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Big Ideas: On deficits, leaner armies and government innovation

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Rudy Penner at the Tax Policy Center's TaxVox blog: Thanks to artificially low interest rates, the United States has been able to finance deficits exceeding $1 trillion every year from 2009 through 2012 at very low cost. Throughout the period, the ratio of interest to the GDP has remained almost stable and is not expected to start rising until 2015. Some argue that this has encouraged the...

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