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Show looking I Ahead 1 Dr! George S. Benson I President NATIONAL EDUCATION PROGRAM Searcy, Arkansas TOOLS FOR WEALTH PRODUCTION A railroad company once ran an advertisement to dramatize dra-matize how much money was required to make a job on the railroad for each employee. The ad said: "Wanted: one locomotive engineer. Bring your own engine when applying." apply-ing." At the time of the advertisement, ad-vertisement, a locomotive engine en-gine cost $200,000 to $500,000. The advertisement, as intended, intend-ed, made a lot of people stop and think about how jobs are made. It takes a lot of invested capital, a lot of operating capital, a lot of management' know-how to make new jobs. American industry's high investment in-vestment in production tools is one of the secrets of our incomparable in-comparable production and comparatively high living standards. stan-dards. It is the fourth element that I shall discuss in this series of columns on The Wealth Machine. The Better Wheelbarrow In a Government-owned system, sys-tem, the operators do not have the worry of a competitor's high investment in machine tools. There are no competitors, competi-tors, thus no reason to improve im-prove production in quality and thing drastically new, but merely the natural result of a constant improvement in manufacturing tools and techniques, tech-niques, demanded by competition competi-tion in the market place. A single machine today can do the work that 20 years ago required re-quired 10 men to do. And a single automated factory can produce products at a rate and at a production cost never dreamed of 10 or 15 years ago. It is true that workers are being replaced, but it is also true that the production machine in America is constantly con-stantly spreading out, developing develop-ing new products, creating speed. Competitive products can be kept out. And the consumer con-sumer is forced to buy the product which the political government chooses to have produced. Some visitors to Russia a few years ago were astonished to find that the ' clerks in a Moscow store used the ancient abacus to total up the cost of a list of items. The Socialist government didn't consider adding machines or fast service necessary. The management of the store was a part of the Government, a member, you can be sure, of the monolithic Communist . Party. In a private enterprise system, sys-tem, management has got to be concerned with ever better machine tools, ever better service ser-vice to the customers. Suppose two companies are making wheelbarrows, and the competition is a bit keen. One of them says, "I'm going to put in better tools to make our wheelbarrow lower in cost and at the same time make it better." He puts in the better machine tools. What's his competitor com-petitor going to do? He's going to get better tools, also, or quit. He can make his choice. "Automation" Means Progress We are witnessing now a big leap ahead in mass production with machine tools. We have reached the era of "automation." "automa-tion." Actually it is not some- new jobs about two million new jobs each year. And because be-cause of the improving machine tools, creeled to meet the competition, workers can buy more with their earnings than ever before. King of the Workers The average investment of capital to create one job in American industry has constantly con-stantly gone up as greater and greater improvement has been made in machine tools. The average in 1969 is $23,000 per job. That means that an investment in-vestment of $23,000 in plant, inventory and tools is necessary neces-sary to create a single average American job. It is much higher in some industries. The last time I was in Detroit, De-troit, I spoke to the production manager at one of the Ford Motor Company plants. "What does it now cost to buy the stamping machine that stamps out the front fenders for a Ford car?"He said: "$500,000." I asked: "What does the man do who operates it?" "Pushes buttons," he said. "How fast do you turn out fenders?" "One every eight seconds," he replied. "How long did it take the workman to make the first Ford fenders years ago." "Probably all day to make a pair," he said. "With what tools?" "An anvil, a hammer, a forge, and a pair of tongs tool cost, about $30." The original fender-maker made less wages for a full day's work than the man at the $500,000 machine makes today to-day in one hour! That's the amazing story of the tool investment in-vestment in American industry. in-dustry. It is duplicated in industries in-dustries all across America. High tool investment helps to make the American, King of the Workers of the World! |