Articles entitled: ADDITIONAL INFORMATION "A Well-Tempered Boom," from Business Week, June 27, 1964. "Full Employment as a Policy Goal" by R. A. Gordon, University of "Report on Washington," from Atlantic Monthly, June 1964. "Seeking a Solution to U.S. Manpower Problems' "Watching the Significant Factors," by Harold B. Dorsey, from the "What's Ahead for Business?" by John R. Bunting, in Atlantic Bergstrom, Herbert C., executive secretary, YMCA, Philadelphia, Pa., to Mr. Friedman, dated September 17, 1964.. Carlin, Paul N., assistant director for Federal Ownership Problems, Foster, Charles H. W., commissioner, Department of Natural Re- sources, Massachusetts, to Edward D. Friedman, counsel, dated Gabrielson, Ira N., president, Wildlife Management Institute, to Edward D. Friedman, counsel, dated September 3, 1964... Hilliard, Raymond M., director, Cook County Department of Public Aid, Chicago, Ill., to Harold O. Swank, director, Department of Public Aid, dated August 20, 1964---- Kimball, Thomas L., executive director, National Wildlife Federation, to Senator Hill, dated August 28, 1964.. Summary of survey of State, country, and city conservation and recreation officials in response to letters from Senator Nelson asking for information relating to the proposed Human and Resource Conservation Act of 1964 CONSERVE HUMAN AND NATURAL RESOURCES OF THE NATION WEDNESDAY, AUGUST 5, 1964 U.S. SENATE, SUBCOMMITTEE ON EMPLOYMENT AND MANPOWER OF THE COMMITTEE ON LABOR AND PUBLIC WELFARE, Washington, D.C. The subcommittee met at 10 a.m., pursuant to notice, in room 4232, New Senate Office Building, Senator Joseph S. Clark (chairman of the subcommittee) presiding. Present: Senator Clark (presiding). Also present: Senators Nelson of Wisconsin, and Boggs of Delaware. Committee staff members present: Stewart E. McClure, chief clerk; Edward D. Friedman, counsel to subcommittee; Frazier Kellogg, professional staff member; and George Dennison, minority associate counsel. Senator CLARK. The subcommittee will be in session. Today the Subcommittee on Employment and Manpower of the Senate Committee on Labor and Public Welfare concludes its extensive studies of the Nation's employment problems begun in May 1963. It does so with the satisfying realization that, during this period, the country has through the use of the tax cut and other new economic measures-crossed a major watershed in the use of economic knowledge to improve the fortunes of working Americans. The country is now far more sensitively attuned to the many complexities of our giant economy and how it works than it was 4 years ago. We are now in the fourth year of one of the longest-lived periods of economic expansion in recent American history. So in this one urgent area of public policy alone, the Johnson-Kennedy administration has won its laurels. It has lived up to the commitments made by John F. Kennedy in his campaign for the Presidency to "get the country moving again." In over 40 months of expansion, there has not been the slightest hint of inflation. So one of the greatest bugaboos raised whenever the wise use of public policy to promote economic growth and employment is discussed has been quietly laid to rest. Nearly every other indicator of our economic performance is up. Harold B. Dorsey, financial columnist for the Washington Post, on this past Monday, August 3, called attention to the remarkable performance of the economy so far this year. He pointed out that, while the increase in total employment in 1963 was 963,000 as opposed to a previous 3-year average of 610,000 per year, the year-to-year increase indicated by performance in the first and second quarters of 1964 will be well above 112 million new jobs. And accompanying this increase in the creation of new jobs has been a remarkable rise in nearly every other index: personal income is increasing at a rate a full percentage point higher than last year; disposible income is increasing at a rate nearly two percentage points greater; and we are headed into really substantial increases in consumer spending and capital investment. I ask that Mr. Dorsey's column be printed at this point in the record. (The article referred to follows:) [From the Washington Post, Aug. 3, 1964] INVESTMENT VIEW (By Harold B. Dorsey) WATCHING THE SIGNIFICANT FACTORS NEW YORK.-Business statistics now becoming available for the second quarter provide a measurement of the recent rate to year-to-year improvement and some of the effects of the reduction in tax rates. While the number of people employed (on the average) in 1963 was 963,000 more than the number in 1962, and the average annual increase in the preceding 3 years was about 610,000, the first quarter of 1964 showed a year-to-year increase of 1,480,000 and for the second quarter it was 1,820,000. The increases this year were registered in spite of a declining trend in agricultural employment and a slight decline in the number of Federal Government employees. While personal income for the full year 1963 was 4.9 percent higher than the preceding year, the year-to-year increase in the first quarter of 1964 was 5.6 percent and in the second quarter it was 6 percent. The rising trend was, of course, more pronounced in personal disposable income (personal income after taxes), because the lower tax rates were moderately effective in the first quarter and completely effective in the second. This measurement of personal purchasing power in 1963 was 4.6 percent higher than in the preceding year. In the first quarter of 1964 the year-to-year improvement was 6.2 percent and for the second quarter it was 8.1 percent. If we assume that the growth rate of personal income in the second half will be similar to that registered a year earlier, personal disposable income in the two final quarters of the current year will continue to show year-to-year increase of 8 percent or better. This is an exceptionally high rate of year-to-year improvement in personal purchasing power. Usually, 92 to 93 percent of personal disposable income goes into personal consumption expenditures, although this ratio was only 91.8 percent in the second quarter compared with 92.9 percent in the first quarter and 93 percent for the full year 1963. Personal consumption expenditures last year were 5.1 percent higher than the year earlier, but the first quarter of 1964 year-to-year improvement was 5.6 percent and in the second quarter it was 6.5 percent. If these expenditures will be 92 percent of the foregoing estimate of disposable income in the third and fourth quarters, the year-to-year increase in expenditures would be 6.8 and 7.3 percent respectively. Here again, there are exceptionally large year-to-year increases. It appears that personal consumption expenditures were held down by a comparatively sluggish April. The total of all types of retail sales for that month had a year-to-year increase of 5.5 percent but for May and June combined it was 6.9 percent. The weekly figures for July suggest that the higher rate of year-toyear improvement is continuing. Final demand for goods and services (gross national product minus inventory increase) showed a 5.3-percent increase in 1963 over 1962. The year-to-year improvement in the first quarter of 1964 was 6.7 percent and for the second quarter it was 7.4 percent. It is likely that the third and fourth quarters of this year will continue to show a year-to-year improvement of 7 percent or better. Here again, this is a very satisfactory rate of growth for this broad measurement of goods and services moved into consumption by the personal, business, Government and foreign trade sectors. Whether this growth rate can continue on into 1965, depends on whether the various elements of the economy go into the breeding process; i.e., (1) whether the higher personal purchasing power and its spending creates new jobs and new purchasing power, (2) whether the higher activity results in a proportionate increase in business earnings, and |