Evening star., 1950-10-15
DepIores Sweet Talk
Of Economic Advisers
Writer BIumes Labor Politics
For WostefuI Spending
By Fronk R. Kent

In war, of course, it is foolish to
count the COST It does not make sense
in our situation to haggle over the
amount Of defense appropriations nor
squeal about the size of the debt.
Hence, there is no use becoming ex-
cited at the prospect Of 10-billion Fed.
era! dollar deficit and defense spending
at the annual rate Of $45 billion or even
$50 billion. Certainly we are headed
toward those figures. They are stu
pendous, indeed, but we may as well face
them and get used to them. There isn't
anything else to do. However, 1t Is well
calculated to increase our burdens and
enhance the national peril II deliber-
ately we cast aside the elemental rules
of arithmetic and accept the loose
though lovely doctrine that without un-
due effort on our part, everything will
come out exceedingly well II we just
believe it will.
That is not exactly the way the ad-
ministration would describe its fiscal
policies at the moment, but unless it is
being grossly misrepresented by its
chosen mouthpieces, that is what 1t
really means. It has not actually
adopted the happy belief of Henry Wal
lace and his more progressive" friends
that the size of the national debt is with
out Importance because 1--WE owe it to
ourselves" But the general idea is not
so very much off that track.
According to usually wel-posted
writer's whose personal relations with
the Council of Economic Advisers are
concededly close, 1t Is advising Mr.. Tru-
man that the national economy not only
can stand expenditures Of $50 billion a
year for defense but will not crumble
under $40 billion or $50 billion. These
titanic totals are reached by adding to
the prospective $50 billion for defense.
$25 billion for non-defense expenditures.
The astonishing thing is that the PreSi-
dent Is being told that he need not be
afraid of these figures because mon
defense expenditures naturally increase
with defense expenditures"
This. OF course, is exactly the reverse
Of the conviction held by Senator Byrd,
Senator Douglas and a great many
others in and out Of Congress who
naively believe the only way the Nation
can achieve the financial strength to
bear the enormous defense expenditures
is to cut heavily all non defense expendi-
lures. ....
Certainly. it is the theory upon which
the Treasury is offering its new savings
bonds as a sound investment, but 1t
appears distinctly not the theory Of the
Council of Economic Advisers. Accord
ing to it, those who urge reduction in
non-defense spending are just plain
ignorant. Now, the President is advised
that non-defense expenditures must in
crease instead of decrease; that there IS
no need for economy; that the American
system is so astonishingly powerful that
"it can stand very heavy load for
very long time. without any disastrous
collapse in the standard of living"
This is to be made possible, It Is ex-
planned, by production expansion from
$3.50 billion-the present guessed-at
figure-to minimum of $3.50 billion or
possibly even $500 billion. There is no
doubt about this, it is asserted, IF the
economy of the country is properly man
aged" Taxes of course, must be high,
but the Government economists" do not
believe tcontrols need be as rigid or as
all-embracing as in the last war;" AS
wages are not mentioned by the vera
cious reflectors of the council, their con-
troll is assumed not to be vital and the
recent belated steps along those lines are
not too seriously intended. No sug-
gestion Is made of the curtailment OF
waste or any effort to pay as we go.
Everything is to be all right because
production will grow perhaps 100 per
cent in the next few years. 1t grew In
the last war, so it must in this. That
the economic experts" upon whom he
must rely should be pouring this COM
forting sort of sweet talk" into the Tru-
man ears is the most frightening thing
in Washington today. Its potentiality
for harm cannot be exaggerated. Before
any Of the long-delayed White House
appointments of stabilizers and control
lers can get into action-f action they
are going to take-the wage increases
that mean more imitation will have taken
place-with administration approval-
and the cost of arming-and everything
else-will needlessly have doubled.