Evening star., 1949-07-02
Real Economy Program !
Could Block q Recession
Senate Asks Truman to Cut Expense,
But He Calls for More Taxes
By Gould Lincoln
The Political Mill

President Truman tells Congress to in.
crease taxes. Congress tells the President to
cut expenses. Nothing is done in either
direction In consequence, the country has
just closed the fiscal year in the red-a
deficit of S1811 .44O 047 .68, according to the
Treasury Department. Senator Byrd. in a
Senate speech, has predicted that unless
a halt is called. the deficit at the close of
the next fiscal year will be from $4,000 ,000,-
900 to $4,000, 900 900.
And what is the picture presented to the
overburdened American taxpayer; what is
Congress, and what is the President doing
to help in this situation?
The Congress has just passed and the
President is about to sign the so-called pub
lie housing bill-which means socalized
housing-a new project that its proponents
admit will cost the Government from ST.
900 900 900 to SO 900 900 900, and its enemies,
$4,000 100000. The administration is press
ing for greater and more costly farm sub
sides; it is urging that national health
insurance program be adopted-socialiZed
mediclne-which will take billions out Of
the pay envelopes of Americans and out Of
the employers tills, and it is urging an ex-
tension of the social security system, which
in turn will take more millions out of the
payroll taxes.
Nothing Helpful Done.
The answer is: Neither the President nor
Congress is doing anything helpful.
Deficit spending is going right ahead.
despite the fact that the public debt now
stands at approximately one-third of tril-
lion dollars-a sum so large as to be utterly
fantastic in the public mind. AS Senator
Byrd has pointed out of the last Is
fiscal years, starting with 1882, all but two
have ended with deficits The lowest deficit
was for the fiscal year 1851 400 900 900
and the greatest deficit was in the war
year 1945-$53 900, ,000
The only two fiscal years which closed
with a surplus were 1947-when the surplus
was 1854 100000 and 1948, when the surplus
was $8,4O0,0oo,o00. Either this country
simply cannot stand prosperity or its polit-
icai leaders are so stepped in the idea Of
taxing and spending and thereby getting
enough votes to elect that there seems no
way out.
Sixty-odd Senators have signed round
robin supporting a demand that the PreSi-
dent cut Government expenses from to 10
percent The movement is designed to put
through Congress a resolution so directing
the President. 1t is gaining ground in the
House, too. But these are men, many Of
them, who voted for the big appropriations.
who voted for the housing bill particularly
those in the Senate) and who will in all
probability go right ahead voting for big
appropriation bills which are still to be
acted upon. Such bills. awaiting enact
ment, carry about $4,000. 100000.
Signs of Recession.
With signs Of business recession-n not
a depression-growing stronger. the ad-
ministration is prepared to get behind still
greater spending by the Government-on
the theory that the Government can spend
the country out of depression. That was
tried for years-and only war brought
full employment
Although unemployment has been on the
increase, particularly in some of the big in
dustrial States, employment is still high;
and while business Is contracting, it. too,
is still very great. The proposal to increase
Federal taxes, If it is put through. could
easily result in bringing a further curtail-
ment Of business and Of employment-and
to such degree that the increased tax rates
would net the Government even less revenue
than the present rates bring in.
A real economy program on the part Of
the Government might give the American
people and American business sufficient hope
and encouragement to weather a recession
and turn the country's economy to new
upward swing. Bigger spending and bigger
debts is not the way.