The Wilmington morning star., 1947-04-22

i The progress we have made il
t demonstrated by comparing the
| present time with the year 1929
which was the year of highes
economic activity before the war
The physical volume of industri
al production is now II per cen
t greater than it was in 1929. Thi
is actual physical volume. 1t i
rot dollar value.
The physical volume Of agricul
tural production is now 80 pc.
cent greater.
Civilian employment is now II
millions greater.
Our national income - includ
ing individuals and corporations
is now running at an annual rate
Of IT'S billion dollars, c~ontrastee
with only 83 billion dollars IN 1929
Now, what have these grea'
gains since 1929 meant to all O.
us?
In 1929 the average income o:
individuals in this country w a
1854, after taxes. Today, it is ST.
900, after taxes. Expressed in dol
lars of equal purchasing power,
the increase has been from $685.
in 1929 to S 900 today. This means
on the average. for every man,
woman and child in the country
an increase of 30 per cent in tne
power to buy goods and services
with current income. This is the
measure of the rise in our stan.
dard of living in less than one
generation.
This is not a record of a r
production. 1t is an unparalleled
record for peacetime goods a n q
services, devoted to the needs and
enjoyments of the American peo-
pie.
But I must say in all frankness
that the economic skies are not
entirely clear. One cloud is shad-
owing our economic future.
That cloud is caused by t h e
sharp and rapid rise in prices.
Some say this cloud is certain
to burst. They are sure of a recess
sion Or a depression. I do not
share their belief that either of
these is inevitable.
can prevent this economic cloud
burst. But it requires prompt, pre-
ventive steps.
Price increases have been felt
by every American family. No one
needs to tell them how much the
cost of living has increased!
House furnishings, for example,
have gone up % per cent above
the 1945 average.
Clothing has gone up "a per
cent.
Only rent, because it is under
rent control, has remained practi-
cally stable.
Even more dangerous than the
rise in retail prices is the sharp
rise in wholesale prices since 1945.
Here are examples:
Textiles up 80 per cent.
Farm products - up 40 p e r
cent.
Building materials - up ST per
cent.
Food - up SO per cent.
Excessive wholesale prices are
translated inevitably into higher
retail prices. With higher and
higher retail prices, families can
buy less and less. Thus, excessive
wholesale prices are hitting at the
foundation of our prosperity, for
we can be prosperous only when
business activity is at its maxi
num-.
There are some who say that
prices are not too high, so long
as buying stays at high levels.
From the human standpoint,
l reject this argument
1t provides no answer to those
living on fixed incomes, such as
teachers, civil servants, and wild.
oWs.
1t provides no answer to those
veterans who must pay substanti-
ally more for houses than they are
able to afford.
1t provides no answer to many
millions of American families jr
every city, town and rural area.
Because of high prices, too many
Of these families are spending
their meager savings and cashing
their war bonds. They are post
poning necessary medical care.
They have gone into debt in an
amount so per cent greater than
a year go. They are doing this,
rot through choice, but in order tc
make both ends meet. And mos
of these many millions have nc
ore, except their government, te
speak for them.
In addition to this human as.
pect, it is a dangerous economic
fallacy to say that prices are not
t o o high, simply because people
r still buying. A bridge designed
to carry 10 tons is not safe with
Is tons on it even though if has
not yet begun to cave in. The ex
cess weight must be taken off the
bridge in time. When it begins Il
crack, it is too late.
There is one sure formula for
bringing on a recession Or a de-
preston. That is to maintain ex'
cessively high prices. Buying
} AT FOUNTAINS