Follow up to above to make it easier to grasp.

Government payments increase the money supply.

Taxes decrease the money supply.

If the government ran a budget surplus, it would steadily be destroying the money supply.

The reality is our government is infinitely solvent in dollars. They make all they want. Taxes, and Treasury Bonds pull money out of the economy to control it's running amok. By punishing the build up of money in some places (taxes) and rewarding lazy investors (Treasury Bonds) we pull money back out of supply.

Arguably, as long as we have unemployment, we have more productive capacity to employ. We measure inflation, mostly, by the increase in wages. Unemployment holds wage increases in balance.

My simple minded conclusion is, as long as inflation and unemployment are in balance, Dick Cheney was an irresponsible warmongering, battery powered bastard, but probably correct.