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SENATE 7923 One of the Themes of the Keynesian Phi­ Labor Force of 54,950,000

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SENATE 7923 One of the Themes of the Keynesian Phi­ Labor Force of 54,950,000 1961 . CONGRESSIONAL RECORD - SENATE 7923 One of the themes of the Keynesian phi­ labor force of 54,950,000. Contrast this, if in 1960. Did the people spend the addi• losophy is that aggregate consumer purchas­ you will, with our present picture of 66,- tional money? No, for some reason or other ing power will automatically produce· in­ 700,000 persons employed out. of a work they saved more. In 1969 they saved $23.4 creased consumer demand. ·This increased force of 70,600,000 people, giving an unem­ billion; in 1960 they saved $26.4_ billion. consumer demand wnr stimulate the econ­ ployment ·figure of 3,900,000 persons. This This reflects an economy which is based omy to produce to meet the demand. The is 5.6 percent of the labor force. more on plenty than one based upon scar­ economy in responding to meet the demand World War II; America becoming the city. will employ more men, and so we get full "arsenal for democracy" in 1939 solved the We have a lot of social problems to solve, employment. · great depression not Keynesian dogma or but thank the Lord they are no longer the I point out that this theory of economics was this following Keynesian dogma? I pr~blems based upon the centuries of eco­ is based upon the classical concept of the shudder at the thought. nomics which was predicated upon the law 19th and early 20th century when Lord The reason the Kennedy proposals include of scarcity. For the first time in the his­ Keynes was active. It is predicated upon Federal aid to education, Federal aid to de­ tory of man, I believe the problems that an economy of scarcity, when inde~d all that pressed areas, Federal aid for community face us are the problems arising out of the had to be done was to give more purchasing facilities, federally financed housing pro­ laws of economics based upon plenty. New power to the consumers and automatically grams, federally supported health care pro­ and tough problems are created all right they spent the _money for goods and serv­ grams, etc., is primarily to have the Federal and many of the problems revolve around ices. I have suggested, and I believe I am Government assume the job that the Keyne­ individual problems of scarcity • • • but right, that the U.S. economy of the 1960's is sian philosophy rests upon • • • get more they are not the old problems of aggregate not one based upon scarcity, but rather one money into consumption. The problems of scarcity mankind has been fighting for cen­ based upon plenty. Take the agricultural education, housing, community facilities, turies. Just as I have said in education, sector, for example. Even if we gave to health care, etc., are almost incidental in our society has gotten on top of the prob­ our consumers twice the amount of pur­ their minds to getting the aggregate pur­ lem of mass education, quantity education, chasing power they have now they would not chasing power up. That is why people which no other society has achieved be­ buy any more agriculture produce. Indeed, like myself who are concerned about solv­ fore. Now for the first time we can begin under doctor's advice Americans are actually ing educational, health, and housing prob­ to attack meaningfully the problems of qual­ eating less and more selectively. Therefore, lems have such a difficult time debating ity education, and the problems involved in increasing -aggregate purchasing power will these people. We concentrate on meeting quality education I submit are considerably not help solve the farm problem. We ac­ the social need involved in education, health, more difficult than the problems of quan­ tually are producing more than we need or and housing. We point out with effective­ tity education. our people can eat. I have to watph myself ness, I believe, that we do a much better Yet what are the Kennedy proposals on with you, so I hasten to state that· I am job solving these problems without the Fed­ education? Keynesian-getting the Federal talking, as the Keynesians are, in the ag­ eral Government getting massively into the Government to spend more money and di­ gregate. Of course, there are people in our picture. recting the attention to the problems of society who could eat more, beneficially, if If your interest is primarily aggregate pur­ quantity education which have largely been they had more money, but as important is chasing power being implemented by the solved. In this process we damage the work their problem from a humane standpoint Federal Government, of course, you aren't that is going forward in quality education. there are not enough of these people in going to be too concerned about what Fed­ The Federal Government· can help in im­ America today to have any real impact on eral programs you advance in order to bring proving quality education so let's direct our agric;ultural surpluses. In other words, tak­ this about • • • if one doesn't work, an­ attention there. ing care of the poor will not solve these other might. And so it is with the Keyne­ If there is disagreement on these two aggregate economic problems. We must, sians * * * they are looking around for al­ different fundamental approaches let's de­ therefore, direct our efforts at solving the most anything that would justify Federal bate them honestly and see if we can resolve distributive problem of getting ample good expenditures. That is another reason I them. I say the Keynesian approach looks living to all our people on its own bottom. worry about them. War is the easiest thing backward to the early days of the 20th This is a special problem. It is not simple with which to justify Federal expenditures. century and that this approach wm damage, and it cannot be sqlved by dealing in Key­ Now, I am not suggesting these philosophers not help to solve the problems that face nesian aggregates. It can be seriously dam­ would actually take us to war to implement us in the 1960's. President Kennedy and aged, however, along with our entire system their economic philosophy. But I think it his advisers disagree. However, they, and. by treating it in an aggregate fashion. is perfectly right to state that making an you, try to put the debate on the basis The next step in Keynesian philosophy is economy work based upon peace is not a that they are interested in the people and to have the Government enter the picture passion with them as it is with me. The are forward looking, that their opponents, to bring about the increase in aggregate way in which · the Keynesians ignore the which includes me, are not interested in consumer purchasing power. This was the impact of World War II and the Korean war the people and are backward looking. That philosophy of the New Deal of the 1930's. in propounding their philosophy is calloused begs the question. Which is true? Let's Even in those days this did not work and it and dangerous. start discussing the question itself. Let's is doubtful how much it may have helped. But look at consumer purchasing power put out in the open our conflicting facts In 1938, after 6 years of the Keynesian ap­ during the recent recession. Did it go and arguments and see which point of view proach, we had 10,390,000 people unem­ down? It did not. Total personal income justifies the epithet "mossback". ployed (according to the old statistics • • • in 1959 was $383.3 billion; in 1960 it was Sincerely, modern statistics would make this an even $404.2 billion. Disposable personal income THOMAS B. CURTIS, greater figure). This was 19 percent of the was $337 .3 billion in 1959 and $254.2 b1llion Your Congressman. tions and institutions in which liberty is actions and words which may hinder the SENATE enshrined. achievement of a just and lasting world­ In this day of global conflict for the wide peace of good will. MONDAY, MAY 15, 1961 bodies and minds of man we pray that We ask it in the name of Jesus Christ, The Senate met at 12 o'clock meridian, Thou wilt purge and cleanse our own our Lord. Amen. and was called to order by the Presi­ hearts "that we may be found worthy to dent pro tempore. march with the armies of emancipation which bring both liberty and release THE JOURNAL The Chaplain, Rev. Frederick Brown from the want and woe which beset so On request of Mr. MANSFIELD, and by Harris, D.D., offered the following many millions of Thy children and grind unanimous consent, the reading of the prayer: them into the dust of poverty. Journal of the proceedings of Thursday, Our Father God, whose service is per­ In this day of battle when there is May 11, 1961, was dispensed with. fect freedom, we praise Thee for the sounding forth a trumpet which must vision of liberty which, like a bow of never know retreat, we praise Thee for promise, arches the dark skies and in­ the courage, the labor, and the sacrifice REPORT OF A CO:MMI'ITEE SUB­ spires mankind to overthrow all despot­ of all those who are anywhere challeng­ MITTED DURING ADJOURNMENT ism and to break the fetters of oppres­ ing and fighting the enemies of freedom. Under authority of the order of the sion. In this day on ages telling, good Lord Senate of May 11, 1961, Mr.
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