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It is a fact that revenues went up after the tax cuts, as had been predicted, and that Congress did not give Reagan all of the cuts that he asked for, so the deficits are partially the fault of Congress. It has been awhile since I have looked into the matter, but I believe you are right, we would have run substantial deficits even if the Congress had given Reagan his cuts, just not as large, because of the size of the defense build up. However, I consider the build up to have paid for itself in the peace dividend, and, in any case, you borrow for necessities, and I consider the build up to have been necessary. By the way, if we distinguished between capital expenditures and "consumption", the way a business does, our indebtedness would look more rational. |
