Volume VI. Social Insurance
J. Economic Reform and Security Proposals
THE DEANE PLAN
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
This should be enough to indicate the direction of my criticism.
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