Business Men and the Business Cycle

Abstract

BUSINESS men are chiefly responsible for the peaks and valleys business. This statement may be something of a shock to politicians, who are sure to claim credit for good business and pass the buck to world conditions or the war or something of the sort when business gets bad. Politics is the natural enemy of business. Business men know this, but try to preserve an armed neutrality. Politicians also know it, but they are more interested political capital than business capital. It is an open secret that political pressure on the Federal Reserve Board delayed the raising of rediscount rates 1919, with unfortunate results the next year. Political pressure on the railroads has not always improved their position. But it is scarcely necessary to pile up evidence! Business men know the situation. They just haven't talked about it. However, since the conduct of business is their responsibility, they have been put on the defensive and are becoming aggressive. Moreover, it must not be forgotten that political fortunes will be affected by the condition of business 1924. The proposition that business men are really answerable for business may be too flat-footed a generalization to rest well with economists. It contains none of the pet hedges of the craft, such as in the long run and other things being equal. However, the monumental work on the business cycle by an economist, Wesley C. Mitchell, gives support to the proposition as it emphasizes the structure of our economic life accounting for the periodic ebb and flow of business, BUSINESS MEN RESPONSIBLE FOR BUSINESS