Evening star., 1942-02-08

DlSST 10 LHS 6OuTU OJ OOOCTNOIS W
Harris -ElUing Photo.
ness, labor farmers and the professions
In the great task of developing vigorous,
expanding and prosperous society"
The first task, he asserts, is to retain
this 500 900, 100000 after the war.
1--WE must be vigilant," he writes. "lest
this gain slip from our grasp. If we let
the income slide from 100 to 80, 80, 10
billion dollars, we will have to make the
old uphill fight all over again. We must
deliberately set out to hold the new
income level and to push 1t higher as
rapidly as increasing productivity viii
permit"
Expansion Program.
How can this level be maintained and
who will pay the costs9
Almost every one would benefit" Dr.
Hansen says, "by positive governmental
expansionist program looking toward full
employment.
There Is plenty of work to do" he
points out. I'VE need improved manu-
featuring equipment to produce more
and better goods at lower prices. We
need to carry on extensive research in
laboratories Of our great corpoestions, in
our universities, and In Government bu-
reaus to create new products and develop
new processes. We need TO rehabtlitate
and modernize our transportation system
by land, water and air. s4gd
SsVr,- >~-xln,.>l N %tA
techniques Of production, distribution
and transportation; in short, In all those
elements that enter into higher stand
ard of living. We need to rebuild Amer
ica-urban redevelopment projects, rural
rehabilitation, low-cost housing. express
highways, terminal facilities. electrifca-
ton, flood control, reforestation. Many
public developmental projects.open fresh
outlets for private investment.
I'VE need public health program, in
cluding expansion of hospital facilities
We need nutrition program. We need
more adequate provision for old age. We
need higher educational standards in
large sections of our country. We need
a program to improve and extend our
cultural and recreational facilities. We
need an enrichment Of the material and
spiritual resources Of our American way
Of life.
I'VE have seen how 1t is possible to
mobilize the productive capacities Of the
country for war. We can also mobilize
them for peace"
Would Improve Business.
Private business and finance, Dr. Han
sen asserts, would improve rather than
suffer under such an expanionist pro-
gram. According to his figures, corpo-
rate net income between 1925 and l940-
which included the boom and depression
years-averaged only 46 per cent Of the
national income.
At no time during that period did
the national income reach 500, ,000, ,000,-
600, so If corporate profits were 4.6 per
cent Of this income-Dr. Hansen says
they would be higher-the absolute
profits would be larger than the prior
averages If few industries insisted
on exorbitant profits, he explains, de-
mands for wage increases and price de-
creases would be encountered.
''Wage increases and price reductions"
he writes, "are likely to cut across all
firms in an industry, whether they make
profits or not; and wage increases are
likely to spread even to industries which
are not making abnormally large profits.
Thus, the process of encroachment upon
boom-t time profits, if carried too far, may
disrupt the appropriate balance in the
cost-price system"
At no point in his pamphlet does DR..
Hansen set the maximum limit of the
Federal Government debt, which Is likely
to reach 500, ,000, 900 900. His formula is
predicated on . balance" between. the
public debt and the national economy.
President Roosevelt has repeatedly en-
phasized that he is building up "reser-
voir" of public works and social security
plans to be acted upon after the war.
The National Resources Planning
Board. which issued DR.. Hansen's PAM
phlet is the agency through which the
President is studying these possible post
war projects. Before the final printing
of the pamphlet, pre-print edition was
sent to member banks of the Federal
Reserve system and to group of busi-
nessmen, economists and labor leaders
for criticisms and suggestions. DR.. Han
sen, the pamphlet says, made numerous
revisions in the text a. . result Of these
comments. Because Of DR.. Hsnsen's
scholarship and connections, his propo-
sails can be considered oficial 30 far as
study and debate ere concerned.