Saturday, October 6, 2007

The Real Legacy of the War in Iraq

The GOP anti-tax message is wearing thin, according the the WSJ. They cite the anxiety felt by the middle class as a driver of the perception that the Bush tax cuts didn't help the economy.

I think there's another, bigger driver. The huge cost of the war appears to have been absorbed by the US with no economic consequences at all. This is going to lead to an inevitable inflation of expectations: "If we can spend a hundred fifty billion a year on the War on Terror and be OK, why can't we spend that money better at home?" Fiscal conservatives had better have an answer for that question when Iraq winds down.

No comments: