Evening star., 1938-12-02

10000 each and account for about
1913 per cent of the total employees.
"Our failure to maintain the past
rate Of advance in the standard Of
living is certainly not due to any
lack of management ability, capital,
labor or natural resources DR..
Thorp said at the outset of his testi-
mony. There is no such simple
| answer.
mo analysis would be necessary II
this were a simple machine with
many like parts. The fact is that 1t
is exceedingly complicated, with units
varying from the roadside stand run
by the farmers daughter to the
giant railway system.
Variations appear because Of diff
ferences in product, process, location,
market and habits and practices
which have become the custom i'll
this or that industry or trade. Fur
thermore, these basic sources of diff
ference within the structure are con-
tinually changing. --.
"As we have carried specialize
of dependence Of the parts upon
each other has increased. Lack Of
adjustment in individual parts Of
the economy to changing conditions
can, therefore, affect areas far wider
than that of the original difficulty
and even spoil the rhythm Of the
whole machine"
A statistical picture was presented
yesterday by DR.. Lubin of the cost
of nine years Of depression.
The Governments foremost statis-
tician recently conducted survey
of 800, 900 non-relief families in vary
ing income classiflcations.
Pointing out that American in
dustry is geared to large-scale pro-
duction and consequently needs
markets capable of consuming the
output Of mass production methods,
DR.. Lubin said the survey served
as test of approximately 9,500, 900
wage-earning families in the United
States who received no direct or
work relief in IL months of 1885
OF this group, he continued, about
$500 900 had incomes Of $3.50 or
less per year.
BY contrasting the expenditures
of oss-section of this group with
another from the $500 level, the
witness summarized what might be
expected to happen to the national
economy If a way can be found to
increase the income Of the lower
classification by about 81 per day.
Following are the estimated in
creased expenditures:
10000 900 in food.
$416, 1000 900 in clothing.
$613,0O0 900 in housing.
$213,O00, 900 in fuel, light and re-
frigeration.
1924, 900 900 in house furnishings
and equipment.
1886 ,O00, 900 in transportation (au-
tomobiles).
$4,000 900 in personal care"
1924 900, 900 in recreation.
$208, ,000, 900 in medical care.
Only . Limited Group.
1T should be borne in mind" DR..
Lubin concluded, that these esti-
mates cover the effects Of q change
in the incomes Of only q limited
group Of our population. They cover
only 100000 of the Is, 900 900 non
relief families. Nor do they include
the 100000 single individuals
whose annual income aggregates
some $11 500 000, 900, or the 4,500, 900
families that received some form of
direct or work relief from private or
public agencies in the IL months cov-
cred.
"The outline of the demands that
would be made upon American in
dustry following even q moderate
increase In the incomes Of all fam
lilies and single individuals now re-
ceiving less than $2,50O would, in
fact, be almost unbelievable. Sur
plus capacity would disappear in the
vast majority Of pur industries. In
many of therp present capacity
would run far short of the demands
Of our population"