from an economist
Military expenditure for Vietnam has changed the minds of many who are anticipating a possible recession next year, the First National City Bank said in its September economic letter, The bank noted that military build-up means an increased defence expenditures will be super-imposed on rapidly growing federal welfare programmes and higher business and consumer spending. Thd Administration, the Bank letter said, has so far sharply reduced the deficit in the balance of payments, although Government officials emphasise that the problem is far from being solved,
Overall, the Bank reported, the economy has been growing at a somewhat faster pace than originally estimated. The U.S. Department of Commerce has revised its calculations of Gross National Product and, on a new basis of measurement, estimated the GNP for 1965 at close to $670,000million. Though the remainder of the year only a fraction of the economic push vill be spurred by increased military spending. But next year there may be an increase of from $5,000 million to $10,000 million.