The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1935-10-23
SCARCITY OR ABUNDANCE?


The Brookings Institution, after three
wears Of study of depression conditions in
this country, has reported through the
head of the institution, Dr.. Harold t.
Moulton, that depresSions can be prevent
ed by greater mass production and more
effective distribution. 1t is to be done, ac'
cording to the views of Dr.. MoultOn, D2
passing along to all the people the benefits
of Increased human and mechanical etti-
cheney in the form Of decreased commodity
prices.
DR.. Moulton is emphatic in his belief
that the mere redistribution of the exist
ing income of society will not accomplish
the desired results, for the. very simple
reason that the existing income is not large
enough for the purpose. Proof is to be
found in the fact that the average income
in the most prosperous year in the history
OF this country was only S6S5; and if the
incomes of corporation officials and fronl
all investments had been added to this sum,
it would have been increased by an average
Of only $40.
The paramount requirement for attain
ing the desired end is to increase the total
amount OF income to be divided, according
to ID, view of the Brookings economist,
Thu statement is based on common sense
and economic laws, but it should be accom-
panied by the explanation that it is true
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or services which the people need and can
use logically and profitably. Income can
be increased by artificial stimulation OF
commodity prices, by artificial forcing up
necessarily mean a greater total income
for division among all the people. Income
is measured Tor wage earners and Salaried
workers by the purchasing power of the
dollars they received. Consequently, the
prosperity Of the country is to be deter
mined by the total income that exists for
distribution only when that income is meas
ured in terms of goods and commodities OF
services that are essential to the needs and
welfare of the people.
Ii the dollar day wage of working
man will buy as much of the things he
needs as q two dollar wage under different
conditions, how will his condition be i'm,
proved by simply receiving and spending
two dollars?
Proof Of the economic sOundness of thi>
reasoning is found in the cOuntry's expert
ence with two years of NRA At the enc
of the period it was found that employ
ment had increased five per cent, wage
had increased ten per cent, and produc
ton was exactly the same as when tn
NRA system was inaugurated. What Wa
the practical result of the experiment, TO
wage earners and all other classes of cit:
zenS? Merely an artificial stimulation @
business and raising Of prices which offse
all benefits arising from the ten per cent
increase in wages Of the working man ant
an economic blow dealt to millions who's
incomes did not increase during the period
DIR. MoultOn contends for that econOmi
philosophy based on the principle that thi
country should accept all the advantage
offered by increased human and mechan
cal efficiency and should use all the instrr
ments of progress to produce more an
more of the things necessary for htma
well-being and happiness, thus increasin
the sum total of income for Distribute
among all the people-income being meas
ured in terms of commodities and service
which are necessary to human welfare an
progress.
This is the economic philosophy Of abr
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