( 201 ) 



time of war. Such a program would result in a delayed infla- 

 tion. The nation would then experience all the disadvantages 

 of inflation and none of its benefits. 



Subsidies do not operate automatically and are not im- 

 personal as are freely fluctuating prices. They are not doled 

 out by a miracle man. Political abuses, errors in judgment, 

 and discrimination are inevitable. Subsidies are a habit- 

 forming narcotic that spreads and becomes a necessity. In 

 the words of William Pitt, 8 "Necessity is the argument of 

 tyrants; it is the creed of slaves." 



Subsidy programs to pacify the consumer and prevent in- 

 flation are merely one of the many blueprints of an unobtain- 

 able economic Utopia. 



England's Subsidized Food 



England has kept her official index numbers of food prices 

 from rising. Many contend that this has been possible be- 

 cause of the extensive use of subsidies, and argue that the 

 United States should do likewise. 



During 1939 and 1940 England's food prices rose much 

 more rapidly than those for the United States (table 1). 

 During 1941-3 food prices in this country rose rapidly, 



TABLE 1. PER CENT CHANGE IN RETAIL PRICES OF FOOD 



FOR ENGLAND AND UNITED STATES PRIOR TO AND 



DURING THE LEND-LEASE ERA 



* Nineteen months, August 1939 to February 1941. 

 t Twenty-seven months, March 1941 to May 1943. 



3 November 18, 1783. 



