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Show both in the detailed formulation of these plans and in their operation, individual farmers, workers, and businessmen, as well as agencies of local, State, and Federal Government, will play an indispensable and fully responsible part. The Federal Government is clearly charged with responsibility for safeguarding and develop- ing our resources, but it is only one of the agencies involved. Its specific role is one of leadership- the provision of relevant scientific and economic information and coordination, as well as a public investment function on behalf of the entire Nation. These functions aid and supplement, but can never supplant, the work of local indi- viduals and groups directly concerned. When multiple-purpose dams are built with Federal funds, the Federal Government enters the field of economic enterprise. The justifica- tion for this is beyond question. No other agency can command sufficient capital resources or pro- vide the coordination necessary for the construc- tion of these great programs. But Government enterprise does not in any way supplant private enterprise. Rather its purpose is to create the over-all conditions, the framework, in order to provide the opportunity for the further expansion and healthy functioning of a free, competitive economy. In other words, "planning" in the American sense means planning to maintain and strengthen free competition. Where natural monopolies exist, therefore, it is in accordance with the American system that the Government should itself provide competition, if this is deemed neces- sary to insure its benefits, as for example by pro- viding low-cost and abundant power. But it is not in accordance with the American system, nor is it any part of the purpose of the plans for water development proposed in this report, that the Federal Government should itself become a great monopolist. The Economic Responsibility of the Federal Government The sums which the Federal Government has already invested and will in the future invest in water resources development are a substantial factor in the total Federal budget, and in the total national economy. The Federal budget is limited, and water re- sources development is only one of the claims upon it. How much we can spend for this one purpose, and in what sequence, is a decision which requires the careful weighing of all alter- natives. How much need we pay each year for past wars, for national defense, for health, edu- cation, postal services, and all other Federal functions? It is the responsibility of the Federal Government to seek to allocate all Federal funds in such a way as to yield the maximum total benefit for the Nation. Within the budget allocated to water resources development, similar decisions must be made. How can the funds be used in such a way as to achieve maximum benefits? From the point of view of any one region, the policies of the Federal Government must necessarily often appear "con- servative." Many worthy projects will be pre- sented, but not all can be undertaken. It is not enough, from the point of view of the Federal Government, that a project be good; it must, in order to justify itself, be the best among alterna- tives. Consideration of each project from the point of view of the total national interest may involve factors which at first sight seem remote from comparison of dollar costs and benefits for any one project. For example, water resources development in a populous, low-income region might, by giving the people a chance to raise their own income level, lighten pressures on the Federal budget for such services as aid to education. The promo- tion of a greater balance between industry and agriculture in certain regions, or the need for industrial dispersal as part of national defense, might also be relevant in assigning priorities. The magnitude of the sums involved in Fed- eral water resources development make it neces- sary, in the interest alike of efficient development and economic stability, for expenditures to follow an orderly, long-range plan. Whatever the merits of public works programs as an aid in minimizing cyclical fluctuations in the field of business, it is undeniable that clearly defined com- 8 |
