The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-08
Liberal Viewpoint
by DR. HARRY ELMER BARNES

n TICHOLAS MURRAY BUTLER doubtless
! IN regards himself as a stalwart liberal. In
deed from time to time he has uttered OBJ
servations which must have given no little pain
to irreconcilabe Bourbons.
But he certainly got away to a bad start in
his talk at Southampton, L. l., in which he
branded as sheer invention" the allegation
that there is a maldistributon of wealth and
income in the United States or any excessive
amount of unemployment today.
To support his contention, DR.. Butler cited
savings bank deposits of $250O0,000000 owned
by As 100000 individuals; $100000,000,000 of out
standing life insurance distributed among u.s.
900 900 policies; and radios in 40 per cent OF
our homes.
DR.. Butler did not analyze the degree of
concentration of wealth which is represented
by either the savings banks deposit or the life
insurance deposits. Had he done so, he would
have found that much of these impressive
sums represented extensive deposits by few
wealthy men and large life insurance policies
held by a relatively small number of men. The
average savings bank deposit is SMALL as is the
usual life insurance policy held by the COM
mon man.
And he does not tell us the average cost
of a radio or how many were secondhand
machines or radios no longer in running order
Nor did he examine into how many we're not
running because the owners could not afford
new tubes, batteries or electric current.
DUT we will waive these embarrassing con-
ID siderations and get down to fundamentals
Let us not take poSt-depresSion years, but the
boom period. In 1929, IA 701 individuals reported
net incomes of over 100000, and the top one
fifth of federal income taxpayers received three
ffths of the total increase of income reported
| from 1921-1929 The proportion of the total
national income wealth going to those with in
comes less than $4,000 a year, namely, 98.8 per
cent of the population, was less in 1929 than in
1921.
In 1928 perhaps our most prosperous year
in history, the average income of all wage earn
ers gainfuly employed was S12O5; that of I'M
skilled laborers less than $1,000, and that of
agricultural laborers some S525 Yet the United
States government estimated that health and
decency budget for family of five must run
| to about 81 ,900
Nor is the poverty of our farmers sheer in
vention." Long before the drought their condi-
ton was desperate The value of lands dropped
from S54 300 900 900 in 1920 to $34 200 100000 in
1890 The shate of the farm income in our ma
tional incomes fell from 10 per cent in 1919 to
9 per cent in 1929. Over 40 per cent of all farms
are mortgaged and the farmers owe about
81 600 0000 900 in short time debts.
| One representative set of figure tells the
whole story of how the distribution of income
in the United States is so unfair and highly con-
centrated even in boom years as to capitalism
and the profit system.
TN 1928 there were about 100000 persons
i with incomes of less than $1,000 Their tota
monetary income was about SOS, 900 600. Or
any reasonable budgetary allotment the mos
| they could spend for manufactured goods was
$50. 900 900 000 Yet in that year we manufac-
| tured consumers goods, irrespective Of those ex-
ported, to the value of about S55,000,0 100000.
There remained about 100000 individuals
| with incomes of over 5000 They could not be-
Gin to buy up the surplus $4,000 100000 worth
| of goods out Of the reach of those with incomes
of less than $4,000 year. Glutted inventories
in factories and stores closed factories and the
depression were the answer.
Or. to take another example, the value OF
manufactured goods in this country increased BY
$4,000, 000, 900 from 1928 to 1929. Wages tc
workers. however increased by only S60000,000
while our farmers actually were getting less in
1929 than in 1928 How could we expect to sell
an excess of $4,000 100000 worth Of goods on a
net increase of income to the masses Of less than
half a billion dollars?
Another point overlooked by President Butler
is that beyond our maldistribution OF wealth. anc
income as evidence of widespread poverty, we
must reckon with long and short term private
and public debt of some S240,OO0 100000 about
equal to our whole national wealth.
The strategy Of the liberal is to point re-
/ lentlessly to maldistribution of wealth and in
come and to demand readjustment which VII
produce sufficient mass purchasing power tc
permit capitalism and the profit system tc
| operate To refuse to face the facts Is TO make
inevitable that very radicalism which DR.. Butler
denounceS.