mr. calabria -- i hope i pronounced his name correctly -- of the cato institute. commented that paul economist the former professor at m.i.t., i believe, predicted that cutting spending after 1946 by 40% would cause another recession or depression. instead, the economy grew 10%. i found that interesting. i wonder if mr. calabria could tell us if he knows that -- whether or not professor simmons and attempted to explain his error. in terms ofas it the decrease in military spending at the end of the war to -- world war ii? fromnt-up consumer demand prewar rationing. i would be interested in mr. calabria's comments. guest: certainly, most of that decline was due to military spending. obviously, i was not there at the time, despite a couple of gray hairs. a lot of concern at the time was you would have a lot of troops come home, there would not be jobs, there would not be sufficient demand. there was even concerns about the price and wage control. i would certainly say, not picking on particularly president -- professor samuelson. it was a real worry the economy would

mr. calabria of the cato institute. he commented that paul samuelsson, the noted former economist and professor at m.i.t., i believe, predicted that cutting spending in 1946 by 40% would cause another recession or depression. instead, the economy grew by 10%. i found that comment very interesting. i was wondering if mr. calabria if he knows, and i assume he does, what professor samuel attempted to explain his error. and if so, was it in terms of the decrease in military spending at the end of the war, world war ii, or pent up consumer demand. i would be very interesting in your comments in that regard. >> go ahead. >> thank you, george. that was military spending and demobilization. obviously i was not there at the time. that's fair to say, despite a couple of gray hairs. there wouldn't be jobs. there wouldn't be sufficient demand. there was rationing. that was a widely held view in the economics recession. and there was concern the economy would not be able to handle all the soldiers coming home. in that time there was