Historically, Federal budget deficits have decreased steadily as recovery from recession has progressed, and the budget has approached a balance in the later phase of recovery. In late 1978, however, well into the fourth year of recovery from the most recent recession, the Federal deficit is reported at $65 billion and shows signs of remaining large for the next several years. Strong misgivings about the economic impact of current and prospective Federal deficits were expressed by Arthur Bums in a recent panel discussion.