By Henry J. Aaron – Let’s play a game.
Now, as a legislator, you are asked to cut taxes and raise spending–a lot! If you comply, huge and growing budget deficits will result. Debt will grow faster than income. Eventually, the debt will become so large that lenders will lose faith that the nation will have the will or ability to service the debt. When that happens, interest rates will spike and investment will collapse. What position do you take on these proposed tax cuts and spending increases?
Easy question, you say. You vote “no.” To do otherwise would be irresponsible.
- Memo to Congress: No budget is no way to run a country (thehill.com)
- “Bias in Government Forecasts” (economistsview.typepad.com)