Evening star., 1950-01-06

the minimum leVel consistent Win
labor mobility in a free economy.
We should strive this year to re-
duce unemployment from $500, 900
to 1000, 900, or 2,500.000 at most.
This would mean about 81 100000
civilian jobs. It would mean STEP
ping up our national output by
about Z per cent above the 1949
total. These are our objectives
for this year under the Employ
ment Act.
Second. The benefits Of growth
and progress must extend to all
groups.
Only in this way can the long
run welfare Of any group be pre-
served. II any part Of our economy
Is depressed, or fails to gain. 1t
can only serve as q, drag against
the gains OF other PARTS, -. !. :
Growth Requires Enort.
Third. This growth win not
come automatically. but requires
conscious purpose and hard work.
Productivity per worker should
be increased by at least 2 to az
per cent a year. Labor should base
its policies on the prospect Of q
stable and expanding economy.
Businessmen should base their In
vestment policies on confidence in
growth, shape their price policies
to the needs Of larger markets, and
proceed with visor and ingenuity
to develop new md better products
OF all kinds. Farmers should make
full use OF new technology, and
make shifts In production toward
those commodities most needed in
a growing peacetime economy
Fourth. The fiscal policy Of the
Federal Government must be de-
signed to contribute to the growth
Of the economy.
The Federal Budget is an i'm
portant part of the national econ
omy. Wise budgetary policies can
promote stability and maximum
production and employment
throughout the economy.
In fields such as resource de-
velopment, education, health and
social security. Government pro-
grams are essential elements of
our economic strength. If we cut
these programs below the require
ments OF an expanding economy,
we should be weakening some Of
the most important factors which
promote that expansion. Further
more, we must maintain our pro-
grams for national security and
international peace. These pro-
grams are the defense of the
world against disaster. Upon
them, our whole future depends.
Government revenue policy
should take into account both
the needs of sound Government
finance and the needs of an ex-
panding economy. Federal re-
ceipts should be sufficient over a
period of years to balance the
budget and provide a surplus for
debt reduction. At the same
time, the tax structure, and the
changes made In it from time to
time, should be such as to promote
the amounts and types OF invest
ment, consumption and saving
needed for economic expansion.
We should recognize that the ex-
pansion Of the economy will gen.
crate additional revenues and
strengthen the fiscal position of
the Government.
Fifth. We must deal vigorously
with trouble spots which exist III
our economy in times of general
prosperity.
Special measures are needed to
help low-income groups and even
more important, to provide them
with better opportunities to help
themselves.
ECONOMIC POLICIES.
Under our system, private and
public policies go hand in hand.
Private economic policies provide
motive power Of the economy.
Public economic policies provide
the framework for economic ac-
tivity. Sound plans for our future
growth must take account of both,
and blend them to achieve maxi
mum effectiveness.
The basic economic problem
facing the country now is not to
combat imitation. Instead 1T is to
increase production, employment.
and incomes to complete the re-
coyery from the 1949 downturn,
and go on to the higher levels
which will be made possible by a
growing population and rising
productivity.
Business policies concerning
prices should be determined with
these objectives in mind. In gen.
eral, prices now seem at or near
a stable level consistent with con-
tinued expansion Of business &C.