Here’s my take on budget deficits in today’s USA Today. I only had 350 words so I did not have room to get into the political economy issues of taxes and spending. I agree with Milton Friedman (always a good idea) that tax increases get spent, so that if we do want to reduce the deficit, the way to do so is through spending cuts. Strangely enough, politicians find this unappealing. So while I argure that deficits at their current level are relatively harmless, higher deficits would eventually have serious effects. It is this fear that restrains federal spending.