The Wilmington morning star., 1947-08-05
HOWAbOutEcOnOmv
BY ARTHUR KROCK

11OW
BY ARTHUR KROCK
WASHINGTON,-1n the session Of Congress
just ended the Republican majority made a
reduction in the cost of government. Whether
1t was almost So billions, as some figure it,
or more or less is an argument that will
continue, though there is no room for argu-
ment that the savings did not reach the Sc
billions resolved on by the House leaders or
the $4.5 billions pledged by those in the Sem
ate.
But there was economy achieved IN the
operation of the fixed agencies of the Federal
system. It was not the fault of the majority,
or of the executive, that the international sit
uation added costs to government that were
anticipated by neither when the President
sent in his budget Of $37.5 billions as the SEES
sion began, and is sure to impose larger and
protracted ones. When the actual expenditures
OF fiscal 1913 are totaled it will be wholly I'M
fair to subtract these from the savings to
support the argument that the Republicans
accomplished no economy at all and that,
after they came to Congressional power, the
costs Of government actually rose.
But in the wake Of the record the question
arises whether the majority Of the American
people are interested in that record Or in
the political issue it represents. So far as
can be determined from the few surface evil
dences, this is their state of mind:
They want the government to do for them
most of the things it is doing, but they want
the service to cost many billions less. The
nature Of government is such, however, and
the great Federal machine has expanded and
become entrenched to such a degree, that the
wishes cannot both be realized.
The people favor a strong defense estab-
lishment and a firm policy toward Soviet
P1iCCjon on1rncCio~ A. {ho M $i~oo t.~.
object to the high bill that must be paid for
that establishment, and to the additional bill
lions the Truman Doctrine and the Marshall
Plan-Which represent that firm policy to-
ward Soviet Russia-are certain to require.
Before and after the war the country was
full of voices, including those of newspapers,
demanding economy, and the Republicans
can trace some of their Congressional gains
in 1916 to the pledge they made to this end
But each time the Republican-ruled commit
tees at the recent session made large reduc-
tons in executive budgets, which is the only
way the overall budget can be importantly
cut, these same voices usually assailed the
action. This was not the place to cut, they
contended, and in many instances the reduc-
tons were rescinded under this pressure. But
where else economies of this size could be
made, except in the defense establishment
and the bill for foreign policy, the critics
were as unable to suggest as were the econ
omizers.
Confronted with these difficulties. the Re-
publicans yet effected the first real savings
for many years in the costs Of the normal
Federal system. However, there is no evil
dence that the public is grateful and none
that any of the leaders who toiled to make
the economy record acquired popular favor.
For a long time political s~penders have been
the peoples heroes and have gained the great
rewards OF office, and the ~watchdogs of the
Treasury have been fortunate to hold seats in
Congress. This situation does not appear to
have changed.
Some observers date this public attitude
from the development of the income tax into
a social-economic instrument under the New
Deal. The earnings Of the successful and the
rich, on which the investment market depends
for risk capital, and charity and education
rely for endowment, were subjected to sur-tax
levies and reduced exemptions to produce the
funds for Federal spending programs which
went to the remainder of the population in
stead Of to new enterprises, charities and ed
vocational institutions. Increased estate and in
heritance taxes, state income levles and de-
vices to cut doWn corporation reserves, and
put the difference in the Treasury killed the
money-making incentive in citizens of the
type who in the past led the economic devel-
opment of the United States.
But under this plan the general government
grew great, and was bountiful to the many
in subsidies and services. And, though the
Democratic party numbers a few like Senator
Harry Flood Byrd of Virginia who resisted
the trend and the burden it lays on the tax
payers, disproportionately and otherwise, this
has been the Democratic party policy since
1888. Even in a tranquil world, this policy
blocks the return to an economical govern
meat that does for private business and in
dividual citizens only what they cannot do
for themselves.
Do the mass of the people really want to
remove this block? There is little evidence,
including the 1916 election returns, that they
do. If they do not, no political party can make
heavy reductions in Federal costs or will try
very hard to do so. That the Republicans
made the effort in the circumstances, and
accomplished any real savings at all, are
real accomplishments.
But whether that was good polltlcs, in terms
of rewarding votes, remains TO De seen. The
Democrats are still sure that, with the pres
ent tax schedules, it will prove otherwise
New York Times.