If tax increases cannot restore fiscal balance, then the U.S. must slow the path of expenditure to
avoid fiscal Armageddon. Yet this approach also faces substantial opposition, for two reasons.
Many economists oppose expenditure cuts in the short to medium term based on the Keynesian
claim that expenditure boosts the economy. According to this view, it does not matter whether the
spending is productive, only that government spending offset the recession-induced decline in private
demand for the economy’s goods and services. The Keynesian perspective does not oppose spending cuts over the long haul but argues these must wait until the economy is at or near full employment.