Word: deficit
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Dates: during 1960-1969
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...Administration wanted them, if the farm bill was passed and had a chance to cut costs. It was if, if, if-and hardly any of the ifs turned out. As a result, the Bureau of the Budget last week announced that the U.S. will run up a 1962-63 deficit of $7.8 billion-and maybe more. It will be the nation's third consecutive deficit, and the second biggest in peacetime history-next only to Eisenhower's $12.4 billion deficit...
Those losses alone were far more than enough to account for the deficit-but they were not alone. The Government's 1962 tax bill to give greater investment credit to industry wound up costing $1 billion more than expected because Congress failed to pass revenue measures to offset it. The revision of depreciation allowances is now reckoned to cost the Treasury another $1 billion in 1962-63. Congress also failed to enact the higher postal rates on which the Administration counted to garner about $500 million in revenue, and its repudiation of the farm program meant bigger Government outlays...
Plodding Progress. The deficit exists because U.S. business and Government spend, lend and invest more abroad than they bring home. As the deficits mount, gold flows out of the U.S. The gold supply has diminished by a shocking $1.3 billion in the past twelve months, is down to a 23-year low of $15.9 billion. At the same time, though the U.S. continues to export more than it imports, the trade surplus has narrowed, from $5.3 billion last year to an estimated $4.4 billion so far this year. Imports increased 13% in 1962's first three quarters, the highest...
Still, the U.S. is making some progress toward long-run balance. The deficit caused by large military spending is down from the recent annual average of $2.6 billion to $1.7 billion-not so much because the U.S. is spending less overseas, but because it has induced West Germany to buy some $600 million worth of its defense equipment in the U.S. In addition, about two-thirds of the U.S. foreign aid grants are now "tied" to a requirement that they be spent on U.S. goods. The direct investments of U.S. business abroad are down from $1.6 billion...
...this appears, these facts remain: there is a balance of payments gap, it has widened recently, and it is destined to widen further in the current quarter. European banks habitually build up their dollar accounts as "window dressing" for year-end bookkeeping, and this expands the U.S. deficit. Moreover, the U.S. has just about reached the limit in "tying" foreign aid funds to U.S. purchases, and it can hardly jack up interest rates much more during a period of economic sluggishness...