Magazine article Monthly Review

Monthly Review: Fifty Years Ago

Magazine article Monthly Review

Monthly Review: Fifty Years Ago

Article excerpt

At present there is a good deal of talk about cutting taxes ... as an antidepression policy. Even at its first session, the Republican-controlled Congress voted some tax relief for needy corporations (though this was certainly not an antidepression measure), and these cuts are likely to remain on the statute books, and perhaps be extended as the economy gets deeper into trouble. We do not believe, however, that this policy will accomplish very much. Republican tax cuts are always designed to leave more money in the hands of those who already have plenty. Hence they are not likely to have anything like a proportionate effect on consumption; and the limiting factor of investment is the relation of capacity to demand, not the amount of capitalists' disposable income.

Ultimately, the Eisenhower administration will find that the only way it can be sure of getting more money spent (since it obviously won't go in for redistributing income in favor of the poor), is to have the government itself spend it. …

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