The doctrine of Marx is-that working people produce more than the: receive in wages, and, therefore, cannot buy back all they pro-Guce—the "surplus value" going to the owners of land and capital goods and thus causing periodical gluts of over-production. But critics of Marx have pointed out that buying power does not come only from the labourers, and that ihe owners of Jand.and the owners of capital goods are also consumers.
With regard to buying power and the notion of over-production, it is to be realized that the full buying power to buy all that is produced is derived completely from the labourers, employers, land owners, retired capitalists and other recipients of income collectively, who, together Driving to: a pointed conclusion, if there is interference with the frecdom of the markets, from any cause whatsoever, whether by private niwsө- poly or by governmental pulley readjustments are retarded · and periods of depression are prolonged.
Based on the Marxian consumer demand notion, the American Administration tried to increase consumer mand by directing the whole course of their policy toward the creation of new capital a the maintenance of existing capitzi On the one hand, the Govern entered into vast relief expenditures, nts, agriculture increase in xaue rates, and other policies aimed at the direct increase of consumer, arara, whilst, on the other, the nit.on had a wide range of policies whith inhibit the growth and utu tion c capital.
"Progressive income taxation running to heights unmatched in other country has made a startling reduction in the capital created by those ® in income brack above U.S.$15,000. The undistributed profits tax had dealt a deadly blow to cor porate savings. The high taxes moreover, have created a great shift from investments in indu.try to investments in non-productive tax-exempt securities. Moreover, the efficiency of the markets through which investment funds pass from investor to industry has been impaired. The funds ay for new capital have been greatly redyıced new capital restricted by the which businessmen. have had regarding the future, that they have preferred generally to use existing plant and equipment rather than to expand, or even, in many cases, to replace obsolescent machinery. There has been great impairment in the industrial capital of the country in recent years."
Text read from the printed page and cleaned; old type leaves the occasional error.