WHAT PEACE CAN MEAN TO AMERICAN FARMERS 21 



housing expenditures have been discussed. How successful the 

 private housing industry will be in lowering costs so that low-income 

 families can finance adequate houses without special public assistance 

 remains to be seen. If, however, relatively great strides are not made 

 in this direction at a much more rapid rate than in the pre-war 

 years, it is very likely that many thousands of families, even under 

 conditions of full employment, will be inadequately housed. Public 

 expenditures to provide better homes for these low-income families 

 would, therefore, not only be a stimulus to employment, but would 

 also be filling a need for improved housing that is especially great 

 among both farmers and urban workers. 



The accepted method for meeting this need in urban areas is for 

 public agencies to construct and own the houses and rent them to 

 low-income families at a rental which approximates 20 percent of 

 the family's income. Legislative authority for the Federal Govern- 

 ment to engage in this kind of public-housing program is now pro- 

 vided by the United States Housing Act. Moreover, considerable 

 experience has already been gained by local housing authorities in 

 building, managing, and operating residential properties for low- 

 income, urban workers. The general method is one which is adapted 

 to State and municipal financing, as well as to Federal financing. 

 Like many of the other public-expenditure programs, those for 

 housing can be partially self -liquidating. Appropriate methods 

 should be developed for an adequate extension of public housing into 

 rural communities. 



In addition to these possibilities for increasing the investment 

 type of expenditures, there is a wide variety of possibilities for 

 increasing the consumption type of expenditures. These may be made 

 for the purpose of increasing the consumption of specific commodities 

 or they may be generalized for the purpose of increasing the consump- 

 tion of all commodities. 



A program of the first type designed to increase purchasing power 

 with reference to specific items would also increase aggregate con- 

 sumption, insofar as consumer expenditures for other items were not 

 decreased. A typical program of this kind was the Food Stamp Plan, 

 which directly increased consumer expenditures for food. Of 

 course, such a program could be broadened to include items other 

 than food, such as housing, education, or clothing. The administra- 

 tion of programs of this type is somewhat complex because the 

 increases in consumer expenditures must be channeled against par- 

 ticular types of goods. But one important advantage lies in the fact 

 that consumer purchases may be directed along those lines for which 

 increased consumption is particularly needed. 12 Moreover, objective 

 minimum standards, such as exist for nutrition, housing, and educa- 

 tion, may be used as "floors" below which the consumption of these 

 particular items is not permitted to fall. 



One of the simplest methods available for putting into effect a pro- 

 gram of the second type aimed at modifying the consumption of all 

 commodities would be to raise or lower the amount of income tax 

 withheld. Other generalized methods could be employed, but under 

 any of them individuals would be free to use their increased purchas- 

 ing power according to their choice. Aggregate consumption would 



12 This objective is emphasized by Sir William Beveridsre in his book, full employ- 

 ment ix a Fr.EE society. 420 pn.. illus. 1944. (See pp. Iu7-166.) 



