Masonry Magazine May 1966 Page. 12
With sales and profits doing so well, it is harder for firms to hold back.
Back in January, industry was planning to increase outlays for new plant and equipment to $60 billion-plus-16% above last year. That figure still looks very reasonable. Only inability to get deliveries is likely to slash this figure.
THE FIGHT TO REVAMP THE JOBLESS PAY SYSTEM GROWS FIERCER
as a climax draws near in Congress. Consideration by the House and its Ways and Means Committee has been long drawn-out and strenuous. Business groups have been fighting to water down the changes that labor has been plugging with White House support. Management fears too much federal control and a tripling of the present $500 million in taxes on employees. The unions demand uniform standards to lift unemployment compensation especially in lagging states.
Congress will vote a bill in the end. But it will be a good deal weaker than labor wants. Its provisions would require:
-Payment up to 50% of an unemployed worker's average weekly wage to a maximum of 50% of the states average weekly wage. Currently, states have maximums of say, only $35 a week.
-An extra 13 weeks of benefits in time of recession, on top of current payment periods-26 weeks in many of the states.
-Coverage extending to all firms with one or more workers.
-An increase in the tax base from the current level of the first $3,000 of annual wages to perhaps the first $4,800.
THE MARKET FOR EXECUTIVES IS STRONG
THESE DAYS, say recruiters of top-level personnel. The business boom is one reason. The establishment of many new plants and the rapid proliferation of scientific research is another meaning that the openings center in manufacturing and in defense.
PRICES CAN MOVE DOWN, AS WELL AS UP
a fact that is often forgotten these days, when inflation threatens. Some commodities have already eased. More significantly, others could surprise and turn around before very long. Among those now down from this cycle's peak are zinc, hides, and coffee.
Vulnerable to declines in the near future may be tin, rubber, and even copper. Output of this scarce metal is increasing, while labor and political unrest is easing in overseas areas.
WORLD PROSPERITY WILL KEEP U.S. EXPORTS RISING
during 1966, instead of slowing down as many had feared. Better business abroad means increased need for sophisticated equipment and faster consumption of materials many of which are purchased from the U.S. In fact, machinery sales to developed areas had much to to with the higher export volume registered during March.
Canada, Italy, and Japan are among the most prosperous of our trading partners and among the biggest customers for U.S. exports. Advancing at a slower rate are France (where fear of inflation is a danger) and Britain (where the weak pound has been dictating austerity). The one major country likely to expand at less than last year's rate is Germany.
Imports are also expanding, of course-as rising incomes whet appetites for foreign luxuries and as industry meets needs for scarce equipment and materials. Net, the U.S. surplus in trade may come fairly close to last year's $4.8 billion-close enough so as not to add worries about gold losses.
THE SHORTAGE OF FREIGHT-CARS MAY GROW WORSE
before it gets better. Normally, this time of year sees a relatively light demand for cars to move grain and goods. But already there are acute problems especially out West. The situation will get tighter when harvest time arrives. Booming business and big grain exports are generating heavy demand for box-cars and hoppers. Lack of cars is a chronic drag, some roads let their rolling stock run down.
The shortage isn't likely to be overcome soon-certainly not this year, at any rate. Shippers, therefore, are advised to put in their requests for cars early as extra insurance.
VIET NAM AND INFLATION-THESE WILL BE THE KEY ISSUES
in the November elections, according to word reaching Washington from the voters back home. Congressmen up for reelection know that a lot can happen before voting time. The frustrating war could subside and the surge in prices could level off. But, for now, they are shaping their campaigns with these problems in mind.
Some will tone down their support for present policy in Viet Nam. They will vote the money, but will talk less about it. As for inflation, they would go along with a tax hike to curb price surges, if Johnson asks. But they would not be happy.
12
MASONRY
May, 1966