The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1936-07-13
NEWSPAPERS OPINIONS
THE NATIONAL INCOME


The estimate of Secretary Roper is that the ma,
toinal income produced rose to So billions IN 1850
and may go to SO billions in 1886.
In an April address it is remembered that Presi-
dent Roosevelt estimated that it would be IS bill
lions in 1886. .............
The national income produced annually is prob
ably the most comprehensive gauge of the nations
economic activity.
National income produced" is the total value OF
the goods and services put out by the various en-
terprises of the nation, including governmental
units less payments to other enterprises for goods
and services used in production.
1t may be considered also as the total of cash OF
goods received by individuals, including investors
(realzed income) plus net business savings or MI
nus net business losses, the case may be IN any
particular year.
The year 1926 might be taken as good base
from which to compare changes in the postwar
national income, because the postwar depression
was over and the hectic bull stock market had not
yet arrived.
The national income produced in 1926 is estl-
mated at around 70 billion dollars. In 1929 1t rose
to a postwar high of 81 billions, and in 1882 1t
fell to a depression low of 40 billions.
In comparing the changes in national income
year by year. two corrective factors must be borne
in mind. One is the growth in population, which
is almost 10 per cent larger now than in 1926. In
other words, if the national income should get back
10 the 1926 level, it would still be about 10 per
cent lower per capita The second correction should
be for the change in the value of the dollar, with
wholesale prices now about 20 per cent lower than
in 1925. ~--' ..-....
The estimate of Secretary Roper would seem on
the surface to bear out the original theory OF eX-
cessive federal government spending on the ground
that in this way the national income would become
restored.
We recall conversation with prominent cot
ton manufacturer concerning this point shortly al
ter the administration got its spending program I'M
der way and rather to surprise, this practlcal
man of affairs was disposed to justify the expert
ment on the ground that if the government could
by spending 10 billion dollars raise the national IN
come from the point at which it then was back to
the point of high which was registered in 1929, it
would be considered good investment by business
men.
That would mean in his view, that if the govern
ment by spending this 10 billion could bring the
national income from 40 billions to 81 billions the
vestment to this observation-disclosures mind
When Secretary Roper's estimates are broken
down, however, it is evident that such dividends
in the form of an increased national income have
been declared.
The New Deal public debt amounts to net of
13 billion dollars. -...
By means of the expenditure of these IL billion
dollars the national income has been raised from
AZ billion in 1888 to what Mr.. Roper estimates to
be SO billions in 1886.
In other words, by the expenditure of Is billion,
the national income has been raised by only 16
billion, net increase of three billion.
There is still vast distance, therefore, to go
before the federal expenditures designed to bring
the national income back to its high will have at
tanned to that achievement-to be exact, the diff
ference between the So billions estimated for 1886
and the 81 billions reached in 1929.-Charlotte
Observer.