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Show WHAT CAN WE EXPECT IN 1950? Year-end statements as to the prospects of business bus-iness for 1950 show wide differences of opinion among well informed persons. Although those who are confident con-fident that 1950 will be a good year, are greatly in the majority, the views of those not so optimistically inclined cannot be lightly disregarded. When the opinions of those who are more hopeful hope-ful are boiled clown, they amount to this: unfilled demands de-mands are still large, buying power is great and money is still abundant. Government spending, both federal and local, will be large. Inflation this year is unlikely because the equation is not weighed that way. Production will continue high. Relative stability of income and prices is seen. It is worthy of note, however, that many of those who are predicting a good year, warn that downward pressures will grow stronger as the year advances. Imports will increase gradually as exports move in the opposite direction. Pressure of demand will be less acute. The trend expected this year, will be sidewise with a clip more likely than a hump in 1951. Taking some of the gloomier views, precedence must be given the unsatisfactory state of the world situation. Then it is apparent that many believe consumer con-sumer demand will decline this year. An increase in unemployment seems probable. No one is predicting this will assume serious proportions, but it will be enough to make consumers cautious in their buying. Although high support prices have been continued for basic crops, the decline in their total income will be enough, according to opinions, to influence farmers far-mers to use less hired help, to buy less equipment and less consumer goods. The attitude of the consuming public has more effect upon business than any other domestic factor. Those who expect a decline this year in business activity are also influenced by their conviction con-viction that demand for capital goods will be materially mater-ially less. The federal administration is expected to push more determinedly for expensive welfare plans, it is believed, to also press anti-trust activities and to try hard for increased taxes on corporations all of which discourages business and tends to slow down industrial expansion. The most disheartening factor of all to business, according to experts, is the prospect of a heavily unbalanced un-balanced federal budget. |