One of the least discussed aspects of our tax and spend government is the true effect of deficits. Deficits are simply an additional form of taxation. Over time, the taxes are collected as the deficits are absorbed into the economy in the form of inflation.
You don't have to have economic training to accept the truth of the argument. Simply compare today's cost of items with their cost 40 years ago. Pick just those items that are largely unaffected by productivity increases or unusual scaracity (or plenty). There aren't too many...tailor made clothes, symphony tickets, precious metals, etc. What you find is that the cost increase in dollar terms is 500-1000%.
On the surface, the broad economy seems to display lower inflation rates. There are a number of reasons for this. First, many things that are purchased in our economy are produced much more efficiently than they were 40 years ago. For example, agriculture is far more productive than it was 40 years ago, and grain prices have advanced at a rate much less than the inflation rates. Purchasing habits have changed dramatically in the past 40 years...we buy more of some things and less of others. Changes in quality and taste coupled with productivity increases dampen the effect of inflation. Taxes and tax increases are poorly reflected in price index calculations. In sum, our complex economy obscures the extent of inflation of the currency.
Normally, the inflation caused by deficits is absorbed without much of a political ripple. But when they become large (or eggregiously large as they are now), the resulting inflation will suddenly flourish when least expected. The big risk is that public debt will accelerate so rapidly against a backdrop of deflation, that service of the debt will create a currency crisis. If that happens, the connection in the voter's mind will be direct. It will be a painful time for both citizens and politicians.
Why is taxation in the form of deficits so bad? The specter of high inflation rates is bad. But as a form of taxation, inflation is the worst of all. It is much more regressive than, say, a sales tax because it attacks both consumption and savings. The people that are most affected are the lower classes; those on pensions; and those dependent on private savings. It is a substantial fraction of our citizentry, and they are about to be very angry.
Our system of tax and spend is at the heart of this problem...not a few thieves and criminals. No politician's promise will solve the problem unless it is a promise of constitutionally driven tax reform.
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