The Burns Thesis A Strange Paradox
THE WAY to slop creeping, insidious, pocket-picking in-j flation is to stop peopleÛÓyou and meÛÓfrom worrying about deflation. Engender confidence, make people feel that jobs ar.e safe, that serious slumps belong to an ancient</br></br>THE WAY to slop creeping, insidious, pocket-picking in-j flation is to stop peopleÛÓyou and meÛÓfrom worrying about deflation. Engender confidence, make people feel that jobs ar.e safe, that serious slumps belong to an ancient era, that the future prosperity of America assures an ever upward march in living standards, and then they will be ready to battle that unseen pickpocketÛÓhigher prices.</br></br>That is the strange, compelling paradox that Dr. Arthur F. Burns, former chairman of President Eisenhower's Council of Economic Advisers, propounds in a readable, well-reasoned series of lectures,</br></br>Prosperity was on a one-way street. Therefore, buy now.-Lay in inventories, purchase common stocks, build new factories, install machinery, buy your own home. Borrow if you must to do so. Tomorrow's prices will be higher than todayÛªs.	i</br></br>It is a well-timed paradox. In his State-of-thc-Union message. President Eisenhower reasserted determination to implement the Employment Act of 1916, to reverse the current down-trend in production and employment, lo exorcise economic gloom and replace it with renewed faith in expansion. By the end of 1958 the restless stirring of new vigor will be coursing through the NationÛªs economic arises.