Home
/
RELIGION & LIBERTY ONLINE
/
Commentary: Living in the Shadow of the Fiscal Cliff
Commentary: Living in the Shadow of the Fiscal Cliff
Jan 7, 2026 11:39 AM

Jordan Ballor looks at the bipartisan lack of discipline in Washington on debt and spending, and the effect on future generations. “Christians, whose citizenship is ultimately not of this world and whose identity and perspective must likewise be eternal and transcendent, should not let our viewpoints be determined by the tyranny of the short-term,” he writes. “If we continue the current course of American politics, the fiscal cliff will end up being nothing more than a bump in the road toward the cultural, economic and political bankrupting of America.”The full text of his essay follows.The full text of his essay follows. Subscribe to the free, weekly Acton News & Commentary and other publicationshere.

Living in the Shadow of the Fiscal Cliff

byJordan Ballor

After the election results earlier this month, the next big issue facing President Barack Obama and Congress is the so-called“fiscal cliff,”a series of discretionary spending cuts and tax increases that, in lieu of some action taken in the meantime, would kick in automatically at the end of this year and the beginning of 2013.

The net gains from these actions, also referred to as “sequestration,” areestimated to amount to a reduction of the federal deficitby $607 billion, or 4 percent of gross domestic product (GDP) in FY 2012 and 2013. To put this in some perspective, the deficit as enacted for FY 2012 is in the neighborhood of $1.37 trillion, so fiscal restraint represented by the cliff represents a major dent in the spending patterns of the last decade and more. The last year the deficit was under $1 trillion was 2008, when it measured $642 billion, which at the time wasthe largest deficit in American history. As significant as the fiscal restraint imposed by the cliff is, however, it would not quite get us back to even those historically high levels of expenditure.

As Republicans continue to control the House of Representatives, the ing from the GOP will be that the deficits of the last four years are the result of a spendthrift administration and Democratic Party, who have overdosed on stimulus spending and continue to show disregard for the fiscal realities facing the United States. For their part, Democrats in the Senate and the White House will continue to argue that to address the unique challenges facing the country we will need to raise revenue and decrease spending. As with most things in politics, the truth lies somewhere in between these two extremes.

The reality is that deficit spending became part and parcel of federal policy long before President Obama was elected to the White House. It is true that deficits over the last four years have been historically high, but it is also true that we have endured the greatest economic downturn during this time since the Great Depression, while at the same time facing military challenges in Iraq and an ongoing war in Afghanistan.

At the same time, to argue that the challenge confronting the federal government really is a problem of revenue and not of expenditure is to ignore these same decades of political trends. For the last half century and more, there has been no significant period of time when the spending of the federal government did not exceed, often by wide margins, the amount of revenue being taken in. As Richard Vedder and Stephen Moore summarized in theWall Street Journal, “over the entire post World War II era through 2009 each dollar of new tax revenue was associated with $1.17 of new spending. Politicians spend the money as fast as es in – and a little bit more.”

This is a bi-partisan reality. If one party has been steering us towards the fiscal cliff, then the other has been pressing down firmly on the accelerator. Without some kind of structural change to the culture of Washington,there is little indication that raising taxes would result in anything different this time around.

But apart from the numbers themselves, the framing of the issue by politicians and pundits ought to give us pause. The idea that returning deficit spending to 2008 levels represents a “cliff” is not just political hyperbole. It reveals something deeply broken about not only our political system, but even more of our cultural expectations. As long as we continue to expect politicians to deliver programs and policies that are not sustainable, they will continue to promise them, and what is perhaps even worse, they will continue to try to make good on them, no matter the cost to current and future generations.

The fiscal cliff does not represent some apocalyptic moment in American history. In fact, the debate over sequestration is likely to obscure the more pressing and long-term matters facing this country, particularly the intertwineddemographic and entitlement “cliffs” we face in Americaand more sharply across the globe. Christians, whose citizenship is ultimately not of this world and whose identity and perspective must likewise be eternal and transcendent, should not let our viewpoints be determined by the tyranny of the short-term. If we continue the current course of American politics, the fiscal cliff will end up being nothing more than a bump in the road toward the cultural, economic and political bankrupting of America. But if we take this as an opportunity toreassess our values, both temporal and eternal, then the fiscal cliff is as good an occasion as any to seek deeper and more meaningful reform of ourselves, our families, our churches, our businesses and our governments.

This article originally appeared onThink Christian.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
The Imaginative Conservative reviews Samuel Gregg’s new book
It is a bright note of hope, set against the present daunting darkness, that shines throughout Samuel Gregg’s “Reason, Faith, and the Struggle for Western Civilization,” both illuminating the past and shedding much-needed light on the present situation, says Carl Olson, in his recent review for The Imaginative Conservative. Dr. Gregg, who has written widely on politics and culture while working as director of research at the Acton Institute, is careful to point out that not all of the West’s...
European Central Bank weakens financial sector and erodes cultural norms
Deutsche Bank, once one of the giants of European finance, is in deep financial trouble. Matt Egan of CNN Business helpfully summarizes the difficulties, Germany’s biggest lender israpidly slashing jobs,it’slosing a ton of moneyand the stock is trading near all-time lows. Many of Deutsche Bank’s problems are self-inflicted. It’s been badly mismanaged. Deutsche Bank (DB) never fully cleaned up its crisis-era balance sheet. Restructuring efforts fell short. And itscountless legal black eyeshaven’t helped matters. But Deutsche Bank’s struggles have also...
Prince Harry’s two-child policy?
Although the British monarchy lost most of its formal power, it still exercises a number of functions in society: symbol of unity and continuity, devoted servant, and good example. Prince Harry put this last activity in peril when he said he would have no more than two children. When Prince Harry mentioned having children in an interview with Jane Goodall in the ing issue of Vogue magazine, she jokingly scolded His Royal Highness, “Not too many!” “Two, maximum!” he replied....
Why cheap drugs from Canada won’t reduce U.S. Drug prices
If you suffer from acid reflux, your doctor may prescribe Nexium. But at $9 a pill, the price is enough to give you a worse case of heartburn. That’s the lowest price in the U.S. If you live in Canada, though, you can get the drug for less than a $1 a pill. This price disparity leads many politicians to think the solution is obvious: Americans should just buy drugs from Canada or other countries where they are cheaper. Its...
Joaquin Castro, doxxing, and the crisis of political idolatry
Representative Joaquin Castro, D-TX, opened a controversy this week when he tweeted a list of Republican donors who live in his El Paso congressional district. Politics aside, its most important es in revealing one of the greatest spiritualcrises currently gripping the West: political idolatry. On Monday, Rep. Castro tweeted: Sad to see so many San Antonians as 2019 maximum donors to Donald Trump — the owner of ⁦@BillMillerBarBQ⁩, owner of the ⁦@HistoricPearl, realtor Phyllis Browning, etc⁩. Their contributions are fueling...
Sphere sovereignty and limited (and legitimate) government
The Dutch theologian and statesman Abraham Kuyper is well-known for his articulation of sphere sovereignty, and the following passage from the third volume of his Common Grace trilogy is a clear and balanced summary of this doctrine, particularly as it relates to the limits of government action. In this chapter he is addressing the question of whether mon grace that impacts social life and society is exclusively mediated through government or not: There can therefore be no disputing the independent...
A healthy conservative nationalism? Not without classical liberalism
Given President Trump’s new wave of nationalism—economic, political, and otherwise—various factions of conservatism have been swimming in lengthy debates about the purpose of the nation-state and whether classical liberalism has any enduring value in our age of globalization. Unfortunately, those debates have been panied by increasing noise and violence from white nationalists, a dark and sinister movement hoping to exploit the moment for their own destructive ends. To fully confront and diffuse such evil, we’d do well to properly ground...
PowerBlog Redux: How the Byzantines saved Europe
A really interesting chat about the Roman Empire on this week’s podcast with Samuel Gregg and Larry Reed (register for Reed’s talk today here). Gregg helped expand the scope of the discussion by noting that the Roman Empire actually lasted for more than 1,000 years — in the East. In Constantinople, they understood themselves as Ρωμαίοι, Romans. Image: The Hagia Sophia; mons [Originally published August 2009] The Oxford Handbook of Byzantine Studies. Edited by Elizabeth Jeffreys, John Haldon, Robin Cormack....
Middle-class America’s debt problem
In recent months, the question of America’s ballooning public debt has started receiving more attention. Far less interest, by contrast, has been given to the growing amount of private debt. A recent Wall Street Journal article, however, highlighted a growing phenomenon that, I think, merits more attention. This concerns the use of debt by middle-class American families to maintain their lifestyle. Whether it is medical care, housing, or college education for their children, middle-class Americans are increasingly using debt to...
Freedom vs. the new freedom: Reflections on the early Drucker
Peter Drucker’s first book, The End of Economic Man (1939), attempted to explain the growing appeal of fascism and munism in the first half of the twentieth century. For example, he wrote: The old aims and plishments of democracy: protection of dissenting minorities, clarification of issues through free promise between equals, do not help in the new task of banishing the demons. …If we decide that we have to abolish or curtail economic freedom as potentially demon-provoking, the danger is...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved