Business: COMPETITION FROM ABROAD

Is the Foreign-Aid Program Too Successful?

In the postwar race for world markets, the U.S. gave itself a heavy handicap. It poured $35 billion of foreign-aid money into the economies of other countries (e.g., $207 million into Europe's iron and steel industry, $35 million into its auto industry). To many businessmen, the foreign-aid program has succeeded too well; they complain that they are losing business to their eager new competitors abroad.

The gripe is often legitimate. In six years, the U.S. shipped $254 million worth of machine tools to Europe. But European imports died down after Europe's machine-tool output soared from $481 million...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!