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Show 4 THE SEARCHLIGHT ~The Background of Wage Stabilization Editor’s of Labor Nation Note: The Statistics with curately an the price is Index supposed instrument increases—or end of January to the other members of the President's Committee. of the Bureau to that provide the measures ac- decreases—in the There is no need to repeat any of the facts or cost The to indicate at this point that the report concludes United validity We of have hibits Steelworkers the Index made and: as a careful data thoroughly The have an competent conclusion accurate by the research device by which living may the not fluctuations be ascertained. of the from January, ex- Steelworkers’ | that a fair that the cost of living has risen by at least 43.57 the yardstick. staff. is irresistible unreliable—is attacked examination compiled is wholly the and in Index impartial the Manifestly, cost of if a brick house has a foundation under only a part of the structure, the unsupported part will cave in some day. The same is true of any Index that lacks an adequate foundation. “Failure wartime Formula. tant The Searchlight quotes from the recital of the Steelworkers wherein they question the soundness of the Index. The Steelworkers are rendering a rently service disclosing to the all American inaccuracies wage earners by of the Index. Their presentation of their case to the National War Labor Board for increased wages, a guaranteed changes, of our annual is one wage, and 21 other of the ablest economic contract discussions time. In November, 1943, the President created a Cost of Living Committee, comprised of William H. Davis, Chairman of the National War Labor Board, two industry, and two labor representa- tives. The labor make an intensive representatives investigation proceeded 1941, to December, to of the facts re lating to the rise in the cost of living between January, 1941, and December, 1943. A report of their findings and analysis was submitted the 1943. The Index of the Bureau of Labor Statistics shows a rise in the cost of living of only 23.47% during the same period. The report of the labor members of the Committee makes a complete analysis of the reasons why that cost of living Index is not an adequate instrument for determining the realistic rise that has occurred in the cost of living. To quote from the report regarding the deficiencies of the BLS Index: It follows that if wages are frozen in a period of rising living costs, a cruel discrimination is enforced against American wage earners. It is that discrimination the United Steelworkers seek to remedy by their attack on the Little Steel great It is sufficient findings contained in said report. of living. result of the increase of several Index to in the cost reflect of all living the is the factors: “1. The government’s price control efforts and subsidy programs have been concentrated upon food items which are imporin workers’ priced for budgets and inclusion which in the are Index. cur- In consequence, according to special surveys in a number of cities, the prices of other foods, also important components of workers’ budgets, have risen twice as fast as those priced by BLS. “Thus, while the Food Index has been held down, the actual cost of food as a whole has risen sharply. A similar result has occurred in connection with the rent component of the Index. Notwithstanding this finding, the Committee wishes. to commend the OPA for its efforts to control prices. WE NEED MORE PRICE CONTROL, NOT LESS. “2. The construction of the Index is such that it does not take adequately into account the disappearance of cheaper consumption items and the shift toward higher priced lines. This deficiency is most strik- ing in the case of clothing (Continued on follawing where page) ‘trading |