Policy Documents

Fiscal Cliff: Five Budget Tactics to Reject

Patrick Louis Knudsen –
December 12, 2012

If plunging over the fiscal cliff in January would threaten the nation’s economy, Congress and the President could also do harm in another way: by dodging the cliff through gimmicks and bogus budget cuts that create only illusory savings in a “grand” budget bargain. Both the White House and lawmakers have shown a propensity for claiming savings where none exist. Doing so as part of a grand deficit reduction plan would drain the credibility from any agreement they might reach. Such tactics would further diminish the confidence of financial markets and the American public—an outcome almost as bad as no agreement at all.