The Washington times., 1934-12-27

GIldU CAP4OlGeI- J ~
ton exists, it is IA ~
bad, and no
one can defend Lewis NANCY
It. Where exploiters can be
reached without hurting others,
their ill-gotten gains may be
taken from them.
But we must remember that
large incomes do not necessarily
represent exploitation. They may
represent either superior ability,
or luck. Men are not equal in
ability, or character, or training,
any more than horses or dogs are.
We don't expect all horses to
run equally fast, nor all dogs to
work with equal intelligence.
So large incomes may represent
large abilities. At least, we should
be cautious about leveling them
down, lest we lose the benefit OF
the abilities rewarded thereby.
think our wiSest course is to
try to stamp out fraud, dishonest
practices, and monopoly. Then
let people earn as much as they
can.
Some letters argue that capi-
taliStS buy labor for less than
It is worth. Maybe they do
sometimes. But what is labor
worth? Remember, work IS not
worth anything unless it is
directed toward producing valu-
able products. If it is wasted,
it may be worth nothing. For
example, if everybody went to
building houses so that houses
were so abundant that they
were free, nobody could expect
any wages at all. Then labor
would be worthless, because the
product (hOuses) would have
no value.
I think our wisest course is to
prevent monopoly, encourage free
collective bargaining, and provide
training and employment agancies.
Information about conditions and
about "birth control" may be
helpful. Then let laborerS earn
what they can.
How else can we know what Ia
Dor is worth?
The suggestion that we take
away the large incomes secured in
the past, has many difficulties.
LA &hnf
incomes are not really earned.
Then we must note that taxes
hit all incomes, since they are
largely passed along to everybody
who buys things. Either prices
are marked up, or production is
retarded so that things cost us
more.
Or if the Government tries 90
borrow from the rich, we all go
into debt.
The great danger is that if we
now try to exploit the wealthy,
we will cut down production and
employment, and eventually re.
duce the standard of living of
everybody.
think that our heavy .nheri.
tance and estate taxes, and our
heavy taxes on large incomes
(Which run as high as 60 per
cent? go about as far as we can
go. And unfortunately these
taxes fall on the incomes of those
who really earn them as we'll as
on the exploiterS.
We need to remember that
"capitalism' is a system, and has
many merits. It is the only
known practical system other
than some brand of socialism.
It means much more than any
particular capitalist. There are
good capitalists and bad ones, just
as there are good socialists and
bad ones, or good and bad Demo
Gratis.
Capitalism means THAT is, it
can and should mean) a system
according to which each indi-
vidual does two things: (D he
recognizes his dependence upon
the common well.being, and ~
he works for himself, knowing
that he will get all that he
earns. He will have the chance
to try any kind of business &C
tivity or labor he wants to, sub
ject to limitations imposed by
the rights of others.
This system seems to require
large scope for individual initia.
tive. private property, and free.
dom of competition. Society,
through government, may reg
ulate and guide individuals,
but there must be no control of
individual choices nor of market
values, either by government or
private monopoly.
In this way only, can we find
out what things are worth
whether commodities, or labor, or
business enterprise. No "deal," !"
new or old, can decide such mat
ters-because no one can know.
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