Evening star., 1939-05-12

| employment pic.
Charles G. Ross. ture is "the in
creasing output of the individual
worker" This increasing output, it
was remarked, was obviously the
result of the increasing use of ma
chinery. The article said that the
problem created by the machine was
daily growing more acute and that
no solution was in sight.
This article has produced stream
Of letters. If they are any guide,
there is a deeper and more inteln-
gent public interest in chronological
unemployment than in any other
topic which has been touched upon
in this column. Though the SUBJ
ject, naturally, gains spot-news i'm
portance only on rare occasions. 1t
is clear that the question of how
to use machinery to the best social
advantage is very much In the
public mind.
Two or three Of the correspond
ents assert that they have the COM
plete answer and entreat the CO.
operation Of the writer in getting
their views before the public. In
the main. however, the letters show
full realization of the enormous
difficulties in the way of solution.
Bill Would Tax Savings.
In calling attention to the crack
potism which has entered into the
discussion, a thoughtful Missouri
correspondent cites a bill which has
been introduced in the lower house
Of the Legislature of that State
This measure would create a board
to investigate "the expense of opera
ton Of any employer of labor in
which labor-saving devices or ap-
paratus is now in use and
which decreases the cost Of
manufacture and decreases the nee
essary number of employees" Sucn
savings by the manufacturer would
be taxed at from 25 to so per cent.
A law of that sort, of course. would
return us to the Stone Age of in
dustrial production. AS the CORE
| spondent observes, "even a stone ak
and plow made out of forked stick
are highly labor saving devices, AMI
an automobile factory saves an in
calculable amount of labor as COM
pared with devices or apparatus of
the cavemen" He is afraid thai
such straws as this bill show which
way the hot air blows"
Another correspondent, high ex-
ecutive of one of the great manu-
featuring companies of the country.
writes as follows:
Free enterprise when unham-
pered has been able to utilize so
much of the leisure time as was So
cially desirable Thus, at the emo
Of the period 1900 to 1929, in spite
OF the greatest advance in time
saving inventions, there was no un-
employment problems. We have un-
employment today because free en-
terprise is hampered This is the
sole cause of unemployment beyond
the irreducible minimum Of unem-
ployables and workers in transition.
Facts Against Statement.
The sincerity of this correspondent
is beyond question, but it seems to
me that the facts are against him.
Even in the halcyon Coolidge days
there was a considerable unemploy-
ment problem due to the increased
productivity per worker. We didn't
notice the problem then because of
the general prosperity of the coun-
try.
A study made by this writer in
1882 cited unemployment estimates
running as high as 100000 for the
very height of our industrial ex-
pansion. Two years ago the SUBJ
committee on Technology of the
National Resources Committee, in
its careful report on archaeological. =.
trends" wrote that owing to in.
creased productivity and the growth
of the labor supply from 1920 to
1929, there was substantial volume
Of unemployment" during that en-
tire period. The committee calcu-
lated that unemployment in 1887
could be reduced to the 1929 level
only by a 20 per cent higher pro-
duction of goods and services in
1887 than in 1929. This percentage
was based on the productivity level
| Of 1885; an increase in that level
! would mean corresponding in
crease in the production required to
| get us back to the pre-depression
unemployment level.
The correspondent who laments
the restrictions on free enterprise
speaks rather lightly Of workers in
| transition" Presumably he means
workers in transition from one job
to another as result of displace-
ment by time-saving devices. The
transition is likely to be long
process and to land the worker in a
| job wholly unrelated to his old work.
and at lower pay. The report cited
which Is commended to all who
may be interested in the subject
points out that the notable ex-
pansion in employment between 1920
and 1929 was due almost wholly to
the rapid growth Of the service in
dustries.
The subject is tempting, but there
IS space for only one more point
from the letters. This is made by
the executive of large iron works
company. In speaking of the pow
erful influences which are tending
to speed up the mechanization Of
industry, with resultant loss Of Jobs.
he names as one Of them "taxes
based on man hours"
"If." he says, you figure work.
mems compensation insurance.
which may easily run So or 81 per
500 Of pay roll in manufacturing
operations, and add thereto social
security taxes and unemployment
taxes, which are also based on per-
centages Of pay roll, you will md
that you are paying not only a lot
higher labor rates than a few years
ago, but that you have 8 or 10 per
cent taxes and insurance as q sur
charge on these hourly labor rates"
The problem. Of course, Of how
to live with the machine and not
let It master us Is not confined t0
the United States. It Is . problem
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