Driving {o a pointed conclusion, if] there is interference with the free Jdom of the markets, from any cause' jwhatsoover, whether by private m poly or by governmental policy, Feadjustmenis "are retarded and veneds of depression are prolonged.
'Based on the Marxian consumer'
[demand notion, the American Adminstration tried' to increase coassumer demand by directing the whole course fof their policy toward increasing consumer income and diminishing savings for investment purposes for the creation of new capital and for the maintenance of existing capital 'On the one hand, the Government! entered into vast relief expenditures, soldiers' bonus payments, agricultural benefits, N. R.A. increase in wage rates, and other policies aimed at the direct Increase of consumer daniand. whilst, on the other, the nation as had a'wide range of policies whi: inhibit the growth and utilization ef} capital, "Progressive income taxation run-hing to heights unmatched in any other country has made a startling reduction in the capital created by these in income brackets above 'US$15,000, 'The undistributed profits tax had dealt a deadly blow to cor-orate savings. The high taxes, moreover, have created a great shift from investments in industry to investments in non-productive tax-exempt securities. Moreover, the' feficieney of the markets through which investment funds pass from Investor to industry has been impair ed. The funds available for new capital have been greatly reduced. And the demand for new capital has. been greatly restricted by the apprehhensions which businessmen have had regarding the future, so_that they have preferred generally to use existing plant and equipment rather than to expand, or even, in many
Text read from the printed page and cleaned; old type leaves the occasional error.