Show Blasting Stabilization Efforts Any sharp Increase in the federal minimum min wage requirement now set at would mean Irresistible pressure for inflationary wage boosts all aU along the line and virtually end the Phase 11 attempt to control the rise of wages prices and the course of inflation Despite Des pith pite this fact an official policy polley statement statement statement state state- ment of the CIO Executive Council Council Council Coun Coun- cil recommends immediate updating of th the Fair Labor Standards Act The statement presses for a drastic increase in the minimum wage to to at least 2 50 an an n hour Already before Congress is a proposal to lift the minimum wage to 2 00 an hour and to remove most of the exemptions The latter would hit students and smaller retailers It has has' been said with good reason that it is impossible to have price stabilization stabilization sta sta- stabilization and a minimum wage In other words a major increase in the minimum wage would create irresistible irresistible irresistible tible pressure on prices Employers would be compelled to pass the cost increase in the lowest wage rate rat shoves the whole wage structure upward because because be be- cause differentials between jobs have tobe to tp be maintained In addition to wrecking increase in the minimum wage would aggravate the unemployment problem In the words of Business Week Whenever Whenever Whenever When ever the minimum has been raised in the past job have been squeezed squeezed squeezed tighter and and the worst of the squeeze always has come on teen age newcomers to the labor market and nonwhites Congress will do both itself and the nation service it if decides early in the session to leave minimum where it is is Record government spending and d de deficits deficits de- de have already undermined attempts to control inflation An inflationary minimum mini mini- mum wage increase would very likely make present stabilization efforts totally inoperative The next step would inevitably inevitably inevitably in in- be drastic economic controls and rationing or rampant inflation |