Evening star., 1934-05-14
RETIRED OFFICIAL
SCORES NEW DEAL
Prof. w. F. 0gburn, Early
Brain Truster, Says 1t
Is a FaIIaCy.

Six months ago DR.. William F. Og-
burn, head of the sociology depart
ment of the University of Chicago,
was one of the brain trust"
He was one of the first of the pro-
fessors to get out, when he quit the
Consumers Advisory Board of the
N. r. A.
The distinguished sociologist pays
his compliments to the organization
in his summing up of the new deal
in the current issue of the American
journal of Sociology. 1t is compared
with the patching up of an old auto
mobile.
Prof. Ogburn says:
THE real significance of the N. R,
A. for our present purposes is that it
assumes and implies the continuation
of the characteristic features of the
old economic system. 1t is doubtful,
accordingly, whether any germs of
genuine reconstruction can be found
in it.
COnf1lCt Held lntenSlne0.
1.-The two basic features of the cap
italistic system that the N. r. A.
takes for granted, and perpetuateS if
not actually intensifies, are the con-
f1ict relation between various factors
of production and the profit motive
as the central dynamic OF economic
activity. The characteristic organiza-
ton of a productive unit under the
capitalistic system is an owner of
businesS-repreSented in typical cases
by the stockholders of corporations
obtaining from other sources the cap
ital. land. labor and management
necessary for the conduct Of his busi-
ness.
The terms on which these factors
are secured are essentially those OF
contract The essence of contract is
bargaining and the essence of bar
gaining is conflict. The whole spirit
of classical economics assumes that
this conflict-nexus in business is salu-
tary for both the individuals concerned
and for society.
1T has taken a century and half
to demonstrate the falsity of this as
sumption when applied to modern
conditions. The demonstration is now
conclusive to most impartial analysts,
and yet the N. r. A. is predicated on
the continuance of this conflict rela-
ton. The heavy evidence laid on
trade unions is outstanding evidence
of this-for the trade union by its
very nature is an instrument of con-
flict.
Profit Fallacy Retained.
There is no evidence of any recog-
milton of not only the destructivenesS
of unrestrained profit-seeking, but also
of the physical impossibility of un-
limited monetary profit-getting under
the conditions of modern industry and
finance. The assumption is that under
proper regulation, largely self-regula-
ton, competitive private business may
continue to operate on the basis OF
competitive struggle for profits with
out inevitably plunging the country
into repeated abysses of depression.
The fallacy of this assumption alone
is sufficient to indicate that the N. r.
A. is either not to be considered a
reconstruction measure at all, or that,
as such, it is entirely inadequate.
Finally, the new deal manifestS no
sufficient recognition of the needs and
rights of the consumer, and the neces-
sity of recognizing him as the key
stone of the whole arch of prosperity.
The President. evidently, still believes
that the way to help the consumer is
to help the producer. His continuous
emphasis on price-raising is sufficient
evidence of this"