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Newspaper
Odessa American
Location
Odessa, Texas, United States of America
Date
May 17, 1982
Page
3
Senators this week draft an election-year budget with Republicans seeking Social Security cuts and Democrats calling for larger tax increases. A $100 billion deficit would still be viewed as an improvement over the projected $182 billion red ink, fueling hopes for lower rates and renewed growth as the economy recovers from recession.
Economists warn that without easing tight money policy the post tax cut recovery may stall and trigger a recession. Senators debate boosting defense cuts, Medicare, Medicaid, student aid, and an anti-recession jobs program while Republicans push $40 billion Social Security savings.
Inflation and unemployment could erase the envisioned 40 billion dollar savings for Social Security's trust funds. Senator William Armstrong warns that even with an 18 percent reserve, higher unemployment or inflation could absorb most of the savings, threatening the system's cushion. Also notes Vice President Bush at a university ceremony in Oxford Ohio for an honorary degree.
Rep. Barney Frank called for a congressional investigation into reports that State Department officials secretly smuggled hundreds of Nazi war criminals into the United States in exchange for Soviet intelligence. John Loftus said on CBS Sixty Minutes that over 300 Nazis remain in the U S and some work for the government. The programs, Loftus said, involved FBI Army and State Department entities and were allegedly approved at high levels.
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