Review Of The Mineral Industries (Metals And Nonmetals Except Fuels)

SUSTAINED growth characterized the U.S. economy in 1964. Many new peaks were achieved in production, sales, employment, employee earnings, and business profits. At the end of 1964, the economy had experienced 4 years of uninterrupted expansion, and the greatest net gains in output for all postwar cyclical advances had been registered. There were no indications of the various weaknesses which have previously characterized advanced stages of business expansion. Both gross national product (GNP) and national income were 6.7 percent higher than in 1963. In 1964 GNP totaled $628.7 billion, a gain of $39.2 billion over the 1963 figure. On an overall basis, prices rose 1.75 percent in 1964. The real volume of output of goods and services (GNP in constant dollars) increased by 5.0 percent ill 1964; this was more than the 3.8-percent gain in 1963 but less than the 6.6 percent gain in 1962. The 1964 output gain also exceeded the average 3.7 percent annual increase for the postwar period. Congress authorized a two-stage tax reduction designed to further stimulate economic growth and employment. The tax cut favorably affected the 1964 economy in the following ways: By helping to boost personal income, corporate profits, and industrial production; by accelerating the pace of consumer spending and business capital expansion; and by increasing employment, thereby reducing unemployment to 5 percent. Three major problems remained unsolved. These were unemployment of 3.7 million persons, poverty conditions among more