Milford chronicle., 1954-11-12
THE MINIMUM WAGE PROBLEM

Wnen the next Congress meets, 2 BRO
pOsal TO again increase the Federal minimum
wage probably will be introduced. To many
this will seem a wise and humanitarian goal
yet there are vitality important considera-
lions involved that must not be overlooked
OUT Of desire to help the lOWest-paiG groups
OF Wage-earners
For one thing, too high minimum wage
actually undermines the interests of those il
IS designed to aid. Many examples could be
clteu, OF which retailing, particularly in the
smaller communities, is one Totally un-
Skilled people are hired to do odd jobs. Their
value to the store operator is, of course.
small. Yet in this way they get the expert
ence that will qualify them for more respon-
slDle and better-paid positions. If the wage
IS mixed too high, the employer has no choice
but to pare unemployment to the limit Thus.
Lnere are fewer jobs for the unskilled, and
leWef opportunities to gain the experience
that leads to advancement.
For another thing, boosting the minimum
wage can result in wage increases all along
the line-and thus start the forces of infls7
tlOn going once more. The reason why that
IS 50 IS simple. When the minimum wage
goes up, the gap between it and the wage
received by more skilled workers narrOws.
The latter group, humanity enough, feels that
y IS entitled to maintain the gap, so It de-
manos jump. And then the inhationarv
spiral IS on its way.
For third thing, a Federal minimum
wage does not, and cannot take into account
tne substantial differences in living costs and
Othef conditions that exist between different
sections of the country. and between the
great cities and the little toWns. ~
The minimum wage like all other sucb
legislation, should be studied in the light of
What Its effect will be on the country as
whole, and everyone who lives in il.
WHAT FIXES GASOLINE PRICES? /
How. are the prices of oil products estab-
lsnedY Who or what is responsible for them
Is the job done by human dictate or by some
other force?
The head of mid-western oil COMPANY
has answered those questions, using the oil
lndustry's most widely-used product. gaso
line, as the example.
he said, 1T does not lie within the pow
er Of this or any other oil company to deter
mine gasoline prices. Prices are made bv
markets, and all oil companies competing for
q given market are under the same economic
pfessufes. These economic pressures are
eeaselessly at work to cause fluctuations in
the price OF gasoline at the pump"
II q company tries to sell at a price which
- ~ ilen' ne continued, business will be /
lost to It's competitors. If too low to cover
costs OF finding, transporting and refining
ele on tne company cannot stay in business
except at ruinOUs loss
Then he observed that his own company /
mad recently made a substantial cut in its /
gasoline prices at service stations cut
which may cost it several million dollars. II
took that step because it had to i'm order to
meet tne competltion-and because competi-
i've FORCES had created q down cycle in the
price swing.
. Price changes, whether up or down. re-
meet the natural and irresistible forces of
SUPP pppiy-and-demand in a free competitive