Dickenson County herald. [volume] (Clintwood, Va.) 1939-195?, 1945-11-08
News 10
BEHIND,
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% PAUL MATLON 70
Released by Western Newspaper Union.
By PAUL E1ALLON


WASHINGTON. - People do not
seem to understand the meaning Of
imitation" which is being raised as
a spectre behind the daily news of
strikes, wage debates and govern
ment economic planning.
No one in this country has seen an
imitation walking, or I should say,
running. Adults with memories
may recall it as something which
happened in Germany after the last
war, when bushel basket of money
was necessary to buy a meal. But in
general the news debate treats it
as an infinite kind OF prospect with
out dimensions, a sort of economic
hell they know can happen, yet they
cannot picture it.
The kind of imitation talked
about now, should be easy to UNI
derstand thoroughly. We have
gone far enough toward it to
make the landmarks visible. 1t
is unlike any which has gone be-
fore in history, because pri-
marily it is a price imitation.
In Germany, the wreckage of the
money system and the bankruptcy
of the country, brought the condi-
ton in which a glass Of beer cost
100 marks or so. In other countries,
such as China, a depleted treasury
already has brought comparative in
fation.
We are not bankrupt and our
treasury took in IS billion dol
lars last year. Ours is an imitation
Of prices directly. We have a short
age of goods, all goods, due to war
wastes, increased consumption and
free distribution of our supplies
around the world. The cost of many
things already has doubled since be-
fore the war.
WILL REFUSE TO BUY
Now the unions want 30 per
cent wage increase in this time of
goods shortage. However much they
get of their demand, prices will be
increased at least that much and
probably more. My experience as
consumer in this brave new eco
nomic world has convinced me
that all that is needed to increase
prices is an excuse.
If man can sell his goods for an
ever increasing price, he will do it.
If he controls a sellers market
such az we have now where people
pay anything asked, he would be
superhuman if he did not resist both
the loose government regulations
and conscience, If any.
But the course of upward
wage jumps and upward price
jumps will run, as soon as the
shortage of goods is over, into
buyer resentment. The wage
price inflationary spiral in
evitably must encounter the day
when people will not buy.
Indeed there necessarily must
be day when they cannot pay
the price If they would, because
the wages of no other class have
increased as have the wages Of
union labor. We are getting to
the point where we can see the
people will close their pocket
books and strike or will have to
strike in the economic sense,
purchasing only that which is
necessary.
Then the house will fall down. The
spiral will collapse with thud. De-
Ginning demand will cause declining
production unemployment - depres-
sion.
From then on the depression can
go many ways. The government
cannot collect even IS billion dol
lers or a fraction of it from a coun-
try in the throes of depression. De-
clining business brings declining tax
receipts. The government can hard
ly borrow on top of 300 billion
dollar war debt for deficit fl
nancing to promote another gigantic