Why Do 'Deficit Hawks' Accept Large Deficit Increase by Republicans?

There is a persistent belief that Republicans who deeply care about the deficit ('Deficit Hawks') would reject any deficit increase. However, this is not entirely true. This article explores the reasons behind their acceptance of a significant increase in the national debt.

National Debt Timeline and Analysis

Let's take a look at the schedule of the national debt over the years:

1990s - Clinton and Republican Congress: Surplus leading up to the Bush era, followed by recession-induced deficits. 2009 - Obama: The largest deficit in history, gradually lowering until 2016, then a deficit of less than 1 trillion dollars. 2017 - Trump: Significant increases in national debt, mostly attributed to tax cuts and an economic upturn.

It's important to note that during Obama's term, the 'Deficit Hawks' were highly critical of deficit increase; now, a similar scenario with Republicans, especially those who align with 'Deficit Hawks', accepts a large deficit spending.

The Irrelevance of Deficit

The discussion around deficits often revolves around the spending one doesn’t like. The real issue is usually the programs one finds objectionable rather than the deficit itself. Therefore, the rejection of high deficits is more about political and ideological reasons than economic ones.

Political Obstacles in Cutting Spending

On the surface, it seems that Republicans should be against such deficit increases. However, they face significant political challenges. Specifically, increasing spending for non-social security programs is largely impossible within the current political framework:

The Democratic Party controls the House, pushing for an agenda that may not align with deficit reduction goals. The political landscape is heavily tilted towards increasing spending in all areas, making it difficult to cut across the board.

According to empirical data, reducing the deficit can be achieved through two main methods:

Cutting Spending: A straightforward but challenging approach in a period of strong economic growth and increased spending on benefits. Increasing Tax Receipts: Even though most governments tend to increase taxes at every opportunity, reducing tax rates could actually lead to increased tax receipts.

While 'Deficit Hawks' agree that tax cuts can boost revenue, the current political environment makes it difficult to implement such policies. The U.S. is still benefiting from the 2017 tax cuts, and further middle-class tax cuts might increase revenue, but the House in Democratic hands makes this unlikely.

Summary

In conclusion, while 'Deficit Hawks' criticize high deficits in principle, their acceptance of significant deficit increases by Republicans is more about political alignment and the difficulty of implementing broad cuts in spending. Until after the 2020 elections, realistic deficit reduction measures remain out of reach.

Keywords: Republican Deficit Hawks, National Debt, Deficit Acceptance