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I do not quarrel with the contention that those with fixed incomes should, of course, be compelled to bear their share of the mobilization program. But the difficulty with an inflationary program is that, after the period of inflation is over, those people who are not in the class that can enter productive occupations-the older persons-are not going to be able to reestablish their money incomes at a level corresponding to the higher price level. So the inflationary program not only compels them to bear their share of the burden while it continues but also condemns them to a lower standard of liVing for the remainder of their days.

And at least some analysis of the·· skills to be drafted into the armed services. Then we can tum to our basic effort, that is, to channel those particular materials and skills into the military service, writh full realization, however, that compromises even on military estimates of so-called requirements will have to meet civilian demands to deal with public psychology and hUlnan emotions and to maintain foreign alliances and strengthen our allies. These compromises ,,,ill not all be the same, and I do not see how they can be forecast in general terms.

So the inflationary program not only compels them to bear their share of the burden while it continues but also condemns them to a lower standard of liVing for the remainder of their days. On that score, I think emphatically that we should favor stable prices, even though on the other two scores we cannot say that the answer is unequivocal. does this mean with respect to policy? It means, I think, that the federal budget should be substantially balanced. I am not going to enter into the question as to whether we should include some noninflationary borrowing here.

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