U.S.A. Lucky—But Britain Fights for Recovery
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QPEAKING met dinner in London on Is-) February .11, Mr. Henry Ford said that America was singularly fortunate in its ability to shift its production machinery from war to peace.
For the first time civilian employment passed. the 60,000,000 mark last June. Tied to this was a disposable income among consumers equal to more than £43,500,000,000, and during the last quarter of the year people were spending it at an annual rate close to this sum.
Wage increases brought the average weekly earnings in all America's manufacturing industries to £12 13s. 10d. last November compared with £5 18s. 8d. in 1939, but the fly in the ointment is the higher price levels.
The total output of the whole economy for the year was about 232,000,000.000 dollars, or 76 per cent. above the 1935-39 average, whilst business spent over £6,000.000,000 during 1947 for plant, equipment, etc., but from June to December wholesale prices rose at an annual rate of 20 per cent., and consumers' prices at 12 per cent. For the year the wholesale price index for all commodities was 96.8 per cent. over that of 1939.
The American Ford concern made 1.003,384 units in 1947, and the average number of employees was about 119,000. They were paid over. £102,000,000. There was an actual
shortage of steel and other basic materials, but £25,000,000 was spent on new plants, tools and equipment, and it is planned to spend a similar sum in 1948.
Replying to a toast by Sir Rowland Smith, M.I.Mech.E., managing director of the Ford Motor Co., Ltd., the Minister of Supply. Mr. 0 R Strauss, said it appeared until recently that some of Mr. Ford's compatriots believed that Britain was incapable of making any recovery. Considerang. the severe economic dislocations that faced us in the autumn of 1945, the people of our country had made, and were making, a truly astonishing come-back, No other country similarly devastated and dislocated had made a comparable recovery.
Industrial Employment Up
In 1939, 17,920,000 were employed in industry: to-day the figure approached 19,000.000. In 1938. 24,500 million kilowatt-hours of electricity were generated; last year the figure WEI:42,500 million. Last year our factories consumed 50 per cent, more wool and aluminium than in 1945, and our steel production was 7.6 per cent, higher; the steel target for this year represented an increase of 20 per cent. Commercialvehicle output last year was almost the same as that of 1938, production of agricultural tractors was quadrupled