The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-03-06
NO HOPE seen
OF W|PINC OUT
UNEMPLOYMENT
Surveys Show Numbers
Vary Under Changing
Economic Conditions.
This is the third of series on the
national unemployment situation, its
causes and possible remedies.
BY DEXTER M. KEEZER

WASHINGTON, March 6.-With
the automobile industry expanding
its production, steel production on
The upgrade, and business activity
picking up generally, it is probable
that the army of the unemployed
will be substantially reduced during
coming months.
It is not at all likely, however,
that unemployment will be elimi-
mated. Advances made in the eff
cheney of American industry during
recent years are only a beginning.
The process of replacing workers by
machines is going to continue rap
idly. Unless something is done
about it there is going to be con-
tinuing problem Of unemployment,
and possibly one becoming increas-
ingly more serious.
BOoms Are Aids
IN times past recurring waves of
unemployment have been absorbed
in subsequent Blooms" Now the
emphasis of business and industrial
leaders is in the direction of sta
bilizing economic activity to avoid
boomS and the disastrous hangoverS
of depression which follow. Conse-
Quently the remedy for unemploy-
ment can not be found in WhiStling
and waiting for boom days.
Some systematic scheme of han
ding the problem must be devised
if the army OF unemployed is not
to keep on mounting and ultimately
bring economic disaster to the coun-
try as a whole. Unemployed people
are not only miserable themselves,
but are dead weight on the COM
munity.
They consume and do not pro-
duce. They take purchasing power
from those upon whom they are de-
pendent and thus cut down the de-
mand of those supporting them for
products which our factories are
capable of producing.
Far Below Capacity
At present our farms and facto-
) les are not producing at anywhere
near capacity. The reason given is
nat there are not enough orders.
And the reason there are not
enough orders in turn is not that
he products are not needed but
hat the people who want them
have not the purchasing power to
buy them.
The shortage Of purchasing power,
in turn, is at least partially due to
The large volume of unemployment.
What is the way out of this vi
cious circle? An abstract answer is
obvious. Give the unemployed jobs
so that they can get some purchas-
ing power to buy the products of
our industries. The practical work
ing out of this answer is something
Cur country has never tackled.
In 1921, when from 3,5000O0 to
100000 people were unemployed in
the United States, temporary relief
was provided by making large ex-
penditures for public works:
Must Mobilize Workers
That method is suggested to cope
with the present situation, but it is
frankly makeshift and unlikely to
provide more than a temporary re-
lief from the unemployment prob
lem we face today.
Something must be done to mo-
bilize the displaced workers and to
finance permanent producing
projects at which they can make a
living. At present the financial re-
sources of this country are virtual
ly unlimited. Billions of dollars are
being loaned by interior banks to
New York stock spectators.
This is not being done because the
interior banks are welded to the
idea of stock gambling. 1t is being
done because there is not enough
local demand to absorb surplus funds
and the bankers want to make some
thing on their money.
Resources Lying Idle
While funds are being shipped
across the continent for use in stock
speculation in New York, resources
are lying idle and men are looking
for jobs. How can these men and
these resources be brought together
in productive enterprises that will
utilize the financial resources of the