A Midterm Report Card

No President can achieve all his goals in two years, certainly not if his performance is matched against the invariably overblown rhetoric of his platform and campaign speeches. Nonetheless, midterm is an appropriate point for an interim assessment of how well Ronald Reagan is doing in pursuing the main themes of his presidency, which he sketched with unusual clarity and force as a candidate. It is a mixed record.

Inflation. The 1980 G.O.P. platform called it "the greatest domestic threat facing our nation." Curbing it has been Reagan's standout success: the annual average rate of price increases has tumbled from 13.5% in 1980 to around 5.5% this year, a reduction faster than even the President dared to predict as recently as February 1981. Many economists think that primary credit should go to the tight-money policy of Federal Reserve Chairman Paul Volcker. But Fed officials freely confess they could not have carried out that policy without Reagan's support.

Jobs and Growth. Reagan called the unemployment rate under Jimmy Carter a sign of "depression," But since he took office it has jumped from 7,4% to November's jolting 10.8%, the highest since 1940. Total national production of goods and services is about where it was at the end of 1979, despite Reagan's vows to speed it up. To be fair, the slump was probably the inevitable consequence of a determined effort to reduce inflation, but Reagan has still not conceded that.

Role of Government. Reagan did not mince words in his Inaugural Address, "It is my intention," he said, "to curb the size and influence of the federal establishment." He has reduced the tax burden, from 21 % of gross national product in fiscal 1981 to 20.3% in the fiscal year just concluded, and loosened many regulations that business found onerous. But federal spending has actually increased from 23% of G.N.P. in 1980 to 24.2% now. Even social spending has risen slightly as a proportion of national output, despite Reagan's deep cuts in such programs as food stamps and school lunches. Reason: the recession has driven up outlays for other programs like unemployment compensation. The number of federal employees, including civilians working in the Defense Department, has dropped 1.2%, from 2,100,800 in fiscal 1981 to 2,064,252 in 1982.

Controlling Deficits. A flat and dangerous failure. At the start of his term, Reagan set fiscal 1984, which starts next Oct. 1, as the target year for balancing the budget. On Jan. 17 he will present to Congress a budget projecting a 1984 fiscal year deficit of about $155 billion, which is more than double any deficit recorded by a previous President.

Rearmament. Reagan promised a rapid buildup in U.S. military might and he has more than kept his word. The military budget is scheduled to total $1.6 trillion in the five fiscal years that began after he took office, and outlays are now rising 12% a year, by some calculations, after adjustment for inflation. This is faster than even the 5% increase Reagan targeted during the campaign. Whether the buildup is going too rapidly in light of the enormous budget deficits will be one of the most explosive controversies of the second half of the President's term.

Foreign Policy. Reagan has shown more flexibility than his hard-line campaign rhetoric indicated, but the jury is still out. Though he steered U.S.-Soviet relations to their frostiest point in decades, the President has also put forward sweeping arms-control proposals; their negotiability remains to be seen. Subduing his strong pro-Israeli inclinations, he announced last September a sensible and promising peace plan for the Middle East, but neither side has yet accepted it even as a basis for negotiations. Relations with European allies, a high Reagan priority, were badly damaged by the Administration's ill-considered sanctions against the Soviet natural-gas pipeline from Siberia to Western Europe. They are improving now that the sanctions have been lifted, but face an acid test next year, when several NATO countries are scheduled to station U.S.-made intermediate-range nuclear missiles on their soil, over the furious objections of domestic antinuclear movements.

Social Issues. As a candidate, Reagan heartily endorsed the New Right's agenda of banning abortion and compulsory busing and reinstituting prayer in public schools. As President he has given that agenda no more than lip service, and so the ultraconservatives have been unable to enact a single measure.

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