Chase, Stuart. Where's the money coming from? New York, Twentieth century fund, 1943. 179 p. HJ257.C5

Contents: Elaborates the principle of a compensatory economy, under which "businessmen largely own and operate the means of production, but where the government underwrites full employment by its control of existing financial machinery."

Eccles, Marriner S. "Where's the money coming from?" Survey graphic (N. Y.), May 1943, v. 32: 189–191. HV1.SS2

Conclusion: There is no justification for government expenditures for employment in times of full employment. But it is the government's responsibility to exert its fiscal and monetary powers so that more funds will go into consumption rather than savings in order that a balance may be achieved which is vital to production and employment.

Fine, Sherwood M. Public spending and post-war economic policy. New York, Columbia university press, 1944. 177 p..

HC106.4.F44

Contents: Discusses public spending, pump priming, etc., and their place in post-war economic policy. Reviews and appraises compensatory spending and doctrine of secular stagnation, and public-debt limits. Goldenweiser, E. A. Post-war problems and policies. Federal reserve bulletin (Washington), Feb. 1945, v. 31: 112–121.

HG2401.A5

Conclusion: Every effort should be made to balance the budget and to diminish the debt during periods of prosperity, but in a recession, little attention should be paid to the budget.

Hahn, L. Albert. Compensating reactions to compensatory spending. American economic review (Evanston, Ill.), Mar. 1945, v. HB1.E26

35: 28-39.

Contents: Review of "fallacies" in some of Keynes' implications with respect to spending, as well as the general assumption underlying the entire system.

Halasi, Albert. The problem of full employment. International post-war problems (N. Y.), Dec. 1943, v. 1: 41-85.

Contents: Reviews the arguments for and against a policy of compensatory public spending. Conclusion: Strongly favorable to the policy of compensatory public spending. See especially p. 75-78.

Survey of recent American literature on post-war economic security. International post-war problems (N. Y.), Dec. 1943, v. 1: 120-137.

Contents: A concise statement of both sides of the controversy surrounding the place of compensatory public spending as a means of creating jobs. Bibliography. See especially p. 120-122.

Hansen, Alvin H. Fiscal policy and business cycles. New York, W. W. Norton & Co., 1941. 462 p. HB3711.H315

Contents: Discusses the role of fiscal policy with respect to unemployment, the shifts in government expenditure and in Federal tax structure, develop ments in budgetary theory and practice, and the role of the public debt. Also considers the cyclical aspects of fiscal policy and adjustment of tax rates in the business cycle. Conclusion: Fiscal policy must be conceived in terms of impact upon the whole economy. Public debt, taxes, and changes in the money supply are all part of a balancing mechanism, the reliance on each depending on a variety of considerations. When private business outlays decline, the government alone is in a position to go forward and sustain income through increased public expenditures. Whether a public debt should be reduced depends exclusively upon the general economic situation. Etc. etc.

Harris, Seymour E. The price of prosperity. I. Spending and employment after the war. New republic (N. Y.), Jan. 15, 1945, v. 112: 73-76. AP2.N624 Contents: Discussion of the relationship between public debt, national income, and employment. Conclusion: Increase in public debt has been beneficial in some respects, by increasing the availability of liquid assets. In a growing economy the rising debt need not concern us; in a declining economy, we rely on public investment only because in its absence national income may fall far more. Our national income, in 1960, despite a

$400 billion debt, should be more than three times that of the thirties. Higgins, Benjamin, and Richard A. Musgrave. Deficit financeThe case examined. In Public policy, ed. by C. J. Friedrich, and Edward S. Mason. Cambridge, Mass., Harvard university, Graduate school of public administration, 1941, p. 136-207. JA51.P8

Contents: Surveys the argument (from the economist's point of view) for public spending to provide jobs. Conclusion: Though deficit finance is no panacea, provides many difficulties, and may be detrimental, it does provide (under favorable conditions) an effective means of combating underemployment, and is a weapon in our arsenal of public policies.

Liberal party committee on full employment. The government's employment policy examined. London, Liberal publication department, 1944. 7 p. HC256.4.L4 1944

Conclusion: The British white paper (Cind 6527) has a basic error in it with respect to balancing the budget. Even a temporary unbalance is ineffective if rule of balancing over a comparatively short period is enforced. A truly balanced budget is one which brings the whole economy of the country into balance. There is no danger in deficit financing so long as burden of interest expressed in proportion to total income of the nation does not rise. Pierson, John H. G. Fiscal policy for full employment. Washington, National planning association, May 1945. 54 p. (Planning pamphlets, No. 45.) HC101.N352 No. 45

Contents: Analyzes reasons why a positive fiscal policy is essential for assuring full employment. Conclusion: Because savings will tend to be too large and spending too small, automatic forces cannot be counted upon to bring about a sufficient volume of effective demand after reconversion. Some government expenditures for health, education, housing and conservation will help expand individual purchasing power, but direct expansion of the incomes of the lower income groups is preferred. Eventually this group must be aided by a more progressive system of taxes, expansion of social security benefits, and higher wages, but in the meantime supplementary fiscal action is necessary. Such action would include (1) an underwriting of consumer spending by allowing offsets to taxes, and (2) a reserve shelf of useful public works and work projects. Protections against over-spending and inflation are also provided.

Ruml, Beardsley, and H. Christian Sonne. policy. Washington, National planning 42 p. (Planning pamphlets. No. 35.)

Fiscal and monetary association, July 1944. HC101.N352 No. 35

Contents: Reviews the relation of fiscal policy to full employment. Conclusion: Government loans and expenditures can be used to assist in maintaining effective demand. Public expenditures cannot be expected to level out the business cycle, but they should be planned to stabilize the construction industry. Deficits must be accepted in time of unemployment, but we cannot dismiss the debt as of no importance because we owe it to ourselves. U. S. National resources planning board. After the war-full employment, by Alvin H. Hansen. Washington, Govt. print. off., 1943. 22 p. HC106.4.A25 1943d

Conclusion: Policy with respect to balancing the budget and retiring debt should depend on economic conditions. A public debt internally held has none of the essential earmarks of a private debt. See especially p. 6-8.

Voorhis, Jerry. Beyond victory. New York, Farrar & Rinehart, 1944. 240 p. U21.V6

Conclusion: Deficiencies in purchasing power should be relieved not by increasing interest-bearing debt but rather through debt-free money. See especially p. 108.

8. Tax Policy

The items listed here discuss the relation of taxation to full employment.

Beveridge, William H. Full employment in a free society. New York, W. W. Norton, 1945. 429 p. HD5767.B42. 1945

Contents: In appendix C, by Nicholas Kaldor, are discussed alternative methods of securing full employment by fiscal policies; basic alternatives are: increased public expenditure covered by loans, the same covered by taxation, increased private spending brought about through remission of taxation, and the same brought about through changing the incidence of taxation or imposing a combined system of taxes and subsidies. See especially p. 345–349. Boulding, Kenneth E. The economics of peace. New York, Prentice-Hall, 1945. 278 p. HB171.B63

Conclusion: Proposes an "Adjustable tax plan" under which the rate of income tax would depend on the movement of money income during the preceding month. Thus, if there is a specified rise in money income, the tax rate will be increased to prevent inflation If money income has fallen, the rate will be lowered to counteract this decline in income and so to prevent deflation and unemployment. See especially p. 160–182.

Committee for economic development, Research_committee. A post-war Federal tax plan for high employment. New York, the Committee, August 1944. 47 p. HJ2377.C62

Contents: Presents a tax plan designed to achieve a high level of production and employment. Conclusion: The graduated personal income tax should provide at least one-half the Federal revenues needed, excise and sales taxes and taxes applied directly against business operations should be lightened, present serious inequities should be removed, and taxes heavy enough to stop the uninterrupted rise in Federal debt and to produce a surplus when a high level of employment and production is reached.

Eccles, Marriner S. Possibilities of post-war inflation and suggested tax action. Federal reserve bulletin (Washington), Mar. 1944, v. 30: 222-227.

HG2401.A5

Contents: The place of taxation in the full-employment problem and suggestions for action.

Fernald, Henry B. Taxation and employment. Mining congress journal (Washington), Apr. 1945, v. 31: 40-41, 44.

Conclusion: Tax reforms recommended in the interest of high employment include repeal of the excess profits tax, tax rates low enough to maintain incentive for investment and business activity, adequate allowance for capital return, tax laws and regulations easy to understand. Opposition to undistributed profits taxes is expressed.

Goldenweiser, E. A. Post-war problems and policies. Federal reserve bulletin (Washington), Feb. 1945, v. 31: 112-121.

HG2401.A5

Conclusion: Taxation should be viewed as part of the social and economic program, and designed to encourage progress. Perhaps we should have a flexible scale of taxation by which the administration would have authority to give tax incentives for construction during periods of contraction.

Groves, Harold M. Production, jobs, and taxes. New York, McGraw-Hill, 1944. 116 p. (A Committee for economic development research study.) HJ2377.G74

Contents: Study of a tax system which will help achieve higher production and more jobs. Conclusion: Fairness, adequacy, and incentives should be balanced. Incentives are impeded more by business taxes than by personal taxes on the investor. Reductions immediately after the war should be conservative, major reductions to be made thereafter. Peacetime revenues and expenditures should be balanced at reasonably high levels of income and employment; at times a surplus should be produced.

Hansen, Alvin H., and Guy Greer. Toward full use of our resources. Fortune (N. Y.), Nov. 1942, v.26: 130-133+. HF5001.F7

Conclusion: High taxes will be needed during the transition period to prevent price inflation. But during peacetime, if there is to be enough effective purchasing power to provide full employment, low-income groups must not have their already inadequate income further lowered. Rather, progressively higher taxes must be imposed on large incomes, and there should be a shift away from taxes on business as such. Special low rates should be imposed on income from new investment. See especially p. 176, 178. Howenstine, E. Jay. The economics of demobilization. Washington, Public affairs press, 1944. 336 p.

HC106.4.H67

Conclusion: Taxation should be a flexible instrument throughout the transition. Wartime levels should be maintained during first post-war year, and then the burden should be gradually shifted from lower to upper income classes. See especially p. 25-26, 63-64, 319. Johnston, Eric. America unlimited. Garden City, Doubleday, Doran, 1944. 254 p. HC106.4.J64

Conclusion: Our taxes are not objectionable because they take too large a slice of private income, but rather because they take their slice in a manner best calculated to discourage and prevent job making.

Kimmel, Lewis H. Post-war tax policy and business expansion. Washington, The Brookings institution, 1943. 43 p. FJ4652.K44

Contents: Discussion and recommendations with respect to a tax system. Conclusion: Business expansion must be provided if there is to be full employment, and tax policy is one of the most important if that expansion is to be achieved.

Magill, Roswell. Business expansion and the tax structure. Academy of political science, New York. Proceedings. Jan. 1945, v. 21: 28-34.

H31.A4

Contents: Reviews some of the principles that should govern the framing of the post-war tax structure, and some of the problemns to be met. Conclusion: The tax system should be devised principally for revenue purposes. A tax system cannot bring about prosperity, but a bad system can make business expansion difficult or impossible. The excess profits tax should be repealed, double taxation of corporate dividends should be eliminated, individual income tax rates should be lowered somewhat, and perhaps the exemptions should be raised and a 5-percent retail sales tax substituted. Nathan, Robert R. Mobilizing for abundance. New York, Whittlesey house, 1944. 228 p. HC106.4.N32

Conclusion: Tax incentives should be granted for new investments, taxation should be more progressive (being made lighter in lower brackets where people will spend more). Progressive taxes should play an increasing part in financing social security.

National planning association. National budgets for full employment. Washington, National planning association, 1945. 96 p. (Planning pamphlets, Nos. 43 and 44.) HC101.N352 Nos. 43-44

Conclusion: To decrease the amount of income withdrawn from the flow of private purchasing power, taxes can be reduced well below wartime levels, while still providing revenues for a sizable Government budget. Increased expenditure by individuals could be approached by a tax directed at unused savings. Taxes laid in such manner as to reduce the effective consuming power of individuals can be changed.

Newcomer, Mabel. Post-war taxes and full employment. Survey graphic (N. Y.), Feb. 1945, v. 34: 60-62+. HV1.S82

Contents: Briefly reviews several of the principal proposals for post-war tax plans. Conclusion: If the acceptable goal of full employment is to be attained, taxes must be shaped to that end. However, it should be noted that full employment is the first essential to solution of the tax problem, rather than tax policy providing the solution to the problem of full employment. Pierson, John H. G. Fiscal policy for full employment. Washington, National planning association, May 1945. 54 p. (Planning pamphlets, No. 45.) HC101.N352 No. 45

Contents: Reviews basic tax policies and their relation to full employment. Conclusion: A good tax system is effective in promoting full employment. It would also balance the budget unless by so doing it conflicted with full employment. To the extent that taxes take away from consumers money that would be used for consumption there is no increase in production, but to the extent that taxes take away income that would not be spent a contribution is made to employment. Thus government spending should be based upon taxes levied chiefly on those with substantial incomes. Excise taxes should be reduced. About half of Federal revenues should come from individual income taxes, personal exemptions from income tax should be raised to the amount considered to be the minimum requirement for an American standard of living; substantial reliance must be placed on the corporate income tax. Estate taxes should be raised very considerably.

Ruml, Beardsley. Cooperation of government and business for prosperity. Commercial and financial chronical (N. Y.), May 24, 1945, v. 161: 2277, 2306-2307. HG1.C2

Conclusion: Tax rates should be lowered to the point where they will balance the budget at an agreed level of high employment and then left alone except as there are major changes in national policy. The principle of progressive income taxes and estate taxes as the best way to avoid interference with purchasing power should be held onto. Important excise taxes should be kept for the time being, the rest eliminated.

Ruml, Beardsley, and H. Christian Sonne. Fiscal and monetary policy. Washington, National planning association, July 1944. 42 p. (Planning pamphlets, No. 35). HC101.N352 No. 35

Contents: Reviews post-war tax problems, recognizing that taxation should contribute to attaining high employment, though the system will be determined by many other considerations. Conclusion: Tax recommendations are based on 2 propositions: (1) revenues should balance expenditures when 55 million persons are employed and should provide for amortizing the debt when employment exceeds that level; (2) business should be permitted generally to conduct its affairs free of Federal income-tax considerations. Shields, Murray, and Donald B. Woodward. Prosperity: We can have it if we want it. New York, McGraw-Hill 1945. 190 p. HC106.4.S53

Contents; Outlines a system of post-war taxation designed on the theory that we need a tax system under which capital (both individual and corporate) will come out of the storm cellar and get back to work providing better tools for more employment. See especially p. 147–153.