OTHER NEWS - Dec. 28, 1992

Study: U.S. Government Faces Insolvency: The U.S. government is violating “the principles of long-run fiscal solvency,” a study published by the Dallas Federal Reserve Bank said. Unless President-elect Bill Clinton and Congress change fiscal policies, the government is headed for insolvency or soaring inflation, the study said. The government amassed a national debt of $4 trillion, a quadrupling of the debt 12 years ago, because government spending increased rapidly and tax revenue didn’t, the report said. Weak economic growth curbed increases in tax revenue, the report said. It didn’t say that part of the weak revenue growth was caused by a 1981 tax cut bill proposed by then-President Reagan.