- Complaining about the deficit gives cover to Republicans try and cut government programs for the middle class without actually cutting the debt thanks to more tax cuts.
- Complaining about the surplus and paying off the debt too quickly, gave Republicans cover a decade ago to give the huge tax breaks, especially to the wealthy. [1] Thanks to the Bush tax breaks and wars, we had an anemic economy that led to huge deficits.
- Misrepresenting the cause of the deficit as being caused solely by government spending makes it politically easier to increase the transfer of wealth from average people to the rich through tax cuts. (Much of government spending actually is highly productive, efficient and often impossible for the private sector: think Social Security that keeps seniors spending and not burdening their families, highways that keep commerce possible, the Internet which the government created and gave to the world for free, GPS which is free to use and maintained by the government, food safety that keeps people alive so they can participate in the economy, etc.)
- Cutting taxes for the wealthy creates more government debt, that the wealthy can then take the free money from the tax cuts and invest in government debt and yachts. This is the simple equation that drives Republicans to love deficits. Everyone else can eat cake.[2]
- Making sure that the government is in debt allows for a stable investment for diversified investment portfolios including for the wealthy. Think of the instability without the bond market with the AAA ratings.[3] [4] [5]
- The deficit and government debt creates a more stable economy for allowing the wealthy and corporations to move jobs and industry to other countries. Foreign governments and other foreign entities would probably not allow for such a trade deficit without destroying the U.S. economy or the dollar, if it were not for the option of holding stable U.S. government debt.[6]
[1]http://www.nytimes.com/2001/02/11/business/economic-view-balancing-long-term-wants-and-needs.html
[2]http://www.nytimes.com/2001/07/31/business/the-markets-bonds-treasury-is-planning-to-borrow-to-cover-cost-of-tax-rebates.html
[3]http://www.nytimes.com/2003/02/05/business/nothing-like-big-deficits-to-hearten-bond-traders.html
[4]http://www.nytimes.com/2001/04/06/business/us-treasury-no-lending-with-big-budget-surpluses-some-see-end-new-bonds-notes.html
[5]http://www.nytimes.com/2001/05/03/business/markets-market-place-some-big-decisions-treasury-market-are-wings.html