Evening star., 1954-01-02
The NotionoI Economic Spectrum

Economists undoubtedly are among our
most versatile professional people, never at q
loss for statistics or even set Of new words to
back up their varying points of view. Right
now they have taken up positions spread all
across the horizon on the question Of whether
the United States is in or is due for depression,
a recession or perhaps another quarter or so
Of good business health.
There is no particular reason to look
askance at this wide range of opinion or at
those who are expressing it-even though a
trace Of political coloration appears in various
bands of the spectrum. Certainly the matter is
an important one. not only to our own country
but to other nations of the free world whose
economies depend in important measure upon
what we buy and sell. sM<.s
Quite aside from the opinions expressed
as to long and short term significance, there
are some clearly disquieting facts that tend to
support those who claim that things are not
as good as they have been. One of the first
signs of a showdown appeared in the industries
manufacturing farm implements, rejecting the
drop much earlier in the year of farm incomes.
Steel and rubber, two of the big industries, cur
rently are operating at reduced production rates
and the automobile industry is talking frankly
of lower production and sales in 1854. Carload
ingS, pretty good index of industrial traffic,
are down to point where railroad layoffs are
being announced. The administration has
acknowledged some of these signs in its recent
proposal to steer more defense contracts into
ing unemployment.
With certain amount Of persuasiveneSS,
and perhaps logic too, some of those who
recognize these facts are emphasizing that one
of the best hopes of reversing what is or may
become trend lies in bigger and better sales
manship This view rests on the theory that
the national economy has shifted from that of
sellers market" to that of buyers market"
meaning that enough goods are available in
enough variety SO that the consumers do not
need to take the first article offered, or neces-
sarily at the sellers preferred price.
Walter Williams, Undersecretary of Com
merce, Is one of the top-ranking administra-
tion officials who have discussed this approach
to the economic problem recently In an ad-
dress here, Mr.. Williams proposed four steps by
which the output of our growing productive
capacity can be marketed proftably and in
sufficient volume to keep the economy robust
and healthy. Briefly, they are: Development
of new and better products; employment Of
more and better statesmen and increased in
tensity in sales promotion and advertising; re-
duction Of distribution costs through new
techniqueS; increased attention to market re-
search
There Is, of course, nothing radical about
Mr.. Williams proposals Some or all of them
have been applied in various degree through
the years of business expansion. 1t is not
harmful to restate their Importance and to
urge that they be adopted on business wide
and calculated basis. Salesmanship alone how
ever, is not a complete answer for an economy
that may be running down slightly after nearly
eight years of high-speed operation Taxes and
tariffs, for example, are fundamental factors of
long standing and Government spending, either
for pump priming or war or defense, has be-
come major element in the economic picture.
1t is good that the administration is concerning
itself with what may be developing economi-
cally. If the picture really is darkening, it
should face that fact