The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1942-08-20
CO N S u M E r
N OF E s


f1ation, points out Bread & Butter"
weekly bulletin of Consumers Union, In
the second part of its analysis Of wage
freezing.
I'VE follow the business journals
closely" comments Bread & Butter"
forming. 1t seems that business, speak
ing to itself, is taking an entirely
different view of the current imitation
scare than a great many of its repre-
sentatives take, speaking to the rest
of us.
Business, discussing the matter with
itself. thinks that the inflatiOnary eff
feet of wage increases and consumer
buying has been much Over-rated. 1t
thinks that there is much loose think
ing on the subject Of imitation.
I'VE do, too. We think that some of
the business interests, including the
newspapers, have been responsible for
much of it. We suggest that they bone
up on their organs or opinion.
For instance, the business magazine
United States News has this to say
about the War Labor Boards stabiliza-
ton of hourly rates at Il level 1870
above that Of January, 1941 Ito match
the rise in living costs):
Many industries have not, given
raises in wages of that, size. If all manu-
featuring industries now raise their
hourly wage rates to point 1917
above January 1911, total OF about
$4OO,OOO,OOO will be added to wage in
come. II industries other than manu-
featuring do the same, that will mean
another $4OO 100000 added. Yet this
total increase is little more than l per
cent of the wage and salary bill Of
$4,000, 100000 for 1912. II increases
for whitecollar workers are added,
the total would rise In itself, however,
this does not spell inhation.'
I'VE should like to add couple Of
comments to this statement. Seventy
five per cent of consumer units (fam-
lilies and individuals living alOne) this
year will receive less than $4,000. And
1870 of our factory workers are earn
than $50 week.
Yet the authoritative Heller Com
mittee declares that a minimum war
time budget necessary to maintain a
family of four at level of health and
decency requires about $50 Il week.
This allows for the purchase of War
Bonds and curtailed buying of scarce
consumer goods.
1.-The present living standards OF
many workers families, as measured
against this standard, are already
dangerously low But consumer and
labor groups will accept lower stand
ards if the war effort demands.
ut is the demand that wages be
frozen while prices, higher incomes
and corporate profits rise, and the
charge that wage increases have prac-
tically brought us into imitation, that
have rung alarms in labor ranks.
"'Business Week takes a rap at the
theorists who have been talking wildly
about how hot money Is creating II
danberous situation by bidding fran
tically for decreasing supply Of con-
sumer goods:
Even when all types of consumer
goods We're In ample supply-autOmo-
biles as we'll as Oranges-and people
were flocking to buy in fear OF short
ages, spending was less than antici-
pated. Less by as much as $4,000, ,OOO.-
600 year, according to one Depart
ment of Commerce estimate.
"A second departure from theory
came when our output Of hard goods
- automobiles, refrigeratOrs, radios,
and such prOducts-wns curtailed to
make way for arms Henderson s
resea rchers have found scant evidence
OF spree on buying power diverted
from hard goods"
"A final indication that consumer
spending habits are exceedingly In
elastic came this spring. Then, al
though the stores still had large inven'
tories to sell, the buying of apparel and
other soft goods" fell off.
"'There will still be more purchas-
ing power than goods, but less of 1t
should be considered hot" or danger
Gus to the price structure
"And the Wall Street Journal re
ports that the public is helping to licl;
imitation. Specifically:
"'People are buying less paying
off debts :. . saving more
"Such facts lead the United States
News to conclude:
Don't get too excited about the
prospect OF runaway initiation during
the war. 1t doesn't appear to be in the
cards
I'VE agree that the war imitation
will be kept within bounds But even
a controlled increase Of 10 or 1870 a
year can bring critical hardships to
l0w-income families. Such IN advance
threatens from rising food prices
piercing of retail ceilings and quality
depreciation.
But the quotes above suggest that
business itself doesn't put much stock
In the imitation bOgeys used to scare