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Additional info for Designing U.S. Economic Policy: An Anaylytical Biography of Leon H. Keyserling
The position of chairmanship for Keyserling was a controversial decision. Although Keyserling had studied economics at Columbia University (including all doctoral graduate economics courses except his dissertation) and had been associated at Columbia closely with Rexford Tugwell, he did not have a doctorate in economics. He had helped in the writing of some of Tugwell’s works; had been an attorney in the Agricultural Adjustment Administration; a general counsel and, later, Acting Administrator of the United States Housing Authority; and legislative assistant for Senator Wagner (D, New York), a powerful Senator and close ally of Franklin Roosevelt.
Despite the Korean War and its utilization of resources that otherwise would have gone into domestic production for domestic consumption, Keyserling, now as chairman of the Council, still stressed growth, rather than domestic retrenchment, to provide the goods for the military and for the domestic economy. The report in several places indicated this emphasis on growth. The expansion of our national output, with selective emphasis upon vital lines of production, will help to ease the immediate burden of our enlarged defense objectives.
16). Leon H. Keyserling and the CEA 39 The period from 1946 to mid-1950 were times of peace. However, on June 25, 1950, President Truman sent the Air Force and the Navy to Korea in response to the North Korean invasion of South Korea. On June 30, the President authorized the use of ground and air attacks against North Korea. The Korean War (June 1950 to July 1953) had begun. Economic policy was forced to change. In his economic address to Congress, the President indicated that military funds and output must increase, especially the correct forms of output.