The last days of Starve the Beast

I heard he bought up 71% of the country's limos.

 

One of my particular favorite terrified theories about the Republican party is Starve the Beast, the fiscal/political strategy developed by small-government thinkers in the late 1970s. Depending on whom you ask, Starve the Beast is either a widely accepted conservative tactic or a paranoid fantasy of the left, although if the last couple of years have taught us anything, it’s that those two categories can overlap. The idea behind S the B is simple: cutting social welfare and other spending programs is not popular, but cutting taxes is. Ergo, the best way to reduce the size of the federal government is to steadily reduce taxes, until the political pressure created by mounting deficits forces cuts in spending. It sounds kind of evil and crazy when I put it that way, as if the GOP were deliberately bankrupting the federal government in order to get the budget cuts it couldn’t secure by democratic means. Maybe it would be better to let someone more respected explain it, like 1978 Alan Greenspan:

Let us remember that the basic purpose of any tax cut program in today’s environment is to reduce the momentum of expenditure growth by restraining the amount of revenue available and trust that there is a political limit to deficit spending.

Oh, wait. That sounds evil and crazy, too.

Continue reading