1.) Deficit increasing projects (Infrastructure the main example) should be conserved for when the economy is weak so the Government can use it as a way to introduce money into the economy.
2.) Increasing deficits during an economic strong period requires the Government to increase the number of lenders by increasing the interest rates, which in turn puts unneeded pressure on companies to increase their interest rates.
I have a couple of confusions from this article. Isn't beneficial for the Government to increase interest rates so they are able to cut the rates during the next recession to increase borrowing? Also, why is it bad for companies to be increasing their interest rates? I am presuming that the tax cut bill will introduce more money into companies to be able to increase their rates.
I'm always worried reading the opinion articles on Five Thirty Eight since they tend to have a left-ward leaning bias. Their articles that focus on statistics are usually fantastic.