Elements of the Housing Problem |
[Reprinted from Land and Freedom,
May-June 1938]
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| Joseph Dana Miller was
during this period Editor of Land and Freedom. Many of the
editorials published were unsigned. It is therefore possible that
Miller was not the author of this article, although the content is
thought to be consistent with his own perspectives as Editor.
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"Labor Must Demand Better Housing" is the title
of a short article in the International Molders' Journal
for April, 1938, part of an address by Robert J. Watt,
American Labor Representative of the International
Labor Office, Geneva, at the National Public Housing
Conference.
There is no doubt that since labor produces everything
we need and have, labor at least is entitled to what it
produces.
Labor men realize that they build the deluxe dwellings
throughout the country, yet that probably never appreciate why they do not occupy them. It must seem rather
strange that since labor produces the beautiful homes,
the workers are compelled to live, frequently, in the
most dilapidated and outmoded dwellings. It is questionable whether any labor leader has ever raised this
point, or undertaken to tell why this should be. All
they seem to talk about is "Labor Must Demand Better
Housing of the Masses."
In his statement the writer says, "Labor has the most
direct and intimate understanding of the nature of the
housing problem." The American Federation of Labor
today represents about 4,000,000 organized workers and
their families, and an enormous percentage of these families
live their whole lives in what experts call sub-standard
housing, tenements in New York, shot-gun houses in Birmingham and shacks in every industrial town in America,
and today there is a shortage even of shacks."
Rather a strange statement from a Labor Leader.
Why doesn't labor build homes for themselves? Answer:
He waits for someone to give him a job and jobs are not
given out at the present time, for the reason that the
builders cannot afford to put up dwellings and rent them
at the price that the tenants can afford to pay. Causes:
Several Speculative prices of sites high cost of material
continuous labor increases, jurisdictional strikes, and
strikes for an increased wage just as the project is about
to be completed.
There can be no quarrel with labor seeking a high wage.
On the "other hand, however, labor should give a fair
return for that high wage. Continuous strikes delay
the completion of the structure, but the carrying charges
go on. Interest must be paid likewise taxes. This is
all reflected in the rent the owner must exact from the
tenants.
We sometimes wonder whether labor leaders give much
consideration to matters of this kind. We know that
when wages are increased, the cost is passed on to the
consumer. Labor gets a return for his product, whether
it be a brick, a steel girder or a sheet of glass. We wonder
whether labor realizes that labor gets absolutely nothing
for producing a site. The site was there before man came
on earth, and yet, when man requires that site for his
needs, he is compelled to pay someone all that can be
exacted, and labor must pay for it.
If labor would give attention to the amount of taxes
that go into production and distribution, they may,
perhaps, have another view of the labor situation and
unemployment.
Since this subject refers to housing, it. is well that we
use housing as an illustration. According to the requirements under the Wagner Act, no room erected under
Federal auspices shall cost more than $1,250. A family
needs four rooms on the average for its requirements.
This means $5,000 for an apartment. Taking the New
York City tax rate as a basis, the taxes alone on the apartment will be $150 a year. This is exclusive of the land
tax. In Atlantic City, however, the tax will be nearly
$600, for there the rate is almost double that of what it
is in New York. The New York rate is the lowest of any
large urban center.
Present construction costs indicate that the wages in
construction is 60 per cent, if not more, of the entire cost;
60 per cent of $5,000 is $3,000. When the structure is
completed, the builder is compelled to pay a $90 tax
just because he employed labor in putting the building
together. There is a similar tax on every other commodity
and article going into the structure.
Under the circumstances, builders cannot be blamed
for not going in for construction, since, after they employ
labor, both in building and in preparing materials, a heavy
tax is placed upon the project.
This should be the concern of labor and not urging
governments to go in for subsidized housing. If labor
can only pay $4.00 a room a month and the cost of maintaining that room is $ 10.00, the difference under a Federal
subsidy must come out of taxes, which are passed on to
those who at that particular time can be forced to pay
the increased taxes. Increased taxes on those whose
earnings are higher will eventually reduce their purchasing power, for taxes take part of their earnings. This
will bring us into the vicious circle of reducing purchasing
power all around. A lack of customers is what causes
business depressions. Customers only buy in accordance
with the amount they have to spend. If it is taken from
them in taxes, they must take it out of shelter, food and
clothing.
Some day, somehow, labor may realize who is doing
the pinching. They can no longer blame it on capital.
Factories are closed down, mills and mines are being
abandoned and the banks are loaded down with money
which they are unable to lend. The fear of investing
has reached a point where business men will not take a
chance, since all they produce is taken from them in
taxes. Clean up the tax situation, take the burden off
industry and labor and the machine will begin to work.
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