Senate Proposes $10 Billion Armament Cut in Defense Bill
Senate Armed Services Committee chair Sen John Stennis says subcommittee bill seeks austere funding with 5 billion in savings from force reductions to 2.5 million and cuts to MIRV warheads and certain Navy and Air Force purchases. Proxmire pushes for faster action and more defense spending elsewhere. The plan aims to balance national security needs with fiscal restraint for the Nixon era.
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Kennedy warns deficit likely larger than expected
Secretary of the Treasury David Kennedy told Washington reporters the anticipated 1971 deficit may be much larger than the President's small figure due to slower business recovery. He cited weak growth in Southern California and Seattle from defense cuts and warned against rising protectionism threatening trade and the U.S. balance of payments. He said inflationary psychology could delay a new inflation wave.
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