THE ECONOMY
By the reckoning of most economists, the overheated U.S. economy should have cooled off abruptly under the double effect of mid-July's income tax surcharge and a cut in federal spending. There was even concern that the restraints would move the economy toward a recession. Instead, the effect has turned out to be so slight as to renew old worries about inflation.
Last week Federal Reserve Board Chairman William McChesney Martin, using an analogy of which he is fond, likened the economy to an automobile that has merely cut its speed from 90 m.p.h. to 70—still much too fast for...
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