Deficits and Depressions

Deficits and Depressions

Deficits and Depressions

Deficits and Depressions

Excerpt

This book is to be published at a time when the influence of a deficit on a depression and a recovery is being dramatically tested in this country. The experience of the next few years may do much to modify the weights given to the various factors determining the effects of a deficit policy and may indicate the importance of variable elements neglected here. But no conceivable delay in publication would permit one to have the unattainable assurance that all possible developments in our dynamic world of fact and theory had been foreseen.

The subject covered deals with but one aspect of the recovery problem, and it is not pretended that the budget policy is the critical factor in our economic picture. The basic need is to secure a revival of balanced spending and production, with the flows of money directed to those things for which we have productive facilities, and the flow of goods taking the form of those things for which there is a continuing effective demand. If an approximation to stability is to be maintained, the amounts and directions of these flows must not change more rapidly than our rather inflexible economic structure can be adjusted to meet the new conditions. Among the many factors influencing economic balance, the rôle of the budget policy is alone considered in this book.

It is difficult to recall the many sources of one's ideas . . .

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