THE ECONOMY
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 outlaysa moderate $1 billion to $2 billion nowwill 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...
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