When Obama gives the usual review of all the programs, stimulus efforts, and new entitlements he’s overseeing, almost no one seems to conclude that he is simply detailing how he is going to redistribute nearly $2 trillion a year in annual borrowing. When we cut through all the soaring Great Society rhetoric, we are left with a “Gorge the Beast” strategy in which money is borrowed and given to favored constituencies before being paid back by less popular groups through higher taxes.
Given the aggregate $7-10 trillion in additional debt envisioned over the next four years, Obama may well become the greatest redistributor in U.S. history, at last addressing his 2001 lamentation about the absence of meaningful “redistributive change” in America. The only question at this point is whether Obama’s gargantuan deficits are aimed primarily at lavishing constituencies with cash, or rather at making it necessary to raise taxes in a way that serves to reduce income inequality.