The looming red ink is unlike anything in U.S. peacetime history
Remember when Dick Cheney was pilloried for reportedly saying, earlier this decade, that "deficits don't matter"? We recall reading any number of press releases denouncing the Vice President for supporting tax cuts that contributed to short-term deficits but also helped the economy grow until the deficits shrank nearly away.
As an economic matter, it does make sense to run deficits in a recession rather than to raise taxes in a way that would delay any recovery. Borrowing money to finance a war (Reagan's aircraft carriers in the 1980s) or to pay for tax cuts that promote growth (Reagan and Bush's tax cuts) is often money well spent.
Yet somehow none of those same voices are objecting now that the government is spending* its way into deficits that are so large they dwarf any during peacetime in U.S. history... [snip]
The undeniable truth is that this money has to come from somewhere, which means that it is borrowed or taxed from the private economy. This spending blowout is all but guaranteeing huge future tax increases, and anyone who thinks only the rich will pay is living an illusion. Taxpayers need some new champions in Washington -- and fast.
[* and that's the critical caveat: Bush's initial deficits were because he reduced revenue by reducing taxes, which stimulated the economy. All current 'stimulus' proposals grow the deficit by spending more money we don't have, thereby burdening the economy (which is private) -- and delaying any real (broad, sustainable) recovery. The years of unnecessary pain caused by FDR's policies evidently taught us nothing]
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