They can either:

1.  Cut spending to met income
   
2.  Raise taxes to met expenditures
   
3.  Engage in 'Creative Accounting' - pretend income/expenditures balance

A doo run-run-run, a doo run-run

That provision routinely, in times of downturns, produces economic crises. These crises are often borne on the backs of those least able to afford it.  Cuts to welfare, medicade, education, mental health programs and other programs that aid the poor.  This is especially evident during Republican administrations.  They see these downturns as opportunities to roll back social programs.  If you don't want to do something, it is always handy if it is impossible.  If you want to do something, it is nice if you have no other choice.  We like to make things like that easy in the good ole USA.

If sanity be culturally normative, then by the norms of this culture I claim insanity.

... accounting ... not a deficit on the primitive "pile of money" accounting of the USG.

IOW, where capital spending is funded by bonds, the interest payments and bond repayments to retire the bonds must be fully funded by revenues ... no rolling over debt, and no borrowing to meet current expenditure.


Utsukushikereba sore de ii