inflation: Hayek on Meet the Press in 1975

You can read the transcript here.  Or listen to the audio.  The interview is from June 22, 1975.

Quotable:

Levine:  “Dr. Von Hayek, the general belief among administration economists now is that we are near or at the bottom of the recession that we’ve been going through. Do I understand you to be saying that we should be willing to experience a continuation of this period of low economic activity for another year or so rather than to take the kind of efforts that the government has taken, of a tax cut in order to stimulate the economy?”

Hayek:  “There’s a matter of a tax cut again aims at increasing Aggregate Demand and the present difficulty is not due to a deficiency of Aggregate Demand. It is due to the fact that without continued inflation, you cannot maintain the people in the new employments in which they have been drawn by the inflation of the past.”

Levine:  “I would like to pursue the first part of my question – Do you see a necessity, in order to avoid a resurgence of inflation, that the government undertake policies which will continue us at the present low level of economic activity for a period of a year or more?”

Hayek:  “Well not necessarily at the low level, but we should not produce more than a very slow recovery. I would like to add, the slower the recovery is, the better are the chances that it will last.”

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One Response to inflation: Hayek on Meet the Press in 1975

  1. I’ve been included in taxations for longer then I care to admit, both on the private side (all my employed life history!!) and from a legal point of view since satisfying the bar and following up on tax law. I’ve put up a lot of advice and rectified a lot of wrongs, and I must say that what you’ve posted makes impeccable sense. Please continue the good work – the more people know the better they’ll be equipped to comprehend with the tax man, and that’s what it’s all about.

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