The current debate between advocates of “austerity” and “growth” is frustrating for anyone who supports limited government. Austerity folks assert that deficits are economic poison and that balanced budgets, largely achieved with higher taxes, should be the goal of fiscal policy. So-called growth advocates believe more government deficit spending will boost economic performance. Both miss the point. What matters, as Milton Friedman taught us, is the size of government. That’s the measure of how much national income is being redistributed and reallocated by Washington. Spending often is wasteful and counterproductive whether it’s financed by taxes or borrowing. Rather than fixating on deficits and debt, I suggest another goal: Ensure that … Continue reading Daniel J. Mitchell