Milford chronicle., 1955-07-22
FEDERAL MINIMUM WAGE LAWS

FEDERAL MINIMUM WAGE LAWS
The federal minimum wage is a hardy
legislative perennial. 1t has made its ap-
pearance in many past Congresses, 1t has
had its moments in the limelight in the cur
rent one and there is no doubt that it will
be on hand again in Congresses of the fu
ture And it is not nearly so simple and
clear-cut an issue as many people may be-
lieve Some of its complexities and ramifi-
cations are we'll described in an informa
ton bulletin prepared by the Chamber of
Commerce of the United States.
The minimum wage IS SIMPLY floor De
meath which wages cannot legally fall. The
proponents of ever-higher minimums argue
that in periods of great business activity,
such as those we have enjoyed with few
minor ups and downs ever since World War
III ended, that floor should be lifted. Actual
ly, wages have been rising steadily, and In
brackets well above any existing or seriously
proposed legal minimum. According to the
bulletin, the average factory wage rose from
$102 an hour in 1945 to S1.85 as OF this
June In addition, over the last few years
prices have been relatively stable, so the
wage increases that have taken place during
them have not been offset by higher living
costs. Going back farther, the bulletin says
that in 1930-31 wholesale prices were at
about the same level as in 1840-yet wage
This amazing improvement, obviously, was
the result of forces other than law, such as
increased worker output, competition Tor
labor among employers, and so on. Yet ag1-
. tation for more government action continues.
A comparatively small minority of work
ers are helped by higher minimum wages, in
asmuch as most earn more already. This may
cause some to wonder why there should be
substantial opposition to increases. The rea-
son is that an increase in the minimum does
not end the story Workers who have earn
ed the right to higher scales naturally want
their differentials maintained. So new
rounds of upward pay adjustments newt
ably follow, all along the line. And when
pay increases are caused by artificial rather
than natural forces, prices usually go up
with them and inflationary spirals set in.
Often these wholly or largely offset the pay
increases.
The bulletin also explains why, ever
since passage of the first minimum wage law
in 1888, Congress has specifically exempted
retailing and certain service businesses. The
main reason is that such businesses are
fundamentally local undertakings. The ex-
istence of big national chain store systems
does not alter that fact. Each of the chains
outlets must compete locally. 1t will sue
ceed or fail as it meets local needs and de-
sires, which vary greatly from one part of
the country to another.
1t is argued that higher minimums could
be met by reducing profits, instead OF rails
ing prices or hiring fewer employees. The
catch here is that, even in the best of times,
25 to 80 per cent of all employers make no
profits. Moreover, industries which pay rel
atively low wages are often industries which
are in low profit brackets-and thus are the
weakest financially.
Finally, the bulletin makes the big point
in these words Low wages are not a
cause of economic Distress but symptom
The basic cause is low productivity which
cannot be raised by minimum wage laws
The only sound way to raise wages is to
increase real prosperity by increasing the
rate at which we convert work and raw
materials into useful goods and services.
This country has dramatically demonstrated
the truth OF that in actual practice. Rea
wages (which means wages adjusted to in
creases in the cost of living) are three times
as high now as in 1900. That accomplish
ment is primarily the result of increased pro-
ductivity.
PREVENT FIRES
Camping trips, picnic, hikes along forest
trails and automobile rides through scenic
wooded areas are fine. Yet those who enjoy
such pleasures must remember that momen-
tary carelessness can have terrible results.
Each year valuable timber is destroyed
tnat can never De replaced. Wlld creatures
of the forest are killed or left homeless by
fires. Areas that were once scenic attrac.
tions are left charred and barren reminders
of someone's careleSsnesS with fire.
Precautions against forest fires take
only few extra moments but they can pre-
vent expense and tragedy. Make certain that
campfires are extinguished- just think
they are out but make sure that they are
Be particularly careful about putting out Gig
arettes. Check to make certain that your
match is out before you toss it away Who
would want the knowledge that he migh'
have been responsible for a forest fire OF
his conscience?