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.

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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).

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