Labor Hits Deficit as Too Low
The AFL-CIO lashed out yesterday at the Democratic Congress and the President for refusing to run a big enough budget deficit to drive down the unemployment rate appreciably over the next two years.</br></br>The President has said a $60 billion deficit is all the country can tolerate next fiscal year without renewed inflation. The House and Senate both voted last week for deficits in the neighborhood of $70 billion.</br></br>The labor federationÛªs Executive Council, here for its regular quarterly meeting, said yesterday it was ÛÏappalled" by the House and Senate budget resolutions.</br></br>8.9	per cent last month. A $70 billion deficit will drive the rate down to only about 7.5 per cent by the end of next year, according to the House and Senate Budget committees.</br></br>The federation wants the rate reduced faster and further. It tried to persuade the Senate to raise its spending target another $9 billion in fiscal 1976, even at the cost of increasing the projected deficit. The $9 billion amendment failed, 64 to 29.