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Show Moratorium on Wage Demands Charles E. Wilson, president of the General Electric company, com-pany, has proposed an industry-wide moratorium of at least a year on wage increases in order to combat inflation. "It is about time," he said, "for the consumer to get a break. So far, because of chaotic conditions, he hasn't He hasn't even been given the advantage of the great technological improvements improve-ments in production developed during the war." Mr. Wilson cited his own company's situation as a case In point General Electric could not possibly meet further wage demands without corresponding increases in prices, he said. Me estimated prices would have to go up three-quarters of one per cent for every one per cent increase in wages. That figures in both G. E. labor cost increases and the increases in the cost of . materials they purchase because of wage Increases paid workers producing those materials. This is a point which is of real significance. There are two ways by which workers can improve their economic situation. One is by a wsge increase. The other is by a price decrease. If the former causes a Comparable increase in prices, then labor finally is no better off than it was before. But if wages hold at the same levels, a lowering of prices means a considerable improvement im-provement in labor's status as far as real wages are concerned. It is the latter course which in the long run is of greater benefit to labor as well as to the country as a whole. " Several Republican senators made the same point the other day. Opposing the CIO program for a 25 per cent wage boost, they said that labor and the country as a whole would benefit more from lower prices and increased production than from a second round of wage hikes. The senators, Taft, Ball and Smith, said they were flatly opposed to the CIO claim that wages can be increased again without another rise in prices. They declared the CIO position posi-tion is baaed on "completely misleading" theories expounded in the recent Nathan report They argued that if industry profits are too big the benefit should be passed on to the consumers in lower prices. That would benefit everybody and not just organized labor. The position makes sense. The country's greatest need right now is all out production, at top speed and with maximum efficiency. If we get that all out production there is every reason to believe that industry as a whole could continue to pay present wage rates and still reduce prices. That would put us on the right track to prosperity for everyone. Labor then would gain, through increased purchasing power, along with everybody else. The other alternative would bring higher prices along with the higher wages and lead inevitably to economic, collapse and widespread unemployment, loss and suffering. If labor is sensible it will heed Mr. Wilson's appeal for a moratorium on wage increase demands. It will instead put its shoulder to the production wheel and help to bring an era of real, not fake, prosperity. |
