Post-election spending debate
Fears Arising Over Federal Budgerary Deficits
The Federal government faces three choices as the budget for fiscal year 1974 is being prepared, none of them palatable. It may cut back spending or it may raise taxes to balance the budget. Or it may do neither and thus permit another large deficit—a course which would be sure to spread new inflation through the economy. Economists believe higher taxes will be the inevitable choice because the government is either unwilling or unable to cut its spending programs. In a real sense, the budget is running out of control. Caspar W. Weinberger, director of the Office of Management and Budget (OMB), has told Congress, “The clock is running out; there can be no question that the ...