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The 1984 Reagan Budget

Opinion

Meese: I think they may try, but I don't think they will succeed.

Crimson: Can you comment on what you foresee for the future of social security?

Meese: I think the social security compromise plan, a bi-partisan plan will provide the necessary a forms to handle the social security problem for the foreseeable future. I think at some future time there may be more wide pread or more extensive structural reforms to the system, but I think this will certainly take care of the immediate future and handle the problem for decades to come.

Crimson: Even with increased military sending the deficit will continue to decrease?

Meese: That's right, it will continue to decrease, and of course military spending, which is very necessary, is a factor that will help in the recovery because the procurement dollars do create jobs -- something in the neighborhood of 35,000 jobs for each billion dollars in procurement money. That will eventually cause an increase in the revenues, just as tax revenues from anyone else who is employed help the deficit.

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Crimson: You've mentioned and others in the administration have mentioned that the sharp decline in inflation had been a problem for the deficit.

Meese: It's good news for the people because it means that there is more money to spend and greater purchasing power. It's a problem, as far as the deficit is concerned because it means less revenue.

Crimson: How will this year's budget facilitate the recovery?

Meese: It does show that it's the first year of steadily declining deficits. It is this control of the deficits that will continue to lend confidence to those who are making money-lending decisions. This will keep the interest rates down and will cause them hopefully to come even further, which in turn will help to stimulate the recovery.

Crimson: An issue that is sensitive around college campuses is financial aid, and in particular the recent proposal to have financial aid be contingent upon draft registration. Do you feel that this situation puts an under amount of pressure on Universities to make up for its last financial aid?

Meese: No because I feel that a person who benefits from the taxpayer's in terms of financial aid, also has an obligation to obey the law. And one of the laws that a person has to obey is the law that requires registration for those eighteen years old and over.

Crimson: Are you worried that college might be tempted to get around it by making other funds available?

Meese: Well, if they do then I think they are they are taking from those otherwise eligible students who could use those funds and giving the funds to students who are not obeying the law. And I don't think it would be a very sound policy if they should do that.

Crimson: Do you feel that this is a good way of enforcing draft registration? Some people feel it discriminates against those who are dependent on financial aid for their college education.

Meese: It doesn't at all. Students are getting the benefit in terms of taxpayers' money to finance their education. I think the least they can do is fulfill their responsibility as citizens to obey the law.

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