Editorial: Who pays for ‘prosperity’?
Democrats appear to be relying heavily on “Roosevelt prosperity” as a pro-fourth-term factor at the November polls.
Prosperity? Sure, many people not in uniform are making more money than they were before the war. (Mr. Roosevelt was President then, too, incidentally.) But where does the money come from?
An analogy might be the case of a man who borrows $1,000 from a friend and then throws a big party for the generous pal. Should the latter feel a warm glow of camaraderie – or should he start worrying about the money?
The recent tax report of the research committee of the Committee for Economic Development estimated that “after the war the average cost of supporting the activities of the federal government, if spread evenly over the entire population, would be more than $500 a year for a family of four.” And a footnote added:
This would not be the full picture… It is estimated that state and local governments, after the war, will have to collect around $12 billion a year in taxes. Accordingly, the total cost of government in the United States after the war, if spread evenly over the whole population, would be in the neighborhood of $850 a year for a family of four.
Or put it another way. The national debt today is some $211 billion. It certainly will go past $250 billion before the war is over. The total population is around 136 million. Suppose, for simplicity’s sake, that the population consisted entirely of four-person families – 34 million of them. A little arithmetic shows that the average share of that $250-billion debt will be $7,353 per family. This is an obligation that a good many of us have neglected to put down in our personal budgets.
In short, “Roosevelt prosperity” turns out to be a patty at our own expense. Guests will be presented with the bill as they leave the festivities. And they will have to settle it – through taxes, or through inflation of one kind or another which will chop down the value of their savings and their income.
Of course, most of the expenditures have been necessary, because of the war. But he who attributes the pleasant state of his bank account to economic wisdom on the part of the White House, and expects more of the same indefinitely from that same erratic economic fountain, is living in a fool’s paradise.