Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1948-06-25
BY Bradford v. Carter
LPA COlumnist

to grant wage increases. GE
was among the many corpora
tons which echoed Steel's
words.
Last week this column told
the story of how the auto in
rustry was moved, by the
promise of continued initiation
to abandon its loyalty to the
"big steel line" Prospects for
more profits changed the
minds of industry's leaders.
They reversed their previous
decision to slug 1t out with
labor this year.
OF course the new price in
creases-which were announc-
ed this week by the farm
equipment industry, and the
chemical companies as well as
by Civil be blamed upon
labors' wage demands. The
ability of many corporations
to grant pay boosts out of prof
its will be soft-pedalled as al
ways.
The Federal Reserve Board
has estimated that the middle
income" of Americas 42,000,-
900 families was 5000 last
year-$320 higher than in
1946. But 13 out of every hun
dred families are handling less
than $1,000 cash, and another
18 are getting less than $4,000.
When the FRB figures are
broken down by the occupa-
tional groups, we find these
middle income" figures: fam
lilies of businessmen and man
ayers S45O0, professional work.
ers $4,000, skilled and semi
skilled workers $4,000, clerks
and sales people $4,000 and
unskilled workers $1,000.
Farm families show a cash
income middle" of only $500,
but as FRB says, many farm
ers have "a substantial nom
money income"
Incidentally this middle in
come" stuff Is a little tricky.
1t doesn't mean average in
come. 1t means that 50% are
above, 50% below the figure.
Remember the Bureau of
Labor Statistics study which
demonstrated that it takes at
least $4,000 a year to provide
adequately for a family of four
in our cities today.
This statistical picture of our
present initiation, which has
been aptly called "a full en-
ployment depression, is well
known to the top men of heavy
industry who have just revers-
ed their tentative decision of
trying to hold the price line.
But with the country con-
vinced of the necessity-and
we don't dispute it-for foreign
aid and a defense program,
the industrialists believe they
can get away with it. Sure,
more consumers will be priced
out of the market, but govern
ment orders will fill the gap.
Somehow we doubt that the
Republican convention now in
session will worry itself about
the problems this picture pre-
sents. The last thing that the
men who make the wage-price
decisions would stand for would
be their party's coming out
for a clamping down of the lid
on initiation. .
"Price CONTROL" commodity
allocations". repeal of Taft
Hartley, minimum wage re-
family allowances"
all these will be considered
naughty words in Philadelphia
this week.
But there's one little point
the boys seem to be overlook
ing. 1t was made recently in
an article by Leon Keyserling,
a member of the Presidents
Council of Economic Advisers,
Just suppose, Keyserling says,
we come into the 1950s without
further need for foreign aid
and arms expenditures. Then
what?
1T does not seem realistic
to anticipate that wages would
be increased voluntarily or
prices decreased systematical-
ly at the very time when the
outlook might be
dampened by a decline in gov
ernment spending.
Delay in adjustment would
result in curtailment of pro-
duction and employment fol-
lowed by disorderly price
breaks and general economic
decline--the typical spiral of
depression" Keyserling pre-.
diets.
The economist isn't a de-
featist, however. He points
out that If the sort of things
that the labor movement has
been advocating in its legisla-
tive program and its wage
drives are done now, If con-
sumner purchasing porwer is
up now, democracy