The Age of Magic Money
Can Endless Spending Prevent Economic Calamity?
Despite the recent waves of tourists who have returned with tales of the beauties and comforts of Lisbon and Estoril, and despite new Luso-American cultural and commercial links, misunderstanding and ignorance characterize much American thought about Portugal. Some observers still believe that this small nation lives entirely in the past. But the fact is that significant changes are taking place there.
In September 1968, Dr. António de Oliveira Salazar, aged 79 and premier for more than 36 years, suffered a severe stroke. As Salazar hovered close to death, the President of the Republic, following the provisions of the Constitution, appointed as new premier, Dr. Marcello Caetano, aged 62, former Professor of Law and Political Science at Lisbon University. His rise to the highest political post in the Portuguese government provoked speculation that perhaps his appointment represented more than just a change in the authoritarian guard. Indeed, since taking office, Caetano has initiated more