Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-12-05
Fiscal Sanity

bS@0t S6HASI
One Of the proposals Of
the late President, which one
hopes the new President will
review and revise, was that
Of a tax reduction, increased
Federal expenditures and re-
sulting deficits, all Of a
magnitude to give concern
to prudent men. Occasional
Federal deficitS-in time Of
war or economic crisis-are
one thing. Chronic, incur
able deficits are something
else. The Federal Govern
ment has operated on q
deficit Enhancing basis for 26
Of the last 80 years. We have
had a net deficit Of $2S bill
lion since the Korean War.
There was a $50 billion def
cit in fiscal year 1861 and a
deficit Of $6.4 billion last
year. This year there will be
a deficit Of SO billion or
more. Further deficits are
planned for the immediate
years ahead. No politician
or economist can convince
me that this persistent in
ability Of the Federal estab-
lishment to bring expendi-
lures within the limits Of
revenue can end in anything
other than disaster.
The late President in Feb
ruary predicted a recession
before long" II Congress
failed to adopt his tax-cut-
ting, deficit financing pro-
gram. That recession not
only has failed to materialize
but business has actually
improved. This has COM
pletely contradicted the eco
nomic advisers of the late
President and compelled
them to shift their augment
alton for their policies from
prevention Of a recession to
promotion Of this prosperous
trend. II the people Of this
country and their representa-
tive in Congress needed any
warning that economists are
fallible the Nations economic
development this year has
certainly provided it.
The new administration
has q fresh opportunity to
present to the Nation sound
fiscal policies, without any
such gigantic gamble as the
last administration proposed
and which self-seeking eco
nomic interests in the Ma
ton came to support. The
general interest-the nation
al interest-must be kept SUI
preme. Labor and manage
ment can well afford to put
1.-THE public interest" first in
Federal tax and economic
policy. Failing this, we shall
simply try to redress a bad
situation by fiscal policies Of
doubtful validity. Let us look
at the causes Of our chronic
deficits and deal energeti-
cally with these rather than
seek extravagant poultices
for their unwelcome symp-
toms. We will not only do
better by ourselves but better
meet our worldwide respon-
sibilities not the least Of
which is to demonstrate at
home the fiscal sanity we
preach abroad.
r. Smith Simpson.
4 4 =
A public debt of $315 bill
lion! Have we gone crazy?
Or Is 1t just that we have
been so taken up with the
rage to find miraculous pam
aceas to every human and
social ailment that we have
lost our common sense and
balance? Or Is it primarily
that we ordinary men and
women are so busy with our
own personal matters that
we bury our heads in the
sands when economic COM
mon sense is called for?
Surely the piper must be
paid some day and no
amount of new frontiers
manship or academic theo-
rizing will circumvent the
basic fact that no individual,
no nation, not even the
world can go on indefinitely
living 1t up at a higher level
than income supports with
out eventual financial chaos
crash and collapse. Most
people will suffer, many
ruined financially for life.
And after the day of eco
nomic reckoning we will see
more clearly. The cause and
the blame will be obvious.
But as usual we will try to
place the blame on every
body but ourselves. 1t is our
fault-yours and mine-that
we allow-even encourage
our Government to spend
more than it receives in
revenue. Deficit-spending
ends In financial ruinl
n A HanaiIf0Va