This excerpt originally appeared in National Review Online on May 1, 2012.

I made the case last week that there are two types of austerity measures: The one that successfully reduces the debt-to-GDP ratio (a combination of spending cuts and structural reforms) and the one that fails to reduce debt (a combination of spending cuts and tax increases, also known as the balanced approach).

Sadly, even in a time of crisis (or especially in a time of crisis), lawmakers tend to make decisions for the sake of politics rather than good policy. Countries that are in fiscal trouble generally got there through years of catering to interest groups and pro-spending constituencies, and their fiscal adjustments tend to make too many of these same mistakes. As a result, failed fiscal consolidations are more the rule than the exception.