Flint Spokesman [Volume: 5, Issue: 1]

=
z
3: Distorted Savings Statistics
- Confuse Collective Bargaining = ~

Page Four |

~

we

3 Saturday, April 12, 1952

overnment statistical reports
of a mammoth ~saving spree~ on
the part of American workers~
families have received such distorted interpretation, the CIO
Economic Outlook said today,
that they are having an adverse
effect on the collective bargain~ing process in steel and other industries,

The Outlook, published by the
CIO Department of Research and
Education, devoted its current
issue to an examination of De
~~ partment of Commerce statistics

ay

reporting that personal savings

have increased from. $10.5 billion

in 1950 to $17 billion in 1951.
Although the public receives

~ the impression that the Commerce

liquid savings stashed away by
Department. figures ~represent
the families of the nation, the
spectacular totals really represent no such thing.~ the CIO economic publication, declared.
Nearly half. the total reptesented by the Commerce Department
as personal.'Saviigs are not that
in any but the most technical
sense, the Outlook~said, for the
figures include payments on installment purchases, investments
inj: property and unincorporated
enterprises, and increases in private instrance and. pensi~n reserves, The Outlook added:

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~Already the steel companies
have seized on the personsi savings figures released by govern
ite.~ FLINT SPOKESMAN |

ment agencies to ~prove~
workers are earfiing more than
they are able to spend, and,

therefore, savings are piling up.|

~There is no shortage of consumer purchasing power,~ they cried
at the recent Wage Stabilization
Board hearings, so certainly,
workers do not need a raise. In
fact, workers~ savings are mounting so high, the steel companies
insist, that another ~inflammable~
buying rush may be precipitated
at any time.

~Since this distorted viewpoint
will be repeated by industry
spokesmen at collective ~bargaining conferences across the nation
and wherever higher levels of unemployment: compensation, social
security benefits, and minimum

wages are discussed, the.exagger- |.

ated statistics on savings are vitally important ~ and dangerous,~
In fact, the Outlook saNi, even
the $4 billion figure used by the
Department of Commerce for increased liquid personal savings is
open to question as an adequate
guide to the fortunes of indévidual families. For one thing, it
includes the checking account deposits of 3% million unincorporated~ businesses, which in an inflationary. period, would tend to be

increased as the volume of money
2~ 3 ~

in circulation grows.. ahi
Another factor cited to'indieate
the rise in savings is the factor of
accelerated purchases of common
stock. ~
~However, the low and middleincome families of America were

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~| straints had been exercised by,

that

| famtifes might have enjoyed the

| curity that ownership, of real|#
liquid savings provides. These ac-|#

|,preducing more consumer goods

t

hardly ~substantial investors
this growing cathnds of sec
ownership,~ the Outlook

~Only 7 percent of the co
spending. units milies) 0
stock ~in- corporations,~ according

~The one form of liquid asset
saving which declined in 1051 is
'the one in which wage and salary
earners have engaged extensively
~in the past,/7the Outlook said.
U. ~. Savings. E Bonds, which
reached a sales peak of over $12
billion in 1944, lined to $3.2
billion: in 195: lowest point
since the begining of World War
~ Fe ees Pte eae

~A good hard look at the 1951
personal savings statistics of the
Department of Commerce ciearly
indicates~ that savings were not
overflowing the pockets, bank ac~counts, or security portfolivs of
the mass of American People:~

Asking ~who is doing the real
saving in the U. S.?~, the Outlook finds that substantiai sav~ings are becoming a privilege of
ithe very wealthy. Ten percent of
American families, the Outlook
says ~ on the basis of VU. S.
statistics ~-gnetted 73% of the
savings in 1950.' Five out of 10
American- families not only. were
unable to save, went into the

hole during 1950\~ the latest
year on -which statistics are
available.

While ~the average liquid asset
holdings of all american units~
were $300 in 1950, 65% of the
total holdings were in the possession of the wealthiest 10% of
the nation~s families,

ye \ at

On.the basis of these firures,
the Outlook concludes /that ~~those
who have been heralding the
great American savings spree are
going to be disappointed. The
post-Korean boom has just not
created the conditions Which existed when the typical family
could afford to save...

~Far from being able~ to engage in real. liquid savings, the
overwhelming majority of families find their actual real incomes
too low to absorb-the Hbandant
sttpply of high-priced godds which
have been crowding the,.shelves
~of the stores and waréhouses of
the nation for almost a year.

~If proper price and frofit reand imposed on, businessmen following the Korean invasion, many
peace of mind and sense of se
cumulations would have ~served

namic economy proves capable of

to the latest government reports. |.

Pnow,~~

the nation well when defense pro- |
| duction levels off and our dy
than at any time in its history.~|

eeds Vets.

Here~s a message from. the
Michigan Office of Civil Defense.
~Michigan~s local Civil Defense
officials need your experience to
help organize and train efficient
Civil Defense units to protect
your community in the event of
sudden enemy attach,~ Brig. Gen.
Lester J. Maitland, State Civil
Defense Director said.
~Whatever your former military speciality, there~s a place
for you in Civil Defense.~
-~Men are needed for Ground
Observer Corps posts, and for

police, fire, warden, rescue, trans
portation, communication and
many other. services in every
community,~ the General said.
~Volunteer to your local Civil
Defense, Mobile Support or
Ground Observer Corps director
the State Civil Defense
director urged. ~If. you do not
have their mames, write to the
Michigan Office of Civil Defense,
Prudden Building, Lansing, and

information on Civil Defense or
ganization jAn* your community
will be furnished you.~

Safety Tips On

Kite Flying

Although Benjamin. Franklin

-lsarvived a series of~shocks while

flying a kite during an electric
storm, boys and girls of today
should not attempt to copy him,
according to Division Manager
S. C. Dowling of. Consumers
Power Company, in his arnual
warning to kite flyers.

~Flying kites in inclement weather, even if they are constructed
properly of wood, cloth and
paper, can be very dangerous,~
Mr. Dowling said. ~Even the
lightest rain can dampen kites
and string and lightening could

sl be then attracted to the kites and

conducted~ to the flyer with fatal
results,~ he added. ~

Mr.. Dowling said the safe kite
is the wood-frame~ ~model, with
paper covering and plain string or
twine, containing no métallic
threads, and cloth-tail. He said
that Mr. Franklin~s risk was in,
the interests of electrical science,
but that Consumers Power Company is satisfied with the results
attained by Mr. Franklin ani does
not solicit additional kite experiments.

He warned also that children
should fly kites far from power
lines or installations, preferably
In open country.

Business Keeps
Expanding

You~ve been. reading a lot of
gloomy statements that taxes are
killing industry, that it no
money, and that there~s no incentive left to go ahead. But don~t -
you believe it, because the facts
present a different picture. <A
survey just completed by the
department of commerce shows
that industry plans to spend more.
than 24 billion dollars. for new
plants and equipment this year.'. and that~s a lot of money
for people who claim that taxes
have left them penniless and that
there~s no incentive,

The 24-billion dollar expansion
program, by the way, represents ~
a 4 percent imérease over the
money spent last year, which was
a record up to then. ~

About 400,000 women enginjeers in Britain recently were awarded a rise in pay of 10s.ld: a

week. The award is back dated
to November 23, 1951.

remy 7 v

~PEDRO

g

SMITH

Bumping and Painting

4216 ANDREWS ST.

Phone 3-1467

~FLINT, MICH.