In Debt Deal, Congress Must Strike a Balance

In Debt Deal, Congress Must Strike a Balance

The Congressional Budget Office says that going over the fiscal cliff is dangerous.  But they also say that ignoring the national debt could be even worse.  Economists from the CBO warned in a Thursday memo that the so-called sequestration cuts could plunge the U.S. economy into another recession, reports the Christian Science Monitor.

But they also add that allowing these cuts to happen will make the economy stronger in the long run.  These massive tax hikes and spending cuts would reduce the debt and make it a lower percentage of the national GDP.

What does this mean?  It means that both Democrats and Republicans will have to make some uncomfortable compromises.  They will have to weigh short-term interest against long-term fiscal solvency.  No matter what happens, the upcoming lame-duck session is sure to be extremely interesting – and critical.

For more, read the Christian Science Monitor.

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