The Daily Alaska empire., 1937-03-03
Wage Increases
(NeW York TimeS)

Another series of wage increases seems in pros pect top of those granted last autumn. Some Of the recent advances have come as the result of strikes some of amicable agreements. The General Motors Corporation and the Chrysler Corporation have increased wages; have most of the units in the rubber tire industry. 12 per cent increase has just been granted 135OOO workers in the clothing trades Further advances seem in prospect in the istee industry; the textile workers are demanding another advance of 10 per cent the railroad brother hoods have voted to demand 20 per cent increase
 These developments raise some important ques- tions concerning the relation of wage rates to each other, to employment, to production, and to prices Sidney Hillman, president of the Amalgamated Clothing Workers of America. commenting on the l2 per cent increase granted to the workers of those organizations remarks that because of the somewhat higher cost of living it will mean more than ' or per cent increase in real wages" Unless all industry grants such increases he contends the im provement in business cannot continue.
 In considering these new advances and new de- mands we must keep in mind existing relationships of wages and prices. Average hourly wage rates in manufacturing industry already higher than those 1929 Because the cost of living is still substantially below the 1929 level hourly wage rates higher still in terms of what they will buy. How does it happen that with higher wages in manufacturing we should have lower price levels? There is nothing mysterious about this result The average per capita productivity of the workers is higher than in 1929 It is higher
  partly because when there is a large volume of un- employment the unemployment falls mainly upon the skilled and the less efficient who ordinar fly ill paid thus tending to raise the per capita figure of earnings for those remaining employed
 In short, there is nothing unhealthy about an increase in wage rates when it a result of a greater productivity for labor. That indeed, is the real aim of economic production and fair and prompt distribution of the fruits of that greater production But increases in wage rates may often prove than futile when there has been mo increase in individual productivity The rise in wages of clothing workers for example is sound if it merely cuts into abnormal profits that would other it should cut seriously into merely adequate profits, the result will almost certainly be rise in the price of clothing If that takes place, the result of the increase in the of the clothing workers will be reduction in the real wages" of all other labor.
 final question is raised by the latest of wage increases They taking place though there still estimated to be 100000 9000000 unem- ployed, Just unsold stocks of commodity usu- ally indication that the price of that commodity is too high so an abnormal volume of unemployment many economists believe, is frequently indication that wage rates already too high in relation to other conditions. Whether that is not labor cannot afford to forget that it's real aim is not high wage for fortunate individuals but the greatest possible total of wage payments aim that implies full employment and the cost-prce relationships that make full employment possible.