Evening star., 1934-08-05
BY WILLIAM HARD,

II 7 OCCURRED 70 me, as one OF the
humblest Of taxpayers, that 1t
might be interesting to ind out
Il Just how much all this 'relief"
of unemployment is going to cost
us this year. SO ! started making in
quiries and I gaineds I think, some
light not only on what is happening
in this matter just now. but also on
what is likely to happen during the
course Of quite few years to come.
In the first place the total expendi-
ture of all public funds on the relief
of unemployment during the flrst
quarter of this year was. in all prob
ability, along about 100000.
But 1t will turn out TO have been
good deal more than that, the ex-
perts tell me. for the second quarter
And ditto for the third quarter and
the fourth quarter The average total
expenditure of all public funds for
the relief OF unemployment during
each Of the three last quarters Of the
year may be as much as $3.50 600, 900.
Total Was Billion.
The total for the year would then
be in the neighborhood of $3.50, 900 900.
Add $70, 100000 to 1t, and call 1t a
billion, in order to be in round-figure
harmony with the spacious spirit Of
the times
But a figure Of expenditure means
nothing unless 1t is compared with
figure of income. How much is our
national income going TO be this year2
The sharpest sharps on the subject in
Washington tell me that, of course.
they do not know, but that could
hardly be far wrong II I guessed at
figure somewhere between forty bill
lion dollars and nifty billion. In order
to be as depressingly close to the
ground as possible, ] shall guess at
forty billion.
We would arrive then at the fol-
lowing economic state Of things:
In this year, by working, we shall
earn $40, 900, 900, 900, and out of it we
shall spend $1,000, ,o00, 900 to support
those of us who are not working In
other words, out Of every dollar that
we earn we shall spend, through tax
alton, az cents on the unemployed.
1t Is q burden. but 1t has to be con-
sidered not only from the point Of
view Of the dictates Of humanity, but
also from the point of view Of the
strange artificial economic situation
which we have contrived for our
selves.
Many working wage earners,
through the influence of the N. r. A.
, and through other influences, are
earning higher hourly wage rates
than ever before. Many corporations,
in the midst Of continuing widespread
unemployment. have resumed paying
Increasing regularity Deposits in
savings banks are mounting. and, In
10 reporting States have now reached
approximately $4,000, 100000. Nu-
merous farmers, because of the
A. A. A. and quite aside from the con-
sequences Of the scarcity caused by
the drought, are receiving incomes
quite considerably enhanced over
those of recent previous years. We
thus arrive at q monstrous paradox.
Many Gain-0thers Lose.
Some of us-largely through gov
ernmental artificialities-are doing
better and better. Others-who can
not break into the circle Of those ar
tificialities-are In colossal numbers
left wholly unemployed. Many
economists believe that it Is precisely
artificially high prices and artiflcially
high wages that prevent industry
from expanding as it should and that
prevent 1t from restoring the unen-
ployed to employment as it might. In
any case, when the Government is
making artificial prosperity for some
of us, is it not Just that it should tax
that prosperity to support those Of us
who are left out Of it?
One thing is certain. 1t will do so.
1t will tax us from Washington and
it will bring pressure to bear upon
State governments to tax us for the
same purpose from our State capitals.
Even now the Federal Emergency Re-
lief Administration has agents in the
field preparing to persuade the State
Legislatures Of next January to in
crease their appropriations for unem-
ployment relief activities.
The cost Of those activities, I think,
Is likely to increase per person un-
employed. The reason is one which
is in fact highly creditable to Ameri-
can character. Our unemployed are
not content with a basket of gro
ceries or a payment Of cash. They
are not content with "the dole" They
necessarily and more and more vehe-
mently - most of them - demand
work" They recoil from cash re-
lief" which is relatively economical.
They want work relief" which Is
relatively expensive.
On this point am left in no doubt
whatsoever, after a talk with Cor
ringtoR Gill, assistant administrator
of the Federal Emergency Relief Ad-
ministrat ton in charge-especially-
research. I have never known Gill to
have an opinion except on the basis
Of research. Gill does not invent
opinions out Of theories regarding hu-
man nature. He derives his opinions
from actual field studies Of human
nature by diligent investigators.
Has Accurate Data.
He has built up, in the office of the
Federar Emergency Relief Admins
tration in Washington, the most
massive and comprehensive studies
ever made anywhere in the world on
the various multitudinous features of
an unemployment crisis. take ellis
view of the characteristics and of the
desires of our unemployed with an
absolute certainty Of its correctness. |
Gill says: