As was emphasized in Chapter II, a strong economy is essential not only for the welfare of this country but also for the well-being of peoples throughout the world. Depressions which bring unemployment, waste, and suffering at home also undermine the world economy.

The economic and political rehabilitation of the free countries of the world, and their ability to withstand totalitarian pressures, depend heavily upon the strength and stability of the American economy.

The seven objectives of this program area are directed toward the recognized major problems of our economy. Work toward these objectives by numerous individuals and organizations has been in progress for many years. Several smaller foundations concentrate heavily on economic projects, and both government and industry annually expend impressive sums on economic research. Government and industrial support understandably tends to be directed toward the solution of specific problems. There is comparatively little need for additional support of short-term, applied research; there is significant need for foundation support of (1) the development and testing of economic theory; (2) efforts to make more effective use of economic knowledge by bringing it directly to bear on policy making; and (3) efforts to disseminate economic knowledge more widely.