The Lincoln times., 1955-07-07
Prosperity Seems
Set To Stick
Around Awhile

NEW YORK - Prosperity seems
set on sticking around for awhile. |
1t may suffer little from the
heat. And serious labor strife could |
frighten it away for a time.
Business, however, enters the
second half of the year tomorrow,
foreseeing but a mild summer
slump - and that only in the lines
where it always appears - to be
chased away in the fall by more
good times.
The theory of the confident
ones: The whole economy has
moved up notch to new pla-
teau." There likely will be, as al
ways, some ups and downs few in
deed believe the business cycle has
been completely licked But there
will be no turning back to former
standards and measurements.
WAGES RISING
Wages are rising. Take-home
pay is at a record high. And the
pressure for higher wage scales is
expected to increase This would
mean more spending money for
workers, as long as factories con-
tinue on busy schedules.
1t also means higher costs for
manufacturers and supplies of baS-
ic materials. And at midyear the
big debate in business is how much
of this greater cost will be passed
along in higher prices.
The cost of living, nevertheless.
is expected to show little change
in the next six months The price
of food may ease a little more to
offset any rise in manufactured
goods.
PLAN EXPANSIONS
Productivity is expected to keep
on rising in the second half of the
year - that is. new equipment in
modern plants will continue to
mean more goods turned out per
man hour, offSetting costlier labor,
at least in part.
Industrialists report plans to eX-
pand plants further, to hire more
workmen, to turn out more goods
Retail spokesmen estimate sales
will total a record ITS billion dol
lars this year gain of per cent
over 1854. Together these spells
out: a rising standard of living
for Americas growing population.
The consumer will decide whe-
ther this comes about on schedule.
He has more money to spend than
ever before How he spends it,
what type Of goods he turns to
or whether he decides instead to
pay UP his debts, or maybe to start
saving more again - will deter
mine how good the second half will
be for business.
All strike threats too didn't pass
with the auto union pact.
MAY FEEL EFFECTS
Profits, blossoming in the spring
with the gain in sales volumes,
may feel some of the whitening
effects of rising labor and mate
rial costs this fall.
New orders on the books seem
to speed prosperity in many basic
industries for some time. A sum-
mer showdown is looked for, how
ever, in auto, steel, textiles, chem
icals. lumber and copper fabricat-
ing. But the recreation. transpor-
tametal mining and furniture in
dustries talk confidently of gains
this summer.
NEW RECORD SEEN
The housing boom and other
building activity could slow sea-
sonally with the approach of win
ter. Yet total construction expen-
ditures for the year are predicted
to hit a record AZ billion dollars. a
gain of II per cent over 1854.
Building costs may inch up a bit,
but the price of some older houses
may dip.
List prices of 1856 model cars
most of the new models will be on
view this October - may go up to
reflect higher steel costs and auto
labor wages. But the customers
bargaining skill may set what the
dealer can get.