The United States is at present in the throes of the worst period of industrial stagnation it has experienced since the 1930s. And Canada, as number one U.S. satellite, with an economy closely interwoven with that of the U.S., fares no better. The seriousness of the situation may be indicated by the figures for unemployment, which in March reached 5,198,000 in the U.S., and 590,000 in Canada.
Political, business and other leaders in both countries respond to the condition m the same shallow manner.
When the existence of the “recession” was officially recognised some months ago, U.S. President Eisenhower proposed to deal with it by substantial tax reductions, which, he said, would increase purchasing power deplete, surpluses and start the wheels of industry turning again. Mr. Pearson, Canada’s Liberal leader, also advanced this thought in the last election campaign. The proposal has not yet been put into operation, perhaps because Mr. Eisenhower forgot about it and Mr. Pearson failed to become Prime Minister.
At present Mr. Eisenhower is lending his support to “operation optimism." Lack of confidence is now blamed for the recession and this confidence must be restored. People must in some way be encouraged to buy goods, even to the point of extravagance, they must, in Mr. Eisenhower’s words, be urged to “buy anything.”
Following this line of reasoning, U.S. capitalists are doing their best to propagandise themselves back to prosperity. The Advertising Council, a top advertising group, has started a four-month “confidence in a growing America” campaign, intended to improve the “economic attitudes” of consumers. Auto dealers in 110 cities have started sales drives featuring the slogan, “You Auto Buy Now.” It is expected that this campaign will spread to 200 more cities. Cleveland has started a “Buy Now” campaign, with a “V for Values” theme and a “Miss Prosperity.” Boston is planning a POPS (“Power of Positive Selling ”) drive to “combat loose recession talk.” In New York a “National Sales Crusade” is being launched. Some business men are wearing embroidered pocket handkerchiefs proclaiming “Business is GREAT.” An appliance concern has issued large lapel buttons saying “Business is Good.” The Public Relations Society of America has asked its members to send all optimistic news they can about their companies to a central clearing house for national distribution.
If empty prattle is an effective weapon against hard times, there is enough of it circulating at present in the U.S. to take care of all eventualities.
Canadians are not able to chase banshees with the same vigour and versatility as their American cousins, but they do have the same tendency to deliver sledgehammer blows at everything except the nail. Prime Minister Diefenbaker thought a while ago that diverting trade from the U.S. to Britain would help. Now he insists that he was misunderstood. Throughout the winter a Government-sponsored campaign to “Do It Now” was carried on. Billboards, radio, television newspapers, all were used to urge those who needed jobs done to have them done at once. More recently the trade union movement has been taking up Mr. Eisenhower's proposal of lower taxes. Claude Jodoin, Canadian Labour Congress president, at the recent CLC Convention, dealt at some length on this theme, seeing in lower taxes a billion extra dollars being put into the pockets of the consumers, “particularly the poorer consumers.”
Meanwhile the employing class, despite their playfulness, are not passing up a favourable opportunity to look after themselves. The Dominion Bureau of Statistics reports that the income of Canadian labour in the one-month period from December to January had declined 4.5 per cent., and hourly wages in manufacturing declined from $1.65 on January 1st to $1.64 on February 1st. The decline between December and January can be attributed mainly to increasing unemployment, but that cannot be said of the later decline.
Mr. Jodoin and the trade unions should take a long look at these figures and then start grooming themselves for some independent working class activity.
What they ought not to be doing is looking to their masters for sensible or helpful suggestions.
Jim Milne,
(Socialist Party of Canada).
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