Evening star., 1946-03-05
Economic Turbulence
Seen Likely to Grow
GM Strike Settlement Won't End
Stoppages, Writer Contends
BY David Laurence

BY David Laurence
An impression prevails that when the
General Motors strike is settled busi-
ness will pick up and the whole pattern
for settlement of wage controversies
will have been designed. The opposite
happens to be the view taken by some
of the men familiar with what is hap
pening in the motorcar industry.
1t is pointed out, for instance, that
there are severe shortages Of important
parts needed to make finished auto
mobiles. The public doesn't care to buy
automobiles without locks or without
upholstery or without some of the other
vital accessories, and yet strikes or work
stoppages of various kinds are still 60
ing on which will delay any big volume
of cars from passing through the as
sembly line to dealers.
The impression, moreover, is gener-
ally that the steel strike situation has
been clarified. Far from being settled,
there are many fabricators of steel
struggling with the wage and price
problem.
want ActlOn on PrlceS
Then there is the matter of getting
prices changed. The assumption is
widespread that once the OPA permits
certain price increases so as to absorb
wage rises, all will be well. In some
instances, where manufacturers have
not had any strikes but have given the
wage increases demanded, there are
applications pending for increases in
price which are not being acted on due
to the delays in writing rules and regu-
lations Meanwhile, the managements Of
some plants are spending every day
vast sums keeping their operations 60
ing and waiting for action from Wash
ington.
Even when the price increases are
granted after a showing of facts, the
sudden increase in the cost of materials
due to strike or wage settlements oc-
curing after the new prices are author
lied will send the whole matter back
to the OPA for further revisions of the
price structure
1t is said that in some industries as
many as three or possibly five different
NfPAASoSAOAAo AOA PA4SC SIAd11SCS WILL U6
made during the year as the costs of
materials are made known to the
manufacturers
What isn't generally realized is that
the whole economic system is in danger
OF being slowed up for many months to
come. The optimists are saying that the
second half of 1916 will see boom times.
especially in meeting pent-up demands.
Another school of thought believes that
1916 will not see any boom times but
that by 1947 the factories may possibly
be going at high production levels and
the whole situation may be adjusted
| but that, in the meantime, vast sums
will be paid by the Federal Government
and the States for unemployment COM
pensation.
Figures on Jobless.
Much is made by some observers OF
the fact that the Bureau of Census Of
flclal unemployment figures are sup
posed to be about 100000, but this
does not include the 100000 who are
drawing various kinds of compensa-
ton on account of veterans benefits,
mustering-out pay and terminal-leave
payments. About 100000 men remain
to be discharged from the Army and
Navy.
1t Will, therefore, be about September
before any real estimate can be made
as to the number of persons who are
not working. The shortage of man
power which is felt in some industries
is due to the need for specially
trained or skilled labor and to the
fact that many of the so-called
unemployed are veterans who have
not been able to settle down be-
cause of lack of housing or uncertain
ties as to the jobs they may wish to
take. This is an era of uncertainty for
hundreds of thousands of men.
The purchasing power of the country
has not been too seriously affected be-
cause OF the huge amount of money
saved in war bonds and because of the
various forms of relief compensation
paid by States and the Federal Gov
ernment. BY the end of another six
months, the country will face not onlv
diminished purchasing power but q
severe unemployment situation unless
the strikes and work stoppages are
quickly settled, which, of course, few
persons who know the true situation
are expecting to happen
Economic unrest, which means the
failure of management and labor to
ADJUST themselves to a complicated, if
not unavoidable, wage-price policy, is
q fn
IN the next several months. The better
part of realism is to face the fact that
1916 in an economic sense will be a
hard year for the American people.
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