Wages, Prices, Profits

November 2, 1955

Report Outline
Upsurge of Wage Rates and Welfare Benefits
Upswing of Producer and Consumer Prices
Continuing Upward Pressures on Labor Costs
Shares in Rising Corporate Earnings

Upsurge of Wage Rates and Welfare Benefits

The almost unbroken chain of wage increases won by organized labor during the first ten months of 1955, coupled with an unprecedented volume of industrial activity, has lifted the earnings of American workers to record heights. Preliminary estimates by the President's Council of Economic Advisers indicate that the annual rate of compensation for all employees, organized and unorganized, now stands at $224.3 billion—a gain of $16.4 billion over 1954.

Despite the upsurge of wage rates, living costs have remained relatively stable. The Eisenhower administration points to this phenomenon as an outstanding accomplishment of its leadership. Secretary of the Treasury Humphrey told a gathering of Republicans, Oct. 11, that “We now have a sound and stable dollar” and “wage-earners of America are now getting real wage increases instead of …cost of living increases.”

Labor Secretary Mitchell said, Sept. 25, that “The American worker… has more to spend for the things he needs than he has ever had before.” Vice President Nixon said American workers now have “more jobs at higher wages, with greater purchasing power and less strikes than at any time in history.”

ISSUE TRACKER for Related Reports
Cost of Living and Wages
Apr. 17, 2020  Inequality in America
Sep. 08, 2017  Universal Basic Income
Apr. 08, 2016  Future of the Middle Class
Apr. 18, 2014  Wealth and Inequality
Jan. 24, 2014  Minimum Wage
Jun. 19, 2009  Rethinking Retirement
Mar. 06, 2009  Middle-Class Squeeze
Mar. 14, 2008  Gender Pay Gap
Dec. 16, 2005  Minimum Wage
Sep. 27, 2002  Living-Wage Movement
Apr. 17, 1998  Income Inequality
Oct. 27, 1978  Wage-Price Controls
Jun. 16, 1978  Military Pay and Benefits
Mar. 23, 1966  Rising Cost of Living
Oct. 25, 1961  Price-Wage Restraints in National Emergencies
Jun. 21, 1961  Wage Policy in Recovery
Jun. 11, 1958  Prices and Wages in the Recession
Sep. 18, 1957  Control of Living Costs
Nov. 02, 1955  Wages, Prices, Profits
Jan. 26, 1954  Minimum Wage Raise
Jan. 02, 1954  Cost of Living
Jan. 21, 1953  Guaranteed Annual Wage
Dec. 17, 1952  Future of Price and Wage Controls
Nov. 19, 1951  Fringe Benefits and Wage Stabilization
Dec. 06, 1950  Wage Control
Jun. 13, 1949  Wages in Deflation
Jun. 04, 1947  Guarantees of Wages and Employment
Oct. 29, 1946  Decontrol of Wages
Dec. 01, 1945  Minimum Wages
Sep. 29, 1945  Wage Policy
Oct. 27, 1944  Wage Security
May 17, 1943  Incentive Wage Payments
Aug. 25, 1941  Prices, Profits, and Wage Control
Apr. 28, 1941  Wartime Changes in the Cost of Living
Sep. 21, 1940  Two Years of the Wage-Hour Law
Nov. 01, 1938  Industry and Labor Under the Wage-Hour Act
Jan. 20, 1938  Wage Rates and Workers' Incomes
Apr. 11, 1935  The Cost of Living in the United States
Sep. 01, 1930  Wages and the Cost of Living
May 24, 1930  The Anthracite Wage Agreement
Feb. 20, 1925  Measure of Recovery in Profits and Wages Since 1920–21 Depression
General Employment and Labor