The Budget of the United States Government for Fiscal Year 1977: Hearing Before the Committee on Appropriations, United States Senate, Ninety-fourth Congress, Second Session

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U.S. Government Printing Office, 1976 - Budget - 67 pages
 

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Page 8 - ... BUDGET MESSAGE OF THE PRESIDENT To the Congress of the United States: The Budget of the United States is a good roadmap of where we have been, where we are now, and where we should be going as a people. The budget reflects the President's sense of priorities. It reflects his best judgment of how we must choose among competing interests. And it reveals his philosophy of how the public and private spheres should be related.
Page 9 - ... private institutions and individual citizens. Over the years, the growth of government has been gradual and uneven, but the trend is unmistakable. Although the predominant growth has been at the State and local level, the Federal Government has contributed to the trend too. We must not continue drifting in the direction of bigger and bigger government. The driving force of our 200-year history has been our private sector. If we rely on it and nurture it, the economy will continue to grow, providing...
Page 10 - ... additional protection and to slow down the runaway increases in federally funded medical expenses, I am recommending adjustments to the medicare program so that within the new maximums beneficiaries contribute more to the costs of their care than they do now. My budget provides a full cost-of-living increase for those receiving social security or other Federal retirement benefits.
Page 59 - ... potential output. Estimating the total economic capacity of the system avoids the simplistic arguments that additional government programs can be continuously created to meet every claim, by simply shifting resources from the private to the public sector. Adding new government commitments is not feasible if the total production capacity of the economy is exceeded.
Page 41 - Appendix, crowding out is discussed in greater detail.) The size of the deficit also affects the rate of capital formation in the private sector, and this is a matter of great concern. As the recovery progresses, private capital investment must rise to sustain the recovery. In the longer run, the need for increased capital formation has been carefully documented by the Treasury, by numerous outside studise, and most recently, in Chapter 1 of the Economic Report of the President.
Page 60 - emergency" spending programs created to pull the economy out of a recession often exaggerate the subsequent overheating of the economy and create additional commitments that last far into the future. A corresponding reduction of such programs during periods of economic expansion is unusual because the Executive Office and the Congress have been unwilling to shift their attention to longer-term goals or to face up to the agonizing experience of saying no.
Page 10 - ... direction to assure achievement of common goals and the recognition that State and local governments and individuals may do as well or better without restraints. Clearly, one of the highest priorities for our Government is always to secure the defense of our country. There is no alternative. If we in the Federal Government fail in this responsibility, our other objectives are meaningless. Accordingly, I am recommending a significant increase in defense spending for 1977.
Page 41 - ... percent in only 10 years time. Over the last 10 years the average maturity of the debt has declined from 5 years, 3 months to 2 years, 5 months. What this means is that the US Treasury must be a" more frequent visitor in financial markets simply to roll over outstanding securities let alone raising funds for current deficits. In this fiscal year, 1976, the US Treasury will absorb over 70 percent of all moneys in the securities markets; government at all levels will absorb over 80 percent. This...
Page 50 - Most of the recession weakness was concentrated in the private investment sector where residential construction end business investment declined and a large liquidation of inventories occurred. During the last three months of 1974 business inventories accumulated at a seasonally adjusted annual rate of $18 billion. In the first quarter of 1975 the situation was reversed as business inventories were liquidated at a seasonally adjusted annual rate of $19 billion. In the second quarter the pace of liquidation...

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