THIRTY-HOUR WORK WEEK 15 tures which can be recouped only by income derived through a period of years. The essence of such commitments is confidence extending beyond the immediate future. Without such confidence, stagnation in these industries is inevitable. The Black 30-hour bill would intensify the stagnation that exists today. It would vitiate such gains in durable-goods employment and production as will restore industrial equilibrium. Restored industrial equilibrium is vital to widened markets for agricultural products, and the achievement of equilibrium between agriculture and industry. Thus runs the sequence of reemployment and recovery At page 430: Present costs which have failed to move goods and to create employment must be reduced to levels that will move goods and provide employment. To that end industry is devoting its every effort. The 30-hour week simply will not provide labor in these industries with a decent living wage, and permit costs and prices at which buyers will purchase their products—it is the one sure way to achieve continued depression. At page 431: The conclusions of the report of the Committee to the President under date of May 14, 1934, are set forth at pages 431 and 432. The Black 30-hour bill meets none of what we believe to be the essentials of reemployment and sound recovery. J. F. Kolb, director of industrial relations, National Metal Trades Association (hearings, p. 324): At page 325t * * * The average American workman does not want a shorter working week; in fact, most of them are eager to work more hours than employers could supply, so their weekly pay checks would be adequate for family needs. On the contrary, we should emphasize that this country needs more production at lowei prices instead of less at higher prices, which would be the certain result of a sharp * * Effects upon various reduction of hours without reduced earnings.* economic classes (of the N. R. A. codes) indicate the workers’ real wages would be appreciably reduced by the rise in commodity prices which would compel adoption of a lower standard of living. If the 30-hour bill was applied indiscriminately to employees working 43 hours and others working 23 hours it would obviously be unfair to either or both so far as application of wage rates was involved. At page 326: Employment in industry is possible only as their products can be sold. Goods can be sold only on the basis of prices that create demand. The prices of products are based on costs, both direct and indirect, represented by labor in materials and supplies used in manufacture, because every manufacturer is a buyer, fabricator, and seller. The manufacturer must indemnify himself for these higher costs by charging higher prices. Present costs which have prevented sales and increased unemployment must be reduced so our products and prices will induce buying. The results of a 30-hour week with no increase or decrease in production of manufacturing industries probably would produce the following results: For the unemployed workers: Restoration to employment of some of their number, perhaps 20 to 30 percent. For the employed workers: Reduced hours, increased hourly earnings. Sta- Reduced real wage. tionary money income per week. Increased cost of living. Increased labor cost For the manufacturers: Smaller output per man-hour. per man-hour. Larger increase in labor cost per unit of product. Reduced sales. It goes without saying that it is the duty of the Nation to prevent want among the unemployed. But to seek this end by a compulsory reduction of the hours of work, which would freeze the possible volume of production below the level required to give all the people the abundance they desire, is as short-sighted as it is lacking in understanding.