Evening star., 1954-01-03
IndustrioIist's Forecast
Gross National Product Should Increase
To $500 Billions by 1875, Bunting Says
BY Hugh Humphrey


are people. If the consumer has no
fear that his buying power will be
disturbed, he will spend money for
new products. Business, if given
the same assurance. will produce
for him"
Taxation at the Federal level IL
sore spot with Mr.. Bunting. He
quickly comedies that business must
pay its way, but he feels that it
must be to the States. The Federal
Government should confine its lev
les. he says, only to the revenue
needed for its exclusive operations.
"Is it fair to the people of Mary
land and Virginia, he asks. Ito tax
them for Federal construction Of
public works in North Dakota? Let
taxation be returned to the States
where the people can pay for what
they receive. not for what is doled
out in an area 1000 miles away"
Someday, he says, study should
be made on The True Function Of
Government" The NAM insists
that Federal Government should be
devoted to stimulating honest free
enterprise by business and the in
dividual and to protect them from
dishonest exploitation.
If an economic stability is achieved
particularly in holding the line on
purchasing power-there will be no
danger of over-production even when
the $700 billion mark is achieved,
20 years our census experts see a
population of between 1913 and 221
million persons. This means q net
gain of "a to 38 per cent"
This growth" he points out,
will add at least 10 to Is million
families, with vast impact on our
markets for goods and services; on
the Nations productive facilities
and on our transportation. BY
1875. this population will create q
fantastic consumer demand for
now, unknown new products"
Mr.. Bunting, contrary to many
economists. bases his predictions
simply on past performances Of
industry and business. His outlook
takes 1852 as a central point with
1929 as start and 1875 as tho
initial target. The labor force in
1929 was roughly 49 million; in
1852 it was 66.5 million. and in 1875
employment should reach SO mil.
lion, rise not too far out of pro.
portion in our expanding economy.
The estimate for the gross national
product is almost exactly propor-
tionate over that period.
Higher Wages Predicted
In his forecast of wages for
labor, the real income per capita
was $1,120 in 1929 and $1,860 in
1952-an increase of approximately
so per cent. In 1875, the NAM esti-
mates income at $4,000, an increase
of almost 60 per cent from 1852.
Returning to increasing rumors
that this country is near a real
recession Mr.. Bunting says:
"A few slumps in individual busi-
nesses are inevitable. When you
look at the long-range picture Of
business and industry, you find peaks
and hollows all along the line. Those
abnormal peaks are the danger. Peo-
pie are too prone to base their OUT
look on just one big year. After
that, any smaller period looks like
depression in comparison"
Mr.. Bunting has no fear Of COM
munism taking over here. Ameri-
cans are too accustomed to free en-
terpriSe. he thinks. IF we rebel
against the slightest regimentation
now, think how we would react
against communism"
AS Congress prepares to convene
for the 1854 session, the NAM off,
cial issued a call for a bipartisan,
non-political approach to the job of
returning Government to the
States.
IF we adopt such program" he
says, productivity will increase,
wages will continue to rise and even
my prediction for 1875 may be ex.
ceeded. But we must stabilize our
economy. That's the task facing
Congress this year."