Another example of the imponderables that can make deficit projections highly questionable a change of only one percentage point in unemployment can alter a deficit up or down by some $25 billion. As it now stands, our forecast, which we're required by law to make, will show major deficits starting at less than a hundred billion dollars and declining, but still too high.
In one year, with NAFTA, with GATT, with our efforts in Asia and the national export strategy, we did more to open world markets to American products than at any time in the last two generations. That means more jobs and rising living standards for the American people, low deficits, low inflation, low interest rates, low trade barriers and high investments.
The Paris opera is kept afloat by means of an annual subsidy of eight hundred thousand francs, and the imperial opera-houses of Berlin and Vienna, although similarly endowed, are burdened with large annual deficits which have to be covered by additional contributions from the imperial exchequers.
I have, therefore, instituted systematic, voluntary measures of cooperation with the business institutions and with State and municipal authorities to make certain that fundamental businesses of the country shall continue as usual, that wages and therefore consuming power shall not be reduced, and that a special effort shall be made to expand construction work in order to assist in equalizing other deficits in employment.
Well, I'm sorry; they're asking the wrong people to tighten their belts. It's time we reduce the Federal budget and left the family budget alone. We do not face large deficits because American families are undertaxed; we face those deficits because the Federal Government overspends.
Contrary to the drumbeat we've been hearing for the last few months, the deficits we face are not rooted in defense spending. Taken as a percentage of the gross national product, our defense spending happens to be only about four-fifths of what it was in 1970. Nor is the deficit, as some would have it, rooted in tax cuts.
I know it would take a long, hard struggle to agree on a full-scale plan. So, what I have proposed is that we first see if we can agree on a down payment. Now, I believe there is basis for such an agreement, one that could reduce the deficits by about a hundred billion dollars over the next 3 years.
Even as through these trade agreements we prepare to cooperate in a world that wants peace, we must likewise be prepared to take care of ourselves if the world cannot attain peace. For several years past we have been compelled to strengthen our own national defense. That has created a very large portion of our Treasury deficits.
The end of the war and the wholesale cancellation of government contracts killed that. To cover his deficits, he borrowed from the Capitol Loan and Trust, and they are hunting for their money now." "How did you find all this out, Jim?" I demanded breathlessly. "From friends, good friends, Bupps.
Since that time the Ohio budget system has effected savings of millions, not, of course, in the sense that expenditures of the State government now are less than in 1913 for they have increased as governmental activities have enlarged but in the sense that expenditures each year have been vastly less than they would have been without the budget plan of pruning and scaling down demands of existing State departments with a view both to general economy and avoidance of deficits.