Republican Embarrassments
By Victor Davis Hanson| February 11, 2018
Free-marketers are right that tax cuts stimulate economic growth that in turn lead to expanding production and eventually more federal tax revenue.
But the problem traditionally has been that to obtain tax reductions, Republicans also have had to sign on reluctantly to larger expenditures. Or, worse, they willingly believed they could spend more, simply because more money poured into the federal treasuries.
George W. Bush doubled the national debt. After running against Bush profligacy (remember the Chinese credit card trope), Barack Obama doubled it again by doubling Bush’s levels of borrowing. Conservatives blasted Obama for his even greater lack of thrift. The Tea Party movement emerged in reaction to reckless expenditures and borrowing to fund Obamacare.
Now Donald Trump is caught in the same old matrix. His deregulation, tax cuts, and energy expansion will likely increase federal revenue. But his various budget concessions and his own proposed increases in defense spending and infrastructure would likely bleed the budget at a far greater rate than the growing federal revenue.
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https://amgreatness.com/2018/02/11/republican-embarrassments/
