Debate Over Deficit
Current Projections of Record Deficits
As election year 1984 opens, the long-awaited recovery from the worst recession in 40 years continues to pull much of the U.S. economy out of the doldrums. Recent government statistics bring good news of falling unemployment, increasing industrial production and rising retail sales—without the burst of inflation that has stunted recent recoveries.
President Reagan, apparently poised to seek a second term in office,1 points to these statistics as evidence that his controversial supply-side economic policy has succeeded in bringing about sustained, non-inflationary growth. But many economists, some within the administration itself, predict that the recovery will be stopped in its tracks unless drastic measures are taken to reduce the federal budget deficit. That deficit totaled $195 billion in fiscal ...