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Today, Republicans are expanding the deficit again with their big “tax reform” plan — a giveaway to the donor class of both parties — and are already starting to use deficit fear to argue for cuts in what they call “entitlements” — Medicare, Medicaid, and eventually Social Security, even though Social Security is self-funded.
Notice the use of deficit fear in the push for cuts to social programs.
To the extent that Democrats are willing to accept the obligation to “be responsible” — under an entirely big-donor definition of “responsibility” — those cuts will be agree to. (Big donors think it’s irresponsible to give money to anyone but them.)
3. The reality — Deficits aren’t dangerous at all until there’s a big spike in inflation, which is nowhere near happening and won’t be near happening for a generation, after which global climate chaos will make all economics discussions moot.
4. The reality — Government spending is good. It’s the way government puts money into the economy, making it possible for you and me to buy things.
So ask yourself: Do you want your government to shrink the money supply for no good reason, year after year after year, by running budget surpluses, or to grow the amount of money in the private sector, making more available for use by people like … you?
A budget surplus on the government side is a budget deficit on the economy’s side. Do you want the government to be taking money out of the economy each year, or putting money into it?
5. The reality — Everyone in DC knows these realities. That’s why both parties increase deficits when they want to spend on something they want, like war, and claim to fear deficits only when they don’t want to spend on something you want, like affordable health care, or free colleges. You know — to buy you nice things.
Consider: The trillions spent on this giveaway to the already-rich could have been given to college students in debt, or people stillunderwater in their mortgages since the Wall Street-created crash of 2008. What would be the effect of that reallocation of money? People who are struggling would spend it and grow the economy.
What’s the effect of giving money to the already-rich? They buy another chateau in France, or bid on the next Van Gogh that turns up at Sothebys. Or give it to their tax lawyers to send to the Bahamas.
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https://www.nakedcapitalism.com/2017/12/gaius-publius-deficit-talk-trap-will-democrats-fall.html