European Stars And Stripes (Newspaper) - January 21, 1987, Darmstadt, Hesse                                Page 10 the stars and stripes wednesday january 21, 1987 column s David Broder economist would overhaul economic planning Congress has. Once again pronounced Jav Sci Donl scan s budget an irrelevancy dead on  the president Tor his part has once again declared the congressional budget process an abomination badly in need of repair. The reality is that neither the executive nor legislative Branch has a great Deal to brag about in its economic decision making it last few years. And that underlying reality was addressed with exceptional common sense last week by Alice Rivlin the first head of the nonpartisan congressional budget office. Since leaving that Post a couple of years ago Rivlin has been running economic studies at the breaking institution she is a rare Bird an economist who writes spar Klingly Clear English has a sense of humor and recognizes that her science is something less than precise or perfect. All those qualities were on display in the presidential address be gave the american economics association explaining Why economic policy making in Washingto in the last decade has been More frustrating muddled a confusing than  part of the reason As Rivlin said is that political decision makers see economists us quarrel some folks who cannot forecast cannot agree cannot express themselves clearly and have Strong id logical biases. Economists return the favor by regarding politicians As Short sighted interested Only in what is popu Lar with he electorate and unwilling to face hard Deci  unfortunately she added All of the stereotypes Are partly  so what to do Rivlin offered seven suggestions so sensible that they Wilt strike Many As Radical they de serve consideration not Only by professional politician Sand economists but by a wider Public concerned with the sloppiness of Curry in Federal economic decisions. Her suggestions would upset existing Power arrange ments in both Congress and the executive Branch handsome would argue create turmoil greater than the promised gains in efficiency. But economic policy is so vital and so badly managed that no one can be Content with the status quo Here Are her ideas first she says government should seek out Deci Sions that should be made less frequently and arrange to do  put the budget on a two year Cycle instead of the annual exercise it s been make major revisions of the Las code even less frequently. Big ticket acquisitions Suchias major weapons systems should be reviewed thoroughly at infrequent intervals and Kepi on a Stei Idy track no subjected 10 constant starts and stops. Second Rivlin says Washington officials should Slop Micro managing so much. Turn More programs Back to James Kilpatrick the states or substitute Block Grants for categorical pro Grams. Let Congress set Broad policy for defense spend ing but not play armchair general or Admiral. Third she says let s consolidate economic decision making in the executive Branch by restructuring the Treasury department As the department of economic affairs including within it both the Council of economics advisers and the office of management and budget. Then the Basic decisions on taxing and spend ing would be under one roof fourth in her grand process. Instead of the separate authorizing and appropriations committees let there be a single committee in the House and Senate handling each major area of Public spending. The lax committees would Deal Only wild taxes not social Security and Trade As Well and the budget committees would assure thai spending and tax decisions fit together to form a sensible fiscal policy. To show she is ready to Slaughter a sacred cow of heroin profession she suggests thai the congressional joint economic committee should celebrate the important contributions it made to economic under standing.,. And then close up  fifth she says the Independent Federal Reserve Board which manages monetary dialogue policy and much More should be brought closer into the dialogue by formal links to the department of eco nomic affairs and regular reports to the congressional budget committees. Sixth there ought to be a single economic forecast for the government instead of the competing confusing and sometimes conflicting forecasts that Bow come out of Congress the executive Branch and the fed and finally so Long As serious structural deficits persist both Congress and the executive Branc should be subjected to the discipline that is the one useful feature of the Tramm Rudman Hollings Law every proposed increase in spending should be accompanied either by a compensating Cut in another budget item or a proposal for raising the necessary Revenue so that fiscal neutrality is imposed. Rivlin is properly modest about her prescription she does not confuse her seven suggestions with the ten commandments. But they Frame a necessary Gidlong overdue debate about he processes by which Washington makes its Basic economic  foil run group political considerations stir up budget criticism there is something tedious to res Joeand irritating in the knee Jerk response in the press and on Capitol Hiil to president Reagan s proposed Federal budget for 1988. Can t the carping critics think of anything More original than dead on arrival this budget is very much alive. To be sure the president s recommendations will not survive unaltered. Be tween now and next november Many of the proposed cuts will be restored Many of the proposed outlays especially in de sense will be reduced. This happens every year in every administration. But the essential elements the Bones of this budget Are Likely to survive. What essential elements there won t be any Broad general increase in Taxa Tion. The votes Aren t in sight to Force such an increase Over the president s cer Tain veto. Outlays for National defense will wind up in the neighbourhood of 1292 billion not drastically below the $297.6 billion that Reagan has asked. Not All of the proposed user fees Wilt be approved but some of them will reimposed a Start will be made As Reagan urges on staunching the Haemorrhage of farm subsidies. These things will happen because a consensus is building in the land. The people generally and the business Community especially Are in no mood to see last year s tax Reform wrecked before it gets started. Families and industries must be assured some period of stability. Speaker Jim Wright s tentative proposal to soak the Rich with a temporary sur charge has demagogic Appeal but it would produce relatively link Revenue and it would Mark a Retreat from the desirable purpose of capita formation. The presidents defense budget As always provides a fat target and fat targets Are tempting. But Congress fortunately benefits from the Wisdom of some old hands. Sam Nunn of Georgia John Stennis of Mississippi Les Aspin of wis Consin whether or not he holds his chairmanship of House armed services will Wield their considerable influence to see that military needs Are met. The fact of defense spending have been obscured by rhetorical smoke. It is not widely recognized that fund for de sense in 1987 Are not higher in real terms the appropriation Tor 1987 is 6 percent below that for 1935, Congress has Cut Back sharply on requests for tac tical missiles fighter aircraft spare parts and personnel. Procurement of tanks and helicopters has been slowed. The budget proposes to fund Only 16 ships instead of the 24 ships that were sought in last year s budget. The president s requests will be Cut but they can t prudently be Cut by much. What of user fees the automatic response is that Congress has refused these proposals in the past therefore Congress will refuse them forever. Maybe not. It makes sense for those individuals or corporations that receive particularized services to pay for them directly. For one example the meat and poultry Industry reasonably May be asked to pay for the inspection services that now Are provided free. College Stu dents who obtain guaranteed Loans reasonably May be required 10 pay a fee for insurance nothing is wrong with hiking die ice for tourists at National Parks. What of agricultural subsidies the present program is financially intolerable socially ineffective and politically unsustainable. Spending on Price sup port has ballooned from $4 billion in i9s1 to nearly 526 billion in 1986. The irony is that these awesome outlays have done Little for the family farm that is the object of congressional concern. The great bulk of deficiency payments and other supports has gone to the great Agri cultural corporations. Last year to Rice producers received government Check for More than is million each. Seven percent of the Farmers look 70 percent of the payments. This nonsense has to be curbed. The president again asks for termination or phasing out of a number of programs. Again the defeatist cry is heard that such requests regularly Are de Nied. But government has no business in the Oil business government has no Busi Ness in the Railroad business. Granted the Sale of Oil reserves and a part of Ara Irak would amount to one time revenues the Sale of Federal Loans would put an end to revenues from interest in the future but the principle is sound. Meanwhile listen for the ritual cries that Reagan seeks to balance the budget on the backs of till in the Burnt the poor the old the Young the tick the veterans the College students. Don t be Lieve everything you hear. To move co Ward a balanced budget the president asks a Little austerity All around. I by High time. I set fou