Askov American., 1942-03-26

Plan to learn how groundless are
their fears.
Under the Townsend Plan taxes
collected in the United States would
be less than they are now because of
the removal of many costly institu-
tions now supported by public funds.
The poor fund and the public dole
would be largely eliminated. Fed
eral and state contributions to old
age charity pensions $500 mil
lions yearly-would be eliminated.
The payment of at least $500 millions
a, year now going to persons past 60
on WPA and other relief rolls would
be eliminated. And a future per
cent tax on payrolls involved in the
Social Security Act would be elm
mated. AS the effect of the Town.
send Plan upon industry made itself
felt, the huge expense involved in
keeping alive millions of unemployed
able bodied citizens would rapidly
be wiped out. And with the reduction
in unemployment would naturally
go the various other expenses in
volved in stop-gap depression meth
DDS.
The Townsend Plan would do more
than reduce taxes. It would provide
a system for preventing the appear
ance in the future of huge public
debts. For the Townsend Plan in
PRODUCES 'Pay as you 60" method
of taxation.
The Townsend Plan and the National
Economy.
The restoration of purchasing pow
er to masses of people will solve
Americas plight of poverty in the
midst of plenty. The Townsend Plan
would supply this purchasing power
by means of an old-age retirement
annuity. Ten million senior citizens
would receive this annuity each
month. Each month they would
spend it, thereby creating for business
steady market. The manufacturer
and the retailer would know that they
have this huge permanent market,
and so they would begin to produce
and store the goods necessary to keep
it supplied. They would need to hire
labor, and unemployment would dim
inish. AS the unemployed secured
jobs, they too would obtain purchas-
ing power. More goods would turn
over. Still more goods would be
needed. The economic system would
once again function properly. Amer
lea would become in reality for every
citizen a "land of plenty"
All this would inevitably result
from steady market guaranteed to
business by ten million senior citi-
ZenS with a tremendous purchasing
power renewed regularly each month,
all of whom will be under obligation
to spend all of their pensions within
80 days.
The Effect Upon Industry of A Per-
manent Market.
Working at full capacity, industry
would absorb many of the unem-
ployed and provide the nation with
a splendid supply of much needed
goods. But industry will not work
at full capacity because it lacks a
market for its goods. With the Town
send Plan in full effect there would
be tremendous monthly market.
The question arises: Would this be a
permanent market?
The heart of the Townsend Plan
lies in the provision that calls for
ENFORCED SPENDING of the an
nuity given each month to the senior
citizens. The money paid these citi-
zens each month must be spent by
them within thirty days, so this
money cannot remain idle. 1t can
not lie stagnant either in homes or
in banks. It must flow in a steady
stream into trade channels. And this
stream is a constant and unending
one, for it is replenished at its source
by the same, or greater, amounts each
month.
So there would be a steady demand
upon industry for goods, this demand
would compel industrial expansion.
And this expansion would be con-
tinuous until industry was utilizing
its fullest capacity because the de-
mand for goods created by the EN-
FORCED SPENDING each month of
so much money would be continuous.
Once having reached full capacity,
industry would continue to utilize
all its resources because its mar
ket would be a permanent market,
market that would not disappear.
With the utilization of industry's full
resources and the installation of a
proper means of distribution, the
paradox of poverty in the midst of
plenty will end