not by union wage demands.

i This is the “inescapable” con-
clusion drawn by the Canadian
Labour Congress researeh staff in
the latest edition of Labor Re-
search,

To combat this type of inflation.
the CLC urges an end to hold-
the-line policies and tight money,
The Congress’ economists advo-
cate the institution of selective
coutrols over investment.

Excessive Demand

Labor Research, in its issue en-
titled “Inflation”, analysis price
increases since 1945. In every case.
the bulletin points out, periods of
inflation were caused by excessive
demand, rather than excessive
costs,

There is no evidence that in-
flation has been caused by wage
increases, the CLC says. Labour
costs have dropped in some indus-
tries and almost without exception
unit labour costs (wages related
to productivity) rose less sharply
than prices.

; Profits High

The cost, however. of some
goods and services were definitely
out of line during periods of in-
flation, the CLC points out. In
some instances profits were “un-
duly” high. Health care, largely
non-unionized, jumped sharply as
did prices in the food industry.

The most union-influenced com-
ponent of the price index, clothing.
increased only 1.0 per cent be-
tween 1955 and 1958.

Also, the CLC points out. wages
invariably followed price increases.
The pattern of the past fifteen
years had prices going up first.

Inflation Periods
There were three distinct periods
of inflation in the post-war years.
The first, in 1946-48, was caused
primarily by the sudden increase

Inflation in recent years has been caused by an invest-
ment boonr and price raises in non-unionized industries —

| in consumer and capital demand
after the war. Money was plenti-
ful, goods were not. The prices
rose with demand.

The same thing happened after

the Korean War. Heavy expendi-
tures in the Western World on
defence put a great deal of money
into the economy and prices shot
upwards,

Investment Boom
However, the last period, 1955-
57, was slightly different. An in-
vestment boom was the culprit.

“We had a situation in which
investors were willing and able to
invest more capital than there
Were ‘resources and manpower to
invest in.’ the research. bulletin
states.

This type of inflation threatens
today.

Tight money does not help the
situation. What is needed, says the
CLC, is selective control of in-

vestment through variable depre-.

ciation allowances and the licens-
ing df large capital bond issues.

Tight money — the refusal to
increase the money supply — is
unwarranted, the CLC researchers
conclude.

Fears Baseless

“In an economy with idle man-
power the resources, the injection
of additional money will not as a
general rule raise prices. ‘The
economy is under-employed and
more money would tend to rake
up the slack. Fears that such a
policy would be inflationary are
“baseless,” the CLC maintains.

Tight money hits housing, pro-
vincial and municipal governments
jeven the federal government it-
self and small businessman. Yet
these sectors of the economy are
not responsible for investment in-
flation.

YY! PILSENER fad

swol

course!

¥ When it comes to enjoying a

*

tad
+S ERE

a

THE CARLING BREWERIES (8.C.) LTD.

ment 1s not published or cspiayed by the Liquor Controt Beara or by the Government of British Columbia,

The vast internal investment
power of the large corporations is
left untouched by tight money.
Corporations raise their own
funds out of high profits and in-
flation continues to grow.

Boom Shortlived

Because large sections of the
economy are hit by tight money,
the boom is shortlived and reces-
sion and unemployment quickly
follow.

To support its views, the CLC
research department quotes Pro-
fessor Frank Knox of Queens Uni-
versity. “That the pressure for
wage increases has become an
independent and powerful ‘infla-
tionary factor has yet in my view
to be demonstrated,” Prof. Knox
told the Senate committee on in-
flation.

“I would say — that as soon as
we — come up with an economy
with a definite full employment
policy and a high level of govern-
ment spending, I see no reason
why the continued rise in the price
level should occur,’ Prof. Knox
and the research bulletin con-
clude.

Quebec Ups

Loggers
Pay to 90c

The minimum wage scale in
Quebec has been raised 15 per
cent. Under the new wage scale
the minimum hourly rate for
workers in the forest industry
is now 90 cents, instead of 75
cents,

The floor rate for hotel, res-
taurant, hospital and real estate
employees has been boosted to 64
cents an hour in the Montreal
region and to 60 cents around
Quebec City.

The Minimum Wage Commiis-
sion registers all workers in the
province not covered by wage
contracts. It covers about 1,000,000
workers in the forest industry,
hotels, restaurants, and hospitals.
It also covers municipal and
school board employees.

A spokesman for the commis-
sion said in some cases the raises
will be as high as 20 per cent.

The action is in response to de-
mands by the QFL and CCCL in
their briefs to the provincial gov-
ernment.

2nd Issuc
Jan., 1960

UNICEF Program Aids

Heroic Midwives

In the under-developed coun-
tries of the world, the midwife
is a symbol of comfort and re-
assurance. Her resourcefulness
and her cheerful air of indes-
tructibility have made her a
heroic figure wherever she
travels.

And travel she does—by what-
ever means available. In India,
she often makes her rounds by
camel-taxi; in Sudan by donkey;
in Burma by boat: in Mexico by
bus. Other regions see her on
horseback; on bicycle, or alighting
from a jeep.

But most often she gets about
on her own two feet. Despite the
accrued mileages rolled up by the
world’s trained midwives “in a
single year, they are able to reach
only one out of four mothers and
newborn who need them.

Consequently, the public health
officials of more and more coun-
tries each year are including imid-
wifery courses in their training
programmes in order to meet this
need.

At their request, two important
agencies of the United Nations
are helping then. — the World
Health Organization, which pro-
vides teaching personnel, aud the

U.N. Children’s Fund (UNICEF).

Printers of

THE B.C.
LUMBER WORKER

JW. Bow & Co.

LIMITED

PRINTERS AND
LITHOGRAPHERS

An Employee Owned Co.

944 RICHARDS STREET
MUtual 1-6338 - 6339

so convenient... keep track of expenses

with a
‘CURRENT
ACCOUNT

@ you receive a monthly statement with your cancelled cheques.

@ open your current account with us today.

CANADIAN BANK OF COMMERCE

800 Branches in Canada

;

oe

e