The Economy: New & Exuberant

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Models for the 1960s. Once the U.S. gets over the soft middle years of the 19605, when the war babies crowd into the labor market, the leaders of the new economy will be in a strong position to lift the nation toward much higher levels of prosperity. Their new efficiencies have enabled them to profit and expand even during times of relatively slow demand and steep taxes. Given a sensible tax structure and stronger demand all around, they should be able to raise earnings appreciably without raising prices. "All the factors for growth are there," says Gordon.

The U.S. is now entering a period of ample capital, credit and capacity, and of a burgeoning adult population that will summon up fresh demands for everything from engagement rings to electricity. The Government estimates that by the end of 1963 the U.S. will be producing 30% more than it did five years ago, and that the gross national product will be in the neighborhood of $590 billion—an average of nearly $8,500 worth of goods and services for every working American. Economist Gainsbrugh—joined by many a businessman and economist—looks farther ahead to the time when the frustrated promise of the Soaring Sixties will be fulfilled. "I'm firmly convinced," he says, "that the economic models we built for the 19603 will still prove out, and will give us an $800 billion gross national product by the end of the decade." Economists and businessmen can hardly do more than guess what the new economy will eventually mean for U.S. business and the millions who benefit from it, but in mid-1963 their estimates have a firm tone of confidence.