>It seems a lot of American liberals believe in deficit spending as a
>way to evade taxation. Who said nothing good could come of gov't
>spending? Lots of good can, if it's the right kind. How to finance
>it then? Why borrow money from rich people and pay them interest
>rather than tax them?
Either way, they will have to pay. Deficit spending isn't an alternative to taxation, since interest inevitably can only be repaid from tax dollars. Unless it isn't ever repaid, in which case extra currency has been created and existing currency must effectively be worth less. Then those who have wealth in the form of money still finish up paying, a tax by any other name...
So why worry about it? Its not about whether taxes finance government spending, its only about which capitalists can avoid paying and which get stuck with the bill. Let's not take sides in internal disputes between capitalists about who has to pay, we've got our own side to play for.
Bill Bartlett Bracknell Tas