Horatio Parker
Veteran Member
So if there is nothing left to cut then the future generations will be asked to pay for it more directly with higher taxes ... or higher inflation, which is really just a regressive, stealth, wealth tax. Someone ALWAYS has to pay for a tax cut... just not the people who die before the repercussions kick in.
Tax cuts without spending cuts are not cuts at all, just the issuance of IOUs.
Not so. The limitation to spending is productivity - if the economy can't absorb the spending, inflation will follow.
The deficit itself is irrelevant - it's a mirror image of private sector surplus. Fear of deficits is a holdover from the gold standard when the money supply was limited by the supply of gold. With a fiat currency, the money supply can expand or contract at will. The deficit is just a residual indicating money created and not taxed back. Debt issuance is another legacy of the gold standard, only now it serves as welfare for the rich, and is used by the Fed to maintain its overnight rate.