Jesse Angelo

Recent Articles

Devil in the Details

THEORIES OF CONVENIENCE I t is an article of faith to supply-siders that budget deficits to do not significantly influence interest rates. This was their consistent position during the debate over President Clinton's first deficit reduction plan, when the administration claimed its deficit reduction would encourage growth by lowering interest rates. In February 1993, for instance, Daniel J. Mitchell of the Heritage Foundation argued on the op-ed page of the Wall Street Journal that "budget deficits have fluctuated widely in the past 20 years, yet the accompanying shifts in interest rates predicted by theory have failed to materialize." Now it's the Republicans who are making the same assumption about the deficit and interest rates. If Mitchell and other supply-siders are right, the Republican projections are a fraud. But don't expect to see Mitchell making this claim any time soon though. "We on the right are happy with the direction the budget is taking," he explains, "so we are not...