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Editorial
April 11, 1955
The Lincoln Times
Lincolnton, Lincoln County, North Carolina
What is this article about?
Editorial warns that raising the minimum wage and applying the Fair Labor Standards Act to exempt retailing would heavily increase costs, lead to inflation via higher prices, and reduce employment opportunities without boosting worker productivity.
Clipping
OCR Quality
98%
Excellent
Full Text
THE FLY IN THE OINTMENT
A number of authoritative surveys have been made as to what will happen if, as proposed, the minimum wage is again increased and, along with other provisions of the Fair Labor Standards Act, is applied to retailing, which is now exempt. All show that the increase in retail operating costs would be heavy. In some cases they might actually be more than individual stores and chain systems now earn as profit.
The trouble here is that the proposed changes represent an attempt to artificially give groups of marginal workers large benefits without any compensating increase in their productivity, or their value to employer and consumer. When that happens, one of two things, and probably both, must occur. Prices must rise which means a new wave of inflation. And employers must pare employment to the limit, thus reducing the opportunity of people to get jobs and learn the skills which bring greater responsibility and higher pay.
A number of authoritative surveys have been made as to what will happen if, as proposed, the minimum wage is again increased and, along with other provisions of the Fair Labor Standards Act, is applied to retailing, which is now exempt. All show that the increase in retail operating costs would be heavy. In some cases they might actually be more than individual stores and chain systems now earn as profit.
The trouble here is that the proposed changes represent an attempt to artificially give groups of marginal workers large benefits without any compensating increase in their productivity, or their value to employer and consumer. When that happens, one of two things, and probably both, must occur. Prices must rise which means a new wave of inflation. And employers must pare employment to the limit, thus reducing the opportunity of people to get jobs and learn the skills which bring greater responsibility and higher pay.
What sub-type of article is it?
Labor
Economic Policy
What keywords are associated?
Minimum Wage
Fair Labor Standards Act
Retailing Exemption
Inflation
Employment Reduction
What entities or persons were involved?
Fair Labor Standards Act
Retailing
Marginal Workers
Employers
Consumers
Editorial Details
Primary Topic
Opposition To Minimum Wage Increase And Application To Retailing
Stance / Tone
Critical Of Proposed Changes Leading To Inflation And Reduced Employment
Key Figures
Fair Labor Standards Act
Retailing
Marginal Workers
Employers
Consumers
Key Arguments
Increase In Retail Operating Costs Would Be Heavy, Potentially Exceeding Current Profits
Proposed Changes Artificially Benefit Marginal Workers Without Increasing Productivity
Prices Must Rise, Causing A New Wave Of Inflation
Employers Must Reduce Employment, Limiting Job Opportunities And Skill Development