Economy & Business: Smooth Waters Now, but Rapids Ahead


Budget and trade deficits trouble the second-term outlook

"The President's economic task in the next four years will be as formidable as anything he faced in the last four."

Henry Kaufman's grim predictions have made the Salomon Brothers chief economist Wall Street's leading doomsayer. But his assessment of the economic problems that President Reagan must tackle in his second term is widely shared by economists and business leaders. After a first term in which he presided over historic cuts in taxes and social spending combined with a major military buildup, Reagan...

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