What do y'all think of PayGo, as BHO announced yesterday? I think that on paper, it is a good concept, but in actuality, how will BHO find the Pay for the GO without raising taxes drastically? And not just on the 5% like the campaign rhetoric, but on the 100%?

I need someone to show me how this works, if indeed it does work.

Pay As You GO worked for Texas until we seem to have abandoned it (in practice, not in theory -- we still can't just print more money) around 1999. It's not as immediately feasible for the feds on the whole without a lot of big big changes, but I don't think that's what he's referring to. He seems to be talking more about budget neutrality than true PAYGO.

My first reaction was - first we propose all sorts of new spending, then we propose paygo for future appropriations. How convenient.

Generally the right idea. But what happens when the next financial crisis/recession hits? (I certainly don't think we're through this yet.) I'm sure it will get conveniently circumvented, as I'm sure that the health care costs versus revenue assumptions (remember, the Dems have said it will be proposed and passed this year) will be excessively optimistic. It's the Congressional way.

In concept, I like it. But it's a farce as currently executed (like when the Republicans basically walked away from it once Bush was in office).

(06-10-2009 11:36 AM)gsloth Wrote:  In concept, I like it. But it's a farce as currently executed...

Given that it's a farce in the states -- who must follow it since they can't print their own currency -- there's no reason to expect it to be any better for the feds.