Montana labor news., 1938-08-25
Is II Misunderstanding
Or Attempt 10 MisIead

In an article in the July issue of
the american Federationist," Prof.
Diamond says, in part, that the old
age problem has become involved
with other and frequently non
relevant issues. The grand illustra-
ton of such confusion of thought is
to be found in the Townsend pro-
gram. For here, at one stroke, a
solution of the old age problem is to
be attained along with the redistri-
button of wealth, sustained mass
purchasing power, and assured per-
petual prosperity. Would that it
might be so! Unhappily national
bankruptcy alone could follow upon
a transfer of half the national in
come to that group which has con-
tributed least of all to its produc-
ton"
The last sentence of the above
quotation would convince the most
casual student of the Townsend plan
that the gentleman has devoted no
time to the study of the plan he is
c%riticizing, but then, l don't suppose
one can expect an Economist to
study. Mr.. w. D. Jameson, in his
syndicated column, "The Window
Seat" once said, 81 don't understand
Economists but that makes us even
as they don't understand me-" and /
can subscribe to that statement.
Let us analyze Prof. Diamonds
statement; he says: that the old age
problem has become involved with
other and frequently non-relevant
issues" Is it non-relevant to attempt
to insure our economic recovery and
perpetual prosperity with the we'll
being of our aged? Is there any
reason why the elders of our nation
should not be used to increase en-
ployment and stabilize labor by in
~.creasing spending power? That is
the basis of the Townsend plan; the
forced spending Of 5000 a month by
every person over the age of 60, the
forcing into the trade channels of
approximately one and a half bill
lions of dollars each month. Is it
non-relevant to abolish the poor
houses, the public and private chart
ties and the distress of the aged if
we can by SO doing insure the re-
covery we have been trying for the
last ten years to attain?
The Professor says, For here, at
one stroke, a solution of the old age
problem is to be attained along with
the redistribution of wealth, sus-
tanned purchasing power, and as
sured perpetual prosperity" and he
adds, would that it might be so.'
l am wondering how sincere he is in
that wish. His statement is an exact
statement of the amis and objects
of the Townsend plan and, to go a
little further, the plan would finance
itself.
He continues, 'Unhappily national
bankruptcy alone could follow upon
a transfer of half the national in
come to that group which has con
tributed least of all to its produc-
ton" One would question the pos
sibility of crowding so much mis-
information in so few words. Who
has contributed more to the present
wealth of our country than those
who are so years of age and over?
Who were the pioneers and where
are they now? Either passed or or
are in the class of the go and over.
Where does the gentleman get his
information that those over go have
contributed least to the present
wealth of our country? What basis
is there for assuming that we would
transfer one-half of the national in
come to that group?
In 1929 our national income was
83 billion dollars which gradually
decreased until in 1882 it was 80
billion, since that year it has been
increasing until we now have be-
tween 70 and rs billion. We lost in
the first five years of the depression
1877 billion, more than one-third. This
did not bankrupt the nation. Since
1880 we have spent more on relief
and attempts to aid recovery than il