Home
/
RELIGION & LIBERTY ONLINE
/
Commentary: Living in the Shadow of the Fiscal Cliff
Commentary: Living in the Shadow of the Fiscal Cliff
Jan 1, 2026 8:10 PM

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 greatest foe of poverty
Winston Churchill once said, “Some see private enterprise as a predatory target to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon.” Do young Americans, asks Chris Horst, believe entrepreneurship is a target, cow, or horse? My experience tells me we’re more apt to label entrepreneurship a cow or target. Indifference mon, as merce exists almost as a nonfactor for the poor. Scorn is the most-vocal...
What is moral hazard?
Note: This is post #66 in a weekly video series on basic microeconomics. Imagine you take your car in to the shop for routine service and the mechanic says you need a number of repairs. Do you really need them? The mechanic certainly knows more about car repair than you do, but it’s hard to tell whether he’s correct or even telling the truth. You certainly don’t want to pay for repairs you don’t need. Sometimes, when one party has...
The servant formula for succeeding in business
“Good leaders must first e good servants.” ― Robert K. Greenleaf “All I do is win win win no matter what” – DJ Khaled Does treating employees with respect and autonomy lead to greater profits? Maybe. Some are making a case that actively engaging in servant leadership leads to a pany culture and ultimately a more successful business. That’s how Publishing Concepts, Inc. (PCI) president Drew Clancy explains pany’s success. The philosophy of a serving leader is most strongly associated...
What the ‘Czech Trump’ means for Church property and immigration
In an election that CNN named “one to watch,” Czech voters re-elected a president Western media outlets have dubbed “the European Trump.” The vote could have ramifications for EU integration, Muslim migration to Europe, and the pilfered property of the Christian Church. Miloš Zeman edged out his more Eurocentric opponent, Jiří Drahoš, a political novice, on Saturday, by 51-49 percent. Zeman’s modestly skeptical view of the EU is underlined by his support for Russia and, to a lesser degree, China....
A real ‘fair trade’ solution: Fix U.S. agricultural policy
In our attempts to support struggling farmers across the developing world, Westerners have tended toward supporting a particular set of preferred “solutions,” whether purchasing “fair trade” products or donating funds to specific causes. Unfortunately, such efforts typically tinker on the surface, either outright ignoring the fundamental forces at play or contributing to a widespread distortion in prices. So how do we get at the root of the problem? How do we actually include our global partners in trade and exchange,...
Why is the State of the Union always ‘strong’?
I have a can’t miss prediction: tonight, when President Trump gives his first State of the Union address, he will describe the state of the union as “strong.” (I’ve made this prediction on this blog the past several years, so I’m hoping for a quadfecta of prescience tonight.) Admittedly, predicting that the state of our union will be described as “strong” is about as safe a bet as you can make when es to politics. Over the last hundred years...
Jennifer Roback Morse on the economic consequences of family breakdown
The 2018 Acton Lecture series got off to a great start yesterday with an address by Jennifer Roback Morse, a longtime friend and collaborator with the Acton Institute. She addressed how the breakdown of the family unit within culture generates significant problems, both socially and economically, and suggested some ways we can all work to address the issue going forward. We’re happy to share the video with you below; we also want to make sure you know about our Acton...
Preventing the next Carillion: Philip Booth
The UK has been transfixed by the collapse of Carillion, a pany which, at the time of its collapse, employed 43,000 employees (20,000 in the UK) and was contracted to carry out 450 projects for the UK government. pany branched out beyond construction and now provides food or maintenance for NHS hospitals, schools, and prisons on behalf of the government. The projects, livelihoods, and pensions of its workforce are threatened as Carillion faces liquidation. While the government refused a £300...
What if Davos Man got baptized?
The World Economic Forum is taking place this week in Davos, Switzerland. The meetings are dominated by a class of individual that the late Samuel Huntington named “Davos Man”: cosmopolitan, secular, and having self-consciously purged every hint of such parochial ties as tradition or particularity. Davos Man meets annually to frolic in Alpine splendor, and engage in supranational statism, with other Davos Men. “Imagine that instead of a global gathering of elites and celebrities, the World Economic Forum tried to...
Davos: Increase EU power, even if EU members disagree
The president of France said the Europe Union should press forward with concentrating power over political and economic issues in its own hands, even if its 27 member states dissent. Only a continent-wide supranational government would allow Europe to rival the United States and rising Asian economies, Emmanuel Macron told attendees of the World Economic Forum in Davos on Wednesday. Europe alone holds the proper “synthesis” of “values,” falling between America’s “strong preference for freedom” and China’s … different approach....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved