THE ECONOMIC OUTLOOK

While not as optimistic as the administration, the author does expect fairly rapid real growth and declining inflation. He cites the advent of conservative fiscal and monetary policies, as dampeners of future inflation rates, along with moderating wage demands in the auto and steel industry. Because business inventories and staffing have become very lean after two years of stagnation, he feels the economy is posed for expansion once real growth starts increasing. Unemployment will decline as the end of post war baby boom will cause a decline in the growth of the labor force. Energy costs will increase at a slower rate, thanks to smaller increases in oil prices and the US motor vehicle fleet becoming much more fuel efficient as the less efficient 1971-1975 cars are phased out.