Both Republicans and Democrats practice deficit spending, but they cloak it with clever phrases. The Republicans call it “tax reform.” The Democrats call it “social investing.” Both phrases are cute cloaks for deficit spending.
Of course, both insist the deficit spending is merely a short-term result. Republicans say tax reform (read: tax cuts) will encourage “job creators” to invest more money and spur the economy. Democrats say increased social investing will increase consumer spending and spur the economy. Either way, increased deficits in the short-term will make everything great in the long-term. Sure!
Austrian economists argue government revenues must equal government spending. Like families, you don’t spend more than you make. Unfortunately, neither Republicans nor Democrats can think beyond their clever phrases. Scratch a Republican, he’ll say the problem is too much spending on entitlements. Scratch a Democrat, he’ll say the problem is the rich, who won’t pay their fair share of taxes. Mere cloaks!
At what point will we admit that the two-party system is failing us?