Page:Economic Reform Policy by Envoy Dodge (Dodge Line).pdf/19

 3. IMMEDIATE RELEASE (Jabors.)

There is no place where inflation takes over quicker and moves faster than in a shortage economy. Productivity is decreased and not increased by government spending. It should be remembered that a government can neither spend nor give away except what it first acquires from someone. Governments only spend other people's money. Wealth must be created before it can be divided.

The Japanese people should demand a balanced bedget [sic] and should then direct their attention to the elimination of excessive expenditures, wastefulness, subsidies, over employment and the general dependence on government instead of individual or group accomplishment. It is these which must be revised to produced later tax reductions.

The Government Budget

The government budget is the financial structure within which the government conducts its business. It is the window through which the people should clearly see what the government intends to do, how it will operate and what its impact on the people and the economy will be in the coming fiscal year.

Heretofe, the budget has not adequately served this purpose. The two principal reasons for this are that the facts have not been made clear by the form of the budget itself and that the discussion and publicity has always centered around only one part of the budget, the general accounts. Another important part of the government operations is represented in the special accounts, which have been largely ignored.

These two parts are closely interrelated. One part could show a balance or even surplus and the other show even a greater deficit. One could show a small deficit and the other add to this much larger deficit. Combined, as they should be, in a consolidated budget the real facts of the government financial