One way people misunderstand it is to assume the current amount of tax revenue, and say there's not enough money to pay for things.
That fits the 'Starve the Beast' strategy of parties who want to reduce taxes and government: Cut taxes, say there's not enough revenue, then cut spending to match.
Obviously there's enough money in the economy; Americans just need to decide to invest in these things. They seem to agree on military spending.
My impression is that the GOP in Congress does it reliably. When they have the White House, they do spend. When the Dems have the White House the Congressional GOP cries 'debt' and 'deficit'; raising taxes is never an option (and the Dems are such terrible negotiators that they concede that almost as their own starting position) and thus spending must be cut.
Look at the current spending law - part of the deal to raise the borrowing limit - which caps all spending. That's just one data point, though. I'd have to see the data to know. Certainly the GOP opposes all tax increases.
That fits the 'Starve the Beast' strategy of parties who want to reduce taxes and government: Cut taxes, say there's not enough revenue, then cut spending to match.
Obviously there's enough money in the economy; Americans just need to decide to invest in these things. They seem to agree on military spending.