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THREE PER CENT THIS YEAR. BUT THE ADMINISTRATION WANT TO TRY TO CLAIM SOME OF THE CREDIT FOR THE RECOVERY AND TO STIMULATE JOB CREATION.
5. BUT FAR MORE SERIOUSLY THAN UNDER BUSH, A REAL ATTEMPT IS BEING MADE TO TACKLE THE DEFICIT, CURRENTLY RUNNING AT 5.4 PER CENT OF
UNDER CLINTON'S PLAN, DEFENCE WOULD BE CUT BY AN ADDITIONAL DOLLARS 76 BILLION IN 1994-97 AND ENTITLEMENTS BY OVER DOLLARS 90 BILLION. REVENUES WOULD BE INCREASED BY DOLLARS 246 BILLION THROUGH WEALTH, CORPORATE AND ENERGY TAXES. THE ADMINISTRATION HOPE THAT THE COMBINED PACKAGE WILL CUT THE DEFICIT TO 2.7 PER CENT OF GDP IN 1997.
6.
THIS IS THE MOST AMBITIOUS LEGISLATIVE PROPOSAL MADE HERE IN RECENT MEMORY. THE FINANCIAL MARKETS HAVE RESPONDED WELL AND SO, INITIALLY, HAS THE PUBLIC. BUT THE PRESIDENT TOLD ME THAT HE KNOWS THAT RESISTANCE TO EACH PART OF THIS PACKAGE IS GOING TO BUILD IN CONGRESS: HENCE HIS ATTEMPTS TO APPEAL, AS REAGAN DID, TO THE AMERICAN PEOPLE.
7.
THE PRESIDENT FACES AN EVEN BIGGER PROBLEM OVER HEALTH-CARE REFORM. DURING THE CAMPAIGN, HE PROMISED TO PROVIDE HEALTH-CARE COVERAGE FOR THE THIRTY-SEVEN MILLION LOW PAID AMERICANS WHO AT PRESENT ARE OUTSIDE THE NET, WHILE EXPRESSING DETERMINATION ALSO TO STOP THE RUNAWAY INCREASES IN THE COSTS OF HEALTH-CARE. THIS AT PRESENT CONSUMES TWELVE PER CENT OF GDP WHICH, IF UNCHECKED, WILL RISE TO TWENTY PER CENT BY THE END OF THE DECADE. IT IS NOT GOING TO BE POSSIBLE TO SQUARE THIS CIRCLE WITHOUT RAISING ADDITIONAL TAXES. THAT IS GOING TO BE VERY UNPOPULAR AND IT ALREADY IS BEING SUGGESTED THAT IT MAY BE NECESSARY TO POSTPONE THE EXTENSION OF FULL HEALTH-CARE COVERAGE.
8. DESPITE OCCASIONAL STUMBLES, THE PRESIDENT'S OWN PERFORMANCE HAS BEEN QUITE IMPRESSIVE TO DATE. HE IS HIGHLY INTELLIGENT AND A VERY FAST LEARNER. HE IS OPEN-MINDED AND PRAGMATIC TO THE CORE. HE HAS A MUCH BETTER SENSE OF WHAT IS HAPPENING IN MIDDLE AMERICA THAN BUSH DID. HE IS PERSONALLY VERY FRIENDLY AND WELL-DISPOSED AND IS MUCH BETTER VERSED IN FOREIGN POLICY ISSUES THAN MOST PEOPLE REALISE. THERE IS NO DOUBT THAT POLICY WILL BE DRIVEN FROM THE WHITE HOUSE. BUT THE FIRST REAL TEST OF HIS PRESIDENCY IS NOW UPON HIM AS THE WORLD AND WASHINGTON WAIT TO SEE WHETHER HE IS GOING TO BE ABLE TO GET THESE RADICAL BUDGET PROPOSALS THROUGH.
9.
THE CLINTON TEAM KNOW THAT THE BUSH ADMINISTRATION SUCCEEDED IN
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