The Only Way Out Of The Budget Trap

Clear your head of any illusion that President Clinton's budget plan is going to stem the flow of red ink. The business leaders and politicians who are prattling on about how Clinton's plan is going to lower interest rates and free up funds for investment are apparently unaware that the plan itself says it would add $916 billion to the national debt over the next four years. That's $183 billion more than the cumulative deficit of Reagan's first term and $238 billion more than his second term. Moreover, Reagan cut tax rates and built up defense. In contrast, Clinton is raising taxes, cutting defense, and still adding the equivalent of 5 1/2 years of Reagan deficits to the economy in only four years.

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