Or enan rn? e ¢ LABOR FRONT BY WILLIAM KASHTAN ag used to be a theory in capitalist circles a long time ago that sun spots were the cause-of economic crises and resultant mass unemployment. Recently Finance Minister Fleming thought he would go one better on William S. Jevons, the British economist who developed the sun spot theory. Addressing the nominating con- vention of the Progressive Conservative Association in the federal riding of North York he advanced the view “that a major cause of unemployment in the last five years was the rapid increase in the Canadian labor force”. It is an interesting “theory”, to say the least — one that is calculated to take the government off the hook. After all, what can the government do about population increases unless it were to adopt birth control measures to regulate the increase in population? Or export Canada’s surplus popula- tion to the U.S.A. along with our raw materials? It could even put the unemployed in uniforms. And if the worst came to the worst, the census could be manipulated to show a decline in population and thereby a decline in the number of unemployed .. . * * * The truth of the matter of course, is that Fleminea is turning things upside down. The vroblem isn’t too many people but too few jobs. Actually, the Canadian economy ha‘ stopped expanding since 1957 and has been in a state of virtual stagnancy since. This is the hub of the problem. The latest report on estimated capital investments is not likely to change this to any appreciable extent. Avart from it being only an estimate, and even at that lower than 1957 when the population was less than it is today, the estimate of capital investments for this year is nct in those industries which give the greatest employment. This may explain why Fleming complains about too many people in Canada. It may also explain why unemvloyment continues to rise. despite the upturn in the Canadian economy. - The fact is that, notwithstanding the optimistic statement from government spokesmen, unemployment, chroniz and seasonal, continues upwards. At the end of February, accord- ing to the National Employment Service, unemp!oyment in Toronto grew to 55,549 as against 54,274 at the end of January. The increase is small and on the surface creates the impression that unemployment is not as severe as last winter. But these are incomplete figures and do not give the entire picture. How incomplete can be seen by other figures now available showing the extent of Federal Government expenditures for unemployment assistance. * * * Most Canadian industr under foreign control By official calculation now, foreign investors control ‘and own more than half of Canada’s manufacturing in- -dustry—most of it Business. Latest figures released by the Dominion Bureau of Stat- istics in Ottawa show that foreign* investors owned in 1959 about 51 percent and controlled about 57 percent of Canadian manufacturing. That was in 1959 and it is a simple conclusion that such ownership and control has increased still more by 1962. DBS itself noted a “slow and persistent growth” of foreign capital to “positions of dom- inance” in big sectors of Can- ada’s economy. In the years 1954-59, for- eign ownership in manufac- turing jumped from 47 to 51 percent and foreign control ' zoomed from 51 to 57 per- cent. Most of the increase was in the hands of American Big made up by American inves- tors who are gradually taking over Canadian industry. Here’s the gloomy picture in investment which Liberal and Conservative govern- ments have permitted to develop: Manufacturing — Foreign ownership up to 51 percent in 1959, 41 percent in U.S. hands; foreign control up to 57 percent, 44 percent by Americans. Oil and Natural Gas — Foreign ownership up to 63 percent from 60 in 1954. 57 percent in American hands; foreign control up to 75 per- cent from 69 and Americans controlled 69 percent of it. Mining and Smelting — Foreign capital, predominant- flow last year alone amount ly U.S., increased its owl ship share to 59 percent 1959 from 53 in 1954; conWs jumped to 61 from 51 cent. Almost all of the rub and the auto and parts ine tries now are controlled” outside investors — 98 cent in rubber and 97 per in autos. - The electrical equipmé industry is 81 percent forel controlled while chemicals 77 percent and transp? equipment 73 percent forel controlled. The result of this piling of foreign investment in ada is a sharp climb in ada’s international indeb ness to $18 billion in 19 over 314 times higher than it was 10 years ago. Capital a to more than a billion dollat®_ _ AN APPEAL FROM THE EDITOR Your help needed to speed PT drive il HA Hil i Ten a iM ES These figures, which include only federal government expenditures, are for those men and women who have used up their uemployment insurance benefits or were not eligible to receive them. They also include those who are considered PHONE MU. unemployable. According to an article by Bruce MacDonald, » I in the Toronto Globe and Mail, the average number of Can>- a dians receiving unemployment assistance monthly in 1959-60 6 - 426 MAIN STREET a VANCOUVER 4, B.C. numbered 280,000. It rose to 421,000 in the last fiscal year! MacDonald concludes by saying that “despite the drop in un- employment generally, the authorities fear the level of hard- core unemployment has risen, bringing 7 it a permanent increase in costs.” The main burden of the article was to show how un- eontrolled these expenses were and the need for government action to control them. But the real fact that stands out on the basis of the government’s own figures is that unemploy- tment is twice as high as officially admitted. Look at it any ‘way you wish, were all the unemployed presently receiving unemployment insurancé to find work in the spring there would still be half a million or more Canadians permanently out of work! The difference of course would be that NES or DBS figures would not show this. These are the welfare cases, the relief cases, the forgotten Canadians whom Fleming deplores and would like to push under the: rug. But are they any less unemployed than those receiving unemployment in- surance? ul flere A Hn am {ht 4 lier ey i A\ rout orrernenvenvsutt BN faa Ih gill 5-5288 March 23, 1962. Fellow Press Buildors: Already one-third of our two-month financial campaign to keep the Pf rolling is gone, with only one-sixth of the needed total of $18,000 in. In short, we are "dragging our feet." Sure, times are "tough't with lots of unem- ployment and its consequent hardships, plus what the politicians call "tight money."" But that's all the “more reason for clubs, press builders, and “yours truly" to put more vigor into our efforts. The stakes are high: Peace, and a Canada to win -- for Canadians. * * * The danger in this situation is that among some trad? union officials a tendency is developing to consider this quit> normal. But what is normal about a state of affairs which envisages creeping, growing and chronic unemployment as a nermenent feature of Canadian life? What sort of recovery I is that Mr. Diefenbaker? | The entire trade union movement needs to exert itself much more than. it has on this vital matter of an expanding economy and unemployment and for social security measures that will edeanuately vrotert the unemnvloyed and their fam- ilies. It ought to be leading a nation-wide campaign for new jobs and higher purchasing power by pressing for policies which will expand the home market and’ expand Canada’s trade with me world. | NEHRU SAYS ‘STOP TESTS’ Premier Nehru of India has ‘appealed to the United . | fo win victory the working people of factory and farm cannot rely on the political pablum fed them hourly from the columns of the monopoly press. They need their own paper, their own press, a fact well recognized by organized labor nearly a century ago. We don't need to repeat it here. All of us know it, some from bitter experience, other with disgust at syndi- cated falsehood. Let's pull up our socks and equalize financial returns with the time element. That way we will score a major victory on May lst, with the grand total of $18,000 in the bank instead of in the "bush." the ¥raternally yours, Speaking in Parliament in Cc Delhi he referred. to the V7 (eo States and the Soviet Union not to conduct nuclear tests while the Geneva disarma- ment conference is in session. United States decision to re- sume overground nuclear tests in the event of the Geneva meeting not making any progress. Chad McEwen, Bditor. March 23, 1962—PACIFIC TRIBUNE—Pag