Reagan proved deficits don't matter.
Richard "Dick" Cheney
Former Treasury Secretary Paul O'Neill was told "deficits don't matter" when he warned of a looming fiscal crisis. O'Neill, fired in a shakeup of Bush's economic team in December 2002, raised objections to a new round of tax cuts and said the president balked at his more aggressive plan to combat corporate crime after a string of accounting scandals because of opposition from "the corporate crowd," a key constituency.
O'Neill said he tried to warn Vice President Dick Cheney that growing budget deficits-expected to top $500 billion this fiscal year alone-posed a threat to the economy. Cheney cut him off. "You know, Paul, Reagan proved deficits don't matter," he said, according to excerpts. Cheney continued: "We won the midterms (congressional elections). This is our due." A month later, Cheney told the Treasury secretary he was fired.
Source: Adam Entous, Reuters, on AOL News Jan 11, 2004
The question seems simple. Either deficits matter or they don't. Here's the dilemma:
If deficits do matter, then Reagan was wrong, and the Republicans were lying then.
If deficits don't matter, then the Republicans are lying now.
An interesting problem, I think.
So, Mr. Cheney, do you still beat your wife? I'm waiting....
Very Truly Yours,