Public debt “bad” but tax cuts “good”?
By now the conservative hypocrisy on “fiscal responsibility” has become obvious: conservatives and libertarians of all parties insist almost any government spending is always bad (even when necessary!) because it increases the national debt, yet then they say tax cuts are fine, even though they have the same effect. The taxpayers federation promotes this lack of logic constantly in your newspaper.
The economic bankruptcy of deficit reduction still remains elusive to many, despite this obvious contradiction. In increasingly globalized capital markets, the impact of higher deficits on interest rates and the so-called “crowding out” of investment have failed to happen. In the USA, neither low unemployment nor monetary stimulus from the Federal Reserve set off hyperinflation, contrary to the conventional wisdom of conservatives.