Public Policy: Caught Off Balance

A year ago, in a moment of New Year's euphoria, President Kennedy predicted that the chronic deficit in the U.S. balance of payments could be cut from $2.5 billion in 1961 to $1.5 billion in 1962—and might well be eliminated altogether in 1963. Last week the Administration ruefully faced the realization that the nation will show a payments deficit of at least $1.9 billion for 1962, and that there is no chance for balance until 1964 at the earliest.

The end of the U.S. gold outflow may even be farther away than that,...

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!