Problems with Paygo

It seems difficult to prevent a politician with a surplus to do anything but spend it. As a result of such spending, California is about to default on its debt. The few politicians who choose to cut taxes or repay government debt -- and thus create little new spending -- end-up being rather unpopular.

It would seem that capping government spending increases to long term GDP growth makes much more sense than just forcing the government to balance the budget each year.