THE GENERAL DOMESTIC ECONOMY

As the year 1947 begins, the state of our national economy presents great opportunities for all.  We have virtually full employment.  Our national production of goods and services is 50 percent higher than in any year prior to the war emergency.  The national income in 1946 was higher than in any peacetime year.  Our food production is greater than it has ever been.  During the last 5 years our productive facilities have been expanded in almost every field.  The American standard of living is higher now than ever before, and when the housing shortage can be overcome it will be even higher.

During the past few months we have removed at a rapid rate the emergency controls that the Federal Government had to exercise during the war.  The remaining controls will be retained only as long as they are needed to protect the public.  Private enterprise must be given the greatest possible freedom to continue the expansion of economy.

In my proclamation of December 31, 1946 I announced the termination of hostilities.  This automatically ended certain temporary legislation and certain executive powers.

Two groups of temporary laws still remain:  the first are those which by Congressional mandate are to last during the “emergency”; the second are those which are to continue until the “termination of the war,”

I shall submit to the Congress recommendations for the repeal of certain of the statutes which by their terms continue for the duration of the “emergency.”  I shall at the same time recommend that others within this classification be extended until the state of war has been ended by treaty or by legislative action.  As to those statutes which continue until the state of war has been terminated, I urge that the Congress promptly consider each statute individually, and repeal such emergency legislation where it is advisable.

Now that nearly all wartime controls have been removed, the operation of our industrial system depends to a greater extent on the decisions of businessmen, farmers, and workers.  These decisions must be wisely made with genuine concern for public welfare.  The welfare of businessmen, farmers, and workers depends upon the economic well-being of those who buy their products.

An important present source of danger to our economy is the possibility that prices might be raised to such an extent that the consuming public could not purchase the tremendous volume of goods and services which will be produced during 1947.

We all know that recent price increases have denied to many of our workers much of the value of recent wage increases.  Farmers have found that a large part of their increased income has been absorbed by increased prices.  While some of our people have received raises in income which exceed price increases, the great majority have not.  Those persons who live on modest fixed incomes—­retired persons living on pensions, for example—­and workers whose incomes are relatively inflexible, such as teachers and other civil servants—­have suffered hardship.