7- we must accomplish this in the face of an economic setting that is quite different than that which existed at the end of World War II when the huge reservoir of accumulated savings and unsatisfied demand allowed us to make a relatively easy transition from a wartime to a peacetime economy. Now California is faced with the problem of increasing the goods and services that it produces in a situation where the United States finds itself with most goods in ample supply and excess productive capacity in many industries. The United States has a precarious balance of payments problem, and our country has become a high-cost producer in many industries, no longer having a competitive edge in world commerce. Our national economy grows at an unsatisfactory rate. We have an increasing unemployment problem both in this state and in this nation. Our political leaders talk about "getting the economy moving again" and suggest palliatives that ease the minor ills but won't face the major cause that rests with the role of "big labor" and what it has done to the soundness and competitive position of our economy. Let's leave the subject of curing the national growth rate for a better man and another time. If he has the answer, I too will spend $9 to hear him, with or without dinner. For our purposes here it suffices to make the point that California will find it difficult indeed to expand its production of peacetime goods rapidly enough to offset any serious decline in defense spending unless the national economy is also growing. We would be hard