Effect of Rising Wages on the Economy of the United States

WAGES in the United States, in spite of the wage freeze, have increased materially. Overtime payments have become standard practice in almost all industries. Now efforts are being made to place wages on an annual basis, and if this is adopted, it will result in an increase in the cost of production. Organized labor today is more powerful than ever before; union membership is large and steadily increasing, and in many instances membership in the union is a prerequisite to employment. The treasuries of many unions are strong as a result of the large membership and full employment. The unions, therefore, today are in a much better position than ever before to carry on long strikes. Politically, too, the unions are more powerful today than they ever were. On the basis of their strength, one may expect that some of the demands that the labor unions will make in the not distant future will be granted. It is, therefore, quite evident that before long, particularly when the curtailment in war production reaches about 40 per cent, this country will be confronted with a serious labor problem.