'Spur To Economy'

Press, Volume CIV, Issue 30822, 6 August 1965, Page 11

'Spur To Economy'

/Special Correspondent N.Z.PA.)

WASHINGTON,

August 5. A few weeks ago a few economic Cassandras were shaking their heads and claiming to see dirty weather ahead —some way ahead, but fairly clearly seen. Others, just as expert, took issue. They could see no reason why the 52 months of uninterrupted prosperity should not go on indefinitely. The Cassandras appeared to feel that there must come a check to al) good things, and that, therefore, even the

longest period of prosperity ever known must come to an end though they could not quite figure out what was going to stop it, unless perhaps a so-called act of God. Now, as one economic commentator says, “Cassandras—back to your holes.” The Vietnam conflict is acting as a spur to the economy. Economists are usually reluctant to make predictions for more than a year ahead, but now some of them foresee a strong economy through the rest of this year and throughout 1966 too. The economy is healthy and still moving upward. Defence spending, say the experts, will push it still higher and maybe a little faster.