What do we think of this:
President Obama proposed Tuesday that the government adopt “pay-as-you-go” rules for federal spending.
The so-called PAYGO proposal requires Congress to balance any increased spending by equal savings elsewhere, Obama said in announcing the measure that now goes to Congress.
A previous PAYGO mandate helped erase federal budget deficits in the 1990s, and subsequent ineffective rules contributed to the current budget deficits, Obama said. Now the PAYGO rules should be the law, he said.
“Paying for what you spend is basic common sense,” Obama said. “Perhaps that’s why, here in Washington, it’s been so elusive.”
Sounds to me like a reasonable idea, but what about recessions and the like- will it give the flexibility they need? What do we think of this? Useful tool, or gimmick>
I should probably note that I am deeply supportive of the concept.