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Reports & Studies

Committee on Economic Security (CES)




Volume VI. Social Insurance

J. Economic Reform and Security Proposals


John N. Webb


TO: Mr. Alex G. Nordholm
FROM: John N. Webb

SUBJECT: The Deane Plan

When I promised to write a brief criticism of this proposal, I had in mind following the author's reasoning as he develops his thesis, and noting logical or factual statements that I felt were open to question.

But when I tried this procedure, I discovered that I was in danger of becoming as dogmatic in my criticism as Mr. Deane is oblivious to the economics of production for profit. I therefore scrapped my scribblings and content myself with calling your attention to one confusion and one omission, either of which leaves much for proponents for the plan to explain.

From the foreword it is apparent that Mr. Deane has adopted the "money level" for his analysis. If this is borne in mind, it becomes apparent that either the author does not realize the difference between price and value, or realizing it, feels that he has avoided the confusion that has led many before him into error. In either event, much remains to be explained by Mr. Deane on this score.

The banking system is strangely absent from a discussion which presumably has to do with the money aspects of economic functions. Either the author chooses to consider the role played by banks and bankers in our economic system as negligible or he assumes that the banking system functions so perfectly as to be taken as a constant in the equation between production and distribution.

This should be enough to indicate the direction of my criticism.

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