The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1949-02-17

Ilcan people ana Lnelr PoVeIililello
have the chance right now to mold
their economic future, Vice-chair-
man Leon Keyserling of President
Truman's Council of Economic Ad-
visors told the Joint Congression-
al Committee on the Economic Re-
port this week.
The first thing to do, Keyserling
advised the Congressman, is to
answer the 1900 billion dollar
question"
"We have not yet adopted the
programs needed to iron out the
business cycle, or at least to reduce
the extent of its ravages," Keyser-
ling warned.
"Another major depression with
in the next 10 years, as much
larger than the last one as our
economy is now bigger than the
prewar economy, could cost us
about 800 billion dollars in lost ma
tional income. Economic policy
needs to concentrate upon this 500
| billion dollar question, and the
answer we provide will shape our
own future and largely determine
our place in world affairs"
In the opening presentation OF
the Administrations economic pro-
posals before the new Congress,
Keyserling said "the economic
weather ought to be bright dur
ing 1919; and within a decade, if
we maintain maximum employ
ment and production, we can in
crease our annual output by a
third or better and correspondingly
improve our standards of living"
First, though, he warned of six
! sore spots which are "maladjust-
ments" that must be corrected "be-
fore it is too late to act effective
ly." They are:
1.-THE cost of living has risen
74% since the middle of 1899, and
29% since the middle of 1916. The
downturn in the cost of living in
recent months has thus far beer
only about 2fo and there is as yet
no assurance that it will continue
The cost of living is now higher
than at the beginning of last year
At the current cost of living, clear
ly more than a fifth and possibly a
fourth of the families in the coun-
try do not have sufficient income
to maintain what has been defined
as a reasonably adequate living
standard. People living on fixed
income have been hit hardest. Pos
sibly a full half of the families in
the lower income groups are cur
rently spending more than they
earn, or barely breaking even. :.
the immediate outlook is not sug-
gestive or sharp decline in living
costs, and some increase may
occur. Rent is creeping upward ;
and even with good crops the per
capita food supply will not in
crease. During the first half f-year,
at least, meat will be in shorter
supply"
2-"The farmers share of the
consumers dollar has dropped
constantly since 1916, and the cost
of living can and should be reduc-
ed without driving farm income
further downward. This can be ac-
complished by lower distributors
margins, and by a comprehensive
program to stimulate farm output
and improve efficiency"
3-There has been a "sharp and
continued" increase in certain vital
industrial products like metals,
fuel and lighting materials and
house furnishings. Residential
construction, for example, showed
a severe drop in 1913 because of
outpricing of the market; and we
cannot afford to wait until the
same thing happens in other vital
areas which would lead to serious
unemployment and cutbacks in
production"
4-The share of the national