Jackson advocate. [volume] (Jackson, Miss.) 1939-current, 1954-02-20

Tells Us
For most people President Eisen-
movers proposed budget, some
1900 pages long, is far too complex
to follow. Actually, it tells US more
about the economic plans of the
administration than any other
document. 1t is really three docu-
ments in one:
1. 1t is an accounting document
because it records the governments
money income and outgo and what
the government is doing with pub
lie funds;
z. 1t is an economic policy docu-
ment because in its tax and SPEND
ing proposals it affects EMPLOYERS
and employees, business and con-
sumers as well as the government;
and
3. 1t is a forecasting document
telling us what the government ex-
poets will happen to the economy
as a result of it's policies.
The Accounting Document-The
budget records that during the ad-
ministration's first fiscal year in
office July /, 1863 to June 30.
1854 tax receipts are expected to
be So billion more than the previ-
Gus year. Expenditures are ex-
pected to be SO billion lower. This
will reduce the deficit Sc billion
below the year before.
However, if this reduction is to
be achieved the government must
take in sos billion more than it
will spend the first six months of
1854. Spending is now at a point
where 81 out of every SO is spent
on national defense.
Economic Policy Document
Here the budget reflects a sharp
swing from the policies of the last
20 years under the New and Fair
| Deals.
There will be less dependence on.
the government to meet any pos
sible economic hard times. Instead,
tax relief for business is to become
an important factor in stimulating
business investment.
In the past 20 years easy-to-get
credit was used by the government
to promote social welfare and farm
and business expansion. Now this
type of credit will have to come
more and more from the private
banking systems. 1t will not be
easy to get.
This is a return to the Republi-
can party's established principles
of balanced budget. This object
i've is being sought now irrespective
of whether there is q downturn
in the economy moving US toward a
recession.
The budget does recognize that
some advance planning must be
made for public works in case of
a slump in private construction.
BY the end of 1866 a program of
public works construction, totaling
some SIT billion is expected to be
ready to take up a possible slack
, In private construction.
1t is recommended that low-rent
housing starts be increased from
the 1854 ceiling of 10000 starts to
10000 in fiscal 1866. However,
private enterprise ultimately is to
assume the responsibility of pro-
viding housing for low income
families.
Commenting on the public hous-
ing program, Lee Johnson, director
of the National Housing Confer
ence said: "It would permit
planned program over period of
years, even though it is so small
that it will make little progress
toward meeting the housing needs
of families of very low income"
Forecasting Document-What is
the economic outlook on which the
budget is based? at assumes fair
ly stable conditions, internally and
externally, during the period"
This means that the administra-
ton expects the present drop in
business activity and rise in un-
employment to taper off by this
June. 1t also believes that the
proposed cut in government cash
spending of $4.5 billion in fiscal
1855 will not push us further down
the acnSSinn rnad