We might cause higher unemployment when we take a lot of borrowed money out of the economy. I can almost guarantee that it WILL be financially negative for a whole lot of people.
But what are the consequences if we don't?
That scares me more.
My problem with the whole process is politicians generally can't see past the next election. Traditionally the Dems focus on cutting the military and the Pubs focus on cutting social services, almost always for political capital to use in their campaigns. Neither side seems willing to address the waste that occurs across the board in all areas of government. After the end of the "Cold War" both Bush I then Clinton started and accelerated the intel and military cuts that left us relying on our allies, a very short sighted approach that had dire and expensive consequences.
Yes, I agree that spending has to be curtailed but I know (been dealing with the government for decades) that if the true waste across the board is addressed the cuts could be just as great. Of course that will also create some short term economic/employment issues but it could strengthen all of the governments activities in everything they do in the long run. Don't think that will ever happen, partisan politics won't allow it.