Ready to go, the President-elect outlines policies for home and abroad
As he looks ahead to his Administration, Ronald Reagan concedes that the worsening economy might delay his timetable for balancing the budget, but he still intends to cut taxes as well as spending. He wants to negotiate a new arms control pact with Moscow, but warns that an invasion of Poland could lead to a trade and diplomacy "quarantine" against the Soviet Union. On other subjects, from welfare to the environment to human rights, he maintains his basic firm, conservative line. Shortly before Christmas, Reagan discussed his views in a lengthy interview with TIME Senior Correspondent Laurence I. Barrett, who covered his campaign throughout the election year of 1980. During their session, Reagan lounged comfortably in an easy chair in his Pacific Palisades home, obviously at ease in his new starring role. Highlights:
Q. Sir, you have picked most of your Cabinet, conferred with President Carter, received scores of task force reports and explored the Washington Establishment. Have your views of the presidency and its challenges changed since the election?
A. No, I think I have always been well aware of the enormity of it, the difficulties, the fact that you cannot undo in a minute and a half what it has taken quite a long time to build up. I suppose if there is anything that has changed at all, it has been the deterioration of the economy, which makes the problem even more acute.
Q. Do you agree with a number of economists who are predicting that we are in for yet another downturn?
A. We have been on a downward slide for several weeks now. But that just strengthens my belief that this is the time for what we have been advocating, which is a totally different policy. And I would think that even if some people question that different policy or are not in complete agreement with my own faith in it, and others' faith in it, that at least they would recognize it is time for a change, tune to try something different. I think that [the problems with the economy] will just mean that it will probably take a little longer for the effects to be seen.
Q. Do you still hope that you will be able to balance the budget by fiscal 1983?
A. I'm hoping, but you have got to remember that every percentage point of additional unemployment adds billions of dollars to the cost of Government and reduces Government revenues because of people no longer paying taxes.
Q. So it is much more difficult to reach that balance?
A. Yes.
Q. David Stockman, your choice to run the Office of Management and Budget, and Congressman Jack Kemp are talking about declaring a national emergency on the economic front. Have you decided to do that?
A. No final decision has been made. The only purpose that it would really serve would be not only to focus attention on the Government, but to convince people of the seriousness of our economic crisis. It does not mean that if you did that I would suddenly have fabulous powers, or I could go ax-wielding in every direction.
Q. How would you try to reduce social welfare programs?