When Congressional decision makers chose not to raise taxes to fight the war on terrorism they

Question

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When Congressional decision makers chose not to raise taxes to fight the war on terrorism, they chose to borrow the money instead. This moved the opportunity cost into higher interest rates and/or crowding out. In other words, by borrowing money, the government is competing with other borrowers for the available funds, which can lead to increased interest rates and reduced investment in other areas of the economy. This means that the opportunity cost of the war is being felt in the form of reduced economic growth and investment in other areas.

When Congressional Decision Makers Chose Not to Raise Taxes to Fight