“The Reagan Administration’s economic policies are neither careful nor protective of the nation’s future. . . . They have touched off a national borrowing and buying binge that will have to be paid for in the morning.”
—EDITORS, THE NEW REPUBLIC1
NOW FOR A SHORT CIVICS TEST. ANSWER “TRUE” OR “false.” To balance the budget in the 1990s the Congress must either increase taxes or cut spending from current levels.
The right answer is “false.” If you responded “true,” however, I won’t take off too many points. There is probably no more widespread myth about the US budget system than the supposed need to raise taxes or cut spending.
Let’s consider how the myth got started. We do have a budget deficit of some $160 billion. ...