Page:Pentagon-Papers-Part V. B. 3. a.djvu/256

Declassified per Executive Order 13526, Section 3.3
NND Project Number: NND 63316. By: NWD Date: 2011

 

TOP SECRET
SECURITY INFORMATION

 

Defense Against the Threat to the U. S. Economy and Institutions

40. a. A strong, healthy and expanding U. S. economy is essential to the security and stability of the free world. In the interest of both the United States and its allies, it is vital that the support of defense expenditures should not seriously impair the basic soundness of the U. S. economy by undermining incentives or by inflation.

b. The United States must, however, meet the necessary costs of the policies essential for its security. The actual level of such costs cannot be estimated until further study, but should be kept to the minimum consistent with the carrying out of these policies.

c. Barring basic change in the world situation, the Federal Government should continue to make a determined effort to bring its total annual expenditures into balance, or into substantial balance with its total annul revenues and should maintain over-all credit and fiscal policies designed to assist in stabilizing the economy.

d. Every effort should be made to eliminate waste, duplication, and unnecessary overhead in the Federal Government, and to minimize Federal expenditures for programs that are not essential to the national security.

e. The United States should seek to maintain a higher and expanding rate of economic activity at relatively stable price levels.

f. The economic potential of private enterprise should be maximized by minimizing governmental controls and regulations, and by encouraging private enterprise to develop natural and technological resources (e.g. nuclear power).

41. To support the necessarily heavy burdens for national security, the morale of the citizens of the United States must be based both on responsibility and freedom for the individual. The dangers from Soviet subversion and espionage require strong and effective