On December 18, 2012, Bruce Bartlett writes in The New York Times that conservatives:
believe there is nothing to be gained by reducing the deficit unless it results from lower spending, because that and that alone reduces the burden of government, and reducing the burden of government is the only thing that will raise growth.
Government borrowing necessarily takes money out of capital markets, crowding out private investors who would otherwise use those funds for business expansion, new plants and equipment or other business purposes. Such crowding out may be modest today, mainly because a slowdown in growth has sharply reduced the demand for capital. Should growth strengthen, federal borrowing could become a major constraint on investment.
http://economix.blogs.nytimes.com/2012/12/18/the-true-burden-of-government/
