An arbitrary formula of no durability has blinded the US government to more-solid steps it might take toward job-creating growth and fiscal health. Facing a cash-flow deficiency on Aug. 2, national leaders have linked action against the ballooning federal deficit to support for a higher debt ceiling. Democrats want to protect popular programs on which the government spends large sums and to increase revenue by selectively raising tax rates, including on oil and gas companies. Republicans want to cut spending and avoid tax increases. At the middle of last week, neither side seemed likely to yield.Because foundational beliefs about economics and governance collide here, compromise by either...