Evening star., 1938-09-11
Political Problem in
Low Incomes
By OVEN L. SCOTT.

QenC ROOSEVELT OBVIOUSLY mas mace up
his mind to keep that problem constantly
before the people of the country both as
a prod to Congress and as means of
making political capital. Several recent
developments and some more to come
bear out that statement.
There first was the report to tho
President on the economic conditions of
the South. This report. emphasized the
human and the material resources of the
Southern States in contrast with the un-
derlying economic poverty of a large part
of its population.
Now there is the report of the National
Resources Committee showing the way
the national income is divided among the
people of the country. The story that
this report tells is one that is to be
reiterated constantly by President Roose-
welt in months to come.
Before the story of income becomes a
bit stale. the National Economic Com
mittee will be busy with its endeavor to
provide the people of the Nation with a
closeup view of the way the economic
machinery, designed to produce income,
actually works and fails to work.
Xxx *
The result of all of this is hardly likely
to contribute to the peace of mind of
Congressman and others who yearn for
return to the good old days when busi-
ness and finance pretty much ran them
selves, leaving Government to be thought
OF only at tax-paying time.
At the moment, the report OF the Ma
tional Resources Committee on Consumer
Incomes provides the most food for
thought. The committee report dis
hot bnro ty1t Haff
raw materials and in human and me-
chanical resources, two-thirds of the
families must live on less than 81, 500 a
year and one-third get along on less than
$500 year. In fact, the average income
of the bottom third of the families and
individuals is found to have been SAT- in
the fiscal year 1885,
A good deal of political and economic
dynamite is wrapped up in those basic
findings Of the Resources Committee.
Revealed is the reported fact that, out
Of 100000 families. in this country,
about 5000 900 are perilously close to the
starvation line, while 100000 more
families-living on less than 81 500 year
Are skirting the ragged edge of poverty.
Another 100000 get along fairly we'll on
incomes ranging between $500 and
$4,000 year. A million and one-half
more live on between $1,000 and $4,000,
while only 100000 come in the class be-
tween 5000 and $4,000.
At the top are 283,000 families with
more than $4,000 of income annually.
These families had about as much total
income as the combined income OF TO-
100000 families at the bottom of the
scale.
Mordecai Ezekiel, one of the original
designers of the New Deal and economic
adviser to the Secretary of Agriculture,
insists that the economic machinery of
this country, if reorganized a bit, could
be operated efficiently enough to provide
an income of 81 500 year for all families.
Today nine out of ten American families
live on less than that amount
What President Roosevelt has done is
to sense the political power that resides
in the low-incone groups OF this country
once those groups are convinced that
their lot can be bettered and once they
become aware of the strength in their
numbers.
II any political movement can create a
political consciousness on a class basis
among the masses, democracy will do the
rest to bring about sweeping redistribu-
ton of income.
economists say that this redistribution
should come about, not by taking from
those with the most income and giving
TO those with the least on basis of equal
division but rather by making those ad-
Justments in the economic machinery
that Will permit creation of vastly more
income Then the rich could still be
rich, but the poor wouldn't necessarily
be so poor as the Governments studies
suggest that they are.
How to produce those necessary adjuet-
ments IN the economic machine is the big
problem.
President Roosevelt thinks that his
New Deal is the answer. Others vio-
lently disagree, contending that the New
Deal is little more than temporary spree
based upon borrowed money. New Deal
ers then contend that the borrowed
money phase is made necessary by the
refusal OF groups that control the eco
nomlc and financial machinery of the
country to make any important conces-
slons that will permit the effective opera
IAoll VI Glldt machinery.
All agree that the objective should be
full employment for the productives
equipment of the country, both in the
form of labor and in the form of ma
chinery.
In the midst of the argument about
method, there are signs that the latent
power Of the low-income groups is begin
ming to show itself.
II r.
The rapidly spreading demand for
much more liberal old-age pensions than
any now provided is one such sign. In
dustry's policy of junking older workers
is adding immensely to the pension senti-
ment. That sentiment now has reached
point where congressional leaders are
forced to use every strategem to keep the
issue OF liberal pensions from a vote. A
vote would mean almost certain approval
OF plan that would quickly run the pen
sion cost to point above $4,000, 900 900 a
year.
Farmers are already down on the
treasury books for subsidies in one form
or another totaling more than a billion
dollars a year. The trend of these sub
sides is higher and almost any demand
that farmers make is irresistible to Con-
gress. Outright price fixing is in sight.
y 4 X
The unemployed fortunate enough to
get places on w. P. A. already have OBJ
tanned for themselves an income higher
than the average of those families in
the bottom third of the population. An
a a rrr