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Show THE BULLETIN, BINGHAM CANYON, UTAH " i .. 1 1 INFLATION HABIT Two Ways Open for Government To Halt U.S. Inflation Habit This is the second of two articles on inflation, how it works ' '''J?'""' as prepared by the family Economics Bureau of Northwestern Insurance company. There are only two ways in which a government can'tW" inflationary habit of spending more than it takes in: (U coueti more, and (2) spend less. . Collect more? Taxes now collected by our federal, state ana local governments already take a fourth of our national "icome-Thi- s is pretty generally thought to be about as heavy a tax loaa as we can carry, and still continue the greatest job of producing people's goods that has been known In all history. Spend less? Our government can-not spend less, until there is a halt to the growing pressures for it to spend still more. In the pyramid club craze, the great mass of "joiners" paid In, from the bottom layer, the money passed out to the winners on top. mam f ni" m . m- - tttat BOOM H" The above chart prepared by the Family Economics Bureau of Northwestern National Life Insurance company shows clear-ly why your dollar has shrunk to 57 cents' worth. Two Tax Forms Just as surely, the general public pays In, from the bottom layers of Uncle Sam's vast system of tax "pyramid clubs," most of the dol-lars paid out to the groups of re-cipients at the top of the various pyramids. Uncle Sam's tax pyramids have two different forms: Type 1: The public, from the bot-tom layer, pays In its contributions directly, as income taxes, property taxes, automobile licenses, gasoline taxes, cigarette taxes, etc., to the layer of tax collectors next above, which passes them up to the Treas-ury, which passes them on up to the recipients. Type 2: The public, from the bot-tom layer of a taller pyramid, pays in its contributions In the cost of business taxes which are added to all the other costs of goods the pub-lic buys. For business pays its tax-es, like all its other expenses, from prices received for goods the only possible source, in the long run. In this type of pyramid the retailers, wholesalers and manufacturers form several additional layers which pick the tax money out of the prices paid, and pass it up to the layer of tax collector. From here up the pyra-mid operates the same as type one. "shot" of stimulation and a tem-porary feeling of new vigor to our system. Therefore, like the victim of the drug habit, the nation with the In-flation habit has periods of feverish and activity, fol-lowed by sinking spells of increas-ing severity. To pull out of such fits of depression, still larger doses of the same inflation drug are taken, until final crack-up- . To break either habit is hard-e- ven painful for a time. It becomes more difficult and more painful the longer the habit runs on. Unlike a number of foreign na-tions, we have not yet reached the point of no return. In spite of all the punishment it has taken, our free American pro-ductive system still has a strong heart-bea- t. How can we begin the cure, In time? There is no easy answer. No miracle cure for inflation. "Cure" Outlined Because our country is a democ-racy, the cure for our ruinous in-flation habit depends on the Ameri-can people themselves. It depends on their aroused intelligence on their hard, straight thinking on their willingness to dig beneath the pleasant slogans and attractive labels used by all political parties and all pressure groups. The vital steps in curing our in-flation habit boil down to three: 1. Cut down government spending, by the strictest economy, so that it is less than government income. 2. In time of high national income like the present, reduce the vast quantity of borrowed dollars out-standing by paying off on our in-flationary government debt. 3. Encourage greater production of needed goods In everv Dossible Uncle Sam's tax "pyramid clubs" are not in themselves In-flationary, for they add no new paper money or checkbook dol-lars to our total supply. After all, the pyramid club compari-son is just a graphic illustration of how our tax system works as It collects dollars from the pub-lic on the bottom and pays the same dollars out from the top. But the heavier the "contribu-tions" collected through the various tax pyramids, the less leeway is left for the public to finance new de-mands on government, whether for security benefits of highway build-ing, jet planes or atomic research. Because our government does not even now receive enough contribu-tions from its tax pyramids to meet all the demands made on it, it there-fore has to pour out new, borrowed checkbook dollars to pay some of its expenses each year. This is where we get our present continuous creeping inflation inflation that re-lentlessly chisels down the value of all the dollars the people have left after making their tax pyramid con-tributions. This means not only the paycheck and pension dollars the people have to live on today, but also all the dollars being stored up for the people's future living for their "security". Because Uncle Sam Is spending several billion dollars more each year than he collects through his various tax pyramids, out money supply inflates still further on bor-rowed dollars, and the value of all our dollars Is gradually thinning down. way. As a nation, however, we are at present doing the exact opposite of all three steps In the cure: We are ignoring inflationary government spending, or ac-tually demanding still more. We are steadily increasing our gov-ernment debt. We are permit-ting the production of needed goods to be discouraged or handicapped in many ways, or halted outright. Meanwhile, inflation blurs the dan-gerous realities with happy dream-picture- s of more paper dollars for everybody, That is why institutions entrusted with the people's savings, and there-fore with the people's hopes for future security, are beginning to raise their voices in warning. In so doing, of course, they will risk be-ing accused of meddling in politics, although the inflation danger ob-serves no party lines. It is, however, a risk they must run. Point of No Return But Uncle Sam finds it hard to stop this destructive inflation habit ,n the face of growing demands for lim to spend even more. These demands come largely from "pressure groups", who vant for their members still larger 'contributions", which are sooner r later collected from the general jublic on the bottom layer of each ax pyramid, or sucked out of the ralue of everybady's savings by n. But before any citizen complains ibout pressure group activities, let iim ask himself whether he. too, las not been guilty. As long as there is some re-serve of vitality left in its vic-tim, the drug addict's hypo- - dermic needle can continue to stimulate. As long as there Is any considerable reserve of value left in the people's savings and in the dollar itself, inflation ran continue to create new greenbacks and new government checkbook dollars that look like new "purchasing power". As they are spent they give another Our inflation can still be halted. But it will only be halted if enough people realize, in time, what infla-tion is doing to us all. In conclusion it is well for Amer-icans to remember the reason why the dollar has shrunk to 57 cents worth of purchasing power. Since 1939 the total number of dollars in circulation in the United States has more than trebled, from 33 bil-lion to nearly 109 billion, while our industrial production of goods to buy has less than doubled. The result: cheaper money, each dollar's proportionate worth in goods has fallen until it now takes 1.76 to buy as much as one dollar would buy in 1939. Resort Operator Proves He Can Live on $300 MILWAUKEE-Alb- ert Rappold, a Walworth county resort opera-tor, was angry with the state tax collector, not so much over an added assessment as over the commissions determined belief that Rappold and his housekeeper could not live on $300 a year. The resort man insisted he could and did. He went on to prove it. They raise all their vegetables and put the surplus in a freezer. His parents, who live a mile away, gave them fruit and meat, which they also put in their locker or canned. They also got eggs and milk from his parents' farm. They hunted and fished, and put the excess game in the locker. "I go huntin' and fishin' my-self," said the housekeeper. "I get ducks, geese, rabbits and deer and put them in the freezer. Last fall I got a deer. I also trap musk-rat- s and save the hind legs to eat. Buy Few Clothes "I do all the cooking, so we have to buy very little food. I make my own soap from fats that the peo-ple in the cottages give us. These people often give us food they have left when they leave the cot-tages. We often are invited into the cottages to dine with them. We eat very simply. We drink our coffee black, and Mr. Rappold doesn't eat butter." Both told the tax department they spent very little on clothes. The housekeeper said she bought her own clothes from a small wage that Rappold paid her, averaging $3 a week in winter and up to $15 in the summer resort season. "I don't wear expensive clothes," she said. "I haven't bought a pair of stockings in six or eight years. I never paid more than $25 for a coat. This dress I have on is six years old." Rappold said most of his fishing is done in the winter, when he is not tied down to operating his resort. "We buy very little meat," he continued. "Our freezer is always full of stuff wild and tame geese, wild and tame duck, mushrooms, muskrat legs, venison, vegetables. Once in a while I may buy a ring of bolona for sandwiches." What about coal? Attorney Is Doubtful "Our place is heated with a chunk stove. I have 20 or 30 cords of wood piled up that I sawed last winter. I still have three-quarte- rs of a ton of coal left from the ton I bought last fall." He said he hadn't been to a movie in five or six years. He bought the suit he was wearing 10 years ago. Rappold did not count the money spent on gasoline to travel in his automobile, the cost of the freezer, $100 for a gas range and $100 a year for bottled gas. The tax department's attorney was still doubtful, however. "I still don't believe he can live on $300 a year," he said. FIRSTAIDJ llnnlogc MARKS BY SCOTCH TilL Question: What can I spots on wallpaper left V moval of Scotch tape tX will not show through 8ft?al ing the walls with one of ft water paints? inet Answer: Denatured off Scotch tape, and shS move the marks enoueh they will not show I paint. When painting,K a good plan to give the S coat of paint before whole wall. I doubt if tS would show through in that J " " l - ' I ' ' ' '' ,J i , ' a' j, i ' a " ' 'ffc riTXT, r,,.SlP unT O Aspen, once the boom town of silver and gold miners, is fast becoming one of the culture centers of "culture - conscious" Colorado. Set in a mag-nificent section of t h e Rocky mountains, it of-fers tourists the natural facilities of mountain streams and lakes, skiing, and other outdoor sports. Above summer visitors enjoy a ride. Special guided pack -- trips into the high country are a favorite summer activity. Fishing for the elusive rainbow trout is another popular sport. The stream (right) is the famous Roaring Fork river where gold was panned in the Ws. mm i i - . " . TTl , i 1" i O But not to be outdone by other western towns, Aspen has scheduled an eleven-wee- k program fea-turing the theme "Great Books, Great Men, and Great Music" as an add-ed attraction for tourists. ; During the weeks, June 26 to September 10, ' great books and great men will be discussed daily by outstanding au-thorities, interspersed with a series of concerts by the Denver symphony orchestra. O A group of tourists (above) loaf on the sun-dec- k when not hearing lectures or concerts by such artists as Lauritz Melchoir and Helen Traubel. The Saarinen tent (right) was designed especially for Aspen mu-sical and cultural events, by the Finnish architect, Eero Saarinen. Inside, it is an acoustically perfect amphitheater. The tent was first used for the suc-cessful Goethe bicenten-nial celebration at Aspen last summer. - - ?. 'SM '. .Vjau jdir - ... i y v " ... The Four Season Club tennis court (above) is the scene of a hot tennis gome between tour-ists. Even in midsummer it's almost always cool enough for tennis. Immediately behind the clubhouse rises one of the foothills of the Rockies' valley of the Roaring Fork. If You Can Use Hamm You Can Make a Che Small Chest Das Many Cs JF YOU can use a hammer, and screwdriver, you make this chest. The sturdy b front drawers require no dii joinings. Pattern 282 gives large workiri grams and illustrated tions. Pattern Is 25c. WORKSHOP PATTERN SEBT1I Drawer 10 Bedford Hills. New Tort J How mild can a cigarette MORE PEOPL SMOKE GUI than any other cigarette and among the millions wh nfiscn cole P0RTB y i tt y I: writer has tb 1 4 ' say: "Cat n &Sa&i scored a hit L? fi me years sp smoke! i r 'fV&i Cam ell i J slA. mild!" I in qtodmssl (gmjgtt Heap up breakfast bow'ruls1 of sweet Kellogg'g Corn Flakes. ICM U fill 1 hey're fresher! Crisps! So ft mTJ sf II . hearty! the "power'rof corn ILIFfB? and its whole-ker.i- values Ul I Lt in iron, Vitamin B niacinl iLrt A bargain in goodness ffTmt. Kellogg's Corn Flakes. 5sW Ml? W MOTHER KNOWS BEST! JV 7 p ,,., ......... n n ; Milliiu II B i Sta-fu- ! Battery Saves Time andMoney BaC ,0"er,"-n-od wt.r only 3 tim.. u y.or. In adW T,, y" yu' neighborhood Aut-Li- t. Botl.ry D.alw. AUTO-UT- I IATTIRY COFOIATION JJ r According to ft 'ondM 5J , one with S.A.E. Zxf 4, I Politicians Push Pork Barrel Projects Why are "pork barrel" spending projects pushed so earnestly by so many politicians? Because for each such project there is a group of good, respectoble people back home who want it wasteful or not. When government pours the public's tax contribu-tions into any community through a government project, it mokes more jobs, ,, and more pay envelopes to be spent there win, n prosperity for the whole community sitting more ot the top of its own special "pyramid club." |