Letter from Washington

The most innovative ideas on both the politics and the economics of the worrisome 1983 budget are coming not from the White House, but from the Hill, and not from the Senate, but from the House. On Monday, January 3, the Administration’s economic gurus—Messrs. Regan, Feldstein, Stockman, and Shultz—met in the White House with the President. There was much hand-wringing over the size of the deficits projected for the “outyears”: ’85, ’86, and ’87. In fact, the gurus concluded that the deficits are so horrific that, if they are not reduced, long-term interest rates will be queered for an indefinite period and that in turn will queer the recovery. But there are only two ways of reducing deficits: cut spending or raise taxes, neither of which is politically acceptable. What to do? Not to worry. Enter Newt’s Turks.

Right after this brainstorming with the White House gurus, the President met with 11 Republican House members, including the leadership, viz., Bob Michel, Minority Leader; Trent Lott, Whip; and Jack Kemp, Conference Chairman. Also present, at least for part of the meeting, were George Bush, Ed Meese, Donald Regan, David Stockman, David Gergen, Caspar Weinberger, and legislative aide Ken Duberstein. The GOP House leadership had insisted on holding the meeting, telling the President that a broad range of his allies wanted to tell him that he is in big trouble and to offer a way out.

Featured Tags

House of Representatives

The most innovative ideas on both the politics and the economics of the worrisome 1983 budget are coming not from the White House, but from the Hill, and not from the Senate, but from the House. On Monday, January 3, the Administration’s economic gurus—Messrs. Regan, Feldstein, Stockman, and Shultz—met in the White House with the President. There was much hand-wringing over the size of the deficits projected for the “outyears”: ’85, ’86, and ’87. In fact, the gurus concluded that the deficits are so horrific that, if they are not reduced, long-term interest rates will be queered for an indefinite period and that in turn will queer the recovery. But there are only two ways of reducing deficits: cut spending or raise taxes, neither of which is politically acceptable. What to do? Not to worry. Enter Newt’s Turks.

Right after this brainstorming with the White House gurus, the President met with 11 Republican House members, including the leadership, viz., Bob Michel, Minority Leader; Trent Lott, Whip; and Jack Kemp, Conference Chairman. Also present, at least for part of the meeting, were George Bush, Ed Meese, Donald Regan, David Stockman, David Gergen, Caspar Weinberger, and legislative aide Ken Duberstein. The GOP House leadership had insisted on holding the meeting, telling the President that a broad range of his allies wanted to tell him that he is in big trouble and to offer a way out.