Evening star., 1943-02-14
Pressure Groups Blamed
for Initiation
By OUen L. Scott.

One more wave of effort to try to make
a good thing out of the war is under
way. This time, as last time, the wave
is generated by worker and farmer de-
mand for more and more income.
Farmers never have had anything
quite approaching the income that they
now enjoy, either in total number of
dollars or in relation to things that
farmers buy Yet their representatives
in Congress are out for a guarantee of
more Much the same is true of work.
ers. Wage income far surpasses any
thing in history and wage rates never
manding more and are threatening
strikes if they do not get it.
This scramble of workers and farmers
to cash in on the war while the CASH
ing is good only increases the resistance
Of other groups to tax increases that are
required if even a modest proportion of
the war cost Is to be met out of the
countrys current income.
People appear to think that they can
find in war the magic that will provide
personal riches for all except the men
who get caught in the draft.
Actually, the responsible officials who
must deal with resulting problems are
aware that this appearance Of war as a
get-rich- quick venture is an illusion.
They never were quite so worried as right
now about the prospect that the demand
for special groups for more and more
income will get out Of hand and lead to
a runaway price development. The rea-
son why this is SO is not difficult to I'M
derstand
AS an illustration: Back in New Deal
pump printing days, when the country
was learning about the Governments
met contribution" to purchasing power
and about the excess Of cash outgo over
cash income, in one year the Govern
ment contributed" about $4,000 100000
to purchasing power That was the SOL
dier bonus year, and there was great
worry about resulting imitation. Yet, in
the current year, on a comparable basis,
the Government is printing the pump
with about 10000, ,000 900 in excess cash
outgo over cash income.
times as much pump printing as in the
pump printing heyday. Furthermore, it
is coming in year of sharply declining
amounts of goods available for purchase.
AS any one can see, and as officials do
see, the result is dangerous situation
that can get out of hand unless tightly
controlled
Yet Congress is cool to drastic tax in
| creases. Congress also Is ready to do
what it can to provide farmers with
more income. Workers insist that since
food costs are skyrocketing, as farmers
get higher and higher prices, worker
wages must keep pace. AL of this Gre
ates a problem Of somewhat staggering
| proportions for James F. Byrnes as the
country's economic stabilizer. Mr.. Byrnes
is acting now to the full limit of his
powers to try to stop the upward spiral
| of wages and Of farm and other prices.
| He is showing willingness to stand up
| against the get-rich-quick demands of
| pressure groups.
| The American people have heard the
wolf, wolf" cry of imitation so often
| when there was no very marked inf1a-
| ton that they now refuse to get excited
| when the cry is raised again. The facts
| and figures this time do suggest, how
ever, that the present cry is real and
! that blow-off of the price lid is indi-
Gated unless firm controls are set and
| enforced
In this developing situation, several
| things are becoming clear.
One of these things is that the up
ward trend of prices is to gain momen-
tum. That trend of late has been more
| sharply apparent. AS at the time of the
| last war, the real imitation spiral may
not come until the war, or one phase of
| the war, ends. If Germany should sur
render late this year, it might be diff
| cult &c maintain all wartime controls for
| the final round with Japan.
A second development is the growing
| squeeze of the middle income classes
White collar workers are caught between
| higher taxes on one side and higher liv-
| ing costs on the other. They lack politi-
| cal power as a group and are getting
| little or no attention from Congressman
| who listen instead to the demands of
organized farmers and organized workers
| who are trying to get rich at the expense
| OF the mlddle-income group
Still third thing that should be rec
ognlzeo is that the higher prices and
| living costs go in the period ahead, the
| harder they will fall when the spree is
| ended. Both workers and farmers are
| operating on the theory that, If only they
can build high enough price and wage
base during the war, they can be in
| position after the war to demand that
| Government place higher floor under
| this base, thereby guaranteeing prosperity
Tor the pressure groups.
However, it Is the announced policy of
| this Government to try to revive world
| trade after the present war This means
| that American farmers and American
workers will be expected to compete with
| the farmers and workers of the rest of
the world If they expect to regain and to
| hold foreign markets. Successful COM
| petition cannot be based upon high costs
and high prices. Yet costs and prices
are skyrocketing right now and promise
to skyrocket farther.
Maybe, in trying to get rich quick, the
farmer and labor groups may now be
| storing up for themselves some acute
| future headaches.
Supreme Effort
| From the London (Ensland) Times:
j