September 23, 2005
MarkBernstein.org
 

What happened to prudent finances?

The Fed raised interest rates yesterday, to prevent the economy from overheating.

Why are we raising interest rates instead of taxes? After all, we're spending hundreds of billions on Iraq, and it's pretty clear that we're not going to see any ROI from that investment. And we're about to spend hundreds of billions on the Gulf Coast. It's not like we couldn't use the taxes.

If we need to cool the economy, what's wrong with a good old Republican fiscally-prudent tax hike?