The Economy: Upturn

Most economists, businessmen and congressional experts expressed only varying degrees of doubt last January when Gardner Ackley and the Council of Economic Advisers peered at their G.N.P. projections and predicted that the economy would heat up again so much by mid-1967 that a deflationary 6% surtax on personal and corporate income taxes would be necessary. At that time, with many economic indicators turning downward, there seemed to be little reason for such a forecast. Last week, however, Ackley & Co. had visible evidence to support their vision.

Policy & Performance. In recent weeks the indicators have been moving unmistakably upward....