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BIG DISLOCATION IN AMERICAN ECONOMY

: SUDDEN END TO WAR I ' Rationing And Temporary ; Unemployment N.Z. Press Association —Copyright I Rec. 2.30. WASHINGTON, Aug. 15. The sudden ending of most of the ' nation's war contracts would cause ; an immediate large dislocation in ■ the American economy with sharp 1 but temporary unemployment, but the United States was not returning to long perio'ds of mass unemployment. This was stated by the Reconversion Director, Mr. J. W. Snyder, in a long policy report. Highlights of the report are:— (1) All military contracts will be terminated immediately except those for experiments and maintenance. (2) At least 7,000,000 men will be released from the Services within the next year, including 5,000,000 from the Army. x t (3) Unemployment is expected to rise from the present 1,100,000 to 5,000.000, or more, within three months, and perhaps 8,000,000 before the spring. All manpower controls are now removed. (4) Many production and distribution controls will be lifted. (5) Collective bargaining, regarding wages, will be restored wherever price ceilings are not endangered. Price and rent ceilings and wage stabilisation must be continued due to inflation. . (6) Mr. Snyder has requested legislation, providing for increased unemployment benefits, an increased minimum wage, a tax programme to stimulate production and maintain markets and public works appropriations. Petrol Rationing to Cease Mr Snyder estimated that it would take at least 12 to 18 months to reach the expanded peacetime economy needed for full employment. He listed four major economic objectives: — , , , (1) Jobs for all willing and able to work. . „ _ ... (2) A steadily rising of the living standard. ~ (3) Stabilised economy to avoid inflation and deflation. (4) Increased opportunities for farmers and businessmen. The War Department has announced a cut of 23,500 million dollars yearly in the procurement of munitions and supplies. Treasury figures show that the United States has spent over 300,000 million dollars directly on the war so far. The total will be much higher before the last soldier ' is discharged and the last contract paid off. The Office of Price Administration • has announced the immediate termination of the rationing of petrol, canned fruits and vegetables, fuel oil J and oil stoves. Meats, fats, oils, butter, * sugar, shoes and tyres will continue : to be rationed until the military cut- ! backs and increased production bring civilian supplies more nearly in balance with the civilian demand. i

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Permanent link to this item

http://paperspast.natlib.govt.nz/newspapers/AS19450816.2.67

Bibliographic details

BIG DISLOCATION IN AMERICAN ECONOMY, Auckland Star, Volume LXXVI, Issue 193, 16 August 1945

Word Count
392

BIG DISLOCATION IN AMERICAN ECONOMY Auckland Star, Volume LXXVI, Issue 193, 16 August 1945

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