The Nation - News from Aug. 15, 1985

Former Budget Director David A. Stockman said that the Reagan Administration has lost its last chance to control the federal deficit, leaving the nation headed toward economic instability. Stockman, in an interview for the Sept. 2 issue of Fortune magazine, said there was virtually no chance Congress or the Administration will adopt the politically painful spending cuts or tax increases necessary to bring the deficit below $200 billion a year. The budget resolution Congress adopted Aug. 2, Stockman said, is a “limp rag” that fails to plug the gap. “Basically, the window of opportunity has closed,” he said, citing the Administration’s lack of leadership, Congress’ refusal to sacrifice pork-barrel programs and his own tactical errors as reasons for the failure.