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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (43183)	5/11/2010 10:15:37 PM
From: TimF	Read Replies (1) \| Respond to of 71588

Government deficits have an effect on what can be borrowed in the future. Even if they didn't government spending can equal government borrowing + government revenue. Reduce the revenue and you reduce the frontier level for possible government spending. Of course deficits and debt are negative in other ways, and any benefit in terms of reducing government spending is unreliable and probably small. I'm not arguing that this method is a success, or that its what we should aim for, merely that it does have some of the impact that its supposed to have.