Comment: Nah

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Nah

"It does mean that the Treasury will be forced to go to an immediate balanced budget cold turkey"

...which would be a wonderful thing.

"If so it means that the government will have no choice but to cut about 18 cents of every dollar it currently spends. Picture a game of musical chairs with 100 contestants and only 82 chairs left for them to sit down on when the music stops playing. The likely consequence will be a relapse into recession which ironically will put the federal budget back into deficit due to collapsing tax revenue. At that point the government will be forced to raise taxes and/or cut more spending to bring the budget back into balance again. This policy strategy is an economic blueprint for a downward deflationary spiral with no end in sight. Be careful what you wish for."

Nah, that's Keynesian mythology. Cutting spending won't cause a vicious spiral into oblivion, it will cause a brief recession followed by a resumption of growth at a higher rate than before.

The market directs resources toward profitable enterprises. When government spends, it takes resources away from those profitable enterprises which have been chosen by the market, and redirects them toward unprofitable enterprises chosen by politicians, which stifles production and makes everyone poorer. If government spending is reduced, some of the unprofitable enterprises being supported by that spending will go bankrupt. Their employees will be out of work, and their capital will be sitting idle - but only temporarily. If the market is allowed to function, that idle labor and capital will be quickly redirected toward new and profitable employment - increasing total production and making everyone richer.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."