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Do you think government should borrow excessively in order to court future votes?

Asked by crazyguy (3207points) February 1st, 2021

The Covid Relief bills have provided a fantastic window into politicians’ mindsets. The differences between the Democratic and Republican approaches have never been clearer. I became a Republican because I am at heart a fiscal conservative, and I have been disillusioned on that score. I have found out the Republicans are as ready to throw money away as Democrats. In fact, Republican Presidents have contributed more to our national debt over the years than Democratic Presidents – see
https://towardsdatascience.com/which-party-adds-more-to-deficits-a6422c6b00d7

From that article:

Compared to Democratic presidents, Republicans are estimated to add between 0.75% and 1.2% more to the deficit (as a percent of GDP) each year they are in office.

So why are Republicans considered more fiscally prudent (tight-fisted)?

I think there are two reasons.

1. Compared to democrats, they are more likely to worry about wasteful spending. Good examples are subsidy checks to middle class people who did not lose their jobs during the pandemic, and the US Post Office.
2. They are more likely to spend on defense and investments rather than frivolous handouts. Of course it is debatable how much of an investment tax cuts are.

The current debate over the size of the Covid relief package is a good example. Democrats are intent on spending as much as possible, whether it is directly connected to covid relief or not. Republicans are intent on holding the line.

A private corporation, in order to be perceived favorably by Wall Street, has to spend reasonably to keep up with the times and be a good corporate citizen. However, if it does not grow its profits in good times, its stock price will be hammered.

Why should government be treated any differently?

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