A PRIMER ON GOVERNMENT SPENDING

The contributions in background these authors bring to an analysis of the case for government spending give this Primer its authenticity. Dr. Heilbroner is well known for his books on economic subjects, the latest being The Great Ascent (1963); Mr. Bernstein is not only a trained economist but a successful businessman and experienced teacher...In writing this book their ""primary concern has been to demonstrate that deficit spending can be both desirable and stimulating to an economy burdened with unused labor and resources"". And a very cogent argument they present. They see the challenge as to whether Americans are to control their economy or be controlled by it. The great danger lios in fear, confusion, nostalgia for the past. To lay these fears, clarify the confusion, prove that the past is irrecoverable, they present a careful analysis of the likenesses and differences between consumer and government financing. When consumers save they fail to buy- and a spender must be found:- business, government or both. They discuss the steps by which to create more demand, to increase the national output, to raise employment, (claiming- and supporting the claim- that government can spend itself into prosperity); the role of a tax cut; of achieving economic growth; of the government budget; of raising demand by borrowing savings and spending to create real wealth. Debt can be viewed as public wealth- an asset. They discuss too the real meaning of inflation -- ultimately a matter of supply and demand. And they conclude that judicious government spending and bold deficit financing helps avoid a threat to financial solvency. Ten other countries have a heavier tax load than the U.S. and have shown greater economic growth. Are we doing enough? A controversial book, but carefully read it should allay many doubts.