Just How Meaningful Is PAYGO?
June 24th, 2009 . by economistmomStan Collender argued earlier this week that the debate over statutory PAYGO is “totally theoretical, having little to do with reality, completely premature, and largely irrelevant.” He called it a “condiment” (and not the “main ingredient”) in the federal budget process. But with all the exemptions in the President’s proposal for statutory PAYGO, maybe it’s the equivalent of only a watered-down, store-brand ketchup–far from the “bite” of a wasabi mustard, if you know what I mean.
On Thursday we’ll get to ponder this question further, when the Obama Administration’s budget director, Peter Orszag, testifies before the House Budget Committee.
