Visual display of the Aldo Leopold papers : 9/25/10-2 : Organizations, Committees

				
 
 
 
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increased total produtioa. In this country we heb forty-five million wtoers

 
employed in 1939. After this war we will ned sxty million JobU to give fu1l

 
employment. 
 
          Serious unemployment after tals W   means depression.  Ad another

 
intense world-wide depression may mean that demoratic capitalisu as we 'now
It 
 
will be wiped oat never to return in this age. 1he question before us is
whether 
 
we can eliminate depression and unemployment by methods wAih preserve our

 
fundamental liberties or whether circmistances and lack of esoial Inventiveness

 
will drive the worll to some sort of totalitarianisa. 
 
          But we need cousrageous action, not alarm. Is recent years, we
have 
 
learned  rash about the ways in which employment is created.. Ie know, for
example, 
 
that the total stream of purchaslg power in our economy is deteruined by
the 
 
way in which we dispose of our noney incomes.  It ts the spending of ico*es
for 
 
consumption or the aaking of *neow investmnts that *eeps a money eonomy 
 
operating. Money sorie by individuals mvst be invested If it is to contribute

 
to the volume of Jobs. In short we ean maintain a high level of employmeat

 
only by investing sufficient money to bring our total speodine up to the
level 
 
required to maintain purchasing power. 
 
          Te have all the materials fer a great a   avae in health, omfort,
a 
 
security if we are vise enou   aa  eourageous enough to use the resourees
at 
 
our disposal. Sat central to this achievement is tho tacs of stabilising
our 
 
eeenomy, to prevent depreseion and create the secure conditions for expansion

 
of opportunities   Isn th effort, the fisal polioies of the feoral goverment

 
have a major part. 
 
          Piseal pelicies teal with the use of the financlal powers of gaverument
- 
 
taxing, borrowing, spending and. Inding. Who use of those great powers Influences

 
the oeration of the ihole economy   the preblen is to use them eonstuctively
wan 
 
  

					
				
					
 
 
 
 
 
 
deliberately, with a view to the probable consequeneso In the brief space
of 
 
this report, only a few of the limits to good- paplicy can be pointed out.

 
           In terms of employment, we need tax programs which raise large
suns 
 
of money, without disrapting the continued operation of the economy. In the

 
postwar era the federal government will need some 16 to 20 billions of dollars

 
annually, to meet interest charges of approximately 6 billions of dollars
and 
 
other prospective expenditures. Bt this revenue must be raised in ways which

 
do sat deplete mass consumption power or we shall bring on a depression.
$ales 
 
taxes are doefationary. Yet this is not the whole story in tamation. 
 
          Our fisal policy mast eneourage private Investment as well ais
onsump- 
 
tion.  It is this need that makes the current discussions of the influence
of 
 
taxation upon "incentives$ so Important. Taxes which penalize the taking
of risk 
 
deter investments. But this is also a big and difficult question, and one
whigh 
 
must be viewed reasonably. The critical questions here turn upon the taxation

 
of corporations. Two points san be established which may help understand
the 
 
limits to tax adjustments to stimulate private investment: 
 
          (a) Corporations are going concerns which are something more 
 
              tban merely a screene for individual stoekholders. They 
 
              are real units and as such they should be taxed. 
 
          (b) Tax programs designed. t ease the burden of corporate taxes

 
              should be so designed that they do not penalise small 
 
              businesses while allowing the big corporations to grow 
 
              bigger and still bigger. 
 
          Taxation policy mast be a balancing of many different kinds of
taxes 
 
by the various units of government. And there can be no really simple tax

 
program that is adequate. Heweer, the general principles of taxation which

 
have stood the test of time are still good. especially taxation aecording
to