Chart of the day

Federal spending, GDP and the dollar deflator

My point here is 1) Reagan and company had a very hard time keeping federal spending growth under 5%. Once Clinton and company raised the marginal rates, federal spending dropped below 5%, hovering near 3%. GDP grew at 5% and the overall inflation rates was down to a couple of points. Under Bush and company the deflator was up, as was GDP and federal spending, unsustainable.

Message?
Tax cuts cause economic stress as government grows unsustainably.
And:
When resources are not stressed by federal spending, the central bank has easier control of money.