The 1973 Economic Report of the President

As predicted, 1972 was a very good year for the American economy.... The economic performance of 1972 owed much to sound and forceful Government policy.... The general prediction is that 1973 will be another very good year for the American economy. These are the pervasive themes of the 1973 Economic Report. The facts are clear: 1972 was a very good year. Real output increased by about 7: percent. Both inflation and unemployment declined. The economic policies of the administration are also facts.l After a reduction of the percent rate of increase of federal expenditures in Elscal 1970, the rate of increase has increased in each subsequent year; the 11.5 percent increase in fiscal 1973 is the highest rate in any peacetime year since World War II. The 10.2 percent deElcit in Elscal 1973 is the highest rate in any year in this period. The gross and net Elscal stimulus during the Johnson and Nixon administrations are illustrated by Figure 1. Federal expenditures increased at an average rate of 11.9 percent per year during fiscal years 1966-69, and the average deficit was 2.1 percent of total expenditures. Federal expenditures increased at an average rate of 8.8 percent during fiscal years