Milford chronicle., 1953-01-16


their pockets. If we are to have economy,
there can be no exceptions.
&1O&SS
SYMBOL OF VAST CHANGE
Every phase of human life has been revo-
lutionized in the last century. And nowhere
have there been more spectacular changes
than in the oldest industry Of all-agricul-
ture.
One hundred years ago four out of five
people worked at the job of producing raw
materials for food, clothing and shelter. To-
day these basic needs are supplied by Just
one out of five. And even that doesn't tell
the whole stOry-fOr we have far better and
more varied foods and other products of ag-
ricultural origin than in past times.
This is very largely the result of the ap-
plication of the machine to farm Jobs that
were once accomplished slowly and labor
iOusly by hand. 1t is not an eXaggeratidn to
say that, on the modern farm, the machine
has displaced hand labor. 1t does the work
much more economically and efficiently than
is possible with human muscle. And its use
fulness is not limited to the production of
crops. The machine makes it possible for
the farmer to conserve and improve his soil
and to fight successfully against such old
natural raVages as floods and erosion. The
machine gives moore food from fewer acres
today, and at the same time assures that the
soil will be fertile and productive tomorrow
The plow, the seeder, the baler the cult
VatOr, the tractor, the combine and all the
other machines symbolic the amazing ad-
vances agriculture has made in the span of
q long lifetime. And they syrlbolize, as well,
EARNINGS present-day status as business
and profession.
THE TREND OF "REAL PRICES"
AS everybody knows the prices of goods
have increased heavily in recent years. What
most of us apparently don't know is that
wages have increased much more percentage
wise
From 1889 through September, 1852, the
consumers price index, which is periodically
released by the Bureau of Labor Statistics,
increased 90 per cent. In the same period,
average hourly earnings in manufacturing
increased more than 1877 per cent.
Going back farther, the difference be-
comes spectacular. From 1914 to 1852 the
price index rose 165 per cent, while average
hourly earnings in manufacturing jumped a
humping $50 per cent.
Various influences have contributed to
holding down prices. One is competitive re-
failing Mass distribution. which was piO-
neered by the chains long ago, has been as
important an influence in American life as
mass roduction-indeed neither could work
efilclently without the other. The basic idea
behind both Is to do business at a small unit
prott-and to earn a fair total profit through
big volume. Competition forces are retailers
to continually seek ways to reduce their over
head and pass the savings on to the consumer
The result is that "real prices" which are
prices measured in the light of earnings
have tended to go down, rather than up
Every segment of American enterprise can
take pride in this achievement at a time
when imitation and OVer-grOWing taxes have
cut deeply into incomes.
A TAX ON PROGRESS
1t was recently observed that the So
called "excess profits" tax isn't a tax on
excess profits at all. 1t is, instead, a tax on
growth, progress, initiative - and like all
taxes, open and hidden it is paid in one way
or another by the people who buy goods and
services.
The observation was also made that ex-
cess profits only arise when tOO-high prices
are charged. In competitive economy that
can very rarely happen-the businessman
who tries to work on the all-the-trafic-will-
bear idea soon sees his customers going else
where and unless he mends his ways the
bankruptcy court is the next step.
The excess profits tax, in other words. is
lmsnomer It is tax which is applied
When business expands, hires more workers,
and supplies more services on turns out more
goods, When those things happen, its earn
lngs grow too, and the tax can take as much
as 80 per cent of all it earns. You don't have
to be an economist to realize that under such
conditions business and business people
aren't inspired to do their best, to take risks.
and to make greater contributions to the
strength and living standards of the nation.
During the next session of Congress, it
will be proposed that the excess profits tax
be eliminated-Or that, at the least the exist
ing rates be substantially reduced. If Con-
gress wishes to benefit the country and every
one who lives and works in it, that will be
dome