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By A. Vanoli

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Government Income and Expenditure 17. 1 18. Poor relief (15) 19. Total government expenditures 20. 1 21. 7 22. 0 23. 7 27. 0 IV. Capital Transactions Account 24. Domestic asset formation 25. Foreign lending 26. 4 28. Receipts on capital account V. External Account 29. Exports 31. b. 0 (b) Shipping services 32. Foreign lending 30. b. 33. 1 1 Note on sources o f this table. Most of the items are directly derivable from King’s Natural and Political Observations. See pp. 30-31 for items 2, 4, 14 and 15, and pp.

The main effort concentrates on expenditure, clearly the main concern at the time: what part of total output will be left over for civilian consumption? For this purpose, comparing war expenses to net national income at factor cost is not the most effective procedure. Thus, in March 1942, Gilbert advocated for GNP or total gross expenditure at market prices to be viewed as the main aggregate. As a matter of fact, values expressed at factor cost do not correspond to any idea of expenditure as perceived by the basic economic transactors.

In 1945-1946, the BLS prepares a programming document for 1950. In 1947, budget cuts cancel all work, which will resume in 1948, this time under the aegis of the Air Force. An outstanding effort is made on the 1947 table, with the participation of a very strong working team from the BLS. Nevertheless, the BLS activities in this field will not survive the Korean War. The input-output technique is then suspected to be an instrument of governmental planning. The dominant 24 Chapter 1. From Estimates o f National Income to Construction o f Accounts fo r the Nation position of the USA observed during the 1950 First International Conference on Input-Output Economic Analysis will be lost forever.

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