Evening star., 1954-01-01
To Counter Joblessness

Southern Democrats have reacted rather
extravagantly against the administrators plan
to channel defense contracts to cities and States
suffering from unemployment. Senator May
bank OF South Carolina has attacked the idea
as outrageous" and Senator George of Georgia
has described it as something likely to throw
the economy Of the Nation out of kilter." On
inspection, however, such criticism smacks
largely of political hyperbole quite out of keep
ing with the facts of the situation.
Actually, the plan in question-as set forth
by the ONCE of Defense Mobilization with the
strong backing OF President Eisenhower-is not
really new. On the contrary, it is simply an
improved version Of the policy followed by the
Truman administration, more or less sporadi-
cally, in an effort to help areas troubled with a
tabor surplus" which is an official euphemism
meaning areas where there are unusual num-
bers OF people out Of work. These unempioy-
ment points are located in various parts Of the
country. but the region that has been hit the
hardest in recent months is New England, whose
faltering textile industry has been losing out
In competition with the South.
It Is because OF this economic rivalry between
the two great regions especially in the field Of
textiles-that men like Mr.. Maybank rear up
against any move that might tend to reinvigo-
rate New England's manufacturing position at
the South'S expense. But the plan indorsed by
the President can hardly be viewed as that kind
OF threat After all, its main provisions do not
go beyond such arrangements as the following:
I'D To offer special tax incentives to companies
establishing new defense plants, or expanding
old ones, in the areas of labor surplus; (2) to
encourage prime contractors in prosperous Sec
tors to award subcontracts to firms In COM
munitieS affected by substantial unemployment;
and 90 to earmark between 20 and 80 per cent
OF the Governments military procurement
needs as orders to be placed with manufactur-
ers in those communities-provide that the
manufacturers match the prices of the lowest
bidders elsewhere.
From the standpoint Of fair competition,
this last provision represents a considerable
operating difference between the present
administrators plan and the one followed
under Mr.. Truman. Under the latter, defense
contracts could be awarded to Arm In q "labor-
surplus" area even II that firms bid was much
higher than the low bid Of another firm In
another area Under the Eisenhower program,
however companies in places hit by unemploy-
ment will not get the Governments business
unless they bid for 1t at prices as low as. those
Of the lowest bidders elsewhere in the country
an arrangement that is far from being "outra-
geous" or likely to upset our national economy.
All things considered, therefore, the South
ern criticism Of the administrations action
seems less than justified The fact is that in
some Of our cities unemployment has become
serious matter, and it needs to be countered
with just such measures as the plan approved by
the President. It Is not plan to throw people
out Of work in one area by creating jobs in
another. 1t is a plan to strengthen weak spots
in our economy without hurting anybody any
where else. It should be given fair trial. To
condemn it out Of hand, even before it is in
force makes little sense.