Business: THE PERILS OF UNDERESTIMATION

WHETHER they are making automobiles, alligator bags or applesauce, modern businessmen rely heavily on economic forecasts to tell them what the state of the nation is going to be in coming months or years and how much of a market their product can expect. With more and more statistics available and better tools to do the work, economists who make such estimates should be getting better at their science. Surprisingly, however, many U.S. planners in industry as well as Government are guilty of underestimating the basic strength of the economy and the demands that it makes on the future. To say...