Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-01-02
Experts Say Outlook
Is ior Prosperity
And Tough Rivalry

Assesiaisd Press Financial Writer
NEW YORK, Jan. LA New
Year Well larded with promise Of
prosperity Is being served up to
Americans-with fiercer compe-
tition than ever when It comes to
carving up the shares.
Here's q roundup Of what In
dustrial leaders and economists
think 1855 has in store for you,
your wife and your boss.
/. The cost Of living should
ease q little more.
Competition spells bargains.
And it should be q good year for
the earnest shopper. Food prices
will be under pressure from large
carryoyers and lower farm price
supports. The raw materials for
clothing. whether natural or
nan-made. are In ample supply,
also. but labor costs probably
viii keep clothing prices fairly
arm. The steady postwar rise IN
rents IL leveling on and the cost
Of home building has stabilized.
Americans viii doubtless spend
an even higher percentage Of
their income on the various serv-
ices. continuing the trend Of
recent years.
More Jobs Expected.
2. Jobs will be more plentiful
and workWeeks longer.
But there will be more people
In the labor force, meaning
more competition for the avail
able jobs. And not all industries
will be booming at all times.
Fiercer competition win mean
that some companies will lag be-
hind others within their in.
dustry.
Pay envelopes will be q little
fatter for many workers who
have jobs--longer workweeks
and further increases in wage
scales are expected. The unions
will be making q big pitch in
1855 to get the guaranteed an
nual wage.
8. Tax cuts look few and far
between.
Taxes are more likely to rise,
IN fact. at the local and State
levels even II they hold still at
the Federal level. A continuing
Treasury deficit will make 1t
rough for would-be tax cutters.
And q rising demand for schools.
hospitals. roads. police and fire
protection will send legislators
looking for new ways to tax.
Larger Income Seen.
4. Personal income totals
should rise. however, and ease
the pinch.
Wage and salary totals should
be q little higher. Dividend pay
ments should reflect better earn
ings. Pension payment totals
continue to swell. The admins
tration thinks the. drop in farm
income is about over. Some look
for the total Of personal income
to rise by about $40 billion In
1855 to $295 billion.
Savings. however, may hold
around 1954's level Of SO bill
lion. II consumers increase their
spending Is expected.
5. Car dealers win compete
briskly for your dollars.
Highly styled new models will
tempt you to buy a new car, even
If it means pinching q little on
some other part Of your per-
sonal budget. But the cut-throat
fight among the auto makers
In some cases with existence at
stake-will make shopping the
dealers a pleasure.
Additional Homes Likely.
6. More homes viii rise this
year.
Some expect home building to
approach or equal the record set
In 1850. Easy financing is the
biggest selling point, with fairly
stabilized building costs an adj
ded factor. Builders say the
trend is toward more three bed
room houses. Only o few cities
rpeort the housing saturation
point in sight.
7. Appliance competition may
turn up-some bargains.
Television. radio. kitchen app
pliance makers are all predict
ing a good year with increased
sales. But their production ca
pacity is probably even greater.
And in their competition they
may offer you some good buys.
8. Clothing viii be more q
matter Of fashion than price.
Shortages Of even the newest
Of man-made fibers are becorn-
ing rare. With the clothing in
dustry able to produce more
than It's now selling. the chief
squeeze on price comes from the
tendency Of production costs 70
rise. But the textile industry Is
realigning itself TO cut costs.
competition between companies
and between fibers is growing
more intense, and retailers are
more inclined to cut profit mar
gins to move goods.