The Economic Report Pg- A18  
The dominant theme of both the President's Economic Report and the annual report of his Council of Economic Advisers is succinctly summarized in the following passage:	"The	past	five</br></br>The dominant theme of both the President's Economic Report and the annual report of his Council of Economic Advisers is succinctly summarized in the following passage:	"The	past	five years have demonstrated that the economy can operate free of recurrent recession. Now the United States is entering a period that will test whether sustained full utilization of our human and physical resources is possible without the injustice, dislocation, and decline in competitive position that accompany inflation.Û</br></br>President Johnson asked whether the growth of plant capacity and the supply of skilled labor will accommodate the increased demand for gpods and services without a destructive wage-price spiral. His ÛÏconfidentÛ answer to each of five questions that he raised was ÛÏYES." But mere confidence is not sufficient. That is why the Council devoted a searching chapter to "The Prospects for Cost-Price Stability."</br></br>What is disquieting about the Administration's fiscal program for 1966-67 is that it proposes to raise tax revenues by only $6 billion at a time when the demand for goods and services is approaching the limit of the capacity to produce them.</br></br>In 1964-65 the Gross National Product increased by S47 billion (from $628.7 to $675.6 billion), a gain that clearly outpaced the expectations of the Council. For 1966 the Administration is basing its fiscal estimates on a $722 billion GNP. plus or minus $5 billion. But if it is assumed that tins forecast will also understate the GNP growth by a percentage of error roughly equivalent to last year's, a GNP of $730 billion for 1966 is not implausible. It would imply a $54 billion gain or an annual growth rate of 8 per cent.