As of mid-September, Congress was debating changes to the Gramm-Rudman-Hollings Act
to strengthen the enforcement mechanisms and raise the target deficits.
He argues that the deficits that were projected before the Gramm-Rudman-Hollings Act
and the 1985 Congressional Budget Resolution could radically overheat the economy.
The third and potentially most damaging measure is the Gramm-Rudman-Hollings Act
The issues that he addresses include the Gramm-Rudman-Hollings Act
(GRH), the 1986 Budget Reconciliation Act, ideology (the tensions between program needs and aggregate budget needs, and questions about the appropriate size of government), practical approaches in Congress (based not on rigorous economic theories but on individuals' motivation, committee experiences, and analytical prowess), and the roles of the direct (constituency) and indirect (President, party leaders, and institutional) actors.
As was pointed out in the April "Business Situation," it is likely that the first-quarter decline reflected to some extent the reductions made to comply with the Balanced Budget and Emergency Deficit Control Act of 1985, better known as the Gramm-Rudman-Hollings Act