He admitted in effect that the budget he submitted in January, which called for a deficit of $15.8 billion and which he termed at the tune "prudent and responsible," had become obsolete in only seven weeks. But the troubles had been building up for more than a decade, said Carter, and they could be traced largely to "our failure in Government, as individuals and as a society to live within our means." Glossing over his own record of rapidly rising spending and huge deficits, both of which contradicted his firm campaign pledges of 1976, he proclaimed his born-again fiscal faith:

"The Federal Government must stop spending money we do not have and borrowing to make up the difference."

Only four hours later, Carter returned to the theme at a press conference in the East Room. "The Federal Government simply must accept discipline on itself as an example for others to follow," he said.

In Carter’s own party, Ted Kennedy has made a demand for wage and price controls his major issue, and is apt to answer any question on any other subject with an attack on inflation.

Government spending. In fiscal 1981 it will be sliced, Congress willing, by $13 billion* below the amounts planned in January—though
that will still be $43 billion above the likely totals for the current fiscal year.