#PayGo in simple terms:
Means the government must demonstrate that it will *subtract* a 💵 from the economy for every 💵 it intends to *add*.
Why on 🌎 would we want a rule to prohibit *net* 💵 contributions to the economy?
Means the government must demonstrate that it will *subtract* a 💵 from the economy for every 💵 it intends to *add*.
Why on 🌎 would we want a rule to prohibit *net* 💵 contributions to the economy?
Without #PAYGO, Congress is free to put more 💵 into the economy than it subtracts away. That money could rebuild infrastructure, fund cancer research, etc. We call it “deficit spending,” which is unfortunate. B/c it all becomes part of the financial surplus *outside* government.
The relevant questions are: (1) Why is that 💵 being spent—i.e. does the spending improve the human condition? & (2) Who ends up with the 💵 surplus—i.e. are you exacerbating or reversing inequality? All deficits improve *someone’s* balance sheet. Ask why and for whom.
