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Red Wing, Goodhue County, Minnesota
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In a January 21, 1930, letter from Arkansas, Wis., Peter Gilles argues that machinery-induced job losses in key industries have caused unemployment and slumps like falling butter prices. He urges farmers to organize for cost-plus pricing to boost consumption and reemploy workers.
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Arkansas, Wis., Jan. 21, 1930
Dear Editor:
Improved machinery has in four major industries-farming, railroading, mining and manufacturing-eliminated about 2,300,000 workers in the last eight years, says Dr. Harry Laidler, vice president National Bureau of Economic Research.
Seven men now do the work which formerly required sixty in casting pig iron. A brick-making machine in Chicago does the work that formerly required 714 men, etc.
Perhaps these are some of the reasons for the slump in butter prices. Men out of work can ill afford to buy butter for the kiddies.
The increased production of butter for the month of November, 1929 over that of November, 1928 amounted to only .214 (two hundred and fourteen-thousandths) of - ounce per capita of the population of U.S., or in other words, if each consumer had eaten one-fifth of an ounce more butter in November there would not have been any surplus that month
What is the solution? In my humble opinion, I am inclined to believe that if the farmers received cost of production plus a reasonable profit, we could easily absorb the increased production of the factory workers.
If we had the means we all could use more and better clothing, a better car, better school and church buildings, electricity and electric equipment to lighten the burden of our wives and mothers and thus give employment to every willing worker in the land
Organized labor boasts of more than 400 new laws enacted in 1929 to protect the safety, health and efficiency of labor. Santa Claus did not bring these laws; they are the result of a long, hard fight, and a lot of sticktoitiveness.
Let us get together. Organize. Get into our union. Do as organized labor has done, as all intelligent men and women are doing. Demand cost of production and thereby not only help ourselves but also the millions of unemployed in the industrial centers.
PETER GILLES.
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Letter to Editor Details
Author
Peter Gilles
Recipient
Dear Editor
Main Argument
improved machinery has eliminated millions of jobs, contributing to economic slumps like in butter prices; farmers should receive cost of production plus reasonable profit to increase consumption, absorb industrial output, and provide employment to the unemployed.
Notable Details