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by” og 7, expentitures-for -militery-research exceeded those for medical rescarch by 16 to l. 4s « further exanple, U.S. tax end monetary policies « which hevo e dirsot effeot on. credit programs, particularly with regard to private housing, school, and hospital senstruction = have been influsnced largely by the soonomio requiroments of defense, limiting investment in those aroas because of gursrattrtepesged high rates of in- terost designed to curb inflation. Tariff policies havo been based to a great ox- tent’ on dofense eonsidcrations. For stratocic or other reasons, many industries «= the lens-grinding industry, for exemple,— ere protected and képt alive by tariffs - in oase their assembly lines might come in handy in a future war. Clearly the elimination of defense mbilization or its deemphasis would pro- foundly effect eur economio life. Yet there is little doubt that the tremsition could be meade. Ons significant fastor is the sheer magnitude and infinite varioty ef weatic- fied humen wants which have been postponed because of defense demandse These rould be difficult to pinpoint, but there are wmdoubtedly many families who don't oxm homes todry because of tight credit policies which could be relaxed eid liberalized if there were a reduction in defense expanditurese Certainly there are many other areas ~ hore furnishings, automobiles, recreation, eto. - where oredit restristions and high texes and inflation have limited oonsumer investment. f#oother significent factor wderlying the expension of the American esonory is the rapidiy growing population. By 1965, it is estimated that U.S. population will reech 199 million; by 1970, 219 million. But of even more economio significance is the changing age characteristics of the popnlations During the next decade there Will be ea increase of more thm 50 peroent in the age group 2024, from 11 million this yoor to about 17,5 million in 1970. Since this oonstitutes the largest mar~ riasteablo croup, the demend for houses, furnivure, autombiles, reorsation, and all the other consumer goods und services will steadily increases Thore will also be en inorease of about 25 peroent in the age group over 65, end this will necessarily bo - Tofleeted in larger outlays for social seourity end other types of old-age assistansa. Compared with about 52 million households today, there will be 63 ‘million in TST In addition, there will be significant shifts in income. In 1950, one family in 12 hed en inoome of $10,000 or mores by 1970, it is prodicted that the rato vill he rere then one in four. There will be proportionate rises in tha other income Brourps, ; . The dnoraase in population will, of course, s6t in motion needs and domads for oo.suer poods and sorvices thet tead to stagger ths imagination. For oxarplo, 1% has beon estimated that cons umtion by 1970 ~ if it should run at cbout the averere for the past doonde » will Znorouse by 35 to 40 parcent. It is possible that thea increase in consumption = aid conversely preduotion « will go beyond 5C poromt in ton yoars. Obviously, business oppertimities will be unlimited if this challenge is trenclated into expansion progranse Lost oconord sts aprea the & the U.S. asecnomy would survive if the day cam wien R diranwornt argresarnnt wot inte effeot and a major or total cut in dafensoe spend ang vers arosred. Thay podunk cut that you dantt soddeanty stop spending for araqwamts