Deficit Chickens Coming Home to Roost

The deficit rage we’re seeing ahead of the midterm elections is a “strange and wonderful thing, about the only thing that gives me hope that our country may yet escape ruin,” writes venture capitalist Bill Frezza for Real Clear Markets. Until now, elections have always hinged on “convincing enough constituencies that you and your party could give them something for nothing—low cost mortgages, fat pensions, crop subsidies, easy money, or bloated contracts.” And each time the Republicans or Democrats gained power, spending went up.

But “the giveaway game isn’t working any more, and the reason is simple. The cupboard is bare,” Frezza continues. “This has unleashed a lot of anger, some of it blind, some of it directed, some of it cynically manipulated.” Right now, Democrats are taking the brunt of it, and Republicans will surely cheer when they win the House. “But that’s a lot like celebrating being promoted to senior officer on the Titanic.” Luckily, there's a chance we can escape this "death spiral"—by freeing businesses to pursue real, economic growth. (More deficit stories.)