Detroit evening times. (Detroit, Mich) 1921-1958, 1944-03-28
NEWS
BEHIND
The News
-ByPauI
MaIlon

WASHINGTON, March 2S-
w Some economic authorities
and readers have asked how it
would be possible 10 work out in
detail the theory of individual
spending" as a replacement for
government spending in a post
war program.
There are a thousand and one
ways. All the government would
have TO do would be TO adopt
this policy and then pursue il in
all possible democratic ways.
The development of methods
to encourage private spending in
slack business times, and dis
courage il in times of plenty,
could rest primarily on taxa
ton.
SPECIAL allowances could be
~ granted for constructive ex-
penditures such as home build
ing. home improvement and
business plant expansion when
the national income has dropped
below a certain figure.
Special extra taxes could 60
into effect, tending to retard
boomlike businesses, when ma
tional income rises above a GER
tain figure.
In fact, the whole structure of
income taxation could be geared
TO promoting balanced eco
nomic flow. Income and other
tax rates would automatically
rise a certain percentage for
every corresponding decline.
This would be effective because
we are on a pay-as-you-go tax
basis now.
The great spenders of the
country are the great business
firms. Their natural tendency
is to expand with good business
beyond their long range necessi-
ties and then wall at unused
plants when business falls off. A
wise government would get
them into planning directly, in
addition to tax lures.
THE public utilities, railroads,
Il electrical power plants
might be induced under proper
government leadership to create
backiogs of their own. They
would strengthen themselves
financially by building mainly
among the price advantages Of
slack times, although I concede
their natural tendency to build
only when they see immediate
profits to accrue from expan-
Sions.
Government loan policies also
could be adjusted to-this pur-
pose. If Jesse Jones and his
RFC shut down on loans in good
peace times and entered upon
them as Slackening becomes no.
ticeable. it would have a power
full effect.
The same influence could be
exerted upon bank loans by the
Federal Reserve,, upon buiid-
ing and~~,loan companies, and
upon large pablic utility bond
issues. A strong government
emphasis for moderation and
the even keel wsuld have a ire
mendous overall effect.
o.
CTATE and city governments
~ could be drawn into cooper
alton in their expenditures and
in their management of internal
business. A treasury policy on
the cashing Of government bonds
might help. holders being en-
couraged TO wait until times
land prices) are propitious
before making noneSsential gross
expenditures tfor automobiles,
house additions and improve
ments).
There are many other ways.
All that is needed is leadership
to search them out and assert
tn m. Government spending
never NuiCu diiy OtptGSSiOu yet
With this debt, in peace times,
Il could not be carried on in
sufficient volume to furnish
anything more than a stop-gap
against collapse. A few more of
those stop-gaps would bring col
lapse (unfinancable debit.
INDIVIDUAL spending leader
Il ship would at least be sound,
affirmative, constructive, nom
political, and democratic. It
would allow moderate, sensible
taxation. leaving more money
for the people who earn 1t.
The curse of COVE m e n I
spending is that il is on basis
of conjured need" generally
political. Individual spending
would be for actual need and,
therefore, economically whole
some.
Distributed by King Features synd Inc.
L. -.