Samuelson Calls for Immediate Federal Move to Halt Recession

Paul A. Samuelson, professor of Economics at M.I.T., last night urged immediate government action to curb the present recession. In so doing, he leveled an attack at the administration, President Eisenhower in particular, for its over-cautious stand in the current crisis.

Speaking informally before the Dunster House Forum, he stated that the economy should "run the risk of a future inflationary upturn" in order to halt the far more dangerous problem of depression. The United States economy, with a potential gross national product of about $450 billion can well support a deficit as high as $10 billion, he asserted.

Although he indicated that there is no sure-fire solution to the "worst post-war recession," Samuelson said that a sizable tax cut and increased governmental expenditures should be attempted. This added governmental spending should be in areas which could use more financing, such as national defense, civil defense, and schools, highways, and post offices, rather than on projects designed for the sole purpose of spending, he added.