The Washington times., 1935-11-01
NEW DEAL IS CHARGED
WITH PR0L0NG|NG
UNEMPLOYMENT
By LEWIS HANEY

We are told by the President that employment and pay
rolls kept pace with production and that therefore
'somehing be DONE The evidence he gives however,
is poor and the reasoning is unsounC
In the first place. the figures cited in support of this notion
inadequate and misleading.
The percentages given based period of relatively
high business activity At such times employment is always
high compared with production Payros are always high
compared with employment Thus there is sense in udg
ing the present percentages by such periods
2 The figures completely inadequate for making such
comparisons The production figures don't the total
production. The employment figures don't total
poment And the two sets Of figures don't cover the same
industries
For example, the production figures used do not include
lumber paper rubber tires chemicals the clothing trades
many others The employment figures attempt to do So
g. It is futile deal in such totals, if the figures
were any good totals.
For example, the base used by Mr. Roosevelt, automobile
production 50 per cent and automobile employment IS "a
per cent? Cement production At per cent and cement en-
poyment 80 per In these and other employment
would to be ahead production But iron and steel
production 81 per cent while employment is only Is per
And tobacco manufacturers show 29 cent produc
tion and only SO per cent employment.
The figures such that understanding would
use them, could them honestly.
In the second place. the President continues ignore bust
cycles and deny economic law He talks if he could
run the economic world.
Here are some facts At tops business cycles pay
rolls always unusually high compared with employment
Laborer then work longer hours and get higher
their total high But this along with overproduc
tion Accordingly it has to be corrected
At the bottoms of business cycles therefore, the condition
is reversed and payros low compared with employment
and the quantity of production Ths thing that allows
business to recovery
Once you get into "boom, and get overproducon and
high payrols nothing earth prevent the following
preston
1t is little short of silly say smngly that force
payrolls up. They will go up just it becomes profit
able to increase production and hire labor for that pur
pose. And they won't any sooner-uness you count
boondogging and WPA exercise as "empoyments."
In the third place. the President ignores fact that his
New Deal policies responsible for the long continuance
the abnormal unemployment.
By wreckng monetary SYSTEM he has made investment
and ongem business plans impossible This keeps the capital
goods industries down.
By attacks private enterprise restrictive laws high
taxes he keeps all business except he goes debt
and around Government checks certain classes thus
creating" temporary purchasing power"
His policies demoraze labor and destroy its cooperative
spirit They increase the cost of living and make needessy
high money wages necessary.
AS the head of important business says Reempoy
ment and continued prosperity will from anything
but increased low cost production"
This Charles Hook, good business man and humane
employer He says when punitive legislation drafted in
American system of free enterprise hurredy enaced-heed
hope benefit Of the right work and become supporng
wards of the Government"
When business treated this way what there
employment?