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- 8 - That formula was tried after the first world war. And we paid for it. Between 1920 and 1921, annual national income fell by 18 billion dollars. Industrial production dropped 23 percent. Unemployment increased by more than 4 million. Business failures more than doubled. Farm losses appalling were ARCHIVES "HATIONAL RECOROS AM SERVICE' We must not choose that formula again. If we are to avoid a recession we must act before it starts. Prices must be brought down. I speak first to those businessmen who have it within their power to reduce their prices. Price reductions will bring more prosperity and profits in the long run. Lower prices will sustain and further increase the present high volume of sales and stimulate greater production. This nation will grow only through increased productivity and more and more production. Higher prices for the same amount of goods will sounder lead only to an artificially-inflated economy, not a bigger economy. Present business conditions permit - in fact, they require -- lower prices in many important fields. Profits in the aggregate are breaking records although profit margins vary greatly in individual cases. In 1946,

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    "ocrText": "- 8 -\nThat formula was tried after the first world war. And\nwe paid for it. Between 1920 and 1921, annual national income\nfell by 18 billion dollars. Industrial production dropped 23 percent.\nUnemployment increased by more than 4 million. Business failures\nmore than doubled. Farm losses appalling\nwere\nARCHIVES \"HATIONAL RECOROS\nAM\nSERVICE'\nWe must not choose that formula again.\nIf we are to avoid a recession we must act before it starts.\nPrices must be brought down.\nI speak first to those businessmen who have it within their\npower to reduce their prices.\nPrice reductions will bring more prosperity and profits in\nthe long run. Lower prices will sustain and further increase the\npresent high volume of sales and stimulate greater production. This\nnation will grow only through increased productivity and more and\nmore production. Higher prices for the same amount of goods will\nsounder\nlead only to an artificially-inflated economy, not a bigger\neconomy.\nPresent business conditions permit - in fact, they require --\nlower prices in many important fields.\nProfits in the aggregate are breaking\nrecords\nalthough profit margins vary greatly in individual cases. In 1946,"
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