Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1949-07-15
Crucial Test Now For
Full Employment Law
By Nathan Robertson

WASHINGTON (LPA) - The full employ
ment law is facing its first major test - test
that may involve the jobs of millions of work
ers.
For the first time since the law was en-
acted in 1946 to avoid depressions, the coun-
try now faces the danger of depression. The
danger is recognized by most government
economists. The theory of the full employ
ment law was to provide machinery for taxi
ing action, as soon as the danger was recog-
nized to avoid depressions.
The test facing the law today, therefore,
is whether or not it will result in action to
head off the depression which seems to be
threatening the nation. Labor and liberal sup
porters of the law believed it would be pos
sble for the government - by taking proper
action - to head off serious depressions. They
still believe So The question is - will the
government act in accordance with the spirit
of the law?
The first step in taking such action is the
submission of a report to Congress by the Pre-
sdent pointing out the danger and recQm-
mendine action The President is complying
with his responsibility under the law this
week although whether his message is
strong enough to mobilize public opinion and
force action from an uncooperative Congress
remains 10 pc Seeli
The real test facing the full employment
law comes in Congress, as supporters OF the
law recognized from the outset. The whole
purpose of the legislation is to get Congress to
take action in time to head-off serious trouble,
rather than waiting until the econmoy has
been thrown into dangerous downward spiral
that is difficult to stop.
The action Congress takes on the Presi-
dents message therefore may spell the diff
md f1I1
ment - between millions of workers looking
hopeessly for jobs and plentiful jobs - be-
tween tragedy and triumph not only for mil
lions of workers. but for the nation as
whole
The Presidents message comes at critical
time when Congress is heading in direction
which many economists believe increases,
rather than diminisheS the danger of a de-
preston. Congress Is dominated by men who
have never understood or believed in the full
employment law, the possibility of govern
ment action to head-off depreSsions.
The theory of government action to head
off depression is simply that when there is not
enough purchasing power in the hands of con-
sumers to keep the wheels of industry going
full blast and when business begins to get
scared and to curtail its expenditures govern
ment should step in to reverse the trend. This
involves temporary deficit financing or the
government spending more than it takes in.
II cannot be done in any other way.
Supporters of government action to avert
depressions believe that in this way, by spend
ing a few billion dollars at the right time the
government can head-off an economic slump
which might cost the nation many times that
much in terms of human tragedy and economic
loss. 1t was government spending primarily,
which boosted national income from 40 mil
lion dollars year in 1888 to five times that
much by the end of the war Much of that of
nl In
peace time with national income already high,
a comparatively small stream of government
spending properly directed into constructive
channels could do the job.
Most Congressman do not think in these
terms at all Their first inclination when they
see a slump coming and government revenue
declining, is to curtail spending This merely
adds to the shortage of purchasing power and
increases the downward economic spiral The
current economy drive in Congress is an
evidence of this kind of thinking.
Unhappily, that economy drive is directed
at the very measures that would help to COM
bat the tendency toward depression such
measures as federal aid to education, andaex-
pansion of the social security laws. The econ
omy drive is aimed too at expenditure for aid
to Europe, which indirectly bolster our econ
omy. II blocks action on the Brannan farm
program which would sustain the farm econ
omy without putting food prices out of reach
OF consumers
Most observers believe there is little chance
of reversing this trend of thinking in Congress
at least until conditions have become far
more serious than they are today. If they are
right il means that Congress is ready to null
lily the full employment law which labor
worked so hard to get three years ago 1t
means that government action will not be
taken until the cost of such action has become
far greater than it would be today II means
millions of people must lose their jobs - un-
necessarily.