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joshwritingAfter a searching two-year look at the economy, the Committee for Economic Development last week came to the conclusion that the U.S. is virtually depression-proof. "Changes since before the war in our financial, budgetary and psychological situation," said the committee's report from top businessmen, have all but done away with the dangers of an oldtime deflationary spiral. While there is no guarantee that there will be no more recessions, the changes do mean that what "might have turned out to be a severe depression would be a moderate recession and what might have been a moderate recession can now be relatively mild."
Such economic stabilizers as the Federal Reserve Board powers to buy Government bonds and make loans to banks (which would give banks needed cash without calling their loans), unemployment compensation and a big backlog of consumer savings "add up to a powerful package." Tax cuts and public works, said C.E.D., should be used only in the event of a serious decline, since "there is a danger of doing too much too soon and causing inflation, as well as a danger of doing too little too late."
The remained of the article is here:
http://www.time.com/time/magazine/article/0,9171,819700,00.html
The date? Mar. 29, 1954
Such economic stabilizers as the Federal Reserve Board powers to buy Government bonds and make loans to banks (which would give banks needed cash without calling their loans), unemployment compensation and a big backlog of consumer savings "add up to a powerful package." Tax cuts and public works, said C.E.D., should be used only in the event of a serious decline, since "there is a danger of doing too much too soon and causing inflation, as well as a danger of doing too little too late."
The remained of the article is here:
http://www.time.com/time/magazine/article/0,9171,819700,00.html
The date? Mar. 29, 1954
