POLICY: How Real a Spending Cut?

In its long and losing struggle to manage an unruly economy, the Nixon Administration has at one time or another applied the diverse economic theories of Milton Friedman (concentration on money supply), John Maynard Keynes (liberal spending) and John Kenneth Galbraith (price control). Last week, still seeking an effective anti-inflation strategy, it went back to Adam Smith. In a bow to the oldtime, laissez-faire religion of reduced Government spending, the White House announced that it would try to trim more than $5 billion out of the budget for fiscal 1975, which...

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