The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-08-20
Production a Moral Issue"

''Production Moral Issue
The following article by Roger w. Babson, a
noted statistician and economist, on the real
causes and cure for the high cost of living drives
right to the heart Of the great blight that has
befallen all Of US. Some Of these days the great
masses Of Americans, who are really sound at
heart and want to do the right thing because it
is right, are going to awaken to the truth of the
economic situation as Mr.. Babson explains it.
When that day comes it will be a sorry one fol
the agitators and false prophets who have been
mis-interpreting the signs and misleading the
people. The day is nearly here now when the
people will clearly see which of their leaders are
unselfishly working to guide them Alright and
which are self-seekers and seeking to lead them
to destruction and suffering. The Law of Com
pensation is immutable. It will always smash
the evil doer, the false Of heart.
Mr.. Babson says:
"It is very wrong to attempt to blame the
merchants and storekeepers for the increased
cost of living. 1t is doubly wrong:-first, be.
it is unfair to these people, and second be-
cause the publicity connected Herewith directs
the peoples attention away from the real cause
and the real cure. 1t likewise is wrong to blame
high prices onto high wages, vice versa. Both
are relative and always will be- When expressed
in dollars neither prices nor wages mean any.
thing. 1t does US no good to get $40 day and
work only hours day if this means that bread
will be 81 loaf. A discussion Of either wages OF
prices alone is like arguing which existed first,
hen or an egg! We have fooled ourselves long
enough by putting our thumb on the thermo-
meter bulb. 1t is time that we went down cellar
and put some coal in the furnace. The increased
cost of living can be reduced only by increasing
production or decreasing consumption, or by both.
When production exceeds consumption, the cost
of living declines; but when consumption exceeds
production, the cost of living increases.
Usually, the cost of living is reduced thru
the latter method namely, by reducing con.
sumption. This comes about by prices getting
so high that people curtail their buying to point
which makes prices decline When prices begin
to decline they fall further than is needed, be-
cause people get panic stricken and refuse to buy
on a falling market, even for their legitimate
needs. Hence, in accordance with the law of
equal and opposite reaction, prices on declining
market fall as far below their normal, they rise
above their normal during boom times. This is
why the cost of living declines during business
depression even tho production falls off and I'm.
employment is common.
"The ideal way to reduce the cost Of living is
by increasing production! Reductions in the cost
of living which come thru reductions in consump.
ton are only temporary. AS soon as business
picks up and people again become employed, the
cost of living again begins to climb and we are
worse off than before. This explains why all tho
commissions and other attempts to reduce the
cost of living during the past decades have failed
The high cost of living is necessary reaction tt
The grasping attitude which $50 of us take to-
ward life. We are taught to get all we can and
give little
LAS long only comparatively few families
had this grasping nature, things went on very
well. In our fathers days enough people had the
right point of view toward life to keep the rest
fed, housed and clothed on decent basis. We
are like party in a rowboat. AS long as all row
we get along finely One, even, may loaf anc
still we make progress. Now, however, almost
everyone is Stacking on his oars, and the boat is
stopping. We can get on with few robbers
The country will stand certain amount of burg
larry and still prosper but when all turn burglars
production falls off and prices shoot up. That