Is Ecoomic Recovery in Sight?
By Henry J. Rosaner Is Economic Recovery in Sight? Analysis Shows That Trend Toward Improvement Is Only Seasonal—No Sign of Increased Buying Power—The Socialist Task. "THE spokesman of American...
...They ••• no market for their products...
...At the end of lature wil1 08 "ked by the city October after three months of «dmiristration in January to resteady improvement, it stood at Peal laws protecting the salaries the high level of May 1932...
...Comrade Feigenbaum was not only a good writer and an excellent speaker and lecturer, but a good organizer snd executive...
...Sines only a minority of corporations will follow the policy of the telephone company in the near future, to judge from the vary meager response thus far, the net effect in reducing the army of jobless will be almost negligible...
...tries was only 2.8%, and if then had not been the large increase lr seasonal industries to counterbalance the decrease in otheri there would have been no net increase...
...he wss the first General Secretary of ths Workmen's Clr?Socialist Party after ths split in ths old Socialist Labor Party...
...The best barometer of economic conditions in the United States is the index of factory employment and payrolls for New York State compiled by the State Department of Labor, based upon employment and payroll reports from representative factories employing 38% of the factory workers in New York State...
...The owners of industry, s. g. New York Telephone Company, naturally refuse to do this...
...It is to<J bad that Comrade Benjamin Feigenbaum died after a long illness which had kept him from active participation in party work for many years...
...The moral is plain...
...At the last session this effort would have succeeded if it had not been foi the opposition organized by Congressman LaGuardia...
...Crippled by premature invalidism, he passed the last years of his life in enforced and agonizing inactivity, and while he followed every step in the tortuous developments of our movement with keen joy at its victories and pain at its set-backs, his weak body could not keep pace with his ardent mind...
...Benjamin Feigenbaum came to us in ths United States in 1891...
...very likely it will be even more because of the tendency to pyramid the tax and collect more than ths tax requires...
...The real estate the bankers want a increase in employment since July lar«* cut ln their tax bills on the is 13...
...Since then Democratic leaders have changed their minds...
...deprettton railroad bondholder* The total increase for all fndus- *a«"» received more than a half...
...At the next session of Congress a determined drive will be mads to enact a general sales tax to balance the federal budget...
...Al Smith, who will be a power in the next administration, recently favored the sales tax in a signed editorial in the Outlook...
...billion dollar* annually in interest payment*, whereat in 1982 the railroad worker* will receive $1,200,000,000 lett in wagtt than in 1929—a 48% decline...
...It is almost a foregone conclusion that the efforts of the sales tax advocates will be crowned with success...
...The Socialist Party must lead the workers with renewed vigor and energy to a decisive victory The worst suffering of ths depression will be witnessed this winter...
...The farmers have experienced a similar decline in their incomes...
...Nowhere in ths country are sufficient fmdS in Sight to alleviate ths suffering of unemployed workers snd their families...
...These indexes measure fromf—--month to month the percentage The bankers of New York have decrease or increase in the number threatened to withhold loans to of employees and total wages of me8t cjty Payrolls in anticipation the reporting factories...
...Even assuming we return to 1029 production levels after many years of slow recuperation, only one-half of those now unemployed can go back to work, according to the Engineers of Technocracy, because of the displacement of labor by machine and power production...
...It means that next year the great massea of people will have to pay an additional $800,000,000 for the ssme purchases, because the sales tax is invariably passed on to the consumer through higher prices...
...Franklin Roosevelt discreetly kept silent on this most important question throughout his campaign...
...This is, moreover, a 20%- The obJect is to save most optimistic and rosy view of 1300,000,000 in labor costs which the situation, for the greatest im- can 09 uaed to continue interest provement has taken place in payments on railroad bonds and seasonal industries which produce increase dividends on stock...
...It is estimated that ln 1932 total wages and salaries in the United States will amount to 21 billion dollars as compared with 41 billions in 1929—a decline of approximately one-half...
...And when that day comas Benjamin Feigenbaum will bo remembered as one who contributed his share to educate and organise ths workers for the better day, for SocialIsm...
...oi tax collections unless the salaBeginning with August 1932, rie» of city employees are reboth the index stopped dropping duced...
...The New York Telephone Company recently established the five-day week to avoid dropping employees, but it was accompanied by a proportionate decrease ln wages...
...To maintain its high dividends without laying men off it cut ths weekly wages of employees averaging less than $80 ¦ week...
...The alternative is to raise this sum by increased Income taxes on incomes from $10,000 a year and up...
...Next week I shall discuss concretely the...
...It was my pleasure to work with him on many committees...
...By Morris Hillquit The Memory of B. Feigenbaum Will Ever Be Held in Honor WITH the death of Benjamin Feigenbaum one more of the narrowing circle of the pioneers of our movement passes into eternity...
...Scientific analysis shows that these claims are false and are wish-fulfillments rather than economic facts...
...The result is that the Legis•nd turned upward...
...To those of us who remember the earlier periods of the Socialist and labor movements in America, Benjamin Feigenbaum will remain unforgettable...
...He helped bund ths Jewish labor unions...
...The Share-Work Drive The voluntary "Share Work" movement is totally inadequate, because it is inevitably accompanied by wage cuts...
...Em- of teachers, firemen and policemen, ployment is still 41% and payrolls As lar*"e investors in New York 66% lower than October 1929...
...According to Virgil Jordan, economist for the Business Week, consumers with incomes of $5,000 s year or less bought 82% of the foods and services consumed in 1929...
...Fundamentally they are opponents of heavy income taxes on their own incomes rather than proponents of the sales tax...
...That requires more purchasing power through greater wage payments...
...The inevitable rtiult it a further contraction •/ a market which muit be expanded if American induetry it to regain its health...
...Nothing hai been done to restore the purchasing power of the masses, which is a prerequisite to economic revival...
...THE spokesman of American business have been assuring us that the country is on the way out of the depression, and that the basis for genuine recovery has been laid...
...These are typical examples Illustrating the fundamental contradiction of the capitalist economic system...
...To the young generation of Socialists he was merely a historical name...
...He was a tower of strength in the arduous struggles of the early days to organize, educate and elevate the helpless and oppressed masses of the Jewish workers...
...Though Comrade Feigenbaum, because of his illness, was removed from active participation in party work for many years, ws nevertheless* feel his loss now that he has been removed from us...
...U it1...
...The big business interests of the country not only are doing nothing ~ Increase the purchasing power *? the masses but they art doing TTthing in their power at the JJHsnt.titta atiU further to de•*•**• purchasing power in order » maintain profit, dividend, and ¦terest payments...
...The bankers, big business men like Raskob, editors like Heant who are fighting for the sales tax, enjoy the large incomes...
...Comrade Feigenbaum has gone to rest It is up to us, who remain hen, to carry on in his spirit and hasten the day when Socialism will rule the world...
...This perishable commodity goods, while Proposal is particularly indethe basic industries have continued ™n«ble because throughout tht to experience further recessions...
...We have got to go far beyond 1029 production levels...
...Such are the prospects of American capitalism for ths workers in ths years ahead...
...By Julius Gerber At the Grave of a Pioneer • i : I AST Sunday we laid to rest a comrade who had stood at the ! cradle of the Socialist Party...
...In the interim, of course, young people will have grown up and prepared themselves to take their places in our economic system, but there will be no room for them because not even the veterans of industry can be absorbed under the present set-up...
...The alternative is to cut dividends and maintain wages wherever possible...
...In the cat* of thi* company there wa* no need of a tingle wage cut becautt itt dividend payment* have mounted from $24,000,000 in 1929 to $81,000,000 in 1982...
...Those with $8,000 a year or lass purchased 74% of the goods and services for that year, Virtuslly all of the workers and farmers are In the latter group...
...The purchases of these two groups form the backbone of the market for the products of American industry...
...Unlike soma others, Ban Feigenbaum wss a builder, not a wrecker...
...his personality therefore was unknown to many who came into our party during the past ten years...
...Ths only consolation his family snd ths rest of us have is that his labor Is bearing fruit Our party is growing, our ideas and idssls are finding root among the American people as well ss all over ths civilised world) and ths dsy is not fsr distant when Socialism will rule ths world...
...As an inspiring public speaker, popular writer, persuasive propagandist and clear-headed teacher he had few equals...
...With no break is ths clouds of unemployment snd with the pssssgs of another year during which many mors have eaten their savings snd exhausted their credit, ths numbers dependent upon or* ganised relief will be greater than ever before...
...In unselfish devotion to the cause and loyal comradeship none surpassed him...
...In addition, we must establish at least the six-hour day and five-day week without a reduction in wage* if we are going to put every man and woman willing to work back on a payroll...
...Every one of theie propoialt, if tuccettfully tarried out, will have the effect of increasing ineomtt over $10,000 a year and d*crta*ing income* 1*11 than $8,000 s year...
...At this slow rate of "sumption that this reduction in progress it will be 1935 before the «P«nses will increase or assure 1929 level of employment is their on real estate investreached...
...To maintain profits, dividends and interest in a period of falling prices and of decreased volume of sales the private owners of industry reduce wages and lay off men, which by still further curtailing the ability of the people to buy, forces prices still lower and cuts down sales still more...
...They and his comrades-in-arms will always honor and revere his memory...
...The Socialist Party must load In the struggle for more adequate relief appropriations from city, state, and nation in ths months ahead...
...So does Senator Robinson, Democratic leader of the Senate...
...Large increases in furs, silks, and women's clothing is eradlly explained as a temporary and not a permanent phenomenon If recovery were genuine othei basic industries would have enJoyed similar increases in employment No Real Car* Yet It is Inevitable, because no fundamental remedies have been applied to heal the sickness of oui economic system...
...The corporations doing it will keep a larger force employed, but by reducing total purchasing power they will create mors unemployment among the' vast majority of enterprises continuing ths traditional policy...
...ments...
...relief situation...
...Since those who normally purChase three-fourths of the goods •nd services have had their incomes cut in half, it is sasy to sea why business men are riot rushing to put the anemployed to work through increased production...
...To the workers who have been Jn January the railroads will ask anemployed for two years already, the R»»way Labor Board to re•nother two years must seem like duc* W"*"M of ""road workers an eternity...
Vol. 14 • January 1932 • No. 21
