The Economy: The Quiet Triumph of Devaluation

THE last time the dollar was devalued —by a stroke of Franklin D. Roosevelt's pen in 1934* —Budget Director Lewis Douglas declared: "This is the end of Western civilization." It was a sign of the economic times last week that, when Richard Nixon announced another dollar devaluation, the predominant reaction throughout Western civilization was one of relief. Richard Kattel, president of The Citizens & Southern Bank of Georgia, expressed the new American mood: "I think devaluation is a good thing. It will make us more competitive overseas. We have swallowed the hardest pill...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

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