Milford chronicle., 1949-08-12
TIMES CHANGE-AND so DOES
PRESIDENTIAL THINKING

PRESIDENTIAL THINKING
Times change, and so do economic theo-
ries This is well illustrated by an article in
u. S. News and World Report describing
present government fiscal policies. It begins:
"Refation-revived infation-is to be sought
by government from here on out. Defation,
mild and brief, has proved too much for the
White House to accept without trying to
bring turn back toward imitation" Various
stratagems will be employed-if the Presi-
dent has his way-in an effort to accomplish
this. To quote the News again, "The ex-
pressed hope is that, if the plan succeeds, it
will not result in new imitation of prices.
The objective, instead, is an expanded use
of credit" Mr.. Trumans ideas on the sub
ject were expressed, in part, in his Midyear
Economic Report to Congress, and in his last
radio talk to the nation. First of all, he is
holding tenaciously to his belief in the wis
dom of big spending, even though a deficit
results. For the current fiscal year, he wants
a budget of about $42,OOO,00O,0O0 which, it
is reliably estimated, will mean a govern
ment operating loss in excess of $5,000-
100000. He has, however, apparently chang
ed his mind on the $4,000,0 100000 tax in
crease he formerly favored. Some think he
would even find tax decreases in certain
fields acceptable. Sentiment in Congress
would seem to favor this. Not so long ago,
the White House backed tight money"
policy. Here, too, the Presidents stand seems
entirely different now. Stock market mar
gin requirements have been reduced The
scontrols on installment buying have been
abandoned. Both the President and Con-
gress favor liberalized credit plans for new
housings AS the u. S. News sums it up,
T'POllcleS of government, basically, will be
aimed at stimulating broader use of bor-
!rowed money, both by Government itself and
Joy private individuals and industry. The
iplan to revive prosperity, the President pre-
idicts, eventually will lead to a national in
come of 100000, 100000" The Presidents
Council of Economic Advisers put the situ-
'ation in these words: ''The mere fact that
the Federal government is currently with
drawing well-over 100000 100000 a year
from prlvate-incOme channels and is dis
burSlng like or even greater amount into
the market and income stream means that
the government is already the most infuen-
:tial single factor in the current operation of
the economy" The unanswered question is
how long this kind of spending beyond in
come can be maintained without exhausting
the nation.
is TRUMAN'S PROGRAM WORKABLE?
When, in his inaugural address, Presi-
dent Truman called for "bold new pro-
gram" which would eventually Danish "hun-
ger, misery and despair" from the free ma
'tions of the world, the repercussions were
iheard around the globe. The President spoke
IN highly generalized terms and gave no
"details. But it was clear to all that this was
a tremendous concept, which would require
fmany years to accomplish even in small part,
aand that the problems and the costs would
tbe incredibly vast and complex. Since then,
tine program has been endlessly discussed,
and from all Sides Some experts, who are
sympathetic with the Presidents humani-
tarlan purpose, have come to the view that
the problems may be insoluble - and that
even the desirability of the program is sub
3Ject to grave doubt. One of these is William
1Vogt, the scientist whose challenging and
controversial book, Road to Survival" in
which ne dealt with the exhaustion of natur-
al resources, caused something of a bomb
shell year ago. Mr.. Vogt points out that
l,5OOOOO,OOO people "with living standards
lar below ours are concentrated in the So
called undeveloped areas" A high percen.
tage OF them are illiterate They know next
10 nothing OF modern science. If we gave
them tools and seed and other assistance
there is no guarantee that the gifts would be
properly used. But even if this were to be
overcome, there is far more to the problem
than money and TOOLS Mr.. Vogt believes thai
the undeveloped lands are "intrinsically pool
and require far greater investment of capi
tal,. labor and management to produce :
much smaller return than could be had in the
United States" They lack good soils, usabIC
tlmber-the most basic essentials of what W.
consider proper living standards Finally, il
we should set out to remake much of tht
world IN our own image, we will run into ;
problem that might prove the most difficult
OF all-the faiths and traditions of PROUD
peoples with cultures older than ours, VIII,
seem primitive in our eyes but not in thei
own. Mr. Vogt says, "We bring down price