The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1941-12-18

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ada has embarked on the most
daring experiment in controlled
wartime economy OF an the dem
neratic nati0ns. even Great Brit
pin
The Canadian government has
imposed rigid controls al both
prices and vaxes.
Price controls are quite in
keeping with emergency prae-
tees IN all democraciss. But ds-'
rect wage controls have never
been applied by q major demo-
cratic government. even in war
time. Neither Great Britain
nor the United States now prac-
tees direct wage control.
Freezing Of wages has been
avoided on the ground that Ia
Dor Is not . commodity In . free
nation. even IN wartime, and has
the right to bargain for its serv-
ices. Che principle does not APP
ply to military conscription. Any
citizen may be forced to defend
his country. including the labor |
ing man,
Canada took drastic aztian
because imitation thxealsnsd.
and imitation would damage
Tie war effnrs. Il weala aIze
cost the iaxpaFers nasA more /
monaY 70 wage var. because
tina government would buy
war materials and PSF soldisrs
with inflated noneY. Prices
have risen In Canada more
fhan Ia per cent since the
start Of the war.
Great Britain has put laws
on the books giving government
absolute control over the lives Of
eli subjects theoretically that
includes mans wages as well
as his life. but actually, the
British government has not APP
piled blanket wage controls It
has achieved the same end BY
indirect methods, including ra-
tioning Of food. price controls.
etc Il
In extreme cases. the British
have taken over whole indus
tries, and the government has
acquired a measure Of control
over wages in those industries.
The railroads are an example.
Extremely high taxes bonds,
and a system Of forced savings
tflat deductions from pay checks)
are other indirect means Of con-
trolling the wage level and pre-
venting disastrous initiation
The United States has net
applied heavy hand against
either prices or wages. But the
cost Of living has risen about
10 per cent since the start of
The war.
The government has taken
some steps to prevent the up
ward spiral Of prices. Installment
buying has been curbed- Banks
are required to use more de-
posts as a reserve. Taxes have
been upped drastically. The
Treasury IS selling defense bonds
to the little man. Price Admin
istrator Henderson has set UP
voluntary agreements with basic
industries to peg pieces of some
raw materials and articles, such
as automobiles. Henderson has
also exposed some dealers who
Judged on agreements, or refus-
ed 70 abide by them.
All OF these steps have been
taken to put a damper on infla-
ton II you put your money
aside 10 pay taxes you can't s
spend It and help along the in 4
flation spiral fagvas -
But we wFee also taking COM
nOdItias out OF circulation and /
putting them into nthec defense
set=up- That created scarcity !
Scarcities cause panielSy buying
Of things people don't -need, but I
fear they can't get later on. This
explains why we have an infla-
tionary trend. despite the indi- +
rect controls being used by the
government.
Congress is wrestling with
plans to control prices and
wages. But most observers sus-
pect Congress win merely wres-
tie and do nothing more until
initiation has already gone pretty
far along. That's because the
great pressure groups-employ-
ers, farmers. and labor organiza-
tons cannot agree on the degree
or the kinds Of controls the gov
eminent should apply. And they
won't, until the public at large
forces Congress to act It takes