For example, the cost of debt service was proportionately much higher when Reagan was president."Yeah....years of CArter and his failed policies left us with 13-15% interest rates!Of course, with that high interest rates....you got to pay a lot of interest!..Exactly! Reagan's policies of borrowing huge sums of money when interest rates were high were just plain idiotic. You don't want to be borrowing money when interest rates are high. The stupidity is mind boggling. Only a simpleton would thing such policies were a good idea. All that borrowing of expensive money came at huge cost to the taxpayer. By contrast, right now we can borrow money at less than the rate of inflation and lock up those amazingly low interest rates for 10-30 years. Last time I checked, TIPS were paying a negative interest rate. In other words, people are paying us for the privilege of owning our debt. Question: How many times in a lifetime does that happen? Answer: Not many. No question deficits need to be constrained, but deficit spending was far more damaging and costly under the reign of St. Ronaldus Maximus than they are now. All we have to do is not be stupid and everything will work out.
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