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s war induced fiscal mismanagement introduced inflation and resource distortion into the economy In 1969 and 1970 misguided efforts to restrain inflation by reducing real income growth together with efforts...all too effective in halting economic growth and increasing unemployment they did little to slow inflation In August 1971 the Administration suddenly and belatedly made public their recognition of the disastrous...creating measures The New Economic Policy is equally inadequate with respect to inflation control Given the stubbornness of inflation the 3 month price wage freeze was probably necessary and the freeze could...

wage and price controls including the difficulty of effective enforcement the suppression of price inflation rather than its elimination and the production of distortions in resource allocation 7 The administration...ECONOMIC REPORT OF THE PRESIDENT I INTRODUCTION During the past year the economy suffered the Aorst inflation in 19 years Interest rates reached the highest level on record Real growth slowed The President...mid 1969 will be approx imately 80 billion in today s prices a tragic price to pay for fighting inflation in view of massive needs in our social sector We face a very real danger of higher unemployment...

service employment 35 Unemployment statistics 36 Chapter VI Price wage policies for the future 37 Inflation and controls during 1973 37 The price outlook 38 The wage outlook 39 Future policies 40 The need...consideration of their im pact on the overall level of output and employment and on the rate of inflation The Joint Economic Committee has been reportingto the Congress on such matters annually since 1947...ferred way to insure this independence is to let exchange rates float Second floating helps contain inflation United States payments deficits during the past decade that were financed through the accumulation...

rising unemployment posed a serious threat to national growth and stability In its concern with inflation the Administration has consistently ignored this threat Now belatedly it is proposing inadequate...is virtually no disagreement among economists as to the need for strong stimulus to the economy Inflation fears are no longer cred ible reasons for inadequate counter recession policies The unprece dented...percent and that average unemployment for the year will be 8 1 percent They forecast a rate of inflation of 11 3 percent as measured by the Consumer Price Index 6 The Administration s expectations are...

1977 24 Quarterly pattern 25 Outlook by GNP component 25 Outlook for unemployment 28 Outlook for inflation 28 Outlook for 1978 29 IV The goals of economic policy 30 Goals for 1977 and 1978 30 Medium term...Budget totals for 1978 43 The full employment budget 44 Monetary policy 44 Policies to counter inflation 46 Inflation impact statements 47 Monitoring private wage and price setting 48 Coordinating economic policy...growth of 6 percent for 1977 a reduction in the unemployment rate to 6 5 percent and an abatement of inflation by the end of the calendar year remain desirable goals 2 If adopted this year a fiscal stimulus...

sharing 62 Chapter V Defense and national security 65 Controlling defense spending 65 Defense and inflation 69 The national security budget 70 Supplementary views of Chairman Patman 74 Supplementary views...indication that the Administration is coping effectively with inflation The President continues to predict that the overall rate of inflation will be 21 2 percent by year end but knowledgeable observers...efficient and thereby make possible over time the achievement of genuinely full employment without inflation 9 These and related questions of domestic economic policy are dis cussed in the following pages...

this create jobs productivity and income not inflation The President s Economic Report is a blueprint for re cession level unemployment and high inflation for several years ahead The President s 1977 budget...quarter of 1977 remaining close to 8 percent Under those policies the Committee estimates that the inflation rate would fall by only one half percentage point and would remain above 6 percent and that production...points from its level in the fourth quarter of 1975 to a level of 6 percent by the end of 1977 Inflation would decline by 2 8 percentage points to 4 percent and production would rise by 14 percent The...

for five minutes Senator Heinrich For every time I hear about HSAs I hear ten times about premium inflation obviously and premiums are projected to increase by about 15 percent next year at least accord ing...unfortunately in the current Adminis tration there has been an interpretation that this is all just benefit inflation that s driving the premium costs and therefore if we re VerDate Sep 11 2014 10 50 Sep 18 2018 Jkt...by smart health economists looking for ways to alleviate the nation s excessive health care cost inflation which back then as now was ravaging public and private budgets One of the first serious legislative...

for five minutes Senator Heinrich For every time I hear about HSAs I hear ten times about premium inflation obviously and premiums are projected to increase by about 15 percent next year at least accord ing...unfortunately in the current Adminis tration there has been an interpretation that this is all just benefit inflation that s driving the premium costs and therefore if we re VerDate Sep 11 2014 10 50 Sep 18 2018 Jkt...by smart health economists looking for ways to alleviate the nation s excessive health care cost inflation which back then as now was ravaging public and private budgets One of the first serious legislative...

exist in the first place that is aggregate cost growth in key health sectors above the rate of inflation and population growth as illustrated by the chart below Growth in the 3 sectors identified above...