Deficits help whomever the spending or tax cuts are received by. Whoever receives bond interest would have received returns to capital from some other asset if bonds were not available. So use of bonds cannot alter the distribution of wealth.
mbs
C. Sawicky,
I think you're wrong about the Dems' strategy. I think that if the Dems position themselves as the party of fiscal responsibility they can do well for themselves and the country. Deficits as such help nobody but bondholders. If one is for greater spending than one should be honest about it. There are very good arguments to be made for more spending but the "deficits are okay" mantra just allows the Repubs' irresponsible approach to governance to go unpunished. I think actual harm to the economy from deficits is not the issue. The issue is trust. Voters simply don't believe anything politicians say about how tax money is spent and that situation has come about, in part, because of the Democrats' attitude towards running deficits.
While the Republicans have the same attitude (deficits are clearly fine with them) they lie about it, and that makes them vulnerable.
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