WASHINGTON INSIGHT

THINKING TWICE: Meanwhile, among more liberal Democratic think tanks, fissures are developing in the once-solid support for Clinton’s economic plan. The Economic Policy Institute, a Washington research group with close ties to organized labor, chides the President in a lengthy report for focusing too much on deficit-reduction--and not enough on domestic spending initiatives that he stressed in his campaign. The plan’s rapid pace of deficit-cutting virtually guarantees that “high unemployment will persist throughout Clinton’s term in office,” the analysis warned. That criticism marks a sharp reversal. The Economic Policy Institute’s leader, Jeff Faux, was an ardent Clinton supporter last fall. At a campaign press conference, he announced endorsements of the Clinton agenda from a wide range of economists.