Suchergebnisse

Our concern in this volume is the financing of democratic government and coping with the problems arising therefrom. The widening influence of government programs and finances is everywhere apparent. Wars and vast social changes have plunged the nations into heavy government spend ing on both the domestic and the international fronts. Pres ently, we are living in an era of social, political, economic, and financial crises. As a result of long-continued and recent pres sures, American governments will spend approximately $260 billion this year on numerous programs. Of this huge sum, the federal government will spend $185 billion, of which over $76 billion may be devoted to national defense. Total tax payments this year are estimated at $218 billion. Taxes in this country and in other countries have long been rising in relation to gross national product (GNP), as government ex penditures have increased faster than population, income, and prices. Inflation has spread over the world. Government defi cits have been an important contributing factor. Now prices are rising at a faster rate in this country. We have not yet found a way to control inflation. The central problem of gov ernment finances is control of government programs, and of expenditures upon them, to make certain that our resources are utilized to best advantage in their allocation to public and private uses. Social progress and economic growth should be promoted without causing mass unemployment and depression and also without incurring fiscal debilitation through inflation.

Contents are grouped under the headings: The expenditures of American government; Government finances and the economy; Taxation and democracy; The citizen and government finances.

Many persons have recently expressed great con cern over the problem of inflation. The President has warned repeatedly against its dangers and a Cabinet Committee has re ported that action is needed to forestall inflation and assure sustained economic growth and social progress. Inflation in volves rising consumer prices under conditions of so-called "full employment." Many explanations of inflation have been offered, but whatever the cause, the consumer bears the brunt of it, and it unequally affects the population. The price level flattened out during the 1957-58 recession and has recently shown signs of advancing toward new peaks. Some persons regard inflation as no real threat in peace time and may even think it is a necessary price of continuing economic growth. It is more difficult to arouse the population to the evils of in flation than it is to the dangers of recession and depression. To halt inflation it is necessary to curb excessive spending by governments, businesses, and consumers until the supply of de sired goods and services has become adequate. It may also be necessary to increase taxes and apply other controls which are unwelcome. Reasonable stability of prices must be accepted as a national goal along with reasonable economic growth and social progress.