(5 of 5)
There is a tremendous backlog of demand for capital goods building up, but businessmen will be willing to buy and build only when they see that inflation has been curbed. They believe, with much justification, that Government spending is one of the root sources of the inflationary spiral that hurts all Americans. For both psychological and substantive reasons, narrowing the deficit and bringing the budget into balance are vital steps in slowing the rise in prices. During the '60s and early '70s, the budget exploded with a mass of social programs that were perhaps innovative and needed at that time, but the mood and economy of the country have changed. Top OMB officials admit that during nearly a decade, billion-dollar programs were not "rigorously examined." It is time for Carter and Congress to take a more serious look at those decade-old ideas. The budget for next year is a good beginning, but more—much more—needs to be done.