Business: The Policy of Self-Fulfilling Prophecy

IN his budget and economic messages, President Nixon has formally embraced what his Eisenhower Administration colleague, the late Treasury Secretary George Humphrey, disparagingly called a "spend yourself rich" philosophy. The strategy is to spend nearly every cent that present U.S. tax rates would bring in from an ideal, fully employed economy—far more than the Government has any chance of collecting from the underemployed economy that now exists. The hope is that the flow of dollars from Washington will sharply lift the economy out of the 1970 recession and put at least 1,000,000 jobless Americans back to work.

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