New Measurements

In the preceding decade, the whole nation's living standard had risen, partly through Government measures such as social security, price supports, legalizing collective bargaining, etc. But the most solid reason for the rise was the incredible expansion of U.S. private industry in war & peace. A decade ago U.S. industrialists feared overexpansion. Now they seem to fear under-expansion. In the seven post war years, private industry has invested the staggering total of $151 billion on new plants -- greater than all the capital equipment of England, France and Western Germany combined.

Business and labor alike evolved a new philosophy: each could gain a bigger slice of a bigger pie by more intelligent cooperation. Labor, which once fought technological change, came to see that im proved machinery raised real wages by raising man-hour output and lowering costs and prices. Industry, which once fought unionization, came to see that un ions themselves could help boost productivity, and that good morale among work ers could release great untapped energies. This new philosophy reached its most dramatic fruition in a revolutionary contract which General Motors' President Charlie Wilson made with the United Auto Workers; it recognized that the worker was entitled to an automatic annual increase as his fair share of the enterprise's gain in productivity. The more the worker shared in productive gains, the more goods business sold.

For example, while the U.S. had 21 million autos in 1932, one for every six inhabitants, it now has 40 million, one for every four, despite a bigger population. In 1932 there was one telephone for every seven; now there is one for every three.

There was one tractor for every six farms, and now there is almost one for every farm; one house then for every 4.1 Americans, as against one for every 3.3 now.

But along with this rise in living standards came a rise in debt and taxes, due partly to New Deal spending, but mostly to the $351 billion cost of World War II.

Since 1932, the Government's annual budget has jumped from $3.9 billion to 1952's stratospheric $78 billion. The federal debt has shot up from $19 billion to $259 billion. Personal income taxes have jumped from $300 million in 1932 to $30 billion in 1952. Corporation taxes have climbed from less than half a billion to $23.5 billion, or 5,775%, and inflation has shrunk the 1935-39 dollar to 53-c-. Taxes of all kinds now gobble up 30% of every body's income.

Yet the majority of citizens have big ger actual incomes than ever, despite the depreciated dollar. The average worker can now buy a Ford with only 925 hours of labor v. 998 hours in 1932 -- even though the cost of the greatly improved car has risen from $445 to $1,526. He can buy a $10,000 home for 6,024 hours of labor v. 14,320 hours for an equivalent $6,500 in 1932.

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