Evening star., 1942-07-17


be recompensed David. Lawrence.
for waiting, the War Labor Board
establishes a formula which deals
body blow to price control. For
as wages go up, prices doubtless will
have to rise.
Thus is the labor group given a
major victory on the economic front.
The employers, of course, aren't go
Ing to pay much Of the new ex-
pense. It's the Treasury of the
United States which will foot the
bill because wages are deductible
item before taxes, and, as for excess
profits, the employers face tax OF
around 80 per cent anyway.
The American people who are
asked to buy War bonds and who
are hoping the bonds will not de-
preciate between now and the time
they are redeemed will, of course,
pay for the increased expense of
conducting the war which the Ad-
ministration now has decreed that
industry shall pay.
But while the labor group is thus
kept from kicking over the traces
IN this political year, the Admins
tration is also currying favor with
the other major group which has
supported the New Deal for nine
years: namely. the farm bloc. For
although the bill permitting the
Government to sell at q discount
the wheat it has accumulated
namely, at an 83-cent price-so as
to induce farmers to use wheat, in
addition to corn, for feeding cattle,
has passed after considerable con-
troversy, another deal is reported
10 be in the ofing.
New Loan Deal Reported.
The report is that the Administra-
ton will support legislation requir-
ing 100 per cent commodity loans on
the five basic crops so that the
farmer will be assured of parity
prices and will also be paid conser-
vation bounties.
So the farm and organized labor
groups, representing a minority Of
the American people, are to be taken
care Of out Of public funds while
the highest taxes in history are
levied on businesses and on in
dividuals in the. middle and upper
brackets.
If, on the other hand, business
can afford to pay higher wages be-
cause the Government is footing the
bill for war contracts, it is urged
by labor leaders that the wage rates
should be increased. theoretically
there Is no objection to such a
course but If price control cannot
be made effective-and 1t looks as
II 1t cannot be. due to the fact that
food prices evidently can't be held
in line on account Of political OPP
position in Congress-then infia-
ton, long dreaded, becomes inevita-
bic as one cycle succeeds another.
1t is true the War Labor Board
argues that it is merely "stabilizing"
wages but it uses as its yardstick
an alleged increase in the cost OF
living. There is nothing to prevent
further increases in wages as living
costs go up, and they certainly will
II food prices and other costs aren't
controlled.
"Black Markets" Expected in U. s.
What 1t boils down to is that the
workers will be given increased
spending power but they will not
be able to spend 1t because Of the
scarcity of consumer goods. This
must eventually lead to competi-
tive bidding for commodities, and
especially necessities, which will
introduce in America the counter
part of "black markets" as known
abroad. These amount to nothing
more or less than "bootlegging" as
It developed in the Volsteadian era
Of liquor prohibition-an illegal ex-
change of goods.
Although possessed of the power
to apply rigid wartime controls
America is facing an economic crisis
because there is not enough courage
IN governmental circles, either in
the executive or legislative branches,
to meet the grave economic issues
raised by the war.
Pressure groups interested in
privileges for special minorities still
hold sway as against the interest OF
all the people. Politics still rules the
day in the midst of the most serious
war in history.
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