The union times., 1947-11-15
Taft Figures Riddled
Taft Figures Riddled
 Real'Wages Slump ByMore Than $5 e Week, us. Says Buying Power Of Workers Earnings Steadily
 Declines, While Profits Soar to New Peak

In a speech at Boston he claimed that wages have outstripped living costs and led to imitation. He even went so far as to say that the buying power of labor is so tremendous that 1t is purchasing more than industry can produce"
 Then he turned his imagination loose and proclaimed that wages were up no per cent and prices only 60 per cent.
 Is Taft right? Absolutely not, ac- cording to official figures just issued by the Bureau of Labor Statistics of the Department of Labor. These fig ures, incidentally, are relied upon for accuracy by the business world as much as by labor.
 What do they show? First and fore most, they disclose that "spendable" earnings of manufacturing workers, in terms of the pre-war buying power of the dollar, have dropped off more than $5 week, or almost IS per cent, since the wartime peak in 1924. REAL" WAGE STILL SHEDDING 
 In current dollars, wages have been slowly rising, but have not for long time kept up with soaring prices, the bureau pointed out Its "spendable" yardstick, the bureau explained, is ar rived at by taking into account the ad- vance in living costs, as well as social security and income taxes deducted from pay envelopes
 On that basis, the bureau said, a worker with three dependents had "spendable' earnings in August of only $29.58, expressed in 1889 dollars, com pared with an average of $34.89 during lo44.
 Still worse, the report showed, the purchasing power of workers wages declined for four successive months from May to August-and continues to go down hill.
 Prices, meanwhile, keep reaching for the moon. During August, for exam pie, retail food prices mounted by Is per cent, and during September the rise was much greater-from } to per cent, or at rate of about 40 per cent year, the Labor Department pointed out.
 That brings the food price index for September to the staggering all time peak of nearly IA per cent above August, 1889, the department revealed. For such mainstays as meat and fish, the increase has been even greater from 140 to 165 per cent These are the latest official figures.
 Thus, 1t is clear that wages are by no means prime factor in the sky rocketing of prices, Secretary of La for Lewis B. Schwellenbach declared. Excessive business profits are mainly responsible, he insisted.
 PROFITS BOOMING
 These profits have zoomed to almost unbelievable levels, it was admitted by even the leading organs of the business community
 For example, Business Week." in its November 1 issue, reported that corporations are heading down the homestretch of the biggest year, pro- htwise, in all history"
 Third quarter earnings state- ments that are coming out now make wonderful reading for stock holders and managers - even in comparison with the record earn. ings of the first half of this year." the magazine declared.
 Unless something completely un- expecSed happens in the next couple of months, U. s. corporations are go- ing to wind up the year with total income 50 per cent or so above lo46 (itself record)."
 $50 PER CENT ABOVE 1889
 In similar ecstatic terms, the Wall Street Journal" reported that earnings so far in l947 added up to the highest ever recorded for such a period" Among l46 companies it analysed the rise for the third quarter alone was "a spanking 46 per cent" above last years corresponding quarter.
 And reporters interviewing ton cor porate executives in many cities were told by most that the outlook for the rest of the year continues bright-the last three months may be the most profitable of the year" the Journal" added.
 Both publications estimated that cor poration profits for l947 will go over the $l7,OOOOO0,000 mark, an advance of almost so per cent over the banner year of l946. Compared to 1939 profit after-taxes of $2,30O,OO0,OO0, the 1o47 total will represent an increase of close