The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1938-05-26
THE WAGES AND HOURS LAW
FAILACY

The wages and hours law which, it now
seems almost certain the federal govern
ment is going to hang as another milestone
about the neck of business and industry
of the nation, is exposed by the economist
Of The Christian Science Monitor "a non
partisan newspaper), and from these writ
ings we quote as follows:
The object of the new Federal wages and
hours bill is to increase the purchasing power Of
F. the workers This it hopes to accomplish by tix-
ING wages and hours No doubt even those per-
sons who feel that the law would be unwse think
that the object is feasible This is not the case.
No law can fix wages, let alone purchasing pow
ell All that it can fix is the rate of wages, which
is vastly different For rate of wage is merely
a promise to pay certain sum OF meney Tor
work done. No work, no wages. Moreover, even
the earned wages have variable purchasing
power according to the caprice of prices.
This lesson was thoroughly demonstrated by
experience under the NRA. We are fortunate
in having complete statistical material of that
experiment compiled by, NRA officials. The pub
. LEGATION upon which shall rely here is the one
put out by the chairman of the Labor Advisory
{ Board of the NRlA, nr- Leo Moinan. 1t Was is
sued by the National Bureau of Economic Re-
. search N New York.
The wage philosophy of MIRA, according to
Dr. Wolman, identical with that of Mrs
Norton and her fellow sponsors of the wages
and hours bill. "The theory" says Dr.. Wolman,
assures, in part at any rate, that the wage rate
: is the key to the income of labor, and that, if
; wage rates are lifted, the earnings and income
of labor will at the same time rise, and the in
come in the country increase proportionately."
: What happened The greatest pushing up of
!, the hourly wage nate ever experienced in the
history of labor - .-', .. 80. - e
All classifcatiens' of labor found their wage
: rates boosted. But only the soft coal and metal
!, workers advanced in purchasing power. In gen.
! eral, therefore, the artificial raising of the wage
\ rate under NRA (l) prevented some business
. men from embarking upon new work opportuni-
: ties; (2) put others out of business; or 81 in
> creased the costs of business in yet other cases
: SO that higher prices aduterated the higher
y wages b J., IS. So. . a. -a; b.. $500. ...
& The lifting of the rate of wage would not of
s necessity lift the purchasing power of the af-
- feeted worker. In some such result would
follow, particularly if the tide of recovery were
: flowing strong. But in general the theory back
= of the bill is fallaeious. As Allen w. Rucker
Z. says, IN his thought-prOveking book, ."Labor's
Road to Plenty" 1.-THE supposition that the an,
hual dollar income can be increased by increas-
ing the wage-rate instead of by increasing pro-
dqetlye effort is nothing more than a childish
error Of installing a rate for result"
1t is clear that the wages and hours bill
is a basic section of diseredited NRA mas
querading in disguise. NRA was killed by
the decision of the Supreme Court that it
was unconstitutional; but the new dealers
: never abandoned the purpose to have all
cor part of it enacted into law. In the
wages and hours bill they are lodging the
court decision and sneaking two of the
principal features Of NRA into the law OF
the land
: Omittlng reference to the specific injus.
tlee the law viii do to the South, by dis.
terminating against this section, it is Ger.
tam the entire act belongs in that class OF
new deal legislation which is the cause OF
the present condition of the country. II
will be another gigantic difficulty in the
way OF recovery and the restoration of nor
NAL national conditions.
All legislation of this character is ba
sicaliy and fundamentally unsound am
I fallaeious, and it is strange that an over
whelmlng majority of the. people of tn
United States are seemingly blind to tn
8 meaning of the several concrete example
ssthe new deal has given them Of the tfut
of this statement. Millions of people, q
- course, do understand. thee meaning "a
what is being dene BY thsaceuntry's ne,
- sr ii
~ 49,. IL 50 -