The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-05-06
Conflicting Views Regarding
Employment and Wages
RAILWAY Age


Two completely conflicting ways of
dealing with wages are being advo-
Gated as means of increasing employ
ment and Fastening the termination
OF the depression. AS to the wages
OF railway employees, for example,
the Railway Age, like many others,
believes a larger reduction than that
OF 10 per cent now in effect should
be made, while labor leaders advo-
cate, as means of reducing unem-
ployment. the establishment by fed
eral legislation of a six-hour day at
eight hours pay. which would cause
a 80 per cent advance in the average
hourly wage, and corresponding in
crease IN the payroll If the total
number OF hours that labor was paid
for was not reduced.
Which plan would be more likely to
increase employment? We know that
IN past depressions wages on the rail-
ways and in industry in general never
were increased but always were re-
peatedly reduced: that those depres-
sions finally came to an. end; that
employment did increase and pros
perity finally was restored; and that
the recovery of business always was
accompanied or followed by advances
In wages. The theory that employ
ment would be increased in q depres-
sion and the restoration of prosper
ity aided by a general reduction of
working hours which was accompan-
led by an increase in wages per hour
IS one which never has been tried.
There Is experience that supports the
view that reductions of wages in a
period Of depression help to increase
employment and restore prosperity,
while there is no actual experience
which supports the view that the es-
adjustment in depression of a
shorter working day without reduc-
ton OF the pay for a days work would
increase employment and help to re-
store prosperity.
There is a consideration of great
Importance which is commonly disre-
garded In current reasoning concern
ing the effects Of changes in wages
and working hours. Prosperity can
not be restored merely by increasing
the number OF persons employed
Prosperity is measured not only by
the distribution OF what is produced
but by the total volume of produc-
ton, which OF course determines the
amount OF necessities. comforts and
luxuries that can be distributed
Measured by freight car loadings. the
total volume Of physical production in
the United States in 1882 was Al per
cent less than in 1929, and in the
first four months of 1888 was 40 per
cent less than in 1929. If employ.
ment should be so redistributed that
everybody who had work in 1929 would
be given some work now, but there
was no increase in present produc.
ton, the income of the American
people IN necessities, comforts ano
luxuries-in other words, their real in.
come-would continue to be only one.
half as great as it was in 1929. That
surely, would not be regarded by any,
body as the restoration of prosperity
The restoration of real prosperity car
be accomplished only by measures
which will not merely temporarily in.
crease employment but which will
permanently double or treble produc.
ton in industry.
Increased employment and produc.
ton must be the dual detectives ane
results Of any constructive economi,
policy: and any policy which has no
increased production in industry a.
its main objective will make no per.
manent contribution either to in
creased employment or to increase.
in the real incomes Of those who ge
employment.