Was the steep decline caused by “severe winter weather” and the “Russian sputniks”?
Before discussing this aspect of the question, it may be well to take note of the extreme concern about the relative positions of the American and the Soviet economy that now enters more openly into all forecasts emanating from capitalist sources. The deeper the recession here, the more painfully apparent are the tremendous forward strides of Soviet production capabilities. In government and Big Business circles every comparison of these positions arouses apprehension. Soviet economic expansion is viewed as a serious peacetime threat to the moral and political influence of the United States on other nations. Burns, whom we quoted above, shares this apprehension. In the address mentioned, he cried out in anguish: “In the present international situation, the continuance of prosperity in the United States is essential – indeed, absolutely essential – to the economic, political and military strength of the entire free world.” This plea brought a crushing rejoinder. It was contained in the
