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Show Economic Problems That Can Be Solved by Application of Proper Principles By WM.LIAM T. FOSTER, Economic research Official. OVEHPROPITTIOV and unemployment are problems subject to human control without any radical change in government. A first step is to rcfoffiiiw a f.ict long ignored by economists, that producing goods dors not automat if ally furnish buyers. Once we recognize the existence of tho problem we are time-tenths of the way toward solution. The last 12 months manufacturers turned over goods in excess of $6,000,000,000 to buyers who did not have the money to pay Of this, 13,000,000,000 is not yet paid for. Yet the price level has steadily de-clined. de-clined. The Simple Simons of our day do not have to face many Piemen who demand "first your penny." They say rather, "Take your good and pay as you .can." This situation is merely an indication that business faces overproduction. It forecast business without a buyer. It is postponing post-poning a recession of business that it cannot postpone very long. t No nation has yet studied consumption. Every national system is organized to finance production on the principle that the people will have the money to buy what they have worked to manufacture. We could leave all this as it is, allow every individual to act as he lees fit, make no changes in our monetary system and still solve the prob-lent. prob-lent. 'We could do this by so ordering our vast government expenditures and receipts that they could serve as proper and adequate corrective measures meas-ures to periods of too much production or not enough buying. This is all that is necessary for business to go forward with confidence. |