Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1921-11-23
UNEMPLOYMENT

ment Busy industries automatically cure it.
and there is, OF course other real or permanent
tEe. For the government to undertake. some
oIose to hire the unemployed. is plan that
WA defeat itself unless they who are put to work
create enough wealth to pay their
wages. Ii their wages have to be paid OF
taxes, the process OF curing existing unemploy-
ment will create new unemployment They who
pay the extra taxes will have less to spend on
other things. If they spend less other things
they will employ fewer workers in producing
those other things. The taxpayers will then
have to pay still taxes to take OF the
new class Of unemployed. thereby throwing still
others out of employment and adj infinitum
In short, neither government industries pri-
vate industries unemployment unless
kind of work be found that will create
enough wealth to pay the expenses. If
those expenses have to be substracted from exist
ing wealth. the process merely transfers tn,
unemployment from one group to another.
Why are indutries idle: Precisely because the
owners and managers do not see any way OF pay
ing expenses OF receipts, OF the new
wealth created. Whenever owners and mana
gers think, that they can pay expenses out of re-
cepts, they start the industries But why can't the
managers and owners pay expenses out OF re-
cepts? That is the heart OF the whole problem.
Until it is answered, have not even a glimme1
OF light OH the problem OF unemployment. When
it is completely answered shall have solved the
problem. One reason why the problem is SO diff
cult is that there is single answer but great
many partial answers that is it is a problem of
many factors working in combination. One of
the obvious is scarcity OF men OF high bust
ness capacity. There are few men who are able
fo Goar ;,,I ,1l
time. A few more men OF the same caber would
enable a few industries to run One such
man is worth to the laborers than ten thous-
and agitators. OF course it takes a manager OF
greter capacity to pay expenses out of receipts in
hard times than in good times ii times were good
we doubtless would have business capacity enough
to handle the problem OF unemployment That
MEANS of course, that there are other factors in the
problem than the mere supply OF business ability.
Why is business ability scarce? Here again
there are many reasons One is that compare
lively few men are born who have business capa-
city; another is that until recently there were no
schools tor training latent capacity. Our nstitu
tons OF learning were training men for almost ev
erything except business Still another reason is
that the supreme value of such men has not been
appreciated by the people who need them most
namely, the workers. In common with all other
men, men with business capacity like to have their
fellow, citizens appreciate them. If such men are
continually held up to the scorn OF the masses BY
de1nagogic agitators, many of them will be discour
aged from entering business and driven into other
occupations where they are less needed; that is
into working for others instead of employing others
Enough has been said to show that other things
besides the supply of business ability help to ex-
plain why it is difficult to pay the expenses of
an Industry out OF its receipts The expenses NAV
be unnecessarily high If one group OF laborers de-
nands too much, it becomes impossible for the in |
dustry to That throws other groups of labor
ers who are not demanding too much out of EN-
ployment. A railroad strike for instance. closes
great many other industries that depend upon the
airoads
s One OF the costs of business is the danger of
labor troubles. That has 10 be taken into account
Just as definitely as the danger of loss by fire The
business man who did not reckon fire insurance as
q part OF his expense would soon fail Likewise
the business man who does not count the danger of
laoor trouble as part of his expenses 10 be paid
tor out OF receipts will fail In other words, the
receipts OF the industry must pay all the costs in
ciuding insurance against labor troubles 1t takes
man OF greater business capacity to paw the costs
d business when these are high than it would
AXE It some of the items of cost could be eliminated