The Omaha guide., 1947-09-06

Will PiiSC anu III some
industries have materially exceed.
ed them. The major exceptions
to the rule have been the white
collar and professional classes,
whose earnings, measured by the
yardstick of purchasing power.
are less than during and before
the war. People living on fixed
incomes have taken a tremendous
financial beating. 1t is the labor.
ing groups which have benefited
most.
Herbert Hoover recently said
that he could not foresee any i'm.
portant drop in businesses in the
near future. That point of view
is widely shared at the present
time, even by some of the COM
mentators who anticipated econ
omic upheavals this summer. This
optimism as to the immediate out
look is producing increased pessi-
mism as to the long-term outlook
on the theory that the longer the
boom lasts the more severe will
be the break when it comes. 1t
is situation where the old prize
ring dictum that "the bigger they
are the harder they fall" applies.
But this is in the realm of specu-
lation. The business induces are
still going up, and the goal of
full employment seems to have
been reached. In many important
lines, output would be a great
deal larger than at present If
more supplies were available.
Every consumer knows that I'll
this has done to prices. Here, a.
gain. those who forecast last fill
that substantial price brea,-3
would come by mid-1947 wwc-e
badly fooled. The Bureau of Labor
Statistics price index recently
touched another new high, and
it is expected to 60 higher still.
That is the result of many factors
governmental fiscal policy, fore
ign buying in a tight market, ever
expanding business overhead, etc.
To choose the most obvious rea-
son, higher prices are inevitable
when 10000, 600 people, earning
the highest pay in history, are
painting goods and services Of all
kinds. There are still many people,
to whom price is of little conse-
quence-as the so-called used
automobile" market abundantly
proves. Throughout the country,
1947 automobiles bring bonuses Of
from $500 to $500 on the used
car lots-and dealers report that
there is no dearth of purchasers.
The loosening Of the regulations
on time-payment purchases has
been a factor in keeping sales Of
expensive articles at the peak
level. When families run out of i,
cash, they a keep on buying on
liberal installment terms. In some
such as radios, evidence Of /
.ver-production is apparent, espici- ,
ally of unknown brands. But slap
lie. advertised goods Of all kinds
are selling well.
Very few people believe that
this is a healthy economy. Econ
omists for industry shake their
heads when they start talking
about the longtime future. SO do
thee economists for the labor un-
ions. All of them are concerned
whit what might happen if we
mad a depression accompanied by
nigh prices. 1t has never happened
this country. lie hashappened
n many other countries. And is
an unpleasant prospect.
Practically everyone is now con-
'inced that u. S.-Soviet relations
uill-continue to-deteriorate, at
east forethe next yeareor SO. The
high hopes hat were oncewidely
leId FOR real cooperation Between
.he two powers to rehabliiate
Europe and the Far East have
eyaporated like dew in the desert.
In informed U. S. quarters. it
also believed that this is per-
in accord with the plans Of
he Ssviet top command. Russia,
The belief goes; is determined TO
any American plan for
sterilization. Reason.
. hungry and hopeiess Europesis
happy hunting ground for the \
cornrdttnists YSoy9 5Soa .aSA \
This Soviet policy has patio on