Madison County Democrat. (London, Ohio) 19??-1958, 1951-08-14
TOday's Mirror
Of Business
BY sam Dawson

1y Gam RdWSOH
NEW YORK, Jap Uncle Sam,
TO many people, seems to be GO
ing into the business of guarantee
ing prices. wages or profits for
more and more citizens. Usually
those who benefit are very vocal,
organized groups.
The urge for secJ1ity grows In
turbulent times. Those. seeking
from their government guarantees
that prices Of their products be
maintained, that take-hoine pay
keep step with the cost of living,
that profit margin be insured ag-
ainst price-cost squeezes, all have
strong reasons to believe their de-
1nands are fair and lust.
It's those who believe they don't
have any guarantees-the white
collar workers. the pensioned. the
retired man, any one trying to
live on his savings and invest
ments, the consumer in general
who question the guarantee. Here
are some of the guarantees:
Prices-the parity system is de-
signed to protect farm prices from
falling below level regarded as
a fair balance between what the
farmer gets for his produce and
what he must kly to live and
produce it.
To the city dwellers this may
look as if the government is guar
anteeing the farmer a sure thing
and at the taxpayers expense. But
the farmer says that despite some
forms of crop insurance he still
has to gamble with the weather:
that without parity support he also
would have to gamble with general
economic conditions, and easily
could be ruined
Wages-the Wage stabilization
Board has just moved to guarantee
the value of take-home pay ag-
ainst rising cost of living. The
board approves tacking wage rates
to cost of groceries, clothing and
I rent.
To the unprotected whitc-colIar
man, this may look like govern
ment guarantee Of income to q
favored segment. But the protect
ed worker points out he has no
guarantee he always will work q
full week or every week in the
year. Despite unemployment in
surance, the labor unions now are
driving for the guarantee OF an
annual wage as onesof their next
ohjectives.
Profits critics of the recently
enacted control law contend it
guarantees profits to manufactur-
ers and merchants. Manufacturers
T. can pass along TO consumers any
rise in costs up TO June 26. Merch-
ants can add their normal mark
ups to the price they pay for
goods.
To the consumer that appears
to be government floor under
business earnings at the consunl-
er's expense. The manufacturer
replies he has no guarantee against
competition or against over-pro-
ducing and taking a beating. The
merchant can over-Stock and be
forced to sell ut loss. The con-
sumner still calls the tune on that.
Both argue taxation is increasing
so much that, far from being guar
anteed a sure thing, businessmen
are fast losing their incentive to
keep on in the risks Of business.
Some critics of the guarantee
system for prices, wages and pro-
fits contend, however, it also in
sures spiralling initiation If prices
are supported, the cost of living
goes up. That sends wages up
Manufacturers and merchants pass
that along in higher prices. That
raises the parity level and farm
prices start up again. The critics
contend that under such system
of guarantees, you can't win.
But guarantees aren't confined
to just a few classes. They're
growing all along the line--unem-
ployment insurance, health in
surance, old age insurance.