The Butler County Press

COMPLETE ECONOMIC COLLAPSE NEAR, SEC'Y MEANY WARNS
Effective Control of Living Costs Held Only Way to Prevent Ruin; Runaway Inflation Could Cost U. S. War, AFL Official Says
Meany told his nationwide audience

Because of the "utter failure" of the government to effectively control the cost of living, the nation stands on the brink of a complete collapse of the entire economic stabilization program, Secretary-Treasurer George Meany of the American Federation of Labor warned in a bluntly worded talk to the American people over the Blue network.

Demanding that the United States adopt without delay the effective price control system in operation in Great Britain, Secretary Meany bitterly denounced the failure of price control in this country to date.

He declared that the American people have been given little more than a diet of promises of action "manana always manana" (tomorrow), but he made it very clear that labor does not associate itself with the nefarious drive of big business and pro-inflation farm organizations aimed at bringing about the abolition of OPA and the elimination of food price control.

Workers Driven To Strike, He Says

"The crying need of today," said the hard-hitting labor leader, spearhead of labor's campaign to drive the prices of food back to the levels of May, 1942, "is to make price control better, not to make it worse."

Referring to recent protest strikes, Meany said the workers who participated in the walkouts felt themselves driven "in sheer desperation" to action injurious to the nation's war effort because of the "stupid, unrealistic governmental policy which freezes their wages by arbitrary edicts on the one hand and which, on the other hand, permits the prices of food to rise to unconscionable heights."

He characterized the Little Steel formula as a "theoretical monstrosity" and declared "it is high time that our policy, so-called, of economic stabilization was readjusted on a common-sense basis."

Declares Britain Has Shown Way

Meany, urging the adoption of the effective British system of price control said:

"We must either raise wages to enable the workers to buy sufficient food-and, of course, face the consequences of inflation by so doing-or we must roll back the prices of food to the levels of May, 1942... And when the prices have been rolled back to that point they must be held there.

"Now how is this to be accomplished? Many of our governmental leaders are horrified at this suggestion. It can't be done, they say. They are sadly mistaken.

"It has been done, and done very well, in Great Britain. Over there, using subsidies and a universal and well-enforced price control, they have succeeded in nailing the cost of living down to a truly stable level.

Says British Control Works Effectively

"The record provides the proof. For 2 years the cost of living in Britain has risen less than one-half of one per cent. Compare that if you will with our own country, where the cost of living has admittedly risen more than twice that much in a single month.

"Price control in Great Britain is a functioning, efficient reality, not a morale-shattering mockery as it has been in our country. The British system works effectively. Ours does not.

"Of course, some one will raise the objection that it will cost money. That is true. But the annual cost of operating under the British system of food price control would be equivalent to no more than our government's expenditure in 5 or 6 days to carry on the war.

Hold Real Action Cannot Be Delayed

"Is it not far better to spend two billion dollars to maintain economic stability than to invite a runaway inflation that would slash the value of your dollar to 15 cents and cause chaos at home when we should be getting on with the job of winning the war?

"A runaway inflation would cost the American people 50 times two billion dollars. It could cost us the war."

"Time is short," he said. "We cannot wait any longer. We must have real action now. We do not want more promises."

Blasts Propaganda Against Pay Raises

The AFL leader, who is also a labor member of the National War Labor Board, denounced the high-powered propaganda campaign which has tried to sell the false idea that wages have increased so greatly that sky-high prices for essential foodstuffs do not actually represent any hardship.

"The simple fact," Meany asserted, "is that, out of the millions of workers employed in a total of 104 industries, only those in 4 industries receive wages large enough to enable them to enjoy even minimum health and efficiency living.

"Despite careless talk of high wages, the truth is that the average weekly pay envelope for all manufacturing, including the war industries, holds only $41. This is the official figure released by the U. S. Government.

"While the average weekly pay envelope contains only $41, the minimum weekly wage necessary to support a family of 4 in Baltimore is $48, in Seattle $51, in Chicago $52, in New York $54... The record shows that in only 4 industries do the workers receive enough to purchase this minimum standard of living, while in 100 industries they do not."