Detroit evening times., 1945-08-29
PAUL
.NIALLON
Behind
The News

administration has thrown
its full power behind the full
employment bill Even It's most
conspicuous conservative, James
Byrnes, the state secretary came
forward strong for II.
on its face IL has an innocent
and appealing look. 1t pledges
a policy Of See competitive cap
italiSm and sets up a congress
sional budget commission 10
work with the President in ad-
justing the national bu d z g
quarterly TO meet any unem-
ployment. The idea is 10 increase
government layOuts for public
works 10 whatever extent called
for by an unempl oy m e n I
condition.
You might say this is Just
about what the government mas
been doing for the past II years,
and therefore the bill Just writes
into law the Roosevelt policy.
As some of It's sponsors see II,
the proposal IS not an innova-
tion and ITS consequences would
not be important.
I THINK a sincere and careful
Il analysis will show they are
wrong in both instances. In ef-
feet, the bill is a revolutionary
economic theory which would
destroy all existing conceptions
Of government budget, making
and really alters the Gonstttu-
tlon OF the country.
Budgets have always been
made on the basis of expenses
necessary 10 run the govern
ment. Even Mr.. RooSevelts
spending programs were, in gem
eral. carried by him outside his
regular budget. Unemployment
relief was regarded by him as
an eXtra-budgetary matter An
other primary factor in budget
making is taxes. Expenses have
to be limited by the amount of
money taken in. This bill says
nothing about taxes. Indeed 1t
diScards the theory that the
amount taken in by the govern
ment has anything to do with
budgets and says only unem-
ployment is TO be the guide
hereafter.
CLEARLY this is an infla-
" tionary scheHe-sHd not, as
some witnesses endorsing II
have testified, "A movement
against initiation. In fact. il ap-
pears 10 discard permanently
the policy of the government to
balance the budget.
The constitutional theory Of
this government since the be-
ginning has been that taxpayers
have rights. that the activities
of politicians in control Of the
government must be limited in
defense of taxpayers interests.
This bill sweeps all that away.
II sets up a politicians spending
heaven instead
The only right left is the
right TO a job. because eStab-
hShment of that prior right
necessarily disCards the others.
Now no one objects to the gov
ernment providing useful public
works during unemployment
crises. As a matter of fact, /
think all government policy
should be adjusted to economic
necessities.
AN IDEAL condition would
"A adjust taxes. loans. rediS-
count rates, interest rates and
every possible government aC-
tivity affecting economics di-
rectly to a sliding scale raising
taxes. for instance, in good
times as brake against boomS.
lowering them 10 encourage
private business activity as de-
pressions appear.
The lending policy should be
contracted and expanded auto
matically as national income
rises or falls to keep the Coun-
try on a good economic balance.
This bill neglects TO do that, but
accepts the limited theory Of
the labor union economists that
government spending and jobs
are the only things that matter,
II is wholly negative in char
acter. Employment is the prob
lem, not unemployment. What
the government should primar-
lily concern itself with, is the
constructive encouragement 10
business in all ways to furnish
employment without spending.
That would be affirmative ac-
ton. II this was done. the
necessity for unemployment
spending might never arise.
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