Evening star., 1944-05-28
Observation-Disclosures
In 3,OOO,O ,OOOBusinessesinU.S
Chamber of Commerce Urges Study of Little as
Well as Big Establishments Instead of
Industry Alone as Source of Jobs
By Charles q. Ross.

full service or produces desired COM
modify Employment and income op-
portunities grow out of the efforts of the
several million jobmakers to survive, to
grow and to expand. In the process,
many new enterprises are launched,
thereby expanding the demand for
labor.
''In a free system, adequate employ
ment opportunities cannot be made in
Washington; they cannot be provided
by business as a unit but rather they
grow out of conditions which lead to
favorable expectations on the part of
these millions Of individual persons and
establishments. No doubt high levels of
employment could be achieved in other
ways, as in Germany and Russia, but
recent history suggests that when this
task is thrown upon government, the
freedoms of society evaporate as rapidly
as, even more rapidly than, unemploy-
ment."
Prof. Schmidt makes the realistic
point-one that was set out at the be-
ginning of this series-that in a free
and expanding economy such as ours
there can be no such thing as absolutely
full employment. He warns properly
of the danger that false hopes of a
utopia will be aroused by the demagogic
use of the term "full employment" At
any given time there are bound to be
numbers of workers out of a Job for
reasons which, as Sir William Beveridge
has said, are not inconsistent with gen.
eral prosperity. The best that we can
hope for is reasonably" full employ
ment.
Some Unemployment Certain.
Prof. Schmidt puts the matter this
way: Instead of full employment our
objective should be the avoidance of
mass unemployment. Steadier jobs.
reasonably prompt Ireabsorption of work.
ers who lose their Jobs, and an effective
equilibrium between job seekers and job
offers-these seem to be more realistic
and attainable objectives.
''If our society is to be free and dynamic.
unemployment cannot be abolished
entirely, even for short periods. In l943,
in spite Of the mad scramble over the
manpower shortage, we still had in
every week of the year an estimated
100000 unemployed persons. The ebb
and flow Of the seasons, temporary
shortages of materials, the breakdown
of O p1opf coy,orlatio,, - - ooy,+rao& 60
a given commodity-these and many
other factors lead to inevitable unem-
ployment."
He presents an interesting table to il
lustrate the changing character of an
expanding society. In 1914, on the
basis Of number of workers employed,
the 10 most important industries were
as follows: "a Lumber and timber prod
ucts, 90 cotton goods. (3) foundry ana
machine-shop products, % steam rail-
road repair shops, t5) steel works and
rolling mills, t6) boots and shoes, fac
tory; Cd mems clothing, 90 womens
clothing, 90 woolen and worsted goods,
1o) tobacco, cigars and cigarettes.
Shift in Positions.
In 1899 the picture was strikingly dif-
ferent. The 10 leading industries then
were: Cd Motor vehicles, bodies and
parts; (2) steel works and rolling mills
CD cotton goods, "a lumber and timber
products, 60, boots and shoes, factory;
(6) bread and other bakery products,
CD woolen and worsted goods, (8) meat
packing, wholesale; 80 paper and paper
board mills, G0) canned and dried fruits
and vegetables.
Five of the top industries in 1899 were
not among the first 10 in 1914; more
over, each of the industries included in
both years had new relative posi-
ton.
"A moments reflection" Prof.
Schmidt comments, suggests the possi-
bility of job losses, geographical shifts
and other inevitable readjustments.
Some unemployment in a progressive
society Is the price we must pay for
desirable change.
Time is necessary to shift between
jobs. Change in technology and the
rise and fall of individual companies
(see UNEMPLOYED, Page C-3)