Evening star., 1947-04-28
More Work, No sRoise
Urged for Prosperity

more WORK. INOsNUiSS
Urged for Prosperity
Free Half Hour Extra Labor
Seen Combating Recession
By Darid La,Drence
There's : sequel to the Newburyport
plan II the country really wants to re
price reductions that are substantial.
The plan In Newburyport il evidently
for the merchants to absorb some Of ths
losses on the goods they bought at
higher prices and TO induce consumers
to buy.
Something sven more advantageous
would be for the sacrifices to be spread
throughout the entire economic struc-
tlre 70 as to avoid recession" The
simplest plan, therefore. would be for
every one to agree to work an extra half
hour > day without extra pay.
This is infinitely better than . wage
reduction later, and it may prevent the
unemployment that can result when
prices are too high and consumers re-
fuse to buy goods on the shelves.
Most Of the predictions Of recession.
have been based on the theory that
present prices would encounter con-
sumer resistance, inventories would ac-
cumulate, production would be curtailed
and layoifs Of workers would be newt
able.
But If there is increase in output per
man, the unit costs Of production 20
down and prices then can be reduced.
sPer Cent Gain Is Seen.
II everybody in the factories worked
an extra halt hour without pay, the pro-
ductivity Of the Nation would increase
by about per cent. This means that
approximately $500, 10000 worth Of
labor would be contributed to the ma
tional welfare and price reductions could
readily be made, because merchants
would be assured Of lower prices for
their next purchases from wholesalers
ana producers.
The contribution Of an extra half hour
OF work would not restore productivity
to what 1t should be If national trends
are observed. It would merely bring
back the level which prevailed In ls45,
for economists realize that workers have
diminished their efficiency and there
has been . 'loafing on the job" despite
the increases in wages.
In some instances, labor unions by
one means or another refuse to permit
individual workers to give = full days
work and thus they really regulate pro-
duction, the theory being that this will
bring about the absorption OF any un-
employed. Unfortunately, 1t works ths
other way and 1t brings about more
unemployment.
The normal trend Of productivity In
America has been forced downward in
recent years. The prosperity and wealth
Of the United States have been built UP
by gradual increase In output per
manhollr over the decades OF history.
In recent years, the trend has been
reversed and today the figures show
that the something nothing pf,iloso.
ply has prevailed. The slogan Of the
unions has been more pay for less
work." This is basically the cause of
the distortions in the economic system
which are threatening = recession"
Wage Demands Raise Prices.
The danger in the present trend Is
that prices will be forced higher by
demands for increased wages without
corresponding increase in output. per
manhour. p.
The Newburyport plan has possibili-
ties in principal. Thus, wherever psy-
Geological pressure on those who can
afford reductions In price Is exerted,
the result Is beneficial; but where prices
are now at nonprofit level or at
narrow margin above cost, the price
structure can hardly be revised down.
ward unless there is assurance Of cuts
by wholesalers and producers for the
next supply Of goods.
1t could conceivably happen, II tho
public is induced to participate in 4
buying spree, that consumer needs for
articles hitherto unavailable would be
satisfied for the time being and q long
lull in buying would result.
The principle of urging lower prices
Is sound provided the sacrifices are not
to be forced upon producers alone,
without relief from the unreasonable
wage demands which enter 30 largely
In cost of production.
The average employer rightly does
not want to reduce wages except rs .
last resort, when 1t Is matter Of staying
solvent and keeping in business. To
avoid many failures and consequent
unemployment, an increase In output
per man and q reduction Of unit costs
is the most effective way to avoid re-
cession and bring prices down.
1t could be accomplished, rs . matter
Of fact, without that extra half hour
OF free work. 1t could be achieved
merely by putting a little more zest and
4 little more energy behind each hours
work 80 that the days total would be
something like it used to be, no less
than two years ago.
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