Uncategorized

Consumer Hos Some Power, Too

Click to see original imageIf we in America are headed for the poor house, at least we’re going in style . . . with a pocket full of money. The Department of Commerce reports that total personal income in the United States in January of 1958 was at the annual rate of $343.6 billion. That was $7.3 billion more than in January a year ago. Total personal income in February was at the annual rate of $341.8 billion and that was $3.3 billion more than February 1957 when the boom was still going strong. If this is a depression, as some folks seem to think, then it’s the wealthiest one on record. Locally, people don’t seem in be doing too badly, income-wise, if bank deposits can be considered a criterion. Provo bank deposits, as of today, are approximately $8.000,000 higher than at this time last year. A good chunk of the increase is in the savings categoryi In this department Central Utahns are following the national trend, with s steady increase in savings accounts. Leaders in Washington are mulling over proposed tax cuts and whooped-up federal spending to get money into pe0pIe’s pockets. Certainly a great many peopleespecially those who are unemployed-need help. But generally. say the statistics, there is plenty of money available. People are just not spending it. Why? For nearly a generation America hss been afflicted with s creeping inflation. The cost of iiving has gone up steadily. In February of 1958 a dollar bought less than half what it bought in 1939. The exact figure was 48.5 per cent. Living costs seem to be stabilized late last year but went on up in January und February. Last year a new steel wage contract went into effect and big steel increased prices $6 a ton. Steel is the big item in autos, refrigerators, etc. The price trend was up It is still up. A lot of other things keep going up-including food items. Most local merchants are trying hard to curb prices, but one told us ‘ho other dey he was being fvreed tumake new hikes in some items because the middle msn had jacked up the prices again. The inflation is the product of many factors, but you can ettribute a great share of it to deficit financing policies of government and the drive of labor, management. various middle men, et al to get all they can while the getting is good. The consumer has no voice in price policies, no vote at the bargaining table where labor and management confer over wages, no influence at the direct0rs’ meetings where policies are established. The consumer hss but one final defense against inflated pricesand that is to curb buying. That’: what s lot of them seem to be dning. This is a nation of 170 milllun people. Let any large percentage of them get the idea that they’ra getting the worst of it in the market place; let them delay buying until they’re reassured, and you have s slump in business. Personal income is still high: savings are up. What the consumer needs is s lot of enticing to get him to spend his dollars. A decent break in prices would ge 1 long way. The sellers’ market has had a heyday for the Inst 10 years. Now the buyer seems to be protesting in s very tangible way. And after all, the buyer is s pretty important fellow. It’s something for beth business md labor leaders to think about. Unendmg Task Our pride in our third successful satellite launching must not be allowed to fade gradually but inexorably into new complacency. A 3-to-2 margin over the Russians is not exactly s safe lend to take into the late innings of the contest for outer space. The newest space vehicle may, moreover, have a very short life. Our rocket and satellite scien. tists and technicians obviously are a good dea.l better at their jobs than either we or a lot of people abroad thought in the dark days of Russian successes. But they, and ell those entrusted with the security and militaryscientific advancement of this nation, have many hard tasks ahead. We dare not assume that the Russians are not trying desperately – day by day – to get their third, their fourth and eventually their fiftieth vehicle into orbit, This contest, like the great East-West struggle of which it is s part, goes on without rest. The nation which rests may one day never get up.