The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-06-21
Liberal Viewpoint
by DIR. HARRY ELMER BARNES

I'm a careful survey of Americas Capacity to
= Produce" the Bookings Institution at Wash
ington finds that the United States could turn
out twice as many goods we are manufactur-
ing at present We are, indeed, equipped to pro-
duce at least 20 per cent more than we did at
the time of the pre-craSh prosperity.
This estimate is made on the basis of pres
ent mechanical equipment and labor power It
does not in any way imply the scrapping OF
relatively obsolete equipment and the substitu-
ton of more efficient machinery.
There is nothing particularly new in such in
formation. The report of the American engi-
neers on Waste in Industry" sponsored by Her
bert Hoover nearly sixteen years ago came to
almost identical conclusions. 1t commended that
about half OF American productive energy and
capacity is wasted as a result Of the inefficient
methods which characterize our competitive SyS-
tenn. Stuart Chase gave us further clinical ma
terlal, attractively presented, in his THE Trag-
edy OF Waste" which appeared about decade
ago.
But all such information is trivial
compared to what the Technocrats told us a
couple of years back about our productive posi-
bilities if we were to introduce the best mechan-
zeal inventions now known to engineers
A VERY sane engineer, Walter Polekov, esti-
a mates that 100000 men operating the most
up-to-date known machinery could produce all
the goods needed in the United States.
Nor is such information about greater pro-
ductiVe possibilities immediately relevant in the
United States today
Such wastes would be very serious indeed if
they took place in Russia where all the goods
produced can be consumed by the people.
Under the capitalistic and profit system how
ever, greater production is desirable only if &C.
cornpanied by comparable increase in puchas-
ing power. Otherwise, a greater volume of pro-
duction only clogs and gorges the market and
Dogs down our diStributive system
1t would be a splendid thing if the American
people could have more shirts, shoes and houses.
But before they can have them they must have
the money with which to buy them. Merely to
turn out goods while potential consumers only
can stand on the outside and look longingly at
them will get us nowhere
HENCE, no little interest and Importance
Il l. attcheS to an article in The Nation on the
status OF American purchasing power after a
year OF the New Deal. It tells the same old story
of the unwillingneSs of American industrialists
to permit such distribution of the national in
come as will insure adequate purchasing power
and healthy stimulation of business.
Baslng its conclusions upon the figures fur
nished by The Monthly Survey of Business the
article points out that the average weekly wages
OF American industrial workers increased by 81
per cent from March, 1888 to March, 1884. But
this gain was all but eaten up through the fact
that the cost of living rose 9.3 per cent
Another stern fact to be faced is that ap-
proximately 100000 adult workers were I'M
employed in March, 1884. Moreover, at the end
of February, 1884, there were more families re-
ceiving relief than in February 1888.
Though business steadily improved from Oc-
tober, 1888, to March, 1884, the number of I'M
employed increased during this period by
100000.
1t might be countered that industry simply
did not possess the resources to pay higher wages
or to put more men to work