Is the United States Being Priced Out of World Markets?

The article questions that is the United States being priced out of the world market. Since much public discussion has been carried on without objective analysis, some pertinent facts are presented. The index of export prices for the United States rose from 100 in the base year 1953 to 106 in 1959. All other countries except Great Britain and Canada experienced a steady growth with particularly sharp rises in 1959. Japan with a 1959 index of 280, Germany with 198 and Italy with 182 was especially outstanding. Assuming that exports have decreased because the prices in the U.S. have risen relative to foreign prices, the causes can be many. Between 1953 and June 1959 the index of U.S. wage rates rose from 100 to 127 while indices of all other major countries showed equal or greater rises. With various forms of government intervention such as subsidies, tariffs and quotas, materials are becoming more costly. High prices may also result from large overhead or insistence on high return on capital.