Truman's Interest Rate Outlook Clashes With Johnson Analysis
PRESIDENTIAL DEBATEÛÓIn a rare pub-lie statement, former President Truman warned last week that high interest rates could bring about ÛÏa serious depression.Û President Johnson promptly disagreed.</br></br>The argument highlighted a fast-moving ÐÊweek on the economic front, culminating in discussion within the Administration on ending the 7 per cent investment credit to control business expansion.</br></br>President Johnson and former President Truman take a close look at the same thing ÛÓ high interest ratesÛÓbut the conclusions they reach are vastly different.</br></br>How is it possible for two men with a similar political philosophy to come up with such conflicting interpretations? Can both be right?</br></br>Mr. Truman looks at the high interest rate from the long view of history. The former President is, in many respects, a cheap money advocate.