Evening star., 1953-11-22
Unperturbed Experts See u. S
Holding Its Own in Long Run

keep icon spending 81 to IS bill
lion a year merely to permit
Europeans to buy more goods
from this country and raise
their living standards more rap
idly than they can now.
Does this mean that the
United States will be perma-
nently squeezed out of the world
market?
Trade Expansion Healthy.
The experts think not. They
go on the theory that all ex-
pansion of international trade
is inevitably healthy from the
American point of view in the
long run. Today, best customers
for United States goods are
highly developed countries with
expanding economies. Canada
where development boom is
bringing a rapidly increasing
demand for investment money,
equipment and consumer goods
is a fine example. If there
were more Canadas, it is ar
gued, the United States wouldn't
suffer for it.
The temporary dislocationS
and pains are not as serious as
they seem, it is said. A favor
lite parallel is the industrializa-
ton of the Southern States
within the last decade. Certain
Northern industries are still feel
ing the pinch from the newborn
competition. BN it could hardly
be argued that the overall ma
tional economy has not been
strengthened and enriched.
In terms of the .long-range
outlook, the experts here are in
clined to optimism. Given the
same rate of progress-and given
no major war-they feel that
the demand for American goods
will return. At the moment, the
free world is boarding it's dol
lars and openly discriminating
against the United States if
there is likely alternative sell
Ter. In time, increasing pros
perity. higher living standards
and better overall trade posi-
ton will force this country's
allies to let down the barriers.
When that happens-and care
fully-hedged estimates put the
time at five years from now
there is faith that the American
economy can compete success
fully with anybody.
In this bright forecast there
is one big ''if" which takes some
of the complacency out of the
official view of the present pic
ture.
Danger of Reaction.
If the United States, through
an exaggerated political reaction
to its temporary economic
cramp. should revert to a policy
Of higher tariffs and greater
trade restrictions, the result
could be disastrous. At the very
least, the growth of the free
worlds economy would be in
hibited. If the policy were imi-
tated, it could be stagnated, and
all the gains that have been
made would be undone.
The economic experts of the
present administration aren't
dreamers. They realize that the
question of protecting American
producers against foreign COM
petition is not an easy one to
answer. They don't recommend
that all restrictions could or
should be abolished in a hurry.
They realize. however, that
the pressure that has led this
country to take the lead in re-
ducing trade barriers in the past
is now largely on the other foot.
They are aware that the subject
of growing foreign competition
will be one of the hottest subjects
of debate in the coming session
of Congress.
And they hope that in making
their choice, the gentlemen on
Capitol Hill will keep their eyes
on the Frightening horizon, and
not be over-impressed by the
cries of woe that are certain to
ring in their ears.