The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1947-05-22
Guaranteed Pay
Gets New Boost
BY u. S. Experts

Washington (LPA) - A strong
case for negotiation of guaranteed
wage plans has been made by the
staff of economists who were
charged by President Roosevelt in
March, 1916 with preparing q
study of the workings of such
plans.
The final report of the guaran-
teed wage study was received with
out the fanfare that marked its
early days, and no government
agency took the trouble even to
call to the attention of the press
that the Government Printing Of
flee last week finally had avail
able, for So, the fact-packed vol
ume, Guaranteed Wages"
While the study is the product
of impartial economists, there is
no question that after careful re-
search = including examination of
existing plans, figuring whether
industries could afford to guaran-
tee wages on scale that would
give workers some degree of secur-
ity, and weighing of proposals for
legal encouragements to guaran-
teed wage plans-the economists
think that the idea is a good one.
"In the 12-year period following
1922" the study starts out, "invol-
untary idleness cost the American
people $500 billion of real income.
That loss, if it had been produc-
lively used, would have been suf-
ficient to build al 1.-The railroads
in the country; to have substantial
ly rebuild the cities; and to have
permitted the replacement of all
obsolete and obsolescent equip
ment in the entire country. But this
was not done.
"The principal loser but by no
means the only one was the Amer
ican worker. Total unemployment,
and the partial loss of incomes
thru reduced hours of work, which
affected millions of workers also
threatened the security of the 9th
er millions. The tragedy, suffering,
and Illustration which character
lied the IL years produced deep
rooted demand for security, of
which the guaranteed wage is be-
coming one of the most important
expressions"
After careful study of the en-
ployment experience of Az estab-
lishments representing diverse
situations in a variety of indus
tries" over the five years 1887
1941, the study found these en-
ployers under various forms Of
wage guarantee plans could have
given workers over this time an
average of 900 of full time, and
at least 1870 of full time earnings
provided unemployment benefits
were liberalized as proposed in the
study.
The economists agree that
even widespread negotiations os
the guaranteed wage plans alone
cannot insure prosperity and Sc
curity, but they would serve until
major measures to overcome an i'm
pending collapse can be brought in
to operation"
Guaranteed wage plans "will aid
in removing the dead hand of fear |
from labor-management relations
and from the economy, permitting
he lifting of those restraints on
productivity which have long been |
characteristic of employment in
security" the study asserts.
"The guarantee of wages is not
/ panacea, but a tool, and tool
which becomes sharper, not duller,
With wide and more intensive USE"
t goes on. "And to suppose that
my single tool-be it the guaran-
eed wage, or public works, or
my other device-can become a
nulti-purpose instrument by which
III the ills of the economy can be
can lead only to :onfu-
ion and failure.
"The guaranteed wage used with
are, with full recognition Of its
limitations. and with ewes omen
o dangers in exceeding those limi-
ations, can become an integral
art of a rounded program for
reater security, for harmonious
ldustrial relations, and for a more
isting prosperity"
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