10- of raw materials is of paramount importance. However, these factors are not all determining and California's growth has been achieved at record rates despite these apparant disadvantages. As a matter of fact, some of these conditions are simply indicative of a vigorous expanding economy which needs high wages to attract workers, higher taxes to expand community services to a growing population, and where investors are willing to offer higher prices for assets that are in a position to serve a growing economy. What happens if we fail to create jobs a a faster rate? One of two things - either an unemployment rate of 13% to 14% or a decrease in the net migration to 50, 000 persons a year, or a combination of the two. I question whether we can tolerate unemployment at a 13% rate against our present 5. 9% and therefore a slowdown in net migration is the more likely. Net migration has been running at 350, 000 persons for the past few years and a constant annual rate of at least 300, 000 people would be needed to reach the 1970 forecast of 21. 7 million. The impact of a decline of net migration from 350, 000 to 50, 000 would obviously have a serious impact on the California economy, particularly on those segments of it that depend rather directly on serving the needs created by new people. The construction industry is a case in point. The impact would be less severe on those that serve the continuing needs of the existing population, such as food stores. However, virtually all segments of the economy would be affected in the sense that expansion