Office of Management and Budget chief Bert Lance today indicated that most of the initial thrust of the Carter administration's soon-to-be-announced anti-inflation program will be directed at government red tape and regulation rather than wages and prices.
"The biggest perpetrator of inflationary pressure is the federal government itself," Lance told a meeting of the New York City Financial Writers Association, singling out the "paperwork burden" and "Government intervention into the private sector" as "the area of greatest inflationary pressure per se."
He said doing something here is "one place where you can show the American people you mean business." But a long-range solution to the problem of inflation "lies in the area of capital investment, increased productivity and fiscal responsibility," Lance said.
There has been considerable skepticism within the business and financial community about the Carter administration's resolve in dealing with inflation. The recent, prolonged stock market slump has been attributed to this concern.
Lance insisted that the anti-inflation program will be "strong," and said there was a "paradox" between the behavior of the financial markets and talks he has held with people in the business community which he said show "a great deal of confidence being built."
He also cited polls showing overwhelming public support of the Carter administration's policies.
Asked about reports that the White House staff under President Carter is 30 per cent larger than under his predecessor. Gerald R. Ford, despite campaign promises of increased government economy. Lance said it was unfair to "judge what ultimately constitutes a White House staff until we have a chance to get on board and get reorganization started."