Johnson's 1964 Economic Forecast Gets Praise From Professors Here

The economic predictions included in the new federal budget have won the qualified approval of at least two Harvard economists.

Otto Eckstein, professor of Economics, last night termed the budget "realistic." He said that the estimated 5 per cent growth in Gross National Product should reduce the unemployment rate among members of the labor force to about 5 per cent. The current level is over 5 per cent.

John V. Lintner, Jr., professor of Business Administration, said Wednesday that the Administration's estimate of a $623 billion gross national product for the fiscal year 1964 is probably quite accurate, assuming that the proposed tax cut is enacted. He said that he had arrived at a similar figure as early as last October.

$30 Billion to GNP

Eckstein called the tax cut "the most important measure of economic policy to be proposed since World War II." The Council of Economic Advisors estimates that the measure should add $30 billion anually to GNP within two or three years.

Eckstein said that the incidence of the new tax among different income levels would be far from ideal, but that it "reflects the constellation of political power in congress." He said that the bill would provide substantial tax relief for both the very poor and the very rich.

Both Eckstein and John Kenneth Galbraith. Paul M Warburg Professor of Economies, agreed on the wisdom of heavy expenditures for space exploration. Galbraith said Wednesday that he was "in favor of turning the arms race into an engineering competition."

The U.S. is wealthy enought to undertake such projects and also provide for necessary domestic programs such as schools, hospitals, housing, and personal welfare, he said. Galbraith refused to comment on other aspects of budgetary policy.