The Economy: Buildup Without Strain


Whatever its cost in human terms, the buildup in Viet Nam will neither stimulate nor strain the American economy to any important extent. These will be the likely effects:

· SPENDING: The rise in defense outlays—a moderate $1 billion to $2 billion now—will not significantly affect the deficit in the federal budget. The deficit for fiscal 1965 was $3.5 billion, is expected to be $4.2 billion in fiscal 1966. Additional step-ups in Viet Nam spending later on may indeed swell the deficit. Even so, the Government does not expect to cut back its spending for construction and welfare...

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!