Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1950-02-03
More Power For President To
Fight Depressions Proposed
BY NATHAN ROBERTSON
For Labor Press Association

WASHINGTON (LPAOne of the most important recent
developments here which is likely be reflected in the
annual report Joint Congressional Economic Committee
toward flexible tax and spending policy that would
give authority fight and buss
Such authority recommended to the Economic Com
mee by It's subcommittee headed by economist senator Pau
Douglas 3D. m and was strongly endorsed in hearings on the
economic report by of the counys leading economic
scholars and thinkers.
Under such plan might authority
rates by few percentage points to meet
changing economic conditions and to raise lower the rate of
spending for such things as roads ana other pubic WORKS
Such authority would mark sharp departure from ira
don because Congress has always kept tight control
over taxing ana spending poheeS buV e heeo ior SUCH
flexibility has recently because of two factors
l. growing recognition that economists are not yet able
to forecast economic conditions in advance with certainty
q A growing recognition that government taxing and
spending policies should be keyed economic conditions and
subject to rapid change than normal legislative processes
permit
this year develop swiftly
after Congress quits it might impossible to make the
changes taxing spending policies
under present laws, in time to avert serious trouble
But If the President had authority from Congress he could
downswng with positive action that might avert
serious He could for instance lower tax rates
that under our current collection system the pbcs buying
power would be almost At the time
if he had authority from Congress- he could cut sales
many commodities and thus make them cheaper for the public
buy Together these might enough
buying deaon widespread
unemployment
Under present law however, If economists agreed
that both of these might take Con-
gress months to act Revenue bills even those cutting taxes
the sowest to through Congress And when tax
increases were needed during the recent initiation the Pres
dent found ii impossible to get them approved
The only fexbiy of this kind Congress has
the last housing BILL when provided
for changing the of home construction according
conditions But this enough
effect the economy Similar provisions other
needed, and needed badly
Several the who testified
Committee last week headed Professor Strayer
Princeton University recommended flexible power
the President Sayer said quickly
the face of depression would
The Douglas subcommittee in recommending flexible
legislation emphasized the unreiaby
ing II noted that there certain nexbily"
present laws because business
revenues also down while unemployment benefits
sstance to farmers tend increase But
enough to meet serious initiation depression
The of these proposals for flexible laws is
TO the government with all the possible
maintaining full employment without waiting for
fauons deflatons develop These plans
the philosophy OF the full employment they
ey 10 be enacted without strong from labor
otner groups which supported that legislation
Congress is not only jealous prerogatives but its
economy bloc VIII strongly legislative proposals
mat would let the President unbalance budgeeven to
ght oepessons Although economists businessmen
are agreed that this
lhere are still members OF who think the most i'm
portant thing In the world is a balanced budget
Professor Seymour Harris Harvard told the Economic
Committee such suffering public debt "neu
ros and that this dangerous the country
But this neuross takes long time would be quicker
to elect new Congressman next fall