Evening star., 1952-10-27

Fifth YORK
published ho heard him urged him to
make it aralabe a much larger audience
Today as start let remind you of the threats to continued
prosperity which be faced by government and business
hope strength for the next generation
you tempted discount what have to as an
appeal for special avors for business let ask examine each
proposal the what honestly believe the Amer
ican people. That is all ask
already been far many appeals special inter-
this country We have low point history any
leader feels he appeal sene other human
weakness get ahead I'd hate to have boy think had to- 1t
long past that all appealed to mans nobility his integrity
his dignity and his moral courage.
With that thought in mind let tell you what believe the
most important question concerned with economic health and
our power support rightness throughout the world
simply this: shall have government in business or
more business in government?
Seven Road.Blocks To Prosperity
1say this because can see many in the path
continued prosperity country I'll mention These
the roadbocs that contribute the feeling of uncertainty about
their which young share today Government and business
must work together to remove them.
roadbock prosperity Intervention
extent the OF our PrIooe
opportunity system.
There are two kinds of government relations with business Mr.
President kind that necessary including proper anti
regulations.
The other the unnecessary kind that prevents business from
should try business during aou when scarcies
keep competition from exercising its effect supply and demand
Under our competitive SYSTEM the must be the boss
He should decide what products shall be made and how and
how shall pay for them Under government CONTROL the
toner his business Prices arbitrary level
and quantities produced longer bear relation to the demand
The second roadblock in the continued prosperity
policies ,Ohich destroy Incentive.
Today the government draining away the money business
needs to build for the future
1t takes away 81 to 80 per cent of companys profit while
hold prices down. does allow corporations to deduct
fair amounts for depreciation these of imitation And taxes
investors heavily they lose both the and the incentive
to invest enough to keep industry expanding.
Heavy corporations encourage businessmen to
be extravagan with peoples money They figure why
about spending another few million dollars to hang onto it.
the will take all but cent OF This works
against government investors customers and employees
Taxes essential Mr. President The should col
lec enough balance the budget after cutting out all unnecessary
spending And let's kid ourselves all taxes paid by the
toner In the end.
But makes big difference how taxes applied Heavy
on profit against themselves They penae They dis
courage from serving better and providing
and better Jobs They dry up this source of taxes
The third roadbock the failure of the government to
ognise role of profit in the path of prosperity
The governments exaggerated talk about profits has stirred up
widespread resentment against business.
Surely you realize President that profit the incentive
which makes opportunity system work Some it paid d
dend as those people who their savings build
plants and way make jobs The purpose of these dv
dends make them invest instead of spending all
they make The remainder profit directly back into the busi
ness to provide and better products and equipment
company forced by the government operate made
quate profit is living on borrowed time
The fourth road.block continued prosperity is the
instability of the dollar.
The governments money policies have encouraged imitation
Every time the fails balance the budget has to create
new money through borrowing The dollars added to our money
supply dilute the value Of every dollar
Imitation gnaws away the value peoples For
pe suppose 500 the bank per cent
interest compounded every months that slOO has now grown
$22 But because of nAato that $l22 will now buy only as much
as the man could have bought with $74 ten years ago.
Think what this means Mr. President people who have been
saving money buy home educate their children Think what
people who must live off savings insurance pensions
Worst Of all imitation makes people lose faith IN their business
and government leaders an0ouages them grasp Tsedy to