Agricultural Wage Stabilization in World War II

Excerpts from the report: The agricultural wage stabilization program was instituted in the fall of 1942 as part of the wartime program to prevent inflation. It was designed to permit general increases in farm-wage rates. This policy was supported by the double argument that (1) the purchasing power of the average farm-wage earner was exceedingly low and therefore farm-wage rates could be increased materially without creating an inflationary potential and (2) the anti-inflationary effect of increased food and fiber production would more than offset any inflationary potential which might result from an increase in wages for this low-income group. Stabilizing the labor market was a more important anti-inflationary measure than was holding down the wage rates. The benefits from this aspect of the program were of immediate importance to the growers, the workers, and the Nation. Many problems arose in program development and program administration. Misconceptions pertaining to labor earnings, wage rates, worker productivity, and competitive jobs in agriculture were corrected. Fundamental differences between forces affecting agricultural and industrial labor market conditions were highlighted. Basic program concepts of specific ceilings, wage-rate hearings, adjustment standards, and compliance were changed. Administrative problems of organization, delegations of authority, supervision, and controls, were coped with. For about 3 ½ years of operation, the total cost of the program approximated 1 million dollars of the taxpayers’ money. The conclusion that the program, in Iarge measure, was successful in attaining its objectives is well supported.