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RELEASE O N RECEIPT REPORT O P THE JOI N T COMMITTEE ON THE ECONOMIC REPORT The Joint Committee on the Economic Report was established under the terms of Section 5 of Public Law 304, approved February 20, 1946; Section 5, as amended b y Puhlic Law 601, approved August 2, 1946, reads, in part, as follows: nSec* 5. (a) There is hereby established a Joint Committee on the Economic Report, to be com* posed of seven Members, of the Senate, to be appointed b y the President of the Senate, and seven Members of the House of Representatives, to be a ppOinted b y the Speaker of the House of Representatives# The party representation on the joint committee shall as nearly as m a y be feasible reflect the relative membership of the majority and minority parties in the Senate and House of Representatives* (b) .It shall be the function of the joint com mittee (1 ) to make a continuing study of matters relating to the Economic Report; (‘ 2 ) to. study means of coordinating programs in order to further the policy of this Act; and (3) sis a guide to the s eVeral committees of the Congress dealing with legislation relating to the Economic Report, not later than February 1 of each year (beginning with the year 1947) to file a report with the Senate and the House of Representatives containing its findings and r e commendations with respect to each of the main recommendations made b y the president in the Economic Report, and from time to time to make such other reports and recommendations to the Senate and House of Representatives as it ieems advisable*11 Although the Act became a law February 20, 1946, the President did not appoint the Council of Economic Advisors pro vided, for b y Section 4 of the Act until July 25, 1946# This Joint Committee was not appointed until just before Congress adjourned, and it was not practicable to set up a staff or begin the work during the last Congress. Five members of the Committee wore not elected to the 80th Congress, and it was necessary to reconstitute and reorganize the Committee this month. No staff has yet been a p pointed, The problems to b e considered b y the Committee are the most complex economic problems which the country faces, and it is vitally important that the best possible staff and consultants be procured in order that the best possible studies m a y b e made# The Committee is now engaged in canvassing the qualifications of a number of men for this work, but as yet has not selected these men o r begun the necessary studies* ; The Committee has considered-the Report of the Council of Economic Advisors to the President, made in December 1946 (Senate Document No* 6), and the Economic Report of the President transmitted to the Congress on January 8, 1947 (House Document No. 49)* It has particularly considered the recommendations of the President in the "short range program” appearing on pages 20, 21, and 22 of his R e port. The Committee agrees with the President that removal of w a r time controls and the return to a freer economy places on business, farmers, labor, management and consumers the main responsibility for working out price and wage relationships* The Committee joins in - 2 * the P r e s i d e n t s hope that business will redupe prices; that labor will refrain from excessive wage demands; and that b o t h will b e n d every effort to increase productivity* The short range recommendations o r the President calling for Congressional action m a y be summarized as follows: 1. Congress should extend rent control* 2* Congress should extend the coverage and raise the rate of the minimum wage* 3* Congress should extend the coverage and revise the benefits u n d e r 'the .Social Security system* 4* Congress should enact a long range, comprehensive housing program* 5* Vihile the tax burden should b e reduced as soon as possible, it should not b e reduced at this time* 6* Congress should deal w i t h the whole field of labor management relations in which sound collective bargaining is essential* All of these six matters are already under consideration b y standing committees of Congress which will make a detailed study of each one of them and submit recommendations to t he Congress* Most of them aro highly controversial* A recommendation f rom this Committee at this time which could only be casual before our studies are made, would not b e helpful to the solution of the problems* The Committee will proceed to consider these problems with reforonce to their effect on the maintenance of a stable economy and continuous employment* The basic problem which this Committee has to consider is the method of preventing depressions so that substantially full em ployment m a y be continuously maintained* No problem before the American people is more vital to our wolf are, to the very existence of our way of life, and to the peace of the world. It is the most complex and difficult of all the long range domestic problems we have to face. It involves a study of price levels and wage levols and their relation to each other, a study of methods of preventing monopoly control in industry and labor from distorting prices and wages, a study of spending for consumption a n d for capital invest ment, a study of individual and corporate savings, and a study of m any other economic forces bearing on a stable economy* Until we have further studied and analyzed the basic con siderations which underlie this problem, we do not feel we should become involved in controversy on current issues which have m a n y a s pects besides their effect on the prosperity of the country* YJith regard to the P r e s i d e n t s long range program, no im mediate recommendations are necessary* The Committee will proceed to consider his different proposals as rapidly as we can roach them, to determine whether they bear a relation to the principal task of this Committee and, if they do, make recommendations to Congress wit h regard to them* The Committee notes with approval that the Report places special emphasis upon an over-all policy directed toward the preser vation in agriculture of the family-sized farm (page 25) a n d in i n dus try of free competitive enterprise (page 28). The details of a p r o gram to prevent another agricultural depression and of an affirmative program, i n the words of the Report “to enlarge the opportunities for efficient and enterprising small businesses” will b o among the p r i m ary subjects of committeo studyt Regardless of the recommendations of the Report on which there m a y or m a y not bo controversy, it is our desire to commend the compilation of statistics and economic facts which are contained in the P r e s i d e n t s report and furnish a substan tial basis for further study* ROBERT A* TAFT, Chairman JESSE P* WOLCOTT, Vico Chairman JOSEPH H* B ALL RALPH 2* FLANDERS GEO HOB H* BL.I7DER WALTER H* JUDD ARTHUR V* YJATKIHS FRANCIS J* MYERS SDVfAHD J* HART ROBLRT F* RICH JOSEPH C* 0 'MAEONEY JOHN SPARKMAN WALOSR B* HUBER WRIGHT PATMAN
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