Economic Problems of Latin America

By Seymour E. Harris | Go to book overview

Chapter V Fiscal Policy and the Budget

by HENRY C. WALLICH

CONSIDERABLE progress has been made by many of the Latin American republics in the use of fiscal policy as a means of moderating economic fluctuations. Under the impact, first of the depression, which cut off foreign loans, and later of the war, which curtailed foreign supplies, the republics have developed new fiscal techniques to finance their budgets and to stabilize their economies. Chief among these is the growing use of corporate and personal income and excess-profits taxes and the improvement of domestic facilities for government borrowing. In spite of these advances, however, an independent fiscal policy still encounters severe limitations in most of Latin America, and it is perhaps not unfair to say that for a long time to come many of the republics will be more dependent upon the fiscal policies of their great trade partners than upon their own.

The main obstacle to a successful policy of stabilizing the economy by fiscal means lies in this heavy dependence upon foreign trade. What investment and savings are to the United States as determinants of national income, exports and imports are to the Latin American republics.1 Exports rather than investment are the chief stimulus to income, while imports, rather than savings, constitute the main

____________________
1
Exports and investment both give rise to additional income, in the form of wages, profits, etc., without causing an equivalent volume of consumable goods to appear on the market to absorb this purchasing power. The secondary repercussions of this excess purchasing power cause income to rise beyond the amount due to the original export or investment. Imports, on the other hand, like savings, unless they lead to additional real investment, cause purchasing power to be diverted from the domestic market and bring about a shrinkage of income.

-117-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Economic Problems of Latin America
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 468

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.