Anniversary Report Card

One year ago last week, President Nixon jolted the world by announcing a nearly total reversal in U.S. economic policy. He aimed to put three enormously complex problems on the road to solution before Election Day. Here is a capsule report card on his New Economic Policy in each area:

SLOWING INFLATION. The latest consumer price index was 2.9% higher than a year earlier, and the increase is decelerating to an annual rate that should be closer to 2.5% by year's end. But food prices have gone up at a much faster 3.2%. Weekly earnings are up 6.1 % and, when adjusted for inflation, provide about 3.2% more real buying power than the paychecks of a year ago. Rating: good.

BALANCING INTERNATIONAL PAYMENTS.

The U.S. deficit continued to balloon until devaluation of the dollar late last year, but is improving in 1972. The shortfall totaled $4.1 billion in the first six months, v. $11.9 billion a year earlier. The red-ink figure is still high by historic standards, though, and U.S. imports are persistently exceeding exports. Rating: fair.

EXPANDING THE ECONOMY AND CUTTING UNEMPLOYMENT. The gross national product lately has been running at $96 billion ahead of a year ago, a very healthy 9.2% gain. But unemployment has dropped only from 6.1% last summer to 5.5% now. Rating: superior on expansion but unacceptable on jobs.

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