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a 4 7) . expentitures-for -niliiery-ressarcth exceeded those for medical resoarch by 16 to 1. 4s « further exarplo, U.S. tax end monetary policies + which havo a dirsot effect on | credit programs, particularly with regard to private housing, school, and hospitsl eonstruction - have been influsnced largely by the eoonomio requiroments of defense, , limiting investment in those aroas because of gorsratttt=pegged high rates of in- terost designed to curb inflation. Tariff policies havo been based to a great ox tent’ on dofense eonsidcrations. For stretogic or other reasons, many industries = . the lons-prinding industry, for exemple, ere protected and kept elive by teriffs in oase their assembly lines might come in handy in a future war. Clearly the elimination of defense mbilization or its deomphesis yould pro- foundly effeot our eoonomio life. Yet there is little doubt that the tremsition could be made. One significant faster is the sheer magnitude and infinite varioty ef umsatis- fied hunen wants which have been postponed because of defense dema:dse These rould be difficult to pinpoint, but there are umdoubtedly many families who don't oxm homes todsy because of tight orodit policies which could be relaxed end liberalized if there wore a reduction in defense expenditurese Certainly there ere many other areas ~ hore furnishings, automobiles, recreation, eto. - where oredit restriotions and high texes and inflation have limited consumer investments #eother significent factor wmderlying the expension of the American esonory is the rapidiy growing population. By 1965, it is estimated that U.S. population will reech 199 nillion; by 1970, 219 million. But of even more eoonomlo significence is the changing age characteristics of the popnlation. During the next decade there Will bo ex increase of more then 50 percent in the age group 20=24, from 11 million this yoor to about 1765 million in 1970. Since this ocnstitutes the largest mar~ Tiegeaklo croup, the demand for houses, furniture, autombiles, reoroation, and sll the other consumer goods und services will steadily increases There will also bo en inoreace of about 25 peroent in the age group over 65, end this will necessarily bo Tofiectog in larger outlays for social seourity ond other types of old-age ascistonsas Compsred with about 52 million households today, there will be 63 million in I97G. In addition, there will be significent shifts in income. In 1950, one family fn 1¢ hed an inoome of $10,000 or mores by 1870, it is predicted that the rato vill be rere then one in fours There will be proportionate rises in the other income Broups, . The dnorease in population will, of course, set in motion needs and dommds for oorsuncr goods and sorvices thet tend to stagger ths imagination. For oxarplo, it has been estimated that consumption by 1970 - if it should run et cbout the avernge for the past doonde + will inorosse by 35 to 40 percent. It is possible that the increase in cousumption - aid conversely production « will go beyond 50 peroemt in ton yorrse Obviously, businoss oppertimities will bo mlimited if this challenge is trenclaled into expansion progranse Most, oconerists ugreo tha t the U.S. escnomy would survive if the day oan when 8 dirarvwcnt agroarnnt wont inte effect end a major or total eut in dafonso spend- ang vere ordered. Thay poduk cul that you dontt suddanty stop spending for smaamts