Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-04
Planners Warn u. S. Must Act
TO Avoid New Unemployment
By John Y. Horner

By John Y. HoFnef
The National Planning Assoc
citation sounded . call last night
for action by both the Govern
ment and private enterprise to
make better use of the Nations
productive capacity.
The association issued a re-
port warning that unemploy-
ment will increase substantially
within the next year unless steps
are taken to correct existing
policies.
It said inaction will cause UNI
employment to increase from the
present 5 or s per cent to APP
proximately 9 per cent. It de-
clared involuntary idleness on the
part Of large numbers of workers
and the under utilization Of pro-
ductive capacity would be mex
cusable in q perilous world situa-
ton.
Room for Economic Expansion.
The report, stressing the OPP
portunities for economic expan-
sion, was compiled by the NPA's
Steering Committee. This is q
study group of bankers. econ
omists, businessmen and labor
union leaders.
The NPA said production of
goods and services should be
stepped up by an annual rate Of
about $25 billion. Otherwise, it
said, economic activity will re-
main below the growing poten-
/ tial Of production.
The committee suggested that
this expansion could take such
forms as more adequate military
and civilian security. modernized
plants and equipment. improved
schools, hospitals and roads. a
rising standard of living and for
eign aid.
The report assumed the Ad-
mln1Stration is re-examining de-
tense needs. It said:
IF this re-examination shows
Gas we anticipate) the desirable
ity Of additional measures for
National security, a special SEES
sion Of Congress in the fall could
consider legislative authorization
and supplemental appropriations
for the additional measures"
Maximum Employment Urged.
If the Administration con-
cludes there is no urgent need
for much heavier defense spend
ing, the committee said mea-
sures then should be considered
to promote maximum employ
ment, production and purchas-
ing power. It maintained that
the country does not approach
these detectives of policy stated
in the Employment Act Of 1916.
NPA spokesman pointed out
that a normal increment of one
million persons could be ex-
pected for the total labor force
within q year. They figured that
If the economy remains at a vir-
tual standstill. unemployment
would rise disturbingly.
The report said the gross ma
tional production last year was
1857 billion--the full employ
ment level at that time. But the
recession that set in land APP
pears to have run its course) re-
duced the total annual produc-
ton of goods and services to
$3.50 billion in the first quarter
Of 1854.
Meanwhile, the population
grew and there was a greater
use Of more productive machin-
cry. These factors raised the
full employment level to q ma
tionaI production rate of 1915
billion in the first quarter Of
1854.
That left a SIT billion gap
between what the Nation was
producing and what 1t should
produce to utilize its labor re-
sources fully.
Cites Ever Present War Threat.
At the present rate Of increase
in economic activity. the NPA
calculates the national produc-
ton viii be $3.50 billion early in
1855. The full employment level
Of economic activity will be 1885
billion. This win leave a gap Of
$25 billion.
So the committee declared the
country cannot afford to stand
still on economic policies.
The report conceded It is no
easy, task to determine the best
types Of economic expansion ln-
der present world conditions.
But 1t said:
I'm an unsettled world situa-
ton with an represent war
threat. it is the most realistic
course of action to develop and
maintain q well-balanced pro-
gram Of preparedness and, at
the same time, to promote the
growth Of economic strength
and q rise In living standards
both here and in the rest Of the
free world.
with fun utilization Of our
resources and careful planning