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Show Democrat Council Chairman Flays Report of Nixon Unit been the goal of every good government gov-ernment at least since the rise of Rome. President Eisenhower ran not once but twice on the platform of defending the dollar. dol-lar. Now Congress is asked to give 'highest priority' to endorsing endors-ing what wise governments have always sought and what President Presi-dent Eisenhower promised in dozens of speeches. It is as sensible sen-sible to suppose that the government govern-ment needs a Congressional declaration dec-laration in favor of virtue in order to fight crime or one on war in order to seak peace. The resolution will accomplish precisely pre-cisely nothing either for good or evil. "Next, moving upward from the banal to the myopic, the committee urges that the budget be balanced by curbing expenditures expen-ditures and that the national debt be reduced, which would require that we run a surplus. There is implied criticism of states and localities for increasing increas-ing their outlays. Nothing what ever is said of urgent public John Kenneth Galbraith of the Advisory Committee on Economic Eco-nomic Policy of hte Democratic Advisory Council, commented "on the report of the Cabinet Committee on Price Stability for Economic Growth, which was relased on June 29. The Cabinet Committee was under chairmanship chairman-ship of Vice President Nixon. Dr. Galbraith's statement follows: , "I hope that the report of the special Cabinet Committee on Price Stability for Economic Growth will have the widest possible pos-sible audience. The Committee was under the chairmanship of Vice President Nixon and included in-cluded the Secretary of Treasury, Treas-ury, the Secretary ; of Agriculture, Agricul-ture, the Secretary of Labor, the Posmtaster General, the Chairman Chair-man of the Council of Economic Advisers and a special Executive Vice Chairman. "Everyone who reads the result re-sult of this formidable collaboration collabora-tion will have a memorable insight in-sight into Republican economic policy. According to press accounts, ac-counts, the document was draft- ed by Mr. Nixon with the aid of his special vice chairman and reviewed by the Cabinet officers. offi-cers. One hopes thta Mr. Nixon has recovered from the strain and the Cabinet members from the excitement. "Three remedies for inflation are proposed. First, the Congress is asked to give 'highest priority' prior-ity' to passing a declaration that 'reasonable price stability' is a goal of federal economic policy. No supporting legislation is now asked. Just a declaration. We have long known that it is the Eisenhower modern Republican doctrine that words are a precise pre-cise substitute for deeds. This request seeks to put that doctrine doc-trine in legal form. "In fact, price stability and the defense of the integrity and soundness of the currency have needs for education, defense, public health, housing, urban re-devolpment re-devolpment which any wise, responsible ' leader must recognize recog-nize and which the administration administra-tion should itself long ago have recognized. Such an attack on public expenditures is one-sided and could be seriously damaging to the national welfare. "Given full employment and healthy economic growth, we should budget for an income that covers outgo and vice versa. But even then the need for services must be balanced against 'the cost. One cannot decide automatically auto-matically against the services. It should be added that a balanced bal-anced budget under present circumstances cir-cumstances is not assurance that there will be no inflation. As the committee itself concedes, other factors are capable of causing continued price increases. "Finally and predictably, the committee asks an increase in interest in-terest rates. This is the one price that can always be increased to all kind of reputable applause.1 In Republican economic policy, adjusting interest rates seems something of a miracle drug. It is good for almost anything that is wrong. "In fact, few things are such a proven failure as what is called monetary policy. From early in 1956 until July of last year prices went up month by month without a preciptible break. All the while the Eisenhower Administration Ad-ministration was pursuing an active ac-tive tight money policy. The price increase came to an end only after the recession was well advanced. This was a remedy that was worse than the disease. Yet the myth that this is a viable, vi-able, useful, as well as highly sophisticated policy still persists. Where monetary policy is involved, in-volved, nothing succeeds like failure. . .. - - |