What the United States is doing is amazing. We are both cutting taxes and raising spending while the economy is growing and the federal deficit is already $500 billion. This will raise the deficit to more than $1 trillion a year (did I say, “while the economy is growing”?). And it looks like we might get away with it. It’s amazing.
Other countries couldn’t do this.1 But when you are big enough and you can print your own money,2 you can get away with things little countries can’t. If other countries tried to do what we are doing, they would soon find that nobody would lend them money and that, if they tried to just print more money, people would refuse to accept their money to pay for things (see, for example, Zimbabwe and, now, Venezuela).