Economy is being run into the ground

Read Hanson over at NRO:

First, Obama’s budgetary agenda defies common sense. If it were true that the United States with impunity could borrow $2 trillion this year — and, in the aggregate, run up another $10 trillion in collective debt over the next eight years — then the rules of finance as we know them would be rendered null and void.

In truth, all that borrowed money not only will have to be paid back, but paid back with compounded interest through higher taxes and cuts to government services. And the more we borrow from ourselves and the Chinese, Japanese, and Europeans, the more likely it is that the interest rates will climb — both because we will strain capital markets and because the current deflationary downturn cannot last forever.