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- As Interest Rates Rise, the Era of “Deficits Don’t Matter” is Over
As Interest Rates Rise, the Era of “Deficits Don’t Matter” is Over
from Zero Hedge
Back in 2002, then-Vice President Dick Cheney claimed “Reagan proved deficits don’t matter” and went on to push for tax cuts combined with more federal spending. Indeed, the Bush administration would go on to push immense amounts of new spending, supporting a huge Medicare expansion and blowing hundreds of millions of dollars on costly and pointless occupations in Iraq and Afghanistan. The national debt grew by 70 percent during Bush’s eight years, but no one in Washington—Republican or Democrat—really cared. After 2003, the economy seemed to be growing and after the 2008 financial crisis hit, all that really mattered was bailing out Wall Street to “save” the global economy.