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Article: TAX HIKE, SPENDING CUT COULD BRING DISASTER, ECONOMISTS SAY
- Article from:
- THE JOURNAL RECORD
- Article date:
- October 29, 1987
- Author:
CopyrightCopyright (null) The Journal Record. Provided by ProQuest LLC. (Hide copyright information)
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Just when President Reagan and congressional leaders have at
last started moving toward a compromise to trim the federal budget
deficit by at least $23 billion next year, with the logjam
apparently broken by the stock market plunge, an unlikely alliance of
normally warring economists is warning that shrinking the deficit by
raising taxes and cutting government spending would be the wrong
thing to do at the worst possible time.
Robert Eisner, a professor of economics at Northwestern
University and the president-elect of the American Economic
Association, has attacked budget cutting now as ``conventional
wisdom'' that threatens ``economic disaster.'' It would be a
``mindless ...