wea : See 2h ad ay 8 pe ee Cabinet Minutes, June 3, 1957 - page 4 " necessary changes. Sec. Wilson thought that the labor altuation rather ‘than Federal expenditures was the principal force behind inflation, but Sec. Humphrey felt that Federal expenditures contributed heavily to labor's ability to dermand wage increases. Sec. Wilson cited other contributory factors. The President brought the discussion back from the philosophical level to the practical by emphasizing the need for accomplishing desired objectives by degrees and thus at least stopping the acceleration of Federal spending, fighting legislative increases in appropriations, and establishing desirable trends. Sec. Weeks commented on reductions accepted by the Commerce Department. The President thought the Administration should seek restoration . of the Civil Aeronautice funds which were greatly needed. He suggested that perhaps the user charges for airport facilities could help mors to carry the load. | f° 1° . a Sec. Seaton noted the unapproved projects presently lacluded in the public works bill. The President believed no new starts should be made until the projects were properly cleared. : themselves many-fold and that the mutual security program was the great hops of the United States for the future. Copies to: J Mra. Whitmas (2) Mr. Rabb Mr. Minnich L.A. Minnich, Jr. “hh oe bane the President again expressed his belief that such expenditures repaid , penditures in view of the huge national debt. Otherwise, he feared; =~ snore and more controle would bave to be established so that the United States by degrees would be adopting a different economic system than has been traditional. In this connection, he noted Mr. Khrushchev's reference recently to the basic tenets of Leninism which predicted that capitaliem would fail because of its internal conflicts. He thought that more attention must be paid even to the little things and particularly is military budgete where, he knew so well, money was often forced upon commanders. Following a reference to mutual security by Mr. Hollister, teretyrie sey The President concluded the discussion by reminding the Cabinat that. _ the Administration had to be even more realistic about contrelliag ex-5 . 7 ra on nr . \ mt bah ene, Ste rrp aig fetakgroan * qh 1 tho ¢ Ame Fi i vkdkatalen hn eae;ae * Remeron Acting Sec. Perkins noted various aspects of HEW programs and the political controversies that arise over proposals for reductions in things Like the school lunch program. qo yo: