Milford chronicle., 1949-04-22
LOWER TAXES ARE NEEDED TO
INCREASE CONFIDENCE

The prospect of lower taxes would have
an invigorating influence on the national
economy just now, when there are indica-
tions that the postwar boom may be slow
ing down. The prospect of heavier taxes,
discussed whenever the Federal budget is
under consideration, is a depressing influ-
ence. And it is being felt as the boom makes
uncertain moves toward senescence. When
the problems posed by the end of the boom
are faced, we shall be well advised to realize
there is not enough fiscal adrenalin in more
government spending to Offset loss of blood
from heavier taxation. Healthy rejuvena-
tion can come only through reduction of
government burdens. There is an error un-
DERIVING the prevalent belief that lavish gov
ernment spending is now sustaining national
production, employment, and income.
The volume of government spending has
no demonstrable relationship with the move
ment of gross national production, national
income, or personal income, except when 1t
occurs on scale broad enough to dominate
the economy, as during war. And If the gov,
ernment should undertake to dominate the
whole economy all the time, it would mean
fantastic alienation between wild spending
and furious taxation. The spending would be
required at one time to curb depression ten
dencies, and a confiscatory rate of taxes at
another time to halt imitation resulting from
spending.
&E@@&
LIKE A SEARCHLIGHTs IN THE NIGHT
If YOU Nslve an automobile which is rfiT-
ming well and providing excellent service,
you don't take it apart and monkey with its
innards. Yet many current legislative pro-
posals, on both the national and state levels,
involve tinkering with the basic cogs in an
economic machine which has given better
service to more people than any other that
man has managed to devise since history
began Sometimes this tinkering is obvious
-as in the drives to bring back price con-
trolls, rationing, allocations, and other de-
vices for giving the bureaucrats control over
the production and distribution of goods and
services. At other times the tinkering is indi-
rect-as in projected changes in tax laws and
tax principles which would make it increaS-
ingly difficult for business to operate and to
expand In either case, we are borrowing
alien schemes which, when tried elsewhere
have universally produced scarcity and want
among the masses of people The American
economic machine goes by various names
free enterprise, the competitive system, anC
so on. Regardless of the label, the fundamen
tails are simple. Everything produced anC
sold, whether it be pound of meat or sui
of clothes, moves in market which is con
trolled by one natural law-supply and de
mand. The manufacturer who produces tn
suit and the packer who distributes the mea
to consuming centers must do everything
humanity possible to give the buyer what h
wants and at price he is willing to pay
And he must do it is in the face of tough CON
petitors who are out to get more and NOR
business for themselves. Aside from all tn
theories of economics, one fact stands oU
like searchlight in the night--this syster
of ours gave America its unrivaled standar
of living.