The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-07-01
M. E.TracySays:

CE NERAL HUGH S. JOHNSON, adminstra-
~ tor for the recovery plan, is right in warn
ing us of the necessity of causing wages to adj
vance faster than prices, if buying power is to
be increased.
Buying power does not depend on the amount
we earn or get, but the relationship of that
amount to what we must spend to live. If prices
were to go up faster than wages, we should lose.
Cutting down the hours of labor will not in
crease buying power, unless the volume of bust
ness in increased. This hardly be done with
out developing new lines of work
There is an obvious overproduction in GER
tain well-defined fields. Putting more people to
work in those fields by shortening the hours of
labor may be desirable from the standpoint of
distribution, but it not increase aggregate
buying power.
The economic structure rests primarily on
consumption, and there are definite limits to
consumption in each particular line. man can
not be made to eat more bread than his stomach
will hold or drink more beer.
Neither can he be made to wear out more
than given amount of clothing, except through
waste and extravaganza CONSUMPTION is de-
termined by the variety rather than by the
quantity of products. The one hope of greater
consumption lies in more diversified life.
ME road to progress lies through the multi
plication of activities comforts and con-
VenlenceS, rather than through the reorganiza-
ton of old enterprises and institutions This is
especially true because of the way machinery has
affected production.
If people were to restrict consumption to
what is regarded as necessary right now. there
would be little hope of restoring prosperity To
make this perfectly clear, just suppose what
would have happened if people had decided to
restrict consumption to the necessities of rs or
even fifty years ago. to get along without electric
lights, telephones, autos, airplanes, and many
such accessories of modern life
The true advantage of machinery does not
consist in the fact that it enables us to do old
things faster but in the possibility it offers of
doing so many new things
At no time in human history would il he en-
disastrous to stop pioneering and experimental
ton as at present The only way we can keen
our industrial structure functioning is through
expansion. The only way We can get expansion
is through development Of new activities and en-
terprises
DESIRABLE as the reorganization of we'll
- established enterprises may be, it will fail
10 answer the need Of increased consumption,
unless 1t is vlsualized as merely setting the stage
Tor innovations and improvements
Our power TO consume given article or a
gwen service is limited which means that our
power to earn through the production Of that
article. or the performance of that service also
is limited The only limitless prospect we face
is the improvement of living conditions through
human ingenuity
Nothing must be allowed to interfere with
the discovery, invention, and exploitation of new
devices or the development of new activities In
fact, everything possible must be done TO en-
courage them, if we are to make proper use of
mechanical power and scientific knowledge.