kim@emory.UUCP (Kim Wallen {Psychology}) (02/07/85)
The facts about Reagan's economic policies are finally becoming clear. His new budget proposal makes it clear that this administration is out of control when it come to taming spending. Two statistics about Reagan's economic record show how badly the economy has been managed. Prior to Reagan the total US deficit was $914 billion. During the four years that Reagan has prepared budgets he has accumulated an additional $795 billion deficit. During Carter's presidency $.09 of every tax dollar was for debt service, whereas in Reagan's new budget $.18 of each tax dollar is interest. At this rate of increase 1/3 of the budget will be for debt service by the time Reagan leaves office. As it stands now interest is the fastest growing budget item. This is all due to congress you say. A report by the Senate Republicans shows that congress authorized spending of only $5 billion more than Reagan requested in his first four years of budgets. That's 0.02% of the defict. So much for that myth. Reagan claims that his adminstration, unlike others cuts spending and doesn't borrow as much as previous adminstrations. What are the actual figures? Here is a comparison of where different adminstrations got their money. (source: Office of Management & Budget) Adminstration %taxes %borrowing --------------------------------------- Eisenhower 100 0 Kennedy 95 5 Johnson 86 14 Nixon 90 10 Ford 82 18 Carter 91 9 Reagan 79 21 Now we see where the money for the tax cuts came from, Reagan borrowed it. Well that's enough for now. I still find it remarkable that anyone believes Reagan about economic matters at all. We have now gone from his promise to balance the budget in 1984 to a state where he can't even promise to bring annual deficits down to 100 billion by 1988 (his current budget promises a 1988 deficit of $144 billion). What do all the Reagan supporters believe will be the effect of a $2 trillion deficit by 1986 (current projections)? Question: What's the difference between Reagan's policy of "Borrow and borrow, spend and spend" and his claims that Democrats "Tax and tax, spend and spend"? With Reagan's plan we pay his debt after he has retired to his ranch in California. It just what Johnson used to finance the War in Vietnam, which probably started this whole mess in the first place. Kim Wallen Psychology department Emory University akgua!emory!kim or akgua!emory!emoryu1!psykw