02/08/2011 05:12 am ET Updated May 25, 2011

What's Wrong With Cutting Taxes?

Vice President Dick Cheney said, loud and clear, in 2002: "Reagan proved deficits don't matter." He was right that Ronald Reagan showed the Republican Party that you can get away with running significant deficits as a result of tax cuts -- exactly the strategy of President George W. Bush.

But Mr. Cheney was completely wrong with regard to the implication that there are no economic consequences of sustained fiscal deficits.