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Show To Save Now Is Wise Roger V. Eabson points out that ' the people of this country are I today spending seventy per cent more than they did in 1939, al-j al-j though the cost of essential living i has gone up only twenty per cent. The statistician says that s'.nce V.:". i :tio iacu-a.-,e in spending ma: iy corresponds v.'th the ln-tvcu'ir ln-tvcu'ir of the a -erago vveek.lv earnings of our domestic ponjla-I ponjla-I tion and questions whether triis : "rcil'-rts shrewd family ;'.an-! ;'.an-! ning." ; I' o:ig!;t to be recognized bv 'every American that we are liv-j liv-j in" abnormal yea's, with a supcr-abundanoc of money, due (cnthelv to the wartime speno.ing of the Government. If history re-! re-! peats, there is ahead, inevitablv i and unavoidably, a period of re- co---ion. even it' it is caused by nothing more than the cessation 'of unlimited Government spending. spend-ing. j Under such circumstances, it , would be the part of wisdom for individuals, now enjoying incomes in-comes larger than usual, to make a desperate effort to save some of i.iie easy money in order to be prepared for the tighter times that will arrive. Not only will the individual be able to buy more with the money when the recession comes, but. hv postponing expenditures, he will assist the Government In ureventing inflation. There is a scarcity of certain goods and. despite price control, considerable commerce on the black market, which flourishes only because A-mericans A-mericans are willing to pay extra-legal prices for immediate possession of what they want. Mr. Babson suggests that the cost of essential wartime living has gone up only twenty per cent. This means that the buyer must pay today $1.20 for what $1.00 used to buy. If the expected recession re-cession arrives, and prices go down twenty pee cent from what they were in normal years, the , man who saves $1.20 today will be able to buy goods to the normal nor-mal value of $1.50 in normal times. Mathematical experts can figure fig-ure this out. The increased buying buy-ing power amounts to twenty-five twenty-five per cent on the money saved. This is not a small gain for those who act wisely and patriotically pa-triotically today. |