tive needs with unerring accuracy, and since we no longer make motor cars or tractors, but merely the parts which when assembled become motor cars and tractors, the facilities as now provided would hardly be sufficient to provide replacements for ten million cars. And it would be quite the same with any business. We do not have to bother about overproduction for some years to come, provided the prices are right. It is the refusal of people to buy on account of price that really stimulates real business. Then if we want to do business we have to get the prices down without hurting the quality. Thus price reduction forces us to learn improved and less wasteful methods of production. One big part of the discovery of what is "normal" in industry depends on managerial genius discovering better ways of doing things. If a man reduces his selling price to a point where he is making no profit or incurring a loss, then he simply is forced to discover how to make as good an article by a better method--making his new method produce the profit, and not producing a profit out of reduced wages or increased prices to the public. It is not good management to take profits out of the workers or the buyers; make management produce the profits. Don't cheapen the product; don't cheapen the
