PAGE SIX
UNIVERSITY DAILY KANSAN, LAWRENCE, KANSAS
MAY 23,1947
Kansan Comments
The Next Move Is Up To Business
The Research Institute of America recently completed an extensive survey of the country's economic structure. The conclusions drawn by this organization differ quite sharply from some of the more hopeful predictions about our economic future.
The Institute frankly states that we are already entering an economic recession. The only uncertain element is how severe that recession will be.
The huge backlog of demand which was expected to hold out through 1947 has largely disappeared. Now there are not enough customers with cash and credit to go around, while industrial output in general continues to outdistance demand.
Here are some of the findings of the survey:
Nearly half of all American families still have yearly incomes of less than two thousand dollars in spite of the fact that our national income total is almost double that of 1941. Seventy per cent of the families live on incomes of less than three thousand dollars.
Further investigation by the Institute reveals that the total amount of dollars available to buy other than basic necessities is smaller today than in 1941, despite the higher family incomes.
These figures point up the narrow market for high priced items.
Prices of basic living necessities have risen in the past year to such a degree that they are draining off an abnormal share of current purchasing power. At the same time, prices on items other than those living necessities have gone up 30 per cent in the past six years.
Thus, though the average income is higher today, increased price levels have wiped out much of this greater purchasing power. While this has happened, the industrial output is above 1941 and is surpassing the demand in many lines.
The savings of the average family are too small to provide much padding for purchasing power. In
High hopes were pinned on the extraordinary war-time savings to supply added buying power. However, the survey points out that half of the population accounted for only three per cent of those savings.
The University Daily Kansan
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Managing Editor ... Marcella Stewart
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Art Editor ... Elise West
Business Manager  John D. McCormick
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addition, there has been a general reluctance to dip into savings. Most consumers seem to feel that their savings have been reduced as low as they should safely go.
The desire to provide for an uncertain economic future is reflected in a rise in government bond purchases for the first quarter of 1947.
The Institute's conclusions are that "the adjustment period we are now entering will be both severe and will last longer than had been expected. The cost of reaching a new balance between production prices and purchasing power will be high in terms of production imbalances inventory losses, and business failures."
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1947
Member
This survey illustrates once more that the basis for a sound American economy lies in the purchasing power of the lower income groups. At the present time, manufacturers have largely priced themselves out of the market. The average consumer will purchase fewer items, other than basic necessities, as long as prices remain at their present levels.
The next move is up to those in business. They must find ways to cut prices soon without impairing their own economic stability,
Many manufacturers have gotten into a difficult position. Their labor costs have increased greatly. But those wage rises have made more buying power for only 15 million organized workers. On the other hand, the purchasing power of the other 40 million unorganized workers has risen much less and at a slower rate.
That is the large consumer group that business must find a method of reaching if we are to prevent a recession from turning into a depression.
Dr. Clark Returns From Mississippi
Dr. Ralph Clark, professor in the School of Pharmacy, has returned from Oxford, Miss., where he helped reactivate the University of Miss.-louisiana school pharmacy chapter of Kappa Psi, national professional pharmacy fraternity.
Dr. Clark is grand ritualist in the fraternity.
Jet Pilot won the Kentucky Derby this year. Next year we can expect the winning horse to be atomic powered.
JUICY STEAKS
Thick Malts
Sandwiches and
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Stop in and meet your friends
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AT
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4-day Laundry Service
Mrs. Calvin VanderWerf, of the Lawrence League for the Practice of Democracy, told members of the Congress of Racial Equality recently that other organizations seeking racial equality felt that the C.O.R.E. was making considerable progress.
Mrs. VanderWerf Discusses Races
Leather and Garment Dyeing a Specialty.
"An example of the progress that has been made is in the cafeteria where only a few years ago Negroes were forced to sit in the section reserved for them," she said. "Progress should be measured by practice of people in general as well by their attitude."
We are still in the market for any army or navy gear, in good condition, that you may wish to dispose of.
The "Hate Your Brother" week, originally scheduled for this spring, was cancelled. The group voted to continue meeting during the summer session.
VETERANS
Dyeing a Specialty.
Lawrence Surplus
911 Mass.
Village Cleaners
SUNFLOWER, KANSAS
Opposite School
Western Union—8 a.m.-9 p.m.
Free PickUp and Delivery
Phone 9009
Phone KU-25 with your news.
Tel. 669
Lawrence Optical Co.
Combination bulletins and class schedules for the 1947 summer session are now available at the office of the School of Education.
WE FIT GLASSES and DUPLICATE BROKEN LENSES Large Selection of Distinctive Frames.
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Sunday 10-10
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Lawrence Sanitary Milk & Ice Cream
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