Deficits matter … if there is a Republican in office. At least, according to The Washington Post.
The Post’s Editorial Board on January 28 criticized “the [government’s] reckless return to deficit spending.” They warned “the country cannot borrow ever-increasing amounts [of money] without consequence” referring to President Donald Trump’s proposed economic plans and potential deficits.
Although, The Post said Trump’s economic plans are “unjustified,” on Oct. 26, 2012, the Editorial Board clearly endorsed President Obama for a second term, even though Obama had just recorded a record deficit of over $1.4 trillion in 2009.
Obama ended up adding over $9 trillion to the national debt before he left office, which is about the same as every other president combined. When the Post endorsed him for a second term, Obama had 4 straight years of running a more than $1 trillion deficit.
The editorial also criticized Trump’s proposed tax cuts and increase in defense spending and said “this casual return to deficit spending” is not justified. But they did not include any mention that lowering tax rates can actually increase revenue to the government. They didn’t even present this as a possible scenario.
According to a Heritage Foundation study, former President Ronald Reagan drastically reduced taxes and revenues to the government increased “from $500 billion to $1 trillion by the end of the 1980s.” In fact, over U.S. history, as top tax rates have decreased, tax revenue has increased. This graph from a Forbes article shows just that.
Trump’s website says he plans to invest up to $1 trillion on infrastructure projects over the next 10 years.
On July 15, 2011, when President Obama had a nearly $1.3 trillion deficit, Neil Irwin wrote a business story for the Post and stated that if the government borrowed money to pay for things “such as highways,” then “deficit financing can make a lot of sense.” Today, the deficit is sitting right under $600 billion and the Post is saying Trump’s economic plans are “reckless.”