The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-05-27
The WAY Out

Glenn Frank president of Wisconsin university
has pertinent things to say on subject treated in
an editorial in this newspaper yesterday. The edi-
+orial was entitled Imitation Then-Depression
Now"
THE supreme battle Of this generation is on just
now between the deationsts and the consumptonists
The defatonsts are those business leaders who think
the way out lies in reducing the standards of living
The consumptionists are those who think the way out
lies in raising the standards of living.
1.-The defationiss of today blood brothers of the
nhationsts of yesterday, and they are just as bat
blind to economic and social realities
THE simple fact is that machine economy must
along with the making of commodities, to it that
the consuming millions have money with which to
buy the products the machine economy creates. And
that means higher wages than we yet have paid,
shorter hours than we yet have SET and lower prices
than we yet have fixed
Our machine economy today is sinking us in
sea of surplus production that could if we were
statesmanlike enough, be used to the advantage of
ourselves and of the world.
Il decline to concur with the observers who insist
we are producing too many goods There are 100000,
600 of i'll this nation, and people, we have far
from satisfied the legitimate demands Of healthy and
civilized folk.
eff and when the leadership of industry assumes
as its major duties increasing the incomes of the
millions it will discover that as by-product of this
statesmanike social ministry, it has made greater
profits than before.
1.-THE logic of events at least is proving that the
basic policies that will prove best for labor the
policies that will prove best for capital and vice versa
I'm the entire history of business America every
general reduction of hours and every general rise
in wages however bitterly fought by business and in
fresh accession of business activity and general pros
perty.
1T is one Of the irones of history that the very
things for which labor and liberalism have pleaded
through the generations on the ground of simple So
cal iustce-high wages, short hours low prices-now
are seen to be the only things that can the interest
of the sovency of capitalism keep industrial order
a going concern.
Here is the great paradox At. the very moment
when a slump in purchasing left industries with ex-
cess products there existed in the country far
than enough purchasing power to absorb all these
excess products and call for stn greater production
Why then, did not this purchasing power come into
play2
ITO me- one of the important parts of the answer
Is sun-clear The reason that this surplus purchasing
power was kept out of active circulation was that it
existed in large part a social surplus that was
not from a broad national and even business point
Of view, properly distributed
This inactive surplus purchasing power was in
large part in the hands of small minority who for
personal and family consumption, neither needed nor
desired to buy more, while the large majority who
for personal and family consumption. both needed
and desired to buy more did not have much if any,
excess purchasing power.
"The key to national prosperity IS the release Of
7And a score Of Americas outstanding business men,