If we were a business, it would be considered sound policy to go into debt for capital expenditures, rather than trying to pay as you go. If higher deficits allowed lower taxes, it was a worthwhile trade- off, just as it would be worthwhile for a company to borrow to build a plant, rather than raise prices. If we are spending on things we should not be, by all means, cut. But to let a concern over deficits dominate the budget process is stupid.
You are misinformed. The economic decline of the Soviet Union was not well- documented from the '50s on. In fact, growth rates were consistently inflated, due to difficulty of getting sound data from the Soviet Union, or making comparisons between systems. And though they did not magically decline in the '80s, there was no substantial consumer movement, and the extensive black market helped to stave off crisis. The main problem was that about a quarter of GDP was dedicated to the military, instead of consumer goods. If you think that the economic situation mandated the collapse of the system, look at China. The Party and the Army are firmly in control, even with market reforms. |
