Evening star., 1949-07-16
The Political Mil
Economy Moves Dealt
Severe Blow by Truman
Deficit Spending Greed Declared
Popular with Congressmen
Bv Gould Lincoln

The ready manner IN which President
Truman has embraced deficit spending by
the Government-in order. as he says. to
prevent unemployment-has apparently
knocked the economy movement on Capitol
Hill higher than a kite. The economy
minded Senators and Representatives will
fight on. They might even succeed in the
Senate in tacking an amendment to an ap-
preparation bill directing the President and
his Bureau of the Budget to trim expendi-
lures or 10 per cent below the total amount
appropriated for the new fiscal year. but
in the House the proposal wouldn't stand
Chinaman's chance-or so some of the
economy minded Senators say.
Even if the Congress put through an
amendment or resolution empowering and
directing the President to cut the overall
Government appropriations. how far would
the President follow the directive? He has
said plainly both to the Congress and to
the American people that he believes the
thing to do is to spend money-Government
money In his recent midyear economic
report to Congress the President used this
language:
The fact that public expenditures of
Federal State and local governments are
running at a rate of close to go billion dollars
a year is an element of great stability In the
present situation"
That is the creed of the deficit spenderS-
and it's their creed whether there be deficit
or a surplus. Presumably from the Presi-
dents statement, it would be good thing
for the country if the total Government
spending were 100 billions of dollars, instead
of only so. provided. of course the Amer
ican people could stand having 100 billions
of dollars taken out of their pockets instead
of only go billion.
The President has not recommended cut
ting Government eXpenditures-not even
before it finally came to his attention that
the economic situation in the country was
becoming slightly precarious. Always there
has been demand on his part for new and
larger spending. And so it is perhaps not
surprising that, even with big deficit staring
him in the face, he continues on that course
Sixty billions of dollars pays for a lot of
GoVernment-most of it Federal-during the
course OF year. 1t means more and more
remuneration or more and more waste. or
both. But what it will mean In the end
II deficits continue and grow, Is the destruc-
ton OF the credit of the United States, and
OF the dollar. And when dollars will not
purchase, the ordinary American VA be
sunk.
Senator Byrd OF Virginia, leader OF the
budget balancing bloc in the Senate is
strongly urging his colleagues to defeat the
Presidents program. His comments IN the
Senate on Mr.. Truman's proposals and his
economic report were blistering; he charged
the President has no fiscal policy" that he
Changes with every current Of political
expediency from balanced budget one day
to deficit spending the next day, from in
creased taxes one day to lower taxes the
next day"
Popular With Congress.
The fact Of the matter is. however, that
spending Government money" is popular.
certainly with majority OF the members OF
Congress. Further, the President is engaged
in persuading the people that only by such
spending can they hope to keep away from
great unemployment
Senator George of Georgia, chairman OF
the Finance Committee Of the Senate. who
opposed strongly President Truman's earlier
recommendation for $4,000. 100000 in Fed
eral taxes. takes almost as gloomy view OF
the deficit-spending program which Mr..
Truman is now advocating as does Senator
Byrd. He does not see the country and
the dollar going into tail spin Immediately,
and he thinks the country can stand deficit
spending for year or two. but If it Is con-
tinued the end will be disaster. in his opinion
The country stood many years Of deficit
spending under the Roosevelt administration
which never got out of the red But due
to the war the public debt is $50 billions now.
and each billion of dollars that Is added
makes the situation all the blacker
The two schools of thought, one favoring
economy and the other prefering to 60
further into debt, are now locked in struggle.
The only opportunity the Congress still has
to strike a blow for Government economy
is to lop millions off the big appropriation
bills that must still be acted upon before
the session closes.