Tax cuts and the deficit: This doesn't make economic sense does it?

Congress passed a year-end tax cut deal that will give lots of folks, everyone nearly, a nice tax cut, but it will increase our federal deficit by 27 percent next year and 50 percent in 10 years.

Which leads me to ask: Does that make sense?

Yes and no. It makes sense because it's an attempt to stimulate consumer demand. If we have a few more bucks in our paycheck, we might go out to eat more, or just buy some more stuff. That's what Congress is hoping.

But what about the debt. Shouldn't we be paying that down? In our own minds we've got to say yes, for all the usual reasons: the Chinese will start to control our debt, and maybe us someday. The investors in U.S. stocks will see this craziness for what it is and your 401(k) will become a 201(k).

Seems risky at best.

But someone smarter than me about world markets and the economy once told me the markets never lie. So, if the stock market still seems to be doing well, and credit markets and other investments are also doing well after the news of debt expansion hits, then there maybe aren't a lot of people with lots of money too worried.

But of course, markets get new information and new feelings every day, so stay tuned.

But that's my 30 second analysis, always subject to change and sometimes even wildly off-base.

That's why we've given you a chance to weigh in on the subject and be a star of The Free Press opinion page. Go here to give us your two cents, or $850 billion worth.