Midyear Economic Report
of the President
TRANSMITTED TO THE CONGRESS
July 1949
THE MIDYEAR ECONOMIC
REPORT OF THE PRESIDENT
To the Congress, July 11, 1949
Together with a report
THE ECONOMIC SITUATION
AT MIDYEAR 1949
by the
COUNCIL OF ECONOMIC ADVISERS
UNITED STATES GOVERNMENT PRINTING OFFICE
WASHINGTON : 1949
LETTER OF TRANSMITTAL
THE WHITE HOUSE,
Washington, D. C, July 11, 1949.
The Honorable the PRESIDENT OF THE SENATE,
The Honorable the SPEAKER OF THE HOUSE OF REPRESENTATIVES.
SIRS: I am presenting herewith a Midyear Economic Report to the
Congress. This is supplementary to the Economic Report of the President
of January 7, 1949, and is transmitted in accordance with section 3 (b)
of the Employment Act of 1946.
In preparing this report I have had the advice and assistance of the
Council of Economic Advisers, members of the Cabinet, and heads of
independent agencies.
Together with this report I am transmitting a report, the Economic
Situation at Midyear 1949, prepared for me by the Council of Economic
Advisers in accordance with section 4 (c) (2) of the Employment Act of
1946.
Respectfully,
in
Contents
Page
TH E MIDYEAR ECONOMIC REPORT OF THE PRESIDENT
1
Summary review of recent economic developments
3
Policies for economic stability and expansion
5
Summary of legislative recommendations
13
TH E ECONOMIC SITUATION AT MIDYEAR 1949 (a report to the Presi-
dent by the Council of Economic Advisers).
To the Congress of the United States:
The United States economy is the strongest and most productive the
world has ever known—and we have the resources and the skills to make
it still stronger and more productive.
In recent months we have seen the abatement of postwar inflationary
forces. We are now in a transition period, in which we must work toward
conditions that will promote a more stable and enduring growth in pro-
duction, employment, and purchasing power.
The fundamental task facing us all—businessmen, workers, farmers,
Government—is to apply positive policies with confidence and courage in
order to achieve