Milford chronicle., 1953-10-23
LET GOVERNMENT GET OUT OF
BUSINESS COMPETITION

More and more people seem to be coming
to the conclusion that one of the best ways
to help balance the budget, to start reducing
the national debt, and to make eventual tax
reduction for enterprise and individuals pos
Sible is to get the government out of COM
mercial business. Former Defense MObilizer
Wilson started the ball rolling months ago,
in a speech that aroused great national in
tereSt. Herbert Hoover advocated a similar
policy in nationally broadcast major ad-
dress, in which he stressed the case for dis
posing of gOVernment-OWned electric power
plants and related facilities. Bills have been
introduced in Congress proposing studies
and Investigations to find ways of returning
government commercial operations to pri-
vate ownership, and to protect the public's
investment in them. A House subcommittee
is studying federal competition with private
business and the resultant loss of tax reve-
nueS.
An interesting recent development is
found in a plan offered by the Cleveland
Chamber of Commerce. 1t points out that
taxes have now reached the point of dimin-
ishing return, and that government borrow
ing to cover deficits would create still more
imitation. 1t implements these views with a
recital of facts. Federal taxes are now at an
all-time high, and have actually increased
5000 per cent since 1888. Taxes are ham,
of all corporate profits now wind up in the
tax collectors tills. The U. S. consumers tax
bill-federal, state and locals greater than
his food bill. Imitation, which is primarily the
result of increasing the money supply in re-
latiOn to the supply of goods, has made heavy
inroads into the living standards of many
and the savings of all. The Chamber praises
the recent Treasury policy of increasing in
terest rates as an anti-infatiOnary measure
but believes that it will be ineffective without
a balanced budget. Therefore, the plan states,
"Like any other business or organization
which has been Over-eXtended through bad
management and extravagant spending, the
new management must liquidate the over
extended operations"
1t goes on to point out that government
is competing with private business in some
100 separate fields of activity. These include
power and aluminium plants, synthetic rub
Der factories, all kinds of lending agencies,
hemp plantations, railroads, housing, fertil-
izer and synthetic gasoline and sugar fac
tories, ETC., etc. Their combined assets are
estimated at $3O,OOO,OOO,OOO. They are ex-
empt from all federal taxes.
The Chamber thinks that many of these
gOvernment-Owned businesses would sell
readily to private enterprise-sOme at fig
ures above their original cost. Others would
CcIhS COIlOIUC4 dOiC IlIIC W UlSpOSC Olg OGCduSO
of various cOmplicatiOns-in such cases, says
the Chamber, their operations should be put
on a strictly self-supporting basis that would
eliminate tax losses and further drains on
the Treasury. The larger part of the liuui-
datiOn, it forecasts, could be accomplished
within six or seven years.
In conclusion, the Cleveland Chamber
points to four ways in which the sales OF
these businesses would benefit the public
First, proceeds would assist in balancing the
BUDGET and reducing the debt Second, they
would make possible tax reduction in the
future. Third they would provide new
sources of tax revenue running into very
large sums Fourth, their disposal would
eliminate the need for apprOpriating money
year after year to meet their operating anC
expansion costs.
5000