Evening star., 1950-08-19
Our Productive Miqht

In the three-month period that ended on
June 30-a period in which our economy had not
yet been affected by the stepped-up military
production resulting from the Korean war crisis
this Nations output of goods and services
reached fan annual rate of $270 billion, the
highest in our history.
The new figure, which undoubtedly is climb
ing steadily in the current quarter, represents
a gain of SO billion over the previous high at
tanned in the closing three months of last year.
To understand what this means in terms of the
continuing and astounding growth in our pro-
ductive capacity, we have only to keep in mind
that it represents real increase (the changed
value of the dollar being reckoned with Of
$110 billion over the annual rate of output
achieved in 1899, when we turned out what was
then considered to be an impressive total OF
$3.50 billion in goods and services
Clearly, in way that has been unparalleled
in the history of the world, our industry and
agricuture-within the short span of a decade
have expanded their productivity on a gigantic
scale. Nor is there anything in sight, barring
the possibility of catastrophe atomic assault
on the continental United States, that is likely
to check the trend toward further constant
pansion Indeed President Truman has been
conservative in declaring, in his recent Midyear
Economic Report to Congress, that by the begin
ming of 1851 our economy will be capable of
producing at an annual rate of $275 billion
even Without an increase in our present labor
force or in hours of work. AS matter of fact,
in the relatively near future, the total may well
be in excess of $500 billion, or double our output
capacity, our national gross product" of ten
years ago.
Given this tremendous productivity, and
making the large but not necessarily silly as
sumption that the Korean crisis will not suddenly
explode into an all-out global war, there is good
reason to believe that our present rearmament
and partial mobilizaton-if adequate controls
are in operation or held in readiness on standby
basiS-can be maintained in the years immedi-
ately ahead without endangering the basic sta
bility of our civilian economy This point has
just been effectively dramatzed in a nationwide
radio program by the National Association of
Manufacturers Speaking through the representa-
tives of nine essential nduStreS-food, rubber,
STEEL oil, textiles, electrical power electrical
machinery, machine tools and building materials
the NAM has shown that output and supplies
ample to meet the current emergency and
that only senSeeSs boarding and scare buying
can create the kind of artificial shortages and
inf1ationary presSures that would require drastic
governmental action.
All this is something that should receive
the attention of every American. Of course in
these days of grave stress and strain when a
general war is possible, nobody has any reason
to feel complacent about the Nations over
whelming supremacy in productivity-a product
ivity that could be sharply reduced by atomic
attack At the same time, however, we ought
not to forget that this productivity, spared the
challenge of a global armed conflict, has ex-
panded-and is still expanding-in way that