GROWING “AUSTERITY” SHOWS NO EFFECT ON U.S. XMAS SHOPPING

Wanganui Chronicle, 20 December 1950, Page 7

GROWING “AUSTERITY” SHOWS NO EFFECT ON U.S. XMAS SHOPPING

(By a Reuter Correspondent in New York). The “austerily" which economists predicted would engulf the United States as a result of high defence spending and heavier taxation was not rearing its ugly head as the people throughout the Nation did their Christmas shopping. Inflation, precursor of the lower living standards to come, was rampant. Prices and wages had chased each other in dizzy spiral for almost a year, but most average families —customarily the biggest spenders in the annual Christmas splurge—still had money to burn. For months they had economised on food, clothes, and other everyday essentials to have money for the provision and toy counters. It was no “austerity” Christmas by any standard. Whatever the future of civilian goods as a result of diversion of materials, money, and men to the defence programme, Santa Claus, 1950 version, had all the garb and equipment of peacetime prosperity and plenty for his merry making visit. Shops, large and small, in swarming cities, country towns and hidden hamlets, carried stocks of Christmas goods larger and more varied than ever seen in them. Not only U.S. made toys and other goods, but the best that Europe, the Middle East and the Far East could contribute to the richest market in the world. Under impetus of the year's dollar drive, oversea countries had sent goods of a variety and quality not seen in this country for many a year. Competing with them, U.S. manufacturers had produced their own bewildering array oi products. The huge department stores of New York, Chicago, Philadelphia, San Francisco, Los Angeles and all the other great cities outdid all previous efforts in gay window and interiordecorations and displays. Prices had risen an estimated 30 per cent, since the last time they Christ-mas-shopped. More men and women were working—between 2,000,000 and 3,000,000 more—than a year ago. The new higher taxes, which went into effect on October 1, had not yet been felt. If there was a trerfd to buy “useful” gifts rather than fripperies, it was only because some people, perhaps most, had heeded the warning of tighter money to come. If there was sales resistance among customers it was not easily apparent. In any case, the superb sales pressure of the U.S. shop-keepers wore it thin. Observers estimated that newspaper and radio Christmas advertising had never been so heavy. It began two weeks earlier than usual. The shopkeepers did their best to make their customers happy and yet make their profits. Toy-laden parents, old and young gift-laden conspirators of Santa Claus, bore gaily-packaged witnesses of a more than normal shopping spree. The war In Korea am} the threat of wider conflict, as well as their economic results, were forgotten—at least temporarily. Or perhaps, some calm assessors thought, this end-or--1950 buying spress was the result of those factors. There might not be another Christmas like this one for many years to come.