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"They assume that they made it so bad that they wouldn't accept it, but I don't think they did," said Paul. "They're not even talking about real cuts. They're talking about cuts in baseline budgeting."

Right. The old baseline budgeting trick.

"The tax increases sound scarier. But we have a trillion dollar deficit!" Roberts pointed out. "So to me, the idea of raising taxes is probably a good idea. It says this spending that we've been doing is not a free lunch."

Cuts of $110 billion would even be good for us because it would keep money in private hands, away from the bloated and freedom killing bureaucracy.

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"If they propose, let's say, a $10 billion increase for next year and cut it down to $9 billion, they say they're cutting 10 percent. But they're not cutting anything, they're only increasing it $9 billion instead of $10 billion. It's done on purpose so that people get confused."

I'm not convinced that giving politicians more money is ever a good idea.

tax increases that make up four fifths of the fiscal cliff. We're told that if the Bush era tax rate cuts expire and the spending reductions kick in, catastrophe will follow.

But why? Trillion dollar deficits are more terrible.

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"They're not going to admit that we're bankrupt, and they won't admit that we're on the verge of a major, major change in our society," says Rep. Ron Paul, R Texas. "So they'll keep putting it aside, but then we'll eventually probably destroy the dollar."

"The Pentagon is hysterical about it," notes Ben Friedman of the Cato Institute. "But it's about 10 percent, which would bring us roughly back to where we were in defense spending in 2006 adjusted for inflation, not exactly a crisis year in the Pentagon. They've gotten very spoiled at the Pentagon. They had years of luxury."

The across the board cut, or "sequestration," was designed to be so distasteful that Congress would be moved to cut more deliberately. If it doesn't act, $110 billion in projected spending will be automatically cut New Balance Price half from domestic spending, half from the Pentagon.

"We need probably bigger cuts in the defense budget because we do too much. This will force us to make some choices. We try to be everything in the world pretending that every unstable country is a threat to us."

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And won't the wealthy high earners find a way around the higher rates? When rich people New Balance 610 Trail

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Republican House Speaker John Boehner calls the fiscal cliff a "nightmare."

Automatic cuts might even be good, said Friedman.

The other thing that scares Washington is the specter of automatic cuts to Pentagon spending. "These draconian cuts represent a threat to our national security," say Republican Sens. John McCain of Arizona and Lindsey Graham of South Carolina.

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I'm not losing sleep over this 'fiscal cliff' hysteria

do that, much of their money goes to lawyers instead of consumer satisfaction.

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Institution. "If they're actual cuts, I think that would be great. I'd cut 10, 20 percent across the board if I had my druthers. But across the board scares people because they think, 'Let's save the things that are really important and cut the things that are not so important.' That never works."

Lately the media are focused on the $400 billion in New Balance 311 On Feet

It doesn't work because every cent in the budget is absolutely crucial to someone.

"When government spending is about $3.8 trillion, you're going to cut $100 billion? That's a deck chair on the Titanic," said Russ Roberts of the Hoover New Balance 610v2

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