An illusion, something to distract the bubbas while their pockets were being picked. Spending is the primary issue. How you finance it is secondary.
“How you finance it is secondary.”
Spending is important - no doubt, but tax cutting has a more immediate effect on the economy (which is good for politicians), by putting more money in “bubbas” pockets to spend.
Theoretically then as the “bubbas” spending increases then GDP goes up, employment increases, and revenue to the government goes up - which leads to a balanced budget.
That assumes that the debt hasn’t grown too much and the Fed can hold the interest rates down. Else the interest payments will eat all the revenue, unless inflation makes the debt relatively small.... on and on.
Anyway - I would have been fine going over the cliff and Obama taking the political hit. I’m also equally, if not more fine with the Tax cuts being made permanent by the dems and sticking them with the payroll tax hike, when they said they weren’t going to raise taxes on the middle class.
Congress owns the budget - they need to submit one that will cut out stupid departments and spending. They need to quit letting Obama have that responsibility. Spending is part of the budget process, I think that is submitted in April.