Evening star., 1950-01-06
MILLIONS o. PRISONS

the year, business investment has
not kept pace with the improve
ment in economic conditions. If
the downward trend in business
investment were to continue, our
prospects for full recovery and
continued expansion would be Sc
riously endangered.
There is no need for this de-
cline to continue. There afe i'm
mense opportunities for business
and investment in nearly every
segment of the economy. There
are In general SUFFICIENT funds
available to businessmen who want
to seize these opportunities. The
initiative Of business, aided by
proper Government policies. can
and should soon reverse the trend
Of business investment. 4.
Business investment can con-
tinue at q high level only If mar
kets for consumer goods continue
to expand. Price and Mage poll
cies should be directed at enlarg-
ing these markets. For only by
broadening the distribution of
goods and services can our busi-
ness system flnd full use for its
expanding productive capacity.
The events Of 1949 demonstrated
anew the basic strength Of the
American economy. They also
demonstrated that economic af-
fairs are not beyond human con-
troll. We should now seek TO
establish a course that will COM
plete the recovery and carry US
on to steady economic growth.
SUMMARY OF THE ECONOMIC
SITUATION.
Total civilian employment in
1949 averaged 58,700,000. some
what less than the average of 59,-
100000 in 1948, and was So, $780,
600 in December, 1949. Nom
agricultural employment fell dur
ing the first five months, reach
ing low of 49,700, 900 in May.
Since that month it has increased
at more than the usual seasonal
rate, reaching 51,So0,000 in De-
cember.
Over the year. unemployment
averaged 3,400, 900. or about S per
cent Of the labor force, compared
with 2.100,000 or 3 per cent of
the somewhat smaller labor force
in 1948. Unemployment at its
worst in July, 1949 amounted to
100000. In December, it was
Just below $500, 0,ooo-1, SOC, 900
more than in December, 194s.
There has been a rapid rise in the
number of unemployed workers
exhausting their rights to unem-.
ployment benefits.
Total production OF all goods
and services in 1949 was $685.
600, ,000. 900. Adjusted for changes
in prices, this was about per
cent lower than in 1948, and fell
short of maximum production by
or per cent, or ten to $13,-
000, 100000. The sharpest drop
was in industrial production.
which averaged 9 per cent lower
than in 194S. while agricultural
output dropped about per cent.
Construction advanced about 5
per cent. and output Of electricity
and gas rose about 2 per cent.
There was a gain in the service
industries.
From November, 1948, until the
low point of July. 1949. industrial
production declined II per cent.
Since July the trend has been up
ward, interrupted only by work
stoppages. BY December indus
trial production had regained
nearly half of the lost ground.
Prices during the first half of
l949 showed a general but mod
crate decline, followed by relative
stability in the second half.
Wholesale prices by the end of the
year were down per cent from
their level year earlier and II
per cent below their 1948 peak.
The sharpest declines were in
farm and wholesale food prices.
Farm prices are now % per cent
below the postwar peak and IL
per cent below what they were a
year ago. The drop in consumers
prices had declined 2 per cent be-
low the level at the end Of 1948
and 3 per cent below their post
war peak.
No General Wage Pattern.
Wage increases were received by
a much smaller number of work
ers than in previous postwar
years. There was no general wage
pattern. Wages averaged slightly
higher than in 1948. and con-
sumers' prices were somewhat
lower. One outstanding develop
Iment was. the growth of pension
and sociall insurance plans Il