Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-07
For the Common Good?


have advanced the claim that
the high wage policies Of labor
unions have benefited nom
union groups. II anything, the
opposite Of this is true.
It Is plain economic fact
that practically every increase
in wages received by any labor
group means increased costs
that must be passed on In
higher prices to all groups. The
few exceptions have been seen
in industries where heavy new
capital investments have been
possible. providing cost-reduc-
ing machinery as partial off,
set to the effects of steadily
advancing wages. In the ma
Jority of industries no such
offsets have been afforded.
Take the simple matter Of
haircuts. Few would deny that
the biggest factor in the dou-
bling Of prices in recent years
has been the rise in barber
wages. In most all service
fields. wages are the dominant
element in costs. Perhaps
BARRIERS have been entitled to
higher wages. The point is
that every man must now pay
about double what he did a
short time ago for a haircut.
whether his own income has
increased or not. This Is bene-
fetal to all?
Or take a major field, hous-
ing. A local builder said some
time ago that the houses he
was then selling for $25 900
were identical in size and con-
struction to those he sold in
1899 for $500. Factors other
than wages. of course, have
entered into this rise--land
speculation. increased costs OF
utilities, for example. But by
far the biggest element has
been the shakespeare wage
level of the building trades
men, always low In productive
ity under union requirements.
No one expects 1899 values to
again prevail. But it should be
apparent that numerous
groups among us. especially
white-collar, middle-class peo-
pie whose incomes are up not
more If as much as 100 per
cent since 1899, are unable to
pay 400 to 500 per cent more
for housing than they did
then. Due largely to- union
labor greed, housing living
standards for millions Of
Americans are probably the
lowest In their lifetimes.
Two recently issued state
mepts afford one more example
of the benefits" union labor
policies have conferred upon us.
One was an administration
release showing that farm
prices have dropped II per
cent in the past three years
while in the same period food
prices at retail are off only /
per cent. The other statement
was issued from the truckers
marble palace to the effect
that wages OF their members
were up close to 80 cents an
hour in the past two years. 1t
is elementary that transporta-
ton costs are dominant in the
bringing of foods to retail mar
ketS. So here Is obvious evil
dence that increased wages OBJ
tanned by a monopoly union
have operated to prevent the
consuming public from bene-
flting from lower farm prices,
as we should have been able to.
OF course steadily advancing
wages obtained by powerful
labor groups have boosted the
purchasing power and living
standards for those groups.
The question Is where is the
equity in improving the stu
alton for IL or Is million labor
union people at the cost of de-
pressing purchasing power and
living standards for SO to SIS
million other members OF our
economy? Even more impor-
tant. for union members and
everybody else, how long can
high production and full en-
ployment be maintained under
q condition of steadily declin-
ing purchasing power for the
so to IS million? The best
thing that could happen now
would be an immediate stop
order on all wage advances and
q concerted effort to get prices
down within reach Of the de-
pressed majority.
Like the needless spectators
and promoters of 1929. labor
will probably continue to press
its advantage until the whole
economic structure comes tum-
bling down about our ears.
And In the meantime no doubt
the rest of us will continue to
have our intelligence insulted
by labor claims that their
policies are really beneficial
to all. Realist.