Tabor City tribune. (Tabor City, N.C.) 1946-1991, 1958-02-26
No
Comment
by James w. Douthat


drive to plunge the nation into
q socialistic spending spree I'M
der the guise Of curing a re-
cession. In taking this attitude,
President Eisenho xer and his
business advisers have laid
themselves open to attacks from
political opposition-and the
firing has started on all sides.
The President has said that
March will see the beginning OF
the end of the downturn in the
economy provided 1--WE apply
ourselves with confidence to
the job ahead" TIE effect OF
the Presidents declaration may
be to slow up the movement in
Congress to rush through to
passage huge puoiic works bills.
But Mr.. Eisenho over also has
riSked his political prestige.
Some of the proposals now
being strongly urged in Con-
greSS are:
A huge public works pro-
gram, with emphasis on build
ing hydroelectric dams in COM
petition with private business;
Launching the nation on n
huge atomic power plant pro-
gram in opposition to private
industry:
Tremendous increase in de-
Tense spending - cancellation
of Eisenhower proposals to turn
some duties and responsibilities
over to states;
Billions for new aids to farm
ers and for rebuilding cities;
Legislation for more housing
subsidies, more social security,
more government aid of vari-
Gus kind.
This program - advanced in
the name Of providing jobs -
unquestionably would lead to
a federal deficit OF several bill
lion dollars in each of the next
few years.
The real motive behind many
of the proposals, OF course. is
the consistent drive of some
forces 10 involve the federal
government in Soc;alistic SCH
cmeS, to reduce the role of
states, TO increase government
controls over the economy, to
make big government bigger.
Secretary of tho Treasury
Anderson appears to be strong
ly supporting White House re-
SistanCe to extreme measures,
which could deal q heavy blow
to private enterprise. He en-
phasiszes the duty Of all citiz-
ems to aid in promoting proSp-
Gritty. In a recent speech he
said:
I'm our decentralized free
enterprise system, the mement-
UNI of the economy comes from
the millions OF decisions being
made all over the country by
businessmen, workers, invest
orS, houSewiveS-all of US, in
every walk Of life. 1t is in this
area, most importantly. that
each one Of us needs to assume
serious responsibilities"
Mr.. Anderson says that part
of the economic readjustment
has occurred. and he thinks
business spending may rise.
While business has spent huge
sums for plant Eodernization
and new plants, he says that an
increasing proportion of this
investment was required to re-
place capital values currently
being used up"
Thus, he said The fear ex-
pressed by some that I'VE have
overexpanded and have much
more new capacity than we will
need would seem to be exag-
] gerated."
| THE TAX OUTLOOK-There
is no longer any dougt thai
there is a strong demand il
Congress for tax reduction.
This is due to many factors
Protests for years against high
and discriminatory income tax
alton have made m impression
The urge of Congress to cut
taxes in an election year i.
present. There IS q recognition
that wartime levies have con-
tinucd far beyond q reasonable
period.
But there is increasing tall
also of using tax relief to com.
bat the business dUwnturn-sC
much so that both Democrat!
and Republicans say they ar,
studying the problem. Som,
members of Congress insist tina
tax reduction would act NOR,
quickly as tonic for the econ
omy than public works or de
Tense spending. And impressive
testimony mas been given t
Congress that cut in high in.
dividual and corporate incomt
tax rates would not only pro.
vide justifiablc reform bu
would prove most effective o
all in stimulating business.
=