When Ronald Reagan was running for President, one of his most dependable applause lines went like this: “Government is not the solution to the problem, government is the problem.” As soon as Reagan became President, however, he expanded the size of government and increased the deficit.
When George W. Bush became President, he moved to reduce taxes on high-end earners. His Secretary of the Treasury, Paul O’Neill, objected on the grounds that reducing revenue into the treasury would increase the deficit. Vice President Dick Cheney put O’Neill in his place, saying, “Reagan proved deficits don’t matter.”
Taxes were cut. The deficit rose, and O’Neill was soon gone.
Fast-forward to the Obama presidency, and our Republican friends are telling us that not only do deficits matter, they matter more than anything else. What they are really saying is that when they are in charge, they don’t want talk of deficits to constrain their actions (taxes, defense spending, credit card wars). But when Democrats are in charge, all spending must be viewed through the lens of its impact on … The Deficit. Continue Reading……………….