The task of economic policy is to create a prosperous America. The unfinished task of prosperous Americans is to build a Great Society. Our accomplishments have been many; these tasks remain unfinished: > to achieve full employment without inflation; > to restore external equilibrium and defend the dollar; > to enhance the efficiency and flexibility of our private and public economies; > to widen the benefits of prosperity; > to improve the quality of American life -Lyndon B. Johnson Former President Lyndon felt that the most important first step in the war against poverty is

to achieve full employment without inflation

to achieve full employment without inflation. This means creating enough job opportunities for all individuals who are able and willing to work, while also ensuring that inflation rates are kept under control.

To understand why President Johnson deemed this as the most important first step in the war against poverty, it is helpful to consider the relationship between employment and poverty. Full employment refers to a situation where everyone who wants to work is able to find employment. When more people are employed, it leads to higher incomes and reduced poverty rates. By creating job opportunities, individuals have the means to support themselves and their families, reducing their reliance on social support programs.

However, achieving full employment must also be balanced with the need to control inflation. Inflation refers to the general increase in prices of goods and services over time. When inflation rates rise too high, it erodes the purchasing power of individuals' incomes, making it more difficult for people to afford basic necessities. Therefore, it is important to achieve full employment without causing inflation to spiral out of control.

To address this issue, economic policy measures such as fiscal and monetary policies can be implemented. Fiscal policy involves government spending and taxation decisions to stimulate economic growth and job creation. Monetary policy involves actions taken by the central bank, such as adjusting interest rates and managing the money supply, to control inflation.

By prioritizing full employment without inflation, President Johnson was emphasizing the importance of creating an economy that provides opportunities for all Americans to participate in and benefit from its prosperity. This is seen as a key component in building a Great Society where the benefits of economic growth and opportunity are widely shared, improving the quality of life for all citizens.