David Brooks today:
During the recession, the government could borrow gigantic amounts without pushing up interest rates because there was so little private borrowing. But as the economy recovers and demand for private borrowing increases, then huge public deficits on top of that will push up interest rates, crowd out private investment and smother the recovery.
So the argument is “we could borrow and spend a lot from 2008 to 2012, but not afterwards,” although I don’t remember the right arguing from 2008 to 2012 that the US should increase spending.
But hey, they have an argument for every state of the economy. If there’s a recession, it’s “Government spending is causing the problem.” If there’s recovery, then it’s “Government spending will smother the recovery.” If there’s zero unemployment, then it’s “Government spending should be reduced now so that we can spend if there’s a recession.” One would almost think they’re not arguing in good faith.