An Ideology for a Laboristic Economy

Abstract

Capitalism is gradually vanishing from American scene. According to Columbia Encyclopedia, capitalism is the economic system characterized chiefly by relatively few, who by their ownership of capital, control most of production, distribution and credit. Twenty years ago that definition would have aptly characterized United States. Then capitalists not only directly controlled a large proportion of economic activities but even were able to get one of their representatives elected president. Today, their position is far different. Much of direct control of economic life has shifted into hands of government and labor unions. In 1947 more -than a fifth of expenditures of nation's economic budget belonged to government, but its powers to dominate economic life go far beyond what statistics suggest. It exercises control over banking through Treasury, Federal Reserve, and a host of other agencies; over business through Federal Trade Commission, Anti-Trust Division, voluntary rationing of scarce supplies, and National Labor Relations Board. For over 16 years government policies have been inimical to business interests. Perhaps most damaging blow to capitalists has been steeply progressive income tax, but there have been many others. Not least of them was legislation which encouraged growth of labor unions from 3.6 million members in 1935 to 14.3 million in 1947. Management may still manage industry, but labor now severely circumscribes its freedom of action. Nor is this any temporary swing of pendulum. Though union organizing has temporarily slowed down, potential additions to membership still number in millions. In political field, union members and their families already have enough votes to dominate any national election. If every union member has a wife or other relative who will vote same way he does, then labor may be considered to have over 28 million votes, or considerably more than a majority of votes cast in 1948 presidential election. The CIO has considerable experience in mobilizing potential voting strength of labor and made a signifificant contribution to reelection of President Roosevelt in 1944 and of President Truman in 1948. Though end result is still in distant future, United States appears to be evolving into what Professor Slichter calls a laboristic state-i. e., a state in which labor and its leaders are largest single influence.'