The tax bill is bad, the debt is fine.
Republicans are huge hypocrites on the deficit, the tax bill proves it, and Democrats want everyone to know about it.
“Part of me feels like a sucker now,” Jason Furman, a key White House economic advisor throughout Barack Obama’s eight years in office, told Ezra Klein. In the same article, Mark Goldwein, policy director at the Committee for a Responsible Federal Budget said “the hypocrisy is astounding.”
It is kind of astounding. But while calling out hypocrisy is fun, in reality, getting the policy right is what’s important. A bill that costs 13 million people their health insurance, raises taxes on millions of middle class families, and contributes to an explosion of inequality is bad in very many ways. But Republicans are right about the deficit.
Look at the reaction in financial markets. Stocks are up because investors in corporate America know a corporate tax cut is going to enrich shareholders. But interest rates in the bond market continue to be low. Traders haven’t been suckered by the GOP’s scoring shenanigans, they know perfectly well that the bill will add over a hundred billion a year in new borrowing. But the global investor community is happy to lend the money at attractive rates. Taking out a $1.5 trillion loan to do something dumb is a bad idea, but we can definitely afford the debt — the way to fix it would be to do something useful with the money.
The big risk in all of this hypocrisy talk is that Democrats will start to believe their own hype and make the same mistakes of the aughts. Back then, they whipped themselves into such a fervor about Bush-era deficits that they then refused to adequately embrace them when they had the majority. Read More Here