Ever since the late President Roosevelt's declaration that the South constituted the Nation's number one economic problem, evidences of extra-regional concern with happenings in this part of the country have multiplied. The FEPA is the most dramatic current expression of this concern. Leaders of organized labor of necessity must take account of Southern labor standards in formulating their strategy. The CIO is reported to have set aside a million dollars to be spent in the present year in an organizing campaign in the South designed to raise the regional level of wages. Several Administration bills now pending in the Congress point in the same direction. Perhaps the least publicized is the one (HR 4068 and S. 1385) to authorize and provide funds for expanding Federal and state activities designed to encourage the industrialization of underdeveloped areas, in areas with surplus agricultural labor.2 This solicitude is justifiable. Differences in levels of living, particularly as between the Old South, the North and the West, are disquietingly large, too large to be accepted any longer as a matter of course. They weaken national unity in the same way that abject poverty in the so-called backward countries weakens world unity. Dr. W. S. Woytinsky, now with the Social Security Board, has worked out a convenient measure of this gross regional disparity in his Report on Earnings and Social Security in the United States.3 For each of the twelve years, 1929-1940 inclusive, he calculated a ratio obtained by dividing the median per capita income of the five highest ranking states by that of the five lowest ranking states, and also corresponding ratios for all wage earners in covered employment and for wage earners in industry. In 1929 the first ratio stood at 3.46. By 1931, at the depth of the depression, it had increased to 4.64. In 1940 it again stood at the old level, 3.45, to be exact. This meant, on the average, that individuals in the richest states, at the beginning and at the end of this twelve year period, had approximately 3? dollars to every dollar possessed by individuals in the five poorest states. Needless to say, the five poorest states throughout the period were Southern states. For all wage earners, the ratio was 2.07 (1937); for wage earners in industry, it was 1.76 (1935). These last two ratios are very significant. They show that the incomes of Southern wage earners as a whole were substantially
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