Evening star., 1935-04-12
VAST ECONOMIC
CHANGES URGED
|. TO END POVERTY
Brisk Debate on Issues
Features Chemical So
ciety Meeting.
DR.. EZEKIEL PROPOSES
PEACE MOBILIZATION
Production Must Be Expanded in
Proper Balance, Says Agricul.
ture Department Expert.

IuIc OcpdIIncHt GApc1t'
! Far-reaching readjustments in the
economic system to abolish poverty
were urged before the Chemical Soci-
ETY. of Washington last night by DR..
Mordecai Ezekiel, economic adviser to
the Department of Agriculture, and
| DR.. ISador Lubin, commissioner of
labor statistics.
At the same time DR.. Harold G.
Moulton Of the Brookings Institution
saw the way out Of the present world
| depression in the free flow of world
trade and the economists. were en-
gagged in a brisk debate with William
j. Hale, chemical manufacturer.
DR.. Ezekiel defended the crop reduc-
ton programs Of the Agriculture Ad-
justment Administration as temporary
measures necessary to mesh the gears
of agriculture with those of indus
try, but which already have accom-
plished about all that is possible to
! increase farm income. DR.. Ezekiel pro-
| posed a mobilization for peace" as
thorough and sincere as a mobiliza-
ton for war as the way out of the
Nations present economic quagmire,
with both industry and agriculture
cooperating in a socially planned pro-
gram.
Production Expansion.
! "This Nation" said DR.. Ezekiel, has
the productive capacities in men, ma
terials and knowledge to double our
present production and to abolish
poverty. But that can be done only
If we expand production in the proper
balance. 1t was lack of balanced pro-
duction that made the depression so
severe Farmers followed the laws of
competitive economics and reduced
prices so that they could sell their
| products and so, on the whole. did
the factories manufacturing food and
clothing. Purely industrial manufac-
turers, on the contrary generally cut
down production rather than reduce
prices"
Unless there had been this plough
ing under" by industry. Dr. Ezekiel
said. crop reduction never would have
been suggested for farmers. The ex-
tent of this industrial ploughing under
by 1882, DR.. Ezekiel said was approx
imately as follows: Cement. SO per
cent; lumber, 70 per cent; automo-
biles, "A per cent: iron and steel, rs
per cent; building construction. 50
per cent. In industries based direct
ly on agriculture, on the other hand.
the reduction of output between 1929
and 1882 was as follows: Food, 10
per cent; textiles. 20 per cent; farm
production. S per cent.
The consequence was heavy city
unemployment and a falling market
for farm products, so the purchasing
from $4,000, ,000, 900 in 1929 to $780,
000, 900 In 1882. The crop reduction
program was an effort to restore
something of this lost balance.
Partial Step to Recovery.
But" said DR.. Ezekiel. reduction
of farm output can be only tempo
rary and partial step to recovery.
Greatly increased industrial produc-
ton is the next requirement. Indus
try has not yet regained half the loss
from 1929 to 1882. Farm production
must be increased in step with grow
ing industrial activity, as the expand
ing incomes Of consumers justify.
This cannot be done by giving each
business or labor group what it wants.
Each tries to grab as much income as
possible, regardless of whether it
produces more to receive more. If a
single group gets more for doing less,
1t may gain while others lose. If all
the groups try to get more for doing
| less all are bound to lose
THAT is why so many of the things
that pressure groups get done in their
own interests are so harmful to the
general welfare. Each extortionate
tariff increase raises income of a small
group of producers, but decreases the
welfare of consumers and exporters,
who number far more. Each monopolis-
tic increase of price or maintenance
of price above the general level may
profit group, but holds down employ
ment and decreases production.
There are many vested interests
who believe in their historic right to
profit from the poverty of others. Many
producers do not believe that con-
sumers are entitled to know what they
buy. Some private industries work for
maximum production. but many others
believe that the prime object of busi-
ness is to make mOney-not to make
goods and services. 1t is this antiquated
view that is making progress SO slow.
I'VE have, without question, all the
possibilities to abolish poverty and
want. All we lack is the ability and
willingness to throw off outmoded
habits of thought. We still are con-
trolled by those who prefer rugged
individualism."
5,750,O00 Unemployed.
DR.. Lubin, giving the latest corrected
figures for unemployment at ap-
proximately 5,750, 900, pointed out that
at the height of American prosperity,
the mean income per family was only
$500. This meant, for example, that
the average family could justifiably
pay only $375 year for rent. Yet.
DR.. Lubin said, the material and labor
resources of America would have
justified much better living quarters
than could have been obtained for
less than $50 month.
One way out, he said, was for hous-
ing to become a function of society.
paid for by taxation. Long ago. ne
pointed out, education underwent
much the same process. It became
obvious that the degree Of education
to which the average family was en-
titled was far too expensive for the
average family to provide. So society
| had to take over the schools.
The peak income of the American
people, he said, probably was made
quate to provide the medical services
| and facilities, so vastly expanded by
science, which it was socially desirable
| that the average family should have.
The way out, he indicated. may be
medical service supported by taxation.
II see no way of maintaining the