The Balanced Budget: An Economic Analysis
15 Pages Posted: 12 Jun 2011
Date Written: May 19, 2011
The public economic policy debate often touches on the issue of the federal budget deficit. Proposals for legal budget-balancing measures often make the stage. But the proponents often fail to account for the economic policy consequences of their proposals. A constitutional amendment to mandate a balanced budget could easily become a vehicle for tax increases, even if states, run by fiscal conservatives, are given a say in the federal budget process.
Keywords: balanced budget, fiscal policy, budget deficit
JEL Classification: E60, E61, E62
Suggested Citation: Suggested Citation