Montana labor news., 1948-09-09
ACTION URGED BY
LEADERS TO
STEM IMITATION

unchecked initiation bubble III
bound to burst with disastr-~
consequences to the nation, the
Executive Council Of American
Federation Of Labor proposed .
new program for ctive
action.
The council called upon the
government to bring together bus
iness and farm leaders with rep
reseutativa of Organized labor IN
4 Joint and voluntary effort to
safeguard The economic security
Of the country.
The detectives of such a program
the executive council declared in a
formal statement issued at the opening
session Of its midsummer meeting here,
Should be to bring about an immediate
halt to all price increases and a grad
ual reduction Of prices.
1T must be done in a way that will
not dislocate u economy nor cause
undue hardship to any particular eco
nomic group. Above all, the continual
ton of high employment must be safe
guarded" -,
AFL President William Green told
newspapermen at a press conference
that the executive council had spent
several hours in discussing the infla-
ton problem as its first order OF bust
ness because organized labor considers
the upward price spiral a grave threat
to the safety Of the nation and the
peace Of the world.
lust think what would happen to
the international situation" he said,
If we let things ride the way they are,
and 4 business crash results in America
which would make it impossible tor US
to extend any further assistance to the
nations Of Europe and Asia which were
bankrupted by war;"
In its statement, the executive coun-
Gil emphasized that the pressure OF
soaring living costs falls heaviest upon
low-paid workers and those with fixed
incomes.
But even industrial workers, who
have succeeded through their trade
unions in obtaining several wage IN
creases since the end Of the war, are
being caught in the squeeze, since wage
rates inevitably fall behind prices dur
ing an inflationary SPIRAL"
Mr.. Green reported that several mem
her, Of the executive council particu-
larly condemned the attempts OF bust
ness interests to blame higher prices
on wage increases. A large number OF
specific instances were cited where cor.
porations had raised prices two and
three times more than the actual
amount necessary to cover added labor
costs with the purpose Of fattening up
profits while making labor the goat.
In a slashing attack on the profit
policies OF big business, the executive
council said:
"As we survey the economic situation
today, it appears obvious that a large
part OF our current initiation is due, moi
TO shortages and unsatisfied consumer
demand. but to a deliberate policy on
the part Of big business.
"The substance OF that policy seems
to be to get what can be gotten while
the getting is good.
THE executive council solemnly
warns that by following such a policy
Of shortsighted greed, big business vii
only be digging the grave OF the tree
enterprise system.
Our national economy cannot sus
tain the effects OF initiation indefinitely
The bubble is bound to burst. When il
does, our hopes for an orderly and last
ing prosperity and the maintenance o.
world peace will be shattered.
America cannot afford such a wiif
gamble. We must act now to proven
disaster" -
Such action must be voluntary, tn
executive council explained, in thu
absence Of any effective action by Con
Rress," to check initiation.
Admittedly, the course Of a volun
tary program will be beset with diff
culties," the council said in the con
clusion Of its statement, but IT al
major groups in the nations economic
life join together in a sincere and con
certed effort to prevent a runaway IN
f~lation, tangible and constructive re
suits can be achieved"