Evening star., 1949-08-18
Disagrees With Mr.. Hoover
About Trend Toward Socialism

That our Nation is driving down the back
road" to collectivism and is ION the last
mile" Is very precariouS statement to make,
even for our only living eX-President. Herbert
Hoover undoubtedly Is one of the most honest
and able administrators this country ever
has produced. He repeatedly has served the
Nation unselhshly and to the country's great
benefit. Perhaps his greatest nonpolitical
contribution to this country was his recent
direction of the Government Reorganization
Commission II Congress can live up to the
effort put into the Hoover Commission report
by studying and carrying out the commits
sion's recommendations without resort to
political bargaining, the country will be i'm
mensely better off. However, when Mr.
Hoover fatty states that Government spend
ing inevitably leads to socialism he is making
a statement that would surprise many econ
omistS. This is part OF his 18th birthday
speech which seems to be full of half truths
He says that fascism exists when the Gov
ernment dictates economic and industrial
life. This is true, and it also seems logical
to say that fascism particularly National
Socialist Germany is more akin to commu-
niSm or full socialism. Economists like to
teach that 1t is not the legal or juridical
ownership Of property which Is important,
but 1t is the control and direction that this
property is given which are the deciding
factors. Hitler Germany was a planned
economy with private ownership. Soviet Rus
sia Is planned economy with public owner
ship. But that the Government could plan
an economy by its spending would interest
student of fiscal policy. Fiscal policy may
iron out few wrinkles, but it cannot launder
the whole sheet.
Government Ownership and Socialism.
Even government ownership does not OF
necessity lead to socialism. Only if the gov
ernment owns large enough segment of the
economy to control it (and exercises that
controD can you say that country is social
ist. Again I would agree with Mr.. Hoover in
stating that freedom as we know it cannot
exist under. full socialism. But that we have
been moving toward socialism for the past
II years is not true. Both the New Deal and
Fair Deal have had as their objectives the
strengthening of capitalism and personal
freedom. To deny a modern industrial econ
omy of its welfare functions is to deny it of
its very existence. Modern urban life and
an industrial community demand that GER
tain heretofore private functions be taken
over by the state. A do-nothing state is
potentially revolutionary state.
In the past the Government has taken
over, by control or ownership. certain prof.
ects. But in each instance it has been for
an especial reason. The Panama Canal and
the Alaska Railway for defense, the IVA for
reclamation, public lands for conservation.
etc. The view that the country could exist
without restraining controls on private buS-
ness is extremely naive. In all these in
stances capitalism was strengthened by re-
Straining and redirecting some of its NAL
functions. The Government by its fiscal
policy (revenues and expenditures can fur
ther strengthen capitalism. Another func-
ton of a modern capitalistic government is
to insure the country against violent eco
nomic swings To deny government this
power is to leave the front door wide open
to authoritarian government. Think it
over"
Mr.. Hoover states that the average citizen
works 81 days year to pay taxes. He him
self states that IS of these days pay for past
and future wars. To blame this on a So
cialistic' tendency is farcical. Mr.. Hoover is
distressed over the growing length of pension
lists and the like. If he is truly human
itarian, 1t should not be hard for him to see
that some one must take care of the aged
and the sick. The days of the self-suf1cient
family farm unit are gone forever. AS for
the Government payroll he should know that
proportionally as to both numbers and in
come the Federal Government is smaller
than in 1899. Again I would like to point
out that the correlation between Govern
ment employees and their political leanings is
County in both elections despite its extraor-
dinarily heavy Federal employe population.
Income Tax Not Passed On.
If it is true that the Government policies
withhold credit from the small businessman,
then the fiscal policy of the Government
can be changed. But this does not mean
that we will step backward and refuse to
take care of our needy or cease to control
monopoly.
If Mr.. Hoover sincerely believes that
corporation tax can be shifted to the public,
he is as fuzzy minded" as those liberals he
criticizes. It is economically impossible to
shift corporation net income tax forward
onto the consumer-other taxes possibly, but
not the net income tax.
It is good that Mr.. Hoover has advised the
American people to think it over" before
voting for more government. But it is not
good that he should use his position of high
prestige to press forward some of the glaring
half truths of the day.
Our forefathers very wisely designed the
Constitution to be flexible enough to allow
political and economic progress. It seems
that Mr.. Hoover is trying to make road
block out of a acting brake. Our fore
fathers saw that such an instrument would
not secure the blessings of liberty to ourselves
and our posterity.
"Think it over" JOHN r. FRIEDMAN.
Differs With Author of Letter
Blaming Ho0dlums for Closing Pool
To the Editor Of The Star:
There was letter in your August issue
from E. B. Henderson, which is hard to
understand and wish to ask some aues-
tions concerning it. He says that the hood
lums and Klansmen closed the Anacostia
pool, and yet it is fact that Secretary
Krug issued the order to close the pool, so
suppose Mr.. Henderson is calling Secretary
Krug hoodlum and a Klansman.
Also, Mr. Henderson says: ITO submit TO
the American Hitlers now would give TO
Stain and his American followers the hnest
sort of ammunition short of guns" what
does Hitler and Stain have to do with tne