The Waterbury Democrat., 1944-09-11

tee for Economic Development an organization of business men inter" ested in maintaining the American free enterprise system, admitting that the rule of dog eat dog may not be so hot for the postwar period and sponsoring Q series of long-range studies to see if some planning can't be done to reach and keep high levels of production and em- ployment, after the reeonVersion and transition from war to peace have been achieved,
 Here are some of the things this group Of business men think they should know about if the mistakes of the l920s and l9S0's are not to be repeated,
 First is the matter of knowing that jobs come from business, and apprioiating that it is necessary to provide adequate incentives for Start- ing new enterprises, What makes Q man want to go Into business for himself, anywayp Is it for his health, a desire for self-eXpreSsion, Q social consciousness of the need to provide payrolls, Q desire for independence, or the eraSs motive of wanting to make more moneyS
 Whatever the incentive the end result makes Jobs and the need of the times Is to induce as many people as possible to put their money into new businesses, rather than to buy bonds and sit back, which Is relatively safer and a lot less trouble, The problem then becomes one of providing the right incentives by proper limitation of government controls over business, labor and agriculture the tax and patent law systems, Obviously, 1t will take plan ming to effect those changes,
 GOOD TAX POLICY NEEDED
 In this scheme of things, the de- velopment of constructive tax poll icy is Of top importance, and this is the second of the CED long, range research projects, It in- eludes the study of state and local aS well as federal taxes, and how the tax burden should be distrib. uted so 1t will both encourage con- Sumers to buy and stimulate pro- ducers to make things, That gets into planning Q properly balanced system of profits taxes, licenses, estate taxes and the elimination of both interstate and international trade barriers,
 A third great field of research for planning comes under the head of minimizing business fluctuations and unemployment, Tn other words, how to level of the hooms and the busts, providing protection for both employer and employe without featherhedding or making useless work, Also how much or how lit- tie government aid there should be in the form of public works, pro- tective tariffs, trade agreements, so- cial security, and so on.
 SMALL BUSINESS PROBLEMS
 A special long-range study is called for on the problems of small business, since firms with less than 100 employees account for 45 per cent of all the jobs in the United States, As a postwar problem that means simply that taxation, capi- tai, labor and other restrictions working against small business have to be revised to encourage more individuals to start new businesses.
 Add all these together and you come to the conclusion that states men and business men really know few of the answers in the quiz book labeled the science of econom- ics. But the folly comes in thinking that the essential conditions for maintaining high level of produc- tivity and employment can be ere ated without deliberate planning some place along the peacetime pathways of uninhibited enterprise. Smart business men realize that, and are doing something about it.