OCR Text |
Show WHY THE TOWNSEND PLAN? Being a Brief Presentation of the Reasons for its Proposal and What it is Expected to Accomplish. By Keen Observer I For the busy reader who is not familiar with the fundamental principles of the Townsend Plan, a brief outline of them is presented pre-sented here. It is generally conceded, and by conservatives and liberals alike, that America is suffering from restricted re-stricted purchasing on the part of a large percent of its population. We have before us constantly the paradox of poverty in the midst of plenty, production which outdistances out-distances consumption machines which displace the labor of men's hands and must be operated at half-capacity or less because those it displaces cannot buy its products pro-ducts despite their need of them. The Townsend Plan recognizes that America cannot enjoy a sus- Itained prosperity in this mechanical mechani-cal age unless some rational means is found to put the circulating medium, or money, into the hands 'of practically all of the people. It i recognizes the vicious circle which jthe machine has created, a circle (Continued on Page Eight) of property rights and representative representa-tive government. Freedom Threatened Upon these three ; foundation stones a great nation has been builded and all of them, are threatened with abridgement or destruction, as the necessities of a prolonged depression are interpreted, inter-preted, by , the economic planners now in power in Washington. The- Townsend - Plan will perpetuate per-petuate all that is good, destroy much that is evil in our present economy, and remove forever the fear of a penniless old age, a fear which today places a palsying hand on spending and the free circulation of earned money. Why The Townsend Plan? (Continued rrom Page One) which starts with increasing unemployment un-employment as the result of improved im-proved technological processes; the next step is curtailed consumption resulting in keener competition. Keener competition means lowered costs and lowered prices in order to bring the products within the reach of those with lowered purchasing pur-chasing power. Lowered costs are achieved by more efficient machinery mach-inery which results In more unemployment. un-employment. The Townsend plan is opposed to government doles paid with borrowed money, recognizing that such procedure brings only temporary tem-porary benefit, as it is paid offl again lowers purchasing power. ' The Townsend Plan, in recognition recogni-tion of all the factors which have entered into the making of this prolonged depression, would appoint ap-point a certain group of our people peo-ple as government buying agents. Placing a nominal tax of two per cent on business of every kind in return for the privilege of participating parti-cipating in the market which a great nation affords, the Town-send Town-send Plan would pro-rate the returns re-turns from this tax each month among the members of the chosen group of government spending agents. No set sum to be paid out monthly to each individual is named nam-ed in the proposed legislation but a maximum of $200 each thirty days has been established. In selecting the group of citizens citi-zens to whom this money is to be paid, it is recognized that those needed by industry and those who are equipped to fill useful positions need only the opportunity to work. To retire them would be unfair to them as well as to business, as they will be needed in prosperous times. The group choseh as government govern-ment spending agents comprises those persons 60 years of age and past, whose usefulness in most instances in-stances is impaired as far as business and industry are concerned. concern-ed. Many of them are dependent upon relatives or charity despite the fact that they have given their best efforts during their useful use-ful years in the upbuilding of a great Nation. The Townsend Plan Insists that . each elder receiving a share of , the amount raised through the 2 . percent tax must spend it each : month, thus speeding up the circulation cir-culation of money, and by con-i con-i suming a vast amount of the prc-; prc-; duction of necessities and some of the luxuries of life, they will I thus create a sustained prosperity which will open many more ave-i ave-i nues to profitable employment to the younger people of the nation. I The Townsend Plan insists that increased volume in industry which need not increase plant overhead will absorb much of the tax as commodities pass from L hand to hand through the various processes from raw product to finished manufactured article. A careful study of the situation reveals to the inquiring mind that the costs of crime (estimated at $18,000,000,000, relief, emergency employment projects, general char" ities, poor farms and many other such burdens resulting from an unbalanced economy will be greatly great-ly reduced with the Plan in operation. oper-ation. It is believed the savings thus made will almost equal the entire cost of the Plan and that the general prosperity which it creates will safeguard American liberty, the American conception |