The Washington times., 1935-12-19
u. 5. HOUSING
PLAN CALLED
WASTE
BY LEWIS HANEY
Professor of Economics, New York
University


In yesterdays front page news
was the statement made by the
President at one of his press con-
ferences" that he will ask Con.
gress to vote half a billion dollars
for PWA next year. This is sup
posed to throw some light on the
forthcoming budget.
At first glance it would seem
to be a good feature that he pro-
poses to allow Congress to appro-
pirate the various sums for spe-
cific projects, instead of having
Congress appropriate a lump sum
and then dealing it out himself.
On second thought, however,
this does not mean so much, since
most of the money will be required
for projects already decided upon
by himself and already under way.
Asked if this half billion item
would cover his housing projects"
he refused to answer. We may,
therefore, infer it does not.
This suggests one of the serious
questions now before us. There
are great possibilities in the way
of building expansion. Bett ter
houses are in demand by grow
ing number Of separate families,
and, if this demand can be sup
piled in a businesslike way by pri-
vate enterprise, it may do much
to encourage sustained industrial
recovery and employment.
But the Roosevelt AdminiStra-
ton is extending its boondoggling
tendencies into the building line,
and this threatens to check the
recovery that might otherwise be
made. AS Mr.. Roosevelt has
said, he considers progress"
more important than recovery"
For example, a DR.. Mercer G.
Evans, director of the Labor
Relations Division of the RIA
(Resettlement Administration re-
Gently made a speech in Atlanta
describing this sort of thing. He
told of four projects" located
near strongly unionized cities,
which have two main purposes:
One is to give union labor
cheap modern homes and
vegetable gardens.
The other is to pay union
labor high wages.
These two purposes, however,
don't mix. How can you build
a house cheaply. and at the
same time pay high wages and
employ much labor? How can
you have low rents, and at the
same time have houses located
near enough to city factories to
allow laborers to get to work
cheaply?
These projects" are to pro-
vide recreation facilities, such as
parks and Fairgrounds. Who
pays for that? They are to
have green belts" of open space.
Who pays for that?
They are to have spaces, as
the good doctor says, for the
laborers who want to maintain
gardens, either as a hobby, for
exercise %, or for lifting their
standard of living" (That sounds
like more abundant leisure and
energy than usually goes with
hard work and full employment
Evidently he emissions high
wage laborers building cheap
houses and exercising in green
spaces" Obviously, the govern
ment pays.
This is not business. 1t is
waste. 1t means public debt.
1t is no wonder, therefore, that
we find 16 different trades, in
Guiding paint, brick, lime, ETC.,
writing letters to Mr.. Roosevelt
IN which they demand that he
make his intentions clear. Here
is what they say:
CAGA VIC AAOW Tie eALent
to which the government itself
proposes to go into the housing
business, private activities will
be bound to proceed hesitantIy
and with utmost caution. Thus,
without intent or desire, 1t puts
a brake upon industrial recOv-
cry"
They go on to say that hous-
ing shortage exists, and add:
1--WE respectfully submit to
you that the announcement by
the Government of a clear.cut,
understandable housing program
will permit private industry to
proceed"
This would enable them to get
private funds, buy materials at
reasonable prices and give steady
employment to labor.
AS long as the Roosevelt Admin.
istration clings to these boondog-
Cling progress" projects we will
have not only waste and public
debt, but we will have private en-
terprise handicapped.
The way to solve the unemploy-
ment problem is to make it prof
liable for employers to employ.
Business Found Best