.
Providing Jobs a Simple Matter |
| [Reprinted from The
Freeman, December, 1938. At the time of this article, John Ise
was a Professor of Economics at the University of Missouri.] |
The prosperity engendered by the tariff measures of Calvin Coolidge was
greatly enhanced by the genius of his successor, Herbert Hercules, who
extended the principle of the tariff to operate among the several
states, and even between counties. So general was the enthusiasm and
happiness of the people that when the great efficiency engineer
economist's term of office was over, many of them wanted to make him
king or dictator, like Mussolini; and a delegation was appointed to call
upon him and ask him to take over the government and administer the
tariffs. He was finally persuaded to do this, on condition that he be
allowed to inaugurate a "new economic policy," which should
represent the final completion and rounding out of the protectionist
program. He explained that while the tariff had been applied
consistently and logically to tariff between communities, it had not yet
been applied to trade between individuals, and assured the delegation
that by extending the principle in this way he could further enhance the
prosperity and happiness of the people.
And So the Sales Tax
Thus, in the first year of his reign as king and dictator and regulator
and extender of the tariffs, the great efficiency engineer-economist
issued an edict taxing all sales, all trade between individuals. He
explained to the people that the new order was for the purpose of
encouraging industry, providing employment and increasing wealth; that,
while it might seem a hardship at first, in the long run, like the
tariff, it would enhance the prosperity of the people so much that they
would be able to buy and sell and trade more than ever.
The sales taxes were an unmixed blessing, like the tariff. When farmers
had to pay a tax on the shoes they bought, they were encouraged to make
their own shoes, and in this way they found employment, and also kept
their money at home. Plumbers found that they were taxed on the meats
they bought so they raised their own chickens and pigs and cows. Many
people found clothing, with the tax added, too expensive to buy, so they
made their own clothes. In this way housewives were given employment,
and the money was kept at home, and all people were blessed and made
rich therewith.
Problem Keeps Recurring
But here again was encountered the same vicious circle that was met in
the enactment of state tariffs. The higher the sales taxes were made,
the more employment the people had, and the more prosperous they became,
and the more goods they were able to buy, the higher the sales tax had
to be raised again. It finally became necessary to create a government
tax board whose function was to raise the sales tax each week. Thus the
great efficiency engineer-economist had again enriched his people by the
application of simple economic principles which had never been
understood even fry the most learned economist.
But even greater achievements were in store for them, for the great
efficiency engineer-economist, king and dictator and regulator and
extender of the tariff, issued a second mandate of even more
far-reaching importance than the first. Realizing full well that the
people might not understand the profound and subtle logic of his scheme,
he explained that the sales tax was not fully effective, for the reasons
above mentioned; that it was essential to all tariff legislation, and
indeed to all legislation designed to enrich the people, that it must
operate to prevent the people from working in the most effective and
advantageous way possible; that national tariffs, for instance, were
imposed to prevent the world from taking advantage of the economy of
international division of labor; the interstate tariffs were useful only
as far as they prevented the development of regional or territorial
division of labor; and that the sales taxes were enriching the people by
reducing occupational division of labor, but that when once the people
had become very prosperous, the sales taxes were no longer fully
effective.
End of Specialization
Therefore, as a supplement to the sales taxes, he was issuing a decree
that all specialized occupations should be abolished; that all plumbers
should become farmers, that all farmers should take up carpentry,
plastering or plumbing; that all lawyers should engage in the grocery
business, and that all grocery-men should teach languages in the
university. It was further decreed that every man should change his
occupation at least once a year and should trade jobs with his wife at
least one day in each week. If he didn't have a wife, he could trade
jobs with someone else's wife.
This order aroused much discussion. and there were some who declared
that it would ruin the country, but the profound logic of it gradually
permeated the public understanding. The new order provided much more
employment, since workers could not do as much as formerly, and more of
them were required, and of course this raised wages and increased the
general prosperity.
More Workers Required
For instance, it took twice as many men to teach the language when
grocerymen taught them as had been required when professors performed
that service; it took twice as many men to manage the farms when
plumbers did the work as had been needed when farmers farmed; in fact,
it required about twice as many men to do the work of the country as had
been required before; and inevitably this great demand for labor raised
wages and enriched the people. It is true that some of the goods and
services offered were not as good as had been offered previously, but
what the people lacked in goods and services they made up in employment
and prosperity, and much more indeed.
Hobbles for Workers
But the great crowning achievement of the great efficiency
engineer-economist, King and regulator and extender of the tariffs, was
still to come, and it followed as the logical climax to the great series
of constructive decrees just recorded. In the third year of his reign,
he issued an order that all workmen, while engaged in the performance of
their duties, should wear chain hobbles not to exceed one foot in
length. As on previous occasions, he explained the philosophy underlying
the decree. He pointed out that all of the various laws and decrees
imposed during the past years had been designed to prevent the world,
the nation, and the states from availing themselves of the most
economical and effective ways of doing things; that these laws had, in a
sense, hobbled and obstructed economic activities, to the great benefit
and enrichment of the people; and that obviously hobbling the people
themselves would be attended by the same benefit.
Not Exactly Perfect
All this seemed so reasonable that the people cheerfully accented the
new decree and adjusted their hobbles, with hearts grateful for the wise
and courageous leadership that God and the Republican party had given
them. It was soon evident, however, that while the new decree greatly
increased the amount of employment and prosperity, its blessings were
unequally distributed, that the hobbles were a far greater benefit to
some than to others. They were far more beneficial, for instance, to
tall men than to short men, more helpful to farmers and mail carriers,
who walked a great deal, than to professors and chauffeurs, who walked
very little and so received scarcely any benefit at all; and it was
presently found necessary to revise the edict, to permit other ways of
interfering with activity.
Other Devices Prescribed
So other ways were authorized. In some occupations, workmen were
permitted to tie one arm behind them, in others they were required to
wear blinders over one eye, in others they must walk backward, in still
others they were required and permitted to stand on their heads. With a
beautiful and touching fidelity to the great principle of circulatory
obstructionism, brain workers were required to wear their collars at
least two sizes too small for them. Thus each occupation had an
appropriate blessing, for like all the decrees of the great tariff
regulator, this decree was very scientifically drawn.
Thus was the program of protectionism brought to the logical ultimate
perfection. Thus was it brought to flower in new heights of wealth and
prosperity for God's chosen people. It seemed that there could be no
further possible extensions of this great energizing, wealth-producing
principle. But suddenly, without any warning, unforeseen even by the
greatest business minds, a cruel depression settled down upon the
people.
Why Bring That Up?
There was much dispute as to how it got into the country. Some said
that Bolshevik agents brought it in; others thought it came from Europe,
by way of Honduras, in a bunch of bananas. It was only known that it
came from Europe, and that it was not due to high tariffs -- but that is
another story, and not one to make children happy.
|