In response to:

Don't Cave GOP, This Time Deficits DO Matter

Kibitzer Wrote: Dec 16, 2012 4:53 PM
Mr. Bowyer overlooks the fact that tax rate increases for all are the only political alternative to tax rate increases for the "rich". That battle is over and done with by default. The debt limit is a different thing and it is where the Republicans have the upper hand. They can insist on identified meaningful specific spending cuts in exchange for any increase in the limit or refuse to raise it and force Obama and the Democrats to operate within current revenues or shut down the government.

Do deficits matter? Conservatives have sometimes claimed that they don’t. Dick Cheney has said on more than one occasion that, “Reagan taught us that deficits don’t matter.” In fact, he said that to me personally once.

Supply-siders like me have often downplayed the importance of deficits, arguing as George Gilder and Jack Kemp argued in the 1980s that we can ‘grow our way out of it’. But we can only grow our way out of it if we actually grow. And if we don’t grow, there comes a time when debt grows to the point where it really is unsustainable.

That’s...