Detroit evening times., 1946-01-17
Labor Demands
Slow Activity
By LEWIS HANEY

BN LEWIS HANth
FrOiessor Of Economics. Nev Nfrk 'nhsrsit'
Despite strikes, industrial and
business activity snapped back
lbravely from the holiday drop II
is 10 be- noted that there was a
much longer holiday tins year
than last. which Is almost entirely
responsible for the apparent let
down in trade a week ago.
Each day makes IL clearer that
but for labor demands The country
would be entering a boom. with
'reConVcrSlOn practically COM
plete and full normal employment
awaiting the returning troops
The story Is almost completely
told in the retail trade news. IL
IS one Of vast unSatiSnCd demand
and great shortages. The demand
is reflected IN the record number
OF retail buyers who flock 10 whole
sale markets in nearly all lines
The shortages are forceiully H.
luStrated by the bare shelves of
dealers in mems wear.
TWO CONDITIONS
Nor has the turn Of the year
brought any relief. The mistake OF
ettiphasizing the excess profits tax
repeal as factor IN causing 1910
scarcity. should now be apparent.
Some gradual improvement, as IN
hardware and appliances, Is occur
ring.s but that has been evident
for several weeks.
The plain fact is that two, and
only conditions stand he
tween us and prosperity:
ID The extreme demands oi
radical labor leaders, and t2l the
OPAerS.
These two are throttling pro-
duction. and thus preventing desire
for goods from becoming effective
demand. II you have any doubt
about the factual character oil the
fopegoing statement, Just reiiect
on fhe business newS--lt almost
all aboils down to strikes ana To-
price-hXing problems.
AT. the close of the week, the
seeIrity markets reacted slightly
under the influence of fears caused
berthe spread of strikes fffs
seems 10 me. however, merely 10
present buying opportunities; iof
it'seems rather clear that the cur
re,+ and Immediately pending
wage disputes are well on the way
TOWARD settlement.
. ~. =. NO ENTHUSIASM
base this conclusion on two
facts: The labor leaders are reduc-
inp their demands, and the admin
istFation is giving way on hoiulhg
down prices. -,
incidentally, I find no enthusl-
,sr, for the fact finding" commit
tees which the President has set
I'D without congressional acton
Indeed. the assertion OF the I'M
fact.fnders that 17la per cent
increase in wages would have no
'Tnflationary consequences is sol
obviously not a fact. but mere
oninion. that most of us are lkely
"a agree with the company IN
rejecting the idea.
Clearly. anything like a S4-a-ton
rise in steel prices Will mean
General rise in published price
51otations Ito say nothing of black
markets. The government is lea
ri favor il, partly as the only way
n ease organized labor into
downward readjustment OF real
wages (reduced purchasing, power
Of money wages), and partly as
means of increasing national m
come" and taxes (thus Tightening
the burden of debtD
SILLY ASSERTION
The almost silly assertion that
each case must be CONSIDERED
alone. and that l7l2 per cent
wage rise would apply only to ON
is too bad. The company Is right
irt replying that a particular en-
piover should not be forced to-
nav higher than competitive wages
because of its financial ability.
AS to price fixing, Bowles last
week drove another nail in OPA s.
coffin by proposing ceiling on
raw cotton. The Southern senators
probably won't stand for that. he
also retreated on his MAP sector.
belatedly hoping TO stimulate pro-
duction of low priced mems suits.
But the shortages of corn Tor
industrial uses, and Of butter, pep
per etc. all due TO price malad-
iustments under price controls,