OCTOBER,1946 Periodicals "Inflation,"byAlvinHanson.YaleReview,Summer, 1946."DepressionRoundtheCorner,"bySeymour Harris.TheNation,September14,1946. ProfessorHansonistheindirectinspirationformanyof theNewDeal'seconomicpoliciesandhisarticletherefore acquiresaspecialsignificance:onecanreadilyimagineithav- ingbeenreadinWashingtonoficestofindideologicalammunitioninbehalfofapolicyofmildly-controledcapitalism. Thearticleisadirectpolemicagainstthoseconservative economsitswhofavorapolicyofnopricecontrolsandwho arguethat theinflationaryspiralhasinanycasealready beHguann. sonlistsseveralfactorswhichheclaimsmilitateagainst animmediateinflationaryspiral.Governmentexpenditures havebeensharplycutincomparisonwiththelastwar,therebyrestrainingthetendencytowardsrun-awaypricesand makingpossibletheaccumulationofasurplustobeusedin thefutureasastrategiccapitalformation.Thepresentten- dencyistowardsconsumers'spending,ratherthanasafter thelastwarproducers'investments,therebydecreasingthe possibilityofover-capitalization. Hansonarguesfordirectpricecontrolsasameansofslid- ingthecountryintotheperiodwhendemandandsupplywill functiononfairlyequalterms: "If thiswarpedstructureof demandwerealowedtoworkitselfoutunderfreemarket forces,adistortionwouldinevitablyresultnotonlyinthe priceorcoststructurebutalsointhealocationofproductive resources.Excessemploymentandinvestmentwouldbedrawn intotheareasofconcentrateddemand.Thiswouldproduce geographicalandoccupationaldislocations,adisturbancein thewagestructureandultimatelyexcesscapacityincertain industries.Asecondary'reconversion'wouldthenbecome necessary,aftertheemergencyperiodhadpassed,tothemore normalpeace-timedemand." Hansonthendisposesofthetheorythatlowwagesarea breakontheinflationarytendencies.Forlowwageswould onlyleadtohigherprofits,whichwouldleadtorealestate andspeculativemarkets.Andultimatelylowwageswould resultinadecreasedmarketcapacityandthentodeflation andunemployment. Havewageshowevergoneuptothepointwherethecapitaliststructurecouldnotfunctionwithoutpriceincreases? Hansondeniesthisfrequentassertion.Hepointstothelarge increaseinproductivity,totheeliminationofovertimeandto downgradingwhichleaveaveragehourlyearnings"substantialystable,"andtotherepealoftheexcessprofitstaxwhich makeitpossibleforindustrytoshiftportionsof itsgross earningsfromthegovernmenttolaborwithoutencroaching uponitsnetearningsaftertaxes.Inotherwords,thepresent priceriseswhichhavetakenplaceafterHanson'sarticlewas writtenandwentunheededareakindofsuper-profitor super-exploitationonthepartof industry,cashinginafter anunprecedentedlyprofitablewar. InasenseHanson'sarticleisalreadydated:thestepshe urgedhavenotbeentakenandsowecannotseehowwelan experimentinliberaleconomicswouldhaveworkedout.How- ever,heisvaguelyawareoftheinsuficienciesofhisapproach, fortowardstheendofhisotherwisecloselyreasonedarticle, hesuddenlyscratcheshisAchilesheelbyremarkingthatthe "inadequatedemandinviewofourvastproductivepotential" remainsthemaiQrinternalproblemofAmericaneconomy. BibliotecaGinoBianco AndforthatproblemHansonandhisschooldonotseemto haveasatisfactoryanswer. TheHarrisarticleisarathergrimrecountingofthepres- enteconomicmarchtodisasterwhichtheAmericaneconomy istaking; it isanaccountofwhathashappenedsincethe adviceofHansonandhisWashingtonfriendswasignored. Hepointstothefactthat"byweakeningpricecontrol,pre- maturelyremovingcontrolofdemand(byrelaxingprioritiesandthelike)andcuttingtaxes,thegovernmentisen- couragingspendingnow."Theupwardmovementofprices andprofitshasresultedinaninvestmentboom,nowrunning attherateof $25,000,000,000 a year.The countryneedsconsumergoodsbutisgetinganexcessofcapitalgoods,includ- ingrisesininventories."Soapparentlytheerrorsofthelast post-warperiod are beingrepeated,Hansontothecontrary notwithstanding. Harris'listofgovernmentpolicieswhichleadtoinflation- arydangersisreallydamning.Henotesthecontinuedinvestmentinnon-residentialconstruction,madepossiblebygov- ernmentrelaxationofhousingcontrols,whichwillkeep rentalsbuoyedupbeyondevencurentratesforyearstocome. Henotesthegovernmentfinancialpolicywhichbyalowing bankstogain11/2percentongovernmentalsecuritiesand thenexchangethemforcash,hasresultedinanincreaseof bankprofitsfrom6.2percentin1940to11percentin1945. Theadministration'spolicyofholdingbackonthereleaseof surplusfactoriesandgoodshasalsopreventedthedemand- supplygapfrombeingnarrowed.Nothinghasbeendone, chargesHarris,tomeet"thelargecolapsewhichnowseems inevitable"inthenextperiod. Hansons' warning,writtenbeforetheemasculationofprice control,andHarris'grimaccountofwhatisactualyhappeningleadtoextremelydarkviewsaboutthedevelopment ofAmericancapitalismintheperioddirectlyafterthepostwarboom.Theinstinctivesenseofforebodingwhichordi- narycitizensfeelisheregiventheoreticalform.AsforHanson'soptimism, it isdoubtful ifhewouldmaintainit today inlightofwhathasbeenhappening.Onemustconcludethat, inadditiontotheexpecteddificultiesofcapitalisteconomies, thepoliciesoftheTrumanadministrationhaverevealedsuch alackofforesightandimaginationastoclassitasoneof theleastcompetentinthelonglist ofmediocreadministrationsfromwhichAmericahassuffered. "SchizophrenicMotifsintheMovies,"byParkerTyler. SewaneeReview.Summer1946. ParkerTylerisoneofthefewpeopleinthiscountrywho writesmoviecriticismwhichisnotmerelyinteligent,but oftenbrilliant in itsperceptions.Hehassucceededindoing whatfewothercriticshave:hehasintegratedboththesociologicalandpsychoanalyticalapproaches;andheuseshiscritical methodwithintelligenceandimagination.Theonlydrawbackisthatheisoccasionalyuninteligible,thathisthought issometmi eschokedbyhiswords. Tyler'sarticlecontinuesalongthelinesofmovieanalysis beguninhisrecentbook.Heidentifiedthreetechniquesof schizophrenicrepresentationinthefilm: (1)themomentary lossofidentityforcomiceffect; (2) thelossofmeaningof whatthecharacterisdoing:asplitbetweenphysicaland mentalactivity; (3) "theretardedmental-reflex,"whatis knowninHolywoodjargonasthe"double-take." Toilustratethefirstofhisthreecategories,Tyleranalyzes theperformancesofthecomedian,HughHerbert.Herbert's workdemonstrates"aUtopianbrandofpsychologypeculiar toAmerica theconceptionthatthereisbutashortdis- tancebetweentheclownandthegenius.Theabsent-minded professoror theabstractedCompanyPresidentwhosebe-
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