Voice of action. [volume] (Seattle, Wash.) 1933-1936, 1935-01-25
SPOTLIGHT II &c;
ON THE
World Crisis
By DONALD GLEASON
Roosevelt's Insurance Plan
Situation Is Hopeless
Unemployed Get one-Fourth
The Workers Future
By DONALD GIL
THE FACT THAT NO real i'm


provement in the condition of
the masses can come out OF cap
italism is becoming obvious even
to the liberals. The editors of the
New Republic admit that the
Workers Unemployment Insur-
ance Bill (HR 2S27) is the only
adequate measure proposed but
point out that it would wreck
the profit system. In plain words
adequate relief for those who lose
their jobs by the contradictions
of capitalism cannot be given un-
der the capitalistic system.
President RoOsevelt's propos-
ed social security measures are
pretenses at reform dictated by
the desire to preserve profits.
AS u result these measures do
not give sufficient relief and the
cost Is charged to the workers.
His plan for unemployment in
surance, for instance, would give
only One-half of the weekly wage
and that would begin one month
after the worker lost his job
and would end after four months
of unemployment benefits. Only
those now at work will come I'M
der the plan and it will be 1888
before the fund will be large
enough to function. The money
for the insurance will come from
a payroll tax. The employer will
reduce wages by the amount of
the tax and at the same time
raise prices. With prices raised
the workers will pay double be-
cause of the increase in their
cost of living.
ANOTHER EXAMPLE of the
hopeless situation of capitalism
is pointed out by a conservative,
James w. Angel, Professor of
Economics at Columbia Univers-
ity who makes an analysis of our
credit system in the January A
Annalist. Since 1880 the Federal
debt has increased IA billion dol
lars. In the next two years Roose-
welt will add another eight billion
to this sum. This money is OBJ
tanned by forcing the banks to
buy government bonds.
Private financing is so stag
nant that of the November bond
issue of 100 million about three
million represented new private
financing. The remainder was
largely government securities.
Over two-thirds of the whole fed
eral debt since 1880 has gone into
the banks. In addition to the
eight billion for the next two
years the treasury will have to re-
finance Is billions which comes
due but which it cannot pay. The,
banks will buy these bonds be-
cause there is no other place to
invest and because the govern
ment lets the bonds show as de-
posts.
If there is a recovery, Angel
asserts that there will be ire
mendous initiation and destruc-
ton of government credit.
Could anything be more con-
Trajectory than the fact that
recovery would cause collapse
Of government credit?
STILL MORE REVEALING of
capitalist ways are the facts
shown by Angel on the amount
of this IA billions of debt which
was used to give the masses re-
lief from starvation. Only two
and three-quarters billions of
this sum has been expended for
direct relief. OF the public works
expenditures of over a billion,
not more than one-half got to
the unemployed. Thus less than
One-quarter of the money Dor
rowed by the government up to
1885 went to the unemployed. All
the bulk of the billions went to
the RFC and other agencies to
help the capitalists keep their
banks, insurance companies, and
railroads.
II Angels estimates are cor
rect the unemployed can get
an accurate idea of what the
Presidents relief work pro-
gram will give them. If all the
proposed four billion for this
year is spent for public works
projects (Which it will not be)
one-half of the sum will reach
the unemployed as pay checks.
The New Deal estimate of
3,50o,000 unemployed to be cared
for is ridiculously low, but at
that figure the relief worker
could only get sill a week. Act
ually he will get less than 81.
WHAT rs THE FUTURE of the
worker under capitalism even If
the fondest dreams of the wealthy
come true, that prosperity will
return? Not only will what he Is
now getting for relief have to
be paid back plus interest, but
twice that sum. 1t will be paid in
the form of taxes, and then as
now, the bulk of those taxes will
be collected from the workers.
BY 1886 this depression will not
only have starved millions of
workers for six years; it has also
placed debt on their backs OF
- billion dollars.