Balanced Budget Constitutional Amendment

Introduction

The main driving force behind the consideration for a balanced budget constitutional amendment is due to the increasing amounts of national deficit spending and the growing national debt. These issues have compelled the government to consider the amendment as an intervention that can lead to a smoothened economy, while assisting the government in covering its expenses. In lieu of accelerating deficits in the federal government, it is seen that the economy suffers a great deal; leading to structural flaws in the overall fiscal policy. This loss is suffered by future tax payers and the expenses are borne by people who are not responsible for it. These burdens create long lasting impact on the economy, and put the governmental policies and fiscal policies in great difficulty. The financial responsibilities of the present generation cannot be simply passed on to the future generations, simply due to the reasons of flexibility and enforcement. Even the Keynesian economical concept talks about a departure from moral constraints on the deficit spending incurred.

The main thesis of the essay is “Constitutional amendment in the form of a balanced budget may be the only solution to the national debt dilemma”.

Arguments in Favour of Issue

There is a range of interrelated debates over the issue, whether or not a constitutional amendment of a balanced budget is what the government needs to reduce or even eliminate the burdens of harm caused due to irregularly increasing fiscal deficits and other structural gaps between spending and earning patterns. In order to control governmental spending, the government is left with three choices:

To increase taxation rates in order to get more revenue from the public,

To cut extra expenditures in order to create a balance between the revenues obtained and expenses incurred, and

To transfer their own issue to the localized ...