Thinking Ahead.

The article focuses on the impact of military mobilization on the United States economy since the World War II era. Economic expansion is attributed to a depreciating dollar, rather than real growth in gross national product (GNP). The 53% increase in GNP during World War II and government expenditure rising by 450%, along with the subsequent decline in private domestic investment suggest that mobilization expenditures will reduce investment and capital formation, which in turn impacts industrial capacity and future output. Topics include liquid savings in a civilian economy, a balanced budget, and the effect of a cheap money policy on inflation.