ECONOMISTS QUESTION INCREASED SPENDING

Five of the seven authors of the recently published "Economic Program for American Democracy" defended their thesis of increased government expenditures in the Dunster House Forum last night while a group of University economists commented on different phases of it.

Chief objections raised to the theory were rising prices and wages with recovery and the burden of taxation. Defending the spending policy, Dr. Richard V. Gilbert '23, instructor in Economics, blasted the danger of increased taxation, holding it was more than compensated by increased income, and held that wages and prices could be controlled by a sufficiently flexible system.

Leading the group who commented on Dr. Gilbert's premise was Alvin H. Hansen, Lucius N. Littauer Professor of Economics in the School of Public Administration. He stressed the necessity of analysis of the actual situation and pointed out the practical dangers of a large debt.

Wassily W. Leontief, assistant professor of Economics and Dr. Machlup of Tufts then brought the wage increase problem to the fore and questioned the ease with which taxes could support the increased interest rates.