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To: GonzoGOP
Low deficits are a natural result of trying to keep a stable currency since high debt loads cause inflation.

Sounds like it's the other way around: stable currency being a natural result of less spending and debt.

Finally in a high real growth environment it is easy to raise tax revenue, reduce social services payouts, all while dropping tax rates. That makes it a lot easier to balance the budget.

You'd think so. But it hasn't happened that way in recent years. Keeping taxes low convinced politicians that they didn't have to cut spending, not that they needed to.

When somebody starts banging the "pro-growth" drum, listen carefully to make sure the tune doesn't end with "deficits don't matter."

None of this lets Romney off the hook, of course. But I'd be wary of "Club for Growth" types attempting purges when they also have things to answer for themselves.

11 posted on 01/05/2012 3:49:05 PM PST by x
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To: x

“When somebody starts banging the “pro-growth” drum, listen carefully to make sure the tune doesn’t end with ‘deficits don’t matter.’”

That’s for sure.

And Reagan never said anything remotely in favor of deficits, despite the attempts by the ‘deficits don’t matter’ crowd to claim him. In Reagan’s farewell speech he said the one regret he had from his Presidency was his failure to avoid deficit spending.


17 posted on 01/10/2012 7:26:51 PM PST by Pelham (Islam. The original Evil Empire)
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