75-04-A3
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W. Germany / Inflation[edit]
Transcript[edit]There's one country where instead of just talking about inflation they're really doing something about it. I'll be right back. At a time when many members of Congress don't seem to understand that we wouldn't have a recession today if it hadn't been for unchecked inflation one member, Representative Bill Stuckey of Georgia, Democrat, has been taking a close look at what one of our allies, West Germany, has been doing to fight the problem. In a recent article Congressman Stuckey said, quote, "Of all the nations in the Western world, only Germany is having any form of success in battling inflation." President Ford as well as the new Congress should examine the economic policies which have enabled this one European country to avoid the ravages of inflation while its neighbors teeter on the brink of bankruptcy. He goes on to say, What the German government has done to fight inflation is to slash federal spending. The move was unpopular at first especially among those cabinet ministers who saw their pet projects chopped from the German budget, but in just a few months fiscal soundness paid off. While the rest of the West suffers from double-digit inflation, in Germany, despite the mammoth increases in oil prices, the rate of inflation is projected to be only seven percent this year. Once the German government proved by its actions that it was serious about fighting inflation, the country's citizens responded accordingly. They sharply increase savings and cut consumer borrowing by an amazing 92 percent. I believe our citizens too would be willing soldiers in the battle to fight inflation, if our federal government offered leadership by positive example, Instead of hollow rhetoric." unquote, from Congressman Stuckey. Well I can only add my own Amen. With Western allies such as Italy and Britain in perilous economic condition and with some of our Congressional leaders righteously demanding an increase in the money supply from the Federal Reserve Bank, common sense comments of this kind are refreshing. It's not hard to believe that the American people, if faced with such a positive example from their government, would respond with similar eagerness to solve the problem. You might try closing your eyes for a moment and try to imagine what it would be like if the leaders of our government, executive and legislative, were to sit down and decide to cut that huge 52 billion plus budget deficit to zero, and then ask the people to also tighten their belts. Recent public opinion polls have shown that public confidence in the institutions of government could hardly be lower. A strong dose of statesmanship would go a long way to reversing those polls. Balancing the budget is a little like protecting your virtue, you have to learn to say no. So far Washington hasn't gotten the message. This is Ronald Reagan. Thanks for listening. |
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