The Economy

Published: 1965
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Pie Chamberlain: On the home front another effect of the war became increasingly evident at year's end. The conflict would require the nation to tighten its belt economically. Some domestic programs would lose money to Vietnam and the President would have to control the economy more rigidly. He did not seek a legislative hold on wages and prices, but he did use his influence and his gigantic copper and aluminum stockpiles to beat back price hikes in those industries.

Overall America’s record prosperity continued however. It seemed well able to absorb the depressing effect of an increase in the cost of credit imposed by the Federal Reserve Board, and the war increasingly became a political issue, Barry Goldwater recalled.

Barry Goldwater: "Remember I was called Trigger-Happy and war monger. When I suggested doing this three years ago."

Pie Chamberlain: On Vietnam and most other matters of substance the United Nations was paralyzed in 1965 by a money dispute. America demanded that Russia, France and other nations pay their share of peace keeping operations in the Congo and Middle East or under Article 19 of the Charter lose their vote in the General Assembly.

They issued deadlocked to the assembly for months and the US finally gave up.

Our Ambassador to the UN Arthur Goldberg said the United States would no longer press the issue, but he warned...

Arthur Goldberg: "We must make clear, crystal clear, that if any member can insist then making an exception to the principle of collective financial responsibility with respect to certain activities of the Organization, the United States reserves the same option to make exceptions if, in our view strong and compelling reasons exist for doing so."

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