I think we've got an old-fashioned disagreement here at CG&G. Unlike Stan, I fully expect the federal government to abide by a balanced budget standard, and I reserve the right to be disappointed, cranky, and vocal about it when it doesn't. By a balanced budget standard, I mean:
1) For the General Fund (i.e., excluding Social Security and Medicare Part A), a target of balancing the budget over a complete business cycle. Alternatively, I would accept a weaker standard of no upward trend in the ratio of (total) debt to GDP.
This allows for countercyclical budget policy. It does not allow for so-called stimulus packages that are enacted with no intention of repaying the additional borrowing at the next turnaround in the business cycle. It also does not allow for semi-annual budget forecasts that have on-budget deficits during periods of above-average growth. With this standard in place, it doesn't run afoul of Stan's concern about whether a budget deficit is the short-term policy in 2013.

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