Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-03
'Hiqh Cost Suicide

nigh COSL OulClUc, rtUIu-
airy 20, took note Of Presi-
dent Eisenhower's recent
comment on the competitive
position Of this country in
foreign trade. You seem to
agree with the Presidents
view that our prices are too
high and that we are pricing
ourselves out of our accus-
toned foreign markets and
at the same time finding inn
port competition more diff
cult to meet in our home
market.
What we witness today is
but the suEfaeing Of realities
that have been in the max
ing for some years. The re-
suits in the ordinary course
Of events were inevitable; but
the end is not yet. This coun-
try has succeeded In making
its economy very nearly un.
tenable in the international
competitive world. How did
we do this so successfully?
We have systematically for
Is years striven to climb the
very plateau upon which we
now stand or lie economi-
cally. Had the rest of the
world come along with us
the competitive position
would have remained the
same: but it did not do so.
We raised farm prices, we
boosted wages and reduced
hours Of work. we instituted
social security and estab-
lished obligatory collective
bargaining and we went into
q world war which saddled
us with an unprecedented
debt; and we are now in q
cold war. Without regard to
the merits Of these various
steps, it must be clear that
they raised the cost burdens
of our domestic producers.
We went a long way toward
forsaking the free market in
this country. Outwardly we
sought to embrace laissez
faire.
Now, while we we're raising
these costs at home. what
we've we doing outwardly, to-
ward the foreign horizons?
We reduced the average pro-
tective effect Of our tariffs
a full rs or 500. We shipped
overseas billions Of dollars
worth of modern machinery
and equipment and this was
installed in foreign factories.
We collected few debts. We
brought nearly ten thousand
productivity teams to this
country to study our mass
production methods. We
helped with the costs of re-
armament. We instituted
technical aid.
Thus. while our own COM
petitive position was deter
iorating under the burdens of
our policies. that of many
other countries was improv-
ing. Modern machinery was
giving competitive effect to
the low wages prevailing
abroad. The question is not
so much whether our wages
are too high as 1t Is whether
foreign wages are too low
so far as this competitive
problem is concerned.
The fight Of cur capital
abroad is further evidence Of
the greater attractiveness Of
investments overseas. profit
wise This would not be the
case II we had kept our own
market more attractive to
our own capital. On the con-
trary we have progressively
exposed 1t to more and more
ruthless import competition
all in the name Of what
President Franklin Roose-
welt called the "will-o'-the-
wisp" of foreign markets. To-
day even our most efficient
industries. the highly auto
mated mass-production in
dustries, are groaning under
the strain. What do you be-
lieve is happening to numer-
Gus smaller industries? Is 1t
not about time that we re-
examined a foreign trade
policy that has come to the
end Of the road?
0. X. Strackbein.
Chairman. Nation Wide
Committee of Industry, Agri-
culture and Labor on Import
T7.,y1,..k n41;a,,