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May 1981

The Politic of Supply-Side Economics

by Orrin G. Hatch

Senator Orrin G. Hatch concludes that the establishment of a “budget process” in Congress in the mid- 7Os has not helped arrest the growth in government spending or the reliance on deficits. However, a war between supply-siders who seek substantial tax cuts and the various constituencies for federal government spending is unnecessary, according to the Senator. He believes that supply-side tax cuts will sufficiently stimulate economic activity to pay for the current rate of government expenditures.