The people's voice. [volume] (Helena, Mont.) 1939-1969, 1954-04-30
My Two-Bits Worth !.
By LEVERNE HAMILTON,
Thompson Falls

/
By LEVERNE HAMILTON,
Thompson Falls
Some time ago 1 expressed the hope
in one of my periodical "brainstorms'
that some sagebrush philosopher OF
"hillbilly pariah" would take time out
| from chasing the elusive jackrabbit to
| explain a few economic facts which the
| Eisenhower economists either failed
to recognize or refused to admit.
| Since that time several have sug-
| geSted to me that | undertake the task
myself. One acquaintance said, "Well
Hamilton, you answer the description
Che didn't say whether he meant sage
brush philosopher or hillbilly pariah)
why don't you do it yourself?"
Not being of the type to take a
dare of that kind especially when it
offers an opportunity to make a few
nasty remarks about the inconsistent
cies of our highly overrated best
minds" (and jackrabbits being scarce
animal in this territory L decided to
spend few of my long evenings, while
waiting for prosperity to come around
that corner in an effort to explain the
incongruities of our boom and bust"
economy in language simple enough
so that even a Republican economist
can understand it.
The first question: What in our
capitalistic economy is responsible for
these boom and bust" cycles, or as
the economists state it prosperity"
and "receSSionS"?
PROFIT-sOLEY RESPONSIBLE
There is one item in our system of
private enterprise which is primarily,
if not solely, responsible for that con-
dition and that is PROFIT.
have stated before, and I repeat
with Sn0OaSGfnl a.
ton, that profit is a payment for which
no service was ever performed. 1t has
no place in a stable or balanced econ
.omy, and WHY?
First, let this be distinctly under
stood. Every worker, whether with
hand or brain, is entitled to just and
adequate compensation for the service
which he renders to society (our hu-
man, or inhuman, race)
Thus it follows that every business
man, merchant, storekeeper, manager
of an industrial plant or even the head
of General Motors, General Electric,
YES. even some of our elected Off
cation for the service which they are
rendering to the public.
The man then, or group, who start
up an industry, whether it be farm
ing, manufacturing farm machinery,
or motor cars or other Industrial
cost of production which includes his
investment cost of material, wages of
labor. depreciation and all incidental
expenses and to that he must add
WAGES OF SUPERINTENDENT for
himself, for the SERVICE he performs
to the public in providing that prod
net for public consumption.
Let us say then that every service
rendered in every productive enter
prise has been totaled up in the cost
of production, with no profit added,
and say also that the cost of produc-
ton of all production is 100, every
consumer then will also have been
adequately compensated for his serV-
ice and all consumers can then pur-
chase the entire product of our IN
dustry if sold at cost of production,
for the total compensation of all con-
sinners will also equal 100. But now
let us say that an item Of PROFIT IS
added (and for the sake of example
we will call that item the number 1O)
If Gree enterprise" it is often as hlgh
as fifty and sometimes in the thou
sands. If we add the number 10 as
nrofit then the price al when our
is sold will be ITO and the
consumer purchasing power remains
at 100 so that portion OF our pro
duction can not be purchased even
though the consumers desire it. This
leaves the national economy unbal-
anced. results in what Eisenhower
called "OVERPRODUC-
TION" back in the roaring twent1es,
and with the profit item still being
added as time goes on brings about
a PROCESSION" as industriallsts cur
tail production to reduce the STOCKS
of goods consumers cannot purchase.
Edward Bellamy pointed this out
very clearly in his Parable of the
Water Tank" many years ago, but our
'Rest Minds in the economic field lg-
nored. or failed to recognize the facts
So why, should a "Hillbilly" or even
..Sa O. ebrush Philosopher get the idea
that the Eisenhower economists would
accept such an explanation? Henry
George, in about the same era gave
very clear solution of our economic
ills in his book Progress and Pow
erty." Unfortunately, however, his
language was highly involved and in
so much detail that it's reading was
difficult for the average
No doubt some of our "Best Minds"
# they chance upon this little explana-
ION will find considerable fault and
nav even consider it "subversive," may
even set the F. B. I. on my trail again,
to the F. B. I.
Next time [ have "brainstorm"
III discuss WHO owns WHAT.