Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1950-04-28
Labor's tremendous
Stake In 1850
Elections Pointed Out
BY Robert r. Nathan
For Labor Press Association

going on as to whether the government was
prepared to do anything if business took
bad turn. This Is most unfortunate because it
indicates that we are still not gearing our
thinking to forward planning but rather to
makeshift and patchwork adjustments.
Although there is not much serious pessim-
ism on the economic front, many persons In
the government and in business expect unem-
ployment to 60 above five million during the
summer months Payments of the National
Service Life Insurance refunds to veterans un-
doubtedly have stimulated business in the past
couple of months but they are now tapering off
and retail sales may begin to fall off. Unem-
ployment may then turn up not only because
of increases in the total labor force but also
because of declining employment.
What is especially distressing is the fact
that so little recognition is given to the basic
reason for unemployment. We stick out our
chests and pride ourselves on the fact that en-
ployment is as high as it was year ago, but
we skim over the fact that obviously there is
not enough buying power in the hands of the
mass of American consumers to create suf-
ficient market for the employers in this coun-
try to hire all the people who are available
to work.
Maybe it isn't a national disaster when only
7 percent of labor force is unemployed
but those four million workers who can't find
q job are 100 per cent unemployed and it is
ployment can never be regarded as satisfac-
tory as long as any significant number of
workers are unemployed The al test of the
desirable level of employment is in relation
to the total labor force and not in relation to
some level of employment in the past. In
1892 there were many persons employed in
the country as had been employed twenty
years earlier, but there were Is million per-
sons looking for jobs in vain.
TTn1esS there come significant inoraaco in
the real buying power of consumers so that
more of the products of American industry
can be sold, we shall be faced with increasing
unemployment. Too few businessmen have
shown any tendency to cut prices in order to
increase the demand and the market for their
products. Instead the tendency has been to
maintain or to increase prices to try to protect
or increase teh phenomenal profit margins of
recent years. This is self-defeating because if
there is not enough of market for all the
products of industry then total profits will fall.
There is little evidence that the government
Is really prepared to meet the situation of in
creasing unemployment effectively. President
Truman has asked Congress for increased COW
erage and benefits under the unemployment
compensation system. This created bit of
stir, but soon as the statistics showed de-
cline in unemployment for March, almost moth
ing further was heard about this important
measure. This is further evidence of Congress
putting on the blinkers when it comes to plan
ming public works, but such planning has been
on a small scale compared with what may
be needed.
In the field of taxation, there is little talk
let alone action-about gearing the tax
structure and tax rates to the requirments of
the economy If unemployment tends to in
crease or even remains at present levels, the
taxes which fall most heavily on the middle
and lower income groups should definitely be
reduced. This means the elimination of most
excise taxes, the lifting of exemptions, reduc
ton of income tax rates at the lower levels,
and general shift in the taxation program
from the lower income groups to those with
higher incomes and to corporations.
Effective plans to prevent unemployment
or to halt and overcome depressons when un-
employment begins to increase cannot be
pected as long as the composition of the Con-
gress is not substantially changed. The coali-
tion of conservatives in both parties is still
strong enough to prevent essential liberal legis-
lation. Therefore labor has a tremendous
stake in the 1850 elections. Only moderate
shifts in both the House and the Senate are
essential to insure that there will be Con-
gress in 1851 and 1882 which will truly reflect
the interests of the American people and which
will support legislation designed to avoid mass
unemployment and to prevent those hardships
whic hhave come to the American people in
Before many more months have passed,
most labor unions will have succeeded in win
ming pension and social security programs in
their negotiations with employers. Negotia-
tions will then begin new contracts, and
labor faces a serious decision in determining
its objectives in these new negotiations.
Unless industry voluntarily reduces prices
now so as to increase real buying power of
the workers, and thereby restore full employ
ment, labor unions must again strive for wage
increases in an effort to re-establish the basis
for continued prosperity and full employment.
Union leaders will be watching price and en-
ployment trends in the months ahead in order
that coming negotiations will be based on
economic policies which are in the best in
terest of the workers and the country.
NOTE: Economist Robert N a h ar won
distinction during the war as chairman of
the Planning Commission of the War
Production Board He was later Deputy
Director of the Office of War Mobilization g.
Reconversion. He has been consultant both to
the French -Indonesian government and the
Jewish Agency for Palestine. Mr.. Nathan is
author of the book "Mobilizing for Abundance,
and co-author of Palestine, Problem & Prom
ise." He is also well-known for his two CIO
reports, "a National Economic Policy for 1949
and "A National Wage Policy for 1947."
The editorial notes that only Denham can
determine when to issue a complaint in unfair