Evening star., 1942-07-01


control to keep costs from rising,
and he has made it clear that there
must be some form of wage con-
troll, too But the wage stabiliza-
ton" policy which was supposed to
be handled by the National War
Labor Board has become a ouibble
on words such as "subStandard"
wage levels, cost of living and
various other factors that mean a
gradual forcing upward of payroll
costs with no commensurate way
of increasing prices to absorb such
costs.
When Mr.. Henderson argues that
since prices have to be held down,
there must be subsidies, especially
for small businesses which cannot
increase their prices, Congress turns
1t down. The legislators do not like
subsidies for any other group except
labor and agriculture, and in an
election year this may be under
standable politically, but inde-
fensible, especially in time of war
when the theory of sacrifice is being
widely preached.
Disorganization Tendency.
The opposition to subsidies is
sound, and there is no doubt that
none would be needed if price con-
troll included everything and par
ticularly the item which accounts
for about IS per cent of the dis
bursements of our national income
wages and salaries. But if the
principal item of cost is not to be
limited, then price control will be-
come more and more of a per-
plexity and may produce even more
disorganization than if there had
been no control.
The trouble with wage stabiliza-
ton is that the high policy making
officials are treating it as if it were
political instead of war problem.
1t used to be said of the flexible
tariff" in the days when the pro-
tectionists were in power, that it
was as flexible as an elbow and the
only way an elbow could fex was
upward. So it Is with wage "sta-
bilization.' The only way dis
covered thus far to stabilize is to
increase rather than diminish
wages. The excuse thus far has
been the cost of living some Sub
standard situation" or some rela-
tionship to a regional or competi-
tive area in an industry. The idea
OF holding wages at certain
general level, as is being done
with prices, seems to have been
abandoned.
1t is tragic and unfortunate that
congressional campaign has to be
held in the midst of the most serious
war in history. The theory that
one political party or one set of
candidates may gain an advantage
over the other appears to be more
important consideration than the
strengthening of Americas S economic
structure to meet the impact of
coming events.
Evolution Retarded.
But since an election has to be
held as provided under the Constitu-
ton and there Is to be no adjourn
ment of partisan politics, the whole
economic evolution is being retarded
and it is probable that the severe
measures Of regulation that ought
to be taken now will be inaugurated
only after the election. This is
strange commentary on the kind Of
leadership that is supposed TO be
exercised in wartime
There are inevitable hardShips in
wartime. but economic difficulties do
not begin to compare with the sacri-
fees made by those in the armed
forces. 1t is significant that the
heaviest tax bill in history has ocCa-
stoned much less complaint than the
tax measures Of normal years. The
Government, of course, wants TO
collect as much revenue as possible
and is reducing very substantially
the profits and the salaries of execu-
tives by tax rates that are of un-
precedented height. But there is no
limitation on what may be spent for
labor and this is one reason why
evidently the labor groups are in
sisting on stabilization upward.
Temporizes With Rationing.
The unions are asking payment
for giving up the exercise Of the
right to strike They are seeking
not only wage increases but various
forms of closed shop and check off
arrangements. But even these lat
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