HANSEN HAILS NEW FAITH IN SYSTEM

Renewal of our confidence in the power of our economic system to progress is being brought about by the war, Alvin H. Hansen, Littauer Professor of Political Economy in the Graduate School of Public Administration asserted yesterday afternoon, addressing 150 people in New Lecture Hall on the "Economic Aspects of Current Events."

In 1941 we produced 20 per cent more per capita than in the 1920's, a feat which, according to Hansen, has given us a new idea of our production capabilities. At the present time our supply of civilian durable goods on hand is sufficiently great, he said, that even if we should cease their manufacture and apply our energies entirely to industrial production, we could live almost as well in 1943 as in 1941.

Inflation a Danger

Two main inflationary pressures exist, he said. In the first place, an increased number of wage-earners and large wages have meant increased buying. In the second place, the selling price of a product is forced up by excessive manufacturing costs.