Detroit evening times. (Detroit, Mich) 1921-1958, 1941-05-23
Bri+on Sees
Boom in u. S.
After War
Thinks World Will Buy
From Us-if Nazis Lose
BY PAUL MALLON


The Anglo-New Deal economic
oracle. John Maynard Keynes.
has kept his lips sealed during
his American visit, emitting not
even the usual smoke therefrom.
But at a matinee luncheon
privately rendered him by the
Federal Reserve Board here, he
contributed several new
thoughts.
Among them:
Business will be even better in
the United States for two or
three years after the war than
il is in the present defense boom.
Defeatism is worse in Wash
ington than in London or New
York.
Elsewhere, the Socrates of the
spending school, who usually
says things that the New Deal
ers will be doing next. expressed
the notion that government con-
troll of. rents, public utilities
charges and wages presumably
affixed to already evident price
controls) would prevent infla-
ton.
The New Dealers all want 10
avoid runaway initiation. but so
far have not moved TO restrict
rents and wages, although they
have utilities fairly we'll within
their grasp through normal reg
ulatory controls.
TliE Keynes idea that business
here will grow after the war
contradicts the general aSsump-
ton of collapse when defense
production stops. His reasoning
apparently is that consumer
buying will be so restricted by
rationing and restraints on pro-
duction during the defense boom
that pentup demand for such
things as automobiles. refrigera-
tors. etc. Will flood the country
when peace comes.
Also the United States will he
the only nation in the world
whose productive capacity for
consumers goods has not been
bombed or otherwise injured. He
thinks the world will be buying
from us, an assumption natu-
rally based on expectation of a
British victory.
This seems 10 belle the neces-
sity for a repayment OF de
ferred pay (another Keynes
plan outlined) or the vast pub
lie works program which the
New Deal is contriving 10 take
up the postwar slack.
Apparently the New Dealers
would defer these spending arm
shots until the peace buying
boom had spent itself. (Mr.
Keynes did not say what the
world would use for money TO
buy from us.)
nEFEATISM in Washington is
~ admitted Every one here
thinks the British have done
far better than could have been
expected after Dunkirk. Nearly
every one gives the British
better than an even chance to
repel invasion.
But the British themselves
are responsible for the defeat
ism beyond these two points.
They have spread stories TO in
spire American aid, painted
black pictures of their food sup
ply situation, and their ability
10 stand on the seas. etc.
1t is only natural. further
more. that London would be less
defeatist. because London is
less realistic The British char
acter is founded on a quiet as
su m ption Of superiority and
ability 10 lick anybody. Or a
better way Of putting il is to
say they never know when they
are licked. and therefore they
are never licked.
II EYNES' confidence that in
IA flation can be avoided is not
so generally shared. Primarily
he assumes the control of wages.
something this government has
not assumed. II cannot even
control strikes. John Lewis.
who may know better than the
economists, is predicting inha-
tom
Keynes also assumes price
controls. something his own
British government has not been
able 10 accomplish. The cost of
living in Britain has gone up
from an average of 96.i in 1899
to 1901 in February this year,
an increase of 25 per cent.
The government itself, fur
thermore, is breaking the pres
ent price levels through h G
new unprecedentedly high tax
bill on business and commodi-
ties.
II is also forcing up the cost
of living in a minor way by the
policy of the agriculture de-
partment, decreeing hig h r
prices for eggs. pork products.
etc. and Congress is forcing IL
I'm On a grand scale with the