So I was talking over this whole debt crisis with some knowledgeable Republican finance types, and I’m trying to see what I’m missing.
VP: What should the government do to fix the economy?
R: Tax cuts.
VP: But won’t tax cuts expand the deficit?
R: Yes, but those can be offset by massive cuts in spending.
VP: But then why don’t we just raise taxes, and then pay down the deficit that way?
R: Because tax hikes take money out of the economy, and we’re in a recession. If you take money out of the economy now, it deepens the recession!
VP: But wouldn’t cutting services and other government spending take money out of the economy as well?
VP: So? Doesn’t that deepen the recession?
R: But we’ve got to get the deficit under control.
VP: So then why not raise taxes?
R: Because we’re in a recession.