Montana labor news., 1949-12-08
Robinson CruSoe
Discusses Pensions

'enSiOnS
workable; it still left you irM TO
change your mind, start lining bet
ter and planning more intelligently
different ~zou.. y ali scrimp
ard save and p''~k~..- dollars
instead OF buying ~thin.3St> lem.
\ man here and there car.
without any effect eN,crt 10 a,
privc him oi the crjol mcnt OF HE
he might have, but ii we all do it.
u most OF us do t, there is no
reason To build nrA factories in
which Ia invest he savings ac-
counts we pile up. np reason iur
the companic, that hire rs To keep
on hiring Us. and then we are out
OF work, stand ;dle. he factories
stand idle. and men 60 hungry who
would like to work and produce
the stuff Tor themselves and their
families I eat. Olt oi our eli ,rts
/ save or future security we get
a depression and its much worse
and much more f',iirsh even .lan
The way You piled up corn for the
wrtv;ls."
" no Owns Rigs?
Crusoe pulled AT his heard and
studied the situatic,. He thought
hard a while. perplexed and
troubled. Il would judge" he said
after considerable thought, that
you have that trouble because most
Of you don't own the rigs yui work
with"
told him quite a few had
reached the amc conclusion. but
that II was lar IRON popular IN tact
it WAS a line OF thought severely
frowncd upon by all leading ciii-
zens and even labor leaders. They
were bent on the preservation Of
what they called Free Enterprise.
or the ownership OF the rig, by
those who don't work with them.
and currently there seemed little
hope OF attacking the problem by
any scheme to let workers use the
rigs to produce stuff for their own
use instead OF waiting until there
was a market for the goods that
would induce the rig-owners to hire
them again in the hope OF making
a profit. Any suggestion TO change
that would be called "snbversiy,'
| explained.
Crusoe's reaction to this was to
make a few depreciating circles
about his head with his hand, and
! had to nod my concurrence with,
his judgement. What was wanted.
| explained, was some solution TO
this problem Of security within the
framework OF that Free Enter
prise system"
Spend Some Money
When folks save up money he
suggested, 'and bring OH one Of
those deprcssions BY saving it, why
don't they spend their money for
goods, and thus create orders Tor
the factories, and more work ior
themselves :"
Trouble there | had 10 cN-
plain. is that most folks don't
manage to save much money. They
don't get enough to save much
and went on To explain Why
even with large unions his was 50.
He soon understood that it was 4
rather unavoidable distribution Of
income that had led the unions re-
Gently to make these security de
mands Tor old pensions. insurance
and the like.
Well, said Crusoc, its no
more than right that the companies
undertake to pay an old age pen
sion so the old folks can buy food
and clothes. If the unions get them
to agree to that, what trouble do
YOU get from it,
Where Put Pension Fund?
"A lot Of troubles" told him.
First Of all ii makes companies
very unwilling to hire workers Owe
40. Some figure just that factor
alone has made the pension idea
yield more insecurity than security.
Then it ties a man to one job. That's
the employer drive a harder bar
not only bad for him. but it helps
gain with him, and that OF course
makes for a still worse distribution
OF income and the depressions and
troubles that come from that. II a
company goes out of business. II
leaves the men unprotected, and at
an age where under the pension
system he'll find it extra hard to
get a job, Then there is still the
same old question Of saving money
even when it is a pension plan in
stead OF each man trying to save
for his old age. If the company
! doesn't save up money To pay PEN
sion>. but pays them like steel in
dustry does as a current operating
expense. that creates the puzzle what
is a company TO do il it hits hard
times and hasn't any income or any
resources much except an idle plant
And If it does put the money
aside Tor its workers each pay day
what will it do with the money: Ii
will have to invest it somewhere,
and as you must have grasped now,
the demand for goods determines
eventually how much investment it's
possible to make. and the investment
opportunities are regularly taken
up even without these extra billions