Dear Editor
DEAR EDITOR U. S. ECONOMY "Wanted: An Economic Program" by Seymour E. Harris (NL, May 30) is consistent politically inasmuch as it sums up conventional Democratic criticisms; but it is...
...Here, in its basic aspects, it involves all the people...
...There, it is centralized in a few men...
...My congratulations to Bohn for giving us the benefit of sound and timely thinking...
...New York City DANIEL HELLER Do my eyes deceive me...
...As it is, home mortgage failures are at an exceedingly low rate and financing terms are far more sensible and reasonable than in the 1920s...
...In short, they are learning the superiority of the "capitalist" method of allocating resources efficiently, remembering that "efficiency" here has something to do with satisfying consumer desires...
...Not that from a Harvard professor...
...Harris claims that tight money is slowing growth, but, also, according to him, the consumer sector does not lack for credit since too much money has found its way into the mortgage market and into financing of consumer purchases...
...While sharing his concern over the USSR's growth, I do not see how we can "equal or nearly equal" it merely by increasing credit...
...Senator William Fulbright describes this: "In making decisions on the allocation of resources, the Russians have a considerable advantage over us because of the difference in the decision-making process in the two countries...
...Reluctantly I have come to the conclusion that the Anglo-Saxon mentality is incapable of fathoming the seriousness of the Soviet menace...
...That will take a long time and a lot of straight talk by men who know what they are talking about...
...to make up for the fact that they can allocate resources more efficiently, we must increase our output and maintain it above the Soviets.'" Apparently even Soviet economists know better...
...It will be held at Bard College, two hours up the Hudson River from New York City by rail or road...
...The explanation in part is that they allocate and direct resources more effectively than we do...
...N.W., Washington 6, D.C...
...President Eisenhower and many of the men in the State Department toying with the fate of this nation would do well to read and heed it...
...The tragedy is that with the exception of a mere handful of us, this sort of thinking is totally alien to the mentality of our people...
...SIDNEY KORETZ PLAIN TALK Over the years I have read a great many of William E. Bonn's articles...
...Regarding consumer credit, I agree this should be watched...
...For example, Harris is against tight money, but at the same time is alarmed at what he calls a high level of consumer and mortgage credit...
...But Harris does not suggest either approach...
...however, America does not need this...
...His concluding remarks should be adopted for front-page display until the American people and our Government do something about translating it into action: "The thing to do is break through to the Russian people...
...Washington, D.C...
...According to the June 2 New York Times, "several developments attest the growing influence of Soviet economists and administrators who insist that the best way to improve production, distribution and the quality of goods and services is to increase the financial stake of the parties directly involved...
...Harris perhaps confuses this "efficiency" with another kind, namely "efficient command by a dictatorial government...
...However, what is currently important is not the absolute level, but where in the cycle the highs and lows of credit occur...
...Installment credit should be eased as a recession appears and tightened once recovery develops momentum...
...If effective demand is too low, then lower taxes on low incomes is a solution...
...Again, if so, why limit credit...
...New York City J. ANTHONY MARCUS ADA WORKSHOP Some of your readers may be interested in an opportunity to spend the long July 4 weekend in good liberal company—the Summer Workshop sponsored by Americans for Democratic Action...
...The problem is different...
...I still can't believe him capable of such drivel...
...Does he mean industry lacks expansion credit...
...There is no such indication...
...On occasion I strongly disagreed with his writings...
...It concerns the Soviet decision to reinvest a huge part of national output for such things as factories and dams in order to attain a higher level of industrialization...
...By means of what sort of investigation or what process of reasoning does he know information which can only come from the actual test of arms in war...
...Besides, overcapacity is widespread (steel, oil, cement...
...But his piece, "Some Plain Talk About the Soviets," (NL, June 6) is worthy of universal praise...
...Does the chairman of the Department of Economics at Harvard University really say that "with an output now 40 per cent of ours, the Soviets already have a better defense establishment than we do...
...It is not clear whether he means effective demand is too low because of inadequate income, or if he means Americans are satiated...
...If more of us keep harping upon this task, it should not take "a long time...
...Washington, D.C...
...This is done to "save" the buying power associated with easement...
...Then Harris really goes haywire...
...Harris points to "an inadequate demand for goods...
...For further details, write the undersigned at ADA, 1341 Connecticut Ave...
...However, if he gets the easier credit he is asking for, I should imagine that loans to consumers and home owners will increase...
...but it is economically inconsistent...
...And this is the situation 42 years after the rise of the barbarian nightmare of the Kremlin...
...Until Harris gets word from the Soviet people—and I mean people—that their economy is efficiently satisfying their demands upon it, he'd better stop calling them more "efficient...
...if satiation is the problem, then we raise taxes and promote heavier Government expenditures for such things as schools...
...DAVID C. WILLIAMS...
...Why the alarm over mortgage credit ? And especially if one fears a recession, why try to curtail home building...
...Who then needs credit and is not getting it...
Vol. 43 • June 1960 • No. 26
