The Wyandotte news-herald. (Wyandotte, Mich.) 1943-1963, 1946-03-07


tsorewball economist in the news
paper editorials" snorted August
Scholle, referring to Michigan
newspaper editors. "Yet the same
editors show total disregard for
consistency. They say that labor
has grown up and should assume
responsibility. How can we assume
responsibility for full employment
and yet limit ourselves in collective
bargaining, hours and working con-
ditions?
Scholle, the speaker, is the presi-
dent of the Michigan State CIO
Council. He is regional director of
the Clio. He is Michigan director of
the Political Action Committee,
commonly called the Up. A. c."
His audience was a group of COL
lege professors and instructors.
These men had invited representa-
tives Of management and labor to
present their viewpots. Two weeks
before the same audience had lis
tened to John L. Lovett, manager
Of the Michigan Manufacturers
Association. Now they were getting
labor's viewpoint, as seen by the
CIO top command and reported by
Scholle.
This country must have higher
purchasing power, If we are to Off
set the decline In government war
orders" said Scholle During the
war our national economy was 100
billion dollars, of which the govern
ment supplied about one-half in
war orders.
Now everyone agrees that we
need full employment and full pro-
cuction. We had potentials for a
high production from 1899 to 1941
IN this country. Why didn't we get
1t? Because Of lack of purchasing
power. We must have higher pur-
chasing power in 1916 If we are to
. offset the decline in federal war
orders and II We are to purchase
what We produce"
Scholle condemned the National
Association Of Manufacturers for
recent newspaper advertisements
urging removal of price controls as
means Of attaining full employ
ment and production. "Manufac-
turers want to make all the profits
they made during the war;" he add
ed, maintaining industrial profits
increased 900 per cent while the
wage Of labor was restricted by the
government" CD: Excess profits of
manufacturers were taxed by the
federal government and hence re-
turned to the federal treasury
Scholle's pro-labor statements
; may be accepted as "straws in the
wind" of viewpoint held by many
unions.
Their objective Is maintenance of
, purchasing power through higher
wages.
High wages" do not mean war
time rates, either on an hourly or
weekly basis, but the maintenance
OF wartime take home earnings:
hence the CLIO demand Of 48 hours
; pay for 40 hours work which at
overtime rates is equivalent to IL
hours Of additional pay for each
work-week. Increase the hour rate
, for a 40-hour workweek by 30 per
cent and You would retain the
; workers war time-purchasing power
J so goes the Go argument. It's very
. simple. or Is it?
Unless wages are increased. an
other depression is inevitable, &C
cording to Scholle. The CIO view
point is that the manufacturers
profits can absorb q 80 per cent
wage increase without shifting add
ed labor cost to the consumer in
the form Of higher prices.
The position of management, of
course, Is just the reverse. Higher
wages mean higher prices, and the
higher prices only reduce purchas-
ing power.
Thus you arrive at a vicious
cycle, the foundation for initiation.
We recently received a statistical
table comparing 1915 earnings with
1899 earnings. On a dollar basis,
the automobile worker in 1945 re-
ceived $2,748 compared with s1,611.
On a basis of 1889 purchasing pow