The Great Deficit Dilemma

Another flood of red ink dismays economists, bankers and consumers alike

The irony is all too obvious: Ronald Reagan, who built a political career, in large part, out of making lacerating attacks on Democrats for runaway spending and ballooning federal deficits, now finds himself presiding over an economic policy that threatens to produce the biggest run-up of federal debt in American history.

During the 31 years between 1950 and Reagan's Inauguration last January, the federal deficit swelled by about $430 billion. Yet in the four years of this Administration the national debt may well increase...

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