We often lose sight of the underlying strength of our economy and its recuperative powers. It is very easy to be excessively gloomy, and I think that is not a warranted view.

Mr. MILLER. During the fifties it seemed that if the word "defense" was attached to a bill it moved through Congress. We even had an ducation bill, the National Defense Education Act, about that time that zoomed right through. During the fifties defense, during the sixties civil rights, during the seventies education, and now it seems to be emergency.

That is why I am wondering about all of the spending bills we are pproving to help the economy which seem to have the word "emerhey" attached. Once it is attached the bill goes right on through. am wondering whether we are going overboard by that spending and oking at some of the bad side, and then create that problem of higher terest rates and higher inflation. If we are, then Congress should ow down on some of those spending programs.

Mr. GREENSPAN. I most certainly share your concern, Mr. Miller. Mr. MILLER. Thank you.

Mr. STEED. Mr. Chairman, I want to thank you for your appearance, ir assistance to us, your information, and the discussions you perted us to have with you. On behalf of the committee I thank you y much.

Mr. GREENSPAN. Thank you very much, Mr. Chairman.

Mr. STEED. The justifications will be inserted in the record at this

int.

-4

COUNCIL OF ECONOMIC ADVISERS

BUDGET REQUEST FOR FISCAL YEAR 1976

The Council of Economic Advisers respectfully requests

an appropriation of $1,617,000 for fiscal year 1976.

In

the judgment of the Council, this 18 the minimum appropriation required by the Council to carry out adequately its responsibilities to the President under the Employment Act

of 1946.

It is request represents an increase of $74,000 over the Council's fiscal year 1975 appropriation of $1,543,000 its continuing activities. Included in the Council's total appropriation of $1,600,000 for fiscal 1975 was the sum of $57,000 to support the activities of the Advisory Committee

for

on

the Economic Role of Women. The Advisory Committee has terminated, and по request for funding is included in

been

The Council is requesting no increase in its currently authorized 46 permanent positions. However, this submission reflects the transfer of two positions and $15,000 from the graded series to the ungraded series under Permanent Positions, and the transfer of $51,000 from Positions Other Than Permanent to Permanent Positions. This change is proposed in order to accommodate two senior economist positions covering the areas of economic forecasting and energy analysis and policy.

It is the Council's wish to expand in the area of

recasting economic trends and developments, both in the rice and production areas. This would be against the general Background of a forecast apparatus in the Council which is

longer adequate to the tasks of analyzing and forecasting economic developments to the extent required by the Council's responsibilities of advising on economic policy.

In view of the high priority of the energy problem,

The Council will be involved in analyses and studies in an attempt to contribute to a solution of the current and longer er problems.

The activities of the Council are set forth in the

ployment Act of 1946. They include the following:

1. To assist and advise the President in the preparation

the Economic Report;

2. To gather and analyze timely information concerning Current and prospective economic developments and report regularly to the President on the relationship of these developments to the achievement of maximum employment, production and purchasing power as prescribed in the Act;

3. To appraise and report to the President on the

extent to which the various programs and activities of the Federal Government contribute to the carrying out of the purposes of the Act;

4. To develop and recommend to the President national economic policies to foster and promote competitive enterprise, LO avoid economic fluctuations, and to maintain maximum employment, production and purchasing power; and

03 Federal

To make such studies, reports and recommendations economic policy and legislation as the President

mav request.

out these duties, the Council consults regularly with other Government agencies and departments, as well as the Congress, and representatives of business,

labor, consumers, agriculture, State and local governments, and the economic profession. In addition, the Members and staff of the Council are frequently called upon to serve on interagency advisory groups in a wide variety of fields.

Included in the Council's staff is a statistical

unit which is responsible for the monthly publication

Economic Indicators and the preparation of the statistical

Baterial in the annual Economic Report of the President, as vell as for providing continuous statistical assistance to The Council and professional staff.