It really comes down to this.

Seems simple.....
Do we cut our way out or spend our way out?

Confidence and growth is the key, so in a perfect world of congress getting something done, how do we get out of this mess?

Cutting won't get it done we need chopping and slashing to get it done.

It comes down to getting the economy engine revving again, not gonna happen with the current system, its broke. America does have an amazing ability to overcome all the BS the gov't throws at it though. I give us a 50/50 chance.

We need to use every tool in the shed. Cutting, raising revenue and controlling future greed. Nothing less will do. Only an idiot thinks half measures will be enough.

And He has already spoken.

Why just the two options? We can make cuts and increase revenue. If I am overspending, those are the two options I review.

The difference is that you have sole control over both your spending and your revenue levels and the government has control over only one - spending. The government can't force people to work more and produce more so that the increased tax rates produce more revenue. They have no control over how much of what you earn is spent by you. We do know that altering tax policy alters behavior and that projections of increased revenue rarely, if ever, come close to being accurate.

To quote an old maxim, the purpose of an economist is to make astrologers look good, which means projected growth/decline of the economy is equally inaccurate.

DC has control of exactly one thing - spending. They need to match, not exceed, the tax revenues on a consistent basis in order to bring the deficit and the debt under control.

Right. The Congress has no power to levy taxes. I forgot that.

levying taxes is one thing but if tax rates get too high, there is no incentive to earn more as more will be taken by the government. It's been showing that increasing tax rates often results in LESS revenue.

Actually, I think what it comes down to is that the only way to rev things up would be for more stimulus spending, but we can't afford it without bankrupting the treasury.

The result is going to be a very painful and likely permanent economic contraction.