Registered Data Controller No: Z1821391. by Tiffany Allen – Tuesday, August 5, 2014, 10:59 PM. And it could also result in a recession, which will lead to a depression. by Tracy Vaughn – Tuesday, August 5, 2014, 9:00 PM. However, I would automatically think that at first sight the best answer would be yes, the government should always have to keep their budget balanced because then they could keep track of spending more easily and to become more continence of what is actually being spent and what is available to spend. Those benefits have to be paid regardless of the budget availability. Bloomberg. Company Registration No: 4964706. This could cause a easy access to debt. After all isn’t that what government is for? It happens daily in society on a much lower scale. Should the government be required to balance the budget is a good proposition to consider. The American government is in debt no doubt and a balanced budget is not going to solve the problem any faster. Back to the question, it’s good to balance its’ budget but it shouldn’t required to “always”. Free resources to assist you with your university studies! The only way for the government to balance the budget is to increase taxes or and reduce spending. The most important piece, the balanced-budget amendment, should be a no-brainer. If the government increased the taxes, that would decrease income. 11th Oct 2017 The federal Conservative government said in its April budget that it would cut the tax rate on small business profits to 9%, matching a New Democratic policy. As the United States’ looming deficit continues to dominate the national discourse, many are calling for a Balanced Budget Amendment to be added to the Constitution. The United States has not balanced the federal budget since 2001, in fact the federal budget was only balanced for 1998, 1999, 2000, and 2001 since 1970! It is known that good credit can get you anything and I believe that it should apply to all parties. Requiring a super-majority to raise the debt … Several proposed amendments to the U.S. Constitution would require a balanced budget, but none have been passed. Threat of political extortion by a congressional minority. That's not always possible, like during a recession when we need spending to stimulate the economy, but right now the US is in an expansion and they should be trying to run a budget surplus by increasing taxes or cutting spending, or both. Every family has to balance its budget. In 1995, a proposed constitutional amendment that would require a balanced budget passed the U.S. House of Representatives by a wide margin, and failed in the U.S. Senate by only a single vote. How would forcing the federal government to stick to a balanced budget each fiscal year affect the US economy and the government’s ability to borrow? Should the Government Balance its Budget? would add a budget rule to the Constitution that would require federal spending not to exceed federal receipts A path to destruction. Despite its reliance on a number of very controversial spending cuts, the better government plan necessarily depends heavily on revenue increases to achieve balance in 2014. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Most creditors think that the government is highly likely to repay its creditors. I understand that if the government has to always balance its budget than lowering government spending will be expected. Most people in the United States are familiar with balancing a budget because they have had to perform that task once in their adult life and it was not easy. Just like an individual has to balance his or her money, the government has to allocate the money to different areas each year. It should not be treated as authoritative or accurate when considering investments or other financial products. Aug 1st, 2011: "Any federal balanced-budget amendment should allow the government to spend more than it collects in taxes during wars and recessions, with the understanding that it will spend less during peaceful times of plenty. 1. The consequences to anyone of those options are not favorable for the people and or businesses. We're here to answer any questions you have about our services. The debt will eventually catch up with the country and future generations will have to carry that burden. If you need assistance with writing your essay, our professional essay writing service is here to help! I have certain beliefs that say yes and others that say no. Overall, my opinion is that it is a must that the government balance its budget. Argumentative Essays for writing techniques and actionable ideas. In fact, less than a month before the US Senate passed its tax bill, the Wisconsin state senate passed a resolution that made Wisconsin the 28th state to call for a constitutional convention to create such an amendment. Reducing transfer payments can end up hurting the poor whom are the most vulnerable during a recession, but an excessive amount of debt causes the government to spend more on funds on the interest for that debt instead of financing public programs and services. 3. Cut the spending means people will get less benifit, there will be less federal employees to do work. Any information contained within this essay is intended for educational purposes only. I agree with your thoughts on the government balancing their budget. Why or why not? Sure. As a result, government interest rates remain relatively low. Yes, the government should have to balance its budget, because that is good, sound fiscal policy. For many decades, going back to the 1930s, various legislators have put forward proposals to require that the U.S. government balance its budget every year. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Now is the ti The government should be no different. by Barbara Harris – Tuesday, August 5, 2014, 6:57 PM. Balancing the government’s budget sounds logical, as a matter of fact, that is the task of most Americans. “The gov(ernment) is way down the path of disappearance of a market for its debt, with the highest peacetime deficit/GDP ever.”Response: Agree, William Nordhaus, Yale Net impact unclear.”Response: Uncertain. The government can generate more revenue via raising taxes or the government can reduce spending by ending subsidies, scaling back with Medicare and social security to balance its budget. For many decades, going back to the 1930s, proposals have been put forward to require that the U.S. government balance its budget every year. Should the government balance its budget? The market would not be right, and companies will not be able to run right. On the other hand, collecting more means more tax. Should the ECB prioritize jobs and the environment? If the government decreased its spending, that also decreases the poor income and consumer’s consumption indirectly. How should European policy makers respond to COVID-19. If not as you can see from other post it was call a disaster to the government and economy. I too had the same similar views as you did with regard to it being a good idea for the government to have to balance their budget. So, even though a deficit doesn’t necessarily hurt the economic power of the country, it would be best to balance the budget for long-term effects. “Requiring budget balance would upend current operating procedure, with effects too uncertain to predict reduced output variability.”Response: Disagree, Austan Goolsbee, Chicago Booth If the government does not balance its budget, money will not be distributed properly and the economy could crash. If the existing condition or the environment is not right it could do more harm to a bad situation than help. VAT Registration No: 842417633. Re: Discussion Topic 5: Should the government be required to always balance its budget? “Suppose the government spends and borrows less,” wrote Harvard’s Oliver Hart in his response. “Fiscal impact lowers interest rates, but turmoil impact would raise. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! I may have to approach this from a personal financial view. In other words, balancing the budget could result to wiser spending decisions. Just like how a family that borrows beyond its means will struggle a lot, so will government deficit spending cause much trouble in the long run and ultimately have the future generation pay for it. by Anand Viswanath – Thursday, July 31, 2014, 10:46 PM. It’s good to balance the budget but shouldn’t make it required as “always”. In fact, not only should a balanced budget be a high priority policy goal, it should be at the top of the list. Managing the budget assures the economic state of our country is intact and prevents a complete failure our government system. We started of this century with a surplus but over the last decade the deficits have gone up and continue to rise. Without a budget not only will the reputation of the US government will be affected, but jobs as well. by Laura Porter – Saturday, August 2, 2014, 4:45 PM. Yes, in the last seventy five years are so, in US we are used to see either a deficit or surplus governments, more so on the deficit side.But yet we did not just survive, but remained a power house of the world.But the borrowing has going up the roof and government deficit is increasing by seconds.Now that the other economies from BRIC nations are posing a threat,it might be a good idea to think about balancing the budget or getting closer to that in order to support our future generations to remain in same dominant state like us now. Working within a balanced monthly family budget has been my priority and personal preference, similarly I believe the government should keep a balanced budget as its top priority. 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