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Two variables versus three
Robert — (archived)

Thanks for not being dogmatic about it.

You state the theory behind supply-side economics, which seems to assume moderate to low budget deficits. Thus, it accounts for only two variables, government versus private spending. But as I'm trying to point out, deficits are a legitimate third variable that works against private investment.

Sure, deficits can theoretically reduced by cutting spending. But in the real political world that rarely happens. The case in point that came up today is Bush's finally revealing the cost of the war, which Congress at this point has no choice but to approve. It seems a big piggish to me that Bush insists on having his war budget and his tax cut. They're incompatible, and anybody who's ever balanced a checkbook (i.e., somebody not born into the Bush family) would know that.

(Sounds like I'm getting a bit dogmatic now. Sorry. I'll stop here.)

--Robert

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