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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (March 8, 1959)
owth Tpk ire S)ecDSDmi re Question Raised In Discussions On ion, Budget (Editor's note: Thi is the sixth Great Decisions topic in the current series. To day's topic is "World Eco nomic Revolution: What U.S. Policy?") How fast should the U.S economy grow? This question is continually raised in dis cussions about such diverse problems as inflation, unem ployment, national budget, foreign aid and " competition with the Soviet Union. Many officials and economists alike consider it the key problem America faces in today's com petitive world situation. Attention centers on the rate of America's growth for three principal reasons: First, in what one econo mist characterizes as our "af fluent society," unemploy ment still poses a serious roadblock to full utilization of manpower. It is also a cause for personal hardship. Infla tion remains a danger. And public servics like education, housing and transportation have suffered neglect in the midst of plenty, in the view of many experts. Contrast in Rate Second the contrast in the rate of economic growth be tween the United States and Communist countries like the U.S.S.R. and Red China alarms government officials and businessmen. The boast of Russia's Nikita S. Khrush , chev that the Soviet Union will outproduce America on a per capita basis by 1972 may in fact be possible, some econ omists believe, unless our own rate of growth is stepped up. Communist econ omic strides also account in part for the third concern about America's economic capacity: the communist bloc's interna tional trade and aid offensive is in direct competition with Western trade and aid. Most experts are sure that Communist competition will continue to mount in the Afro-Asian lands and Latin America. The Soviet agree ment in early February to supply economic aid and arms to the new Iraq government is only the most recent evi dence of this. In past decisions about U.S. foreign aid Congress and the administration faced two problems-the overall level of spending, and whether more or less emphasis should be placed on military or on eco nomic assistance. Crucial Issue Now, however, the crucial issue which is emerging is whether we can sustain for eign economic aid at a level which will deal effectively with the needs of (and U.S. stakes in) the underdeveloped nations of the world. Some problems of the U.S. mutual security program will be explored in a published preliminary report of a Presi dential committee on foreign aid, headed by William H. Draper Jr. Whether the Unit ed States can meet the needs of its own growing popula tion, while fostering adequate economic growth in the un derdevelopd areas, will be a key issue in the President's proposed legislation for for eign aid, soon to be submitted to Congress. Economic War? Even if all-out war is avoid ed in the East-West conflict, there is every evidence that the Communist powers will HOVER 7tUKt 2a a IF An oil-purpose hydroulic tronsfer for the wheelchoir-bound For information contact JACK SANBORN Medford Phone SP 2-8937 PORTLAND 1 J ! 1 '09- relentlessly continue to com pete economically with the West. In such "economic war fare" Russia and other Com munist nations hope not only to raise their productivity and living standards at home, but also to lead the underde veloped non - Communist na tions to find in communism a rapid route to economic growth. Is the West (including in dustrialized ' Japan) prepared to meet this kind of competi tion? Some recent trends are encouraging-such as the be ginning of a common market in Western Europe, other re gional trade pacts to reduce tariffs, and the growing con sciousness in this country that our productivity must be raised. Industrial History - The U.S. economy, with a longer industrial history than the Soviet Union, has been growing at an average of about 3 per cent a year over the past decade. It has dropped to an average rate of about 1.3 per cent, however, over the last six years. Today, in contrast, the growth rate of the Soviet economy is more than twice that of the U.S. 10-year aver age, and is expected to in crease to above 8 per cent annually under the 7-year economic plan recently un veiled in Moscow. Experts point to other dif ferences in the two econo mies. America's is geared far more to consumer production than that of Russia. And, the Soviet economy is currently ploughing back - a greater share of investment into capi tal goods industries and de fense production. But officials and econo mists agree that a generation hence the combined economic power of the Communist or bit can conceivably outstrip that of the present Industrial ized states.. M E.Z. TERMS ' NO MONEY DOWN HO PAYMENTS TILL MAY 1st 3 YEARS TO PAY (On Approved Credit) The new common market in Europe, however, may make a difference in these calculations. On Jan. 1 the six nations of Western Europe -France, West Germany, Italy and the Low Countries agreed reciprocally to reduce their tariffs by 10 per cent and to increase their import quotas. Experts predict that, with success, this new experiment may lead to the evolution in Europe of an economic com plex equal to that of either the U.S.S.R. or the United States, with extensive re sources and mass markets. Aside from the political implications of such a devel opment (which may" lead to greater political unity in Eu rope) what is most important is the added strength such a move can bring to the West. The new trading arrange ments will create some trade problems both for American and British firms, since nei ther the United States nor the United Kingdom is at present committed to the West European common mar ket arrangements. Nor have the common market countries resolved all their differences, either among themselves or with the other nations of Western Europe. Present Policies ' Moreover, critics of present Western economic policies point out that even Europe's new move toward economic integration may not be suffi cient to counter the Commu nist threat. Various leaders who have been involved in NATO feel that what the North Atlantic powers need most is wider economic coop eration and full political and economic coordination to back up mutual defense ef forts. Viscount Montgomery for one, recently retired from ac tive service with NATO, urges a top-level planning PYGCtFS Crvn v 1000 50. agency, with power similar to that of the Anglo-American combined chiefs of staff dur ing World War II, to coordi nate political, military and economic policies of the West. More recently, Democratic Senator Hubert H. Humph rey, among others in both po litical parties, urged a pro gram of global economic plan ning to meet the Communist economic challenge. Humph rey, for his part, favors five to seven - year development programs for various under developed areas, planning for a minimum growth rate of 5 per cent a year in the United States economy, increased federal aid to education, and a long-range food and medi cal program to help new na tions. Role of Third World' The role of the underdevel oped nations in today's eco nomic revolution is widely recognized as crucial in the East-West cold war. Because of fast growing populations, postwar econom ic developments in such dif ferent nations as Indonesia, India, those of the Middle East and Latin America have barely kept pace with mini mum human needs. One noted economist has suggested that Western aid,' to be effective in raising liv ing standards and creating conditions for adequate eco nomic growth in such areas, may take far vaster sums than anything now contem plated. This economist points to the experience of Britain in the 19th century when it ex ported an average of 7 per cent of its national income for development abroad, in cluding the development of the United States. For the United States to match this ratio today would require an investment of two whole Marshall Plans every year. n annnn7 ' c n nrvinpcrpO YARDS BR0ADL00M M00PI GROUP 2 group 3 ff REG. 9.95 to 11.95 fl REG. 6.95 to 9.95 REG. 5.95 to 7.95 I WOOLS NYL0N-W00LS MYL0M-C0TT0N YOUR CHOICE J YOUR CHOICE J I YOUR CHOICE J sq. yd. n!- Y "fes??' MOMflWK WAFFLE PfiED - 50 DYKE'S 1228 N. Riverside - (Next to In round figures the Mar shall' Plan cost America about $13,000,000,000 from 1948-1951. The President's budget this year proposes about $2,300,000,000 be spent on foreign economic aid, mainly to underdeveloped areas. Once economic growth is underway, in underdeveloped lands, their continued pros perity, like that of industrial ized nations, must be support ed; by higher levels of trade. Raising two-way trade in the more distant future through out the free world, however, depends on immediate meas ures which will (1) step up growth rates in the industrial ized nations and (2) provide these nations with the capital to assist economic growth elsewhere. Many observers, as well as the latest economic report of the President, suggest that in the year ahead the United States economy will spurt forward to a higher growth rate in the wake of last year's recession. More and more economists, and studies like the Rockefeller reports on U.S. economic policies, insist that a growth rate of 5 per cent should be achieved, not as a goal for one year, but for an indefinite future pe riod. Conscious Effort None of these objectives can be achieved without con scious effort-at. private as well as governmental levels. At issue are not only the cold figures of growth rates, but also some of the underlying values of our consumer oriented economy. Political leaders, educators and econo mists, in increasing numbers, feel that the United States needs less emphasis on "tail fins" and a keener awareness of the nation's stake in world wide economic growth and the cold war. ARE PRODUCTION AND HOW IT IS USED Selected countries GROSS NATIONAL PRODUCT (1956) (Total value of all goods and services produced ) U. S. (BILLIONS OF DOLLARS) ALL OTHER INDUSTRIALIZED IMinillllllllllllll III.III1HIIIIMIII1JIIILIIUIW1 (soviet union hrTriTii'nirTii---'ir"r-J 162 ALL OTHER COMMUNIST COUNTRIES (total) 3 122 ALL UNDERDEVELOPED COUNTRIES (total) ELL 1 134 HOW PRODUCTION IS USED ( of total production) INDUSTRIALIZED DEMOCRACIES SOVIET INVESTMENT ESTIMATED INCOME PER 1975 $2000 U.S. 1956 : Sg :$i5oo; I Jr85fjJ j BRITAIN CARPETS AT WHOLESALE PRICES 416 HHOiUliilli DEMOCRACIES (total) UNDERDEVELOPED COUNTRIES UNION Note: largest share of this is for food CONSUMER NEEDS MILITARY PERSON. AFTER TAXES 'Sources: Committee lor Economic Development, British and 1975 Indian governments $1450 1956 1975 INDIA PER SQ. OK Market) MAIL TRIBUNE, Medford, Economic 'Warfare' Favored by Great Decisions Groups Corvallis Economic "war fare" against the Communist world rather than military alliances drew favor from Oregon Great Decisions groups balloting recently on the foreign policy issue, "Will Alliances Keep The Peace." Opinion ballots from 20 Or egon counties were tabulated by Oregon State college ex tension service, indicating strong preference to expand trade and economic growth throughout the non-Communist world. The Great Decis ions program of local discus sions of foreign policy issues will continue through March. Opinion was almost unani mous that cold war, in one form or another, will prob ably continue for some time. Loveff Smith Gets Promotion With SP Portland -Lovett R. Smith Jr., supeirntendent of the Portland division of Southern Pacific company, has been promoted to assistant general manager of SP lines in Texas and Louisiana with head quarters in Houston, Tex., the company has announced.. Smith was a frequent visi tor and well-known in the Medford area. He was ap pointed superintendent of the Portland division in 1955. He will be succeeded by Alden W. Kilborn, a native of Dunsmuir, Calif., who is now superintendent of the Tucson, Ariz., division. YD. mm Oregon, Sunday, March 8, 1959 5 There was also agreement that conflicts in interests among non- Communist na tions will be difficult to over come. Third World' Underdeveloped countries of the non-Communist world the so-called "third world" have been plagued with po litical instability in recent years. This, coupled with fast growing populations and pov erty, has set them up as focal points for some of the tough est battles of the cold war. A majority of Oregon voters felt that Communist influence in the world could not be "contained" by a system of military alliances and favored continued negotiation on cold war issues. About 75 per cent of the vote favored other non Communist nations' right to independent and eventual cold war foreign policies. United States foreign policy in relation to Western allies was rated in the following or der of preference: Closer Coordination Closer coordination of eco nomic policies. This would combat the long-held Com munist doctrine that the "capitalist-imperialist" powers of the West will inevitably clash as their political and econom ic interests come into conflict. Second place called for bolder policies to help solve economic and social problems in the underdeveloped world. Favored policy in relation to the non-Communist world called for less emphasis on building the military capaci ties of underdeveloped allies and more on their economic and social development.
