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Show To Balance Budget U. S. Senator Jake Garn (R-Ut) (R-Ut) today added his support to a Senate resolution to propose a constitutional amendment requiring that the U.S. budget bud-get be balanced. He said the action comes at a time when it is "increasingly recognized" that "conventional" economic thinking, that deficits produce prosperity without inflation, I "cannot solve our current I economic crisis." IN ANNOUNCING his support sup-port of the resolution, Senator Garn told his colleagues, "Over the next few years, our economy will face an unparalleled un-paralleled need for new jobs, both to put the unemployed back to work and to absorb new members of the work force. "There is no evidence that the traditional response to this need, more federal spending, will work. We have, in the last three or four years, been reap-ing reap-ing the bitter fruits of that thinking and I am overjoyed that the President is resisting it. 1 COMMEND him for his courage and pledge him my support so long as he follows that course. "Most of our present day economists see tax-cutting as a method of stimulating demand, which will then encourage en-courage increased production, putting people back to work. "I HAPPEN to think that this formulation is exactly backward. I believe that supply sup-ply creates its own demand and that the surest way of encouraging en-couraging supply is to stop penalizing people for making money. Taxes penalize productivity, especially the wildly progressive progres-sive taxation we have gone for in America." "THERE IS no point in killing yourself to produce something when the profit from it is taken away in taxes. Of course we have not gone as far along that road as some countries and our economy is in better shape than those countries. But we have gone far enough that capital formation for-mation in America is at a critical cri-tical low and has been for some time. "If we are going to cut taxes and thus encourage production produc-tion and new employment, we must bring the federal budget back into balance. The alternative alter-native is a violent inflation which will undo all efforts of government and private industry in-dustry to improve the lot of the average citizen. "WE RECOGNIZE that minor imbalances will occur and our amendment would provide for them; but it would also commit the nation to a sane fiscal course, under which a restrained monetary and tax policy would allow our unparalleled development to proceed, to the benefit of all mankind. |