The Week

The Federal Government now spends three times as much, per month, for interest on the federal debt, as the entire Federal Government spent, per year, at the time FDR took over and got things moving.

Oh, those Voodooeconomic forecasts. Two weeks ago, U.S. News compared the Reagan team’s official forecasts for 1981 with the results for 1981. Reagan prediction, total national output; up 1.1 per cent. Actual increase: 1.8 per cent. Reagan prediction, personal income: up 11 per cent. Actual increase: 11.3 per cent. Consumer prices, Reagan prediction: up 11.1 per cent. Actual rise: 10.4 per cent. Reagan prediction, average unemployment rate: 7.8 per cent. Actual unemployment average: 7.6 per cent. From which it is clear that a) the White House forecasts are hyperrosy for political purposes, and not to be trusted; b) the Reagan team’s prediction for real growth of 3.4 per cent for 1982 is likely to be off by at least .6 per cent (it will really be 4 per cent); c) likewise, unemployment will average not 7.3 per cent, as the White House claims, but closer to 7.1 per cent; and therefore, d) Reaganomics is a failure; so, e) we should increase taxes, slash the defense budget, and hype social spending by f) electing more Democrats to Congress. For your supply-side doll, complete with pins, write to Tip O’Neill’s office. No, no, no: Tip, not the doll.

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The Federal Government now spends three times as much, per month, for interest on the federal debt, as the entire Federal Government spent, per year, at the time FDR took over and got things moving.

Oh, those Voodooeconomic forecasts. Two weeks ago, U.S. News compared the Reagan team’s official forecasts for 1981 with the results for 1981. Reagan prediction, total national output; up 1.1 per cent. Actual increase: 1.8 per cent. Reagan prediction, personal income: up 11 per cent. Actual increase: 11.3 per cent. Consumer prices, Reagan prediction: up 11.1 per cent. Actual rise: 10.4 per cent. Reagan prediction, average unemployment rate: 7.8 per cent. Actual unemployment average: 7.6 per cent. From which it is clear that a) the White House forecasts are hyperrosy for political purposes, and not to be trusted; b) the Reagan team’s prediction for real growth of 3.4 per cent for 1982 is likely to be off by at least .6 per cent (it will really be 4 per cent); c) likewise, unemployment will average not 7.3 per cent, as the White House claims, but closer to 7.1 per cent; and therefore, d) Reaganomics is a failure; so, e) we should increase taxes, slash the defense budget, and hype social spending by f) electing more Democrats to Congress. For your supply-side doll, complete with pins, write to Tip O’Neill’s office. No, no, no: Tip, not the doll.