The Congressional Black Caucus yesterday denounced President Carter's $616 billion budget for next year as an "unmitigated disaster for the poor," and claimed the administration misled the public by saying it would not mean domestic spending cuts.
The 17 black House members called a news conference to protest what they called the "illegal supension" of the Humprey-Hawkins Act, which set national goals of 4 percent unemployment and 3 percent inflation by 1983. The budget anticipates a rise in unemployment to 7.5 percent by the end of next year and would let the target dates for the 4 and 3 percent foals slide by two and five years, they said.
Rep. Cardiss Collins (D-Ill.), who chairs the group, said the much-publicized $2 billion extra for youth jobs would provide little money next year and half the total would go to schools that have provided little effective job training in the past. The defense budget would go up 5 percent above inflation; meanwhile, youth unemployment would also rise, said Collins.
"Our young people are being told that money can be found to send them to war but not to put them to work," she said.
Rep. Parren Mitchell (D-Md.), a former member of the House Budget Committee and now a member of the Joint Economic Committee, said the administration has underestimated the deficit in the budget by $10 billion. He predicted pressure would be expected to cut domestic programs to keep the deficit small. Mitchell said it is folly to rely on a balanced budget to reduce inflation. The last time there was a budget surplus, in 1969, the inflation rate doubled, he said.