Growth and vitality in our economy depend on vigorous private enterprise.  Free competition is the key to industrial development, full production and employment, fair prices, and an ever improving standard of living.  Competition is seriously limited today in many industries by the concentration of economic power and other elements of monopoly.  The appropriation of sufficient funds to permit proper enforcement of the present antitrust laws is essential.  Beyond that we should go on to strengthen our legislation to protect competition.

Another basic element of a strong economic system is the well-being of the wage earners.

We have learned that the well-being of workers depends on high production and consequent high employment.  We have learned equally well that the welfare of industry and agriculture depends on high incomes for our workers.

The Government has wisely chosen to set a floor under wages.  But our 40-cent minimum wage is inadequate and obsolete.  I recommend the lifting of the minimum wage to 75 cents an hour.

In general, however, we must continue to rely on our sound system of collective bargaining to set wage scales.  Workers’ incomes should increase at a rate consistent with the maintenance of sound price, profit, and wage relationships and with increase of productivity.

The Government’s part in labor-management relations is now largely controlled by the terms of the Labor-Management Relations Act of 1947.  I made my attitude clear on this act in my veto message to the Congress last June.  Nothing has occurred since to change my opinion of this law.  As long as it remains the law of the land, however, I shall carry out my constitutional duty and administer it.

As we look ahead we can understand the crucial importance of restraint and wisdom in arriving at new labor-management contracts.  Work stoppages would result in a loss of production—­a loss which could bring higher prices for our citizens and could also deny the necessities of life to the hard-pressed peoples of other lands.  It is my sincere hope that the representatives of labor and of industry will bear in mind that the Nation as a whole has a vital stake in the success of their bargaining efforts.

If we surmount our current economic difficulties, we can move ahead to a great increase [p.7] in our national income which will enable all our people to enjoy richer and fuller lives.

All of us must advance together.  One-fifth of our families now have average annual incomes of less than $850.  We must see that our gains in national income are made more largely available to those with low incomes, whose need is greatest.  This will benefit us all through providing a stable foundation of buying power to maintain prosperity.

Business, labor, agriculture, and Government, working together, must develop the policies which will make possible the realization of the full benefits of our economic system.