Evening star. [volume] (Washington, D.C.) 1854-1972, 1944-01-02
Some Problems
OF Prosperity
By OUen L. Scott.

BY ODen L. Scott.
Another prosperous year lies ahead
for almost all groups except those en-
gagged In actual fighting Of the war
and those who live on fixed incomes.
Prosperity will be 20 great that 1t will
tend to intensity the great wartime
scramble to get rich while the getting
Is good.
The riches will be handed out by the
Government in the form Of dollars spent
for war and will not reflect any great in
| genuity or initiative on the part OF
those who receive them. It Is this fact
which accounts for the struggle of or
| ganized groups to use their political
power to force either Congress or the
White House to give little extra slice
Of income for them.
AL in all, the National Government
will spend somewhat more than $780,.
600, 100000 during calendar year 1914.
This spending, directly and indirectly,
will 60 far to create q national income
that will approach $50, 900 900,
which Is to be a record for all time.
! The sight Of so many dollars being
passed out by Government apparently
is too much for big groups In the
| population to stand.
The result is situation in which q
few million Americans will be fighting
or preparing to tight for pay check
| OF $50 to 500 a month, while many
more millions will be struggling at home
to get bigger slice Of income. which
| already Is very much greater than that
| going to the men who risk their lives.
1t is all part Of the great new national
| game OF making sure that you get as
much as the other fellow, or more, II
possible.
| Facts and figures show this:
The farm group in the population,
after paying its expenses, had an over
all net income Of $4,000 00o,0 900 before
the war. In 1943 that income was $12,-
8oo,oo0,o00. or far greater than at any
time in history. In 1914, on the basis
| Of present estimates. farm net income
will be $4,000, 900 900. Yet the farm
bloc In Congress insists that the Amer
lean farm is being penalized and should
be permitted to get bigger slice Of
| income.
Factory workers during the past year,
| on the basis of oficial figures, have had
| 70 per cent more dollars in their pay
envelopes each week than they had
| before the mo fEo y,
are very many more Of these workers.
Even after adjusting for increased
living costs, the purchasing power Of
factory workers is 43 per cent more than
in prewar. Yet workers strike in war
industries and in nonwar industries to
get more.
Corporation net profits, even after
high wartime taxes, are estimated Of
flcially to be $500, 900 900. That is
more than twice the net profits of 1889
after the taxes of that year had been
paid and it Is the highest level in all
corporation history. Nonetheless, a very
strong effort is being made to emas-
culate the law designed to take lex
cessive' profits out Of war business by
renegotiating war contracts.
! 1t is true that dividend receivers
are little if any better of than they
were before the war. They are getting
about $4,50o. 900 900 a year now and re-
ceived about that amount in 1899. Per-
sons who live on interest are not any
better OF either. They probably are
not so well of, owing to higher living
costs and higher personal taxes. How
ever, Congress has favored persons who
have large income from sale of stocks
and bonds and other property held
more than six months These persons
pay tax on those capital gains of only
Is per cent, regardless of how great the
gain.
Persons with large incomes from
other than capital gains have had
their wartime taxes increased very
greatly. The situation is such that no
individual in the Nation, whose income
Is derived from salary, dividends and
interest, will have more than $4,000
remaining in 1914 after paying taxes.
Yet there is some compensation for
this group In the fact that It's estate
will be benefited by the abatement Of
rs per cent Of a full years taxes as q
means Of making tax payment current.
This leaves the white collar group
and the group of soldiers and sailors.
White collar workers have had some
income increase as a class, but they
are not in on the great scramble for
advantage and are less well of than
before the war, owing to higher taxes
and higher living costs. The men in
armed services are missing out on the
great get-rich-quick struggle that is
going on while they are away. They
will come back in time to get caught
in the backwash.
Every indication is that this country
is laying the basis for a great national
| postwar headache. Dollars are being
piled up in quantities that readily can
create q postwar price imitation. At
the same time, group antagonisms are
being intensified by the struggle Of each
organized group to benefit itself at the
expense of some other group. The re-
suit is that political assures are being
deepened in the midst Of war, adding
to the political complications that win
follow the war.
President Roosevelt says that he will
talk about all Of this in his forthcoming
address to Congress. Yet Mr.. Roosevelt
has played part in generating todays
| scramble nv giving ground n con,a i,hor