Home
/
RELIGION & LIBERTY ONLINE
/
Commentary: Living in the Shadow of the Fiscal Cliff
Commentary: Living in the Shadow of the Fiscal Cliff
Jan 20, 2026 5:45 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
4 Reasons to Support School Choice from Pope Francis’s ‘Amoris Laetitia’
Pope Francis’s recently released apostolic exhortation Amoris Laetitiahas received considerable attention because of the issue of divorce munion. But the 60,000+ word document has much more to say about family life than the dissolution of marriage. For example, it provides pelling reasons for all Christians (not just Catholics) to support school choice. The term “school choice” refers to programs that give parents the power and opportunity to choose the schools their children attend, whether public, private, parochial, or homeschool. While...
Lex Luthor, Capitalist Villain
In an earlier post pared the political economy of superheroes in the DC and Marvel universes. And today I have a piece up at The Stream examining the figure of Lex Luthor, the crony capitalist villain featured in Batman v. Superman: Dawn of Justice. As I write in that piece, Luthor is certainly more than a crony capitalist, but he is not less than one, and it is this corruption of democratic capitalism that serves as a backdrop for his...
Audio: Samuel Gregg Revisits Regensburg
Samuel GreggOn Monday evening, Acton Institute Director of Research Samuel Gregg joined host Sheila Liaugminas on Relevant Radio’s A Closer Look to examine Pope Benedict XVI’s Regensburg address as we approach the tenth anniversary of its delivery. Greggemphasizes the fact that our understanding of who God is and what his nature is has important implications for how we understand human liberty and rationality, and argues that as western nations have gradually abandoned the Christian religious principles that formerly undergirded their...
North Koreans face new challenges after they defect
They faced potential starvation, imprisonment, torture, and made a dangerous journey to freedom only to discover new struggles that they never could prehended in their former lives. Stories and reports of North Koreans fleeing their country aren’t particularly unusual. There are dozens of books written by or about North Korean defectors. Last week, thirteen North Koreans who worked for a restaurant fled to South Korea. It’s also been recently reported that a high-ranking colonel from North Korean military’s General Reconnaissance...
Roundup: Samuel Gregg on Pope Francis and Overpopulation, Pope Leo XIII and Modernity, and Constitutional Conservatism
New articles from the indefatigable Samuel Gregg, research director of the Acton Insitute: Amoris Laetitia: Another Nail in the “Overpopulation” Coffin, The Catholic World Report Here the pope signals his awareness of the efforts of various organizations—the UN, the World Bank, the IMF, the EU, particular US administrations—to push anti-natalist policies upon developing nations. A Revolutionary Pope for Revolutionary Times, Crisis Magazine Between 1878 and 1903, Leo issued an astonishing 85 encyclicals. Many dealt squarely with the political, social, and...
Leftist Shareholders Attack Corporate Free Speech
On its website, Trinity Health trumpets its shareholder activism. Based in Livonia, Mich., the Catholic health care provider boasts operations in 21 states, which includes 90 hospitals and 120 long-term care facilities. For this last, Trinity should be lauded. For the first, however, your writer is left shaking his head. Among Trinity’s list of five shareholder advocacy priorities, two stand out: • uphold the dignity of the human person. • enable access to health care. In other words, issues any...
Tesla Motors Releases a Car for the Masses That Runs on Coal
Electric cars are not a new invention, nor are they as popular as they once were. (They debuted in 1890 and by 1900 electric cars accounted for around a third of all vehicles on the road.) But over the past decade, thanks to Elon Musk and Tesla Motors, electric cars have e much more interesting. Tesla rolled out the first fully electric sports car in 2008 and a fully electric luxury sedan in 2012. And earlier this month they unveiled...
Money and Moral Absolutes
In medieval Europe merchants would often writeDeus enim et proficuum (“For God and Profit”) in the upper corners of their accounting ledgersorA nome di Dio e guadangnio (“In the Name of God and Profit”) on partnership contracts. These words reflected their authors’ conviction that banking and finance were economically useful endeavors,saysSamuel Greggin this week’s Acton Commentary. Luis Molina and the many other Christians who explored these areas throughout history were not searching for greater marketplace effi­ciencies. Their concern was moral....
Rev. Sirico: Pope Francis’s Love Letter to the Family
“What the pope has brought forth is honest, timely and sensitive,” writes Rev. Robert A. Sirico, co-founder and president of the Acton Institute. “Amoris Laetitia explores plicated pastoral situations that any confessor will know all too well: challenges of how weak and fallen people can authentically live the faith.” In the Detroit News, Rev. Sirico discusses Pope Francis’s love letter to the family: The pope’s reflections are aimed at how to make a solid moral discernment in the midst of...
A Papal Revolution
This year marks the 125th anniversary of Pope Leo XIII’s encyclical Rerum Novarum and the beginning of the modern Catholic social encyclical tradition. In this landmark text, Leo courageously set out to examine the “new things” of his time, especially the changes associated with the Industrial Revolution. These included the emergence of an urbanized working class, the breakdown of old social hierarchies, and the rise of capitalism as well as ideologies such as socialism, munism, and corporatism. On April 20,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved