Madison County Democrat. (London, Ohio) 19??-1958, 1950-10-17

DeSiIllilIiS* pOllit W SoiiPoiC ~s
race between wages and prices IT.
will be found that the cost of liv-
ing had risen by "a percent
through August 1850. In the same
period of time, average hourly
earnings rose from 63c to $1.46 or
a gain of 131 percent. Average
weekly earnings advanced from
$2386 to $6028 or a rise of 153
percent. Tho greater advance of
weekly wages is due to some
lengthening of the work week.
Clearly, then, on this basis OF COM
parison wage increases have out
distanced the rise in living costs.
1t may be said, however, that it
is unreasonable to use a. base of
comparison. that goes back nearly
II years, ito the preWar. year of
1889. but that q ,paore recent year
should be- useds Hothea first, post
war year of 1916 is selected as a
starting point, it will be found
that the Consumers Price Index
rose "a percent through August
1850. In this same interval, hourly
earnings advanced 35 percent and
weekly wages 38 percent. Again
it is plain that wages are still
ahead of prices.
If still more recent period is
urged for comparison purposes,
the year 1948 might be selected
since that represented, until this
summer, the postwar high in pro-
duction and employment. With
1948 as a base, the cost of living
was up only one percent in August
1850 while average hourly earn
ings had gained eight percent and
weekly wages IL percent.
s5 To bring the comparison up to
date 1t is possible to make es-
Inmates for September. 1t ise un-
likely that the cost of living index
rose in that month by as much
as one percent since advances in
rent, clothing, and other parts
of the index. were offset some
what by a small drop in retail
food costs. On this basis the index
stood at about 76 percent above
1889, 26 percent above 1916. and
only 2 percent higher than i'm 1913.
For those manufacturing wage
earners that received 1Oc an
hour increase in September (and
the number is large and Some
raises were even greater) the
average hourly wage rose to about
S1.56 or 146 percent above 1899.
"A percent above 1916, and Is
percent ahead of 1948. Weekly
wages will show an even larger
gain because of the longer work
week. - f
1t thus appears that the man.
.Yufacturing wage Garner hasSscor
ed advances in earning power that
are above rising living costs.
The apparent willingness of EN-
pleyers to grant wage increases
at this time is probably due to the
tight labor market and the'e diff
4ficulty of holding present em-
}sployees and in recruiting addition
al help Further considerations are
the apparent ease with which cost
increases can be passed along
to hungry buyers and the. fear
!, OF wage and price freeze orders
THAT might catch employers with
noncornpetitive wage scales
The unions on the other hand
want TO obtain increases before
any wage-price stabilization order
might become effective. fi
At this time, it appears likely
) that the cost of living will con-
tlnue to advance for some time to
come. Recent wholesale price in
creases Cnduced in part by high
er wage costs already incurred)
have not yet been fully reflected
In retail prices. 1t would take.
however, boost Of nearly IS per-
cent IN retail prices to cancel out
the wage increases achieved since
1913 and increases of this magni-
tude are not in sight. sI