The following is quoted out of the Eureka Springs Times - Echo. The article consists of a paper written by myself in the spring of 1978 - over 33 years ago! Copies of it were forwarded at that time to every member of the Texas Congressional Delegation, President Jimmy Carter's economic advisers and to the President himself. Needless to say, it is apparent that the warnings outlined below were ignored!
" In January 1978, the President submitted to Congress his fiscal year 1979 budget proposal. It calls for federal expenditures of $500.2 billion for the year beginning 1 October 1978. This is the largest budget proposal in the history of the United States - a half trillion dollar spending plan. The budget did not include any new, fresh programs and was aimed mainly at curbing the growth of federal spending and nourishing the economy. The president called it a "restrained" program.
Despite the fact that the spending increase for the next fiscal year has been held to 8.2 percent, the Carter budget projects a deficit of $60.6 billion. When combined with the red ink in the current budget, the new figures mean that the administration is on its way to compiling the biggest back-to-back deficit in the nations history - $122.4 billion for fiscal years 1978 and 1979. A major reason for the huge shortfall in the President's plan is a $34 billion slash in individual and corporate taxes. The idea is to keep the economy from sliding off into another recession and to offset the current and projected increases in Social Security taxes. Regarding the huge over spending, White House advisers are of the opinion that high unemployment and a sluggish economy make it virtually impossible to eliminate large deficits in the budget.
What are these advisers saying? Are they saying that there is no hope in the immediate future for a "booming" economy and a balanced budget? Are they saying President Carter is conceding that a strong economy and viable economic growth cannot be achieved this year or in the immediate future? Are they saying that our only hope is to bide our time, and try to keep America out of a recession, while we wait for an economic "miracle" from above?
A number of knowledgeable citizens believe the answers to these questions are affirmative and that the goal of a balanced budget in fiscal year 1981 has been put aside, in favor of a policy calling for a balance only when developing strength in the economy allows. This approach is a mistake. it has the tail wagging the dog. A balanced budget and a viable economy can no longer be put aside waiting for a "future" unpredictable developing strength in the economy. America can no longer wait. the time for firm, hard, realistic choices, priorities and decisions has arrived. Positive actions, in our federal and in our economic sphere, must be taken immediately! Tomorrow is already here and it did not bring a miracle with it!
Where has American been and where is it going? If you are a student of ancient history, you may remember that 14 years ago, President Lyndon Johnson submitted a budget proposal of less than $100 billion. Last year the budget was $459.8 billion and this year it's over five times bigger than in 1964! The president's budget anticipates the 18th deficit in the last 19 years! This, coupled with the largest yearly trade deficit in our nations history (a staggering $26.7 billion in 1977), leads to only one conclusion. The U.S. economy is in "trouble" and with it the entire political, military, social and moral structure of this great nation!
One could say that this is an emotional and unrealistic statement - but is it? Its it unrealistic to say that the United States can not, year after year, increase it's national debt, perpetuate a huge foreign trade deficit, and fail to revitalize its economy, with out eventually spending itself into oblivion and bankruptcy? It is unrealistic to say that if this occurs - economic chaos will accompany it. Economic chaos is usually followed by massive unemployment, dwindling food supplies, famine, frustration and eventually violent revolution, anarchy and complete dissolution of the nation involved. Could this happen to the United States?"
Today's budget expenditures (over $1 trillion a year), yearly deficit ($150 to $200 billion) national debt (approaching $3 trillion), foreign trade deficit (more in a month now than it used to be in an entire year)-staggers the imagination and lead to the haunting conclusion - That we are living the good life on borrowed time!
Finally, It is gratifying to know that our government, experts, the President-elect, former Presidents, the Congress and Congressional and Executive Branch leaders realize that resolution of the deficit, trade and national debt problems are crucial to the economic health and welfare of this nation. But one must ask the obvious damaging question. Just where in the blazes have they been for 10 years? Why for 10 years have they willfully and with knowledge aforethought allowed this stupid problem to continue to grow? Now after years of neglecting this very real economic disaster, they are falling all over themselves trying to be the first in line to sound the alarm!
Why do we continually elect and send so many fools to Disney Land East on the Potomac? Surely, we can do better next time.
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