Part I
INTRODUCTION
Chapter 1
Role of Government in Economic Progress
AGREAT OPPORTUNITY lies before the American people. The
United States is in a position immediately to undertake a sustained
improvement in national living standards. During World War II the
needs of the military services and the contributions that this Nation made
to the military efforts of its allies naturally took precedence over all other
claims on the economy. The years that followed the war were devoted,
in the main, to meeting demands that had been postponed during the
conflict and the preceding years of depression. The war in Korea once
more assigned first priority to military needs. Today, and we believe to-
morrow, this emphasis is no longer as pressing. Our approach to a position
of military preparedness now makes it possible to turn the productive poten-
tialities of the economy increasingly to peaceful purposes. This is a welcome
opportunity. To help our people seize it, the Federal Government must
continue to meet successfully the challenging problems of economic transition
from war and inflation to peace and monetary stability.
Our economic goal is an increasing national income, shared equitably
among those who contribute to its growth, and realized in dollars of stable
buying power. To achieve this goal, the dynamic forces of our society
must be fully released. Accordingly, Government programs must be de-
signed to help maintain reasonable stability during periods of readjust-
ment and to encourage long-term growth. The mandate of the Congress as
set forth in the Employment Act must always be kept before us: "To pro-
mote maximum employment, production and purchasing power .. . in
a manner calculated to foster and promote competitive enterprise and
the general welfare." This Report sets forth the main lines along which
the Federal Government proposes to move toward these ends.
THE IMPORTANCE OF PROGRESS
A high and sustained rate of economic growth is necessary to the wel-
fare, if not to the survival, of America and the free worl