Evening star., 1943-06-28
Bon on RoIIbucks

Bon on Rollbucks
Barring last-minute changes of
heart in conference, the administra-
tlon's program to roll back. the cost
OF living to the levels of last Sep
tember has been killed by action OF
the House and the Senate. On the
facts OF the case, as distinguished
from the arguments that have been
made, there seems little reason to
mourn its passing.
The demand for large subsidy pay
ments to permit a cutback in prices
has developed step by step with the
unfolding failure of the Govern
ment's price control program. Only
a few months ago administration
spokesmen were advocating the use
of subsidies to encourage the produc-
tion Of critical minerals and certain
crops that are especially desirable in
wartime, and to Offset abnormal
transportation costs of a limited
number of key commodities. To this
restricted extent the argument in
behalf of subsidies appears to be
valid, and it is the apparent intent
OF Congress to permit their continued
use for these purposes. But as the
arbitrarily imposed price ceilings be-
gan to Waver under the pressure of
rising costs there emerged a demand
Tor a broadening OF the subsidy pro-
gram to include rollback of prices.
Obviously such a device would serve
to conceal, rather than correct. the
basic weaknesses in our stabiliza-
ton program. In the long run it was
almost certain to lead to the piling
OF subsidies upon subsidies and
thereby accelerate rather than check
the growing menace of imitation.
But because of the supposedIv
popular appeal of price rollbacks
these considerations received scant
attention. The administration took
up the program, and spokesmen for
organized labor jumped in with the
assertion that unless prices were
rolled back the Little Steel formula
and the hold-the- line order would
nave to give way to renewed wage de-
mands. And on two occasions the
President has encouraged this claim
oy saying that without the subsidy
program it would be impossible to
deny additional wage increases to Or
ganized workers.
This is a point of view which can
only be based on a determined re-
tusal to face the facts. Using the
average for 1889 as base, the Gov
ernments own figures show a rise in
living costs to February, 1943, of 1915
per cent. 1t has gone up a few more
points since, but the increase is still
we'll under 80 per cent. During the
same period the average weekly
earnings OF factory workers went up
OLA per cent. On the basis of these
ngures-and they are those of the
GoVernment-how can any one say
that factory workers will have to be
PAID higher wages to keep abreast
OF the rise in living costs? Instead
OF giving encouragement to unwar-
ranted wage demands, why does not
the President resist them with an
emphatic statement of what the
facts show as to the extraordinary
gains which labor already has made
In relative earning power?
If Congress is going to forbid any
future use of subsidies to roll back
prices, as appears certain, it will be
essential to keep a firm grip on the
facts. Organized demands for higher
wages will have to be resisted in those
cases where actual earnings already
are ahead of the rise in living costs.
But if there is going to be a further
increase in prices, something will
have to be done to aid those whose
earning power has not kept pace.
There are many in this category, and
unless they are to be. mercilesslv
ground down, Congress and the ad-
ministration will have to bury the
hatchet and, on the basis of the real
facts, work out a solution to relieve
their plight. 1t can be done If there
is the will to do it.