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HEARINGS

BEFORE THE

SUBCOMMITTEE ON LOW-INCOME FAMILIES

OF THE

JOINT COMMITTEE ON THE ECONOMIC REPORT
CONGRESS OF THE UNITED STATES

EIGHTY-FIRST CONGRESS

FIRST SESSION

PURSUANT TO

Sec. 5 (A) of Public Law 304

(79th Congress)

61484

DECEMBER 12, 13, 14, 15, 16, 17, 19, 20, 21, 22, 1949

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WASHINGTON: 1950

Report

DEPARTMENT

JOINT COMMITTEE ON THE ECONOMIC REPORT

(Created pursuant to sec. 5 (a) of Public Law 304, 79th Cong.) .

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CONTENTS

537-554

Johnson, D. Gale, professor of economics, University of Chicago. 291-340
Lasseter, Dillard B., Administrator, Farmers Home Administration_ 285-289
Liguti, L. G., Msgr., executive director, National Catholic Rural Life
Conference__

513-527

Neal, Ernest E., director, Rural Life Council, Tuskegee Institute,
Alabama

209-235

340-363

Whitten, E. B., executive director, National Rehabilitation Associa-
tion_

364-374

LOW-INCOME FAMILIES

MONDAY, DECEMBER 12, 1949

CONGRESS OF THE UNITED STATES,
SUBCOMMITTEE ON LOW-INCOME FAMILIES,
JOINT COMMITTEE ON THE ECONOMIC REPORT,

Washington, D. C. The subcommittee met, pursuant to call, at 10: 20 a. m. in room 224, Senate Office Building, Senator John Sparkman (chairman) presiding.

Present: Senators Sparkman (chairman) and Flanders; and Representatives Huber and Rich.

Also present: Grover W. Ensley, associate staff director, Joint Committee on the Economic Report; Samuel L. Brown, economist, Subcommittee on Low-Income Families; and Mrs. Elizabeth G. Magill, research assistant, Subcommittee on Low-Income Families.

Senator SPARKMAN. Let the committee come to order, please.

A few days ago this statement was issued. I think it is just about as concise a statement as we could have regarding these hearings, and I will just read it:

Public hearings on the problem of low-income families will begin on Monday, December 12, and will continue through December 22. Materials assembled by the staff of the subcommittee and published as a joint committee print entitled "Low-Income Families and Economic Stability," indicate that 10,000,000 American families received less than $2,000 during the highly prosperous year of 1948. The members of the subcommittee will hear expert testimony from Government and private witnesses on the circumstances of these families, and on the effect of their low production and low purchasing power on the economy as a whole. Some of the broad questions of fact and policy on which information is sought are:

1. Will the low production and low purchasing power of this large group of families hinder or prevent the stabilization of the economy at levels of maximum production and employment? Does the prosperity and progress of all depend upon raising their standards of living?

2. What can be done, in the form of long-run constructive policies, to increase the production and earning capacity of these families, thus making for a more prosperous national economy?

3. What conditions deprive these families of the opportunity to make a larger productive contribution and thus increase their purchasing power? What is the relation between low income and lack of educational opportunity? How successful are the children of low-income families in "pulling out" of that status?

Witnesses have been invited from Federal and local governmental agencies, as well as private research and other groups concerned with these problems. Hearings during the first week will be held in room 224, Senate Office Building, and in room 318, Senate Office Building, during the second week.

I may say that this particular hearing was authorized along with the other hearings that are being held by two other subcommittees of the Joint Committee on the Economic Report, under the terms of Senate Concurrent Resolution 26 adopted last summer by the Eighty

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