A Harvard economist has attacked President Johnson's recent measures designed to cut down the United States deficit in the balance of payments as reminiscent of Hitlerian economics.
In a letter to the ew York Times printed yesterday Gottfried Haberler, Galen L. Stone professor of International Trade said that the measures are "a further big step into the mass of specific controls that used to be called the Schachtian system, named after its inventor, the Nazi economic wizard Hjalmar Schacht."
According to Haberler, Schacht introduced a number of measures, such as a tax on travel in Austria, in order to avoid devaluing the mark. Devaluation would have meant a loss of political prestige, and was therefore considered an unacceptable alternative.
"To prevent tourists from going outside the Western Hemisphere is ... a shocking infringement on individual rights," Haberler says. He also opposes the measures because they would restrict international trade, and, by discriminating against Europe, "add a strong touch of economic warfare."
The basic problem, Haberler argues, is that the dollar is inflated beyond its real value, "These measures add up to disguised devaluation," he said in an interview yesterday. Haberler urges that "an open devaluation, preferably in the form of a floating (exchange) rate, would be far better than are disguised in a multitude of haphazard, discriminatory taxes and controls."
Haberler also warned that the measures presently proposed would prove insufficient because Johnson is still pumping money into the economy by initiating new programs. "(This) batch is only a beginning," he said.
Read more in News
The WeatherRecommended Articles
-
Haberler Favors New Trade ProposalsThe tariff-reduction authority President Kennedy requested in his State of the Union message is receiving wide support among members of
-
New Chair FilledGottfried Haberler, professor of Economics and an authority on international trade and business cycles, has been named the first Galen
-
Ec Professors Challenge De Gaulle's Golden RuleDeGaulle's "fancy gamesmanship" and the devaluation of the English pound pose no serious threat to the stability of the American
-
Final Announcement Made of Instructors for Ec CoursesThe Economics Department has announced the following changes in instruction of their courses: Economics 11b will be offered by Professor
-
POST-WAR EFFECTS TOPIC AT DUNSTEREnlivened by clear-cut disagreement between the speakers whose views were Keynesian in essence, and those who opposed the views of
-
Haberler SpeaksGottfried Haberler, professor of Economics and tutor in the department of Economics, will speak on "The Possibility and Desirability of