The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-17
SAVING VIEWED
BETTER POLICY
To END SLUMP
Heavy Federal Expenditures
Fail to Cut Idle, Econo-
miStS Say.
BY JULES BACKMAN AND
A. L. JACKSON

Editors. Economic Statistics, Inc.
A reader asks, Don't you think
that less emphasis on spending and
more on saving might help US get
out of the depreSsion?" This point
is we'll taken. One of the most in
teresting phenomena during the last
year and a half has been the almost
complete absence of any suggestions
from official quarters that hard
work, thrift and saving would be an
important aid in getting us we'll on
the way to recovery.
1t is not often realized that we
entered this depression on the crest
of wave of excessive creation of
debt. We spent our way in and
now it is suggested that We spend
our way out
In 1927 to 1929 the funds that
were spent were obtained through
the creatio, of private debts. In
1888 to 1888 the funds have been
obtained through the creation Of
public debt.
Considered Illogical
Does it not seem illogical to ex-
pect us to get out of our difficulties
by taking the same treatment that
caused these difficulties to arise?
Will more green apples cure the
stomach ache caused by eating too
many green apples? The emphasis
should be upon the reduction Of
debt. Instead of this, the emphasis
is on additional creation of debt.
The Presidents budget message
is a'recent example of this spend
your way to prosperity" program.
The spenders conveniently forget
that some one must pay and that
this payment can only be made
through the imposition of high taxes
or inflatioary measures. BY failing
to provide for new taxes, the true
nature of the spending program Is
kept hidden.
RedistributeS Wealth
From whom will these funds be
obtained? They must be secured
from some one. That some one is
the person who has funds. In other
words, the spending program really
is a means of redistributing wealth.
However, rather than decrease the
purchasing power Of those who
have" by taxing them now, the Gov
eminent continues to borrow new
funds.
At some future time the funds
must be repaid. If they are paid
through heavier taxes, it means that
we are now spending future moneys
which, in turn, indicates that fu-
ture purchasing power will be re-
duced.
The Treasury recently has pointed
out that the per capita debt of this
country is smaller than that of Ger
tain other countries, notably Great
Britain. Since this is the case, some
people argue that the increases in
debt can take place safely and can
be SUP ported by the people.
Heavily Taxed Now
What is overlooked is the fact
that England is one of the heaviest
taxed countries in the world. If one
believes that this is conducive to a
higher standard of living, or that
because some one else owes money,
that we should borrow in order to
keep up with them, all well and
good. We can not see it that way.
The best indication Of the futility
of these spending policies has been
given during the last year. Unem-
ployment has not decreased to any
extent. The number of people on
relief is now larger than it was a
year ago. Since these spending poll
cies have not helped solve the situa-
ton, why not, as this reader asks,
give saving Z chance?