Evening star., 1952-08-25
81
The National Economic Health

The American economy appears to be busting
out all over.
The following significant statistics have
broken into print in the past week:
The consumers price index measurement
for cost of living, reached new high OF 1908
in the period between June is and July Is. The
index base of 100 Is geared to the average Of
prices in the 1859 period. The greatest con-
tributing increase in the latest measured month
was in food prices, up by is per cent over the
previous four weeks. The current upward trend
has been constant since last February.
Federal tax collections for the fiscal year
ending last June 80 reached record total of
$649 billion-about $14.5 billion more than during
the previous fiscal year. Estimated collections
for the present fiscal year, ending next June 80,
total SIS billion-up another $40 billion from
the brand-new record.
Federal budget estimates were revised from
predicted Treasury deficit Of $144 billion next
June so to q deficit of "only' sos billion. This
paper improvement of $41 billion arises out Of
a reduction of $64 billion In expected expendi-
lures and a drop of $23 billion In expected
revenues.
Rejecting some Of the effects of the long
steel strike, civilian employment in July was
estimated at 62.2 million persons or drop OF
about $4,000 under the June total Unemploy
ment was figured at 19 million as against 18
million in June. In 1885, by contrast employ
ment was estimated at just under As million.
President Truman estimated in his Midyear
Economic Report that civilian employment win
reach about 66.5 million by 1860.
In that same report, the President said that
the total national output estimated for 1862 win
be nearly 90 per cent above the output in 1899.
On dollar basis he measured the total output
for 1852 at rate of $340 billion against $500
billion in 1851.
On their face all these figures would indicate
an unprecedented prosperity for the Nation today.
Unfortunately there must always be an important
qualification about prosperity, namely. whether
its foundations are sound and lasting.
We are making gigantic effort today to
rebuild our military defenses and to make
major contribution to the same end in many of
the other free nations of the world. Outlays for
security programs which were running at the
annual rate of $40 billion in the second quarter
of 1850 were up to $50 billion in the second
quarter last year and are expected to come close
to $65 billion next year. The production Of
ornaments and the instruments Of warfare Is
waSteful endeavor in purely economic terms
leaving no capital Improvement to show for the
expenditures Of money and resources. Para
doxically, the anticipated stabilizng Of our
defense expenditures in the next year or two
Will PfoUdUy NC dCCUilPdtAeu Wy o ueCAcdSS Al
employment, In tax returns and in national
income.
There have never yet been uninterrupted
upward trends In the national economic health.
There Is still good reason to believe, however,
that the wealth Of America In natural resources,
In industrial plant and ingenuity-n guided with
political responsibility can keep this economy
strong.
The stainless-steel dentistry Of the Russians
amazed an American at Helsinki. hardened
though he was to the grille work on our 50
motor line. .@
y -