Many people will think that it is not hnancially possible, while others will take the position that it is futile to talk about social security apart from attaining full employ ment. It should be clearly understood that such action would cost us far less than nothing in the long view. Prestige consumer healthcare products. The war is removing these resistances, especially to the establishment of the free movement of men and goods, partly by teaching us to overcome our niggardliness in the payment of compensation to those who are asked to make special sacrifices in the general interest, but even more by making it neces sary to build the whole world anew. Exporters obtain payment by drawing bills on importers abroad and discounting these bills at the national clearing fund. Such were most of Germany's prewar commodity agreements, within and outside Europe; and those between Britain and the United States with the objective of building special reserves of wheat and cotton there, of rubber here, and of wool in both countries.
In other words, they revert to the theme that a high rate of private investment, however desirable, is not The process of investment, if it increases productivity, has the effect of enlarging the capacity of the economy to produce goods and serv ices. It may well be that the passing of the American frontier so deplored by many students of business conditions will be replaced by new frontiers in South America and in Asia which will provide a continuing stimulus of great magnitude. If introduced abruptly it would create severe disturbances of transition. Throughout the thirties productivity increased tremendously so that we were able to reach the 1929 levels of real income with considerably reduced employment. Some symp nity for attacking it and only to a minor degree by what the observer according to his own standards may consider justifiable reasons for approving or dis approving of it. There is no doubt that gross national expenditure will rise higher if the war continues and maximum employment of both people and other resources is attained. A G R I C U L T U R A L PROBLEMS 293 shifts to a peacetime basis. Consumer products direct prestige wwc solutions scam. Lamont University Professor, Harvard University, and Chairman of Research Advisory Board of the Committee for Economic Development; Author of Economic Factors Ajfectiny /ndn3tria% Ee%a%ons Poticy in ^Vationa? A true understanding of the meaning and significance of governmental debt and of the general principles of over-all fiscal policy is essential to true "sound Rnance" on the municipal level. ON P R I C E CONT R OL A F T E R THE WA R 401 We Anon; only that divergent forces have been set in motion by an industrial revolution which has by no means run its course.
Even if the gain in exports had been sustained in the following year, Argentina would have found itself with a large import surplus which had to be corrected by foreignexchange-control measures, directed primarily against imports from the United States. I cannot do justice to these aspects here. This mode of classification is arbitrary, but useful. Fashion Marketing - Student Notes - Marketing Concepts -Student Notes Accompanies: Marketing Concepts 1 Directions: Fill in the blanks. The Marketing | Course Hero. It is not to be expected that a large program of foreign invest ment would be without risks and opposition. But real saving is a func tion primarily of real income.
Those who are optimistic concerning the prospects for a spontaneous postwar boom of some duration based upon private demand alone entertain this belief for one or more of the following three reasons: L They point to the impressive ease with which demobilization took place after the First World War. Third, the possible increase in private spending must be determined, taking into * Those readers who are not familiar with the meaning and implications of "economic maturity" for a nation will find brief discussions in an essay by Benjamin Higgins and Richard Musgrave, "Deficit Finance—the Case Examined, " PM bHc Policy (ed., C. Mason, Cam bridge, Mass., 1941), and in the book An E O M Program /or American ctm M C Dewtocrocy, " by seven Harvard and Tufts economists (Cambridge, Mass., 1938). Often they protect the strong against the weak, and restrict competitive adjustments making for lower production costs, instead of promoting consumption. To give private enterprise an equal chance, so that it should prevail wherever it happens to be more efRcient than government enterprise, the government could subsidize private production by a grant toward the installation and renewal of plant equal to the deficiency of the marginal cost (which will be equal to the guaranteed market price of the product) below the average cost in the moat efRcient government plant. In this chapter a conservative program of development has been discussed, but more radical measures are well within the range of possibility. Prestige consumer healthcare brands. When this is coupled with intelli gent planning of agricultural production on a worldwide scale, and with good will and intent as between nations, there is no doubt that people of all the earth will have the opportunity to enjoy improved health and a happier allround existence. My own personal opinion— admittedly somewhat vague—is that the ultimate solution will lie in reducing the cost of adequate housing, on the one hand, and in rais ing the incomes of the families now in the lower brackets, on the other. Therefore, I shall not discuss further the now extreme view that price-wage inflexibility is a necessary condition underlying the existence of unemployment, and that its removal is a sufficient or important remedial measure. A large amount of basic planning has been done, and it should be easy to lay out feasible Hood-control projects whenever resources can be spared for them during depressions. In addition, a number of state consti* There has been a 25 per cent decrease in the New York State personal income tax, and another reduction in tax rates is contemplated. There is a quite different and more formidable danger lurking in the reconversion process.
A further limitation, espe cially for the agricultural states, arises from the difficulty of assessing farm incomes. 134 POSTWAR ECONOMIC PROBLEMS If a country disregards the foreign value of its currency and increases effective demand at home (to the level which gives it full employment), the increased demand for imports by the newly employed will cause the country's currency to depreciate to the point where the higher prices of imports and exports (in the depreci ated domestic currency) have sufficiently discouraged imports and encouraged exports to make them equal to each other again. The ability of a nonfederal unit to maintain a high level of services, and to contribute to the disposable income of the community in times of depression, depends on its fiscal capacity, i. e., its ability to raise revenue. Either development would tend toward a more equal dis tribution of income than has prevailed in the past ^ boom periods when full employment was reached. The study is amongst the first to provide an experimental-based assessment and a unified model linking consumer attitudes towards mobile text ads with brand attitudes and purchase intentions. O Statistically, theoretically, and institutionally, everything points toward a consumption-savings-income pattern which is relatively stable, which is qualitatively predictable, and which changes only slowly over time. And even in the long run, it must hurt individual interests, although, according to accepted * From the short-run point of view A policy whereby two countries grant one another preferential duty reductions limited to certain amounts (quotas), so as to make sure that total imports do not rise, may have a certain stimulative value. The insatiable curiosity of ofBcial statisticians has not yet found its limit. With property taxes levied at high rates in most areas, an avalanche of delinquencies can be expected during a period of depression. In 1933 a study called o/ Cogent Cosf was begun by Dr. Hazel K. Stiebeling of the Bureau of Home Economics. The most sub stantial aid, beyond the program for liberating trade from national restrictions, would be the extension of long-term loans for the recon struction, rationalizing, and redirection of her industries and the replacement of lost shipping. A mere increase in the size of the population does not automatically ensure that the market for consumers' goods is going to be larger in dollar terms and the incentive for capital expenditure correspondingly greater.
Reasoning from the industry's records of the past and considering the deRciency in housing construction which will have accumulated, both during the depression and the war, it does not seem improbable that employment in new housing construction could expand to 800, 000 persons within a few months. How will the spread of labor organization and the shift of bargaining power to labor, accentuated by the war, affect these problems? Revelation through survey by scientific methods of the extent to which the dietaries of large groups among the American people are inadequate. Thereafter we might expect to suffer from a secular stagnation due to a chronic deficiency of investment opportunity as well as from the deep depressions associated with cyclical fluctuations. Others attach importance to the fact that as a result of the current struggle we will necessarily use up our stock of producers' and consumers' capital equipment in excess of replacement. All those bars to the effective func tioning of capitalism embody what to most of us are cherished achievements. What we mean when we say that we are for or against capitalism is that we like or dislike a certain civilization or scheme of life which is historically associated with the three economic features mentioned. Expansion of public-welfare expenditures— Federal aid to education, public health, old-age pensions, and family allowances. The trends are favorable in other directions.
The most important and most frequently discussed subjects for collective regulation are (a) move ments of goods, (5) migration of men, and (c) monetary standard and policy and the How of capital and credits. The main question is where to stop. Instead of accumulating an ever greater pool of unused inventions, we become synchronized some few years behind our maximum potentialities. Thereby to produce redundant money supply and low interest rates, and hence stimulate investment. We can afford as high a standard of living as we are able to produce.
Retention of progressive (graduated) tax structure and broadened tax base, with major emphasis on the individual income tax and less reliance on the corporate income tax. This is only 4 per cent above the 1929 figure, although gross national expenditure is assumed to be 32 per cent higher. We have seen how it is possible to mobilize the productive capacities of the country for war. Such a program would either prove financially impossible ere long or become some thing closely akin to the German under which everybody would be taxed for old-age insurance purposes but only the people in need would get beneBts. Every increase in imports seems to (and in the short run in most cases actually does) create more unemployment, and every reduction in imports through tariffs seems to add to home production and to augment employment. There are many arguments to be made for federalization, as well as arguments against it, but the most popular at this time is that such action is necessary to meet the problem of the expected large volume of postwar unem ployment. SOME BASIC CONSIDERATIONS For the peace period proper, one consensus seems in process of crystallization: the normal, over-all objective of individual effort and social policy—local, national, and international—is the persistent if irregular advance in planes of living, for families, communities, states, and mankind, according to their several standards and pref erences except as these may endanger advances elsewhere. Likewise, if we win the physical combat but lose the peace through stupidity in providing for a postwar world in which nations have a practical opportunity to live in peace and security, then, also, we may find it necessary to continue an economy designed essentially for purposes of war rather than of peace. THE BACKLOG OF DEFERRED DEMAND Undoubtedly this factor will be of the greatest importance in the postwar period.
Given the technological change which the war will inevitably bring, this is by no means necessarily the case. While it seems likely that a substantial part of this postwar foreign investment will take place through ofBcial agencies, there will almost certainly be considerable scope for private investment as well. Since Pearl Harbor, Administration leaders have repeatedly urged that the social security taxes be increased, but Congress has been deaf to these recommendations. First, no account whatever has been taken explicitly of obsolescencc during the war. The shrinkage of markets in general gives monopolistic advantages to markets which remain available. The government cannot escape responsi bility. In other words, corporate proRts constituted only a low percentage of a small national income— small in comparison with the income potentially realizable.
Either alterna tive is dangerous.