Milford chronicle., 1947-09-19


deal in luxuries and fashion items have real
ly large mark-ups- that is unavoidable in
their case because of limited sales and the
extremely high overhead cost of carrying on
luxury business which meets the special de-
mands of luxury buyers.
Competition, that most inexorable of all
forces, keeps prices at the lowest level COM
patible with sound business, and with tOday's
high wages, taxes and other general costs.
Americans need to consider the fundamental {
economics involved.
NO THEORY HAS BEEN MORE thor
oughly exploded than the argument that
higher wage rates need not be reflected in the I
selling cost of commodities. Since 1889, the
wholesale prices of manufactured goods have
risen 7S percent. That corresponds almost
exactly to the increase in wage costs since
1898 percent.
The theory might have had validity had
it included the stipulation that production per
man hour rise along with wage costs per unit
of production. But that has rarely been
mentioned by the labor economists-WithI
one or two distinguished exceptions On the
basis of the latest available figures, produc-
tion per man hour is only about IL percent
better than in 1889, despite that 73 percent
increase in wage costs. And production per
man hour is under the 1941 level.
There is only one real arbiter of prosper
ity-and that is the amount of goods the peo-
pie can buy. 1t is obvious that doubling the
number of dollars in pay envelope does no
good if each dollar will buy only half as much.
In the past we managed to hold down prices
even as we raised wages because workers and
management steadily increased output per
man hour. We are now seeing what the re-
versal of that does to the wage-price struc-
ture.
So far pay increases for most workers
may have offset the price increases. But if
imitation ever gets the bit thoroughly be-
tween its teeth, the purchasing power of ev-
eryone will decline catastrophically The So
luton is more output to offset the record
wages paid in all industry today.
NSo&~E
CALLING ON THE NATION to join in
a concerted effort to prevent fires, President
Truman has proclaimed the week beginning
October as Fire. Prevention Week.
In his proclamation, the President said
Il earnestly request every citizen to eliminate
all possible causes for destructive fire in his
home and place of business" That plea goes
to the heart of ire-prevention. The many
organizations whose business it is to fight
fire are doing magnificent job, and their ef-
forts have been brought to peak of intensity
this year. But they cannot do much without
public support. The nation cannot provide an
army of fire-prevention experts to inspect
every home and business building, correct
dangers, and see that they stay corrected. AL
the authorities can do is to tell us how to pre-
vent fire-and after that it is up to the in
dividual
If anyone doubts that fire prevention has
assumed the stature of an emergency condi
ton, he need only look at the statistics. Dur
ing the first six months of 1947 alone, fire
losses in the United States reached the stag
gering total of 1868, ,276 O00-and that doe.
not include the major portion of the Texas
City disaster. Loss of life has shown simi
lar increase. In most homes a very small
expenditure of time and money will eliminate
the common hazardS-and no investment Cal
produce better returns
IT is AN ACCEPTED FACT that tn
, Worlds worst food shortage of modern time
| is at hand. Senator Vandenberg says tina
: there is need for special session of Congress
before January, to act upon relief to tn
i starving people of Europe. Senator Tai
does not favor the extra session.
1t is the Presidents responsibility to ca
t that session, if the Congress is to be recon
s vened.
: There is another side of this same ques
tion, and that is the high cost of food righ
here in every part of the United States.
There are several million Americans VIII
/ are working on slave wages"-and not on
n of them belongs to labor union. Thousand
IS of deserving folks don't get pay enough t
7, buy sufficient food to keep themselves an
IS their families going, no matter how hard the
al struggle to keep off public relief rolls.
/ So, while the politicians are crying the
IS eyes out about people in foreign lands the
le should spend more time preventing pyramiC
Ie ing OF wages in many industries that hay
reached the peaks
d How can poverty-stricken people pa
1t around dollar dozen for eggs, and nearly
lie dollar for pound of butter?
Ii you have the answer you are doing be
1T ter than most of the politicians who are MAJ
aging our National Government.