Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-12-30
Administration Trying
New Type Of Boom,
Economists Told
By Froncis P. DouqIos

sS"$aS : @'VASbGS
The Eisenhower administra-
ton is engaged in an important
and novel economic experiment
to try to promote a special kind
of boom, using monetary knowl-
edge acquired in the last 20
years.
This was reported today by DR..
George H. Hildebrand. econo-
mist of the University of Califor-
MIA at Los Angeles. During World
War II he was principal econo-
mist for the War Labor Board.
DR.. Hildebrand said the es-
Sence of the administrations ex-
pertinent is IAN attempt to main
tain an expanding economy Of
private enterprise despite a grad
ual withdrawal Of large-scale
supporting Federal expendi-
lures"
He was one of the speakers at
q program held by the American
Economic Association today at
the Hotel Statler.
The principal means for the
boom promoting experiment, he
said, are substantial tax reduc-
tons coupled with easy money
applied to a system now free
from the former controls.
Estimates Needs of Boom.
The hope is to keep the present
boom going. To achieve this, DR..
Hildebrand said. will require an
increase of l million jobs next
year with average weekly hours
kept approximately unchanged
and with an increase in the out
put per worker of 2.5 per cent.
This would result in a gross
national output of 1894 billion
in goods and services, he esti-
mated. This figure would be
about SIS billion above the esti-
mated 1853 output.
s With an estimated cut of 50 to
So billions in Federal spending,
other chief forms of spending
would have to rise by SIT to $18
billions to keep the boom alive,
DR.. Hildebrand said. He figured
this total could be reached this
way:
Increases of SIS to $2.2 bill
lions in private investment; $50
billion in spending by consumers,
and STA billions in State and To-
cal government purchases. Add
to this the "compensating fac
tor" of tax reductions of So bill
lion if the scheduled rise of ST
billion in Social Security con-
: tributions are postponed. That
brings the total. to around $18
billion.
Sees Imitation Threat.
If that is achieved, DR.. Hide
brand went so far as to warn
against renewal of imitation.
Another speaker, DR.. William
j, Fellner, professor of economics
at Yale, warned that depression
is becoming less of threat than
imitation.
Contemporary governments
are much freer to counterfeit de-
dationary influences than were
those OF the past" he said, "but
they will find it difficult to SUD-
press inf1ationary developments"
He explaines that this stems
Irom the political influence of
those in the lower income groups
and the power acquired by those
IN the relatively overproducing"
industries to obtain subsidies.
Prof. Albert Gailord Hart of
Columbia University warned of
a serious recession in the type
OF spending that can be post
poned. Whether it comes in 1854.
he said, it will come in the next
few years. the obvious remedy,
he added, is to give the people
more money to spend through
tax cuts.
He declared the Nation has
the means to hold a recession
within limits it can readily stand.
But, he added, the effects abroad
of even a mild recession here
could be disastrous.
Type of Economy.
This discussion on how to
keep the economy in good shape
followed one last night on just
what kind of economy we have.
The speaker then was Calvin B.
Hoover, president of the Ameri-
can Economic Association and
dean of the Graduate School of
Duke University.
DR.. Hoover recalled that the
Eisenhower victory in 1852 added
emphasis to the contention that
our economy would remain one
of individual enterprise He sees
1t. however, as what he called an
"organizational economy"
h Fundamental changes, he said,
had taken place by the time of
the Great Depression. He listed
these as the growth in the size
of corporations. induStry-wide
collective bargaining and devel-
opment of a complex money and
credit mechanism. He added that
the intervention of Government
in behalf of labor and the far
mer has made it doubtful that
the State, in the future, can
stand aside from the struggle
over the division of the national
income between various seq
ments of society.
Corporate Competition Now.
Competition still plays an
enormously important role in
the economic system, DR.. Hoover
said. But, he went on, COMPETE
ton is no longer primarily
between individuals; it is be-
tween corporate entities. includ-
ing farm and labor organiza-
tons.
President Eisenhower, it was
announced last night. sent let
tiers to DR.. Hoover and to Prof