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Editorial
October 12, 1946
The Daily Alaska Empire
Juneau, Juneau County, Alaska
What is this article about?
Editorial highlights enormity of $41 billion federal spending in current fiscal year by comparing to World War I costs, prosperity-era totals, deficit periods, and depression national income; urges spending cuts for balanced budget to avert inflation.
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Full Text
How Much Is $41,000,000,000?
(New York Times)
During the current fiscal year it is estimated
that spending by the Federal Government will exceed
$41,000,000,000. In general, the public accepts this fact
complacently.
How much is $41,000,000,000? A few comparisons
will help to give some appreciation of what this figure
means. During the three years of our participation
in the First World War total spending aggregated
slightly more than $33,000,000. Aggregate Government
spending during the whole of the ten years of general
prosperity from 1921 to 1930 was about the same as
during the First World War. The five years of deficit
spending from 1935 to 1939 aggregated about $40,000,000,000.
The total national income in the depression
years 1932 and 1933 averaged only slightly in excess of
$41,000,000,000. In other words, the number of dollars
being spent by the Federal Government during the
single current fiscal year will be about the same as the
entire value of all goods and services produced in this
country during those depression years.
This record volume of peacetime spending re-
lects to a major extent the cost of the war and its
aftermath. We have now reached a point at which a
balanced budget has become a national necessity. This
objective can be attained only by reducing total Gov-
Government spending, since taxes are already at levels
which stifle individual and business initiative. But
Government spending will not be cut sharply until
there is a public realization of how much $41,000,000,000
really is, and of the inflationary dangers inherent
in a continuation of such spending.
(New York Times)
During the current fiscal year it is estimated
that spending by the Federal Government will exceed
$41,000,000,000. In general, the public accepts this fact
complacently.
How much is $41,000,000,000? A few comparisons
will help to give some appreciation of what this figure
means. During the three years of our participation
in the First World War total spending aggregated
slightly more than $33,000,000. Aggregate Government
spending during the whole of the ten years of general
prosperity from 1921 to 1930 was about the same as
during the First World War. The five years of deficit
spending from 1935 to 1939 aggregated about $40,000,000,000.
The total national income in the depression
years 1932 and 1933 averaged only slightly in excess of
$41,000,000,000. In other words, the number of dollars
being spent by the Federal Government during the
single current fiscal year will be about the same as the
entire value of all goods and services produced in this
country during those depression years.
This record volume of peacetime spending re-
lects to a major extent the cost of the war and its
aftermath. We have now reached a point at which a
balanced budget has become a national necessity. This
objective can be attained only by reducing total Gov-
Government spending, since taxes are already at levels
which stifle individual and business initiative. But
Government spending will not be cut sharply until
there is a public realization of how much $41,000,000,000
really is, and of the inflationary dangers inherent
in a continuation of such spending.
What sub-type of article is it?
Economic Policy
What keywords are associated?
Federal Spending
Balanced Budget
Inflation Risks
Post War Economy
Government Expenditure
What entities or persons were involved?
Federal Government
Editorial Details
Primary Topic
Magnitude Of Federal Government Spending And Need For Balanced Budget
Stance / Tone
Critical Of Excessive Peacetime Spending, Advocating Reduction To Avoid Inflation
Key Figures
Federal Government
Key Arguments
Current Fiscal Year Spending Exceeds $41,000,000,000
This Amount Surpasses Total U.S. Spending During Three Years Of World War I Participation
It Matches Government Spending Over Ten Years Of Prosperity From 1921 To 1930
It Equals Deficit Spending From 1935 To 1939
It Approximates Total National Income In Depression Years 1932 And 1933
High Spending Reflects War And Aftermath Costs
Balanced Budget Requires Cutting Spending As Taxes Already Stifle Initiative
Public Must Realize The Scale Of $41 Billion To Support Cuts And Recognize Inflationary Dangers