The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1939-1949, 1940-04-11
Law Of Supply and Demand One
Which Has Never Been Repealed

it was decided to try to reduce tn
surplus by blowing under ever,
third row of CO. on, to kill off mil
lions of little pigs, to plant les
| wheat, less corn, etc. AS a matte.
of fact, this actually led to a lowe
standard of living-increased thu
unemployed and plunged the ma.
! ton deeper into the repression.
| BY blowing under one-third o.
the cotton there was correspond.
ing reduction in the workers EN-.
ployed in the cotton fields and fac.
tories. BY growing less corn, wheat
and little pigs it is true that the
growers have less to sell; but it is
also true that the income of the
workers has been reduced in exact.
ly the same proportion and so we
still have surplus. Also a system
of codes was adopted and the law
to control monopoly and prevent
price agreements was suspended
the principle effect of this was to
allow the big monopolistic concerns
to control the price of raw materials
as well as the price of the finished
products. Farmers are now paid
to produce less. This is supposed to
help the farmer and increase his
purchasing power, but to the extent
that this is paid by taxes levied on
the consumer, it does not increase
the purchasing power of the whole
people by one penney.
While if they are paid with bor-
roWed money for producing less, it
Is placing mortgage on future pro-
duction which future generations
will pay in the form of a lower
standard of living.
It seems to be the desire now to
increase the national income to 80
billion dollars, or more, without in
creasing production. Now this can
be done in one way and that is by
increasing wages and prices. Let's
see where this will get us.
Let us assume that the 40 million
families of the nation have an av-
erage income of $500 per year or
$4,000, 100000 income for the ma
ton. Now if we could increase the
wages and prices so that the aver
age income per family is $4,000. 90
per year we will have a national in
come of 30 billions, but the average
income of 100000 will buy no more
of the necessities and luxuries of
life than the present $500 income
will buy.
Then again some people prefer to
believe that hard times are caused
by the high cost of distribution. It
is absolutely necessary that a great
army of men and women be en-
plOyed in this work of preparing the
products of the farm, forests, the
rivers and the ocean for the use OF
the consumer; and while the most
may be too high, the methods en-
ployed have certainly been q big
factor in the rapid rise of the stand
ard of living which is enjoyed by
the great majority of our nation.
There is a law, which, If it were
allowed free play, unfettered by Of
ficialdom or Monopoly, that would |
keep the balance between produc- !
lion and consumption on fairly
even keel. It is not perfect law,
but it is more nearly perfect than
any that has so far been conceived
oy the mind of man, and that is
he natural law of supply and de-
nand.
AS Paul Findlay-a noted econo-
mist says, "high prices are the
cure for high prices, and low prices
ire the cure for low prices" This
S true saying, because when there
S surplus, priceS-if not inter-
erred with by monopoly or other
wise, will 60 down so low that more
will be bought and used than there
s being produced and SO we have
! gradual rise in prices.
BY the same token-if prices get
90 high, there will be less bought
nd prices will naturally come down.
Therefore it would seem surplus
It commodities is most generally
'aused by Monopolistic high prices,
nd until we can learn to keep the
,rices OF all production in line with
he national income, we will con-
lnue to nave occasional depreSsiOnS.
However, if we allow no official
with production and
do away with monopoly
n every manner, shape and form, I
m quite sure that any future de-
reSSion will be very mild in com.
arlSon with what we have gone ! ,
through in the last ten years.
In conclusion, I want to quote an | .
rtlcle by Dale Strong, editor of New ,