Borrowing as an Alternative to Deficit Financing?

One of my complaints about our replacement governor in California is that he loves to talk about deficit reduction but is unwilling to raise taxes and incapable of significantly reducing spending – although the slate of propositions he has put on the ballot are designed to reduce our investment in public education and to reduce the pension benefits of public employees. At one point early in ARNOLD’s reign of Bush free-lunch financing, a local newsperson said that we had reduced deficit spending by issuing more government bonds.

Of course, this comment was stupid but read what Don Young (Alaskan Republican Congressman) said when he proposed issuing disaster assistance bonds:

“We must find a way to meet the inevitable needs that will arise after future disasters,” he said. “We cannot continue deficit spending.” Money from his proposed disaster recovery bonds would supplement the dollars already in the federal government’s disaster relief fund, Young said … Young rejects an alternative source of disaster relief, the recently passed $286 billion highway act. Critics have called on Congress to revoke $450 million that Young steered to two proposed bridge projects in Alaska through the highway act, along with billions in similar earmarks to other states. Young said last month that the critics can “kiss my ear.”

And I complained about Thomas Nugent earlier!