The states currently have a law in place requiring them to maintain a balanced budget. Do you believe this should be required of the federal government as well? Why, or why not? What might be the ramifications if this philosophy drove the federal budget?
ANSWER AND THEN REPLY TO MY CLASSMATES RESPONSE TO THE ABOVE QUESTION AND EXPLAIN WHY YOU AGREE? (A MINIMUM OF 125 WORDS EACH POST)
The Balanced Budget Requirements (BBR) are constitutional or statutory restrictions that forbid governments from spending more than they collect in revenue. They vary in stringency and design. Some exploration finds that stricter BBRs can produce tighter state fiscal effects, such as reduced spending and smaller shortages. However, they can also contribute to volatility and force states to cut services or raise taxes when their economies are already hurting. The effects of BBRs also depend critically on the details of the constitutions and enactment.
The federal government should also have laws that help maintain a balanced budget because, without a balanced budget, the federal deficit will continue to grow, weakening the US’s ability to borrow money and back their currency. More and more pressure will arise to cut social programs that make our country great Medicare and social security, two of our largest expenditures. Not balancing our budget will soon cause interest expense to exceed these programs. Also, balancing the budget is a must. Of course, the government should balance its budget. That is what responsible people do day in and day out. If you cannot balance the budget, you have no business being a leader. The budget is not balanced, or overspending occurs because the government chooses to enable the irresponsible while punishing the responsible.
The ramification of this philosophy is the crisis we carry with the heavy debt burden. The problem is that this has allowed for a very lax attitude, which is not sustainable in the long run. We now have a much larger than negligible debt, and many still believe this is acceptable. We have allowed ourselves to not deal with a major problem by denying that it exists. It is somewhat comparable to drug addiction in the sense that you can live in denial up to a point and say, “I’m still alive, so there must not be a problem.” But there does come the point when the problem finally overwhelms you, and then it can be too late or too painful to change.
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