Is government deficit spending good? If you ask the party in power, yes. If you ask the party out of power, no. The Republican Party likes to advertise itself as being fiscally conservative, which is a label that implies an opposition to deficit spending. And the Republicans did decry deficit spending… during the reign of Barack Obama. But now their party is in power so deficit spending is a good thing:
On Wednesday, Congressional leadership seemed united behind a budget deal that looks truly awful — at least if you care about the country’s financial future. The bipartisan deal blasts through budget caps and could return the U.S. to trillion-dollar deficits in short order. Right after getting historic tax reform passed, politicians apparently seem content to toss a huge future tax hike onto the next generation. After all, the bills will eventually come due.
And they are serious bills indeed. The proposed deal would include a one-year debt limit suspension, while raising defense spending by $80 billion and non-defense expense by $63 billion. The budget for 2019 would see similar increases, and over the 10-year window, this Chuck Schumer-Mitch McConnell budget could result in $1.5 trillion more added to the national debt.
The poles have flipped. Now the Democratic Party is suddenly concerned about deficit spending.
The United States government is like a teenager who has racked up thousands in credit card debt. It is so far in debt at this point that it cannot hope to pay it off. Hell, it can barely pay the interest on the debt. And if it’s already so far in the hole that it can’t possibly pay off its debt, why should it care if it goes further into debt?
The national debt can’t be repaid and is therefore no longer a financial point of interest. It’s purely a political point of interest that is brought up by the party not in power to criticize the party in power.