Business: The Dangers of Budget Bloat

Washington's free-for-all spending just makes inflation worse

Even conservatives now accept that moderate deficit spending is often necessary to lift the economy out of a recession. Fair enough, but as the U.S. enters the fourth year of recovery, deficit spending is reaching tidal wave proportions. The deficit called for in Jimmy Carter's budget for fiscal 1979 is $60.6 billion, and it promises to keep the flood of red ink cresting at least through 1980 and probably much longer.

The dizzy growth of the deficit must be reversed because it condemns the U.S. to unending inflation, sapping not only the nation's economic vitality but...

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