Detroit evening times., 1945-11-03
BEHIND
The NEWS
By Paul
Ma1lon

UyASIuNGTON, Nov. p
w Thirty-six hours before Mr..
Truman spoke. his speech con-
tanned a flat program for a 20
per cent general union wage in
crease.
AS later delivered, the argu-
mentS upon which the 20 per
cent plan had been based were
presented in detail-without the
20 per cent figure.
The arguments contended the
work-week for unions had been 1
reduced from AZ TO 40 hours;
one-fifth or 20 per cent OF 40.
SO the unions should get 20
per cent of their demands
without any price increases.
/ understand industry served
notice il would rebel against
such a program. Other reason
able interests would have
agreed such a political settle
ment was impossible of fulfill
ment.
Industry was prepared to
contend, furthermore, Mr.. Tru-
man had no legal authority TO
impose such proposition. Re-
siStance in the courts and
otherwise was a prospect.
60 THE propos tion was
~ hedged IN the final preSen-
tation-but how much no one
knows for sure.
Labor. in some instances how
ever, still thinks it means 70
per cent. Thus. the matter may
yet require considerable work
ing out.
While a change of adminiStra-
tion front 10 CIO economics ap-
parently has been narrowly
averted, the judicious plane Mr..
Truman finally reached is open
10 interpretations perhaps be-
yond those yet apparent to the
public.
The factors behind the de-
ciSlon 10 eliminate the 20 per
cent figure are these.
There is no economic juSti-
ficatinn for a flat 20-Per- cent
boost The unions contend their
take-home income should be
kept at wartime levels in order
TO maintain national purchasing
power
In the. first place the spend
ing program of the Truman adj
miniStration will run two or
three times higher than the
highest spending of the free
spending Roosevelt budgets 10
stimulate purchasing power as
never before.
In the second place, there is
already too much purchasing
power for the goods available, as
anyone can see from the way
people are throwing oney
around.
THE purchasing power is too
Il great for the amount Of
goods available and will remain
SO TOR the next IS months or
more.
The unions. of course. claim
they will not get their full war;
time wage under this settle
ment. because they will lose
overtime pay. This is true, but
from the economic standpoint,
the program means less produc-
tlon than wartime, much less,
and therefore continuance of the
shortage of goods in the face Of
already excessive purchasing
power.
The second proposition in
volved is that prices shall not be
increased. The wage cost Of
production cannot be increased
by one-fifth without an increase
in pricel The proposition is an
lncongruity.
THE theory of the unlonlsts is
Il that business has been maxi
ing rich profits. and the 20 per
cent increase can come from
that.
Wartime profits were based
on many factors that no longer
exist.
The manufacturer had fixed
contracts from a single cuSto-
mer, the government
They had the utmost mass
human effort, men doubling up
on Jobs. working AZ hours and
more, which cut their costs.
In smaller business and con-
sumner lines, the help shortage
cut costs. Also lowest quality
had an excellent market, and
brought prOiltS.
No need of SaleSmanShip ex-
pcnScS or advertising was in
NolvCd.
Even SO, prices could not be
held down. bolstered as the gov
ernment movement was with
patriotic fervor of the people
and utmost government Strln-
gency against chiSeling, black
markets. etc.
A S THESE favorable factors
"a to price-holding have passed,
a stretch of imagination is re-
nuired TO EXPECT that wage COSTS