The midland journal., 1946-05-10
LOOKING
! AMEAD
BY GEORGE S. BENSON
h PresideAf--Hddixg college
Searry. .ArkaKsas
What's Enough?

What will John Q. Public pay for
what he wants? He will pay every
cent he thinks it is worth to him.
Ultimately he will be willing to pay
more, if he finds out the item is
worth more than he first thought.
On the other hand he will kick at a
price and refuse to pay it as soon
as he finds out any item is worth
less to him than the money he paid
for it.
These statements are so plain and
simple that any schoolboy is able
to understand them. You would
hardly think anybody could get
these facts mixed-up, but they are
often used wrongly. Under them
is hid the 1916 labor-management
problem which is the most serious
and the most dangerous one that
has ever confronted this nation.
What lies behind all the headlines
telling about strikes?
Can't Get Together
In extreme brevity, union labor
ers are asking their employers for
more pay-more wages than the
employers (for some reason) are
willing to lay out. Why not pay
working men whatever they ask?
All trades, especially farmers, want
laborers to draw high wages be-
cause that's the key to good times.
Farmers, whose fields feed the work
ers, have good markets and pros
perity when labor prospers.
The answer is not hard: The
workers wages, just like the own
ers' profits come out of what John
@. Public will pay for what he
wants. If the price is too steep for
John, then there's no sale and no
profits and presently no wages. If
the price is within reasonable range
of Johns pocketbook, he buys. That
makes profits and wages - better
jobs and more of them, and pros
perity.
High Wages Popular
There is such a thing as oppres-
sion; have seen it in China. There
is such a thing as exploitation of
labor-ignorant labor. But it's fool
hardy to mistreat workers in
modern American factory. If an
employer should try holding wages
down to fatten his own bank ac-
count, his customers would all favor
higher pay for his workers because
Tin such a case) it could be done
without boosting prices.
In most cases, when wages ad-
vance prices have to advance to
cover the expense. There is no
other way to raise wages except by
boosting prices unless the prices al
ready in force are fictitious and
unfair, which competition seldom
permits. Customers object to wage
increases only when they call for
price increases to cover them. Even
then, Mr.. Public is not always right.
Who Can Say When?
Many a wage increase is appro-
pirate and economically sound even
when prices haze to be raised i'm
mediately to cover them. Boosting
prices to pay better wages is good
business, up to point. But aohat
point? Up to the point that John @.
Public gets slow about buying. So
long as volume can stay large, the
price is sound. When volume drops
off and prices have to be boosted to
pay for the blunder, that's unsound.
There are experts in every busi-
ness who can estimate with remark
able accuracy how many of this
or-that will sell for some stipulated
price. They know long before the
first one is made. This year, when
steady jobs at good pay are so vital
20 everybody, prices should be set
4 advance to get volume sales.
Labor, as we'll as industry. sh0a2ld
be interested in the right prices.