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Daily
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ratkaa laamai tha curat ta aa
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Challenges Theory
Of Economic Growth
To the Editor:
On October 18th the
Daily Nebraskan reprinted
from Think, an IBM pub
lication, a short essay on
economic growth in the
United States by Henry
Wallich, ordinarily professor
of economics at Yale but
presently a member of the
President's Council of Ec
omic Advisors. The Daily
Nebraskan deserves ap
plause for devoting space
to discussions of matter
that are, or should be, im
portant to people every
where. I take strong ex
ception, however, to the
soothing tone of Dr. Wal
laces piece and to the con
clusions reached in its
terminal paragraphs. The
article was originally di
rected, it is true, toward a
n o n-professio'ral reader
ship; and in writing of this
kind there is always con
ceded a certain amount of
Inaccuracy as a necessary
corollary of brevity. I am
sorry to say, however, that
the article is remarkably
consistent with the present
posture of the Council,
which in recent -years has
seemed to devote some
what more- energy to
searching out post-facto
justifications for adminis
trative action or inaction
( than to pursuing scien
tic truth.
Professor Wallich who
should know better be
gins by asserting a mutual
exclusiveness between
freedom and a high rate of
economic growth. He im
plies that the S o v i e t Un
ion's admittedly superior
rate of growth has been
attained at the expense of
individual liberty (a dan
gerous over-simplification)
and maintains that the
United States cannot hope
to match Russia's rate of
gala without sacrificing a
substantial part of our own
values and liberties. But
he omits mention of the
fact that America's rate of
-economic growth is pain
fully below that which is
being achieved in a great
number of the other non
totalitarian industrial na
tions. 1 cite, for example,
Sweden, Prance, and the
United Kingdom, where a
democracy purer than onrs
prevails (suffrage is truly
universal and "loyalty
alls' would be furiously
denounced as abridgments
of liberty) at the same
time spectacular progress
is being made in enhanc
ing material welfare. The
oldest device of demag
ogaery is the "either- r"
dichotomy, one variant be
ing to offer auditors a
choice only between a stat
es quo and a totally no
acceptable alternative.
Professor Wallich is In
error when he maintains
that it is harder for a ca
tion already wealthy to
make continued headway
at a rate comparable to
countries starting from a
retarded position. His view
is correct only in a forma!,
mathematical sense. It is
self-evident that to In
crease a large number by
tea (or some other) per
cent necessitates a larger
absolute addition than
would be required to in
crease a smaller number
by an equal percentage.
But mathematics merely
records and in no way gov
erns economic growth. And
the plain fact is that the
larger, more "advanced"
economies are growing
faster, despite their higher
point of departure, than
are the under-developed
nations. The gap between
rich and poor lands is wid
ening, not diminishing. The
reason, . inexplicably over
i Daily Nebraskan
SEVENTY -ONE TEAES OLD
Member Astoefateo' CIIeiae Pre, International Press
atepretenUtlTe: National Atfvertislnt' Service. Incorporated
PnaUsbed at: fcoom 29, Student Cnion, Lincoln, Nebraska,
Utit
TeJephone EE 2-7631. ext 4225. 4220. 4227
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Nebraskan Letter ip
looked by Dr. Wallich, is
the self-expanding nature
of technological progress,
which in the normal course
of things tends to acceler
ate rather than slow down.
Our own lagging rate of
growth cannot rightly be
attributed to our past suc
cesses. The author, him
self, apparently neglected
to note the trend exhibited
by his own figures, which
show a rate of gain that
has increased substantial
ly, although by "notches,"
from a relatively modest
beginning eight generations
ago. The truth is that the
world is still in the dawn
of scientific (and, we hope,
social) progress, and every
ad v a n c e thus far has
quickened rather than
slackened the pace. It is
simply not true that we, or
any other "rich" nation,
must resign ourselves to
the prospect of reaching a
point where further growth
will become prohibitively
costly in terms both of ef
fort and freedom of choice.
It is thus grossly mis
leading to imply that the
price of faster growth must
be a surrender of liberty.
In the first place, there is
no such thing as unfettered
liberty, now has there ever
been in the past, whether
in the United States or else
where. Government
meaning, in a democracy,
society has always inter
meddled in economic rela
tionships and always will.
Even an ostentatious qui
etism constitutes interven
tion in behalf of a status
quo, and operates to bring
about a redistribution of in
come as surely as would
an increase or decrease in
tax rates, minimum wages,
or any other economic
phenomen. A "sound" pol
icy of high interest rates
redistributes incomes no
less than would a policy of
"low" rates. It is a wry
commentary on our educa
tional establishment that
at the end of a century of
free and compulsory
schooling so many people -can
still be bewitched by
words, and are persuaded
so easOy that torpid gov
ernment is somehow be
nign. As I indicated above, the
normal expectation should
be that economic growth in
the United States would
now be equal to or greater
than that of any other na
tion. We have the re
sources. What we lack, al
though not entirely of
course, is a sense of dis
satisfaction with things as
they are.
The United States has an
enormous unexploited po
tential. For instance, there
are in this country some
18 million non-white per
sons who are denied, by
and large, any real oppor
tunity to put themselves to
their highest and best use.
They constitute a tenth of
the population. Our preju
dices' thus operate to en
sure, among other things,
that at no time can we ful
ly utilize more than 90
of our human capacity.
What liberties would be
abridged if we were to
avail ourselves of this op
portunity to increase our
rate of economic growth?
Similarly, our unreasoning
bias against the employ
ment cf women in anything
other thai 'traditiona'."
occupations under the close
direction (needless to say)
of a man, forecloses the
possibility of seme incal
culable amount of econom
ic growth. There are in
the United States, in ad
dition to the "under-employed"
persons noted
above, something like six
million people who are ac
tually and literally unem
ployed in other words,
contribution togrowthis
zero. Hundreds of thou
sands of these are concen
trated in so-called dis
tressed areas. 'But our fat
u o u s attachment to the
shibboleth of "state s'
aVCH OTMaaHNMt
rights" effectively inter
dicts us from making any
effort to relocate and re
train these experienced
workers when, as is the
. case, state and local gov
ernments too are accused
of being "dangerous" and
"unsound" if they spend
any money in pursuit of
an objective which is not
immediate and tangible.
Similarly, we do not dare
put the unemployed to
work at any meaningful
interim occupation, since
this would constitute an
"encroachment" by g o v
ernment. At the same time,
of course, we profess dis
may when our industrial
establishment steel be
ing a conspicuous illustra
tion runs at only half of
capacity.
We receive with -great
solemnity every admon
tion against "stifling in
dividual incentives"
despite the unmistakable
evidence that every spec
tacular increase in invest
ment i.e., in productive
capacity has occurred
precisely at a time when
taxation and governmental
spending have been at a
high level rather than a
low one. We are told that
a government policy cal
culated to reduce interest
rates would be an unwar
ranted interference with
"supply and demand" and,
hence an infringement of
liberty. But we are not re
minded that government's
present policy of sustain
ing rates at a high level is
also an infringement and
one which tends to discour
Or
By iohn Else
It seems unfortunate that
sin an academic community,
such as this one of which
we are a part, there can
not be mutual respect and
trust in one another's in
tellectual integrity. This ap
pears to be the case, how
ever, in the "feud" which
is going on between tTie
Student Council and The
Daily Nebraskan. Or per
haps one might say that this
feud has now been reduced
to a personal one between
the editor and the leaders
of the Student Council
It has almost reached the
point of tradition, where
anyone who is elected to
our student government is
automatically an-enemy of
the Daily Nebraskan. This
is an extremely unfortunate
situation, by its very na
ture. Now the Council shuts
its doors as much to aggra
vate the Rag editor as for
anything else, and, on the
other hand, whenever there
. is any dubiousness, the edi
' tor finds it much more sat
isfying to take the negative
on a Council issue or
event. And so the vicious
circle continues endlessly.
It is comical that any
kind of fend should arise
over the insignificant pro
ceedings of the St a d e n t
Council. Students cannot
really be taking the situa
tion of the world seriously if
the greatest issue with
which they deal is the clos
ing hours for girls resi
dences; this is like a couple
housewives discussing the
color they should paint the
fence on which they are
leaning while both their
homes are burning down.
It does seem, however,
that the Council has begun
some sort of an awakening
but why couldn't the stu
dents be informed of it?
Just because the material
was not in constitutional
form does not mean that
the rough draft could not
be presented to the student
body as such (i.e., a rough
draft). It would be encour
aging to know that the
Council was beginning to
move in some sort of signi
ficant direction. But per
haps the Council feels that
it is better to keep their
proceedings away from the
"masses" so that they will
not receive undue criticism
from the ignorant few who
might misunderstand. How
ever, if this is the case, the
Council doors should never
be open.
What about the Rag? I
think the general concen
sus is that it has reached a
high point in quality. The
reporting of the Student
Council proceedings seems
to be its only major weak
point evidently because of
the prejudice fermed by the
aforementioned fend. Le
gitimate gripes from the
Council include the fact
that the paper's negative at
titude does not give ade
quate credit to the Council
for its victories in behalf of
the students.
S ! private little strug
age investment in better
equipment and untried ven
tures both of which are
necessary elements in ec
onomic growth. And in
their absence, of course,
liberties are really
abridged conspicuously,
the liberty to choose from
among a number of job
opportunities on the one
hand a greater variety of
goods and services on the
other.
I hold no brief for econ
omic growth as the ulti
mate social value. It is
entirely true that at some
level an obsession. with
- growth would necessitate
sacrifices in respect of oth
er important human aspir
ations. I think it is ex
tremely important, how
ever, to point out that the
United States could prob
ably double its present rate
of growth without diminish
ing any way either our
personal liberties or our
personal standards of liv
ing. I share neither Pro
fessor Wallich's complacen
cy with the existing situa
tion nor his fear ior our
liberties should government
which after all means '
we, ourselves face up to
reality and begin to exert
positive leadership.
Stuart Hall
The Daily Nebraskan ap
preciates the comments of
Dr. Hall, chairman of the
department of economics
at the University. We wel
come and encourage simi
lar pieces from the mem
bers of the faculty. The
Editor.
Else
gles go on with no attempts
at reconciliation while the
students suffer lack of in
formation because of closed
doors or inadequate cover
age. Perhaps Ben Franklin
had something to say to
both sides: "The proud hate
pride in others." Both
are supposed to be working
for the student body, some
thing much greater than
their own pride; but Vol
taire made a good identifi
cation when he wrote, "The
infinitely little have a pride
infinitely great."
Perhaps neither side
will recognize themselves
in these quotes, but this is
just a view. . . from the outside.
Sa3
S3
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THCRC'S A fOtWT CMOIC Or ta-ON
By Dick Shugrue
Why did Sen. Carl Curtis
refuse, at the beginning of
September, to debate the
issues with his Democrat
ic opponent Robert Conrad,
saying his
sched u 1 e
was full
r i g h t up
t h r ough
e Iecti on
day and
then, in the
middle of
Octob e r,
agree to
speak to a
University legal fraternity,
finding time for the date in
his "heavy schedule?"
Perhaps the answer can
be seen by examining his
record in the years he has
been in Congress.
The Lincoln Star, ' 1-1-59,
said, "Nebraska's senior
Senator . . .. will throw
his support behind ultra con
servative Sen. Dirksen of
Illinois for the G.O.P. floor
leadership . . . One must
assume from this that the
senator is less responsive
to the desires of his con
stituents than he is obedi
ent to his own desires.
"The state can also medi
tate on the fact that what
ever further steps the sena
tor may take toward liber
alizing his position, the
summation of them cannot
equal nor offset his support
of a senate leadership that
would stifle progressive Re
publicanism . . ."
But, that's the way he's
always been.
On February 17, 1954, The
Star quoted Curtis as say
ing social security is unjust
and pointed out that he
proposed to tax everyone
and give everyone social se
curity. t
The Lincoln Journal in its
1948 voters guide, described
Curtis as an "assiduous er
rand boy (who was) essen
tially an opportunist in pol
itics. . . "
In August of 1954, the
same paper said, 'The rec
ord shows him as having
voted for the flexible farm
price support measure . . ,
Yet in his statement on fil
ing for the Senate he said,
'I do not favor going to
flexible supports.'
In line with his social se
curity record, why not pose
this statement to your doc
tor, or your independent
farmer, business leader or
lawyer: "I believe that by
requiring everyone to pay
the social security tax and
by lettting the rate go to
two per cent, we can pay the
t UUrerk "r
am igM) aiaiiar
IS CUTOM-FlTTD Oft YOU I
Strictly Partisan
bill." (U.S. News, Feb. 19,
1954). j
This is the same guy who
said "sound reason compels
an abrupt and final end of
American aid to India."
(How does Ike like that?)
As long ago as Sep
tember, 1950, Curtis was
advocating the abolition of
the U.N. as it now is and
including only "freedom
seeking" nations. He never
told how the free world
would ever be able to
check the Communist men
ace outside of the world tir
bunal, though. But, the Cur
tis position is at least con
sistent, as he advocated
the same thing just the oth
er day.
Curtis has gone down the
'road with the isolationists.
In Sept of 1950 he was re
ported blocking aid to South
Korea three times. He was
reported supporting the in
famous Tidelands oil and
gas legislation which doled
out the mineral rights to
states bordering the depos
its, although the s.o.p. has
been to limit state bounda
ries to three miles.
Here are some gems from
Carl's record:
1939: Voted against the
National Defense Bill;
1940: Voted against Nn
tional Selective Service;
1945: Voted to exempt in
surance companies from anti-trust
prosecution; Voted
.to draft unmarried nurses;
1947: Voted against the
Greek-Turkish aid bill; Vot
ed against the Voice of
America; Voted to slash
foreign relief;
1948r Voted against trade
extension agreements; vot
ed against Marshall Plan
extension; voted to cripple
European arms aid;
1950: Voted against Korea-Formosa
economic aid
On Campus
(Aior of "I Wat a Teen-age DtrarT, "The Mont
Lota of Dobie Gillit", etc.)
A FRAT TO REMEMBER
Every year, as we all know, the Benevolent and Protecti vt,
Order of Collegiate Fraternities awards a highly coveted prise,
to the fraternity house which, in its judgment, has done the
most to promote and enhance the fraternity way of life. Tha
prize this year eight hundred pounds of white putty goes to
the Signa Phi Nothing chapter of the South Dakota College
of Dentistry and Renaissance Art.
The award this year is exceptionally richly deserved, for the
Signa Phi Nothing house is the very model of all a fraternity
should be. It is, first of all, a most attractive house physically.
The outside walls are tastefully covered with sequins. Running
along the upper story is a widow's walk, with a widow stationed
every three feet Moored to the chimney pot is the Graf Zeppelin.
Indoors, the bouse gives an impression of simple, casual charm.
The chapter room is furnished in homey maple and chinta,.
with a dash of verve provided by a carp pool three hundred feet
in diameter. A waterspout rises from the center of the pool with
the housemother bouncing on the top.
Members' rooms are gracious and airy and are provided with
beds which disappear into the wall -permanently. Each room
also baa a desk, a comfortable chair, a good reading lamp, and
a catapult for skeetohooting. Kidney-shaped desks are avail
able for kidney-shaped members. -
Perhaps the most fetching feature of the bouse are the packs
of Marlboros stacked in heaps wherever one goes. If one wishes
to settle back and enjoy a full-flavored smoke, one needs only
to reach out one's hand in any direction and pick a pack of
Mariboroi-soft pack or flip-top box -and make one's self com
fortable with a filtered cigarette with an unfiltered taste that
triumph of the tobacconist's art, that paragon of smokes, that
acme of cigarettes, that employer of mine -Marlboro!
' w
ft IIVH i
The decor, the grace, the Marlboro., all combine to make
Signa Phi Nothing a real gas of a fraternity. But a fraternity
is more than Mng; it is also people. And it is ia th people
department that Signa Phi Nothing really shines.
PLiLNothinK hM mon8 its member, tho biggest
BMOCs on the entire campus of the South Dakota College of
Dentistry and Renaisnce Art. There is, for instance, William
Makepeace Sxgajom, charcoal and bun chairman of the annual
Stomp Club outing. Then there is Dun Rovin, winner of last
year. All-South Dakota State Monopoly Championship, 1S5
Pound Oj Then there is Rock SchwarU, who eaisieep J!ond.
ing up. Then there U Tremblant Placebo, who can crack pecan,
m hu, armP,U. Then there i. Ralph TunUn, who wenVbald
at eight.
But why go on? Vou can see what a splendid bunch of chap,
there ' S.gna Ph. Nothing, and when one sees them at L
house in the cool of the evening, all busy with their tasks-!
SSS ;kin ome Playing JackK,r-Better, oome clipping
Playboy-one's heart fiUrup and one', eye. grow misty and
one cannot but give three cheers and a tigTfor S Phi
Nothing, fraternity of the yearl " PM
O IMO Hu Ikntrnm
And ichllt you'rt cheering, how about a hur,h f. ,u
.tt member of the Marlboro famUy o, c llZ'l
tered. mild, delightful Philip MorWklZZE!',
Uave Commander-welcome uord? manderl
bill; ' voted against volun
tary Fair. Employnnnt
Practices Act;
1951: Voted to slice by
$10 million reclamation
works; voted against unem
ployment insurance for fed
eral employes.
This could be continued
right down to 1960, but
space forbids the fun. The
point is that Curtis has been
putting his foot in his mouth
for 22 years. He cheers rec
lamation at home, and votes
against it in Washington;
he supports foreign trade
expansion at home, and
votes against it in Washing,
ton; he claims to support the
laboring man, but voted
for Taft-Hartley and against
FEPC. etc. etc.
The record alone is good
enough reason for Curtis to
squirm out of debate with
Conrad.
The record alone is rea
son enough to send Curtis
back to Minden.
Soil Scientist
Speaks Tonight
An internationally known
soil scientist from Holland,
Dr. D. J. Doeglas, will pre
sent a lecture at Morrill Hall
tonight at 8 p.m. v-
Dr. Doeglas, . professor of
geology and mineralogy at the
University of Agriculture at
Wageningen, Holland, served
as a visiting professor at
Louisiana State University in
1949.
His current U. S. tour is
sponsored by the American
Association of Petroleum
Geologists. His visit to the
University is jointly sponsored
by the University Research
Council and the department
of geology.
with
I