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Midyear Economic Report
of the President
TRANSMITTED TO THE CONGRESS
July 21,1947
THE MIDYEAR ECONOMIC
REPORT OF THE
PRESIDENT
To the Congress, July 21, 1947
UNITED STATES GOVERNMENT PRINTING OFFICE
WASg^NGTON : 1947
For sale by the Superintendent of Documen^ U. S. Government Printing Office
Washington 25, D. C. -? Price 25 cents
LETTER OF TRANSMITTAL
THE WHITE HOUSE,
Washington, D. C, July 21, 1947.
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 8, 1947, 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.
Respectfully,
CONTENTS
Page
I. Foreword and summary
1
II. From war to peace
5
Lessons from 1919-21
5
The approach to postwar readjustment
6
The first Economic Report
7
III. The situation at midyear
9
Employment
9
Production
11
Purchasing power
11
IV. Changes in the Nation's Economic Budget, December to June
14
Consumer income and expenditures
14
Business income and domestic business investment
19
International transactions
22
Government transactions
24
V. Economic adjustments for sustained high production
28
The process of price adjustment
28
The process of wage adjustment
33
Profits and business
financing
35
Responsibility for adjustment by business, labor, and Govern-
ment
36
VI. Special factors in the economic situation
37
The agricultural outlook and food prices
38
Wage advances and industrial productivity
40
Housing and other construction
43
The foreign aid program
45
Contents of appendixes
49
Appendix A. Explanation of the Nation's Economic Budget
51
Appendix B. Statistical tables relating to employment, produc-
tion, and purchasing power
61
v
To the Congress