Does the Federal Government Spend Too Much?
The Reagan administration has set itself to the herculean task of reducing the growth of federal spending. The administration plans to trim approximately $5 billion from the current budget (FY 1981) and approximately $41 billion from the FY 1982 budget. At the same time, the administration proposes to increase military spending and maintain basic services to the poor. Although the task of slowing federal spending is not insurmountable, skepticism is a natural reaction. In addition, the Reagan administration is proposing budget cuts, while weak economic activity is automatically increasing expenditures in such areas as unemployment compensation.
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