The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1930-08-11
Why the Economic Crisis Will
WOrSen

'upturn" in the fall. But he leaves himself an
ample loophole to jump through when the in
evitable deepening of the crisis comes about
His slippery words are these
Perhaps it is natural that those who still
feel confident of some improvement in Au-
gust and September should wonder whether
this bulge, if it comes, will hold"
"If it comes" and will it hold"-here is
real capitalist definiteness about the funda-
mental movement of their economic system.
Overproduction.
In this connection it is necessary to en-
phasize the fundamental character of the pres
ent crisis and examine some of the means that
the bosses advance for overcoming it.
Comrades Stain and Molotov, at the Six
teenth Congress of the Communist Party, Sow
let Union, clearly estimated the nature of the
crisis. Stain said:
''TOdays economic crisis is a crisis of
OVERPRODUCTION. That is, more goods
being produced than the market can abb
sorb-more fabrics, fuel factory articles
and food are being produced than the main
consumers, that is, the masses of people
whose incomes remain on a low level, can
buy for cash. 1t is, at the same time,
world crisis in the sense that the industrial
crisis comedies with the AGRARIAN crisis
affecting the production of every description
ing agraran countries of the world"
The Journal of Commerce July 81 points
out that not only is there overproduction of
manufactured commodities, but there is vast
overproduction in machinery of production and
in building construction.
What remedies do the boss spokesman pro-
pose? DR.. Julius Klein, assistant secretary of
the department of commerce, the economic
paragon of the Hoover regime, urges further
naturalization, that is, a speeding-up of one of
the basic factors causing the crisis. Arno H.
Johnson, in an article in the Annalist august
y says that American business is faced with
the great problem" of "the necessity for
maintaining high volume of production"
With all proof pointing out further shrink
age in home and world markets, speeding up
production, naturalization and maintenance of
high volume of production" will distinctively
worsen the present phase of overproduction.
Shrinking Home Market.
One of the main facts brought out in Mr..
Johnson's article is that not only have the
home markets in the United States shrunk be-
cause of the unemployment of large sections
of the workers, but the stock market crash
Topped off considerable amount of purchas-
ing power OF the netty -bourgeoisie.
In the same issue of the Annaist there is
another article entitled, "The Decline of Rural
Buying Power and Credit in the Interior
States" The whole purport of this article is
to show that the advancing agrarian crisis Is
rapidly reducing the purchasing power of the
farmers. They are being denied ere Its. In
stallment buying is being curtailed. Buying Of
farm implements is being cut sharply. In short,
both in the industrial and agrarian sections of
the country the market is fast contracting Yet
the bosses remedy for the crisis is more pro-
duction (overproduction), speeding UP the
workers on lower wages.
Then there is the matter OF world markets