Slichter Claims Ike's Success In Budget Cuts Mainly Luck

Sumner H. Slichter, professor of Economics, criticized the economic policies of the present Republican administration in a speech last night before 30 economics majors in the Eliot House Junior-Common Room.

Slichter, who is a governmental economics consultant, described Eisenhower and his economic aides as unqualified to dictate the economic policy of the U.S. He expressed surprise that the proposed cuts in the fiscal budget had not already caused a recession, in view of the loss than two percent unemployment in the country.

He contended that luck in the form of the personal savings habits of the American people, gold withdrawals, and tighter restrictions placed on our exports by foreign countries were major factors in the present success of the Eisenhower budget cuts.

In a long range prediction on U.S. economics, he foresaw a slight recession early next year, followed by a distinct rise in the next seven years.

He attributed this recession to the fact that government cuts in expenditures and increased savings by the people would offset public expenditures on consumer goods and increased activity by state and local governments on proposed civic improvements.

A big factor in the long-range rise, he contended, would be the increase in the number of families by about six million. He explained that this increase would bring about a corresponding increase in the number of housing units necessary, and expected a corresponding rise in the quantity of durable consumer goods such as dishwashers, television sets, refrigerators, automobiles, and electric ranges.

Slichter, Lamont University Professor, is a renowned economic authority and the author of the Massachusetts Slichter Act.