More Slowly
The salary earner's wage goes
Through the same process ct q
slower rate. Salaries tend to rise
more slowly than wages. So,
wfien initiation is beginning, the
sslaried man will have to nxer-
else even greater economy than
ne did in the last stages of de-
flation.
The first prices to 90 up are
those for raw NATURALIZATION.
clipper, wheat and so on. Next
comes the manufacturer who fab
rTcateE these materials into fin-l
iabed goods. and finally the whole
sale 0rTetailer advances bis prices
Al prices are likely to advance
rather rapidly because sellers are
tying to make profits to discount
furtheraprice advances.
IF he raw material producer
o. the manufacturer has large I'M
ventories he stands to benefit
greatly, since he viii sell his in-
venforv at market prices, which
win be considerably allows what
he paid for such inventories in
the depression.
In the present situation prices
may lag in establishing a definite
uptrend line because of the large
SURPRISES of raw materials, Al fac
Tor which viii retard advances IN
retail trade Is the diminished pur-
chasing power Of the public.
savinas Tend To Emergs
Until wage and salary rates do
advance, public purchases are not
likely TO increase, although sew
iRes which have been held might
be expected to flow rapidly into
the market places to take advan-
tage Of low prices. Also total
purchasing power may increase
quickly because Of the additional
employment.
Persons dependent on income
fsem rents win not be able to in
crease rents rapidly because Of the
still low state of purchasing power
and since rents are fixed in leases.
landlords must lag in increasing
their incomes.
Persons dependent on income
from interest win find their pnr-
chasing power definitely curtailea
without any chance Of increasing
that income. since the number az
dallars received will be the same
regardless Of their diminished pur-
chasing power--except that bad
debts may again pay interest.
Persons holding common stocks
stand to benefit quickly because
these stocks represent claims on
corporation dividends which may
be expected TO increase with bus
mess gains; common stocks adj
vance out Of proportion 10 other
items because many people seek
ia buy them quickly.
Persons holding second grade
bonds may benefit because the
security behind these bonds will
aiso improve with business gains.
SEND PESSIAISTS
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