America's future Is not only of] concern to every citizen in the United States but to people in the world at large, and, in particular, to all out here in China, Tt therefore, of much interest. for reader to understand, and to be kept posted with, the important eco nomic changes that are' In process Fortunately, freedom of speech in that Now World permits of. mental Might being thrown on: the problem by many men of Arst-rate Intellect and long experience. "Their labour and brainwork Is at the disposal of the layman, who should give close application to the findings to receive some valuable counsel as regards the present and guidance for the future, Going to the meat of such research, Is to be learned that the flood of Government measures that have issued forth, ever since the Demo-popular support, labourers, and that the owners Hand andthe owners of capital goods are also consumers, 'With regard to buying power ana the notion of over-production, it is to be realized thatthe full' buying power to buy all that is produced is derived completely from the labour-Jers, employers, land owners, retired capitalists and' other recipients of Income collectively, who, together with the Government as tax-gatherer, Feceive alt of the Income from pro-'As the economist Cairnes puts it, every commodity may be looked upon a supply or as demand, and, in the aggregate, supply and demand are not merely equal but they are iden tically the one and the same thing. Therefore, the notion of a general overcproduction, that is, an over supply of every kind of article or service is impossible, since buying' power, being the obverse side of it, Increases as production fs increased.
Maladjusted Production What then, Mr. Aldrich asks, meant by over-production that has a rational meaning? Merely this—that there can be maladjusted production There can be too much of some things and too little of others produced. There can be over-production Ju particular ines, but not a general all-pervading over-production. - What happens when errors of this kind secur, is that the products of the articular things that are over-produced have to go very low in price, fand then these producers in the over-worked field find their capacity to buy cut so heavily that they are obliged to stop or considerably diminish buying the goods they usually reed and which are created by other producers, who in turn come to have unsold foods on their hands also. It then that what looks like a general failure of aggregate consumer power to keep pace with agareyate produc ton, thus causing depressions, as they And from this the conclusion ide that the remedy for depres-slons Is to augment consumer purchasing power by increasing Government spending.
Text read from the printed page and cleaned; old type leaves the occasional error.