xenon13 wrote:
More deficit means more money in the private economy and less private debt. Surely one cannot be opposed to that.
A higher government deficit?
I don't see your argument. If the government runs a deficit, then private money is needed to finance this, so actually money in the private sector decreases to fund the deficit. Now, this money can go back in, but I would imagine that less money would go back than is taken out in the first place, given that money will be needed to fund the people who take the money out and redistribute it.
I suppose you could be arguing that a higher deficit will result in a higher money supply as redistribution increases the velocity of money. The issue is that such rules are likely going to be opposed as "government intervention" given how much they will impact the financial markets. The case is made worse due to the fact that deficits do have to be paid, and thus deficit policies have problems.
The only case that one could make is essentially the "supply-side economic" case, and the issue is that not all libertarians accept the central element of supply-side economics, that is that tax cuts will increase revenues enough in the long-run to justify themselves.